Chem / Fertilisers
Fertiliser companies may get relief as subsidy inversion issue lingers
In light of ongoing challenges within the fertiliser sector, the government is actively pursuing strategies to assist companies struggling with working capital. The root of the issue lies in the impact of subsidies on price structures, which inhibits firms from fully claiming input tax credits on their sales.
Dorf Ketal taps global investors for $1.6 billion to fund Italmatch deal
Mumbai-based Dorf Ketal is in discussions to secure $1.6 bn for acquiring Italmatch Chemicals SpA. The funding will come from private credit, NCDs, and non-recourse financing. Morgan Stanley is expected to lead parts of the fundraising. This acquisition marks a significant expansion for Dorf Ketal into adjacent businesses. The deal is currently in the structuring phase.
Pidilite bets on rising income, growth, urbanisation wave
Pidilite Industries anticipates increased consumer spending on home improvement, driven by rising household incomes and reduced GST rates. The company expects to benefit from government initiatives like affordable housing and smart cities, fueling construction activities. Pidilite is focusing on expanding its presence in rural markets within the paints sector, leveraging its distribution network to generate demand.
Gujarat Narmada Valley Fertilizers & Chemicals shuts Dahej TDI-II plant after leakage
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) temporarily shut down its TDI-II plant in Dahej on September 19, 2025, following a sudden leakage. The company executed safe shutdown procedures, ensuring no casualties, property damage, or gas release beyond the plant's boundaries.
Dorf Ketal finds a match in Italmatch, eyes $1.6 bn buyout from Bain Capital
Dorf Ketal, a Mumbai-based specialty chemicals manufacturer, is in advanced talks to acquire Italmatch Chemicals SpA for $1.6 billion from Bain Capital. This acquisition aims to diversify Dorf Ketal's portfolio into water treatment, lubricants, and flame retardants. The deal, expected to finalize soon, marks a significant consolidation trend in the specialty chemicals industry.
Hindustan Zinc's fertiliser plant in Rajasthan likely to be operational by December 2026: CEO Arun Misra
The plant would help in supporting farmers' needs through the production and sale of DAP fertilizer, currently being imported.
Fertiliser business faces ITC pile-up despite revision
Fertiliser companies face a GST input tax credit accumulation issue. This is due to the subsidy-related price inversion. The output value is lower than the input value. Federation of Indian Chambers of Commerce & Industry has requested Nirmala Sitharaman for clarification on refund eligibility. Companies warn of working capital pressures.
PCBL Chemical eyes Rs 16,000cr revenue, five-fold PAT growth by 2030
PCBL Chemical Ltd, India's leading carbon black producer, aims to boost capacity by 50% across its product range in the next five years, targeting a five-fold profit increase. The company plans expansions in Tamil Nadu and Andhra Pradesh, focusing on battery chemicals and speciality black capacity. PCBL is also investing in next-generation chemistries and sustainability initiatives to drive long-term value.
GST rate cut on raw materials offers lifeline to struggling fertilizer manufacturers
The reduction in GST rates on key fertilizer raw materials like sulphuric acid and ammonia to 5% has relieved the industry, according to SFIA. This move addresses a long-standing tax disparity where inputs were taxed at 18% while finished fertilizers were at 5%, easing liquidity pressures and benefiting MSMEs.
India has a big import substitution opportunity in chemicals sector: SRF
India's burgeoning economy presents a significant $25-30 billion import substitution opportunity in the chemicals sector, according to SRF's chairman, Ashish Bharat Ram. As India's economy expands, local capacity building for chemicals previously imported becomes viable.
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Lubrizol names Abhishek Shrivastava Managing Director for India, Middle East, and Africa
Lubrizol Corporation has appointed Abhishek Shrivastava as Managing Director for India, Middle East, and Africa (IMEA). Shrivastava will spearhead the company's regional growth strategy, enhance local manufacturing, and foster stronger customer relationships. With extensive experience in innovation and business transformation, he aims to drive localised innovation and impactful partnerships across the dynamic IMEA region.
Fertilizer industry faces compliance challenge as biostimulant regulations kick in
New regulations are impacting India's specialty fertilizer industry. Biostimulants now fall under government control. Small manufacturers may struggle with compliance costs. The Soluble Fertilizer Industry Association highlights implementation challenges. Thousands of biostimulant products await approval. Despite hurdles, the market shows growth.
India's first indigenous water-soluble fertiliser technology to cut Chinese import dependence
India has achieved a significant breakthrough in fertilizer technology, developing its first indigenous water-soluble fertilizer production process after seven years of research. This "Make in India" initiative, supported by the Ministry of Mines, aims to reduce the country's heavy reliance on Chinese imports.
FAI seeks cut in GST rates for fertiliser raw materials, refund of accumulated input tax credit
The Fertiliser Association of India (FAI) has urged the government to reduce GST rates on key raw materials like ammonia and sulphuric acid from 18% to 5%. Citing a meeting with Finance Minister Nirmala Sitharaman, FAI also requested a refund of accumulated input tax credit for manufacturers due to the non-taxable subsidy component.
Foseco agrees to buy 75% stake in Morganite Crucible
Foseco will acquire a 75% stake in Morganite Crucible India Limited for Rs 653 crore. The deal involves a stock swap, with Morganite's promoters receiving Foseco shares. This acquisition will trigger an open offer for public shareholders. The move aligns with Vesuvius Group's broader strategy to expand into the non-ferrous market and strengthen its presence in India.
Paradeep Phosphates targets Rs 1,500 crore expansion to double market share by FY26
Paradeep Phosphates Limited will invest over fifteen hundred crore rupees to expand capacity. The company targets three million tonnes in sales by fiscal year twenty twenty-six. They aim to double market share in India's phosphatic fertiliser sector. This expansion includes amalgamating Mangalore Chemicals and Fertilizers Limited. PPL will increase granulation and phosphoric acid manufacturing capacity.
