Amid West Asia war disruption, Israeli firm sets up fertilizer manufacturing unit in India
&imwidth=600&imheight=450&format=webp&quality=medium "Amid West Asia war disruption, Israeli firm sets up fertilizer manufacturing unit in India")
Amid West Asia war disruption, Israeli firm sets up fertilizer manufacturing unit in India Photograph: (ICL group)
As per the firm, their specialty fertilizer production facility is launched in Maharashtra at a time, as the world faces fertilizer supply disruptions due to the ongoing geopolitical instability in West Asia and the resultant closure of the Strait of Hormuz, a key global shipping corridor
As the war in West Asia rages on for more than three weeks, Israeli firm ICL group (formerly a government firm known as Israel Chemicals Ltd) has announced the opening of a production facility in India that will churn out Water-Soluble Fertilizers (WSF). While India produces large quantities of Nitrogen-based fertilizers (urea), the country imports about 90% of its Water-Soluble Fertilizer needs, as per estimates. WSFs are specialized fertilizers that dissolve completely in water and are applied through irrigation systems or as sprays on leaves, as opposed to conventional fertilizers that are applied on soil.
According to the firm, their specialty fertilizer production facility is launched in Maharashtra at a critical time, as the world faces fertilizer supply disruptions due to the ongoing geopolitical instability in West Asia and the resultant closure of the Strait of Hormuz, a key global shipping corridor. Estimates say that a significant quantity of global fertilizer and fertilizer raw material volumes pass through the strait of Hormuz.
Agriculture is among the diverse list of domains that the Indian and Israeli Governments have been closely cooperating on. This new factory supports the Government of India’s Make-in-India initiative, ICL group said. The manufacturing facility spanning across seven acres (28,000 square meters) will replicate ICL’s advanced production model currently operating in Israel, and will roll out the same high-quality, water-soluble Nitrogen Phosphorous Potassium(NPK) fertilizer products currently exported from their home country.
According to ICL, Maharashtra represents the largest market for water-soluble fertilizers in India, making it a natural choice for establishing the manufacturing unit. Further, the location also offers strategic advantages in terms of connectivity and access to key agricultural regions, the company added.
"While initial production will scale progressively, we are targeting a capacity of approximately 30,000 tons over the coming years. Our primary focus is serving the rapidly growing agricultural market in India, which remains a key strategic priority for us. At the same time, we are well positioned to leverage export opportunities, particularly for any surplus capacity, allowing us to optimize utilization while expanding our presence in select international markets," Nir Ilani, President of the Growing Solutions Division of ICL told WION.
While Ilani did not specify the quantum of investment into the Indian facility, he said that their firm made a "strategic investment with a clear view toward long-term growth". "With geopolitical tensions disrupting global trade routes and delaying fertilizer shipments through a key corridor such as the Strait of Hormuz, building local production capacity is essential. This facility enhances India’s supply resilience and ensures farmers have consistent access to high-quality solutions," he added.
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