DOHA: Qatar Fertiliser Company (Qafco) has signed the first long term agreement for urea to the Indian market with Coromandel International Limited, the largest phosphatic fertiliser manufacturer in the private sector in India.
The agreement was signed recently in Hyderabad by Khalifa Abdullah Al Sowaidi, Qafco CEO, and Kapil Mehan, Managing Director of Coromandel, in the presence of A Vellayan, Chairman Muruggapa Group, Ali Ahmed Al Sanadi, Ammonia Sales Manager at Qafco and Yousef Al Khaldi, Urea Sales Manager at Qafco.
Speaking on the occasion, Al Sowaidi said that this agreement is a milestone since Qafco has become the first company to have direct contract with Indian end user, Coromandel, who have been given permission of direct urea import.
He expressed optimism that future policy of decanalisation will allow more private Indian companies to import directly.
Al Sowaidi outlined Qafco's strategy toward the Indian market, emphasising that the Indian market is one of the most important and strategic markets for Qafco's products. Currently, Qafco supplies over 50 percent of its ammonia to Indian customers through long-term off-take agreements.
He added that Qafco aims to substantially increase its share of the urea market in India. "This will be in line with Qafco's current and future expansion of Ammonia and urea facilities," Al Sowaidi said. "This contract is a step forward in Qafco's marketing strategy as Qafco soon will be the largest producer of ammonia and urea on completion of Qafco-5 this year and Qafco-6 by next year," he said.
© The Peninsula 2011
