Liberty Phosphate Ltd.

Liberty Phosphate Ltd.TMBackgroundLiberty Phosphate Ltd. is the largest producer and supplier of SSP (Powder & Granulated) in India. It plans to boost its SSPproduction capacity from 5,62,000 MTPA to 924000 MTPA. Apart from SSP it also manufactures NPK Mix Fertilizers & MagnesiumSulphate. It also trades in some fertilizer raw materials & finished products like Rock Phosphate, DAP, Urea, Muriate of Potash (MOP),Triple Super Phosphate (TSP), Mono Ammonium Phosphate (MAP), Water soluble specialty fertilizers and sulphate of Potash.The Company has six manufacturing units situated at Udaipur & Kota in Rajasthan, Nandesari in Gujarat, Pali in Maharashtra,Nimrani in MP and Hospet in Karnataka. Multiple locations of plants allow Company to service demand speedily.Company is planning to set up 1,32,000 MTPA SSP plant at Rae Bareilly in the State of Uttar Pradesh, where Plant & Machineryis under erection, and commercial production is likely to commence sometime in FY ’13 to cater to the demand of North and East India.Company recently completed capacity expansion at its Nandesari unit from 1,00,000 MTPA to 1,98,000 MTPA. It has applied for capacityexpansion at Kota from 1,32,000 MTPA to 1,98,000 MTPA. It plans to expand capacity at Pali from 66,000 MTPA to 1,32,000 MTPA.The Company’s brand of Agri Inputs “DOUBLE HORSE” is well accepted in the market as premium quality product. It is inadvanced stage of talks with other manufacturers to roll out newer products so as to have a larger basket of offerings to its customers.LPL has one 100% subsidiary called Liberty Pesticides & Fertilizers Ltd. Subsidiary has very small operations with revenuesof ` 0.24 Crs. in FY ’12.The raw material required for manufacturing process of SSP are Rock Phosphate & Sulphuric Acid. Indigenous rock phosphateis available in plenty from Jhamarkotra mines, Udaipur. Sulphuric Acid is supplied by Hindustan Zinc Ltd. situated at Udaipur. Presentlythe company purchases about 10000 MT per month of Sulphuric Acid for its various units by way of Long Term Agreement withHindustan Zinc Ltd. It is also planning to enter in to an agreement for supply of Sulphuric Acid, for its new projects at fixed price for aminimum period of 3 years.The Company plans to set up more units in other States like Haryana, Central Madhya Pradesh and Andhra Pradesh andincrease its production capacity to One Million MTPA.Existing & Proposed Capacity (in MTPA)Plant LocationExistingCapaictyAdditionsTotal CapacityNandesari - Gujarat 100000 98000 198000Kota - Rajastan 132000 66000 198000Udaipur - Rajastan 264000 0 264000Pali - Maharashtra 66000 66000 132000Raie Bareilly - UP 0 132000 132000Total 562000 362000 924000Liberty Phosphate Ltd. is also available on www.balance-equity.co.in