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Adventz open to diluting upto 49% in UAE fertiliser project

KOLKATA: The Adventz Group-promoted Rs 4,500-crore integrated diammonium phosphate and complex fertiliser project at Ras Al Khaimah in the UAE is planning to offer up to 49 per cent stake in the project. 

"We are open to offering stake in the UAE expansion project. We expect to offer between 40 and 49 per cent stake. We will not go below the controlling stake of 51 per cent," 
Adventz group chairman Saroj Kumar Poddar told PTI. 

He said that placement could be made to a few foreign companies and sovereign funds. 

"The project will be executed in the debt-equity mix of 70:30," he added. 

The project is being executed by the group's agro company 
Zuari Agro Chemicals Ltd, Poddar said adding that the present currency volatility had no major impact on its implementation. 

Asked about the progress, Poddar said the financial closure will be within December and production commencement was expected in 2016-17. 

Quality rock phosphate for the UAE plant will be imported from Peru to get converted into DAP and complex fertilisers. 

The group in partnership with 
Mitsubishi Corporation of Japan and a Peruvian company has bought interest in a Peru- based rock phosphate company. 

The products of UAE will also be imported for fertiliser plants in India including for captive use and will serve the overseas markets. 

Poddar said that the bottomline of his Indian fertiliser companies would also get enhanced with the assured supply of crucial raw materials like phosphoric acid which is import dependent and global supply remains volatile. 

He also said that the UAE project could help a lot in the Vijay Mallya-promoted Mangalore Chemicals & Fertilisers profitability if the company comes in Zuari's management control. 

Currently, Deepak Fertiliser is also in 
the fray for MCF's management control.