Agro Phos (India) Limited is a fertilizer manufacturer that turns imported rock and locally sourced chemicals into the specific nutrition Indian farms need, operating from two plants in Madhya Pradesh. Founded in 2002, the company built its business around Single Super Phosphate (SSP) and has since expanded into blended fertilizers, micronutrients, organic manure, and trading, all sold through a network of over 200 dealers and distributors. The recurring approach is simple: make a core phosphate product, then use the same manufacturing backbone and distribution relationships to offer farmers a fuller basket of soil- and crop-specific solutions. # Business segments Two engines, one manufacturing backbone - a phosphate fertilizer core that supplies government buyers and large marketing partners, and a trading desk that fills the rest of the farmer’s shopping list. ## 1. Fertilizer manufacturing: the phosphate core that everything else feeds **The company makes SSP in powder and granule form, then layers on variants, blended NPK, micronutrients, and organic products - all from the same two-plant infrastructure.** - **SSP is the anchor product** - manufactured in all variants including Powdered, Granulated, Boronated (with Boron), and Zincated (with Zinc), with a combined Zinc-and-Boron variant also produced, giving farmers a single product that delivers both phosphate and micronutrients. - **Imported rock, local acid** - the two primary raw materials are Rock Phosphate, historically imported from Egypt, Iran, Jordan, Morocco, Syria, Togo, and Tunisia, and Sulphuric acid, purchased from local vendors, so the company blends global sourcing with domestic supply chains. - **Two plants, one process** - the Dewas plant (45,000 MT per year capacity) and the larger Meghnagar plant (115,000 MT per year, inaugurated in 2014) both grind rock phosphate, mix it with sulphuric acid and water, then cure, dry, and screen the output; granulated SSP adds a heated drying drum at roughly 1,000 degrees Celsius and a cooling drum to extract moisture before final sizing. - **Sold through big-name partners, not just dealers** - the company has signed MOUs to supply SSP to Hindustan Urvarak & Rasayan Limited (125,350 MT for FY 2025-26 across five states), Matix Fertilizer & Chemicals Limited (35,000 tons across Uttar Pradesh, Bihar, and West Bengal), and Rashtriya Chemicals and Fertilizers Limited, which markets and distributes the company’s SSP through its own dealer network in Maharashtra and Uttar Pradesh on a principal-to-principal basis. - **Subsidy is a sales-linked receipt, not a grant** - the company recognizes its SSP subsidy only when control of the goods transfers to the buyer, and under the Direct Benefit Transfer system, 100% subsidy on various fertilizer grades is released to companies based on actual sales made by retailers to farmers through Point of Sale devices. - **NPK, Zinc Sulphate, and organic products fill out the catalogue** - the company manufactures NPK mixed fertilizer of varied chemical compositions, Zinc Sulphate (21% heptahydrate) for treating zinc-deficient soils, Phosphate Rich Organic Manure (PROM) sold under the ‘Krishi Samridhi’ brand, Organic Manure blended from Karanja DOC and Mahua DOC inputs, and a soil conditioner (gypsum) with a notified composition of 20% Calcium Sulphate, 10% Magnesium Sulphate, and 10% Sulphur. ## 2. Fertilizer and agri-product trading: filling the gaps in the farmer’s basket **When the company doesn’t make a product, it buys and resells it - DAP, Urea, Ammonium Sulphate, and even animal feed - so its dealer network can offer a complete range.** - **Bought to meet demand the plants cannot cover** - the company trades in Diammonium Phosphate (DAP), Urea, Ammonium Sulphate, and other fertilizers, sourcing products it does not manufacture so that its distribution channel remains a one-stop shop for farmers. - **Agri-products extend the relationship** - since FY20, the trading desk has also handled agricultural produce and animal feeds, meaning the same dealer relationship can serve a broader set of farm needs beyond crop nutrition. - **Meaningful volumes move through this desk** - in FY23, the total quantity of traded products, covering both fertilizers and agri-products, was 27,344 MT, showing that trading is a material complement to in-house production rather than a minor sideline. # Manufacturing backbone and quality infrastructure **Every product, whether manufactured or traded, passes through an in-house NABL-accredited laboratory - and the plants are built to run without interruption.** - **Lab-tested at every step** - the company operates an in-house testing laboratory accredited by NABL (National Accreditation Board for Testing and Calibration Laboratories) and has imported a testing machine for real-time analysis, so every batch is checked against its required chemical composition before packing. - **Integrated from raw material to packed bag** - the manufacturing process runs end-to-end from raw material procurement through final testing and packing into HDPE bags (for SSP) or gazette bags (for NPK), with cranes, conveyor belts, and handling equipment facilitating smooth logistics at both plant sites. - **Energy and regulatory discipline** - an energy conservation cell monitors consumption and has installed energy-efficient machines and electronic equipment, while operations comply with the Fertilizer Control Order 1985 and The Explosive Act, 1884; the products are classified as essential commodities, which allowed continued production during COVID-19 lockdowns. - **Currency risk is not hedged** - because Rock Phosphate is imported, the company uses foreign currency forward exchange contracts to hedge its exposure on firm commitments and highly probable forecasted transactions, but the notional amount of outstanding forward contracts is Nil and foreign currency exposure remains unhedged. # Group structure and partners **The company operates within a small ecosystem of related fertilizer entities - an associate manufacturer, a promoter-group rock-phosphate beneficiator, and bank lenders - that supply raw materials and trading counterparties.** - **Shri Tulsi Phosphate Limited was an associate until late 2025** - Agro Phos held 27.49% of this Chhattisgarh-based fertilizer manufacturer and trader as of FY25, having built the stake through two rights issues in late 2023; it sold a portion to a promoter in December 2025, reducing its holding below the 20% associate threshold, though the two companies continue to buy and sell fertilizers with each other. - **AP India Biotech Private Limited supplies beneficiated rock phosphate** - this promoter-group company, in which Agro Phos acquired an 11.95% stake in October 2023, operates a single-product plant in Meghnagar that takes low-grade rock phosphate from mines and upgrades it into Beneficiated Rock Phosphate (BRP), which Agro Phos then purchases as a raw material. - **A planned acquisition was walked back** - the company signed a Business Acquisition Agreement with Bharat Phosphate in July 2025 intending to make it a wholly-owned subsidiary, but the target communicated its inability to proceed and the acquisition was withdrawn in May 2026, with any inter-corporate advance fully recovered. - **Bank funding is secured against current assets** - the company’s borrowings come from Axis Bank Ltd. and Canara Bank, backed by security over current assets.