Mumbai: Aditya Birla Nuvo Ltd said Wednesday that its board had approved the expansion of urea capacity at its Jagdishpur, Uttar Pradesh, fertilizer plant involving capital expenditure of Rs4,000 crore.
The expansion by 3,850 tonnes per day is subject to approvals, it said in a BSE filing.
According to a corporate presentation on its website, India meets 24% of urea demand through imports.
The Indo Gulf Fertilisers unit has a 10-20% market share in the target markets of Uttar Pradesh, Bihar, Jharkhand and West Bengal.
Aditya Birla Nuvo is a $4.5 billion conglomerate by revenue and is part of Aditya Birla Group, a $40 billion Indian multinational. According to Mint research, as of the last financial year, Aditya Birla Nuvo’s cash and bank balance was at Rs1,415.91 crore.
Aditya Birla Nuvo’s 2011-12 annual report said its Indo-Gulf unit is working towards removing bottlenecks and revamping its existing plant for reducing energy consumption and enhancing productivity. Indo-Gulf has received clearance from the ministry of environment and forests for the expansion and it now awaits policy clarity on the allocation and pricing of the natural gas, the annual report said.