Market Response

Eninrac was engaged by a global client for a deep dive market study to have a detailed understanding of entire fertilizer industry in India & the market scope of bio fertilizers. The understanding must be developed across the value chain ranging from input (feedstock suppliers to fertilizer producers/ processors to market intermediaries & finally the consumers). The entire value chain must be looked upon w.r.t. the key stakeholders present in feedstock supply, operations, retails & sales and must factor both domestic & foreign players.

Our aim is to deliver comprehensive insights that will aid our client's decision-making process and support their long-term goals in the waste management and facility management sectors, ensuring a successful and informed business journey.

What was the study about?

Deep dive upon India’s fertilizer & bio –fertilizer value chain & entire market spectrum

The client wants to understand first the key definitions of words that are regularly used in the fertilizer industry pertaining to both chemical & organic fertilizers such as PROM – “phosphate rich organic manure”, FOM – “fragmented organic manure” , LFOM – liquid fragmented organic manure. Additionally, client wants to have a detailed understanding of entire fertilizer industry in India. The understanding must be developed across the value chain ranging from input (feedstock suppliers to fertilizer producers/ processors to market intermediaries & finally the consumers). The entire value chain must be looked upon w.r.t. the key stakeholders present in feedstock supply, operations, retails & sales and must factor both domestic & foreign players. Further, the entire market size for the current fertilizer industry with its segment contributor viz. domestic production & imports with quantum of exports factored as well. The market further needs to be understood w.r.t end use applications and a comprehensive competitive landscape covering leading players like Yaara, NFL, RCFL, IFFCO, Coromandel International Ltd., FCTL, MFL, HFCL etc. The price points along with regional split of consumer preferences is also desired so that the decision making is seamless at client’s end. Future growth potential & outlook tracked till 2050 with parametric evaluation is also required to be estimated.

Focus areas of the study

Analyze the current state and future growth potential of fertilizer & bio-fertilizer industry

The client wants to have complete understanding of bio fertilizer market which shall involve entire value chain for the organic manure & cover the stakeholder’s point of view for feedstock supply operations, retail, sales (for both domestic & export market, if permissible).  Further, the entire market landscape of organic manures is w.r.t. their current market size as per end use & different regions. Also, the market trends for bio fertilizer uptake along with the key drivers such as crop cultivation pattern limited land area, enhanced productivity, lower soil impact etc. The prime objective of the client is to analyze the current and future growth potential (up to 2050) of the entire fertilizer industry in India including both types of chemical and organic (bio fertilizers)

Eninrac’s approach for the study

To cater to the client’s requirements, the study was broadly classified into two modules

Phase I Market Study of Value Chain

1.1  Studying the Feed Stock/ Input Supply

1.2  Studying the Production/Processing

1.3  Studying the Supply, Retail & Consumers.

Phase II Challenges, Support & Subsidies/ Incentives

2.1  Challenges that include -  political landscape, licenses & certification, obligation, credit issues

2.2  Studying the incentives & subsidies detailed analysis of schemes at central level & state level such as (PM PRANAM scheme/nutrient-based scheme applicable)

2.3  Studying the DBT scheme for the companies in fertilizer production/fertilizer subsidiary/ refinancing support

Phase III The gas network infrastructure expansion

Detailed activities & scope of work

• Mapping of availability of feedstock – at India and state level
• Region wise track of availability of feedstock
• Sources for feedstock –
 i. Domestic availability for rock phosphates, sulphur, ammonia, natural gas, naphtha, fuel oil & coal etc.
 ii. Level of Imports
• Tracking scenario-based outlook for availability of feedstock for fertilizer production
• Price points of feedstock options available – trends track and future map
• Challenges to availability of feedstock for Indian fertilizer industry and impact of changing price dynamics

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