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Who is our client

Zuari Agri Chemicals Limited (‘Zuari), incorporated in 1967, belongs to the Adventz Group. Zuari is one of the leading fertilizer conglomerates in India, engaged in the manufacturing and trading of fertilizers. The company produces high-quality complex fertilizers of various grades along with seeds, pesticides, micro nutrients, and specialty fertilizers. The manufacturing complex is located in Goa, India, and also houses a 7.5MW gas based power plant, supplying power to the ammonia and urea plant. The sales are made through a network of approx. 2,700 dealers and almost 100 retail stores. All products are sold and marketed under its brand name ‘Jai Kisaan’, which is the oldest and one of the most well-known brands in India. The Company is listed at the Mumbai Stock Exchange.

Funding objective

FMO is providing a EUR 22mln Foreign Currency Convertible Bond facility. Zuari will use these funds for their ongoing renovation and expansion program. The investments will further improve Zuari’s energy efficiency by more than 20% and will increase the production capacity for urea and ammonia. The revamp of the Goa facilities will prepare Zuari for the future, in line with the fertilizer strategy of the Indian Government, which is based on self-sufficiency and energy efficient production. Since Zuari is a listed company in India, our funding is subject to the approval from its shareholders.

Why we fund this project

India is the world’s second largest fertilizer consumer and third largest producer in the world. The supply of fertilizers in India is of utmost importance to improve yield per acreage so that increasing food demands can be met. Zuari works closely with farmers across states, educating them in the use of fertilizers and best farming practices. The company along with its associates has a network of over 6,000 dealers and sub-dealers nationwide with access to almost 25 million farmers. Zuari offers a one-stop-shop service that helps to ensure that Indian farmers grow high quality products through its retail chain under the Jai Kisaan brand name. By supporting the revamp of the Goa plant, we help to improve the competitiveness and resource efficiency of Zuari: higher output with less energy consumption. This will also enable the company to expand its geographical reach to new states, where it can further extend its Jai Kisaan retail network.

Environmental and social rationale

E+S risks are categorized as Category B+ while risks are largely limited to the premises of the factory and can be mitigated with good industry practice. Potential impacts must be managed in a manner consistent with the following Performance Standards: PS 1 Assessment and Management, PS 2 Labour and Working Conditions, PS 3 Resource Efficiency and Pollution Prevention and PS 4 Community Health, Safety and Security. The revamp will fully take place on the existing industrial site. There are no biodiversity conservation sites or nature reserves (PS6) on site or in the sphere of influence of the factory, nor Indigenous People (PS7) or Cultural Heritage (PS8). Based on this Performance Standards 5, 6, 7 and 8 are not applicable. If FMO’s investment proceeds, FMO will periodically review the project’s compliance with the Performance Standards and adequate mitigation measures will be agreed.

Agribusiness, Food & Water
Signing date
Total FMO financing
EUR 22.00 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)