Major Investment in Panagarh Plant
Matix Fertilizers and Chemicals, a leading urea producer in India, has revealed plans to invest ₹7,500 crore in a brownfield expansion at its existing plant in Panagarh Industrial Park, West Bengal. The expansion aims to double the company’s urea production capacity, further cementing its leadership in the fertilizer sector.
Consistent Operational Excellence
The company currently operates at a production capacity of 1.27 million tonnes per annum (MTPA) but has consistently exceeded this limit. In the last financial year, Matix achieved an impressive 118% capacity utilization, producing 1.5 million tonnes of urea. This year, the company continues to maintain high efficiency, operating at 112-113% utilization.
Revenue Growth and Funding Plan
Matix Fertilizers reported a revenue of ₹6,900 crore for FY24, marking a significant increase from ₹5,700 crore in FY23. The ₹7,500 crore expansion will be financed through a mix of debt and equity, showcasing the company’s robust financial strategy.
Plans and Timeline for Expansion
Nishant Kanodia, Chairman of Matix Fertilisers, shared insights into the expansion, stating, “We are aiming to double our capacity at the same site. Initial groundwork is complete, and we are awaiting approval from the Department of Fertilisers. Once approved, construction will begin immediately, with the plant expected to be operational within the next 30 months.”
Strengthening Market Leadership
Currently, Matix holds a 4.8% market share in India’s urea production, contributing to the nation’s annual output of 31.4 million tonnes. In eastern India, the company is a dominant player with a 20% market share.
A Strategic Move for Growth
This expansion will not only increase Matix Fertilisers’ production capacity but also enhance its market presence, reinforcing its status as a key player in India’s fertilizer industry.
