Global Water Soluble Fertilizers Report 2016-17 A complete Data driven analysis report

To understand the Global water soluble fertilizers market demand, suppliers, Competitors

market share, Capacity, Production, Imported quantity, F.Y Sales Company wise, Region wise,

Statewise. Analysation of market potential in India.

Presented By

S. Kandha Hari Shankar

Deputy Manager – Port Operations & Documentation,

Southern Petrochemicals IndustriesCorporation Limited,

SPIC House (Corporate Office)

Chennai

1/9/2017

1

Global Water Soluble Fertilizers

Market Potential Report 2016-17

Executive Summary

Water soluble fertilizers are expected to witness significant demand over the next eight years as

they improve crop quality and increase crop production output significantly. In addition,

fertilizers protect the crops and plants from diseases and crop destroying insects including

caterpillars, grasshoppers, beetles and locusts. Increasing crop production in various countries

including China, India, the U.S., Indonesia, Brazil, Japan and Mexico on account of growing

population is one of the major drivers for the market growth.

Asia Pacific is expected to fuel demand for water soluble fertilizers over the next eight years on

account of growing population in countries including China, India, Pakistan and Bangladesh.

Furthermore, rapid economic growth, government support, advancements in fertilizer

manufacturing coupled with increasing inclination of population towards disease free and

healthy fruits & vegetables is anticipated to propel market demand.

This report studies Water Soluble Fertilizers in Global market, especially in North America,

Europe, China, Japan, Southeast Asia and India, focuses on top manufacturers in global market,

with production, price, revenue and market share for each manufacturer, covering

Coromandel International Limited

Yara International ASA

Agrium Inc.

Haifa Chemicals Limited

Israel Chemical Limited

The Mosaic Company

Compo GmbH & Co. KG

Hebei Monband Water Soluble Fertilizer

K+S AG

Sociedad Quimica Y Minera SA (SQM)

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Global Water Soluble Fertilizers Market Research Report 2016

Table of Contents

1. Global water Solublefertilizer Market Overview

2. Indian Fertilizers Market Overview

3. Segmentation of Water Soluble fertilizers Business

4. Market Volume Share

5. Product insights

6. Capacity/ Production/Consumption of Nitrogenous fertilizers

7. Capacity/ Production/Consumption of Phosphatic fertilizers

8. Micro – Nutrients Growth drivers & Industry dynamics

9. Nutrients consumption among the Asian countries

10. Global Nutrient consumption outlook

11. Pan – India consumption of Micro Nutrients

12. Introduction to CHELATION TECHNOLOGY

13. Corp Insights

14. Corp productivity comparison

15. India’s Water soluble fertilizers – Capacity/Production/Imports/ sales data

16. India’s Manufacture wise Water soluble fertilizers – Capacity/Production/Imports/ sales

17. Global N,P,K Fertilizers Market Analysis

18. Pan India company wise water soluble fertilizers present share of consumption

19. Pan India estimated water soluble fertilizers share of consumption for fy16-17

20. Water soluble fertilizers Application Movement Analysis

21. Regional Insights

22. State wise estimated consumption of water soluble fertilizers in India

23. Asia Pacific water soluble fertilizers market revenue by corp type

24. Risk & Challenges

25. Conclusion

Annexures

Global Water Soluble Fertilizers Manufacturers / Suppliers Details

Global Water Soluble Fertilizers recent Imports in India

3

Global Water Soluble Fertilizers Market Overview

The water-soluble fertilizers market is considered to be one of the most important

segments of agri-inputs, due to the expanding commercial cultivation of high value crops

to meet the rising demand for food.

Water-soluble fertilizers improve the returns on investment and also aid in meeting

farmers' as well as consumers' demands, from the economical and health perspective,

with increasing per hectare production of quality agricultural products.

The global water-soluble fertilizers market is estimated to be valued at USD 12.24

Billion in 2017 and projected to reach USD 17.06 Billion by 2022, at a CAGR of

5.69% from 2016. With the increase in demand for food security for the growing

population, along with the limited agricultural land available in the world, and rise in

crop loss due to nutrient deficiency, the use of water-soluble fertilizers is expected to

enhance the market growth.

The rise in urbanization, population growth, industrialization, and energy demand has

augmented the conversion of cropland to other industrial and domestic uses. According to

the Food and Agriculture Organization (FAO) of the United Nations (UN), developing

economies including India, and China requires an additional 120 million hectares of land

to fulfill the food needs of their consumers by 2030. Moreover, arable lands are also

getting wasted owing to deforestation and improper agricultural practices, which is

leading to a significant loss of production yield. Water-soluble fertilizers help farmers

maximize production in a sustainable manner and also accelerate the growth of crops and

maintain the overall health of the plants, which will impel this market’s growth in the

coming years.

Over the years, practices for soil fertility management have gained prominence mainly

because of loss of arable land and an upsurge in the demand for food. Soil fertility

management practices involve conservation tillage, rotation of the crop, and optimal

utilization of fertilizers and pesticides.

Farmers around the world are adopting soil management practices to improve the quality

and quantity of agricultural production. These methods involve the use of chemicals and

fertilizers for agricultural purposes. The increasing adoption of soil management

practices for maintaining soil sustenance will drive this market’s growth during the

forecast period.

4

Indian Agriculture Overview

India has 18% of world’s population but only 11% of its arable land per capita renewable

water resources are well below global average levels and there is heavy reliance on

monsoon.

Per hectare yield in India is amongst the lowest in the world, Compared to global average

of 4 tonnes / ha the yield in India stands at 3 tonnes / ha.

To meet incremental demand of food grains, higher use of agro inputs is critical to

enhance yields

Policies to encourage balanced nutrients, use of pesticides, seeds availability of water,

electricity,credit and minimum support price will play a critical role.

India’s calorie and protein consumption is set to increase going forwards at a steady pace

5

Water Soluble Fertilizers Segmentation

Water Soluble

Fertilizers

Nutrient Application Region Corp Type

Nitrogenous

Phosphatic

Potassium

Micro Nutrients

Secondary

Nutrients

Fertigation

&

Foliar

Field

Horticultural

Turf &

Ornamental

Plantation Corps

North

America

Europe

Asia Pacific

Latin

America

MEA

6

Global water soluble fertilizer market volume share,

by product, 2015-16 (%)

Nitrogeneous 64.24 % Micronutrients 1.56 %

Potassium 15 % Phosphatic 16.2 %

Secondary nutrients

3 %

Product Insights:

Nitrogenous was the prominent segment in 2015-16 and accounted for 64.24% of the

global volume share and is expected to witness growth on account of high application in

oilseeds and grains. The product provides better texture and color to plants and thus

increases the overall crop productivity.

Capacity, Production & Consumption of Nitrogenous during 2014-16

(Million Tonnes)

13.533 13.53312.435 12.467

17.024 17.02741

0

2

4

6

8

10

12

14

16

18

2015-16 2014-15

Capacity

Prodcution

Consumption

7

Capacity, Production & Consumption of Phosphatic during 2014-16

(Million Tonnes)

Potassium will witness substantial volume growth at a CAGR of 4.9% from 2016 to 2024

as it aids water retention, and protein synthesis to energize plants for healthy growth.

Moreover, these are highly soluble, non-toxic to roots and improve tolerance towards

frost, which will increase its consumption.

Micro nutrients growth drivers & Industry dynamics:

• Industry estimates the micro-nutrient market at INR 12bn or 0.4 mn tonnes p.a.

• For every 100 kg of major nutrients, 45 kg of micro nutrients ideal.

• Currently, this is just around 800gms in India, or 1/6th

of potential size

• Chelated micronutrients a profitable, but smaller market than major and hence less

presence of larger players.

• Changing Government Policies Moving away from subsidies would impact primary

fertilizer consumption.

0

1

2

3

4

5

6

7

2015-16 2014-15

6.836 6.75

4.11 3.964

6.0955.645

Capacity

Production

Consumption

8

• Nutrient Based Subsidy (NBS)- Subsidized fertilizers leading to underproductive fertility

practices and longer term issues of soil quality, hence move to NBS a good move. With

fixed subsidy, consumption of potash and phosphate has decreased.

• Focus on balanced use of fertilizers with focus on sustained soil quality

• Subsidized urea has led to its excessive usage, which has harmed current crop as well as

long term soil quality.

• Current fertilizers policy states promoting balanced nutrient application as an objective

• Direct Cash Transfer gives farmers the option to buy the right fertilizer –mix

• Relatively high crop prices and MSPs also support better purchasing power for the

farmers

• Increasing awareness-Efforts by industry players and government on providing soil-

testing facilities, knowledge on soil quality and crop care will have long-term bearing on

growth of micro nutrients fertilizers

• However, there are local players and imports which compete largely on pricing.

India’s Nutrient application rates will have to increase to improve productivity

9

Global Nutrient Consumption Outlook

All India Consumption of Micronutrients

(Tonnes)

Year Zinc

Sulphate

Ferrus

Sulphate

Copper

Sulphate

Manganese

Sulphate

Borax

Acid

Molybdenum

2004-05 118,080 9,356 873 7,964 10,019 -

2005-06 111,573 8,303 694 5,676 6,365 855

2006-07 85,283 5,015 379 3,277 2,968 -

2007-08 110,150 6,938 1,220 4,709 7,774 -

2008-09 103,820 6,122 1,357 2,088 11,535 64

2009-10 105,594 11,541 1,286 2,201 10,444 205

2010-11 151,162 20,254 1,388 3,942 17,466 215

2011-12 161,037 21,275 1,699 4,495 20,187 209

2012-13 160,324 22,781 1,686 5,248 17,626 107

2013-14 194,406 24,633 2,921 6,064 19,567 143

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CHELATION TECHNOLOGY:

• Nutrients can be applied to crops in inorganic form or chelate form

• 60% of inorganic compounds are wasted by leaching, fixation and due to its property of

reacting easily with air, water & soil.

• Chemically inert and soluble in water and easily absorbed by plants

• Increase the availability of nutrients by binding relatively insoluble iron, ensuring 100%

availability.

• Prevent nutrients from leaching

Consumption of Plant Nutrients per unit of gross cropped area

in 2015

57.631.4

12.8

0

Consumption

Nitrogeneous

Phosphatic

Potassic

11

Crop Type Insights

Field crops accounted for 64.9% of the overall volume share in 2015 as they are

cultivated on a large scale to meet food requirements.

Water soluble fertilizers are integrated with irrigation systems and are directed towards

the roots of plants to fulfill nutritional.

Rising demand for field crops including rice, cotton, wheat, oilseeds and other grains in

countries such as the U.S., China, India and Brazil on account of growing population is

expected to augment the industry demand over the upcoming years.

Key Industry Highlights :

Organic (Furits & Dairy products) market to grow at a CAGR OF 13-14% & 10-11 %

respectively from 2013 to 2018

Total Indian Bio input market estimated to reach US $ 37.0 billion by 2025

Approx 18 % of the crop yeild worth US $ 19.6 billion is lost due to pests every year in

India

2008 2013 2018

40

55

71

Consumption & Farmers Need

Consumption & Farmers Need

CAGR OF 6 %

12

Corp Productivity Comparision :

India - Water Soluble Fertilizers

Capacity,Production,Import&Sale(2006-2015)

Year Capacity

(‘000 tonnes)

Production

(‘000 tonnes)

Import

(‘000 tonnes)

Sale

(‘000 tonnes)

2006-07 3,133 1,594 18,213 16,423

2007-08 6,114 2,195 38,805 30,762

2008-09 6,997 4,902 18,662 30,060

2009-10 7,143 6,870 32,373 38,132

2010-11 27,835 14,650 48,302 54,271

2011-12 47,348 20,222 62,010 69,712

2012-13 66,285 27,481 71,961 90.827

2013-14 68,447 21.778 85.560 93,905

13

Manufacturer wise Capacity,Production, Imports

& Sale of Water Soluble Fertilizers-2014-15

S.

N

O

Company

Name

Product Grade Capacity

‘000

tonnes)

Production

(‘000

tonnes)

Imports

(‘000

tonnes)

Sale

(‘000

tonnes)

1 Coromandel

International

Ltd – Vizag &

Kakinada

NPK 19-19-

19,20-20-

20,13-40-

13

15,000 3,925 - 2,834

Other

NPK

4,500 1,729 - 1,372

2 Zuari Rotem

Speciality

Fertilizers ltd,

Baramati

NPK 19-19-19

13-40-13

20-20-20

12,000 2,513 - 202

3 Zuari Agro

Chemicals ltd

NPK &

Others

15.5-0-0-

18.8

13-0-45

0-52-34

12-61-0

0-0-50

- - 4765 4100

4 Everest

Fertilizers &

Chemicals Pvt

ltd, Rajkot

NPK 19-19-19 500 12 12

5 Gujarat State

Fertilizers &

Chemicals ltd

NPK &

Others

19-19-19

13-0-45

0-52-34

12-61-0-

0-0-50

3000 625 425 562

6 Indian Farmers

Fertilizers

Cooperative

ltd, Kandla

NPK &

Others

18-18-18

0-0-50

6000 3436 1993 3670

7 Mangalore

Chemicals &

Fertilizers Ltd

NPK &

Others

19-19-19

13-40-13

13-0-45

0-52-34

0-0-50

12-61-0

2947 2947 7082 9466

8 Rashtriya NPK 19-19-19 8000 3860 - 3307

14

Chemicals &

Fertilizers Ltd

12-61-0

13-0-45

0-0-5

9 Chambal

Fertilizers &

Chemicals ltd

NPK &

Others

19-19-19

13-0-45

0-52-34

12-61-0

0-0-50

15.5-0-0-

18.8

124 92

10 Chakradhar

Chemicals pvt

ltd

NPK &

Others

15.50-0-

18.8

0-52-34

12-61-0

1243 1056

11 Deepak

Fertilizers &

Petro

Chemicals

Corporation ltd

NPK &

Others

19-19-19

12-61-0

0-52-34

13-0-45

0-0-50

15.5-0-0-

18.8

13-40-13

17014 16033

12 Nagarjuna

Fertilizers &

Chemicals ltd

NPK &

Others

19-19-19

12-61-0

0-52-34

13-0-45

0-0-50

15.5-0-0-

18.8

13-40-13

15510 11240

13 Paradeep

Phosphates ltd

NPK &

Others

19-19-19

0-52-34

0-0-50

13-0-45

12-61-0

761 761

14 PR Agro Nutri

pvt ltd

NPK &

Others

19-19-19

12-61-0

0-52-34

13-0-45

0-0-50

15.5-0-0-

18.8

13-40-13

3128 2927

15 Shriram

Fertilizers

NPK &

Others

19-19-19

12-61-0

9368 9021

15

&Chemicals 0-52-34

13-0-45

0-0-50

15.5-0-0-

18.8

13-40-13

16 Tata

Chemicals ltd

NPK &

Others

19-19-19

12-61-0

0-52-34

13-0-45

0-0-50

15.5-0-0-

18.8

13-40-13

2947 2947

17 Solufeed Plant

Products &

Service pvt ltd

NPK &

Others

19-19-19

12-61-0

0-52-34

13-0-45

0-0-50

13-40-13

594 62

Global N,P,K Fertilizer Market 2016-17

16

Pan India Present Share of Important Grades of

Water Soluble Fertilizers in Total Consumption

17

Pan India Estimated Share of Important Grades

of Water Soluble Fertilizers in Total Consumption

Water Soluble Fertilizers Market

Application Movement Analysis

10.80% 3.10%

11.20%

11.50%

11.90%19.20%

26.90%

5.40%

Estimated share in India

MKP

Urea Phosphate

Potassium Nitrate

SOP

MAP

Calcium Nitrate

19-19-19

Other Grades

69.60%

98.50%

30.40%

60.20%

0.00% 50.00% 100.00% 150.00% 200.00%

2015

2024

Fertigation

Foilar

18

Foliar accounted for 30.4% of the overall volume and will show steady growth in light of

rising application in various fruits & vegetables including tomatoes, beans, and melons.

However, high cost as compared to fertigation will pose a challenge to its growth.

During 2015, the fertigation segment dominated the market and accounted for close to

69.60% of the market shares in terms of revenue.

Fertigation water and nutrients quickly enter the active zone of the root resulting in

superior absorption by crops

Regional Insights

Asia Pacific accounted for 22.6% of the overall revenue in 2015 and is projected to

increase demand for water soluble fertilizers over the next eight years on account of

growing agricultural output in countries including China, India, Pakistan, and

Bangladesh.

Development of medium to small scale market participants in the region coupled with

rapid economic growth and government support is expected to drive the market growth.

India :

The market of water soluble fertilizers in India stood at 110,000 mt in volume

terms, during 2014-15 and is projected to witness strong growth over the next five

years

The country’s Western region, comprising Maharashtra and Gujarat, holds largest

share in terms of WSF consumption as soil in this region contains high clay level,

which makes it difficult for cultivation

The market is largely organized with the presence of various established players

such as Zuari Agro, Deepak Fertilizers, Nagarjuna Fertilizers and Coromandel

International. Several other players such as Aries Agro, IFFCO and Gujarat State

Fertilizers and Chemicals are also seeking to establish their footprint in the market

and capitalize on growth opportunities available in the country.

China:

China leads in the production of rice followed by India and Indonesia.

China accounts for more than a quarter of global rice production.

Furthermore, production of fruits and plantation crops such as tea and coffee are

very popular in China.

Presence of the main fertilizer manufacturers including Sinofert Holdings

Limited, EuroChem, Bunge, and Agrium Inc. will increase industry expansion.

19

Europe:

Europe accounted for 37.6% of the overall revenue share in 2015

It expected to witness significant gains in light of rising food security concern owing

to growing population along with high export demand for food products including

wheat and cereals from Germany, France, Italy and UK. Moreover, the presence of

key participants including Yara International, Bunge Ltd., Agrium, Eurochem, Potash

Corp, and CF Industries will promote industry growth.

North America:

North America market has been pegged at $3,626.9m in the year 2015 growing at 5.5%

annually and is projected to reach $4,739.7m by the end of the year 2018.

Its constitute 31.7% of Global Water Soluble Fertilizers market and are poised to grow its

market share to 32.0% by the end of year 2018.

State Wise Estimated Consumption of Water Soluble

Fertilizers 2016-17

S.

No

State / Groups Consumption (Tonnes)

Fertigation Foliar Total

1 Maharashtra 32,000 9,000 41,000

2 Karnataka 14000 6000 20000

3 Andhra Pradesh 10000 5000 15000

4 Gujarat 6000 4000 10000

5 Rajasthan 1500 1500 3000

6 Madhya Pradesh & Chhattisgarh 4000 3000 7000

7 Uttar Pradesh & Uttarkhand 1000 6000 7000

8 Bihar/ Jharkhand & West Bengal 200 1300 1500

9 Punjab & Haryana 1500 4500 6000

10 Jammu & Kashmir 100 900 1000

11 North east 400 4100 4500

12 Tamil Nadu & Kerala 10000 4000 14000

Total 80,700 49,300 1,30,000

20

Asia Pacific water soluble fertilizer market revenue,

by crop type, 2013 - 2024 (USD Million)

Risk &Challenges:

Poor monsoon :

Stronger focus on developing cash crop markets and horticulture crops during Rabi, since

water availability is known before Rabi season

21

Power deficiency leading to unavailability and increased power cost :

Re-orienting our product and market mix towards states with surplus power

Imports is in forex :

Almost 67% of our Imports is in forex

Forex gain in the first six months of FY16 is INR 0.61Cr

Volatile Exchange Rate:

Un expected depreciation of Chinese Yuan renminbi 2016

Monetary tightening by US in 2016

Demonetization by Govt of India in 2016

22

Conclusion:

The Specialty fertilizers market are small but growing faster than the commodity

market

Irrigated area in India is has been steadily increasing

23

Cropping intensity has also steadily increased

Long term demand drivers remain strong in India

24

Agri GDP expected to grow in FY 16-17 & 17-18

Expected above normal Monsoons of 106 % to 109 % of LPA for FY 16-17 & 17-18

25

Global Water Soluble Fertilizers Manufacturers and

Suppliers Details

26

27

28

29

30

31

Latest Water Soluble Imports in India

32

33