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Future of the
Wider Scope
Market
The report contains analysis on
The report contains a section on
drivers, restraints of the market, and
future of the market, which aims
Porter’s five forces analysis, which
to give an idea on the fastest-
leads to an in-depth study of the
growing region, along with an
market under consideration.
industrial outlook.
To understand the growth trends of the market studied. Growth forecast is provided
Report Highlights
1. Introduction
4. Industry Analysis
1.1 Market Definition
4.1 Porter's Five Forces Analysis
1.2 Key Findings of the Study
4.1.1 Bargaining Power of Suppliers
2. Research Scope and Methodology
4.1.2 Bargaining Power of Buyers
2.1 Study Deliverables
4.1.3 Threat of New Entrants
2.2 Study Assumptions
4.1.4 Threat of Substitute Products and Services
2.3 Research Methodology
4.1.5 Degree of Competition
2.4 Research Phases
5. Market Segmentation
3. Market Dynamics
5.1 By Product
3.1 Drivers
5.1.1 Synthetic Fertilizers
3.1.1 Huge Government Subsidies
5.1.1.1 Nitrogenous
3.1.2 Increasing Investment in the Fertilizer Industry
5.1.1.1.1 Urea
3.1.3 Increasing Demand for Foodgrain Production
5.1.1.1.2 Calcium Ammonium Nitrate (CAN)
3.1.4 Increasing Demand for Organic Fertilizers
5.1.1.1.3 Ammonium Nitrate
3.2 Restraints
5.1.1.1.4 Ammonium Sulfate
3.2.1 Unavailability of Raw Materials and Volatile Prices
5.1.1.1.5 Ammonia
3.2.2 Environmental and Health Concerns toward Use of Chemical Fertilizers
5.1.1.1.6 Other Nitrogenous Fertilizers
3.2.3 Increasing Use of Drip Irrigation System
5.2.2 Non-crop-based
5.1.1.2 Phosphatic
5.2.2.1 Turf and Ornamental Grass
5.1.1.2.1 Mono-ammonium Phosphate (MAP)
5.2.2.2 Other Non-crop-based Applications
5.1.1.2.2 Di-ammonium Phosphate (DAP)
6. Competitive Landscape
5.1.1.2.3 Triple Superphosphate (TSP)
6.1 Most Adopted Strategies
5.1.1.2.4 Other Phosphatic Fertilizers
6.2 Most Active Companies
5.1.1.3 Potassic
6.3 Market Share Analysis
5.1.1.4 Other Synthetic Fertilizers
7. Company Profiles
5.1.2 Organic
7.1 Indian Farmers Fertilizer Cooperative Limited (IFFCO)
5.1.2.1 Organic Residues
7.2 National Fertilizers Limited
5.1.2.2 Bio-fertilizers
7.3 Madras Fertilizers Limited
5.2 By Application
7.4 Rashtriya Chemicals and Fertilizers Limited
5.2.1 Crop-based
7.5 Chambal Fertilizers and Chemicals Limited
5.2.1.1 Grains and Cereals
7.6 Gujarat Narmada Valley Fertilizers Company Ltd
5.2.1.2 Oil Seeds
7.7 Fertilizers and Chemicals Travancore (FACT) Ltd
5.2.1.3 Fruits and Vegetables
7.8 Gujarat State Fertilizers and Chemicals Ltd
9. Appendix
The International Fertilizer Association defines a fertilizer as “any solid, liquid, gaseous substance, containing one or more plant nutrient in known amount, that
is applied to soil, directly on plants or added aqueous solutions (as in fertigation), to maintain soil fertility, improve crop development, yield and/or crop quality”.
The corporations in the Indian fertilizer industry operate in B2B, as well as B2C business format.
To eliminate any “double-count” error in market estimations, bulk buyers procuring fertilizers for retail sale after value-addition through further
processing, are not considered as part of the fertilizer market.
The market studied is driven by increasing awareness among farming community, increasing demand for food grains, economic growth of the country,
and huge government subsidies among other factors.
Market analysis and forecast of the market studied, with an overview of the key market developments.
2014-2023 2017 18
MARKET SEGMENTATION
COMPETITIVE LANDSCAPE
• Company-related Queries
• Revalidation of Numbers through Primaries
• Market-related Queries
• Combination of Top-down and Bottom-up Approaches
• Company Financials
3.1 Drivers
3. MARKET DYNAMICS
3.2 Restraints
High
HUGE GOVERNMENT INCREASING INVESTMENT INCREASING DEMAND
SUBSIDIES IN THE FERTILIZER INCREASING DEMAND FOR ORGANIC
Market Drivers
INDUSTRY
PRODUCTION
SAMPLE SLIDE:
Low
Detailed analysis will
full report
Impact
INCREASING USE
UNAVAILABILITY OF RAW ENVIRONMENTAL AND
OF DRIP
MATERIALS AND VOLATILE HEALTH CONCERNS
IRRIGATION
High PRICES TOWARD USE OF
SYSTEM
CHEMICAL FERTILIZERS
SAMPLE SLIDE:
3.1.1 HUGE GOVERNMENT SUBSIDIES
Detailed analysis will be
provided in the full report
• In India, the fertilizer industry is highly regulated and monitored by the government of
India.
• Incremental use of fertilizers in synergy with high yield seeds proved to be of Table 3.1.1.1 : Fertilizer Market: Allocation of Subsidies, India,
tremendous contribution to the success of green revolution. However, the prices of 2016-2018
fertilizers kept increasing. Since, the government wanted to encourage the use of
mineral-based fertilizers; it started providing reimbursement to companies, to Fertilizers 2016-2017 2017-2018
compensate for high cost of production for the mineral-based fertilizers and selling it Reasons for
at low costs to the farmers. Increased Adoption
Urea 51,000 49,768
• According to the 2017-2018 budget, USD 945.1 million was allocated for the fertilizer
industry, to be given of as subsidies. The difference between the cost of production,
which is higher than the price at which the fertilizer is sold, is paid by the government Nutrient-based 19,000 20,232
in the form of subsidies.
• There are many government policies launched for providing subsidies to the farmers Total 70,000 70,000
and manufacturers of fertilizers, such as new urea policy, neem-coated urea, gas
Source: Government of India
pooling for fertilizer sector, direct transfer benefit in the fertilizer industry, and joint
ventures agreement in the fertilizer industry.
• Therefore, rise in the government subsidies is expected to drive the fertilizers
industry in India.
3.2 RESTRAINTS 3.2.2 Environmental and Health Concerns toward Use of Chemical Fertilizers
Fig 3.2.1.1 : Fertilizer Market: Prices of Natural Gas in USD/ MMBTU, India, Monthly 2017-2018
4
3.8
3.6
3.4
3.2
3
2.8
2.6
2.4
2.2
2
Apr, 2017 May,2017 Jun, 2017 Jul, 2017 Aug, 2017 Sep, 2017 Oct, 2017 Nov, 2017 Dec, 2017 Jan, 2018 Feb, 2018 Mar, 2018 Apr, 2018 May,2018 Jun, 2018
• Production cost is the major factor contributing to cost of fertilizer market, raw material amounts to major cost of the fertilizer production. Phosphatic fertilizers are
manufactured using phosphate rocks, which are majorly available in the United States, and these reserves are facing restrictions in the country.
• Owing to restrictions, the fertilizer production and export in the US market is undergoing turmoil, hence, they are unable to cater to the global demand for phosphatic
fertilizers, and thus, affecting the Indian fertilizer industry.
• India imports the raw materials needed for manufacturing of fertilizers. Prices of phosphoric acid, rock phosphates, and sulphur have increased by 26%, 2%, and
51%, respectively. Ammonia, which is one of the raw materials used for the manufacturing of urea, registered a drop in price by 11%.
• Natural gas is used as feedstock for the manufacturing of urea and accounts for 80% of the raw material cost. The Indian fertilizer industry is the leading consumer of
domestic natural gas. Additional requirement of natural gas is via imports of natural gas in the form of RLNG. Out of 31 urea plants in India, 28 are gas based. As per
the New Domestic Gas Policy, price of domestic natural gas is revised every six months. Prices of natural gas have risen on account of a sharp increase of crude oil
prices. As the price of fertilizer rises, farmers look at alternatives to provide nutrients for their high-yielding crops. This, in turn, reduces the demand for
fertilizers, restraining the fertilizer market.
Syndicated Sample India Fertilizer Market ( 2018-2023)
19
capital investment and high cost, coupled with stringent regulations and
long registration process. This makes the market difficult for investment
by any new player. .
Low Moderate
To increase the crop production, use of fertilizers cannot be avoided.
Compost, manures, and bio fertilizers are substitutes, as they are less
toxic for synthetic fertilizers. However, there is low awareness for these
products. Hence, the buyers do not have high bargaining power.
5.1 By Product
5. MARKET SEGMENTATION
5.2 By Application
Nitrogenous Currently, nitrogenous fertilizer constitutes the largest market share, and is expected to retain its
position till 2023, although the share might decrease due to high demand of organic fertilizers.
Phosphatic fertilizers production has risen on account of expansion of the domestic capacity and
easy availability of acid, which has partly substituted for imports.
Product In 2018, with 57 large-sized fertilizer plants manufacturing a wide variety of the nitrogenous, complex
and phosphatic fertilizers, the Indian fertilizer industry is the third-largest producer in the world. The
demand for organic fertilizers in India is expected to grow at 10-12%.
Residues
Organic
Fig 5.1.1.1.1 : Fertilizer Market: Revenue in USD billion, Urea, India, 2014-2023
• The market revenue for urea fertilizers was USD 12.9 billion in the year 2017. The market is projected to witness a CAGR of 3.2% during the forecast period.
• The total demand of urea fertilizers is expected to be 33,754 thousand metric ton in the year 2017.
• Domestic production of urea which occupies 60% of the total market studied, has decreased marginally and imports have increased, and therefore, the decline in
production in 2018 is compensated by increase in imports.
• Presently, India imports urea from Oman (42%), Iran ( 34%), and China ( 13%).
• In 2018, there were 31 urea units in the country catering to the country’s production of urea.
Syndicated Sample India Fertilizer Market ( 2018-2023)
25
5.2.1 Crop-based
5.2 BY APPLICATION 5.2.2 Non-crop-based
• Crop-based application of fertilizer accounts for the largest market share of the application type in the Indian market, witnessing a CAGR of xx% during the forecast
period.
• According to the International Fertilizer Association and International Plant Nutrition Institute, in India, rice occupies the largest share of 29%, for the use of
fertilizers, followed by wheat, with a share of 23%.
• The importance of fertilizers in yield improvement, which is essential for achieving increased agricultural production, further increases, because there is little scope
for bringing more area under cultivation, as well as majority of Indian soils are deficient in many macro and micro nutrients
5.2.1: Fertilizer Market : Revenue in USD billion, 5.2.2 : Fertilizer Market : Market Share,
20
18 17.28
Revenue in USD billion
16
14
SAMPLE SLIDE
12
10 Slides in final report
8 consists of all numbers and
6 4.30 detailed explanations
4
2
0
2014 2015 2016 2017 2018 (e) 2023 (f)
Year
Crop-based Non-crop-based
Crop-Based Non-Crop Based Source: Mordor Intelligence Analysis Source: Mordor Intelligence Analysis
1. INTRODUCTION
6. COMPETITIVE LANDSCAPE 6.2 Most Active Companies
Innovations
New product launches, partnerships, and acquisitions are
New
the major strategies adopted by the leading companies in Product
the fertilizers market. Launches New
Expansions
Developments
• Indian Farmers Fertilizer Cooperative Limited (IFFCO) is one of India's biggest cooperative society, wholly owned by
Indian cooperatives. The company started out with 57 cooperatives coming together, and today it is an amalgamation
of 36,000 Indian cooperatives, with business interests ranging from general insurance to rural telecom, but the
company’s core business is in manufacturing and selling fertilizers.
• The company’s product portfolio includes urea, NPK, NP, DAP, water soluble fertilizer, bio fertilizer, and zinc sulphate.
Founded in
The company also has joint ventures in other countries, like Dubai, Oman, Senegal, Jordan, and Canada. 1967
• The company distributes its products through a network of co-operative societies. Indian Farmers Fertilizer
Cooperative Limited is based in New Delhi, India. IFFCO Sadan, C-1, HQ
District Centre,
91 11 4259 2626
Note : A more comprehensive company profile will be provided in the detailed report.
Strengths
Weaknesses
• The company is one of the largest cooperatives in
India and has a strong hold over the Indian agriculture • The company is fully owned and operated by
segment and the farmers involved in it. cooperatives and does not exist as a single-
owner entity.
• The company has large production units with years of
expertise in fertilizer business, which makes it one of
the leading fertilizer companies in India.
Opportunities Threats
• The company has the opportunity to expand its
• The market studied is very volatile and the
fertilizer product portfolio, with the large pool of
company’s revenue are dependent on sales
customer feedbacks that they receive.
of its products, which might decrease under
• The company can expand the organic fertilizer
high prices.
market and increase its share in the Indian Note: A more comprehensive SWOT • The company faces tough competition with
fertilizer industry. analysis will be provided in the report. other Indian companies, like UPL and Tata
Chemicals.
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