The GCC countries, instead of expanding capacity in their soil, should invest in JVs in India, says Dr. M.P. Sukumaran Nair, director of Centre for Green Technology and Management, India.
India is one of the fastest growing markets for fertilisers and we will soon be Ma’aden’s major customer, he says. (Ma’aden is Saudi Arabia’s diversified mining and minerals company).
We already import a large amount of Urea from Qatar’s Qafco and have a joint-venture in Oman. But today, we want the Gulf producers to put up facilities in India.
“Instead of shipping the products… ship the raw materials and use the facilities and manpower in India,” he says.
There are several closed down fertiliser plants in India, which can be revived. Also, if the plants are located in India through JVs, the countries do not have to worry about marketing the finished goods, as there will be a ready market, literally at the doorstep, says Nair.
The plants will offer excellent return of investments, plus the GCC producers do not have to concentrate all of their plants in one place, he adds.
Nair was visiting Dubai for GPCA’s fertilisers’ conference.
