The Hindu Business Line : Archean group picks up stake in Senegal phosphoric acid co

Chennai, June 10 The Chennai-based Archean group, which has interests in ores and minerals, shipping and industrial chemicals, is all set to own a part of Industries Chimiques de Senegal (ICS), a company based in Senegal that produces phosphoric acid. Sources in the Archean group confirmed the deal but refused to divulge details.

In December 2007, the Indian fertilisers major IFFCO, which already had a 19.1 per cent stake in ICS, agreed to invest $100 million to revive the 660,000-tonnes-a-year phosphoric acid plant of the company.

The Managing Director of IFFCO, Dr U.S. Awasthi, told Business Line today that the $100 million would come from IFFCO and the Archean group.

Dr Awasthi refused to disclose how much stake of ICS would IFFCO and the Archean group individually own, but said that the two would jointly own 84.1 per cent of the phosphoric acid producer. Government of India would be given a 0.4 per cent stake in the company. The rest of the equity would continue to be held by the Government of Senegal.

The deal gains significance in the context of the rising prices of phosphoric acid and its non-availability to Indian fertiliser units. Global prices of the key input to phosphatic fertilisers have risen to $1,985 a tonne from $566 a tonne a year ago.

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