Investment and Startups

Asian Development Bank funds farm efficiency initiative of Smartchem Technologies

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01 November 2022, Pune: Asian Development Bank (ADB) has announced that it would fund the farm efficiency initiative of Smartchem Technologies Limited (STL), a wholly owned subsidiary of Deepak Fertilisers And Petrochemicals Corporation Limited (DFPCL), through a $30 million loan facility with a tenor of 5 years. This is ADB’s first agribusiness “Blue Loan”, and the first such blue loan in India in the agribusiness sector across institutions. The loan will be used to finance capital expenditure as well as research and development of enhanced-efficiency speciality fertilizers. 

STL was chosen as a suitable candidate for Asian Development Bank (ADB) support because of its (i) leading market position in the enhanced efficiency specialized fertilizers (EESF) segment, with advanced technical capability and satisfactory financial performance; (ii) growth potential from the enhancement of fertilizer production capacity to provide quality inputs; and (iii) actions to encourage the application of EESFs, which will support the sustainable transformation of agriculture in India while improving its resilience to climate change.

ADB has also given approval for a technical assistance grant of USD 5,00,000 for building capacity for Soil Nutrition Management among Smallholder Farmers and Climate Resilience in India. The said grant is in addition to financing of $30 Million (“Blue loan”).

STL has, over the years, successfully built on its credentials as an innovator in the Water Soluble and Specialty Fertiliser category, to emerge as market leader through its Mahadhan Brand. Its Crop-Specific products provide Enhanced Nutrient Uptake by the soil/crop in comparison to the commodity NPK products and will help enhance farmers’ incomes by way of better yields and quality. STL today offers a basket of 48 products which include bulk fertilisers, Crop nutrient solutions, speciality fertilizers, water soluble fertilizers, bio-stimulants, micro-nutrients and secondary nutrients, catering to every crop’s nutrient requirement. STL’s enhanced-efficiency speciality fertilizers are developed basis rigorous R&D efforts and product trials at over 50,000 farmer demo plots. Over the last three years, value-added nutrition products have benefitted 6 million farmers. 

Commenting on the development, Mr Sailesh C Mehta, Chairman & Managing Director, DFPCL said “This Financial association with ADB will help enhance our ongoing Specialty Fertiliser Business including the applied R&D & grass-root Farmer Training initiatives. It is heartening to have a validation of our efforts towards Crop/Soil specific Fertiliser Systems and improvements of Nutrient Use Efficiency that promises to bring balanced soil nutrition.”

Also Read: Cargill to enter into joint venture to increase production capacity in Ecuador’s shrimp feed market

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