Indian Phosphate Ltd (IPHL) Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating

Indian Phosphate Limited was originally incorporated as ‘Indian Phosphate Limited’ as a public limited company under the Companies Act, 1956 vide certificate of incorporation dated December 14, 1998 issued by the Registrar of Companies, Rajasthan, Jaipur (ROC) and was granted a certificate of commencement of business dated December 28, 1998 by Assistant Registrar of Companies, Rajasthan Jaipur. 

Indian Phosphate is mainly engaged in the production of Linear Alkylbenzene Sulphonic Acid LABSA 90%, popularly known as LABSA, is an anionic surfactant and it is used in the formulation of all types of detergent powders, cakes, toilet cleaners and liquid detergents. It is also engaged in the manufacturing of ‘Single Super Phosphate’ (SSP) fertilizer and ‘Granules Single Super Phosphate’ (GSSP) Fertilizer which is manufactured and supplied as per the standards of Fertilizer Control Order of India in powder and granulated form as well as fortified with zinc and boron. Single Super Phosphate and Granules Single Super Phosphate are being a fertilizer in nature used in agriculture industry. 

The company began its journey by trading dolomite and limestone. In 2004, it commissioned a manufacturing facility of SSP with an installed capacity of 200 MT/day. In 2009, it diversified into the chemical business by setting up its first Sulphonation Plant of LABSA 90% with an installed capacity of 150 MT/day. Later on, in 2010, in order to meet increased demand, the company expanded its SSP fertilizer capacity from 200 MT/day to 400 MT/day and also commenced manufacturing of Granules Single Super Phosphate with installed capacity of 200 MT/day. Subsequently, in 2011, the company expanded its Granules Single Super Phosphate fertilizer capacity from 200 MT/day to 400 MT/day. In 2022, it commissioned a second LABSA 90% plant with an installed capacity of 200 MT/day increased its combined capacity for manufacturing LABSA 90% to 350 MT/day. In November 2022, the company also ventured into non-renewable energy sector (for captive consumption) by setting up a 750 KWh solar plant in Bikaner. 

The company furthermore also produces Zincated Single Super Phosphate – ‘Powder/Granules’ and Zincated and boronated Single Super Phosphate – ‘Granules’ by formulating zinc and boron into the granulator and powder hopper along with Single Super Phosphate powder in required proportion. The Department of Fertiliser and the Government of India encouraged the SSP sector to create value-added fortified SSP with zinc and boron content due to the deficiency of these elements in the soil. Since last 5 years its focus is to produce fortified SSP with Zinc and Boron. The company has educated farmers over the past five years, encouraging them to use fortified SSP with boron and zinc according to soil deficiencies. 

Business area of the company

The company is mainly engaged in the production of Linear Alkylbenzene Sulfonic Acid LABSA 90%, popularly known as LABSA, is an anionic surfactant and it is used in the formulation of all types of detergent powders, cakes, toilet cleaners and liquid detergents.

Products of the company

• Linear Alkyl Benzene Sulphonic Acid (LABSA -90%)
• Single Super Phosphate (SSP)

History and milestones

• 1998: Incorporation of the company as a public limited company.
• 2001-02: Started trading in Dolomite and Lime Stone.
• 2004: First SSP powder plant became operational
• 2009: Set up LABSA -90% plant.
• 2010: Expanded SSP powder installed capacity from 200 MT to 400 MT / day and also set up 200 MT/day SSP Granulation Plant.
• 2011: Expanded SSP Granulation Plant installed capacity from 200 MT to 400 MT / day.
• 2022: Expanded capacity of the Sulphonation plant from 150 MT/day to 350 MT/day.
• 2022: Solar Plant commissioned at Bikaner.
• 2022: Allocation of a Rock Phosphate Mine in Madhya Pradesh (MP).
• 2022: Allotment of Stone Mines in Jodhpur.
• 2023: Construction of Fertilizer Plant project started in Dhule, Maharashtra.