In 2025, we aim to optimize production, expand our reach, and advance initiatives to boost India’s urea self-sufficiency
Dr. Siba Prasad Mohanty, Managing Director, Hindustan Urvarak & Rasayan Ltd. (HURL)
How do you see the future of the fertilizer industry in India and globally?
The fertilizer industry is at a pivotal juncture, with increasing global demand for food and the necessity to grow sustainably. In India, the focus is on achieving self-reliance in urea production, promoting the balanced use of fertilizers through initiatives like PM-PRANAM, reducing dependency on imports, and enhancing agricultural productivity. Globally, the fertilizer sector will increasingly align with sustainable practices, integrating technology, renewable energy, and circular economies. A shift towards organic fertilizers, improved resource management, and eco-friendly production will shape the industry's future while addressing its environmental impact.
What challenges is the Indian fertilizer industry facing and what solutions would you suggest?
The industry faces several challenges: heavy reliance on imported raw materials (such as natural gas and phosphatic raw materials), aging plants, and environmental concerns about emissions. The solutions lie in increasing domestic production, reducing dependency on imports, and embracing technologies that boost efficiency. Incorporating organic fertilizers and promoting balanced use in line with PM-PRANAM can help reduce environmental pressures while enhancing productivity. Strengthening infrastructure, ensuring policy reforms, and integrating sustainable agricultural practices will be crucial to addressing these challenges.
How has the overall performance of HURL been in 2024, and what are your expectations for 2025?
In 2024, HURL demonstrated robust performance, with our plants in Sindri, Gorakhpur, and Barauni operating at near-optimal capacity. We’ve strengthened our commitment to sustainability, energy efficiency, and operational excellence. Looking ahead to 2025, we aim to further optimize production, expand our footprint, and roll out key initiatives to increase India’s self-sufficiency in urea. We will continue working on enhancing capacity, reducing dependence on imports, and promoting the balanced use of fertilizers to support Indian agriculture.
What is the current production capacity and capacity utilization of HURL plants, and what are your goals?
HURL’s plants have an installed capacity of 2,200 MTPD of ammonia and 3,850 MTPD of neem-coated urea, totaling 1.27 MMTPA of annual production. We are consistently working towards achieving 100 per cent capacity utilization to ensure consistent delivery that meets growing domestic demand. Our goal is to increase this capacity, particularly through operational excellence and expanding production facilities, while maintaining a focus on the balanced use of fertilizers and sustainability.
HURL is working on a mega Rs. 3,000 crore expansion plan. What is the latest development on this?
We are actively exploring the manufacturing of Nano fertilizers, Ammonium Sulphate, and NPK as part of this expansion.
HURL is also planning to set up a new urea unit in Assam. Could you please share more details about this?
HURL is set to participate in a proposed joint venture to establish the Namrup IV fertilizer plant, an ammonia-urea complex in Namrup, Assam. The project aligns with the government’s budget announcement and aims for an annual production capacity of 12.7 lakh tonnes of urea. HURL’s board has approved a 13 per cent equity stake in this venture. This new plant will leverage the abundant natural gas resources in the region, improving fertilizer availability in Northeast India, reducing transportation costs, and contributing to meeting domestic fertilizer demand. It will also support India’s goal of reducing dependency on imported fertilizers, further enhancing the country’s self-reliance in urea production.
How can HURL contribute to India’s self-sufficiency in urea production while maintaining profitability?
HURL is committed to increasing domestic urea production to reduce reliance on imports, thus contributing to self-sufficiency. By focusing on improving plant efficiency, utilizing energy-efficient technologies, and promoting the balanced use of fertilizers (as outlined in PM-PRANAM), we can offer cost-effective, environmentally friendly fertilizers. Our future expansion projects and ongoing technological advancements will allow us to meet domestic demand while remaining profitable and fulfilling national agricultural needs. Currently, HURL contributes around 4 million MT annually, a significant contribution toward India’s self-sufficiency.
How do you plan to manage costs and optimize supply chain efficiency?
Cost management will be driven by leveraging cutting-edge technologies such as automation and AI-based predictive maintenance. Optimizing supply chain will involve strengthening relationships with local suppliers, ensuring efficient logistics, and reducing transportation costs.
“We will continue working on enhancing capacity, reducing dependence on imports, and promoting the balanced use of fertilizers to support Indian agriculture…” |
What strategies would you implement to ensure HURL remains competitive in a changing regulatory and environmental landscape?
HURL’s competitiveness will be driven by continuous innovation, strict adherence to regulatory compliance, and active investment in the latest technologies. By emphasizing sustainable agricultural practices, we will ensure our production aligns with environmental goals. We will also work with the government and stakeholders to shape favorable policies and adopt renewable energy sources, keeping us ahead of regulatory changes while promoting a circular economy. Additionally, HURL is diversifying its product portfolio.
How should HURL approach sustainability and environmental responsibility in fertilizer production?
Sustainability is foundational to HURL’s operations. We’re committed to reducing emissions, improving energy efficiency, and integrating renewable energy sources. Our plants are designed with cutting-edge waste management and carbon reduction strategies, ensuring we meet the highest environmental standards while contributing to India’s green growth through the lowest energy consumption, CO2 emissions, and tree plantation initiatives.
What initiatives would you introduce to reduce the carbon footprint and improve green manufacturing?
To reduce our carbon footprint, we are focused on improving plant energy efficiency. We are also closely monitoring government policies on green energy and examining ways to integrate them into our operations.
“HURL is set to participate in a proposed joint venture to establish the Namrup IV Fertilizer Plant, an ammonia-urea complex in Namrup, Assam…” |
How can HURL leverage AI, automation, and IoT to improve efficiency?
AI, automation, and IoT offer immense potential to streamline our operations. By implementing AI for predictive maintenance and utilizing IoT for real-time monitoring, we can significantly improve operational efficiency, reduce downtime, and optimize resource management. These technologies will also help reduce waste, improve fertilizer efficiency, and contribute to more sustainable production processes.
What strategies would you use to strengthen partnerships with farmers and distributors?
HURL’s focus on building strong, lasting relationships with farmers and distributors will involve training programs, field days, and digital platforms to provide farmers with better insights into fertilizer use and sustainable practices. By integrating organic options and balanced fertilizer use under PM-PRANAM will help farmers enhance soil health while improving crop productivity. Strengthening the distribution network and ensuring timely deliveries will also be a focus to ensure seamless access to fertilizers.
HURL and CIPET have signed a MoU for skill development. How is this program progressing?
The skill development initiative under the SAKSHAM program is progressing very well. HURL is working closely with CIPET to train the next generation of skilled workers in the fertilizer sector, focusing on technical expertise and safety standards. Through this collaboration, HURL aims to train a total of 320 youth across its operational areas, including Gorakhpur, Barauni, and Dhanbad. The program is designed to bridge the skill gap and provide vocational training that will enhance employability and support the growth of HURL and the wider fertilizer industry. This partnership is crucial to ensuring that our workforce remains competitive and adaptable to future technological advancements.
What is your vision for HURL in the next five years?
Over the next five years, HURL aims to be a leader in India’s fertilizer industry, known for its commitment to sustainability, innovation, and reducing import dependency. Our focus will be on increasing capacity, integrating green practices, and supporting balanced fertilizer use in line with PM-PRANAM. HURL will work to become a key player in sustainable agricultural growth while continuing to innovate in both production and distribution, ultimately benefiting farmers, communities, and the environment.
Would you like to add anything from your side?
At HURL, we see our growth not just as a company but as a vital part of India's journey toward agricultural sustainability and self-reliance. As we embrace the future, we remain committed to driving positive change through technology, sustainability, and partnerships that empower farmers and local communities. By focusing on balanced fertilizer use, environmental responsibility, and continuous innovation, we will contribute to the nation’s agricultural resilience and help build a greener, more prosperous India.
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