OCP: Its Joint Venture Releases 65 Million Shares in India
The joint venture equally owned by the Moroccan group OCP and Indian Zuari Agro Chemicals has lifted the pledge on nearly 64.9 million shares of Paradeep Phosphates Limited (PPL). This operation, carried out after repaying financing provided by Tata Capital, does not change the majority stake held by Zuari Morocco Phosphates Private Limited (ZMPPL) in the Indian fertilizer manufacturer.
Statements submitted to the Indian stock exchanges indicate that two pledge releases took place on the same day. The first concerns 40 million shares, representing approximately 3.85% of PPL’s capital, while the second involves 24.8815 million shares, or about 2.40%.
These operations do not represent a sale of shares. Instead, they primarily reflect the reduction of financial guarantees that were established in the context of financing granted to ZMPPL by Tata Capital.
OCP Maintains Its Exposure to Paradeep Phosphates
ZMPPL remains the majority shareholder of Paradeep Phosphates, with a reported ownership of 50.36% of the capital. The joint vehicle is owned 50% by OCP and 50% by Zuari Agro Chemicals.
Founded in 2002, ZMPPL is an Indian investment company specifically established to hold a stake in Paradeep Phosphates. This structure allows the Moroccan group to benefit from significant exposure to the Indian fertilizer market without directly holding shares in PPL.
Before the pledge release operations, ZMPPL held 522.97197 million shares of PPL. The joint venture subsequently purchased an additional 100,000 shares on the Indian market on August 19, at an average price of 150.60 rupees per share, amounting to a total of 15.06 million rupees.
Following this acquisition, its declared portfolio reached 523.07197 million shares, while the published stake remained at 50.36%.
Nearly 65 Million Shares Now Released
The first release reduced the number of shares still covered by the pledge from 65 million to 25 million. A second guarantee concerning 24.8815 million shares was also fully lifted.
Reports regarding the guarantees further indicate a remaining balance of 118,500 shares on one of the previously mentioned guarantees, representing approximately 0.01% of the capital of Paradeep Phosphates.
This operation significantly reduces the volume of PPL shares used as financial collateral by the OCP-Zuari joint venture.
ZMPPL Sees Revenue Growth but Declining Profits
ZMPPL itself experienced growth during the year ending March 31, 2026. According to accounts published by Zuari Agro Chemicals, the joint venture generated revenue of 932.386 million rupees, up from 688.406 million the previous year, marking an increase of about 35%.
However, this revenue growth did not translate into an increase in profit. ZMPPL’s profit after tax fell from 199.689 million to 141.433 million rupees, representing a decline of about 29%.
Paradeep Phosphates Reports Strong Growth in India
The company in which ZMPPL holds its majority stake is experiencing strong commercial momentum.
In the first quarter of its 2026-2027 fiscal year, Paradeep Phosphates recorded revenue of 61.243 billion rupees, up 36% year-over-year. Its net profit reached 3.93 billion rupees.
The volumes marketed amounted to 985,143 tons, a 4% increase. Sales of diammonium phosphate saw a notable rise of 55%, while potassium chloride sales surged by 109.6%.
Conversely, the volumes of NPK and urea decreased during the period.
A Strategic Partnership Between Morocco and India
The stake in Paradeep Phosphates represents a key pillar of industrial cooperation between OCP and Zuari Agro Chemicals in the fertilizer sector.
For the Moroccan group, this presence strengthens its exposure to the Indian market, one of the world’s major agricultural markets and consumers of fertilizers. It also aligns with a strategy to integrate OCP’s activities with international fertilizer markets.
The lifting of a significant portion of the pledges on PPL shares occurs without undermining ZMPPL’s control position. On the contrary, this operation enables the joint venture to maintain its majority stake while reducing the financial guarantees related to its previous financing.
