Deepak Fertilisers & Petrochemicals Corporation Ltd (DFPCL) and Yara International ASA have signed a Heads of Agreement with the intention of establishing a joint venture Company (JV) to produce and market ammonium nitrate and speciality fertilisers in India.

Yara International ASA, is a US $ 14 billion Norway-based global leader in ammonia, speciality and bulk fertilizers and Ammonium Nitrate (AN), industrial gases and other diversified chemical and pollution control products.  

DFPCL will own 51% of the JV while Yara will own the balance 49%. The JV's objective is to bring value addition and deeper know leading to better market economics for Indian customers. The JV with Yara is expected to provide cost effective solutions to the farming community and the mining and infrastructure sector in India.

However, the heads of agreement will be converted into a final agreement after a due diligence and the necessary company and regulatory approvals.
Recently, Deepak Fertilizers has reported its earnings results for the quarter to June 2007. For the period, the company has registered 5% fall in net profit at Rs. 226.5 million. Its sales grew by 32% to Rs. 2,197.9 million.

At 3:00 pm, shares of the company reacted positively to this news and surged 20% to Rs. 141 on the NSE.