Aditya Birla Nuvo plans fertilizer plant in US or Canada; net jumps 16.8%

Aditya-Birla-Nuvo-LtdAditya Birla Nuvo Ltd has is contemplating plans to build a fertilizer plant in either in the United States or Canada, the diversified company's managing director Rakesh Jain said.

Mr. Jain also revealed that the company was pursuing discussions with a number of provincial governments to give a shape to its plans. Setting up a fertilizer plant in the United States or Canada would allow the company to reap advantage of cheaper shale gas availability in the region.

Speaking on the topic, he added, "It is more of a greenfield type... setting up units. It depends on more clarity from the US government in terms of the long-term pricing and availability of gas. It would be in Canada as well."

On 5 March, Aditya Birla Group Chairman Kumar Mangalam Birla said that the shale gas discovery in America had led to a massive geopolitical shift that provided an interesting opportunity for the group.

For the January to March quarter of this year, Aditya Birla Nuvo reported a year-on-year increase of 16.8 per cent in consolidated net profit, thanks to higher sales and more income from sources other than its core businesses.

Net profit jumped to Rs 198.87 crore in the quarter ended March 31, 2013, from Rs170.27 crore in the corresponding period of the previous fiscal. Revenue climbed 16.7 per cent to Rs 6,995.95 crore.