OREANDA-NEWS. June 17, 2010. Acron has signed a new large-scale contract with India, which accounts for nearly 10% of the group’s FY2010 projected NPK fertilizer output. In our opinion, the deal and a subsequent sales upturn should push up the company’s 2010 revenue and EBITDA.

Acron Group has signed a contract for NPK fertilizer (16-16-16) shipments with the largest Indian fertilizer distributor, IPL. Under the contract, Acron should supply to IPL 200,000 tons of compound fertilizers by the end of the current year. India is the world’s largest importer of mineral fertilizers. Over the long-term Acron plans to strengthen its presence in the Indian market and boost NPK supplies to Indian consumers to 300,000-350,000 tons per year.

The new contract is a major deal: 200,000 tons account for nearly 10% of Acron Group’s projected NPK fertilizer produce in 2010. The upturn in sales and product shipments should drive up the company’s FY2010 revenue and EBITDA.