Coal India has brought turmoil to the doorstep of these 3 chemical giants

It's trouble in paradise for India's largest ammonium nitrate producers. Coal India has thrown a spanner in their glorious plans of riding the growth in the Indian mining sector. But how exactly? Let's take it from the top. The once glorious vision Coal powers up India. And by extension the country's mining activities. Mining requires ammonium nitrate, which is used in making explosives for mines. Three players-Deepak Fertilisers and Petrochemicals, Chambal Fertilisers and RCF-largely cater to the entire ammonium nitrate market of around 10 lakh tonnes per annum, 60 per cent of which is consumed in coal mining alone. Naturally, Coal India is the largest consumer of ammonium nitrate. And its coal production (by volumes), which has been on a solid track, growing 9 per cent per annum between FY21-24, is only firming up the demand for the chemical. Further, about 20-30 per cent of the chemical is imported, which leaves more room for its producers. They are hence doubling down to savour the expected growth. Deepak Fertilisers, hopes to be the biggest beneficiary