Revolutionizing Logistics

Yara India, recognizing the inefficiencies in the traditional road transport of premium fertilizer products, embarked on a strategic initiative to utilize rail transport. This move aimed to enhance logistical efficiency, reduce costs, and minimize environmental impact, thereby strengthening Yara India’s market presence and sustainability efforts.

Project background and purpose

• Current Situation: Traditionally, premium products were shipped to India in containers, bagged at a port, and transported inland via trucks with varying capacities. This method resulted in delivery delays, increased costs, and extended inventory days. All local players followed this process, leading to logistical bottlenecks.
• Project: Yara India decided to leverage the railway system to bridge the gap between ports and consumption areas. The goal was to transport 1,400 MT of premium products by rail directly to channel partners from the rail head, achieving cost savings and reducing CO₂ emissions by ~27%.

Selection of Targeted Market

• Key Focus Crops: The project team identified key markets based on crucial crops for YaraLiva, ensuring delivery during peak application periods.
• Channel Strength & Business Plan: Identified channel partners in these markets to facilitate the movement of 1,400 MT YaraLiva directly from the rail head to retailers and farmers.

Demand Generation Activities & Campaign

• Marketing Campaign: A robust marketing campaign was launched in selected villages, creating excitement around the landmark event of the first rake of premium products in India.
• Commercial Team Support: The campaign facilitated quick and efficient order placements from channel partners, supporting the commercial team.

Capturing Retailer / YCNC Counters

• Retailer Engagement: Extensive demand generation activities encouraged key retailers to stock YaraLiva Nitrabor, increasing visibility and accessibility for farmers.
• Retail-Level Orders: Retail orders contributed to 70–75% of overall volume, enabling direct product movement from the rail head to the market.

Achieved outcome(s)

• Scaling Up Volume & Capturing Market: Strengthened Yara India’s position in Western Uttar Pradesh, leading to plans for six additional rakes. A total of 8,200+ MTs were moved by rail in 2024.
• Logistical Efficiency & Cost Savings: Rail transport led to significant freight cost savings of approximately $25 per MT, totaling around $205,000.
• Carbon Footprint Reduction: Rail transport reduced carbon emissions, demonstrating a commitment to environmental sustainability.
• Breaking Stereotypes in Premium Products Logistics: Successfully transporting large volumes by rail challenged industry norms, paving the way for handling a bulk vessel in 2025.

In 2025, Yara India plans to transport 30% of its business volume, approximately 40,000 metric tons, via rail. This shift aims to capture a larger market share and save around $1 million in freight costs. By revising our transportation network, we will deliver fertilizer consignments directly to dealers using rail cars instead of road transport, reducing both warehouse costs and carbon emissions. Impressively, we achieved our rail delivery target within the first three months of 2025, by introducing one rail car each month.

Looking beyond 2025, under our visionary initiative “Thinking Beyond the Imagination,” we plan to transition our premium shipments from container delivery to vessel delivery. This innovative approach, a first in the industry, is expected to significantly decrease our carbon footprint and enhance operational efficiency.