Public sector major Indian Farmers' Fertiliser Co-operative is charting a Rs 3,000 crore (Rs 30 billion) diversification and expansion plan.

After its successful foray into the insurance sector, Iffco plans to diversify into banking, power and food-processing.

Confirming the development, U S Awasthi, managing director of Iffco, said, "We have appointed Rabo India, Ernst & Young and HSBC to advise us on our diversification into the three sectors."

"The merchant bankers are evaluating the proposals. If we were to prioritise, banking would be the first choice. The preliminary study is done. We are now doing a detailed study for our foray into banking," Awasthi added. Rabo India has been appointed for advice on the issue.

Since the Iffco brand has a high recall value in villages, the co-operative may initially focus on the rural banking market. Depending on its success, Iffco may later move to cities.

Iffco, which manufactures urea, NPK and DAP fertilisers, was also looking at expanding its business through backward and forward integration, Awasthi said. It has a production capacity of around 6 million tonnes.

The co-operative is exploring the options of diversifying through the joint venture route as well as through acquisitions. Awasthi refused to reveal the names of the possible partners, because talks were on.

Iffco has brought down the government's share in its equity from 71.64 per cent to 60 per cent by refunding Rs 10 crore.

The co-operative plans to reduce it to 49 per cent for greater functional autonomy, thereby enabling it to bid for any company, private or public sector.

The management of Iffco has chalked a three-year schedule to bring down the government's interest in the co-operative to a minority stake of 49 per cent.