Escolar Documentos
Profissional Documentos
Cultura Documentos
(2010-2012)
Submitted By:
M NAVNEETH ROY
2011
Certificate
Certified that this Prowess Report titled “Fertiliser companies in India” is a
bonafide Record of the work done by M NAVNEETH ROY in this department as
the part Of second semester of MBA in the Department of Business
Administration, College of Engineering, Trivandrum.
Prof S. SIVAKUMAR
Dr. K. GOPALAKRISHNAN NAIR Head of Department
Department of Business Administration
College of Engineering
ACKNOWLEDGEMENT Department of Business Administration
College of Engineering
Trivandrum Trivandrum
Fertilizers are applied to promote plant growth; the main nutrients present in fertilizer are
nitrogen, phosphorus, and potassium (the 'macronutrients') and other nutrients
('micronutrients') are added in smaller amounts. Fertilizers are usually directly applied to
soil, and can also be sprayed on leaves as a foliar feeding.
Organic fertilizers and some mined inorganic fertilizers have been used for many
centuries, whereas chemically synthesized inorganic fertilizers were only widely
developed during the industrial revolution. Increased understanding and use of fertilizers
were important parts of the pre-industrial British Agricultural Revolution and the
industrial Green Revolution of the 20th century.
Inorganic fertilizer use has also significantly supported global population growth — it has
been estimated that almost half the people on the Earth are currently fed as a result of
artificial nitrogen fertilizer use.
The three primary macronutrients: nitrogen (N), phosphorus (P), and potassium (K).
The three secondary macronutrients: calcium (Ca), sulfur (S), magnesium (Mg).and the
micronutrients (trace minerals): boron (B), chlorine (Cl), manganese (Mn), iron (Fe), zinc
(Zn), copper (Cu), molybdenum (Mo) and selenium (Se).
The macronutrients are consumed in larger quantities and are present in plant tissue in
quantities from 0.2% to 4.0% (on a dry matter weight basis).
Micronutrients are consumed in smaller quantities and are present in plant tissue in
quantities measured in parts per million (ppm), ranging from 5 to 200 ppm, or less than
0.02% dry weight.
The nitrogen-rich fertilizer ammonium nitrate is also used as an oxidizing agent in
improvised explosive devices, sometimes called fertilizer bombs, leading to sale
regulations.
India's green revolution in late sixties gave a positive boost to the sector. The sector
experienced a faster growth rate and presently India is the third largest fertilizer producer
in the world.
According to Given Statistics, total capacity of the industry as on 30.01.2003 has reached
a level of 121.10 lakh MT of nitrogen (inclusive of an installed capacity of 208.42 lakh
MT of urea after reassessment of capacity) and 53.60 lakh MT of phosphatic nutrient.
Presently there are 57 large fertilizers plants in the country producing urea, DAP,
Complex fertilizer,Ammonium Sulphate (AS) and Calcium Ammonium Nitrate (CAN).
The increase in the fertilizer industry is approved to favorable policies. Now, there are
many fertilizer units and supply a wide range of fertilizers. This is apparent from the
steady global demand for Indian fertilizers that is being fulfilled. Recent years is viewing
a demand for organic fertilizers besides inorganic fertilizers.
Many private fertilizer companies are showing positive gesture by setting plants in
various countries and are elevating the demand for chemical and bio fertilizers.
The fertilizers industry in India has a good and bright future in the market. The Indian
government is offering optimal support by subsidizing raw materials as well as by
relaxing the export policies and this is found to be favorable to the fertilizer companies.
The manufacture and fertilizers supply is viewed as the most energy process in the Indian
industry. The nitrogenous as well as bio fertilizers have great impact on the use of energy
and the determining factors for efficiency of energy in the industry are feedstock’s,
technology, capacity utilization and plant age.
But its own demand for fertilizer almost equals its exporting capacity. The rapid rate of
population growth and the rising demand for food products has increased the demand of
fertilizer in India.
The primary factor behind the demand of fertilizer in India is the nature of Indian soil.
Although the soil for agriculture is rich in silt, it is deficient in nutrients such as
potassium, phosphate and nitrogen. To supplement these nutrients, India has to produce
and also import fertilizers.
Apart from the inorganic fertilizers, the demand for organic fertilizers produced in India
has increased in recent years. One of the major players in the field of organic manures
and bio-products is M.J. Exports. U.K is a major importer of organic fertilizer from India.
Many countries prefer organic fertilizers because of the lower risks of environmental
hazards.
The private fertilizer companies in India are now taking their business to foreign shores,
setting up plants in other countries. This is a positive gesture towards increasing the
global demand for Indian fertilizer and also meeting the same. Soon after Reliance
Industries' declaration of building two two-million ton capacity fertilizer units, National
Fertilizer Limited has announced its negotiations and talks with International Chemical
Group to start joint ventures in Brunei, Qatar and Egypt. Kribhco is planning to set up
plants in collaboration with a Tunisian fertilizer company named GCT. The venture will
see increased production of phosphoric acid and Muriate of Potash (MOP). The future,
thus, looks bright for the Indian fertilizer industry in the global market. The global
fertilizer demand as a whole shows a sharp rise in recent years. 2005-2006 registered a
1.5% growth which increased sharply to 5% in 2006-2007. The demand for nitrogen
fertilizers is the highest, surpassing the demand for potassium and phosphate fertilizers. If
the demand is analyzed on the basis of regions, then North America shows the greatest
demand for fertilizer with an annual demand growth of 9.9%, followed by West Asia
(8.1%) and South Asia (5.5%)
Some of the public sector companies in Indian
fertilizer market.
Southern Petrochemicals data for 2007 are not available in prowess software.
2008
Annual Annual Annual Annual Annual
Rs. Crore Rs. Crore Rs. Crore Rs. Crore Rs. Crore
Dec-06 Dec-06 Dec-06 Dec-06 Dec-07
Company Name Income Sales Net inc Profit afterIncome
Indian Farmers Fertiliser Co-Op. Ltd. 10028.44 9957.96 9981.37 341.35 10589.29
Tata Chemicals Ltd. 3766.03 3639.58 3583 353.03 4310.5
National Fertilizers Ltd. 3663.25 3626.12 3627.48 116.4 3916.59
Southern Petrochemical Inds. Corpn. Ltd. 3393.52 3333.76 3308.85 -390.83
Rashtriya Chemicals & Fertilizers Ltd. 3212.23 3129.55 3100.46 147.96 3662.33
Gujarat State Fertilizers & Chemicals Ltd. 3113.87 3004.77 2852.35 293.8 3647.6
2009
Annual Annual Annual Annual Annual
Rs. Crore Rs. Crore Rs. Crore Rs. Crore Rs. Crore
Dec-06 Dec-06 Dec-06 Dec-06 Dec-07
Company Name Income Sales Net inc Profit afterIncome
Indian Farmers Fertiliser Co-Op. Ltd. 10028.44 9957.96 9981.37 341.35 10589.29
Tata Chemicals Ltd. 3766.03 3639.58 3583 353.03 4310.5
National Fertilizers Ltd. 3663.25 3626.12 3627.48 116.4 3916.59
Southern Petrochemical Inds. Corpn. Ltd. 3393.52 3333.76 3308.85 -390.83
Rashtriya Chemicals & Fertilizers Ltd. 3212.23 3129.55 3100.46 147.96 3662.33
Gujarat State Fertilizers & Chemicals Ltd. 3113.87 3004.77 2852.35 293.8 3647.6
Brief profile
The main activity of the company is production and distribution of mixed fertilizers. It is also engaged in the production of
fertilizers, quality seeds, agro-chemicals and implements modern technology for farmers. It is making substantial
contribution to the Indian government to increase food grain production in the country.
The various product types manufactured and traded by IFFCO are Ammonia, Urea, Dap, NPK, Dry Ice, Malathion, Seeds &
Chemicals etc, and liquid Co2.
The company is having various plants at Aonla ( Bareilly, UP), Kalol (Mehsana,Gujarat), Kandla (Kachch, Gujarat), Phulpu
(Allahabad, UP). It has also completed another plant at Kandla Phase II.
The fertilizer distribution of IFFCO is undertaken by 36,000 co-operative societies in India. The entire activities of
distribution, sales and marketing are co-coordinated by Marketing Central Office, at New Delhi assisted by the marketing
offices in the field. In addition, essential agro-inputs for crop production are made available to the farmers through a chain
of 167 Farmers Service Centre (FSC).
IFFCO nurtures its relations with farmers and undertakes a large number of agricultural extension activities for their benefit
every year.
ORIGIN OF IFFCO
Till mid sixties cooperatives in India had no production facility despite marketing nearly
70% of fertilizers. IFFCO was established as the farmers’ own initiative in Cooperative
Sector on 3rd Nov. 1967 with the proposed plants at Kalol & Kandla. With the enactment
of Multi State Co-operative Societies Act 2002, IFFCO is deemed to be registered as a
Multi State Co-operative Society. The Society is fully owned by Cooperatives.
KALOL
PHULPUR
KANDLA
PARADEEP
MARKETING CHANNELS
Distribution of fertilisers mainly through the Cooperative
System:
State level Apex Cooperative Marketing Federation
acts as wholesaler
Direct supplies to Societies in some States
IFFCO-NCDC Cooperative Societies
Small quantities to institutional agencies like Agro
Industries Corporation etc
158 IFFCO Farmers Service Centres
Executive Summary
Indian Farmers Fertiliser Co-Op. Ltd. Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths
-
Total income 10028.44 10589.29 12525.07 33475.93 17651.5
Sales 9957.96 10344.66 12173.39 32948.43 16823.94
Income from financial services 32.92 155.53 274.41 440.43 752.94
Growth (%)
Total income 33.993204432 5.5925946608 18.280545721 167.27140048 -47.27106909
Total expenses 41.345971753 12.506585727 -0.331295715 200.0235373 -49.21076894
PBDITA 30.715329338 16.606597016 17.88606753 65.890044971 -10.2578851
PAT 6.792016018 -48.72711293 47.177465433 39.760860282 11.413571845
Net worth 7.8466858614 2.5533309414 1.3991465729 7.446900996 7.9780630447
Total assets 89.916361022 13.972101992 4.6369979305 65.223733298 -9.479884175
Indian Farmers Fertiliser Co-Op. Ltd. Mar 2006 Mar 2007 Mar 2008 Mar 2009
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths
-
Total income 10028.44 10589.29 12525.07 33475.93
Sales 9957.96 10344.66 12173.39 32948.43
Industrial sales 9947.4 10333.55 12162.82 32933.3
Income from non-financial services 10.56 11.11 10.57 15.13
Income from financial services 32.92 155.53 274.41 440.43
Interest 11.38 10.54 26.66 166.01
Dividends 21.54 124.62 132.53 274.42
Treasury operations 0 20.37 115.22 0
Other income 21.12 67.12 54.92 39.28
Prior period income & extraordinary income 16.44 21.98 22.35 47.79
Change in stock 239.68 754 -1136.21 280.51
Company Background
Incorporated in 1939 Tata Chemicals limited, a Tata Group Company is one of the most prominent producer of inorganic
chemicals such as urea and phosphatic fertilizers in India. The company also produces fertilizers, food additives.
Currently Mr. Ratan N. Tata is the Chairman of the company. The promoters hold around 71 percent of the total share capital
of the company whereas institutional investors share about 34 percent and individuals have a significant share of about 29
percent.
The products manufactured by TCL are broadly categorised into Chemicals, Fertilisers, food additives and others. TCL
manufactures inorganic chemicals such as Soda ash, Caustic soda, Gypsum, Cement both ordinary portland and pozzolana
portland cement, Bromine and its variants like liquid bromine technical, potassium bromide PQ, sodium bromide PQ, methyl
bromide, ethyl bromide and hydrobromic acid.
The fertilisers manufactured by the company are called nitrogenous fertilisers (or urea), Phosphatic fertilisers and Potassic
fertilisers. The fertilisers are sold under the brand name 'Paras'. The food additives produced by TCL include salt, sodium
bicarbonate and cooking soda. The other TCL products are ethyl bromide, hydrobromic acid, hydrochloric acid, liquid
bromine, liquid chlorine and sodium bromide (photographic grade).
The above products have applications in the sectors such as agriculture, animal nutrition, construction, food products, glass,
metals, pharmaceuticals, safety and environment, soaps and detergents, textile and leather. The company also supplies
various farming equipment and solutions including know-how and innovative techniques such as satellite mapping and
geographical information system.
Tata Chemicals Limited (TCL) is a global company with interests in businesses that
focus on LIFE — living, industrial and farming essentials. It is the world's second-largest
producer of soda ash. With manufacturing facilities in India, UK, US and Kenya, TCL is
the world’s most geographically diversified soda ash company, with an efficient supply
chain that can service customers across the globe.
Established in 1939 at Mithapur (in Gujarat, India), TCL is a part of the Tata group. It is
a leading player in the agribusiness sector with a strong presence in crop nutrients (urea
and phosphatic fertilisers) and crop protection products. The company is a pioneer and
market leader in the Indian branded iodised salt segment through its pioneering brand
Tata Salt.
TCL’s global soda ash capacity is around 5.5 million tonnes per annum, out of which 60
per cent capacity is from natural soda ash deposits at Wyoming in the US and Lake
Magadi in Kenya. Along with soda ash (sodium carbonate), the company also
manufactures sodium bicarbonate and bulk chemicals such as sulphuric acid, phosphoric
acid, and sodium tripoly phosphate (STPP).
The company has extended its operations into the services sector and touches lives
through applications in agriculture, animal nutrition, construction, consumer products,
glass, metals, pharmaceuticals, soaps and detergents, and textiles and leather industries.
In India Tata Chemicals is present in all three crop nutrition groups through its fertiliser
product base that spans:
TCL is the market leader in the urea and phosphatic fertiliser segments. Additionally, the
company imports and sells MOP and DAP and supplies organic materials and other
specialty fertilisers such as calcium nitrate and zinc sulphate.
TCL has an established presence in the states of Uttar Pradesh, Punjab, Haryana, Bihar
and Uttaranchal, which account for 48 per cent of the total domestic demand for urea.
Executive Summary
Tata Chemicals Ltd. Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths
-
Total income 3766.03 4310.5 4884.95 8725.83 5772.07
Sales 3639.58 4124.66 4208.57 8538.01 5514.61
Income from financial services 83.72 156.55 637.43 117.8 187.73
Growth (%)
Total income 16.5884979 14.4573994 13.3267602 78.6268027 -33.8507626
Total expenses 22.883251 10.218144 2.67902502 111.267506 -38.2731214
PBDITA 10.7271291 20.4316735 60.3976201 -26.8614856 -0.49171202
PAT 3.66466011 25.8278333 113.678215 -52.3746813 -3.82037385
Net worth 8.2418243 10.5735232 49.4742878 8.06882937 10.9776384
Total assets 6.02387078 0.61542796 57.5925071 32.2871816 -9.37996183
Tata Chemicals Ltd. Mar 2006 Mar 2007 Mar 2008 Mar 2009
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths
-
Total income 3766.03 4310.5 4884.95 8725.83
Sales 3639.58 4124.66 4208.57 8538.01
Industrial sales 3164.31 3620.36 3870.72 6265.45
Income from non-financial services 475.27 504.3 337.85 2272.56
Income from financial services 83.72 156.55 637.43 117.8
Interest 27.54 37.75 29.26 36.87
Dividends 51.95 90.58 85.01 80.12
Treasury operations 4.23 28.22 523.16 0.81
Other income 14.32 0 14.83 14.74
Prior period income & extraordinary income 28.41 29.29 24.12 55.28
Change in stock 87.44 -8.17 25.71 95.54
TCL has recruited world renowned scientists with high levels of capabilities in their field
of specialisations. The centre has built a state-of-the-art infrastructure with latest
equipment for development work.
The success and capability of the Innovation Centre has already become very clear – it
has filed for 36 patents (including 14 international filings), and is in the process of filing
several more.
New products: Since inception, the Innovation Centre has interfaced with TCL's business
units and explored the development of new products higher up the value chain. The
centre has contributed significantly in the development of the nanotechnology-enabled
cartridge (or bulb), in Tata Swach.
New areas: The centre has established a young, highly experienced, and technologically
advanced team that is eager to make its mark through innovation and patenting. The
centre has now moved from being TCL-centric to a having a much wider base of clients,
from the Tata group as well as external companies.
All of them have very impressive credentials and have reached positions of value in their
fields. Their work has been recognised and valued by their peer group world over.
As evidence of this, Innovation Centre is working with some leading institutes like
CSIR, MIT, Purdue University, IIT Chennai among others developing radically different
technologies.
Brief profile
Company Background
National Fertilizers Ltd (NFL) is the leading player of Indian Fertilizer Industry. This Urea producing company is a Mini
Ratna Category I company. It was started in 1974 to be operated under the Department of Fertilizer in the Ministry of
Chemical and Fertilizers.
With an installed capacity of 35.49 lakh MTs of Nitrogenous Fertilizers the company operates through its 5 plants located
at Nangal, Bhatinda, Panipat, Indore and Vijaipur.
In addition to its popular brands Kisan Urea and Kisan Khad, NFL also manufactures and markets Bio fertilizers and a wide
range of industrial products like Methanol, Nitric Acid, Sulphur, Liquid Oxygen, Liquid Nitrogen etc. NFL has newly
developed Neem coated Urea which has proven capacity to increase the crop yield. The company efficiently markets its
products through its strong distribution channel spread all over the country.
NFL has provided specialized services in the fields of Project Management, Plant Operation and Maintenance etc in
countries like Brazil, Bahrain and Libya. For Indian farmers too, NFL provides soil testing services, other farm services like
fertilizer demonstration, field days, farmers Mela, pilot projects etc and farmer training centres to educate the farmers on the
proper use of fertilizers. On the occasion of 50th anniversery of India's Independence NFL has undertaken an integrated rura
development program called 'Sulabh', which aims at eradication of poverty and sustaining economic welfare.
Central Government owns nearly 98 percent stake in the company and the current chairman and MD is Mr.P.S.Grewal.
NFL, a Schedule A and Mini Ratna Company, is the second largest producer of
Nitrogenous Fertilizers in the Country with 15.8% share in domestic production of Urea
achieved in the country during 2009-10.
NFL was incorporated on 23rd August 1974 with two manufacturing Units at Bathinda
and Panipat. Subsequently, on the reorganization of Fertilizer group of Companies in
1978, the Nangal Unit of Fertilizer Corporation of India came under the NFL fold. The
Company expanded its installed capacity in 1988 by installing and commissioning of its
Vijaipur gas based Plant in Madhya Pradesh.
The Vijaipur Plant was a landmark achievement in project management in India. The
plant was completed well within time and approved project cost. In recognition of this
achievement, the project was awarded the First Prize on Excellence in Project
Management by Govt. of India. Subsequently the Vijaipur plant doubled its capacity to
14.52 lakh MTs by commissioning Vijaipur Expansion Unit i.e. Vijaipur-II in 1997. The
annual capacity was subsequently re-rated w.e.f. 1.4.2000 from 7.26 lakh MT of Urea to
8.64 lakh MT for Vijaipur-I & Vijaipur-II Plants each.
Three of the Units Three of the Units are strategically located in the high consumption
areas of Punjab and Haryana. The Company has an installed capacity of 32.31 lakh MT
of Urea. The company produced 33.30 lakh tonnes of Urea and recorded an annual sales
turnover of Rs.5091crores during 2009-10.
NFL, a profitable public sector undertaking operates under the administrative control of
Department of Fertilizers in the Ministry of Chemicals & Fertilizers.
The Company is consistently making profits and registered a profit (PBT) of Rs.260
crores for the year 2009-10.The Company’s strength lies in its sizeable presence, skilled
manpower, Marketing and strong distribution network nationwide.
Aiming towards further growth, NFL is already in the process of revamping its three fuel
oil based plants for change over its feedstock from FO/LSHS to NG/R-LNG and
Capacity Augmentation of Urea at Vijaipur Unit. Towards reduction of Green House
Gases, Company has already initiated action for various CDM (Clean development
Mechanism) Projects so as to earn revenue in terms of carbon credits.
NFL in collaboration with M/s KRIBHCO & RCF has formed a joint venture company
(JVC) named as Uravarak Videsh Limited (UVL) to explore investment opportunities
abroad and within country in Nitrogenous, Phosphatic & Potassic sectors and to render
consultancy services for setting up Projects in India & Abroad. A brown field gas based
Urea plant at Barauni in Bihar has been entrusted to the above Joint venture Company.
Kisan Urea NFL’s popular brand is sold over a large marketing territory spanning the
length and breadth of the country. The Company also manufactures and markets Bio-
fertilizers and a wide range of industrial products which include Methanol, Sodium
Nitrate, Sodium Nitrite, Nitric Acid, Sulphur, Liquid Oxygen, Liquid CO2, Liquid
Nitrogen etc.
The Company has also developed Neem coated Urea which on demonstration has shown
improved results in terms of increase in yield by 4-5% and environment friendly.
Accordingly Company has been manufacturing and selling Neem Coated Urea from its
manufacturing plants since 2002-03 The Company is further focusing its thrust to widen
the marketing operations of Neem coated Urea.
The company has also taken initiative to make available other agro inputs under single
window like quality seeds, Insecticides and Bio-pesticides by collaboration with other
reputed organizations. R&D trials are under way for testing the efficacy of Bio-
pesticides, elemental Sulphur, in collaboration with Agriculture Institutes.
NFL over the years has developed a team of dedicated professionals in the areas of
production, maintenance, project management, safety and environment control. These
professionals are sought after in the Industry both in India & abroad for their Specialized
Services.
NFL is known in the industry for its work culture, value added human resources, Quality
Management, Safety, Environment, Concern for Ecology and its commitment to social
upliftment and to ensure their compliance, All NFL plants are certified and being
maintained under ISO-9001 (2000), ISO-14001 & OSHAS-18001 by conforming to
International Quality, Environmental & Occupational Safety & Hazards standards.
Urea is an essential commodity under the Essential Commodities Act, 1955. The
Department of Fertilizers (DoF) plans and monitors production, import and distribution
of fertilizers and manage the subsidy for indigenous and imported fertilizers in the
country. In this regard, DoF has set up an on line web based Fertilizers Monitoring
System (FMS). Presently Fertilizer companies are allowed to market 50% of their total
Urea produce out side EC allocation.
Bio Fertilizers
NFL manufactures and markets three types of Bio-Fertilizers, Rhizobium, Phosphate
Solubilishing Bacteria (PSB) and Azetobactor. Starting with a mere 23 MT production in
1995-96, the production has risen to 204 MT (Approx) in 2007-08. The Company
presently markets its bio-fertilizers in Madhya Pradesh, Maharashtra, Uttar Pradesh,
Uttrakhand, Chattisgarh, Bihar, Jharkhand, Himachal Pradesh, Jammu & Kashmir,
Punjab, Haryana & Rajasthan.
Bio-fertilizers are used to supplement chemical fertilizers as also to maintain soil fertility;
besides the following:-
Fix Biological Nitrogen in the soil, which is readily available to the plant.
Provides plant nutrient at low cost and useful for the consecutive crops.
Kisan Urea
Kisan Urea is a highly concentrated, solid, nitrogenous fertilizer, containing 46.0%. It is
completely soluble in water hence Nitrogen is easily available to crops. It contains
Nitrogen in amider form which changes to ammonical forms and is retrieved by soil
colloides for longer duration. Urea is available in granular form and can eb applied by
drill and broadcasting.
Kisan Urea is ideally suitable for all types of crops and for foliar spray which instantly
removes nitrogen deficiency. Kisan Urea also has a strong and long lasting effect on crop
resulting in bumper crops Carbonic acid present in Kisan Urea helps in absorption of
other nutrients like phosphate and Potash by roots of crop.
Executive Summary
National Fertilizers Ltd. Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths
-
Total income 3663.25 3916.59 4229.32 5222.19 5164.4
Sales 3626.12 3889.45 4167.15 5062.05 5068.5
Income from financial services 17.49 4.47 31.29 50 32.33
Growth (%)
Total income 3.33510107 6.91571692 7.98475204 23.4758779 -1.10662385
Total expenses 5.21002134 6.14903714 10.4716197 24.6785258 -4.6006158
PBDITA -12.8946559 26.1108257 -31.9925664 8.89795613 25.4236706
PAT -27.6614256 51.2886598 -38.3021011 -10.2991256 75.9798892
Net worth 6.83879793 9.69079095 2.6941652 4.47761194 7.57734412
Total assets 8.49309146 10.6445308 13.4954116 -5.23520793 4.96724249
National Fertilizers Ltd. Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths
-
Total income 3663.25 3916.59 4229.32 5222.19 5164.4
Sales 3626.12 3889.45 4167.15 5062.05 5068.5
Industrial sales 3618.2 3880.17 4151.41 5048.39 4903.35
Income from non-financial services 7.92 9.28 15.74 13.66 165.15
Income from financial services 17.49 4.47 31.29 50 32.33
Interest 17.49 4.44 31.24 50 30.61
Dividends 0 0 0 0 0
Treasury operations 0 0.03 0.05 0 1.72
Other income 11.1 10.38 10.18 14.97 10.88
Prior period income & extraordinary income 8.54 12.29 20.7 95.17 52.69
Change in stock -21.42 1.72 13.41 29.58 -75.71
Prior period & extraordinary expenses 1.7 0.69 0.37 2.13 0.13
Interest paid 7.74 16.73 16.64 40.89 10.96
Financial charges on instruments 0 0 0 0 0
Expenses incurred on raising deposits/debts 0 0 0 0 0
Depreciation 124.51 106.86 89.15 96.41 93.75
Brief profile
SPIC brand is well accepted today by farmers across the country. SPIC's multichannel
network has 2200 retail outlets in South India. It's current annual production capacity is
about 6.20lakh MT of UREA, 3.10lakh MT of DAP,2.40 lakh MT of NPK (20:20:0:13)
and 1 lakh MT of SSP. SPIC plays a significant role to enhance agricultural productivity
and profitability of millions of farmers through training program and comprehensive soil
health services.
Products
SPIC Urea
Single stream urea plant, with a rated capacity of 6,20,400 MTPA. Main raw materials
for the production of UREA are Ammonia and Carbon Dioxide for which the feedstocks
are Naphtha and fuel oil.
Product Description
Product Applications
In processing of cotton and textile mills and also used as a raw material for
chemical products, dyes and pharmaceuticals.
Could be used as cattle feed.
SPIC DAP
Two stream DAP plant, with a total rated capacity of 6,06,100 MTPA. Main raw
materials for the production of DAP are Sulfur & Rock Phosphate.
Product Description
Product Applications
SPIC brings about its versatile version of Single Super Phosphate called the “S P I C S U
P E R”
Product Applications
SSP helps to treat Sulphur deficiency in soils (40% of Indian soils are Sulphur
deficient). Continuous application of SSP reclaims Alkali soils.
Improves root formation and ensures quality product output.
Field promotion
SPIC’S field campaigns educate farmers in the latest agricultural trends and in making
the best use of limited resources using a mix of fertilizer, technology and organic and
inorganic inputs..
To uplift the farmers and to increase their knowledge base Intensive Farmer Contact
Program (IFCP), Village Level Meeting (VLM), field demonstration, DAP workshops,
soil testing campaigns, seminars, fertilizer festival and AV van campaigns are conducted.
To reach all the farmers mass media publicity, ad films in rural theaters and television,
participation rural festivals, shandy display, rural sports are carried out.
Exclusive service programme like farm advisory service are done to diagnose nutrient
deficiency by organizing soil testing and fertilizer recommendation campaigns.
Soil Management
SPIC’s soil testing laboratory at Tuticorin analyzes Macro and Micronutrients, organic
carbon, soil texture etc. Apart from analysis of soil irrigation water and leaf analysis are
also carried out.
After analysis farmers are advised about corrective steps to be taken to reclaim the
problematic soils.
An exclusive programme for SOIL HEALTH is in operation. Farmers are given soil
health cards and advises are given on soil management for continuous five years.
Our mobile soil testing van drives into the rural interiors to help small farmers to get their
soils analysed and get recommendations on the spot.
Agri Clinic
20 Backward villages around Tuticorin are adapted and given special attention for
development.
Tissue culture
The market leader in tissue culture bananas, SPIC produces all major varieties--Robusta,
G-9, Red Banana,and Nendran.
Corporate governance
SPIC Limited is conscious that a business run on principles of fairness, transparency and
accountability aids in fostering a healthy relationship with all stakeholders. SPIC
considers ethical conduct of business as one of the most important factors which will
contribute to fulfilment of the company’s corporate objectives.
SPIC’s code of conduct envisages that every member of the board of directors,
individually and, the board of directors, collectively, will, at all times, pursue and uphold
ethical standards and values as vigorously as their pursuit of the company’s business
objectives. In line with these principles, the board of directors of the company has
adopted this code as a guide to the high ethical standards and values expected from its
members.
Corporate citizenship
SPIC strives to build mutually beneficial, interactive and trusting relationships between
the company and its many stakeholders—employees, customers, communities, suppliers,
governments and investors.
Executive Summary
Southern Petrochemical Inds. Corpn. Ltd. Sep 2006 Mar 2008 Mar 2009 Mar 2010
Rs. Crore (Non-Annualised) 18 mths 18 mths 12 mths 12 mths
-
Total income 3393.52 1593.15 453.67 812.1
Sales 3333.76 1511.78 405.29 427.87
Income from financial services 32.26 49.16 30.94 132.45
Growth (%)
Total income 3.00252316 -39.5952854 -57.2855663 79.006767
Total expenses 11.08539 -30.8604883 -20.4336092 -21.227513
PBDITA
PAT
Net worth 284.213828
Total assets -6.3526588 -6.10998965 -12.3259907 -26.1796558
Southern Petrochemical Inds. Corpn. Ltd. Sep 2006 Mar 2008 Mar 2009 Mar 2010
Rs. Crore (Non-Annualised) 18 mths 18 mths 12 mths 12 mths
-
Total income 3393.52 1593.15 453.67 812.1
Sales 3333.76 1511.78 405.29 427.87
Industrial sales 3321.95 1507.26 405.29 427.87
Income from non-financial services 11.81 4.52 0 0
Income from financial services 32.26 49.16 30.94 132.45
Interest 1.67 2.77 20.7 8.3
Dividends 30.41 21.43 8.8 8.83
Treasury operations 0.18 24.96 1.44 115.32
Other income 27.5 31.78 16.46 14.13
Prior period income & extraordinary income 0 0.43 0.98 237.65
Change in stock 5.36 18.72 -5.21 -26.32
Company Background
The erstwhile Fertilizer Corporation of India was reorganized to form Rashtriya Chemicals and Fertilizers Ltd in the year
1978. RCF's ownership lies with Central Government, Commercial Enterprises group.
RCF is into the business of manufacturing and marketing of fertilizers and industrial chemicals. It produces Nitrogenous,
Phosphatic and Potash fertilizers and sells them under the brand names Ujjawal urea, Suphala, Sujala, Microla, Biola. The
range of its industrial chemicals include Methanol, Sodium Nitrate, Sodium Nitrite, Ammonium bicarbonate, Methylamines
Dimethyl Formamide, Dimethylacetamide. Fertilizers account for 80 percent and industrial chemicals for 20 percent of its
turnover. RCF finds major market for its products in Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Tamil Nadu, U.P and
Bihar.
RCF has 20 operating plants at Trombay unit, Mumbai and 5 at Thal Fertilizer unit, Raigarh. RCF has a good marketing
network with its dealers covering all major states in the country for fertilizer marketing. The Industrial Products Division of
RCF is exclusively responsible for the marketing of industrial chemicals manufactured by the company. RCF's industrial
products are readily available for exports also.
RCF as a corporate body and Government of India undertaking is responsible to the
people of India, the Government as owner, Government as Government, Consumers,
Employees, the Society at large and Posterity. The company is simultaneously
accountable to all these agencies who have a stake in it's successful operation, growth and
welfare.
Keeping these aspects in view, RCF has set for itself the following corporate goals -
RCF produces two grades of complex fertilizers at its Trombay unit. They are commonly
known as “Suphala”, which has almost become a generic name for NP/NPK complexes
in the farming households of the country. It is concentrated fertilizer containing the plant
nutrients in chemical combinations which reduces the cost of application, transportation,
handling and storage. Suphala leaves a residual effect in the soil which is beneficial to all
crops.
RCF’s Ujjwala urea is a chemical fertilizer produced in white round prill form containing
46% nitrogen. It is 100% water soluble and is suitable for any type of soil or crop. It can
be applied through sowing, broadcasting or spraying. Ujjwala urea should be applied to
different crops in two to three split doses.
Biola (PSB)
This multifaceted bio-fertilizer solublizes the fixed phosphorus in the soil and makes it
available to the crops. Bacteria multiply very fast in the soil and this helps to improve the
texture and structure of the soil. This also helps to enhance the growth of the crops and
also induces resistance against various pests and diseases.
Microla (Micronutrients)
Over a period of years, we have been cultivating different crops in the field which has
resulted in the depletion of essential micro-nutrients in the soil. This has in turn affected
the productivity of the soil. This fact has also been validated in the soil analysis reports
drawn over a period of time indicating that the micronutrients in the soils are on the
decline, resulting in lowering the quality and yields of the crops.
Sujala 19:19:19
Rashtriya Chemicals & Fertilizers Ltd, manufactures 100% water soluble fertilizers
containing all the three major plant nutrients i.e. Nitrogen, Phosphorus and Potash for
crops grown in green houses as well as other field crops. Sujala is available in two forms
Foliar grade and drip grade.
Farmers Training
The adoption of Agricultural technology for increasing crop yield and land productivity is
greatly facilitated by training and adequate dissemination of knowledge. RCF sought to
bridge the gap between Research Scientist and the farmer by by setting up dedicated
training facilities at Nagpur and Thal.
The programmes are designed to cover both general aspects as well as region specific
aspects of farming technology. In addition, means of supplementing farm income through
subsidiary occupation as well as the upcoming technologies of food processing are also
discussed. These institutes are equipped with the latest audio-visual aids, classrooms and
also hostels providing residential accommodation to the farmers.
Soil testing helps diagnose soil health and evolve soil specific and crop specific solutions.
It helps to identify problematic soils, their nutritional status, texture and structure. Based
on the analysis, farmers are advised on soil fertility management through rational use of
manure, fertilizers and amendments to make agriculture more productive and sustainable.
Soil testing becomes indispensable to assure national food security, nutritional security,
maintenance of soil health, enhancement of soil fertility and to leave a good heritage for
the future generations.
Recognizing this paramount need, RCF has established six static soil testing laboratories
since 1967 and three mobile testing vans. Soil testing reports(or Soil Health Cards) are
mailed directly to farmers after analysis. This enables farmers to make informed
decisions about soil health management and maintenance depending on the crop to be
sown.
Soil testing reports(or Soil Health Cards) are mailed directly to farmers after analysis.
This enables farmers to make informed decisions about soil health management and
maintenance depending on the crop to be sown.
Rashtriya Chemicals & Fertilizers Ltd. Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths
-
Total income 3212.23 3662.33 5354.83 8574.71 6015.54
Sales 3129.55 3592.67 5266.58 8487.92 5733.05
Income from financial services 31.7 27.99 27.09 46.77 159.04
Growth (%)
Total income 9.99017281 14.0120726 46.2137492 60.130387 -29.8455575
Total expenses 9.27925362 27.1441908 38.2046931 49.7828834 -28.7043234
PBDITA 3.4285126 22.4673989 7.75712583 32.6745619 -0.15350794
PAT 4.96594779 0.52716951 6.32647573 33.7843819 11.0076567
Net worth 7.08499158 6.30187293 6.22400332 8.78377499 9.84920056
Total assets 14.9516851 21.1863996 19.0728135 35.3523037 -5.82449966
Rashtriya Chemicals & Fertilizers Ltd. Mar 2006 Mar 2007 Mar 2008 Mar 2009
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths
-
Total income 3212.23 3662.33 5354.83 8574.71
Sales 3129.55 3592.67 5266.58 8487.92
Industrial sales 2992.99 3412.86 4345.79 7330
Income from non-financial services 136.56 179.81 920.79 1157.92
Income from financial services 31.7 27.99 27.09 46.77
Interest 15.62 1.29 6.93 35.74
Dividends 0.04 0.05 0.06 1
Treasury operations 4.75 15.36 8.81 0.73
Other income 38.97 24.91 38.93 31.8
Prior period income & extraordinary income 12.01 16.76 22.23 8.22
Change in stock -32.94 340.57 129.95 -384.75
The Indian fertilizer industry has come a long way since the setting up of the
manufacturing unit of Single Super phosphate (SSP) near Chennai in 1906 A new
impetus to the growth of Indian Fertilizer industry was provided by the set up the two
fertilizer plants- Fertilizer & Chemicals Travancore of India Ltd. (FACT) in Kerala and
the Fertilizers Corporation of India (FCI) in Bihar. This was during the forties and the
fifties.
The aim was to create an industrial base that would provide India with self reliability in
food grains.
India witnessed significant growth of the fertilizer industry during the sixties and the
seventies. By 2003, India had an installed capacity of 12.11 million MT of nitrogen and
5.36 million MT of phosphate. Today, with 57 large sized fertilizer plants manufacturing
a wide variety of the nitrogenous, complex and phosphatic fertilizers, the Indian fertilizer
industry is the 3rd largest producer in the world.
One of the major factors that have led to the rapid increase in the production capacity of
fertilizers in India is the policy environment. With the formulation and implementation of
investor friendly policies, large investments poured into the private, public and co-
operative sectors and this propelled the growth of the Indian fertilizer industry.
Reports showed the total installed capacity of fertilizer production in 2004 to be 119.60
LMT of nitrogen and 53.60 LMT of phosphate. These figures went up to 120.61 LMT of
nitrogen and 56.59 LMT of phosphate in 2007. The production of fertilizers was 113.54
LMT of nitrogen and 42.21 LMT of phosphate during 2005-06.
The target of production for 2006-07 was set at 114.48 LMT of nitrogen and 48.20 LMT
of phosphate. Though the target production was not met, there was a growth in
production during 2006-07 as compared to the production during 2005-06.
Establishing joint venture projects with companies in countries that abound in cheaper
resources of raw materials.
In order to meet the demand for gas, which is one of the prime requirements for the
production of nitrogenous fertilizers, India has entered into joint ventures with foreign
companies in a number of countries.
Joint ventures have also been established for the supply of phosphoric acid. Indian
fertilizer manufacturing companies has joined hands with companies in Senegal, Oman,
Jordan, Morocco, Egypt, Tunisia and other countries.
It is, therefore, evident that the Indian fertilizer industry has witnessed extensive growth
and development in a short span of time. With such extensive growth, it is not surprising
that the India ranks among the leading fertilizer manufacturing countries of the world.
Government policies and Indian fertilizer industry share a direct nexus, with pricing
mechanisms, productive growth and subsidies forming the crux of the economic
objectives of the government. The government policies for the fertilizer industry are
devised to ensure a sustainable growth and development path in one of the most intensive
sectors of the Indian economy.
Growth, production and usage of the fertilizer industry are directly dependent on the
government policies. Production of food grain in India derives the main stimulus for its
growth from the fertilizer industry.
The government has intervened time and again in determining the prices, movement and
distribution of the fertilizers and its successful policies have pitted India as the third
largest consumer and producer of the agro-input in the world after China and the United
States.
The policies pursued by the government are devised in response to the recommendations
of the high-powered committees of the country. The Sivaraman Committee Report (1966)
highlighted the importance of the balanced use of fertilizers along with providing
adequate credit support for its distribution and usage. The committee also provided inputs
for realizing the importance of liberalization of fertilizer marketing that would promote
the production of the domestic companies.
The Retention Price Scheme introduced by the government followed the recommendation
of the Marathe Committee that explored the possibilities of maintaining the farm gate
prices of fertilizers. This would enable the government to maintain prices of the fertilizers
during the time of crisis.
The first decontrol policies of the government were introduced in 1992 on the
recommendations of the Joint Parliamentary Committee. Phosphatic and potassic
fertilizer industries were decontrolled by the government while urea industry continued to
produce under subsidized rates.
The complex fertilizer industries were subdivided onto two categories in 2001 after the
modification of the 1998 Tariff Commission. Group I comprised of imported ammonia or
industrial units using gas while Group II included industries using naphtha or fuel oil.
Concessions to the naphtha based units were more than the other group as this showed
lesser efficiency.
The growth trajectory of the Indian fertilizer industry has camouflaged the impending
challenges with which it is faced. Growth and development of agriculture in India derives
a significant stimulus from the fertilizer industry.
However, the robust growth in consumption propensity has not been met with the
required surge in fertilizer production. This has widened the gap between the demand and
supply of fertilizers, which has led to an increase in the dependence of the country on
imports. This also reflects on the lack of realizing of the domestic capacity utilization of
the reserves in the country.
Another important factor that has led to the stunted growth of the fertilizer industry is the
rise in prices of the feedstock. The fertilizer industry is dependent on gas for the
production of urea and phosphoric acid for the production of phosphatic fertilizers and
DAP. The country imports its inputs from other countries. The overseas suppliers of raw
materials realize the predicament of the Indian fertilizer industry and have started
exploiting the shortage through clever pricing.
In recent years, some of the private companies, dedicated to the production of fertilizers
have affectively taken stakes in the overseas sources of raw materials. Although this has
aided the industry, it has however been unable to reduce the government's burden of
subsidizing the rates. The fertilizer industry is remained protected under the umbrella of
the Retention pricing scheme of the Indian government.
The government has introduced policies to decontrol the prices but delayed the
implementation of the parameters that have not augured in favor of the industry. As a
result, fertilizer subsidies continue to mount and are expected to cross Rs. 50,000 crore in
the year 2008. The pricing of the fertilizers are also dependent on the freight charges that
are Baltic dry index.
The small size of the older plants and the low efficiency of the public sectors also pose as
drawbacks of the industry. Recent policies of the government are directed towards
revamping of these industries and restoring them to health.
The fertilizer industry is faced with other challenges inter alia infrastructural bottlenecks
and the uncertainties in government policies. The delay in decision making and obscurity
in setting parameters are among some of the major drawbacks of the government policies
directed towards the industry.
To retrieve the health and growth of the fertilizer industry, the government of India is in
need of long term realistic policies that would enable the industry to overcome the
challenges and survive the present impasse.
Concluding remarks on Indian Fertilizer Industry
The Indian fertilizer industry has helped in the growth of the Indian economy. The
fertilizer sector by enhancing the agricultural productivity has in turn resulted in
providing a major support to the farmers who are primarily dependent on agriculture.
Fertilizers have also played a pivotal role in India's food Security.
For the Indian government, food has been the primary objective owing to its huge
population. In India, therefore the fertilizer industry has wielded immense influence, like
no other sectors in India. To cater to the needs of the individual, government top priority
has been towards production of food grain.
Since the poor farmers could not afford to buy expensive fertilizing agents, the
government's interventionist policy helped in providing the farmers fertilizers at a
reasonable cost. The government formulated the Retention Price-Cum Subsidy scheme
which has been a major impetus for the fertilizing industry since 1977 to 1992.
Today, India stands as the third largest fertilizer consumer and producer of the world. It
has been observed that the subsidies on Indian fertilizer have been rising at constant rate.
This is due to the rise in the cost of production and the inability of the government to
raise the maximum retail price of the fertilizers. The population of the country is rapidly
increasing at 1.5% annually.
This requires higher production of food grains. The total cropped area is only 30% of the
net geographical area, which is not enough for increasing the agricultural productivity.
Now, the main focus is on the improvement of the farm income, for which the fertilizer
industry needs to lay more stress on the agricultural activities in the country. This will
also help to improve terms between the government agencies and the fertilizer industry in
India.
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