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115
CHAPTER - IV
PROFILE OF SELECTED FERTILIZER
COMPANIES IN GUJARAT
4.1 GUJARAT STATE FERTILIZERS AND
CHEMICALS LIMITED
4.2 GUJARAT NARMADA VALLEY FERTILIZERS
AND CHEMICALS LIMITED
4.3 INDIAN FARMERS FERTILIZER CO-OPERATIVE
LIMITED
4.4 KRISHAK BHARTI CO-OPERATIVE LIMITED
���� References
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���� HISTORICAL BACKGROUND
The Birth of A Giant (1962-1972)
GSFC was incorporated in 1962 and its plants went into
production of fertilizers in 1967. In its very first decade of existence,
GSFC became known for its path-breaking achievements, to name a
few, it was the first industrial complex in the country set up in joint
sector, first company to set up fertilizer plants within a short span of two
years of getting requisite approvals, it was the first industrial project to
secure direct and active equity participation of farmers, the first fertilizer
unit FFto get assistance from IDBI's Assistance Fund, and the first
Company to adopt the Steam Naphtha Reforming process for
manufacture of Ammonia.
GSFC has set up the first DAP fertilizer complex in India at Sikka,
Jamnagar on the west coast of Gujarat. Its technical edge as well as
engineering resources acquired during its very first decade has been
catalysts in providing impetus to its expansion and diversification
strategies spread over the next four decades.
New Frontiers of Diversification (1972-2002)
Originally conceived and started as a Fertilizer company with an
objective of providing agricultural boost to the farmers in the State of
Gujarat and at the same time making Gujarat self-sufficient in fertilizers.
Visualizing the market pulse well in time, the Company, as a structured
diversification strategy, ventured into the foray of industrial chemicals
segment. Having this objective in mind, Company's integrated complex
at Vadodara has been so designed and structured that it shall be more
or less self sustained by using the by-products generated by its fertilizer
group of plants.
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GSFC was the first Company in India to establish a Caprolactam
plant in the year 1974. This was the apt time when Caprolactam was in
great demand mainly for the manufacture of downstream products like
nylon yarn, tyre cord etc. As a way forward, it led to expansion into
Nylon-6 production. GSFC was also the first to recover Argon gas from
purge gas, thus entering into the foray of industrial gases by making
Argon gas which is prominently used in welding and this was done way
back in the year 1981.
GSFC also has to its credit of setting up India's first Melamine
plant. The expansion and diversification of GSFC's product portfolio
unfolded new growth vistas to the nation by providing much needed
fertilizers for agricultural growth and the chemicals for industrial growth.
An Impressive Growth Story (2002-2014)
It is rightly said that you need to take one step backwards if you
want to stride forward and this adage equally applied to GSFC and the
phase between 1999-2002 was a phase of one step backwards which in
fact facilitated endless strides forward. GSFC never ever then looked
back. The period between 1999 to 2001 was a phase where it was
veering on the brink of a cash crunch. This phase of GSFC was
attributed to many reasons. To name a few are increased energy costs,
technical hiccups and delayed commissioning of new Ammonia plant
after a gestation period of eight years and resultant increased project
cost, excess outflow of interest etc. This new Ammonia plant continued
with technical snags which could stabilize only by end of 2003. The
liquidity problems further compounded due to expansion of DAP
capacity at Sikka (1999-2003) which required infusion of Rs. 180
Crores. The Government of India also recovered subsidy amounting to
Rs. 375 Crores. The drought during this period further depressed prices
and demand for all products. There was also a shortage of gas that
resulted into use of costly LSHS and Naphtha. The margins in
Melamine and Caprolactam, GSFC's blue chip products, were low in
this period due to depressed industrial demand internationally.
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The turnaround story of the Company began from FY 2003-2004.
Under able leadership and timely intervention of Hon. Chief Minister
Shri Narendra Modi in taking certain bold policy decisions, the company
could work on the strategies to enhance its productivity, bring down
costs through technical innovations and improved management
information systems. The revival measures were fully supported by
Govt. of Gujarat and the Company was given complete autonomy to roll
back to the track. Finally the major factors that brought company out of
red were improvement in the Operational Efficiency, Reducing Cost of
Sales, Regenerating Confidence in Suppliers & Customers, Moral
boosting of employees, strategizing foray in the global market,
consolidating through further Expansions, focusing on ideal product mix
to insulate performance from downtrends etc.
Govt. of Gujarat provided the proactive support to GSFC, which
brought out a scheme of deferred sales tax of an amount up to Rs. 45
Crores per year for five years, thus improving the Company's cash flow
position. Another important breakthrough was the increased availability
of natural gas in Gujarat, from GAIL, GSPC and Gujarat Gas, which
substituted costly Naphtha and LSHS.
All these measures finally resulted into GSFC becoming a
financially strong, profitable and stable Company. Coming out of
Corporate Debt Restructuring (CDR), GSFC approached the CDR Cell,
this time to accelerate the debt repayment. The debt, which was
scheduled to be completely paid by 2013, was re-paid in 2006. As a
step towards backward integration as well as a part of global trotting for
feed-stocks has participated in a joint venture in Tunisia viz. Tunisian
Indian Fertilizers S.A. (TIFFERT), this would ensure the consistent
supply 1, 80,000 TPA of additional Phosphoric Acid per annum required
for the production of DAP. GSFC has also acquired a strategic stake in
M/s Karnalyte Resources Incorporation in Canada. This secures
availability of Potash for the Company in long run.
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The Company during the period of past half decade has entered
the Second Green Revolution phase by developing alternative energy
generation facilities and initiating the spread of drip irrigation systems in
Gujarat. The Company has provided valuable services to farmers by
way of agricultural inputs and marketing support. Entering the second
green revolution, GSFC continued its role of encouraging agricultural
growth by developing and supplying Bio-Fertilizers and Bio-technology
products to the farmers under one roof. The Company has also
advanced Tissue Culture facilities to support horticulture and other
crops. In order to provide farmers with high-tech inputs, GSFC has
formed 100% subsidiary GSFC Agrotech Limited for research and
production of liquid bio-fertilizers, Plant Growth Promoters-Sardar Amin
Granules/liquid, Tissue culture and Seeds.
GSFC also promoted Gujarat Green Revolution Company Limited
(GGRC) to promote drip-irrigation and sprinkler irrigation systems
amongst farmers so as to optimize the usage of water and
implementation/monitoring the Government subsidy scheme in co-
ordination with GSFC. GSFC is also contemplating an investment outlay
of approx. Rs. 8,000 Crores for setting up an integrated fertilizer and
petrochemicals complex at Dahej.
���� VISION AND MISSION
Vision
GSFC’s vision is to efficiently produce an array of valuable,
superior and reliable products that enrich lives of millions in farms,
industries and homes. The Company envisions operating in synergy
with its environment and seeks to be recognized as an enterprise that is
for total customer satisfaction and creates credible long term value for
its stakeholders. Integrity and transparency remains the corner-stones
of Company's governance.
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Mission
GSFC’s mission of becoming a world-class, multi-product, eco-
friendly global company contributing to the nation as well as for the
welfare of society at large.
The Company seeks to enrich lives;
� Of customers by providing goods and services that add value to farm
enterprises, industries and homes.
� Of stakeholders by continuously adding value by managing
responsibly, sensibly and maintaining ethical standards of highest
quality.
� Of neighborhood community by working in synergy with its
environment and enriching the bio-diversity.
� Of employees by providing them a work environment that fosters
growth, learning, achievement, team work and a perfect work-life
balance.
���� MILESTONES AND ACHIEVEMENTS
The major achievements of the company during the able
leadership of Shri Narendra Modi, as Chief Minister can be summarized
as under:
���� GSFC could achieve consistent profitability record and it has
touched its highest profits during the period 2001-02 to 2012-13. Its
net profit touched ever highest level of Rs.759 Crores during 2011-
12 and the total profit after tax during 2001-02 to 2012-13 was
Rs.3594 Crores, as compared to total profit after tax of Rs. 1166
Crores earned during the period 1988-89 to 1999-2000.
���� Significantly, GSFC, which was under loss in the year 2001-02 and
2002-03 on account of various factors, not only turned around but
also earned its highest ever profit. Turn-over per share increased
from Rs.255/- to Rs.665/- per share.
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���� During this period, GSFC diversified into new chemicals like MEK-
Oxime and other raw materials such as Phosphoric Acid, Potassic
Acid, etc. It also diversified and increased significantly its Fertilizers
portfolio. Its Fertilizers manufacturing capacity today stands at 1.7
Million Tons. It also added significantly to its wind energy portfolio
which stands at over 150 MW. The total projects invested by GSFC
during the period of Hon’ble Chief Minister are Rs. 8340 Crores.
���� This performance of the company is brought out amply by
investments made by domestic institutional investors as well as
foreign institutional investors which stand at close to 40% of its total
paid up capital.
���� AWARDS
GSFC has won total 48 national and international awards during the
period from 2003-04 to 2014-15.
���� REGISTERED OFFICE
Address : Fertilizernagar - 391 750
District : Vadodara District
State : Gujarat
Pin Code : 391750
Telephone No. : 0265-2242451, 0265-2242651
Fax No. : 0265-2240966, 0265-2240119
Email : [email protected]
Internet : http://www.gsfclimited.com
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���� PLANT LOCATION
Factory/plant : Polymers Unit: Nandesari GIDC
Vadodara District, Gujarat – India.
Factory/plant : Sikka Unit: Moti Khawdi
Jamnagar, Gujarat – India.
Factory/plant : Fibre Unit: Kuwarda
Surat District, Gujarat – India.
Factory/plant : Vadodara Unit: Fertilizernagar
Vadodara District – 391750, Gujarat –
India.
���� PRODUCTS
���� Industrial Products
1. Anhydrous Ammonia
2. Argon Gas
3. Caprolactam
4. Melamine
5. Methanol
6. Methyl Ethyl Ketoxime
7. Nylon-6
8. Oleum
9. Sulphuric Acid
���� Fertilizer
1. Urea
2. Ammonium Sulphate
3. Di-Ammonium Phosphate
4. APS - 20:20:0:13
5. NPK - 12:32:16
6. NPK - 10_26_26
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7. Water Soluble Fertilizers
8. Micro Mix
9. Gypsum
���� Agro Products
1. Sardaramin Granules/Liquid
2. Bio-Fertilizers
3. Plant Tissue Culture
4. Seeds
5. Sardar Nirmal
���� Trading
1. Pesticides
2. Zinc-Sulphate
3. MOP
4. SSP
5. Magnesium Sulphate
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AT A GLANCE
Year of incorporation 15 Feb. 1962
Nature of industry Fertilizer
Type of organization Joint Sector
Size of industry Large Scale
Chairman & Managing Director Dr. S K Nanda, IAS
Email address [email protected]
Name of website www.gsfclimited.com
Nature of activity Manufacturing, Sales & Export of
Fertilizers
Company secretary CS V. V. VACHHRAJANI
Auditors M/s. Deloitte Haskins & Sells,
Vadodara
Bankers Bank of Baroda
Central Bank of India
Bank of India
Dena Bank
Indian Bank
Vijaya Bank
Yes Bank Ltd.
State Bank of India
Indian Overseas Bank
Axis Bank Ltd.
ICICI Bank Ltd.
Royal Bank of Scotland N.V.
Registrar and share transfer
agent
M C S Ltd. 88, Neelam Apartments
Samptrao Colony, Above Chhappan
Bhog Vadodra – 390007. Gujarat
Total Awards 48 National and International
Financial data of the year 2013-14
Turnover (including other
income)
5586.03 Crores
Total Expenditure 4900.16 Crores
Profit before tax 495.42 Crores
Profit after tax 342.17 Crores
Earnings per share 8.59 Rs.
Listing on stock exchanges The Stock Exchange, Mumbai, National
Stock Exchange of India Ltd.
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���� HISTORICAL BACKGROUND
1976
The Company was incorporated on 10th May, in Bharuch,
Gujarat. The Company was promoted by Government of Gujarat and
Gujarat State Fertilizers Co., Ltd. (GSFC). The Company Manufacture
chemical fertilizers, particularly ammonia and urea and petrochemicals.
Contracts were entered into by GSFC and were transferred in the name
of the Company; (i) with Texaco Development Corporation, U.S.A.
(Texaco) for synthesis gas generation process; (ii) with Haldor Topsoe,
Denmark (Topsoe) for ammonia synthesis process; (iii) with Linde
Aktiengesellschaft, West Germany (Linde) for Ractisol wash process
and (iv) with Snamprogetti, Italy for know-how and license agreement
with Linde which was subsequently transferred in the name of the
Company.
GSFC entered into a supply and engineering contract with Linde
which was subsequently transferred in the name of the Company.
Under this agreement, Linde was to supply all the imported equipments
to the Company for its ammonia plant. GSFC entered into know-how
agreement, supply agreement and engineering agreement with
Snamprogetti, Italy for the urea plant. These agreements were
subsequently transferred in the name of the Company.
1986
Agreements were entered into with Toyo Engineering Corporation
of Japan, for the acquisition of technical know-how, basic engineering
and imported equipments, etc for this expansion. A letter of intent was
received for the manufacture of 10,000 tonnes per year of formic acid.
An EPABX project with a capacity to manufacture 20,000 lines of digital
electronic automatic exchange with C-dot technology was
commissioned at Roopnagar, Valia. The Company undertook to
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produce an enhanced model i.e. V - III system of EPABX. The
Memorandum of Understanding for the project was signed with Mozak
International Inc., and a new Company in the name of `Emirates
Narmada Industries p.l.c.' was registered in U.K.
1997
The Company undertook to expand the plant's capacity by putting
up a new plant of 100 million tonnes per day capacity with an
investment of Rs 32 crores. The Company undertook to set up a third
gasifier train to augment ammonia capacity by addition of 20,000 MTA
of additional ammonia at a cost of Rs 50 crores. The Gujarat Narmada
Valley Fertilisers Company (GNFC) is seriously contemplating
withdrawal from Videocon Narmada Electronics Limited, GNFC's joint
venture with the Videocon group.
The company has an installed capacity of 17 lakh glass shells for
colour picture tubes. CRT displays and monitors and 2.5 lakh glass
parts (panels and funnels) and glass bulbs for black and white television
picture tubes and monochrome monitor tubes. The joint venture
between Videocon and GNFC manufactured only 2.9 lakh glass shells
(panels and funnels) for colour picture tubes during the last financial
year (1994-95) as against the installed capacity of 17 lakh shells and
there was no production of glass parts (panels and funnels) for black
and white television picture tubes.
Gujarat Narmada Valley Fertilisers Company Ltd (GNFC),
Bharuch, engaged in the manufacture of chemical fertilisers viz
Narmada Urea, Phos and CAN, chemicals of like acetic acid, formic
acid, methanol, nitric acid and electronics products such as printed
circuit boards and digital switching systems, has reported encouraging
performance for the year 1996-97. GNFC has signed an agreement with
Plinke for technology and supply of equipment. Gujarat Narmada Valley
Fertilizers Company (GNFC) has entered into an agreement with Plinke
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of Germany to set up a 33,000 tpa concentrated nitric acid plant at its
Bharuch complex in Gujarat. The total capacity will now be doubled to
66,000 tpa.
The Bharuch-based Rs 1,200 crore Gujarat Narmada Valley
Fertiliser Co Ltd (GNFC), market leader in acetic acid, methanol and
formic acid, is doubling its acetic acid production capacity from 50,000
to one lakh tonnes per annum (TPA) in technical collaboration with B P
Chemicals of the UK. Its subsidiary company, Narmada Chematur
Petrochemicals Ltd (NCPL), has successfully commissioned 20,000
million tonnes per annum (mtpa) aniline plant operating at more than
100 per cent capacity.
2002
Gujarat Narmada Valley Fertilizer Company Ltd (GNFC) has
informed that Shri R C Sharma has ceased to be a Director of the
Company wef January 16, 2002 vide his resignation. Gujarat Narmada
Valley Fertilizers Company Ltd has informed that consequent upon the
retirement of Shri A D Desai from the services of Government of Gujarat
(GOG) upon attaining the age of superannuation, GOG has withdrawn
his nomination from the Board of the company. As such he ceased to
be the Director and Managing Director of the company. Shri Balwant
Singh, Director of the company has assumed the additional charge of
Managing Director with effect from October 31, 2002. He will be formally
appointed Managing Director of the company in due course.
Gujarat Narmada Valley Fertilizers Ltd has informed that
consequent upon the withdrawal of Nomination by Government of
Gujarat, Shri Pradipsinh Jadeja ceased to be a Non-rotational Director
as also the Chairman of the company with effect from November 21,
2002. Further, Shri G Subbarao has been nominated by Government of
Gujarat as Non-rotational Director on the Board of the company with
effect from November 22, 2002.
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2011
Gujarat Narmada Valley Fertilizers Company Ltd has 300 MTPD
Weak Nitric Acid-II Project of the Company has been completed at a
cost of about Rs. 262 Crores. WNA-II Project has started its operation.
Shri Atanu Chakraborty, IAS is appointed as Additional Director on the
Board of the Company.
2012
The Change of Name of the Company from Gujarat Narinada
Valley Fertilizers Company Limited to Gujarat Narmada Valley
Fertilizers & Chemicals Limited.
2013
Gujarat Narmada Valley Fertilizers & Chemicals Ltd has informed
that the Board of Directors of the Company have recommended a
Dividend of Rs. 3.50 per equity share of Rs.10/- each (@ 35%) to the
shareholders for the year ended March 31, 2013 Gujarat Narmada
Valley Fertilizers & Chemicals Ltd has informed that Dr Hasmukh Adhia,
IAS has been appointed as Additional Director on the Board of the
Company w.e.f. March 25, 2013.
2014
Gujarat Narmada Valley Fertilizers & Chemicals Ltd has informed
that 50,000 MTPA Toluene Di-lsocynate - II Project at Dahej established
by the Company has been completed and the commercial production
has been declared with effect from March 24, 2014. Gujarat Narmada
Valley Fertilizers & Chemicals Ltd has informed that the Board of
Directors of the Company recommended a Dividend of Rs.3.50 per
equity share of Rs.10/- each (@ 35%) to the shareholders for the year
ended March 31, 2014.
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���� VISION AND MISSION
Vision
To be a technology driven, environmentally responsible Joint
Sector Company manufacturing Fertilizers, Commodity and Speciality
Chemicals maintaining highest standards of operational excellence and
innovation for creating sustainable value for all stakeholders
Mission
We shall --
���� Be the leading provider of Chemicals and Agricultural inputs through
adoption of State of the Art Technologies and Business Processes.
���� Have a firm commitment to quality, environment, health and safety.
���� Enrich human resources and promote teamwork, innovativeness and
integrity.
���� Achieve sustainable economic growth based on corporate
excellence driven by ethical business practices, professionalism,
dynamism and social responsibility.
���� MILESTONES AND ACHIEVEMENTS
The major achievements of the company can be summarized below:
���� Set up the world's largest single stream, fuel oil based Ammonia -
Urea plant.
���� All fertilizers under the brand name of Narmada, along with
extensive support activities, have been well accepted by the
country's farmer community.
���� India's largest producer of Formic Acid, Acetic acid and Methanol.
���� India's only manufacturer of Glacial Acetic Acid through the cutting-
edge Methanol route.
���� India's largest single stream plant of Aniline.
���� The only manufacturer of Toluene Di-isocyanate in South East Asia.
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���� Record capacity utilizations in all plants, defying the vintage through
ingeniously innovative maintenance measures.
���� Development of the first indigenous, eco-friendly technology for H2S
removal, CATSOL, a much awarded product of the Company's R&D
labs.
���� AWARDS
GNFC has won total 23 national and international awards.
���� REGISTERED OFFICE
Address : Narmadanagar
District : Bharuch District
State : Gujarat
Pin Code : 392015
Telephone No. : +91 - 2642 - 247001, 247002
Fax No. : 02642-247084 02642-247057
Email : [email protected]
Internet : http://www.gnfc.in
���� PLANT LOCATION
Factory/plant : P. O. Narmadanagar
Bharuch District - 392015
Gujarat – India.
Factory/plant : GNFC INFOTOWER 3rd Floor,
Bodakdev, Gandhinagar - Sarkhej Highway
Ahmedabad - 380054
Gujarat – India.
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���� PRODUCTS
���� Fertilizers
1. Urea
2. Neem Urea
3. Calcium Ammonium Nitrate
4. Ammonium Nitrophosphate
5. Diammonium Phosphate
6. Muriate of Potash
7. Single Super Phosphate
���� Chemical
1. Methanol
2. Acetic Acid(Glacial)
3. Toluene Di - isocyanate
4. Aniline
5. Concentrated Nitric Acid
6. Weak Nitric Acid
7. Formic Acid
8. Ammonium Nitrate
9. Ethyl Acetate
10. Methyl Formate
11. Calcium Carbonate
12. Nitrobenzene
13. Catsol
14. Other Products
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AT A GLANCE
Year of incorporation 10 May 1976
Nature of industry Fertilizer
Type of organization Joint Sector
Size of industry Large Scale
Chairman Shri D. J. Pandian, IAS
Email address [email protected]
Name of website www.gnfc.in
Nature of activity Manufacturing, Sales & Export of
Fertilizers & Chemicals
Company secretary Shri R. B. Panchal
Auditors M/s. Deloitte Haskins & Sells
Bankers N.A.
Registrar and share transfer
agent
Guj Narmada Valley Fertilizers, P. O.
Narmadanagar, Dist Bharuch-392015
Total Awards 23 national and international
Financial data of the year 2013-14
Turnover (including other
income)
4847.19 Crores
Total Expenditure 4376.04 Crores
Profit before tax 423.83 Crores
Profit after tax 292.27 Crores
Earnings per share 18.81 Rs.
Listing on stock exchanges The Stock Exchange, Mumbai,
National Stock Exchange of India Ltd.
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���� HISTORICAL BACKGROUND
During mid- sixties the Co-operative sector in India was
responsible for distribution of 70 per cent of fertilizers consumed in the
country. This Sector had adequate infrastructure to distribute fertilizers
but had no production facilities of its own and hence dependent on
public/private Sectors for supplies. To overcome this lacuna and to
bridge the demand supply gap in the country, a new co-operative
society was conceived to specifically cater to the requirements of
farmers. It was a unique venture in which the farmers of the country
through their own Co-operative Societies created this new institution to
safeguard their interests. The numbers of Co-operative Societies
associated with IFFCO have risen from 57 in 1967 to 39,824 at present.
Indian Farmers Fertilizer Co-operative Limited (IFFCO) was
registered on November 3, 1967 as a Multi-unit Co-operative Society.
On the enactment of the Multistate Co-operative Societies act 1984 &
2002, the Society is deemed to be registered as a Multistate Co-
operative Society. The Society is primarily engaged in production and
distribution of fertilisers. The byelaws of the Society provide a broad
frame work for the activities of IFFCO as a Co-operative Society.
IFFCO commissioned an ammonia - urea complex at Kalol and
the NPK/DAP plant at Kandla both in the state of Gujarat in 1975.
Another ammonia - urea complex was set up at Phulpur in the state of
Uttar Pradesh in 1981. The ammonia - urea unit at Aonla was
commissioned in 1988.
In 1993, IFFCO had drawn up a major expansion programme of
all the four plants under overall aegis of IFFCO VISION 2000. The
expansion projects at Aonla, Kalol, Phulpur and Kandla were completed
on schedule. All the projects conceived as part of VISION 2000 had
been realised without time or cost overruns. All the production units of
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IFFCO have established a reputation for excellence and quality.
Another growth path was chalked out to realise newer dreams and
greater heights through Vision 2010. As part of this vision, IFFCO has
acquired fertiliser unit at Paradeep in Orissa in September 2005. As a
result of these expansion projects and acquisition, IFFCO's annual
capacity has been increased to 3.69 million tonnes of Urea and
NPK/DAP equivalent to 1.71 million tonnes. In pursuit of its growth and
development, IFFCO had embarked upon and successfully
implemented its Corporate Plans, ‘Mission 2005’ and ‘Vision 2010’.
These plans have resulted in IFFCO becoming one of the largest
producer and marketer of Chemical fertilisers by expansion of its
existing Units, setting up Joint Venture Companies Overseas and
Diversification into new Sectors.
IFFCO has now visualized a comprehensive plan titled ‘Vision-
2015’ which is presently under implementation.
IFFCO has made strategic investments in several joint ventures.
Indian Potash Ltd (IPL) in India, Industries Chimiques du Senegal (ICS)
in Senegal, Oman India Fertiliser Company (OMIFCO) in Oman and
Jordan India Fertiliser Company (JIFCO) are important fertiliser joint
ventures. As part of strategic diversification, IFFCO has entered into
several key sectors. IFFCO-Tokio General Insurance Ltd (ITGI) is a
foray into general insurance sector. Through ITGI, IFFCO has
formulated new services of benefit to farmers. 'Sankat Haran Bima
Yojana' provides free insurance cover to farmers along with each bag of
IFFCO fertiliser purchased. To take the benefits of emerging concepts
like agricultural commodity trading, IFFCO has taken equity in National
Commodity and Derivative Exchange (NCDEX) and National Collateral
Management Services Ltd (NCMSL). IFFCO Chattisgarh Power Ltd
(ICPL) which is under implementation is yet another foray to move into
core area of power. IFFCO is also behind several other companies with
the sole intention of benefitting farmers.
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The distribution of IFFCO's fertiliser is undertaken through over
39824 Co-operative Societies. The entire activities of Distribution, Sales
and Promotion are co-ordinate by Marketing Central Office (MKCO) 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 158 Farmers Service Centre (FSC). IFFCO
has promoted several institutions and organisations to work for the
welfare of farmers, strengthening co-operative movement, improve
Indian agriculture. Indian Farm Forestry Development Co-operative Ltd
(IFFDC), Co-operative Rural Development Trust (CORDET), IFFCO
Foundation, Kisan Sewa Trust belongs to this category. An ambitious
project 'ICT Initiatives for Farmers and Co-operatives' is launched to
promote e-culture in rural India. IFFCO obsessively nurtures its relations
with farmers and undertakes a large number of agricultural extension
activities for their benefit every year.
At IFFCO, the thirst for ever improving the services to farmers
and member co-operatives is insatiable, commitment to quality is
insurmountable and harnessing of mother earths' bounty to drive hunger
away from India in an ecologically sustainable manner is the prime
mission. All that IFFCO cherishes in exchange is an everlasting smile
on the face of Indian Farmer who forms the moving spirit behind this
mission.
IFFCO, to day, is a leading player in India's fertiliser industry and
is making substantial contribution to the efforts of Indian Government to
increase food grain production in the country.
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���� VISION AND MISSION
Vision
To augment the incremental incomes of farmers by helping them
to increase their crop productivity through balanced use of energy
efficient fertilizers, maintain the environmental health and to make co-
operative societies economically & democratically strong for
professionalized services to the farming community to ensure an
empowered rural India.
Mission
IFFCO's mission is "to enable Indian farmers to prosper through
timely supply of reliable, high quality agricultural inputs and services in
an environmentally sustainable manner and to undertake other activities
to improve their welfare."
���� To provide to farmers high quality fertilizers in right time and in
adequate quantities with an objective to increase crop productivity.
���� To make plants energy efficient and continually review various
schemes to conserve energy.
���� Commitment to health, safety, environment and forestry
development to enrich the quality of community life.
���� Commitment to social responsibilities for a strong social fabric.
���� To institutionalise core values and create a culture of team building,
empowerment and innovation which would help in incremental
growth of employees and enable achievement of strategic
objectives.
���� Foster a culture of trust, openness and mutual concern to make
working a stimulating and challenging experience for stake holders.
���� Building a value driven organisation with an improved and
responsive customer focus. A true commitment to transparency,
accountability and integrity in principle and practice.
140
���� To acquire, assimilate and adopt reliable, efficient and cost effective
technologies.
���� Sourcing raw materials for production of phosphatic fertilisers at
economical cost by entering into Joint Ventures outside India.
���� To ensure growth in core and non-core sectors.
���� A true Co-operative Society committed for fostering co-operative
movement in the country.
���� Emerging as a dynamic organisation, focusing on strategic
strengths, seizing opportunities for generating and building upon
past success, enhancing earnings to maximize the shareholders'
value.
���� AWARDS
IFFCO has won total 44 national and international awards.
���� REGISTERED OFFICE
Address : IFFCO Sadan,
C-1, District Centre,
Saket Place,
New Delhi - 110017
Telephone No. : 011-42592626, 26542625
Fax No. : 011-42592650
Email : [email protected]
Internet : http://www.iffco.in
���� PLANT LOCATION
Factory/plant : IFFCO, Kalol,
Kasturi Nagar,
Gandhi Nagar-382423,
Gujarat.
141
Factory/plant : IFFCO, Kandla Unit,
Post Box No.12,
Gandhidham - 370201,
Kandla (Kuchchh)
Gujarat.
Factory/plant : IFFCO,Phulpur,
P.O. - Ghiyanagar,
Allahabad - 212404
Uttar Pradesh-INDIA.
Factory/plant : IFFCO Aonla Unit,
Paul Pothen Nagar,
P.O. IFFCO Township,
Bareilly - 243403,
Uttar Pradesh-INDIA.
Factory/plant : IFFCO - Paradeep,
Village Musadia,
PO Paradeep
Dist Jagatsinghpur-754142
Orissa-INDIA.
���� PRODUCTS
1. Urea
2. NPK, NP
3. DAP
4. BIO Fertilisers
5. Water Soluble Fertliser
6. Zinc Sulphate Monohydrate
7. Sulphur Bentonite
142
AT A GLANCE
Year of Incorporation 3 Nov. 1967
Nature of industry Fertilizer
Type of organization Co-operative Sector
Size of industry Large Scale
Chairman Mr. Balvinder Singh Nakai
Email address [email protected]
Name of website www.iffco.in
Nature of activity Manufacturing, Sales & Export of
Fertilizers
Company secretary N.A
Auditors M/s. S.K. Mittal & Co.
M/s. S.P. Chopra & Co.
M/s. B.C. Jain & Co.
M/s. Arun Singh & Co.
M/s. V.K. Dhingra & Co.
Bankers Bank of Baroda
State Bank of India
Indian Overseas Bank
HDFC Bank Ltd.
ICICI Bank Ltd.
Standard Chartered Bank
IDBI Bank Ltd.
Punjab National Bank
Registrar and share transfer
agent
N.A
Total Awards 44 national and International
Financial data of the year 2013-14
Turnover (including other
income)
21,382.13 Crores
Total Expenditure 20,974.35 Crores
Profit before tax 407.78 Crores
Profit after tax 318.81 Crores
Earnings Per Share 748 Rs.
Listing on stock exchanges NO
144
���� HISTORICAL BACKGROUND
Krishak Bharati Co-operative Ltd (KRIBHCO) is a Multi-State Co-
operative Society deemed to be registered under the Multi-State Co-
operative Societies (MSCS) Act, 2002. The Government of India
through the Department of Fertilizers was a member of KRIBHCO but
its equity holding was reduced to NIL on 4th July 2013 under the
provisions of the MSCS Act 2002. KRIBHCO is not owned nor
controlled nor financed by the Government of India / Any State
Governments.
KRIBHCO has setup a Fertilizer Complex to manufacture Urea,
Ammonia & Bio-fertilizers at Hazira in the State of Gujarat, on the bank
of river Tapti, 15 Kms from Surat city on Surat – Hazira State Highway.
Late Smt. Indira Gandhi, former Prime Minister of India laid the
Foundation Stone on February 5, 1982. KRIBHCO was incorporated on
17th April 1980 as a national level Multi State Co-operative Society to
implement first gas based “state-of-the-art” high capacity Fertilizer
Complex consisting of 2 x 1350 MTPD Ammonia plants and 4 x 1100
MTPD Urea plants each with annual installed capacity of 8.91 Lakh MT
Ammonia and 14.52 lakh MT of Urea at Hazira District-Surat, Gujarat,
India based on natural gas from Bombay High/ South Bassein. Hazira
fertilizer complex was commissioned in 1985 in record time with saving
of Rs. 90 crore in project cost.
In an endeavor to make constant improvements, KRIBHCO
implemented various schemes to enhance its capacity and improve the
energy consumption. Capacities of ammonia & urea plants were
reassessed to 2x1520 MTPD Ammonia and 4x 1310 MTPD Urea with
annual installed capacity of 10.03 Lakh MT ammonia and 17.29 lakh MT
of urea.
145
The Hazira Fertilizer Complex was subsequently revamped in
2013 to increase its production capacity by 4.65 LMTPA of Urea. After
the revamp, the rated capacity has been enhanced to 2x3325 MTPD
Urea (21.95 LMTPA) and 2 x 1890 MTPD Ammonia (12.47 LMTPA).
With this, the Hazira fertilizer complex has became largest single
location urea plant in India.
KRIBHCO has also made realignment in its corporate strategy
and internal operations revamping to meet the challenges in the
liberalized/globalized economy. As a part of above initiative, KRIBHCO
entered into overseas Joint Ventures, diversification into Power Sector,
Logistics Business, etc:
���� In 2005, KRIBHCO’s Joint Venture project with Oman Oil Company
came on stream in Sultanate of Oman. KRIBHCO holds 25% equity
in OMIFCO.
���� In 2006, KRIBHCO acquired Sahajanpur Fertiliser Complex through
its joint venture company KSFL. KRIBHCO holds 85% of the share in
the JV. KRIBHCO has management control and marketing rights of
total production.
���� KRIBHCO has diversified into power sector by investing in Gujarat
State Energy Generation (GSEG).
���� KRIBHCO incorporated Kribhco Infrastructure Limited, a 100%
subsidiary to venture into logistics business.
���� KRIBHCO holds 2.34% equity in Nagarjuna Oil Refinery Limited and
1.84% in Nagarjuna Fertilizers and Chemicals Ltd.
���� KRIBHCO holds 5% equity in Indian Commodity Exchange (ICEX).
146
���� VISION AND MISSION
Vision
To become a world class organization that represents the farmer
community and maximizes their returns through specialization in
agricultural inputs, rural need based products and other diversified
businesses that maximize stakeholders’ value.
Mission
To act as a catalyst to agricultural and rural development by
selecting, financing and managing projects that are both socially
desirable and commercially profitable.
���� To strengthen co-operative system.
���� To enhance the urea installed capacity and increasing its market
share.
���� To ensure optimum utilization of existing plant and machinery.
���� To diversify into other core sectors like Power, Port, Infrastructure,
Rural Retail, etc.
���� Transfer of technology for modern farming and improving farmers
livelihood.
���� To educate and train farmers, provide free testing facilities for soil
nutrients and irrigation water.
���� MILESTONES AND ACHIEVEMENTS
���� Dr. W.S.Guleria awarded Gold Medal by Indian Society of Agronomy
in recognition of his outstanding contribution to Agronomy.
���� Shri A.K.Singh awarded as Chief Information officer (CIO) of the
year -2014 by IT-NEXT.
���� The In-House Journal "Kribhco News" receives Award from PRSI in
its 35th All India Public Relations Conference.
147
���� REGISTERED OFFICE
Address : KRIBHCO Bhawan,
A-60, Kailash Colony
New Delhi - 110048, India
Telephone No. : 0120-2534631, 2534632
Fax No. : 0120-2537113
Email : [email protected]
Internet : http://www.kribhco.net
���� PLANT LOCATION
Factory/plant : KRIBHCO, Hajira
KRIBHCO Nagar
District-Surat
Gujarat.
���� PRODUCTS
1. Urea
2. Ammonia
3. Liquid Argon Gas
4. Bio-Fertilizers
5. Seeds
148
AT A GLANCE
Year of incorporation 17 April 1980
Nature of industry Fertilizer
Type of organization Co-operative Sector
Size of industry Large Scale
Chairman Shri Vaghjibhai Raghunathbhai Patel
Email address [email protected]
Name of website www.kribhco.net
Nature of activity Manufacturing, Sales & Export of
Fertilizers
Company secretary N.A
Auditors M/s. S.K. Mehta & Co.
M/s. G.K. Choksi & Co.
M/s. Chaturvedi & Co.
Bankers ICICI Bank Ltd.
Registrar and share transfer
agent
N.A
Financial data of the year 2013-14
Turnover (including other
income)
5264.35 Crores
Total Expenditure 5081.84 Crores
Profit before tax 182.50 Crores
Profit after tax 121.93 Crores
Earnings Per Shares N.A
Listing on stock exchanges NO
149
���� REFERENCES
1. Annual Reports of Gujarat State Fertilizers and Chemicals Limited
during the period from 2004-05 to 2013-14.
2. Annual Reports of Gujarat Narmada Valley Fertilizers and
Chemicals Limited during the period from 2004-05 to 2013-14.
3. Annual Reports of Indian Farmers Fertilizer Co-operative Limited
during the period from 2004-05 to 2013-14.
4. Annual Reports of Krishak Bharti Co-operative Limited during the
period from 2004-05 to 2013-14.
5. www.gsfclimited.com
6. www.gnfc.in
7. www.iffco.in
8. www.kribhco.net
9. www.moneycontrol.com
10. www.indiainfoline.com