Public Sector Companies in Indian Fertilizer Market

There are a number of public sector companies in Indian fertilizer market producing complex fertilizers, ammonium sulphate, DAP, calcium ammonium nitrate and urea. At present, there are nine public sector undertakings in the Indian fertilizer market and one cooperative society.

[br] These function under the supervision of the Department of Fertilizers of India. Of the 63 large units producing fertilizers in India, 9 units are dedicated to the production of ammonium sulphate and 38 units produce urea. There are 79 small and medium scale units dedicated to the production of single super phosphate. The Indian industries producing fertilizers have to total capacity of 56 lakh MT of phosphatic nutrient and 121 lakh MT of nitrogen.

Some of the public sector undertakings in this sector are mentioned below:

Fertilizer Corporation of India Limited (FCIL) – This Company was established on 1st January, 1961. It was later reorganized with the National Fertilizers Limited from 1978. FCI comprises of four units in Gorakhpur (Uttar Pradesh), Sindri (Jharkhand), Ramagundam (Andhra Pradesh) and Talcher (Orissa). The company incurred a loss of Rs. 1209.10 Crore during the financial year of 2004-2005.

[br]Hindustan Fertilizer Corporation Limited (HFC) – Established on 14th March, 1978, Hindustan Fertilizer Corporation Limited was incorporated consequent to the reorganization of the NFL Group of Companies and the Fertilizer Corporation of India Limited. The company has established four units at Durgapur (West Bengal), Namrup (Assam), Haldia (West Bengal) and Barauni (Bihar). It has incurred a net loss of 964.61 in the financial year 2005-2006.

Pyrites, Phosphates & Chemicals Limited – This Company was incorporated in the year 1960 to explore the pyrites deposits in India. Pyrites, Phosphates & Chemicals Limited has three units at Amjhore (Bihar), Dehradun (Uttaranchal) and Saladipura (Rajasthan). Pyrites, Phosphates & Chemicals Limited incurred a net loss of Rs. 113.91 in the year 2005-2006.

Rashtriya Chemicals and Fertilizers Limited (RCF) – This company was incorporated in the year 1978 consequently after the reorganization of the Fertilizer Corporation of India. The company has its units in Trombay and Thal. The net worth of the company in the year 2000-2001 was 1366 Crore.

National Fertilizers Limited (NFL) – This company was incorporated on 23rd August, 1974. It had two nitrogenous plants during its inception at Bathinda and Panipat. In the year 2005-06, NFL showed a post-tax profit of Rs. 116.40 Crore. It had produced 11447 tons of industrial nitrogen and 33.44 LMT of urea in the same year.

Projects &Development India Limited (PDIL) – PDIL was registered in the yea 1978 after the reorganization of the Fertilizer Corporation of India. The company earned a profit of Rs. 10.64 Crore in 2005-06. The company has played a pivotal role in the designing, procurement, inspection, engineering and supervision of the fertilizer companies and pants.

The Fertilizers and Chemicals Travancore Limited (FACT) – Incorporated in the year 1943, FACT is dedicated to the production of Ammonium Sulphate. The company has two established plants at Cochin. The company has earned a net profit of Rs. 235.66 Crore at the end of the financial year of 2006. This recovered the loss incurred in the previous year.

Madras Fertilizers Limited (MFL) – MFL was registered in the year 1966. The company has its plant in Chennai and is dedicated to the production of ammonia, complex and bio-fertilizers and urea. MFL utilized 76% of its capacity to produce 368.5 thousand tons of Urea in 2005-06. The company produced 208.2 thousand tons of complex fertilizers using 25% of its capacity.

FCI Aravali Gypsum & Minerals India Limited, Jodhpur – This Company was registered as a government undertaking consequent to the reorganization of the Jodhpur Mining Organization. FCI Aravali Gypsum & Minerals India Limited, Jodhpur produced 8.54 LMT of gypsum in the financial year of 2005-06.

Some of the other companies engaged in the production of fertilizers are listed below:

Paradeep Phosphates Limited (PPL)

Neyveli Lignite Corporation Ltd. (NLC)

Hindustan Copper Limited (HCL)

Steel Authority of India Limited (SAIL)