National Fertilizers Limited (NFL)

Introduction

NFL is a Schedule ‘A’ and Mini Ratna Company, which was incorporated on 23rd August, 1974 for setting up of two Nitrogenous fertilizer plants, based on gasification technology of Feed Stock / LSHS at Bathinda (Punjab) and Panipat (Haryana) having an installed capacity of 5.11 lakh tonnes of Urea each. The commercial production from these plants commenced w.e.f. 1.10.1979 & 1.9.1979 respectively. Consequent upon reorganization of FCI in April 1978, the Nangal unit (including Nangal expansion project) of FCI was transferred to NFL.

The Govt. of India, in 1984, entrusted the Company to execute the country’s first inland gas based fertilizer project of 7.26 lakh tonnes Urea capacity in District Guna of Madhya Pradesh and commercial production started from 01-07-1988. Expansion of Vijaipur Plant was taken up in the year 1993 for doubling its annual production capacity. The commercial production from Vijaipur Expansion Plant commenced with effect from 31.3.97. The Department of Fertilizer subsequently re-assessed the annual installed capacity of Vijaipur Plants from 7.26 lakh tonnes of Urea to 8.64 lakh tonnes (each) with effect from 1st April 2000. A revamp of Urea plant at Nangal for increasing the production from 3.30 lakh tonnes to 4.78 lakh tonnes per annum was under taken and commercial production commenced from 1st February 2001 raising the total present annual installed production capacity of Urea at NFL to 32.31 lakh tonnes (i.e. 14.86 lakh tonnes in terms of Nitrogen Fertilizer).

The Company also produces various Industrial Products, like Nitric Acid, Ammonium Nitrate, Sodium Nitrite, Sodium Nitrate, Sulphur, Methanol, Argon Gas, Liquid Nitrogen, Liquid Oxygen etc besides Biofertilizers. Bio-Fertilizers plant at Vijaipur produces three strains of Bio-Fertilizer namely PSB, Rhizobium & Azotobacter. Company has also started marketing of special fungus based bio-fertilizer “Mycorrhiza” under the brand name of ‘Kisan Mycorrhiza’

The value-added Neem Coated Urea developed by NFL & widely recognized for its effectiveness is being produced at its three units at Panipat, Bathinda & Vijaipur. NFL is the first company in India to be permitted by the Government of India to produce and market Neem Coated Urea.

The authorized capital of the company as on 31-03-2010 stood at 500 crore and the paid up capital at 490.58 crore, comprising Govt. of India share of 479 crore (97.64%) and remaining 11.58 crore (2.36%) held by financial institutions and others.

Modernization and Expansion Projects

The year 2009-10 was a landmark year for the Company. Consequent upon notification of remunerative investment policies by Government of India in Urea sector, the Company has undertaken a number of projects as follows:-

Revamp of fuel-oil based plants at Panipat, Bathinda & Nangal

Company has undertaken revamp of fuel-oil based plants at panipat, Bathinda & Nangal for change over of feedstock from FO/LSHS to NG/RLNG. Zero date of these projects has been fixed as 29th January 2010. These projects involve a total investment of 4066 crore and gestation period of 36 months from the zero date i.e. 29th January 2010. Contract for revamp of Panipat and Bathinda units has been signed with M/s Larson & Toubro (L&T) on 10th March 2010 and for Nangal unit with consortium of M/s Tecnimont ICB (TICB) on 12th May 2010. M/s Project & Development India Limited (PDIL) has been engaged as Project Management Consultant for all the projects.

Capacity Augmentation & Energy Saving Project (ESP) at Vijaipur

Company has undertaken Capacity augmentation of urea plants at Vijaipur-I & II by 16% and 23% respectively including installation of Carbon Dioxide Recovery plant at an investment of around 900 crore. The total urea capacity after completion of Energy Saving project at Vijaipur-I and Capacity Enhancement Project at Vijaipur-II is expected to be 6261 MTPD. Basic engineering for Ammonia-I, Ammonia-II, Urea-I and Urea-II has been completed. Procurement of equipment is in progress. The projects are expected to be commissioned by 2011-2012.

NFL in collaboration with M/s KRIBHCO & RCF has formed a joint venture company (JVC) named as “Uravarak Videsh Limited” 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. The Company’s Marketing Network comprises of Central Marketing Office at NOIDA, three Zonal Offices at Bhopal, Lucknow & Chandigarh, 16 State Offices and about 38 Area Offices spread across the country.

Production Performance

The Company, during 2009-10, produced 33.30 lakh tonnes of Urea (103.7% of installed capacity). The company achieved ever best production of 226 tonnes of Biofertilizers and 37648 tonnes of Neem Coated Urea. The percentage share of NFL in Urea production in the country has been estimated at 15.8%. Company has also started the production of foundation and certified seeds under a pilot project. During 2010-11 upto December the company produced 25.28 LMT of Urea utilizing 104.3% capacity.

Sales performance

The company, during 2009-10, sold 33.78 lakh tonnes of Urea. Company achieved ever best Bio-fertilizers sales of 196 tonnes. It also sold 3468 tonnes of seeds during the year. The sales turnover including subsidy for the year was 5091.34 crore. During the year, sales turnover for industrial products is 98.35 crore. The Company also sold Compost, Mycorhizza & seeds of the value of Rs.7.31 crore.

Financial Performance

The Company has achieved a profit before tax (PBT) of 259.91 crore during FY 2009- 10, 155.61 crore during FY 2008-09, 155.82 crore during FY 2007-08. The Company has achieved a profit before tax (PBT) of 163.46 crore during the current financial year i.e. 2010-11 (up to December 2010). Detailed statement is as follows:

2007-08 TO 2009-10 and 2010-11 (up to Dec.2010)
Particulars Amount Amount Amount Amount
  2007-08 2008-09 2009-10 2010-11(upto Dec.2010)
Gross margin 261.76 292.91 364.55 235.08
Less: Depreciation 89.30 96.41 93.75 65.98
Less: Interest 16.64 40.89 10.89 5.64
Profit before tax (PBT) 155.82 155.61 259.91 163.46
Less: Tax 47.17 58.15 88.40 51.68
Profit after tax 108.65 97.46 171.51 11.78

*Rs. in crore

Employment of SC/ST, Ex-Servicemen, Physically handicapped & Other Backward classes Persons (As on 30.9.2010)

The guidelines regarding reservation in Recruitment and Promotion for SC, ST, OBC, Ex-Servicemen and Physically Handicapped Persons (PHP) are followed.

Out of total strength of 4673, there are 1211 SCs, 285 STs, 322 OBCs, 81 Ex-Servicemen and 54 PHPs on the rolls of the Company.

MoU

NFL received the 9th consecutive “Excellent” MoU rating for the fiscal year 2008-09. The company is also expected to receive ‘Excellent’ rating for the year 2009-10. For the year 2010-11, the company has entered into MoU with DoF which is the 20th consecutive year of the signing.

Awards & Accolades

Company excelled in performance in various areas, which got recognition from various quarters during the year. The company has received the ninth consecutive “Excellent” MoU rating for the fiscal year 2008-09.

Vijaipur unit received “Green Tech safety award 2009” in Fertilizer sector from Green Tech Foundation, New Delhi. For best safety practices. Vijaipur unit has also been awarded cash prize of Rupees one lakh & Certificate of Honour during the year by Department of Commercial Tax, Government of Madhya Pradesh for Best Tax Payer for 2007-08. Vijaipur unit also received Second Award for Bio-Fertilizers in manufacturing sector for the year 2006-07 from National Productivity Council, New Delhi. Vijaipur unit & Panipat Unit also received National Safety Awards. Bathinda unit received First prize for achieving largest reduction in Accident Frequency Rate in Chemical Industry for the year 2009 from Punjab Industrial Safety Council, Chandigarh.

Public / Staff Grievance Redress Machinery

Based on the model grievance procedure notified by DPE, company has framed a ‘Grievance Redressal Procedure’ for employees of NFL. The objective of the Procedure is to provide easily accessible machinery for settlement of grievances and to adopt measures as would ensure expeditious settlement of grievances of employees leading to increased satisfaction on the job and resulting in improved productivity and efficiency of the organization.

For systematic monitoring and supervision of Public Grievances, Head of Corporate HR Department has been nominated as Director (Grievance). In addition to this, the company has also set up “Public Grievances Cell” at the Units which is headed by a Grievance Officer, who generally belongs to senior management cadre. Apart from this on the Company’s website “www.nationalfertilizers.com”, a feedback form has been created for posting of query/grievances by the public.

Information relating to welfare of Minorities and reservation in dealership.

The organization believes in equality of all communities and follows all Government regulations on empowerment of minorities such as representation of the minority communities on interview boards in Group C & D. As on 30-09-2010, the percentage share in NFL dealership under SC/ST category is 26.72%.

Environment Management

The Company has in place a system for controlling and monitoring pollutants at all units complying with environmental standards and legislations. Resource conservation, waste management and pollution prevention are the driving forces for environmental excellence at our company.

Silo system for collecting fly ash from ESP Hoppers using dense phase pneumatic conveying system has been installed at Panipat and Bathinda units for evacuation of ash from the plants. All the Units are ISO 9001-2000 certified for Quality Management System, ISO-14001 certified for Environment Management System and have received OHSAS-18001 certification for Occupational Health and Safety Management System. Company has finalized and submitted the project development document for installation of facilities for reducing Nitrous Oxide emissions from Nitric Oxide Plant at Nangal. The project shall enable the company to earn Carbon Credits under Clean Development Mechanism. Company is putting up a Carbon Dioxide Recovery plant of 450 MTPD capacities for recovery of Carbon Dioxide from Flue gases of primary reformer at Vijaipur. This will also help in reduction in discharge of green house gases.

Corporate Social Responsibility and Agriculture Extension Activities

Company is committed towards improving the crop productivity and living standard of socio-economically weaker sections of the society and educating farmers about the efficient use of fertilizers. In furtherance of this cause, during the year 424 field demonstrations and 161 R&D trials were undertaken on different crops in different areas. Around 60,000 soil samples were collected and tested for nutrient deficiency and analysis report provided to the farmers.

Krishi Melas, exhibitions, crop seminars, farmers & dealers training programmes and study tours organized to disseminate information regarding improved farm technology and establish direct communication with the farmers and also to educate the farmers of the balanced use of fertilizers and its timely application besides providing guidance on pesticides & fungicides. More than 2 lakh crop literature in the form of folders, leaflets, pamphlets in local languages were distributed during these programmes. Krishi diary, an annual publication for farmers and Kisan Sandesh, a season-wise crop advisory newsletter was addressed to farmers. A number of health camps for women and children, animal health camps, vocational training programmes were organized. Water tank, water coolers, solar lights, tricycles, school furniture, books etc. were also distributed.

Vijaipur, Panipat, Bathinda and Nangal Units carried out various activities for the benefit of socially and economically weaker sections of the society in their peripheral areas. Health awareness programmes, medical camps were also organized. Financial aid, blankets, sewing machines etc. were provided to the poor and needy persons of the nearby villages. Scholarship to meritorious students belonging to SC/ST categories, stationery items, sweaters, furniture items etc. were also distributed to school children. Community works in the surrounding villages such as construction of boundary wall, flooring work and other civil works at nearby schools were also carried out to provide better environment for the students.