FERTILIZERS AND CHEMICALS TRAVANCORE LIMITED (FACT)

The Fertilizer and Chemicals Travancore (FACT) was incorporated in 1943, Government of India became a major shareholder in the company in 1963, Besides manufacture of fertilizers and caprolactam, the company is also engaged in the manufacture of allied chemicals like Olelum,Sulphuredioxide etc. FACT has,at present four production units namely,Udyogmandal Division,Cochin Division Phase-I,Cochin Division,Phase-I and Petrochemicals Division. It has also a Design Organisation known as FACT Engineering & Design Organisation (FEDO) and an Engineering Work Shop. FACT Engineering Works (FEW). In addition, it has a Marketing Division, which caters to the sale of fertilizers in Southern States.

As on 31-3-1998, the authorised capital of FACT was Rs.500 crore with paid up capital Rs.354.77 crore. This includes 97.38% GOI equity.

The Projects/Schemes under implementation are given in Statement No.I. The most important major item under "continuing Schemes" is the new 900 TPD Ammonia Plant, which was commissioned on March 1998. The company has proposed a total outlay of Rs.79.72 crores in 1998-99. The actual expenditure of the Ammonia Project in 1997-98 was Rs.582.90 crore and the anticipated expenditure for 1998-99 is Rs.59.41 crore. The budgetary support from the Government (OECF Funds) is envisaged to the extent of Rs.25.38 crore in 1998-99 for the new Ammonia Project.

2. OPERATING PERFORMANCE

During 1997-98,FACT produced 2.92 lakh tonnes Nitrogen and 1.28 lakh tonnes of P205 as against the target of 3.02 lakh tonnes of Nitrogen and 1.39 lakh tonnes of P205. The production of caprolactam was 0.40 lakh Mts. (Target o.48. lakh Mts.). During 1998-99,FACT produced 1.41 lakh tonnes of Nitrogen and 0.79 lakh tonnes of P205 upto Oct,1998. The production of Caprolactum during the same period was 0.23 lakh Mts.

3. FINANCIAL RESULTS

In 1997-98,the company had surplus of Rs.60.62 crores(before tax) . The estimated loss for the year 1998-99 is Rs.110.25 crores and for 1999-2000 is Rs.67.84 crore respectively. The negative working results are due to the high incidence of interest and depreciation on the new Ammonia plant(loan component of Rs.425 crore in a total investment of Rs.638 crore), the drastic reduction in the sales realisation from Caprolactam when compared to 1997-98,the upward revision in the prices of petroleum products and exchange rate variation which are not recovered through the selling prices of phosphatiac Fertilizers. During 1998-99(upto Oct,1998), the company has incurred loss of Rs.78.99 crores.

The estimates of Internal/External resources available for the Plan Schemes are given in Statement No.III.

4. FACT ENGINEERING WORKS(FEW)

During the year 1997-98,FEW recorded a turnover of Rs.9.82 crore as compared to Rs.9.96 crore during 1996-97. During the current financial year, the turnover upto Oct.1998 was Rs.3.92 crore.

5 .FACT ENGINEERING & DESIGN ORGANISATION(FEDO)

The turnover of FACT Engineering & Design Organisation(FEDO) during the financial year 1997-98 was Rs.13.17 crore as against Rs.11.28 crore during 1996-97. During the current financial year, the turnover upto Oct,1998 was Rs.6.37.

6. R&D

Specific areas on which Research & Development activity was carried out are slow release fertilizers,Process development of MEKO,Bio-fertilizer project etc.

Statement No.I, Statement No.II, Statement No.IV.