The Fertilizers and Chemicals Travancore Limited (FACT)

7.2.1  Overview The Fertilizers and Chemicals Travancore Limited (FACT) incorporated in the year 1943 was one of the first large scale fertilizer plants in India. Located at Udyogamandal, Kerala, FACT started production in 1947. Initially in the private sector promoted by the Seshasayee Brothers, FACT became a PSU in the year 1960 and towards the end of 1962, Government of India became the major shareholder of FACT. From a modest beginning, FACT has grown and diversified into a multi-division/multifunction Organization with core activities in manufacture and marketing of Fertilizers and Petrochemicals, Design, Engineering & Consultancy and in Fabrication & Erection of Industrial Equipment and Engineering works. The production and financial performance of the company for the period April-December 2014 shows a decline as compared to the same period in the previous year.  During April-December 2014, the production of Factamfos was 449938 MT as compared to 493145 MT during April-December 2013. Similarly the production of Ammonium Sulphate for the period April-December 2014 was 67332 MT as compared to 130404 MT during April-December 2013.  The financial results (provisional) for the period April-December 2014 shows a net loss of Rs.264 crore as compared to Rs. 167 crore net loss during April-December 2013.


7.2.2 Vision / Mission

FACT’s mission is to be a significant player in fertilizers, petrochemicals and other businesses such as engineering and technology services.

               7.2.3 Industrial / Business Operations   


              Financial Performance

                                                                                                        In Crore Rs





From April -

December 2014

From April –

December 2013

For the year 2013-14





Profit /Loss(-) before tax




Profit /Loss(-) after tax



-264.96 Physical Performance

                                                                                                                    in MT


Production Capacity

Actual Production

April to Dec 2014

April to Dec 2013


Factamfos 20:20

















            7.2.4    Performance Highlights During the current year up to December 2014, the company produced 449938MT of NP which is 92 % of the target.  Production of Ammonium Sulphate during the period was 67332 MT which is 49 % of the target. FACT imported ammonia for its fertilizer production due to high cost of re-gasified liquid natural gas (RLNG). The logistics problem relating to import and movement of Ammonia is a constraint in achieving the targeted level of production. Caprolactam  production  was  not  started  during  the  year, since there was no adequate improvement in the economic  viability of  the  product. In  the  absence of  Caprolactam production, Ammonium  Sulphate  production  was  maintained through Direct Neutralisation. With the in-house modifications already implemented, Company is capable of achieving Ammonium Sulphate production levels to meet the monthly targets, even in the absence of Caprolactam production. During the financial year up to December 2014, the total sale of Fertilizers is 6.20 lakh MT compared to 6.98 lakh MT for the corresponding period last year. Company sold 29724 MT of imported fertilisers during the current financial year upto December as against 39962 MT during same period last year.  Zinc fortified Gypsum, FACT Organic, and Zincated Factamfos are also being sold in the market.

    Marketing Performance

Sales during the year 2013-14, sales for the period from 1.4.2014 to 31.12.2014 are given below.

                                                                                  In MT


Sales  (2013-14)

(Apr-Dec 14)

Factamfos 20:20:0;13



Factamfos (imported)



Ammonium Sulphate



Urea (IMP)






bagged Gypsum



Bio fertilisers












Zincated F/Fos








7.2.5 Strategic issues FACT has successfully converted its ammonia plant to support LNG as feedstock on 4th October 2013 but captive production of ammonia was stopped during January 2014 because of very high cost of LNG. The company has submitted to a formal reference to Board for Industrial and Financial Reconstruction (BIFR) as per the provisions of Sick Industrial Companies (Special provision) Act 1985 (SICA-1985). To come out of the sickness and sustained operations, the Company submitted a Financial Restructuring Package, which has been recommended by BRPSE and is now under the consideration of the Government.

7.2.6   Human Resource Management Manpower as on 31.12.2014




Total Employees

Number of employees belonging to:











































7.2.7 Public Grievances redressal and Welfare Measures A Public Grievance Cell is functioning in the Company, as per norms laid down by Government of India. A machinery for redressal of employees grievances exists in the Company.  Generally, the grievances are related to work, work place, shift arrangement, grant of increment, promotion, salary fixation, transfer, etc.  An aggrieved employee may submit a complaint / request for settling the grievance in the Division and if still aggrieved with the decision of the Division Head, it may be submitted before the appropriate Grievance Committee. A separate grievance committees examines and redresses of grievances of managerial and non-managerial employees.  The individual concerned is given an opportunity to present his grievance in person before the committee, if required.  The respective committee deliberates on the grievance and gives its recommendations to the management for appropriate action. In addition, there is a SC/ST Grievance Cell to looks int complaints received from SC/ST employees. Welfare of Minorities.

The Company has provided the following facilities for the Welfare of Minority Communities.

a)      Land for Mosque near FACT Junction, Udyogamandal

b)      Land for Christian Cemetery in Udyogamandal

c)      Pathway to St:Joseph’s  Church near JNM Hospital, Udyogamandal.

d)      Land for CSI Church, Ambalamedu (25.51 cents)

e)     Land for Catholic Church, Ambalamedu (44.73 cents)

f)      Land for Marthoma Church, Ambalamedu  (45.01 cents)

g)     Land for Jacobite Syrian Church, Ambalamedu  (40 Cents)

h)     Land for Mosque, Ambalamedu  (40 cents)

I)     4 separate cemeteries to above 4 Christian Churches in  Ambalamedu.

j)      Burial ground for Muslims (Khabaristan) in Ambalamedu

k)     Burial ground for Muslims in Udyogamandal Welfare, Development and Empowerment of Women Equal opportunity has been provided to women in recruitment to posts both in technical and administrative disciplines with exception for jobs involving round the clock shift-work. Equal remuneration is paid to employees of both genders doing the same type of work.  There is no discrimination on grounds of gender. This has enabled some of our women officers to excel in their respective field of activities leading to their being chosen for the coveted Merit Award given for outstanding performance and achievements. Women executives occupy key positions in the Management cadre as Joint General Managers, Chief Managers/Chief Engineers &Dy.Chief Managers/ Dy.Chief Engineers in various Engineering disciplines like Chemical, Electrical, Civil, Computer, Industrial Engineering etc. and administrative disciplines like Finance, Human Resources, Materials, Marketing etc. Under the Maternity Benefit Act, women employees are entitled for maternity leave of 90 days and medical benefits associated with pregnancy, delivery, miscarriage etc.  Under the provisions of the Factories Act, the working hours of women employees covered under the Act is restricted between 6 a.m. and 7 p.m.  Nursing mothers are given two intervals of 15 minutes each as feeding time, or alternatively as a working arrangement of 30 minutes at a stretch, for feeding their infants, up to a maximum of fifteen months after confinement. As per GOI Orders, women employees undergoing family planning operation are given special leave up to 2 weeks. A crèche is also provided for the welfare of women employees. Non-statutory Welfare measures implemented for Women employees: The Company sponsors a Ladies Club for the recreational activities of women employees and wives of male employees.  There is also an association of women employees, by the name FACT Women' Welfare Association, whose activities are welfare oriented.  Two buildings are allotted to FACT Women’s Welfare Organisation at concessional rate for running Women’s hostel.  Additional maternity leave of 45 days has been introduced for mothers with less than 2 children subject to the condition they work at least for a period of 5years in the company. Security at Work.

There is a full-fledged and active Complaints Committee to look into complaints of atrocities/harassment meted out to women employees at work place.  Not less than half of the members are women including an external member who is a lady Professor of a reputed Social Work College.

7.2.8 Welfare of SCs & STs Employment / Fresh recruitment

The Company has taken all measures for maintaining reservation of SCs / STs in employment in accordance with the Presidential directives. During the current year, 8 SC & 1 ST candidates have been appointed against a total of 56 appointments. Training

In service training to company employees is arranged through the Training Department. Maximum representation is ensured for SC / ST employees to attend in house trainings. For engagement of Apprentices under the Apprentices Act, representation as per rules is provided. SC / ST Grievance Cell

An SC / ST Grievance Cell is functioning at Corporate Level comprising the Chairman, who is also the Chief Liaison Officer for matters pertaining to reservation of SC / ST and their grievances in the company, Liaison Officers of the various divisions and two officers each belonging to SC and ST. The grievances received are examined in detail by the Cell and appropriately redressed and if found necessary they are called by the cell to present their cases in person.  The employee concerned is informed of the decision / action taken on the grievances by the Grievance Cell.   Further, there are associations representing SC / ST employees and these associations also take up individual grievances of SC / ST employees with the management for direct redressel. Reservation of Dealership:

Status as on 31.12.2014

Category of Dealership

As on


As on


Institutional Dealers






SC/ST Dealers



Private Dealers



Total dealership




Steps taken for increase of SC/ST dealers:   There is no restriction on the appointment of dealers under SC/ST category unlike general category applications.  SC/ST dealers are exempted from payment of Security Deposit and there is no prerequisite of furnishing Fixed Deposits as in general category dealers.


7.2.9 Roadmap for sustainability

In order to ensure the revival of FACT and help it sustain& grow over the years the company has drawn up a roadmap outlining its path of progress. The scheme for the revival of FACT can be categorized as short term, medium term and long term plans. These plans are expected to ensure the survival and growth of the company helping it improve its turnover, productivity and profitability. The brief details of these plans are summarized below: Short Term Plan

FACT has requested the following assistance from the Government of India.

a)    Sanctioning of the Financial restructuring proposal to prevent erosion of its net worth, reduce interest  and ease the working capital strain

b)    Providing a level playing field for LNG pricing by allocation of domestic gas or implementation of a price support mechanism

c)    Plan fund  support  for  essential renewals , replacements & other schemes Medium Term Plan

FACT has identified certain medium term projects which primarily focus on removing the infrastructural hurdles and aims at sustainable operation. Following are the projects identified in medium term plan.

a)  Additional Ammonia Storage at Willingdon Island

The present constraints in ammonia shipment parcels sizes can be addressed only by having additional ammonia storage capacity at Willingdon Island.  Hence it is proposed to put up an additional ammonia storage capacity of 15000 – 20000 MT adjacent to the existing tank at Willingdon Island.

b)   NP expansion at Cochin Division

It is proposed to enhance the capacity of NP production at Cochin division by setting up a 1000 TPD NP plant. The estimated investment for this plant is Rs. 216 crore. The project has already got environmental clearance and the draft project report (DPR) is being updated.

c)   Urea Plant at Udyogamandal

The 900 TPD captive Ammonia plant at Udyogamandal commissioned in 1998 has given relatively good specific energy consumption compared to the other Gas based plants now operating in India.  In order to utilize the full production capacity of 900 TPD Ammonia plant, FACT is planning to put up a Urea plant of 2000 MT/day capacity at Udyogamandal in conjunction with the existing Ammonia plant revamped for capacity expansion and energy improvement.

d)   Improvement of Raw material logistics facilities

The raw materials like Sulphur, Rock Phosphate, Phosphoric Acid, Sulphuric Acid and Ammonia are imported and received at the Willingdon Island facility and moved to the production division through road and barges.  FACT is planning to have own barges for Sulphur, Rock, Sulphuric Acid and Phosphoric Acid considering the enhanced requirement of raw materials to address the current constraints in logistics.


       Long Term Plan

FACT has identified certain projects involving improvement in intermediates and capacity expansion of end products in its long term plan.  The following are the projects considered for long term plan. 

a)   Phosphoric Acid Plant capacity expansion at Cochin Division   

b)   2000 TPD Sulphuric Acid plant at Cochin Division                     

c)   3000 TPD NPK plant at Cochin Division 

d)   Augmentation of raw material handling and logistics facilities

7.2.10     Corporate Social Responsibility During the year 2014-2015 also, the company continued to give priority on various Social Responsibility measures.  Since the company is facing acute paucity of funds, CSR activities are restricted to supply of drinking water, and farmer education programs such as Soil testing services, village adoption programme and marketing of organic manures. During the year 2013-2014, an amount of Rs.63.79 lakhs was spent for the above farmer education programs.  From April 2014 to December 2014, Rs.23.74 lakhs was spent towards free soil testing and issue of soil health cards to farmers, village adoption and other farmer education services.