The Fertilizers and Chemicals Travancore Limited (FACT)


Fertilizers And Chemicals Travancore Limited (FACT) was incorporated in 1943. In 1947 FACT started production of Ammonium Sulphate with an installed capacity of 50,000 MT per annum at Udyogamandal, near Cochin. In the year 1960, FACT became a PSU and towards the end of 1962, Government of India became the major shareholder.

From a modest beginning FACT has grown and diversified into a multi-division/multifunction Organization with basic interest in manufacture and marketing of Fertilisers and Petrochemicals, Design Engineering & Consultancy and in Fabrication & Erection of Industrial Equipment.


During the Financial Year 2009-10 FACT has made an upsurge in Production and sales. For the continuous second year, company could maintain a turnover above2100 Crore. Production, Sales and profitability of the company for the year 2010-11 upto December 2011 as compared to 2009-10 & 2008-09 is given below:

  2009-10 2008-2009 Apr-Dec. 2010
Production/in Tonnes      
Factamfos 20:20 753744 605047 481457
Ammonium Sulphate 179546 128845 145554
Caprolactam 42006 13548 32070
Sales/ in lakh Tonnes      
Fertilizers 10.45 8.33 7.18*
Caprolactam 0.38 .0.12 0.32
Financial /Rs. Lakh      
Profit/Loss(-) before tax (-)10370.34 4311.44 (-) 1409

*including traded products

Performance Highlights

During the current year up to November 2010, the company produced 4.42.749 MT of NP which is 97% of the target . Production of Ammonium Sulphate during the period was 125897 MT which is 113% of the target. During the financial year up to November 2010, the total sale of Fertilizers is 7.18 lakh MT valued at 1427.94 crores compared to1276.54 crores for the corresponding period last year.

Company sold 45475 MT of imported MOP during the period. Sale of Gypsum reached 252050 MT till November 2010. New fertilizer products, Zinc fortified Gypsum, FACT Organic, and Zincated factamfos launched last year are moving smoothly in the market.

Caprolactam sales for the period April-Nov. 2010 is 28112 MT of which 6460 MT was exported.

Commercial production of the Zincated factamfor began this year and till date a total of 19199 MT of zincated factamfos has been sold in the market. This product provides higher returns to FACT and will also serve to promote the balanced use of fertilizer nutrients in the country.

1) FACT-RCF Building Products Limited (FRBL)

FACT has formed a Joint Venture Company with Rashtriya Chemicals & Fertilizers Limited for manufacturing load bearing panels and other building products using phospho gypsum. The project is expected to achieve mechanical completion during January 2011. Commissioning shall begin shortly.

2) Switch over of feedstock and fuel to LNG

LNG which is a cheaper feedstock than the presently used Naphtha is expected to be available from the upcoming Terminal being set up by Petronet LNG at Puthuvypeen. FACT has taken steps to carry out modification of its existing Ammonia plant and also the boilers for the use of LNG. M/s. Haldor Topsoe who is the licensor for Ammonia plant has submitted detailed offer for engineering works for the feedstock conversion of the Ammonia plant. BHEL has undertaken a study for the conversion work for the boilers. FACT intends to change over these plants for dual feedstock and fuel in order to take advantage of the relative economies of different raw materials.

FACT is also taking steps for a Gas Transmission and Gas Supply agreement with GAIL/BPCL/IOC for the transport and supply of the required quantities of gas from the LNG Terminal. However the proposed price of LNG at Kochi terminal is US$14-15 per mmbtu when compared to average price of US$ 4-5 per mmbtu for natural gas, raises concern to the company in the scenario when additional subsidy is withdrawn after change over to gas.

3) Expansion and Diversification plans

FACT has drawn up plans to set up a 5 lakh MT per annum Urea plant at Udyogamandal as an add-on to the existing Ammonia plant utilizing the carbon dioxide being vented from this plant. Preparation of the Detailed Project Report and selection of the process licensor is in progress. The cost estimated for this project is 695 crore. Implementation of this project is scheduled for 2012-13.

FACT is going ahead with its plans to expand the production capacity of complex fertilizers at FACT (Cochin Division) from 2000 TDP to 3000 TDP. Site selection has been completed and preparation of the DPR is in progress. To cater to the higher volumes of raw materials to be handled up on expansion of the production facility, expansion/ revamp of the Raw material handling facility at Willingdon Island has also been planned. The total cost of these ventures is expected to be approximately283 crores.

FACT ventured into the field of infrastructure development by entering into MOUs with Container Corporation of India (CONCOR) and Central Warehousing Corporation (CWC) for setting up Container Freight Stations by the side of the newly laid highway to the Vallarpadam Container Transshipment Terminal which passes through FACTs premises. The final business plans for these ventures has been drawn up. Construction of these Freight Stations is expected to be completed within a year. A joint venture with Kerala State Industrial Development Corporation for setting up a state of art convention centre at its Udyogamandal premises is also being considered and detailed feasibility report for this is under preparation.

Redressal of Public Grievances and Welfare Measures

A Public Grievance Cell is functioning in the Company, as per norms laid down by Government of India. Grievances are attended to promptly.

Employee Grievance Redressal Machinery

There is a redressal Machinery to attend to employees grievances 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. Separate grievance committees exist for examining and redressal of grievances of managerial and nonmanagerial employees. The individual concerned is given an opportunity to present his grievance in person before the committee, if required. The respective Committee will deliberate on the grievance and give their recommendations to the management for appropriate action. In addition, there is an SC/ST Grievance Cell that looks into complaints received from SC/ST Employees.

Employment of SC/ST, Ex-servicemen, Physically Handicapped & Other Backward Classes (OBCs) as on 30.11.2010.

Company has a total man-power of 3340 as on 31.11.2010, out of which 458 belong to scheduled caste, 109 to scheduled tribes, 41 to Ex-servicemen, 1023 to OBCs categories, 244 women, 73 Physically handicapped and 1750 General categories.

Reservation in Dealership

FACT has always followed a policy of encouraging SC/ST Candidates to take up dealership. Details of dealership allotted to SC/ST are given below:

Category of Dealership As on 31.03.2010
Total Dealership 7948
SC/ST 614

No security deposit is collected from SC/ST Dealers and they are encouraged to do business by constant advice/follow up. All efforts will be made to ensure that maximum representation is given for SCs/STs in Dealer appointments wherever additional dealerships are provided.

Corporate Social Responsibility

As part of Corporate Social Responsibility, FACT has undertaken the following activities.

1. Drinking Water Supply to Residents of Eloor Panchayath

FACT processes water from the River Periyar at their advanced drinking water facility for their Industrial/township needs. To meet the scarcity of water in Eloor Panchayat, FACT is providing about 1500 M3 water per day to more than 500 residential users of the Eloor Grama Panchayath.

2. Public Health insurance for residents of Eloor Panchayat

FACT has joined hands with Government of Kerala to introduce a General Health Insurance for about 3000 families residing in Eloor Grama Panchayat. Company has contributed8 lakh towards the premium for the General Health Insurance.

3. Farmer Education programme

Regular agricultural seminars, dealer training programmes, crop campaigns, field demonstrations etc, were conducted. This helped the farmers to gain experience of scientific practices to be adopted for successful farming. Our field staff regularly make follow up to clarify doubts if any, and inculcate the adoption of modern technology for integrated farming.

4. Soil Testing and Agronomy Services

During the year 2009-10, 2867 number of soil samples were collected by our field staff from various villages in the states of Andhra Pradesh, Kar5nataka, Tamilnadu and Kerala. The focus was on collecting samples from remote tribal areas with limited access to Government laboratories. Based on the soil tests the farmers were educated on the agronomic practices to be adopted, namely crop variety selection, type of soil tillage to be adopted, use of available organics in fields, dosage of fertilizers to be used etc. These activities have benefited the farming community to maximize their crop yields.

5. Fire and Emergency Services

The well equipped fire services established in FACT provide emergency services not only to the surrounding areas but also to Ernakulam district as well.

6. Training facilities

In addition to Employees and Apprentices Training, FACT Training Centre has of late emerged as a Skill Development Academy offering the following courses, utilizing its resources for the benefit of the public at large:

  • One year Diploma in Fire & Safety Engineering for ITI/Plus 2 passed students-1st batch started in February 2008.
  • 3 months Certificate course in Heavy Equipment Operation-1st batch commenced on October 2008.
  • 3 months Certificate course in Instrumentation & Maintenance-1st batch commenced in September 2008.
  • Kerala Institute of Welding & Research, a Joint Venture with Government of Kerala, functioning at FACT Training Centre has started a 3 months Certificate course in Welding leading to award of IBR certificate in Welding. First batch commenced in September 2009.