Rashtriya Chemicals and Fertilizers Limited (RCF)

Introduction

Rashtriya Chemicals and Fertilizers Limited (RCF) was incorporated on 6th March, 1978 and it came into being as a result of the re organization of the erstwhile Fertilizer Corporation of India Limited. At the time of its formation, the company had one operating unit, viz. Trombay (old plants) and two major projects under implementation viz. Trombay IV expansion and Trombay V expansion, besides the West, South Marketing Zones and the Bombay Purchase and Liaison office. RCF was the first fertilizer company in India to commission a green field, mega fertilizer complex at Thal-Vaishet in the state of Maharashtra.

The Trombay IV Expansion Project with an annual capacity of 75,000 tonnes each of Nitrogen and Phosphate (P2O5) went into commercial production on 1st January 1979. Trombay V Expansion also started commercial production w.e.f. 1st July 1982 with an annual capacity of 1,51,800 tonnes of Nitrogen. The Thal Fertilizer Plant of annual installed capacity of 6,83,000 tonnes of Nitrogen started commercial production w.e.f. 1st June, 1985.

RCF has a total installed capacity of about 10.54 lakh tonnes of Nitrogen and 1.17 lakh tonnes of P2O5 and 0.45 lakh tonnes of K2O.Besides fertilizers, the Company also produces a number of industrial chemicals such as Methanol, Concentrated Nitric Acid, Methylamines, Ammonium Bicarbonate, Sodium Nitrate/Nitrite, DMF, DMAC, etc.

The capital structure of the company is as follows:

Authorized Capital --800.00 crores

Paid up Capital --551.69 crores.

Physical Performance

The company produces a number of products. The details of production of these products for the year 2009-10 and from April to December 2010 are given below.

Plant Installed Capacity Nine Months April 10 to Dec. 10 2009-10
Urea 2036800 1591395 2089076
Suphala 300000 341461 490000
ANP 361000 104369 17070
Complex Fertilizers 661000 445830 507070
Total Indu. Products: 110400 108898 119323
Amonia I 115500 72825 87856
Amonia V 297000 240585 330235
Amonia Thal 990000 846430 1128320
Nitric Acid 352500 266840 362815
Sulphuric Acid 99000 55528 59753
Phosphoric Acid 30000 18760 17040

Financial performance

PARTICULARS 2009-10 2010-11 upto December
Turnover/Operating 5826.25 3968.95
Income Profit before Tax 344.21 216.12
Net Profit / Loss (-) 234.87 149.02
Net Worth 1837.14 1986.16

Production Performance

The annual installed capacity of all the units of RCF is about 10.36 lakh MT of nitrogen and 0.99 lakh MT of phosphate. The production of nitrogen & phosphate during 2009-10 was, 10.379 lakh MT and 0.769 lakh MT respectively. Production during the year was severely affected due to suspension of ANP production which is under revamp.

Besides fertilizers, the company also produces a number of industrial products such as Methanol, Concentrated Nitric Acid, Methylamines, Ammonium Bicarbonate, Sodium Nitrate, Sodium Nitrite, Dimethyl Formamide, Dimethyl Acetamide, Ammonium Nitrate, Argon, etc.

During April-November 2010, RCF produced 7.026 lakh MT of nitrogen as against 6.697 lakh MT during the period of the previous year. Company also produced 0.614 lakh MT of phosphate as against the production of 0.481 lakh tonnes of the previous year. During the year 2010-11, the Company is likely to produce 10.74 lakh MT of nitrogen and 1.047 lakh MT of phosphate.

Sales Performance

The sale of fertilizers (including bought-out products) during the year 2009-10 was of the order of 40.82 lakh MT corresponding to 14.35 lakh MT of nitrogen, 1.88 lakh MT of phosphate and 3.34 lakh MT of potash.

During the period April-November 2010, RCF sold 9.33 lakh MT of nitrogen, 1.16 lakh MT of phosphate as against 8.83 lakh MT of nitrogen and 1.53 lakh MT of phosphate for the corresponding period last year. The Company also produces and sells biofertilizers, micro-nutrients and 100% solid soluble fertilizers. In the period April- November 2010, the company has laid special emphasis on micro-nutrient and Biofertilizers. Sale of Biofertilizers, Biola was 153 MT in the period April-November 2010. In case of liquid micro-nutrients, Microla, the company effected a sale of 80 KL during April-November 2010. A total of 2,610 MT of the Company’s specialty fertilizer (drip+foliar) was sold during the period April to November 2010.

The sales turnover of industrial products division of the Company was 717.77 Crore for the year 2009-10. During the period Apr- Nov 2010 sales turnover of industrial production division was 460.74 Crore.

Modernization/Expansion Schemes

ANP 20:20:0 granulation unit has been commissioned and plant has achieved its rated capacity.

In Rapid wall plant load bearing panels have been produced since July 2010.Company has approached BMTPC for performance appraisal certification for usage of these panels for load bearing structures.

Methanol plant phase-I has been commissioned in March 2010.Due to this, production capacity of methanol has gone from 180 to 225 MTPD with reduction in energy consumption to the tune of 1.0Mkcal/ MT.Under phase-II revamp new synthesis gas compressor has been installed. It is under commissioning. After this production capacity will increase from 225 to 242 MTPD.

Under Thal ammonia revamp project: Urea capacity will enhance from 17.07 to 20 Lakh MT per annum after it’s commissioning in 2011-12. Critical long delivery equipment has been ordered and civil work is underway.

Grievance Redressal

The Company has a good grievance address and redressal system. Any citizen having complaints in respect of the production or services rendered may approach the Company. Similarly any aggrieved customer / dealer or other citizen can approach the Company for any failure of the quality / price charged / conduct of any officer / employee and will be dealt as under.

The grievances can be addressed to a special officer of the Company not below the rank of General Manager who will act as the Nodal Officer for redressal. The name, address and telephone No. of the officers is available on Internet on Company’s website www.rcfltd.com. It is assured that the Nodal Officer will immediately take up the issue with the concerned department and appropriate action will be taken within seven days from the date of receipt of the complaint or an appropriate reply is sent within seven days as the case may warrant.

A similar grievance address and redressal system procedure is followed by the Company in issues related to staff also.

Employment of SC/ST, Ex-Servicemen, Physically handicapped & Other Backward Classes

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 4241, there are 592 SCs, 258 STs, 323 OBCs, 8 Ex-Servicemen and 36 PHPs on the rolls of the Company.

Disinvestment

Government of India disinvested about 5.64 percent of the equity Share Capital of the Company during 1991-92. Further disinvestment of about 1.57 percent and about 0.27 percent were effected during October 1992 and December 1994 respectively. Thus, the total disinvestment has been of the order of 7.50 percent.

Welfare of Minorities & Reservation in Dealership

RCF has a policy to include representative of the minorities in the recruitment selection boards so as to ensure that the minorities get an adequate share in the services.

Welfare, Development & Empowerment of Women

Women are working in technical / nontechnical / managerial positions and some of them have risen to the level of top management positions in the organization.

All the welfare and employee benefit schemes are equally applicable to male and female employees of RCF.

Under the special schemes and policies for women employees, RCF has set up

  • Special Cell for Women Employees (as per Communication from National Commission on Women)
  • Committee for Sexual Harassment Cases (as per Supreme Court Guidelines)
  • Special Medical check-ups/camps.

All the benefits under legal requirements such as Maternity Benefits,

Nursing Breaks, etc. are given to women employees.

As a part of regular training, RCF incorporates awareness building for all officers (Men and Women) on the Sexual Harassment Guidelines and also covers gender sensitization issues.

Corporate Social Responsibility

  • The Integrated Rural Development Programme - is implemented in various villages of the country. Overall development of these villages is the focal point. Some of the programmes carried out under Integrated Rural Development Programme (IRDP) are as under:
  • Meeting Basic Needs of Rural Community - The scheme covers providing essential amenities like drinking water supply, school buildings, community centers, development of irrigation systems etc.
  • Agricultural Development Programme - This focuses on economic upliftment of small/marginal farmers and landless labourers through training and education.
  • Subsidiary Occupation- Artisan Development Programme - This provides a platform for training and making available financial facilities to rural artisans and entrepreneurs which enable them to revive and develop their skill for commercial use.
  • Social Forestry and Waste Land Development Programme - This focuses on development of sericulture, social forestry, waste land use, dry land farming and biogas development.
  • Public Health & Village Sanitation Programme – This covers health care, village sanitation, health camps, and veterinary camps.
  • Youth and Women Skill Development Programme - Rural sports and cultural activities are organized in different villages to encourage participation by youths.
  • Soil Testing - The Company places tremendous importance on empowering farmer to increase the yield. Soil diagnostics form a major part of determining which fertilizer needs to be used for each soil and crop. The Company has 5 static and 3 mobile soil testing laboratories across its major marketing territories which undertakes soil sample analysis. About 70,000 soil samples are analyzed every year.
  • Micro-nutrient Analysis - To increase crop yield the presence of micro-nutrients in adequate proportion is necessary. Micro-nutrients analysis identifies the deficiency in the soil and prescribes doses of micro-nutrients that need to be applied to ensure optimum yield. About 1000 samples are analyzed every year.
  • Earn While You Learn Scheme - This is a unique scheme that has been developed by the Company. It seeks to educate and train children studying in class IX and above to participate in the process of agricultural development. These students are trained to understand latest developments in agriculture and transfer this knowledge to the farming community. The scheme provides all opportunities to students to earn while they learn. The students participating are offered token money which supports them while studying and at the same time imparts practical knowledge of agriculture to them. The students are required to do field extension work for promoting specialty fertilizers, micro-nutrients & bio fertilizers during vacation and holidays