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The Fertilizers and Chemicals Travancore Limited (FACT)

1. Overview

1.1 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.

1.2 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.

1.3 Presently FACT is the lead fertilizer supplier of Kerala with its production units located at Kochi and supplying fertilisers to all the South Indian states. Company has an annual installed capacity of 6.33 lakh MT of complex fertilizers (NP 20:20:0:13 under the brand name Factamfos), 2.25 lakh MT of Ammonium Sulphate and 0.5 lakh MT of Caprolactam. Company was shifted from Naphtha based operations to RLNG based operations in 2013-14. 
The company could significantly improve its financial performance during the year 2019-20. With the excellent production and marketing performance, FACT could register an operating profit of 3.36 Crore during the year. Details of performance are given in the Industrial / Business operations section.

2. Vision / Mission

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

3. Industrial / Business Operations   

3.1 Financial Performance

(In Rs Crore)

2019-20  (Audited)

2020-21 (Actuals Upto Aug’20)

Turnover

2769.91

1255.54

Profit /Loss(-) before tax *

975.52

43.30

Profit /Loss(-) after tax *

975.52

43.30

 

*After considering the income from Land monetisation to GoK

3.2 Physical Performance

Production performance during last two years and for the period April- August 2020 are given below

Product

Annual Production Capacity

Production (in MT)

2018-19

2019-20

Apr- Aug 2020

Factamfos 20:20

633500

634362

844738

311611

Ammonium

Sulphate

225000

141754

220951

87224

Caprolactam

50000

Nil

Trial Runs

Nil

4    Performance Highlights 2019-20

4.1 Production 

•    Factamfos (NP 20:20:0:13) production of 8.45 Lakh MT is an all time high record surpassing the previous best of 8.38 Lakh MT during 2000-01. 
•    Surpassed the MoU excellent targets for all end-products in Production and Sales and also surpassed One million MT mark in total fertilizer Production and Sales. 
•    Ammonium Sulphate production of 2.21 lakh MT is the highest in 19 years period 
•    All time high Factamfos production at Cochin Division (6.4 Lakh MT) surpassing the previous best of 6.33 Laakh MT in 2000-01. 
•    All time high Sulphuric Acid production at Udyogamandal Complex (2.58 lakh MT) surpassing the previous best of 2.55 Lakh MT in 2000-01.
•    ISO 50001: 2018 certification for FACT Udyogamandal Complex  

4.2    Marketing

•    Total fertilizer sale of 11.17 lakh MT is a record in last 18 years
•    Factamfos sale of 8.35 Lakh MT is the highest in last 19 years period 
•    Ammonium Sulphate sale of 2.36 Lakh MT is the highest in 19 years period 
•    All time high City Compost sale (13103 MT) for the year (previous best 9370MT)
•    122 MT Bio-fertiliser sale for the year. 
•    Imported one parcel of NPK 16:16:16 (27000 MT) for augmenting fertilizer sales
•    Started marketing Ammonium Sulphate in the states of Maharashtra and West Bengal. 

4.3 FACT tied up with oil companies for RLNG supply for captive Ammonia production for entire year. This helped the company in maximizing fertilizer production during the year. 

4.4 The trial runs of the Caprolactam plants were completed during 2019-20. The plants were shut down since 2012 due to economic reasons. FACT is planning to commence continuous run of the plant in 2020-21 in line with the PM’s view of Atma Nirbhar Bharat. 

4.5 FACT is awarded “Sreshta Suraksha Puraskar” for the outstanding safety performance (Cochin Division) among very large industries in Kerala, from National Safety Council, Kerala Chapter 

4.6 Marketing Performance

Sales during the year 2019-20 and sales for the period April- August 2020 are given below.

Product   (in MT)

2019-20

April – August  2020

Factamfos 20:20:0;13

835098

3,76,449

Ammonium Sulphate

235922

88,954

Organic / City Compost

13103

5,537

Traded Products (NPK / MOP)

26827

47913

5. Strategic issues

5.1 FACT tied up with oil companies for RLNG supply for captive Ammonia production for 2019-20 and continuing the same strategy for the year 2020-21. This helped the company in maximizing fertilizer production during the period. 

5.2 Company has submitted a financial restructuring proposal, focusing on leveraging the land resources for settling the outstanding dues and strengthening production & port facilities. The proceeds from the sale of land along with proposed revival plan, would enable the company to clean the balance sheet making the net-worth positive and will ensure sustainable operation in the long run. 

Following the Cabinet approval, FACT has leveraged 481.79 acres of its land at Cochin division to Government of Kerala and received an amount of Rs.967 Cr. on 10.12.2019 towards consideration for the sale. The board approved CAPEX plan is submitted to DoF. Tender for the major capex schemes NP plant, Ammonia Storage Tank & Ammonia Barge were floated, due date is extended on account of the restricted activities under lockdown. 

6. Human Resource Management

6.1 Manpower as on 01.07.2020 

 

Employees

SC

ST

A

324

52

16

B

980

109

24

C

388

46

7

D

146

23

2

TOTAL

1838

230

49

 

7. Public Grievances redressal and Welfare Measures

7.1 A Public Grievance Cell is functioning in the Company, as per norms laid down by Government of India.

7.2 A Grievance Management System 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.

7.3 Welfare, Development and Empowerment of Women

7.3.1 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.

7.3.2 Women executives occupy key positions in the Management cadre as General Managers, Dy. General Managers & Asst. General Managers in various Engineering disciplines like Chemical, Instrumentation, Electrical, Civil, Computer etc. and administrative disciplines like Finance, Human Resources, Materials, Marketing etc.

7.3.3 Women employees are entitled for maternity leave of 26 weeks 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 Complaints Committee is functioning to look into complaints of sexual harassment to women employees at work place under the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013.  Not less than half of the members are women including an external member who is a lady Professor of a reputed Social Work College.

8. Welfare of SCs & STs

8.1 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, 7 SC & 3 ST candidates have been appointed against a total of 50 appointments.

8.2 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.

8.3 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.

8.4 Reservation of Dealership:

Status as on 31-08 2020 

FACT is having 6234 dealers for distribution of fertilizers.  FACT is encouraging SC/ST category dealers to apply for the dealership in accordance with policy of Department of Fertilizers, Government of India.

Total number of dealers and the representation of SC/ST in dealership as on 31.08.2020 is given below.

Sl. No

State

Total Dealers

SC

ST

1

Kerala

2628

196

11

2

Tamil Nadu

905

108

31

3

Karnataka

1539

122

62

4

Telangana

515

13

6

5

Andhra Pradesh

647

31

6

 

TOTAL

6234

469

116

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. 

9. Corporate Social Responsibility

9.1 Company continued to give priority on various Social Responsibility measures during the period.  Considering the financial constraints, CSR activities are mainly focused on supply of drinking water, farmer education programs such as Soil testing services, village adoption programme and marketing of organic manures etc. Distribution of school bags, sports & study kits to under privileged students etc were made, wheel chairs were also given to local physically challenged personnel.  
In view of COVID-19 pandemic, Company has cleaned & sanitised the common areas like Shopping complex, Bus Stop, ATM Counter etc near production Divisions at Udyogamandal & Cochin Division. Company medical centre at Udyogamandal is open for local public also. Company also supplied provisions to community kitchen run by local authorities, facilities like beds and washing machine were donated for the COVID first line treatment centers and also made contribution to the PM CARES fund.