National Fertilizers
National Fertilizers Limited – Miniratna company is an India state owned producer of chemical fertilizers, organic fertilizers and industrial chemicals. As of 2018, it was the second largest producer of fertilizers in India.
NFL, incorporated in 1979 is India's largest Central Public Sector Enterprise in Fertilizer Sector with a turnover of over Rs. 75 billion. Coming under the administrative control of Ministry of Chemicals and Fertilizers, it is the second largest producer of the key fertiliser urea in India. NFL has five gas-based ammonia-urea plants viz Nangal and Bathinda in Punjab, Panipat in Haryana and two at Vijaipur.
History
NFL was established in 1 sep 1979, as a public-sector undertaking of the Government of India.NFL initially operated two plants in Bathinda and Panipat. In 1978, the ownership and operations of the Nangal plant of FCI was transferred to NFL.
The Govt. of India, in 1984, entrusted the company to execute the country's first inland gas based fertiliser project of 726,000 tonnes urea capacity in District Guna of Madhya Pradesh, and commercial production started from 1 July 1988. The company built and commissioned its Vijaipur plant in Guna district of Madhya
NFL was granted the Mini-Navratna status with additional autonomy due to its profitable operations.
In 2001, the company went public, with listings on the Bombay Stock Exchange and the National Stock Exchange.
Industrial and business operations
NFL has five gas-based urea plants viz Nangal and Bathinda in Punjab, Panipat in Haryana and two at Vijaipur. The plants at Panipat, Bathinda and Nangal have recently been converted from fuel oil feedstock to natural gas. Vijaipur plants have also been revamped for energy saving and capacity enhancement.Products
NFL is engaged in manufacturing and marketing of urea, Neem-coated urea, bio-fertilizers and other allied industrial products like ammonia, nitric acid, ammonium nitrate, sodium nitrite, sodium nitrate etc.The value-added Neem-coated urea developed by NFL and widely recognized for its effectiveness is being produced at its three units at Panipat, Bathinda and Vijaipur. NFL is the first company in India to be permitted by the Government of India to produce and market Neem-coated urea.
NFL manufactures and markets three types of Bio-Fertilizers namely Rhizobium, Phosphate Solubilizing Bacteria and Azotobacter. Starting with a mere 23 MT production in 1995–96, the production has risen to 231 MT in 2010–11.
Business
The company is also doing trading business in various agro-inputs like certified quality seeds, compost / Vermicompost manure, agrochemicals like Insecticides / Herbicides, Bentonite Sulphur etc. Company is also taking up initiative for setting up of Single Super Phosphate, Heavy water, Bentonite Sulphur plants etc.Marketing
The company's marketing network comprises central marketing office at NOIDA, Four zonal offices at Bhopal, Lucknow and Chandigarh and Hyderabad, 14 state offices and 39 area offices spread across the country.Future projects
An agreement for a joint venture company "Ramagundam Fertilizers And Chemicals Limited" has been signed on 14 January 2015 between National Fertilizers Limited, Engineers India Limited and FCIL for setting up new ammonia and urea plants of 2200 MT per day and 3850 MT per day capacity respectively at the existing site of Ramagundam Fertilizer Plant in District. Ramagundam in Telangana. As per this joint venture agreement, NFL shall provide commissioning, operation, maintenance and marketing services to the joint venture company and EIL shall provide Engineering, Procurement and Construction Management Consultancy Services for the project. The total capital expenditure of 50 billion is being funded in Debt:Equity of 70:30 percentage.NFL and EIL are contributing equity of 26% each and 11% is from FCIL. The balance equity is in the process of being tied up.The company also has a joint venture “Urvarak Videsh Limited” with M/s. KRIBHCO and RCF as promoters. The main objective of the joint venture company is to explore investment opportunity abroad and within the country in nitrogenous, phosphatic and potassic sectors and to render consultancy services for setting up projects in India and abroad.
Consultancy
NFL is well known for taking up assignments in India and abroad in the fields of:- commissioning activities of plant/ equipment
- heavy equipment erection supervision
- complete operation of chemical plants on a continuous basis
- overall maintenance of plants; specialised maintenance and repair services/shutdown/turn around jobs
- special maintenance and repair services for rotatory equipment, like pumps, compressors, turbines etc.
- energy audits leading to energy savings safety audit services
- design and monitoring of environment protection systems
- NDT, corrosion and RLA services
- laboratory services
- training of technical manpower in operation maintenance and safety management
- consultancy in project management
Assignments taken abroad
Fertilizer Plant in Brazil and training of Specialist Welders.
Assistance in operation and maintenance of Ammonia and Methanol Complex of Gulf
Petrochemical Industries Co., Bahrain.
Assistance in operation and maintenance of Ammonia Plant of NAPETCO, Libya
through UNIDO.
Performance
Production
The percentage share of NFL in urea production in the country was 14.2% during 2012–13. The company produced 3211,000 tonnes of urea, which includes 10.83 LMT of Neem-coated urea. 448 MT of bio-fertilizers was produced during the year.Sales and marketing
During 2012–13, company sold 31.62 LMT of urea. Industrial products of worth ` 956.3 million and Bio-Fertilizers of` 36.5 million were sold during 2012–13. Turnover of traded Agri products was ` 300.8 million.Financial
The company, during 2012–13, achieved a sales turnover of ` 67.47 billion. The lower turnover was primarily due to lower urea production as all the units were under shutdown for hooking up and commissioning activities of the projects. The loss before tax was ` 2306.2 million and loss after tax was ` 1707.3 million. The main reasons for loss were due to the following:1) Lower production / sale because of shut-downs taken for commissioning of urea capacity enhancement projects at Vijaipur and changeover of feedstock from Fuel-oil to natural gas at Nangal, Bathinda and Panipat Units.
2) Decrease in sale and contribution of industrial products due to non-availability of cheaper ammonia, non-availability of gases, Sulphur and Argon gas at three Fuel-oil based Units post commissioning.
3) Provision for purchase tax liability pertaining to previous years.
4) Higher interest expenditure mainly due to delay in receipt of subsidy.
Some of the major strategic issues affecting the profitability of the company include:
1) Non-allocation of domestic gas for operation of FO-based plants converted on natural gas at Panipat, Bathinda and Nangal Units.
2) Non-revision of concessional price for existing capacity of urea by updation of fixed cost in NPS-III.
3) Timely release of urea subsidy from GoI.
Awards and accolades
MOU
Company has received “Excellent” rating for the MoU 2011–12, which is 12th excellent rating in a row.Awards
During the year 2012–13, Company received following prestigious accolades and awards.a) “Shreshtha Suraksha Puraskar” for the year 2011 to the Panipat Unit from National Safety Council Mumbai, amongst the manufacturing sector of chemical and chemical products.
b) National Level Fertilizer Association of India ‘Runner-up Award’ for excellence in Safety in Nitrogenous and Complex Fertilizer plant to the Panipat Unit presented by Shri SK Jena, Hon’ble Minister of State for Chemicals & Fertilizers, GoI.
c) Panipat Unit has been awarded “Shreshtha Suraksha Puraskar” for the year 2011 by National Safety Council Mumbai, amongst the manufacturing sector of Chemical & Chemical products and National Level Safety Award for excellence in Safety in Nitrogenous and Complex Fertilizer plant ”Runner Up for 2011–12” by FAI.
d) Vijaipur unit received “Green Tech safety award 2009” in fertilizer sector from Green Tech Foundation, New Delhi. For best safety practices. Vijaipur unit has also been awarded cash prize of rupees one lakh and Certificate of Honour during the year by Department of Commercial Tax, Government of Madhya Pradesh for Best Tax Payer for 2007–08. Vijaipur unit also received Second Award for Bio-Fertilizers in manufacturing sector for the year 2006–07 from National Productivity Council, New Delhi. Vijaipur unit & Panipat Unit also received National Safety Awards. Bathinda unit received First prize for achieving largest reduction in Accident Frequency Rate in Chemical Industry for the year 2009 from Punjab Industrial Safety Council, Chandigarh.