May 21, 2012
India''s DFPCL announces project that will boost capacity
A project that will more than double the capacity at its integrated fertiliser complex at Taloja, Maharashtra has been announced Friday (May 18) by India''s Deepak Fertilisers And Petrochemicals Corporation Ltd. (DFPCL).
The Company proposes to invest around INR3.60 billion (US$66.2 million) in the proposed project that will enhance the capacity of its NPK grades complex fertilisers from the current 229,000 tonnes per annum to 600,000 tonnes per annum.
The Company also announced a Greenfield Bentonite Sulphur project to be set up at a cost of INR55 crores (US$10.1 million) near Panipat, Haryana. Both projects are expected to be completed in a 30-months timeframe from commencement.
For the quarter ended March 31, 2012, the Company posted total Income from Operations at INR6.90 billion (US$126.7 million) as compared to INR4.28 billion (US$78.6 milion) for the corresponding quarter last year a growth of 61%. Profit Before Tax and Profit After Tax was recorded at INR640.7 million (US$11.76 million) and INR454.8 million (US$8.3 million) respectively, as against INR731.5 million (US$13.4 million) and INR52.72 crores (US$9.7 million) in the corresponding quarter last financial year. Profitability for the quarter was impacted due to a steep increase in raw material costs, coupled with a time lag in finished produce price adjustment and some planned plant shutdowns.
For the financial year FY 2011-12, the Company''s Total income from operations grew by 50% to INR2,342.81 crores (US$429 million) as against INR1,564.81 crores (US$287 million) in the previous year. The Profit Before tax stood at INR290.06 crores (US$53.18 million) as against INR261.05 crores (US$47.9 million) in the previous year; an increase of 11% and Profit After Tax rose 14% to INR212.97 crores (US$39.05 million) in FY 2012 as against INR1.86 billion (US$34 million) in FY 2011.The Company has declared a dividend of 55%
The primary objective of the NPK capacity augmentation exercise is to enhance the Company''s product grades from Single Grade Prilled 24:24:0 Nitro Phosphate (NP) fertilisers to Multi Grade NPK Granulated fertilisers. The execution of this project will enable the Company to gain the flexibility to produce all NP / NPK grades with additional fortification of micro-nutrients as per the seasonal crop requirements. With this capacity augmentation project being undertaken by DFPCL, the region of Western India will now move towards self-sufficiency in NPK fertilisers. This project will also help considerably enhance soil and crop productivity in the region and improve overall soil health. The Bentonite Sulphur project will help compensate the widespread micronutrient deficiency reported in Indian soils. For soils that are saturated with fertilisers such as urea, sulphur based fertilisers will definitely increase the soil quality and the yield.
Commenting on this expansion, Sailesh C Mehta, Vice Chairman & Managing Director of DFPCL, said, "In our overall analysis of the agricultural sector we''ve assessed a strong demand for increased availability of NPK grades. NPK fertilisers are a primary source for enhancing soil and crop productivity, and an essential input for all major crops- in Maharashtra it is used across farm outputs such as sugar, and all important vegetables and fruits.