I am pleased to share with all of you that the year 2018-19 was a better year than theprevious year for the company. It is for the 4th time in a row that your company haveperformed commendably well and maintained its track of best ever performance. During2018-19 your company registered a record Urea production of 38.59 LMT with 119% capacityutilization and also achieved ever best fertilizers sale of 48.95 LMT securing theleadership position amongst all the Fertilizers CPSEs. With such exceptional performanceyour company has now attained 2nd ranking nationally in overall fertilizers sale from 41t1rank held in 2017-18.
Your company has exhibited such performance even after many challenges and constraintsof Fertilizer industry. Delay in payment of subsidy due to inadequate subsidy budget forFertilizers over regulations and procedural delays unviable investment by Industry toreduce energy consumption without any policy dispensation from Govt lack of availabilityof domestic gas to fertilizer sector increasing trend in the price of spot RLNG volatileprices of Fertilizers in international market remained the main challenges forthe companyduring the year.
Despite these challenges your company continued its journey on the growth trajectoryand has excelled once again in production & sales through consistent and energyefficient operations of the plants and gradual switching over to Non-Urea business leadingto record breaking top-line and bottom-line of the company.
Companys long term strategy to increase share of non-Urea business due to verythin margin in urea has started showing impact and your company has achieved significantgrowth during the year in Non-Urea segment. I am happy to share that your company hasregistered a growth of around 50% during 2018-19 in non-Urea segment over the previousyear leading to a contribution of more than 22% in the overall turnover of the companyagainst 15% achieved last year.
Your company imported significant volume of fertilizer like DAP NPK APS to the tuneof 8.93 Lakh MT an increase of more than 90% over the previous year. In addition to thisyour Company also handled and sold 3.71 Lakh MT of Urea imported in Govt account atthreeports during 2018-19.
In Seed Business your company has also strengthened its position by bringing moreprogressive farmers under its umbrella to supply seeds. To further the flagship SeedMultiplication program your company is already in the process of setting up its own seedprocessing plants at Panipat Bathinda and Indore to ensure supply of good quality seedsto the farmers in the prestigious Kisan brand of the Company. Seeing the quality of seedsproduced in the existing farm your company is developing another R&D farm at NangalUnit which will exclusively produce best quality foundation seeds from breeder seeds.
All the above efforts and achievements of the company have culminated into recordturnover of ?12245 crore (increase of 37% over previous year) and profit of ?463 crore(increase of 38.2% over previous year) during 2018-19.
Your Company is leaving no stone unturned to strengthen its marketing network and isnow recognized as a Pan India fertilizer company after opening its 4th Zonal office atHyderabad. This has been done to cater to the requirement of fertilizers and other agroproducts for southern part of the country. Further the company has set footprints inNortheast as well after signing of Moll with BVFCL for marketing of Urea in North easternparts of the country.
With the commitment of providing all types of fertilizers to farmers under one roof andto enrich the product line your company has recently started trading of two new productsWater Soluble Fertilizers and Calcium Nitrate.
To enhance energy efficiency in plants the work on the energy saving schemes in allUnits is going on in full swing and is expected to be completed by March 2020. Yourcompany has already taken up the matter with the Government of India to provide suitabledispensation for the investment being made by the company on these energy saving schemesto make it viable. The Ramagundam JV project of your company is reaching an advanced stageof completion and is likely to be commissioned by March 2020. There is a delay incompletion of the project by around 1Vz years mainly due to delay in procurement of somecritical equipment and a major delay in commissioning of gas pipeline.
Your company is currently in to a major recruitment drive to provide as well as trainmanpower for RFCL and also to bridge the talent gap of manpower at NFL due to massiveretirements in the company.
In order to integrate and to bring transparency in various business processes yourcompany is in the process of implementing ERP based integrated Software solution for whichtendering process is on.
Your company is also setting up NABL accredited Laboratories at its Panipat &Vijaipur Units to improve its testing facilities and to offer some quality testingservices to other companies as well. I am pleased to share that your company hassuccessfully carried out in-house modifications in the Nitric Acid Plant at Nangal Unitwith effect from 01 -04-2019 to meet the stringent NOx emission norms fixed by the Govt.This has saved significant amount of money and time of the company.
On the Research and Development front your company has taken a leadership role and isalready in the process of setting up Indian Council of Fertilizers and FertilizerTechnology Research (ICFFTR) to be dedicated for collaborative R&D efforts with otherfertilizers CPSEs and Depth of Fertilizers.
Your company is implementing various developmental activities under its CorporateSocial Responsibility (CSR). The company has undertaken projects in the areas ofhealthcare Skill Development Training sanitation environment education etc. for thesocio economic development of communities around its plants and marketing territories.During the year the company incurred an expenditure of ? 2.29 crore on CSR activities.
As per Government guidelines your company has taken up CSR activities in theAspirational Districts also particularly in Mewat (Haryana) and Guna (Madhya Pradesh).Your company has also constructed a Swachhta Grih at Grishneshwar Temple in Aurangabadwhich is a heritage site of international repute. This sanitation facility constructed byNFL has enhanced the facility at this heritage site which is thronged by lakhs of peopleevery year. The performance of your company on various fronts has been well noticed andappreciated by various organisations. The testimony is the number of awards won by yourcompany during the year on fronts like Safety Environment Productivity SwachhataRajbhasha and overall performance. Your company has received 20 top awards fromprestigious organisations State and National Councils for its performance in specificareas.
As we continue our eventful journey I express my gratitude for your continued supportand unshaken faith in our endeavours.
I would like to place on record my sincere appreciation to the Board of Directors fortheir guidance. I would also take the opportunity to acknowledge the support of Departmentof Fertilizers Statutory Authorities Vendors and other stakeholders for their invaluablecontribution in shaping the growth of your company.
I would also like to thank all my colleagues in the company for their unflinchingdedication commitment and contribution to take NFL forward. The team strived tirelesslyto deliver the best- ever results forfour years in a row.
With the confidence reposed by all of you we are looking forward to continue on ourvision in a manner that develops trust and enhances the long term value for allstakeholders.
With best regards
| ||Yours sincerely |
|Registered Office: ||(Manoj Mishra) |
|Scope Complex Core-Ill ||Chairman & Managing Director |
|7 Institutional Area Lodhi Road New Delhi-110003. ||DIN: 06408953 |
|Date :02nd August 2019 || |