Fertilisers player, Gujarat State Fertilizers and Chemicals Ltd (GSFC) has planned investments to the tune of Rs 800 crore during fiscal 2013 to increase capacity and set up new projects for various fertilisers products including urea and di-ammonium phosphate (DAP).
"We have planned investments for expansions and a greenfield project at Dahej, which will be a replica of our Vadodara facility. In the current financial year, we are planning to invest around Rs 800 crore for these projects," said B M Bhorania, executive director - finance, GSFC.
The new facility at Dahej near Bharuch will be a greenfield project spread across 500 hectares. "The project is at the initial stage and we are in the process of land acquisition. Land acquisition to cost around Rs 400 crore," added Bhorania at a media interaction at Ahmedabad on Wednesday. The investments will be met through internal accruals.
"It is still unclear which products will be manufactured at the new facility at Dahej but broadly it is would include ammonia, urea and other fertilisers," he said.
GSFC's other expansion projects include DAP production capacity at Sikka by 0.4 million tonnes per annum with a total cost of Rs 225 crore and capacity addition of 15,000 tonnes per annum for nylon-6 facility at Vadodara unit attracting investment of Rs 125 crore.
GSFC's net profit for the year increased marginally to Rs 758 crore from Rs 749 crore in the previous year, up 1.2 per cent. The turnover for the year increased by 12 per cent to Rs 5,302 crore against Rs 4,755 crore a year ago. According to company officials, shortfall in availability phosphoric acid dented company's earnings and profits. Company could match only 60 per cent of its phosphoric acid requirements, thereby causing 24 per cent shortfall in the production of DAP, which is a major earning source for GSFC.