RCF aims to double its turnover in the next five years: R G Rajan

Rashtriya Chemicals and Fertilizers Ltd (RCF), a Government of India undertaking, is one of the leading manufacturers of urea, complex fertilisers and industrial chemicals in India. The company has adopted strategies and processes which ensure optimal utilisation of resources and take due care of environment. In this interview with Rakesh Rao, R G Rajan, Chairman and Managing Director, RCF, elaborates on some of the initiatives taken by the company to reduce carbon footprint and its growth plans.

 

Kindly brief us about some of the sustainability measures taken by RCF? 

Sustainability is core to RCF’s business. Our endeavour is to minimise carbon foot print. We have brought out our first Sustainability Report for the year 2012-13 last year. 

 

We have taken a number of initiatives to reduce energy consumption substantially at both of our plants – Trombay and Thal (Maharashtra). For example, at Thal plant the energy consumption has come down from 6.4 G Cal per tonne of urea to 5.9 G Cal per tonne. This has also helped us to save gas. 

 

In addition, RCF has been focusing on water management to bring down the water usage and conserve water at our plants. To meet the water requirement of our Trombay plant, we have set up sewage treatment plant, which treats 5 million gallons (MG) of sewage (provided by BMC) to produce 3 MG of pure water per day. In fact, we are going to set up another sewage treatment plant at Trombay of similar capacity. The treated water will be used not just by RCF but also by BPCL. 

 

RCF adheres to stringent emission norms. For example, we treat NOx emission at Trombay to convert it into nitrogen and oxygen, thereby earning Certified Emission Reduction (CERs) certificates, which can be traded.

 

Besides, we also invest in research which results in developing efficient, eco-friendly products for our customers. For example, our Neam-coated urea is better absorbed by the soil, hence farmers require less urea for given area of land.

 

How do you manage your solid waste?

We have only two solid wastes – spent catalyst and gypsum. While spent catalyst is given back to authorised dealers, gypsum is used to make load-bearing wall panel, known as RapidWall, and given to cement plants. RapidWall panels, which are alternative to conventional building material like bricks/concrete blocks, can save scarce natural resources like soil, river sand, water, etc, thus protecting the environment.

 

The price of domestic gas is likely to be hiked. How will it impact fertiliser companies? 

With increase in gas prices production cost of urea will go up. As a result, the government’s subsidy burden will increase. Hence, in the long run, urea prices have to go up which will also ensure balanced fertilisation. Urea companies may not be affected since gas price is pass through. However, the gas price hike will increase these companies’ working capital requirement. 

 

We have put forward our concerns to the government, who, we believe, will take a right decision after consulting all the stakeholders.

 

What are your long term plans for RCF? 

RCF will continue to be a pioneer company in the field of fertilisers and chemicals. We are embarking on number of projects in India, including Thal III and Talcher. We are also exploring the possibility of forming JVs abroad for setting up nitrogenous and phosphatic fertiliser plants in the resource rich countries of Africa and Middle East. 

 

In fiscal year 2013-14, RCF recorded a turnover of Rs 6,588 crore and a net profit of Rs 250 crore. In the next five years, we aim to double our turnover and profit.