Public Sector Fertiliser behemoth FACT will be undertaking a total investment of Rs 6,500 crore by 2020 to achieve a turnover of Rs 7,000 crore and a profitability level of Rs 300 crore, a top official said.
The company, which has drawn up a 2020 Vision Plan, aims to achieve a fertiliser production of 20 lakh tonne and fertiliser trading level of 10 lakh tonne by 2020, Jaiveer Srivastava, who took over charge as Chairman and Managing Director, told reporters here last night.
"We are going through a very rough patch. There is need to revamp the company and the mission is to turn it around," he said.
FACT, which began commercial production in 1947 and is the first chemical fertiliser plant in India, also needs to modernise its infrastructure which is 50-60 years old.
The company, which has been in the red for quite some time, is aiming to 'unlock' its assets for continuous revenue generation.
"We have lots of assets like landed properties, skilled manpower and buildings. We want to have perennial income from these assets."
There are also plans to convert Ambalamedu Guest House into a 'Centre of Excellence' for national and international conventions, Management programmes and a state-of-art Intellectual centre. An investment of Rs 5 crore upwards is envisaged for this purpose, he said.
There are also plans for capacity utilisation and enhancement of capacity for Ammonia and Urea. These are under active consideration of the government, he said.
Diversification into new pastures, augmenting existing operations, switching over to LNG and putting up new plants which together will catapult the company to a trajectory of steady growth and development by 2020, were some of the projects being envisioned, he said.
The company was targeting a turnover of Rs 3,000 crore in the 2013-14 fiscal.
Last year's production of Factamfos stood at 5,40,000 tonne while those of Ammonium sulphate was at 1,26,000 tonne and Caprolactum at 15,500 tonne.
The CMD said the company's immediate focus is on maximising production and steps have already been initiated to enhance total fertiliser production to 20 lakh tonne by 2020.
Capacity enhancement of Naptha plant by adding a 1000 TPD stream at Cochin Division, setting up a 2800 TPD Ammonia-3500 TPD Urea project at Cochin division are the major projects planned in this regard. These plans form a part of the 12th plan proposal submitted by the firm to the Union Government.
Trading of imported fertilisers has high growth potential and FACT plans to achieve a trading level of one million fertilisers by 2020.
The PSU has entered into an arrangement with MMTC to import two lakh tonne of complex fertilisers and Potash to supplement own production and thereby enhance FACT's presence in the market.
FACT has been appointed as the pool-handling agent for Urea at Cochin Port. The PSU has sought allotment of one lakh tonne of urea for the current fiscal. Trading activities will increase the turnover and revenues of FACT, Srivastava said.
He said FEDO and FEW, the Engineering and Fabrication divisions, had plans to diversify and enter new areas and strengthen the core sector.
FBRL, the joint venture with RCF (Rastriya Chemicals Fertilisers) for making load bearing Gypsum panels, is focusing on product positioning to achieve capacity limits. It is also planning expansion for maximum utilisation of Gypsum.
"We are in the process of negotiating with some projects in southern states,", he said.
