Godavari Fertilisers to up capacity

Godavari Fertilisers and Chemicals Limited (GFCL) is planning to increase its production capacity. The plant currently produces over a million tonnes of fertilisers per year.

Speaking to mediapersons here today, GFCL managing director K A Nair said, "The demand for Godavari DAP fertiliser brand is on the rise in Andhra Pradesh as well as in other states. We are, therefore, planning to increase the capacity for which a feasibility study is being conducted. We expect the report in a few months."

To augment the storage capacity for key raw materials, the company is constructing a 10,000-tonne atmospheric ammonia storage tank at an investment of around Rs 20 crore. The civil work on the construction of the storage tank has already commenced while the fabrication work is expected to start after the monsoon. Nair said the tank was scheduled to be completed by March 2007. It has also built two 1,5000 tonne capacity phosphoric acid solution tanks at an outlay of Rs 5 crore this year.

The company imported around 1.2 million tonnes of phosphoric acid, ammonia, MOP and MAP through the Kakinada port during 2005-06. Going forward, Nair said the monsoon forecast was quite encouraging. However, he added that if the government further delayed the fertiliser policy that had lapsed this April, it might have an adverse impact. "Any further delay in finalising the policy may adversely affect the fertiliser production," he said.

"Last year, the country imported 23 lakh tonnes of DAP whereas this year contracts have been signed for six lakh tonnes. When we have the capacity to produce 74 lakh tones of DAP in the country, why should we import?" Nair said.

GFCL has a market share of 67 per cent in DAP and 36 per cent in NPK fertilisers in Andhra Pradesh.