Murugappa group puts GFCL on track

The once-ailing Godavari Fertilisers and Chemicals Limited (GFCL) is now bouncing back, thanks to the initiatives taken by the Murugappa group which took over the company in July 2003.

For the fiscal ended March 31, 2005, GFCL recorded a net profit of Rs 25.92 crore as compared to Rs 10.28 crore in 2003-04. The company was reeling under losses to the tune of Rs 20.24 crore in 2002-03.

On the production front too, GFCL registered a 10 per cent increase from 806.807 metric tonnes in 2003-04 to 888.447 metric tonnes in 2004-05 while the turnover increased from Rs 650.99 crore in 1997-98 to more than Rs 1,000 crore at present.

Speaking to Business Standard, Nagi Reddy, deputy general manager, GFCL, said, "Soon after the take over, stringent measures for achieving enhanced productivity and better sales realisation were initiated. Apart from this, we also took measures for technology upgradation for optimum utilisation of resources."

The capacity of plant was upgraded from 7 lakh tonnes to 1 million tonnes and subsequently to 15 lakh tonnes. Technology-upgradation for boosting production capacity was undertaken at an investment of Rs 100 crore.

GFCL has also entered into an agreement with a firm in Tunisia, South Africa, for continuous supply of raw material, phosphoric acid and ammonia. Every year, the company imports Rs 800 crore worth of raw material from South Africa, Reddy said.