Corporate Presentation

Rashtriya Chemicals & Fertilizers Limited

February 2013
2
Disclaimer
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looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this Presentation or the actual
occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation. As a result, the Company expressly disclaims any obligation or
undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions,
assumptions or circumstances on which these forward looking statements are based.
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laws of any state or other jurisdiction of the United States. The Companys securities have not been and will not be registered under the Securities Act. The Companys financial year ends
on March 31.
3
Presentation Outline
A. Key Themes
B. Corporate Social Responsibility
Appendix A: Board of Directors
Appendix B: Awards & Accolades
Appendix C: Key Business Challenges
Section A
Key Themes
5
Key Themes
Diversified Product Portfolio: Major Urea Player
Efficient Manufacturing Facility with High Capacity Utilization Levels
III
IV
Strong Distribution Network
Major Player in Indian Fertilizer Industry
V
II
Sustained Capital Expenditure & Robust Expansion Plans
Strong In-house Technical Capabilities
VI
VII
Strong Financial Performance VIII
Indian Fertilizer Scenario / Favourable Policy Change I
6
Key Themes
Diversified Product Portfolio: Major Urea Player
Efficient Manufacturing Facility with High Capacity Utilization Levels
III
IV
Strong Distribution Network
Major Player in Indian Fertilizer Industry
V
II
Sustained Capital Expenditure & Robust Expansion Plans
Strong In-house Technical Capabilities
VI
VII
Strong Financial Performance VIII
Indian Fertilizer Scenario / Favourable Policy Change I
3
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1
201314 201415 201516 201617
Urea DAP SSP MOP NPK
Industry Scenario
7
Fertilizer demand forecasts: 2013-14 to 2016-17 in India (mn MT)
Fertilizer product demand & production in India (mn MT)
Source: The Fertiliser Association of India
Share of fertilizers to total dispatches 2011-12
Source: Fertiliser Statistics 2011-12, The Fertiliser Association of India Source: Fertiliser Statistics 2011-12, The Fertiliser Association of India
Global Production & Consumption 2010 (mn MT)
Source: Fertiliser Statistics 2011-12, The Fertiliser Association of India
Urea
Diammonium
Phosphate
Complex
Nitrogen Phosphate
NP Nitro phosphate
NPK Nitro Phosphate & Potash
DAP - Diammonium Phosphate
SSP Single superphosphate
MOP - Muriate of Potash
SOP - Sulphate of Potash
AS Ammonium Sulphate
CAN Calcium ammonium
nitrate
ACI Ammonium chloride
The entire requirement of Potash in the country is met through imports
Competitive Landscape
8
Company
Urea Capacity as on
November 2012 (Mn
tonnes)
Other Products
IFFCO 4.24
NPK, Diammonium Phosphate
(DAP), Phosphates, Complex
NFL 3.23 ----
KRIBHCO 2.59
RCF 2.33
Nitro Phosphate, Ammonium Nitrate
Phosphate
Chambal Fertilizers & Chemicals Ltd. 1.73 ----
Nagarjuna Fertilizers & Chemicals Ltd. 1.52 ----
Major players producing Urea in India
NPK Nitro phosphate and Potassic fertilizers
Source: Fertiliser Statistics 2011-12, The Fertiliser Association of India
Existing Policy Framework
9
Product Policy in effect Type
Effect on Pricing &
Subsidy
Urea
New Pricing Scheme (NPS)
in place since 2003.
Currently NPS-III which is
being continuously
extended 2010 onwards
A group pricing model
based on vintage and
feedstock of Urea
manufacturing plants in
India
Government controlled
pricing
Variable subsidy
Phosphatic & Potassic (P &
K) Fertilizers
Nutrient Based Subsidy
(NBS) Policy in place since
April 2010
A model based on Import
Price Parity.
Market pricing based on
demand-supply balance
Fixed subsidy based on
nutrients contained in the
fertilizer
Extant Government policies governing Fertilizer industry in India for existing capacities
New Urea Investment Policy - 2012
Parameter Old Policy 2008 New Policy 2012
Urea Prices -
Floor & Cap
(IPP)
Fixed Floor Cap Price
of US$250-425/MT
Floating Floor-Cap till gas price is US$14/mmbtu.
Any increase in gas price after that will warrant a change in the floor
i.e. floating floor
Base Price
Brownfield: US$285-310/MT (upto gas price of US$6.5/mmbtu)
Greenfield: US$305-335/MT (upto gas price of US$6.5/mmbtu)
Revamp: US$ 245-255/MT (upto gas price of US$7.5/mmbtu)
Linkage to Gas
prices
Vague
For every US$0.1/mmbtu increase in gas price, Floor-Cap to increase by
US$2/MT (US$2.2/MT for revamp projects) till gas price is
US$14/mmbtu. Only floor increase post that
Urea prices -
% of Import Price
Parity (IPP)
90% for brownfield;
95% for revival; 85%
for revamp
90% for brownfield; 95% for greenfield/revival; 85% for revamp
New Urea Investment policy governing Urea producers in India for new capacities
Product Pricing linked to Import Parity Price(IPP) of Urea
The new policy protects downside risk (high gas price & low IPP scenario) through implicit pass through of gas prices
It also provides a moderate upside (to the extent of RoE of 20% till gas prices of US$14/mmbtu) at high IPP and
moderate to high gas prices compared to the old policy
10
11
Key Themes
Diversified Product Portfolio: Major Urea Player
Efficient Manufacturing Facility with High Capacity Utilization Levels
III
IV
Strong Distribution Network
Major Player in Indian Fertilizer Industry
V
II
Sustained Capital Expenditure & Robust Expansion Plans
Strong In-house Technical Capabilities
VI
VII
Strong Financial Performance VIII
Indian Fertilizer Scenario / Favourable Policy Change I
Major Player in Indian Fertilizer Industry
12
RCF, a Mini Ratna Public Sector Undertaking, was established in 1978
consequent to the reorganization of Fertilizer Corporation of India
The Government of India owns 92.5% of its paid up share capital
RCF has a market cap of Rs. 28,081mn
1
and is listed on BSE and NSE
RCF has been a consistent profit making / dividend paying company since
inception
A large producer of Nitrogenous and Complex Fertilizers having capacity
of ~3 Mn Tonnes and plans to increase it to ~4.3 Mn Tonnes by FY 2017
Diversified portfolio with additional revenue streams
from bulk industrial chemicals / trading of fertilizers
Strong Industry
Position
Experienced
Management
Team
4
rd
largest Urea
manufacturer in
India
Premium Fertilizer
brands of Urea
(Ujjwala), Complex
Fertilizers (Suphala)
etc. have high
degree of brand
recall & patronage
Established Track
Record
Large existing
operating facilities
Strong market
network to handle
and market huge
quantities of
fertilizers ISO-
14001-2004,
OHSAS- 18001-
2007 & ISO- 9001-
2008 operating
Units
Operational
Excellence
Employing efficient
manufacturing
processes
Multi product ,
integrated network
of plants facilitating
operational
flexibility and
scalability
Awarded MOU
Excellent Rating by
GOI for the past
several years
Value
Additions
Focus on process
improvement &
energy efficiencies
Revamp of
Ammonia and Urea
plant at Thal has
been recently
carried out leading
to increase in
capacity by about
3LMT of Urea and
energy savings by
0.6 Gcal/MT of
Ammonia
A 10 MTPD 100%
Water Soluble MAP
Plant has been set
up as a R&D
initiative
Investing for the
Future
Augmenting
capacity through
expansions and
diversifications
through new
technologies and
processes
Scouting for
overseas joint
ventures for setting
up of fertilizer
capacities and thus
obviating import
dependencies
Embarking upon
trading of fertilizers
in a big way
Board has
significant
experience in
leadership roles
Management team
with significant
market and
operation expertise
in fertilizers and
process chemicals
1
as on February 18, 2013
Business Structure
Nitrogenous
Fertilizers
Urea
Manufactured & Imported
SALES
50%
36%
1%
13%
EBIDTA
62%
38%
P&K Fertilizers
Complex Fertilizers
Suphala 15:15:15
ANP 20:20:0
DAP, MOP, Complexes
Imported
Specialty Nutrients
Bio Fertilizers
Micro Nutrients
Water Soluble Fertilizers
Industrial
Chemicals
Used in various Industries
like Pharmaceuticals, Drugs,
Dyes, Civil Aviation,
Pesticides etc
13
FY2012
14
Key Themes
Diversified Product Portfolio: Major Urea Player
Efficient Manufacturing Facility with High Capacity Utilization Levels
III
IV
Strong Distribution Network
Major Player in Indian Fertilizer Industry
V
II
Sustained Capital Expenditure & Robust Expansion Plans
Strong In-house Technical Capabilities
VI
VII
Strong Financial Performance VIII
Indian Fertilizer Scenario / Favourable Policy Change I
Diversified Product Portfolio: Major Urea Player
RCF manufactures and Markets
Various Fertilizers and Chemicals
which have a high degree of brand
recall and patronage.
Urea: RCF enjoys a 10.7% market in
Urea Sector and its Urea is sold under
the popular brand name Ujjwala.
Complex Fertilizers Sold under the
brand name Suphala RCF produces
complex fertilizers under the 15:15:15
& 20:20:0 Grades the same enjoy about
5.4% market share.
Speciality Fertilisers Bio-Fertilizers
(Biola), Micro nutrients (Microla) and
Water Soluble Fertilizers (Sujala)
Trading RCF also trades in Imported
Fertilizers like Urea, DAP , MOP and
other indigenous phosphatic fertilizers
like SSP etc.
Industrial Chemicals such as methanol,
concentrated Nitric Acid, Ammonium
bi-carbonate, methylamines, AN Melt &
formic acid etc which are used in
diversified applications
Diversified Product Portfolio Production Performance
Product Capacity FY10 FY11 FY12 FY13 9M
Urea - Thal* 1.707 1.782 1.783 1.773 1.406
Urea - Trombay 0.330 0.307 0.341 0.336 0.292
Suphala 15:15:15 0.300 0.490 0.447 0.458 0.364
ANP 20:20:0 0.270 0.017 0.158 0.192 0.135
Industrial Products 0.163 0.119 0.151 0.167 0.122
Qty in Million Tonnes
* Capacity enhanced by 0.3 Million Tonne from April 2012 upon revamp
Sales Performance
Prime Fertilizers Unit FY10 FY11 FY12 FY13 9M
Urea MTPA 2.095 2.154 2.052 1.654
Suphala 15:15:15 MTPA 0.487 0.45 0.44 0.318
ANP 20:20:0 MTPA 0.016 0.152 0.177 0.114
Imported Urea MTPA 0.767 0.832 1.093 0.83
Traded MOP,DAP,NPK MTPA 0.717 0.466 0.322 0.161
Specialty Fertilizers &
Industry Chemicals Unit FY10 FY11 FY12 FY13 9M
Biola MT 303.80 254.25 198.76 76.95
Microla KLS 149.39 143.31 142.00 105.95
Sujala MT 3697.72 4002.09 3788.93 1737.43
Industrial Chemicals 000 MT 90.72 127.34 143.99 95.91
15
Source: Company
Sustained Operational Efficiency
16
The integrated and multi plant set up and further the optimum product mix approach ensures operational flexibility and
scalability based on market dynamics and process constraints.
7.11
7.09
7.15
7.36
6.9
7
7.1
7.2
7.3
7.4
7.5
FY10 FY11 FY12 9MFY13
Trombay Urea V
Energy Gcal/MT
6.30
6.33
6.36
6.37
6.20
6.25
6.30
6.35
6.40
FY10 FY11 FY12 9MFY13
Thal Urea
Energy Gcal/MT
94.1
94.3
94.1
94.17
97.59
97.6
97.7
97.6
98.2
98.3
98.2
98.28
93
94
95
96
97
98
99
FY10 FY11 FY12 9MFY13
N2 P2O5 K2O
Suphala Efficiency
N
u
t
r
i
e
n
t

E
f
f
i
c
i
e
n
c
y

%
85.8
92.84
95.67
92 92.1
94.8
93.8
89.7
84
86
88
90
92
94
96
98
FY10 FY11 FY12 9MFY13
N2 P2O5
N
u
t
r
i
e
n
t

E
f
f
i
c
i
e
n
c
y

%
ANP Efficiency
Source: Company
17
Key Themes
Diversified Product Portfolio: Major Urea Player
Efficient Manufacturing Facility with High Capacity Utilization Levels
III
IV
Strong Distribution Network
Major Player in Indian Fertilizer Industry
V
II
Sustained Capital Expenditure & Robust Expansion Plans
Strong In-house Technical Capabilities
VI
VII
Strong Financial Performance VIII
Indian Fertilizer Scenario / Favourable Policy Change I
Efficient Manufacturing Facility
18
Trombay Unit
Multiproduct integrated fertilizers & process chemicals factory in Mumbai spread across
765 acres (including township)
ISO 14001, OHSAS- 18001 & ISO- 9001 accredited
Manufactures Ammonia, Urea, Suphala, ANP, Methanol, Nitric Acid, Sulphuric Acid, etc
A 5 MGD plant to process Sewage Water
Thal Unit
Large producer of Urea along with Industrial Chemicals located 100 kms south of Mumbai
spread across 997 acres (including township)
ISO 14001, OHSAS- 18001 & ISO- 9001 accredited
Manufactures Ammonia, Urea, Methylamines, Formic Acid etc.
Captive power capacity of 237,600 mwh
Manufacturing Capacity
Trombay Unit Thal Unit
Major Products
Capacity
(MTPD)
Major Products
Capacity
(MTPD)
Ammonia 1,395 Ammonia 3,500
Urea 1,000 Urea 6,060
Industrial Chemicals
415
Industrial Chemicals
90
Suphala 15:15:15 1,200
ANP 20:20:0 900
Capacity Utilization
Products
Capacity
Mn Tonne FY 10 FY 11 FY 12
Ammonia 1.4025 110.26% 110.71% 108.68%
Urea -Trombay 0.330 93.03% 103.33% 101.82%
Urea - Thal 1.707 104.39% 104.45% 103.87%
Suphala
15:15:15 0.300 163.33% 149.00% 152.67%
ANP 20:20:0 0.270 6.32% 58.52% 71.11%
Industrial
Chemicals 0.163 89.47% 92.64% 102.45%
Strong Asset Base with net block of Rs. 12,456mn as on March 31, 2012 & total land area of 1,762 acres
Source: Company
19
Key Themes
Diversified Product Portfolio: Major Urea Player
Efficient Manufacturing Facility with High Capacity Utilization Levels
III
IV
Strong Distribution Network
Major Player in Indian Fertilizer Industry
V
II
Sustained Capital Expenditure & Robust Expansion Plans
Strong In-house Technical Capabilities
VI
VII
Strong Financial Performance VIII
Indian Fertilizer Scenario / Favourable Policy Change I
Significant Market Share & Strong Distribution Network
20
Urea Market Share
Markets Industry Sales RCF Sales %
Primary 6,922 1,607 23.2
Secondary 10,340 755 7.3
Tertiary 10,473 705 6.7
West Bengal 1,274 77 6.1
Total 29,477 3,145 10.7
NPK Market Share
Markets Industry Sales RCF Sales %
Primary 5,973 447 7.5
Secondary 2,499 31 1.3
Tertiary 2,088 86 4.1
West Bengal 813 60 7.4
Total 11,396 625 5.5
MOP Market Share
Markets Industry Sales RCF Sales %
Primary
1,145 115 10.0
Secondary
509 27 5.2
Tertiary
924 39 4.2
West Bengal
302 17 5.6
Total
2,992 218 7.3
No. of Dealers Across Markets
Markets
RCF Dealer
Nos %
Primary 4,399 69.67
Secondary 996 15.77
Tertiary 788 12.48
West Bengal 131 2.07
Total 6,314 100
RCF Primary Markets RCF Secondary Markets
Maharashtra
Andhra Pradesh
Karnataka
Gujarat
Madhya Pradesh
Tamil Nadu
Chattisgarh
Uttar Pradesh
Bihar
Delhi
Haryana
West Bengal
Punjab
Qty in 000 MTs for
2011-12
Source: Fertilizer Monitoring System of Department of Fertilizer
21
Key Themes
Diversified Product Portfolio: Major Urea Player
Efficient Manufacturing Facility with High Capacity Utilization Levels
III
IV
Strong Distribution Network
Major Player in Indian Fertilizer Industry
V
II
Sustained Capital Expenditure & Robust Expansion Plans
Strong In-house Technical Capabilities
VI
VII
Strong Financial Performance VIII
Indian Fertilizer Scenario / Favourable Policy Change I
Sustained Capital Expenditure towards De-bottlenecking
$14 mn Nov 2009
ANP Granulation
Project
State of art plant with Granulation
technology with ability to produce
multiple grades of complex
fertilizers 900 metrics tonnes
per day of ANP
$21 mn Mar 2010
Methanol Revamp
Project
Increase the production up to 220
MTPD and reduction in energy
consumption by about 1 Gcal/mt.
$15 mn Jun 2010
Rapidwall Plant
To derive value addition from by
product Gypsum generated in
Phosphoric acid plant
Capacity to produce about
14lakh sq metres of rapidwall
panels
$59 mn
2012 &
2013
Ammonia/Urea
Revamp Project at
Thal
Energy Reduction by 0.6 Gcal/MT
of Ammonia and Increase in
Urea capacity by 0.3 Million
Tonne
Capitalization Cost Commissioning Year Benefits Envisaged Project
22
Source: Company
Robust Expansion Plans : New Projects / Initiatives
Project Deliverables Status
1.27 million MTPA
Urea plant at Thal
Thal Expansion
Preferred LSTK bidder identified
PIB/CCEA Approval awaited
Estimated
Capex
$783 mn
Completion
Period
~3 Years
1.27 mn MTPA
Urea plant +
facility to produce
800 MTPD of Nitric
acid & 1000 MTPD
of Ammonium
Nitrate
Coal Gasification
based fertilizer &
chemical complex at
Talcher on a JV basis
with Coal India &
Fertilizer Corporation
NIT for gasification on BOO
basis is issued
Tripartite MoU between RCF, CIL
and FCIL is signed.
$1111 mn +
$555 mn for
coal
gasification
on build
own operate
basis
~3.5
Years
1.27 million MTPA
Urea plant
Fertilizer Project in
Ghana on a Joint
Venture basis
Topography & Geotechnical
Study of site is being carried out
Pricing of Gas awaited from
Government of Ghana
$1300 mn
~3.5 Years
0.50 million
MTPA GSSP plant
at Thal
Granulated Single
Super Phosphate at
Thal
Evaluation of Bids received for
setting up of Sulphuric acid a
raw material is being carried out.
MOEF Approvals awaited.
$56 mn
~2 Years
Assured supply of
Potash of about
2MMTPA at
competitive rates
Long Term
arrangement for
sourcing Potash
Company is yet to enter into
firm arrangements for this
project
Not Finalized
23
Source: Company
24
Key Themes
Diversified Product Portfolio: Major Urea Player
Efficient Manufacturing Facility with High Capacity Utilization Levels
III
IV
Strong Distribution Network
Major Player in Indian Fertilizer Industry
V
II
Sustained Capital Expenditure & Robust Expansion Plans
Strong In-house Technical Capabilities
VI
VII
Strong Financial Performance VIII
Indian Fertilizer Scenario / Favourable Policy Change I
Strong In-house Technical Capabilities
Strong in house team of qualified professionals to
oversee commercial activities and operations.
Frequently scouting for new technologies and
adopting best practices.
Has a strong vendor arrangement ensuring timely
availability at competitive prices.
Operations team capable to maneuver plant loads
with high skill and efficiency meeting product mix
demand/ requirements
25
Procurement & Operations Research & Development
Research & Development Division has developed Bio-
fertilizer Biola, liquid micronutrient fertilizer Microla
which been successfully commercialized.
Sujala 19:19:19 a multi grade water soluble fertilizer has
been developed and has been successfully commercialized.
A (100% water soluble) Mono Ammonium Phoshphate
(MAP) Pilot plant has been set up for in house consumption
and is expected to be scaled up to commercial production
Excellent team of experienced engineers and
managers conceptualizing expansion plans from
concept to commissioning
The team prepares project reports containing detailed
estimates, implementation schedules and techno-
economic viability of projects
Project Management team employs state of art
project management tools for effective time, cost and
resource management
Project Conceptualization, Evaluation & Commissioning Human Resources
Technically and professionally qualified employees
Very cordial industrial relations scenario
HR policies focus on all round development of all employees
and imparts regular training in various functions like
Marketing, Finance, Operations , Health & safety etc.
High employee productivity value added per employee of
INR 2.26 Mn
Total employee strength of 4104 employees as on 31
st
March 2012
26
Key Themes
Diversified Product Portfolio: Major Urea Player
Efficient Manufacturing Facility with High Capacity Utilization Levels
III
IV
Strong Distribution Network
Major Player in Indian Fertilizer Industry
V
II
Sustained Capital Expenditure & Robust Expansion Plans
Strong In-house Technical Capabilities
VI
VII
Strong Financial Performance VIII
Indian Fertilizer Scenario / Favourable Policy Change I
Quarterly Financial Performance
27
Quarter ended Nine months ended
Rs. Mn 31-Dec-12 31-Dec-11 30-Sep-12
Y-o-Y
Change
31-Dec-12 31-Dec-11
Y-o-Y
Change
Revenue 15,970 16,289 16,998 -1.96% 48,054 39,901 20.43%
EBITDA 1,453 1,198 1,706 21.27% 3,831 3,165 21.03%
% Margin 9.10% 7.35% 10.03% - 7.97% 7.93% -
EBIT 1,112 890 1,367 24.95% 2,819 2,268 24.31%
% Margin 6.97% 5.47% 8.04% - 5.87% 5.68% -
Net Income 739 539 829 37.13% 1,634 1,357 20.37%
% Margin 4.63% 3.31% 4.88% - 3.40% 3.40% -
Note: EBITDA = Revenue Less Total Expenses (excl. D&A and Interest Expense); EBIT = Revenue Less Total Expenses (excl. Interest Expense)
Seasonal impact seen in Q3 performance
Source: Annual Report, Quarterly Report
Strong Financial Performance over the Years
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Steady EBITDA (Rs.Mn.) & margins
Increasing PAT (Rs.Mn) over the years
Steady Turnover (Rs.Mn.)
Increasing Net worth (Rs.Mn.)
Revenue Breakup
Debt to Equity; Dividend Payout; BV
FY09 sales were high due to high trading sales
Source: Annual Report
Section B
Corporate Social Responsibility
Corporate Social Responsibility
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RCFs CSR goals aim at providing benefit to needy, education, increasing awareness on farming and improving the
quality of life of its stakeholders towards nation building
The approach is holistic and oriented towards community and stakeholders
CSR model is integrated into business strategy
APPENDIX A
Board of Directors
Highly Qualified Board & Experienced Management
Mr. R.G. Rajan
Whole Time Chairman
& Managing Director
Mr. Rajan has been the Whole Time Chairman & Managing Director of RCF since November 2010.
He has over 30 years of experience spanning various fields of conceptual design, project design and
project management among others
He holds a degree in Chemical Engineering and Masters degree in Business Administration
He also holds the additional position of Chairman & Managing Director in National Fertilizers Ltd.
Presently, he is also the Chairman of Fertilizer Association of India
Mr. Gautam Sen
Director (Finance)
Whole Time Director
Mr. Sen has been the Director (Finance) since July 2008.
He holds a post graduate degree in Commerce and is a Chartered Accountant and Cost Accountant
He has vast experience in Finance and Accounts Discipline in Private and Public sector organizations
Prior to his joining RCF, he was working with Bharat Earth Movers Limited as Executive Director
(Finance)
Mr. C.M.T. Britto
Director (Technical)
Whole Time Director
Mr. Britto was appointed as a Director in April 2012
He hold a degree in Chemical Engineering from NITSurathkal, Karnataka
He joined RCF in 1980 and in his long career spanning more than 30 years, he has worked in various
capacities in Technical Services, Ammonia, Sulphuric acid, Concentrated Nitric Acid plants and in
development of projects for the company
Mr. A. Ghasghase
Director (Marketing)
Whole Time Director
Mr. Ghasghase was appointed as a Director in August 2012
He is a Science graduate with Honors, a Law graduate and also has a Masters Degree in Business
Administration with specialization in Marketing
He joined RCF in 1980 and has held various positions in areas of Marketing in Fertilizers as well as
Industrial Chemicals, port logistics, etc.
Dr. V. Rajagopalan
Govt. Nominee
Non Executive Director
Mr. Rajagopalan is an IAS officer and holds a very senior position in Government of India.
He is also a Director on the Board of KRIBHCO Ltd., HOCL, MFL, HAL and Bengal Chemicals &
Pharmaceuticals Ltd.
Mr. Sham Lal Goyal
Govt. Nominee
Non Executive Director
Mr. Goyal is an IAS Officer of 1986 batch. He is a Joint Secretary with the Ministry of Chemicals and
Fertilizers, Department of Fertilizers
He is also a Director on the Board of NFL,FACT, KRIBHCO Ltd., ICS Senegal, FCIL and HFCL.
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APPENDIX B
Awards & Accolades
Awards & Accolades
MOU excellent rating by Department of Public Enterprise (Ministry of Heavy Industries & Public Enterprises) for the year
2011-12
Indian Chamber of Commerce 'PSE Excellence Award' for Environmental Excellence and Sustainable Development under
Mini-Ratna category
FAIs Mahadhan Award for 2011-12' for its excellent performance in Fertilizer Extension Services
National Award for Excellence in Cost Management conferred by The Institute of Cost Accountants of India
Award for Innovation in Learning for excellence in learning and Development category -World Education Congress
Global Awards 2012
Dun & Bradstreets Award for best PSU in the field of Chemicals and Fertilizers
Trombay Unit received Annual Environment Excellence Award-2012 by Greentech Foundation for outstanding
performance in Environment Management in Gold category, Golden Peacock award for excellence in Environment
management -2012 by Institute of Directors in Gold category and "Production, Promotion and Marketing of Bio-fertilizers"
for 2012 from the Fertilizer Association of India
Thal Unit received Greentech foundation, New Delhi GOLD Award in fertilizer Sector for outstanding achievements in
Safety Management for the year 2012
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APPENDIX C
Key Business Challenges
Key Business Challenges
Fluctuations in global raw material prices & natural gas prices
Risks in relation to movements in exchange rate
High cost of domestic gas / shortage of gas
Agro-climatic conditions can have an impact on the performance of the company
Stringent terms in gas supply and transportation contracts and their operability
Recession in international chemical market leading to un-remunerative domestic prices
Resistance by farmers to price hike in fertilizers
Large scale of operations in international chemical market may lead to lower pricing power
Policy related issues
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