MANGALORE FERTILIZERS AND CHEMICALS LTD.

Company Profile

Godavari Fertilisers And Chemicals Limited (GFCL), incorporated in 1981, has completed 25 years of its existence. GFCL became a Murugappa Group company in July 2003 when Coromandel Fertilisers Limited (CFL) acquired the stake of Government of Andhra Pradesh in the process of disinvestment. With a view to foster business relations, Foskor of South Africa and GCT of Tunisia - the two major raw material suppliers have been made shareholders with 5% each in the equity of the Company. IFFCO, the other major shareholder and co-promoter of the Company, has also divested its shareholding in favour of CFL on 12th April 2007. Consequent to this, the Company has become a subsidiary of CFL. Presently, CFL holds 74.92% of the capital of the Company and the remaining is held by public.

The Company’s approximately 1.2 Million MT manufacturing facility is located at Kakinada, very close to the sea port and has excellent infrastructure. The plant is strategically located to derive advantages of logistics- inbound and outbound. The company has superior product and process technology and the production efficiencies are comparable to the best in the world. The plant with 8.32 lac MT name plate capacity in 2003, when it was acquired by Murugappa Group, is now tuned to produce more than 1.15 million MT per annum with minimum additional investment in capital assets. The company is one of the low cost producers of DAP and complex fertilizers using imported phosphoric acid and has built in flexibility to change the product mix with ease - both in terms of production and marketing. The Company mainly markets its products through 9 regional marketing offices in 6 States besides directly selling from the Plant. The Company has a network of more than 8000 dealers. The demand for Godavari brand products is quite strong and realizing this potential, the company has embarked upon an expansion project to add 4.25 lac MT of additional capacity by June 2009. Raw material availability is one of the major factors in the successful operation of a fertiliser company. GFCL has strong raw material supply linkages through long term supply agreements with major international suppliers.

Management:  The following are the Board of Directors of the Company.

Sl. No.	Name	Position held in Board	Committee Membership
1.	Dr.Vijaya Mallya	Chairman	-
2.	Shrikant.G.Lupovel	Director	Audit Committee R & N Committee Shareholders Grievance Committee
3.	Pratap Narayan	Director	Audit Committee R & N Committee Shareholders Grievance Committee
4.	N.Sunder Ranjan	Director	Audit Committee R & N Committee
5.	B.S.Patil, IAS	Director	-
6.	Deepika Anand	Managing Director	Shareholders Grievance Committee
7.	K.Prabhakar Rao	Director Workers

Information about Plant and Infrastructure

I) Plant

A.    Manufacturing Di-Ammonium Phosphate (DAP)(18:46:0) and flexibility for production of 20:20:00:15 & NPK Grades like 17:17:17;19:19:19;14:35:14;12:32:16.

B.     Pesticide formulations unit for manufacturing 1200 KL per annum.

      C.    Eco-friendly Bio-fertiliser Unit.

II) Infrastructure at Kakinada

            The DAP plant is located in 730 acers of land at Kakinada with extensive Green Belt all around plant. The offsite facilities are indicated below:

Production

            GFCL Production Performance over the Years

Year	Production
	DAP (MT)	20:20:0 (MT)	17:17:17 (MT)	14:35:14 (MT)	10:26:26 (MT)	12:32:16 (MT)	Total (MT)
1998-99	340171	-	-	-	-		340171
1999-00	337299	3037	-	-	-		340336
2000-01	367941	17164	-	-	-		385105
2001-02	531796	1901	-	-	-		533697
2002-03	613409	26761	-	-	-		640170
2003-04	628969	72151	-	-	-		701120
2004-05	666845	102655	-	-	-		769500
2005-06	557797	145334	-	-	-		703131
2006-07	504191	164024	29227	37922	7347		742711
2007-08	740613	5735	2258	14109	10587	33505	806807
2008-09	615729			166680	41218	64820	888447

Financial Highlights

Statement Indicating Year-wise Production, Turnover & Profitability

Year	Production (in MT)	Sales (in MT)	Turnover (Rs. in Cr.)	Profit/Loss (Rs. in Cr.)
1999-00	3,85,105	4,14,100	462.65	14.52
2000-01	5,33,697	6,29,803	740.53	30.16
2001-02	6,40,170	7,37,052	905.46	31.79
2002-03	7,01,120	8,85,264	1041.25	7.99
2003-04	7,69,500	8,90,226	1056.24	(-) 11.85
2004-05	7,03,131	9,46,240	980.74	1.95
2005-06	7,42,711	7,50,000	730.01	(-)13.62)
2006-07	8,06,807	7,80,583	887.21	7.15
2007-08	8,88,447	8,94,391	1193.63	17.09
2008-09	10,24,307	10,31,931	1518.48	26.10

Regional Marketing Offices

Andhra Pradesh: Kakinada, Vijayawada, Kurnool, Hyderabad

Uttar Pradesh: Lucknow

Madhya Pradesh: Bhopal

Maharashtra: Nagpur

Karnataka: Raichur

Chattisgarh: Raipur

West Bengal: Kolkata

Tamil Nadu: Chennai

   The Company started Marketing operations from kharif 1985. Company popularised the product by the brand name of "Godavari DAP" and "Godavari 20:20:0".

The company manufactures the following products:

• DAP 
• 14:35:14
• 12:32:16
• 10:26:26

The company also markets other Nitrogenous & NPK grades.

·         Urea

·         Imported MOP

·         Zinc Sulphate

·         20:20:0 etc.

The company is the DAP Market Leader in A.P. State of India with a Market share exceeding 68%. The company enjoys an All India DAP Market share of 11% in 2006-2007.

Production and Sales

Year	DAP(MTs)		20:20:0 (MTs)		17:17:17 (MTs)		14:35:14 (MTs)		10:26:26 (MTs)		12:32:16
	Prod	Sales	Prod	Sales	Prod	Sales	Prod	Sales	Prod	Sales	Prod	Sales
1997-98	340171	304769	-	-	-	-	-	-	-	-	-	-
1998-99	337299	319123	3073	3037	-	-	-	-	-	-	-	-
1999-00	367941	380441	17164	17124	-	-	-	-	-	-	-	-
2000-01	531796	608981	1901	22101	-	-	-	-	-	-	-	-
2001-02	613409	693994	26761	55560	-	-	-	-	-	-	-	-
2002-03	628969	567983	72151	63485	-	-	-	-	-	-	-	-
2003-04	769500	790253	102655	107290	-	-	-	-	-	-	-	-
2004-05	557797	7711640	145334	151249	-	-	-	-	-	-	-	-
2005-06	504191	465828	164024	164752	29227	22296	37922	19291	7347	158	-	-
2006-07	740613	595495	5735	7855	2258	5912	14109	28729	10587	7329	33505	29992
2007-08	615729	625220					166680	131203	41218	47501	64820	66310

Coromandala Fertilizeres

Company History

1959

Independent India realised that its largely agrarian economy needed a thrust in the right direction for its people to benefit and prosper. Prime Minister Jawaharlal Nehru invited the Ford Foundation to carry out a comprehensive study of Indian agriculture and give its recommendations. The study revealed a crucial need to produce indigenous chemical fertilisers to increase agricultural output to meet the country’s ever-increasing food demand.

1961

An industrial licence was granted to three companies – IMC (the world’s largest producer of fertilisers then), Chevron Chemical Company (a major American player in fertilisers / industrial chemicals) and E.I.D.Parry (India) Limited (India’s largest private fertiliser producer with 60 years’ standing) – to set up a giant chemical fertiliser complex.

The first Board of Directors was constituted on October 16, with H V R Iengar as its Chairman. Others on the Board included J Q Cope, Charles Dennison, J K John, Dr L Bharat Ram, A W Horton, J T Gibson, S C Dholakia, V K Rao and Raja Rameswar Rao. L L Powell and P J Davies were the first Managing Director and Dy. Managing Direct respectively. Donald I Meikle was the first Company Secretary.

1962

Market development commence in the form of a “seeding programme”. E.I.D. Parry was appointed CFL’s principal sales agent in India for our product aptly name “GROMOR” epitomising the idea of GROwing MORe food for the nation.

A 483.5 acres site was identified at Visakhapatnam along the “Coromandel” coast (India’s east coast), from where the Company derived its name. The land, taken under a 50-year lease from Visakhapatnam Port Trust, has a private jetty just 5 km from the plant site. With a capital investment of Rs.50 crores, Lumus Company undertook construction of the plant.

1964

On March 2, Dr Bharat Ram was elected Chairman of CFL’s Board of Directors. He was the longest-servicing Chairman, with an innings of 37 years. Addressing the AGM as Chairman on July 15, 2004, he nostalgically commented, “In my long innings in public life, business and industry, I have had varied experience. But I would like to affirm today, the last occasion when I shall address you as the Chairman of CFL, that no assignment has given me such pleasure and a sense of fulfillment as working with you all. FCFL has been a role model, a commonwealth, in co-operative effort to build a great company, anchored in values and every aspect of what is commonly known today as “corporate governance”. You have indeed won my prizes; but your most precious treasure is the loyalty and sense of belonging of the men and women who were with you earlier, and who are happily still with you.”

1967

On December 10, Mr. Morarji Desai, the then Deputy Prime Minister of India, dedicated the fertiliser plant to the nation, in the presence of Mr. Kasu Brahmananda Reddy, the Chief Minister of Andhra Pradesh. Grandhi Ramamurthy, a local farmer, was given the honour of cutting the ribbon!

The 245 ft high Urea prill tower was one of the tallest industrial structures in India then. Though not operational today, it still presents a formidable sight, towering against the skyline, recalling old memories for those who were associated with its operation.

1970
The “GROMOR farmer” was developed as a marketing symbol and introduced on our bags to spread the message of “higher yields, bigger profits”. Today, farmer house holds across our addressable markets identify CFL’s brand by this symbol.

1971
The “Coromandel Lecture” was instituted to provide a forum for thinkers, economists, social and agricultural research scientists around the world to share their thoughts on issues of global concern such as food security, environment and extension activity.

The “Borlaug Award”, instituted in honour of Nobel Laureate Dr Norman Borlaug (father of the wheat revolution), honours eminent men of science and industry for their distinctive contribution to the cause of agriculture. This reflects CFL’s concern to develop a symbiotic interaction between agriculture, industry and academia.

1976
Our fertiliser retail outlet at Secunderabad got a boost with garden lovers fervently seeking small quantities of fertilisers for bigger and richer blooms and fruit.

1977
CFL completed a decade of participation in augmenting agricultural production for the nation. Its vital role covered soil nourishment, sharing agronomic expertise, supporting agricultural education and rewarding research – all of which had progressively grown in width and depth during the decade.

1980-90
Plans to diversify were afoot. A “groundbreaking” ceremony was performed in November 1980 at Chilamkur (Andhra Pradesh), which is rich in limestone deposits, to set up a one million tonne cement plant. The fully computerised plant (designed by world-renowned cement manufacturer Krupp Polysius of West Germany) was commissioned in 1984. It was later sold to India Cements in 19903

1995-99
Chevron Chemical Company divested its stake in favour of E.I.D.Parry (I) Limited in 1995, followed by IMC in 1999. E.I.D. Parry (I) Limited acquired majority shareholding in CFL, making it a part of the Murugappa Group, a highly reputed industrial conglomerate.

2000
CFL’s growth over the years has been punctuated with several path-breaking modernisation / upgradation programmes. Begun in 1975, the programme gathered momentum in 1992-95, when the Sulphuric Acid, Phosphoric Acid and Complex Granulation plants were debottlenecked. Production capacity wend up from the original 247,000 MT to 400,000 MT. On September 29, Mr. N Chandrababu Naidu, the then Chief Minister of Andhra Pradesh, inaugurated a new complex granulation train. This further augmented capacity to 600,000 MT, a boon to the entire farming community.

2003
On July 12, CFL consolidated its business by acquiring controlling stake in Godavari Fertilisers & Chemicals Limited (GFCL). To optimise synergy of operations in the Group, the Farm Inputs Division of E.I.D Parry (I) Limited was merged with CFL on December 1.

2004
Mr. V Ravichandran took over as President & WTD on January 22.  Mr. A Vellayan took over as Chairman on September 1. Other Directors on the Board are Mr J Jayaraman, Mr.M M Murugappan, Mr. T M M Nambiar , Mr. M K Tandon, Mr. D E Udwadia, Mr. S Viswanathan and Mr. K A Nair. The first post-merger AGM of the Company was held on July 15.

2005
CFL signs a Business Assistance Agreement with Foskor Limited, South Africa.

Locations

CFL's has fertiliser plants in Visakhapatnam, Ennore and Ranipet and Plant Protection Chemicals plant at Navi Mumbai, Ranipet and Jammu. It also has marketing branches in the following states:

·         Madhya Pradesh

·         Chattisgarh

·         Orissa

·         Andhra Pradesh

·         Karnataka

·         Tamilnadu

·         Punjab

·         Haryana

·         Rajasthan

·         Gujarat

·         Maharashtra

·         Kerala

·         Tamilnadu

Safety & Environment

Safety, Health and Environment (SHE) are inviolable ingredients of our corporate alues. We treat the neighbourhood as an important stakeholder, and constantly hold ourselves accountable to them. Our facilities ensure utmost safety to the plant personnel, and our workplaces are ergonomically designed to reduce fatigue, create a cheerful ambience, and minimise exposure to the operating personnel. We treat pollution at source, and have several safety procedures dovetailed in our manufacturing processes. Our endeavour is to avoid generation of waste (through better processes), minimise the impact on the environment (through process modifications) and treat the residual impact.

Pro-actively implemented the Process Safety Management System (PSMS), which helps avoid incidents and accidents where hazardous chemicals are handled. Going beyond mandatory health and safety norms applicable to the industry, we have developed safety standards that have become veritable benchmarks for others.

Committed to adopting the best available techniques to reduce emission levels, and continuously re-engineer our facilities to minimise the discharge impact.

Visakhapatnam Plant has achieved ‘1 million safe man-hours’ for the 36th time, that included 3 million consecutive safe man-hours for the fifth time. The company’s Visakhapatnam and Ranipet facilities achieved perfect 4-4 scores in recent compliance audits for implementation of the Process Safety Management System (PSMS). The Visakhapatnam facility is also certified for OHSAS 18001:1999, an international standard for occupational health and safety.

Environment:

CFL diligently discharges its responsibility towards the environment and the neighborhood:

·         The DCDA technology at the sulphuric acid plant reduces sulphur oxide emission considerably.

·         To avoid sulphur dust emission, India’s first-ever liquid sulphur terminal has been installed at the jetty, which also conserves energy by avoiding burning of fossil fuel.

Effluent treatment plants in our facilities totally recycle effluents; and bag filters ensure effective recovery of rock dust.

·         The Fluorine recovery plant converts fluorine in effluents to hydrofluosilicic acid (a value-added product), a classic example of our ‘wealth from waste’ approach.

·         Rainwater-harvesting schemes have been implemented to improve ground water availability in the plant premises.

·         As part of an extensive afforestation drive, lakhs of trees have been planted around our facilities.

The ultimate accolade for our environment consciousness comes from the greatest auditor of them all - Mother Nature herself - in the form of scores of species of migratory birds regularly flocking to the ‘green belts’ that encircle our plants.

Mission & Vision

Vision

To be the leader in the phosphatic fertiliser industry, producing high quality fertilisers at low cost and giving satisfaction to all stake holders.

Purpose & Mission

To enhance the prosperity of farmer through the supply of quality farm inputs and related services to ensure value for money.

Values & Beliefs

• Adhere to ethical norms in all dealings with shareholders, employees, customers, suppliers, financial institutions and government
• Provide value for money to customers through quality products and services
• Treat our people with respect and concern; provide opportunities to learn, contribute and advance; recognize and reward initiatives, innovativeness and creativity.
• Maintain- an organisation climate conducive to trust, open communication and team spirit - a style of operation befitting our size, but reflecting moderation and humility.
• Manage environment effectively for harnessing opportunities
• Discharge responsibilities to various sections of society and preserve environment.
• Grow in an accelerated manner, consistent with values and beliefs, by continuous organisation renewal.

Products and Services

Gromor 14-35-14:

• Contains nitrogen phosphate and potash.
• Highest total nutrients content (63%)
• N&P ratio same as DAP. But 14-35-14 has extra 14% potash.
• Highest in phosphate (35%)
• Best for cotton, groundnut, chilly, soyabeans, potato, etc.
• Not suitable for tobacco and grapes.

Gromor 28-28-0 :

• Complex with highest N&P in 1:1 ratio
• Unique granulation by coating prilled urea with ammonium phosphate layer.
• Such granule configuration ensures efficient utilisation of nutrients.
• Highly suitable for paddy, wheat.

Gromor 20-20-0-13 :

• A high analysis complex Fertiliser containing all the three major nutrients - Nitrogen, Phosphate and Potash, was launched by CFL in March 2003.
• This complex contains Phosphate and Potash in the ratio of 1:1, the highest among the NPK Fertilisers. Its unique features being :

Paramfos 16-20-0-13

• Ammonium Phosphate Sulphate containing Nitrogen, Phosphate and Sulphur.
• It is the most preferred Fertiliser in drill-sown areas.

Parrygold

• Ammonium Phosphate Sulphate Containing Nitrogen and Phosphate in 1:1 ratio.
• It is an ideal Fertiliser for all crops grown in Sulphur deficient soils.

Parry super (Single Super Phosphete)

• First chemical Fertiliser to be manufactured in India.
• Favoured Fertiliser for dry land areas.
• Controls acidity in soil and increase productivity.