On the Up and Up

Hansavivek GUJARAT STATE FERTILISERS COMPANY (GSFC) continues to grow. In its diversification, it has undertaken a number of new projects. It has completed de-botttlenecking of phosphoric acid plant and this scheme has been in operation from June 1979. Among the other projects on hand, the purge gas recovery project is expected to he com- missioned in the second quarter of 1980. The nylon-6 chips project is making steady progress. Civil works are nearly complete, and erection of equipment has started. For the melamine project, the Central government has now released the required foreign exchange. The detailed engineering contract for the project has been awarded. Civil works of the new, 1.32 lakh tonnes per annum, .sulphuric acid plant is in progress. There has been delay, how- ever, in obtaining foreign exchange for import of technology and equipment. The company has also applied for esta blishing additional fertiliser manufacturing capacity at Bharuch based on Bombay High gas. The company's request for conversion of one of the existing ammonia plants, from naphtha feedstock to Bombay High gas, is also pending. Its proposal for expansion of, caprolactum facility is still under consideration of the government. GSFC has performed well during 1979. Total net sales have increased, from Rs 78.04 crores to Rs 105.89 crores, and yielded a gross profit of Rs 26.75 crores, against the previous year's Rs 18-03 crores. Net profit is Rs 8 crores (Rs 4,90 crores). The un- changed dividend of 22 per cent is covered 2.77 times by earnings, against 1,70 times previously. In addition, the director have proposed to offer a gift of shares to the shareholders on a one- for-three basis. They have also recorded their intention to repeat 22 per cent dividend on the expanded capital, after the proposed bonus issue. The company produced during 1979 a total of 5,33,172 tonnes of fertiliser, against 5,00,482 tonnes in the previous year. The favourable impact of the de-bottlenecking of phosphoric acid plant is being felt on the phosphatic group of plants. Accordingly, production of ammonium sulphate and diam- monium phosphate of 1,86,245 tonnes and 78,927 tonnes, respectively, was the highest so far, although there had been impediments, such as ageing of plants, breakdown of carbon dioxide compressor during. November last, disturbances in the supply of gas, unscheduled shutdown of sulphuric acid plant and almost frequent constraints of power. With the phased programme of heavy replacements and modernisation of plants and maintenance efforts, the management hopes to achieve further improvement in production this year. Production of caprolactum, at 13,939 tonnes. was only marginally higher than that of the previous year