3. present scenario of chemical and fertilizer...

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CHAPTER – 3 3. PRESENT SCENARIO OF CHEMICAL AND FERTILIZER INDUSTRIES

3.1 Profile of Chemical and Fertilizer Industry 3.1.1 Introduction

3.1.2 Global chemical industry scenario

3.1.3 Overview of Indian Chemical Industry

3.1.4 Growth of Chemical Industry

3.1.5 Types of Chemicals

3.1.6 Approaches to Eleventh five year plan

3.2 Introduction to Fertilizer Industry 3.2.1 Current Scenario of Indian Fertilizer Industry

3.2.2 Development and Growth of Fertilizer Industry

3.2.3 Sickness in the fertilizer industry

3.2.4 Professionalisation of manpower for fertilizer sector

3.2.5 Approaches to Eleventh five year plan

3.3 Profile of selected companies in Gujarat.

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CHAPTER – 3

PRESENT SCENARIO OF FERTILIZER

AND

CHEMICAL INDUSTREIS

3.1 PROFILE OF CHEMICAL AND FERTILIZER INDUSTRY

3.1.1 Introduction to Chemical and Fertilizer Industries

The industrial sector plays an important role in economic development. The

current scenario of chemical and fertilizer industries are as follows, growing

at the rate of 10% annually. Indian chemical industry ranks 12th in the world

and significantly forms 12 % of total exports from India and accounting for 2%

of global output. It is currently valued at about Rs. 1,50,000 crores with

expectation to touch more than Rs.4,00,000 crores by the year 2010, creating

13 lakhs job alone at that time. At present India is one of the largest producer

and consumer of the fertilizer. At present there are about 57 large size

fertilizer units in the country, manufacturing a wide range of nitrogenous and

phosphatic / complex fertilizers. Presently fertilizer contributes about 50% to

the total increase in food grain production. Increasing pressure of population

and shrinking land resource demands for vertical expansion of agriculture

where the role of fertilizer will further increase. India has become the third

largest country. Gujarat is located on the western - most part in India and is

one among several federal state in the union of India formed in 1960 as a

separate state. Gujarat over last 42 years has emerged as a leading

industrialized state in the country proving to be the ultimate destination for

many investors both from within and outside India to make profitable

investment. The government of Gujarat has accorded high priority to industrial

development with the objective of achieving balanced growth and generating



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large scale employment for youth both in urban and rural areas and thereby,

improving the living standard of the people.

Figure No. 3.1

State Wise Share in Production of Selected Major Chemicals 2006-07

STATE WISE SHARE IN PRODUCTION OF SELECTED

MAJOR CHEMICALS (2006-07)

Other states (23%)

Punjab (4%) (Gujarat 51%)

T.N. (6%)

U.P (8%)

Maharashtra (8%)

Source: Http://chemicals.nic.in/stat 0107.pdf Gujarat share in India are as follows: Refined Petroleum Products 50%

Drugs and Pharmaceuticals 45%

Chemicals and allied products 31%

Soda Ash 98%

Caustic Soda 35%

Polyester filament Yarn 45%

Textiles 15%

Fertilizers 30%

Market capitalization 30%

Gujarat has witnessed impressive industrial growth / development since

its formation as a state in 1960. Share of manufacturing sector has

increased to



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37.2% in the Gross State Domestic Product (GSDP) during 2002-2003 at

constant (1993-1994) prices as against 20% in 1980-1981. The industrial sector

at present comprises of over 2000 medium and large units and over 292000

small scale units.

Gujarat accounts for 20.4% of fixed capital investment 15.3% of value of

industrial production and 11.4% of value added in industrial sector in the

country. Gujarat has achieved the distinction of being the second largest

industrial developed state in the country.

The Central Statistical Organization (CSO) undertakes an annual survey of

industries (ASI) of industrial units covered under Factories act 1948. As per ASI

results, the value of output in industrial sector in Gujarat was Rs.7161 crores in

1980-81, Rs25793 crores in 1990-91 and Rs.118551 crores in 1999-2000.lt

further improved to Rs.207316 crores in 2003-2004.

Table No: 3.1 Annual Survey Of Industries Result

Source: Central Statistical Organization.

In the 60s, Gujarat was known for production of textiles and its auxiliaries.

Today it has become an important state for the production of different

products and has achieved a large share in various industrial groups in the

country. The sectors which have become important in the industrial economy

Item Unit RS.

1980-1981

1990-1991

1999-2000

2001-2002

2002-2003

2003-2004

% share in India India Reporting

factories No 11208 10904 10904 13950 13180 12831 9.90

No. of employees lakh 7 6 8 7 7 7 9.25

Fixed Capital crore 2685 9314 68724 88758 82358 85565 18.13

Value of output crore 7161 25386 118551 147638 182700 201316 16.07

Value addition crore 1139 3813 19276 16591 22889 43366 19.77



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Gujarat are chemicals, petrochemicals, pharmaceuticals, textiles, minerals

based industries etc.

Table No: 3.2 The Share of important sectors in Industry in Gujarat is as

under

Sr.No Sector No. of factories

Employment (in crores)

Fixed capital investment (in crores)

Value of O/P (in crores)

Net Value((in crores)

1 Chemical and petrochemical

2592 (20.11%)

209529 54866 128888 (62.17%)

33881

2 Textile 1567 (12.21%)

150686 7101 14269 (6.88%)

1848

3 Engineering 3472 (27.08%)

152649 5380 19432 3166

4 Food Processing 1332 (10.38%)

67631 2156 18067 1231

5 Metallurgy 1000 (7.79%)

38457 7808 12904 (6.22%)

1261

6 Non metallic mineral based industry

1257 (3.76%)

53060 5877 5059 (2.45%)

1153

7 All industry 12831 (100%)

728601 85565 207317 (100%)

43336

Source: CSO

It can be observed from the table that chemicals and petrochemicals has

become an important sector having 62% share in the total industrial

production of the state. Engineering has maintained its importance, though

its share is 9.37%. Quite importantly, food industries share has increased to

8.7% in Gujarat economy. And then comes textile with 6.88% and

metallurgical with 6.22% share in total industrial production in the state.

3.1.2 Global Chemical Industry Scenario

The global chemical industry, estimated at US$ 2.4 trillion, is one of the fastest

growing sectors of the manufacturing industry. Despite the challenges of

escalating crude oil prices and demanding international environmental



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protection standards now adopted globally, the chemicals industry has still

grown at a rate higher than the overall-manufacturing segment.

As per industrial reports the pharmaceutical segment contributes

approximately 26% of the total industrial output and approx. 35-40% is

dominated by the petrochemical segment.

Commodity chemicals is the largest segment in the chemicals market with an

approx. size of $ 750 billion while the specialty and fine chemicals segment

accounts for $ 500 billion. Some of the major markets for chemicals are North

America, Western Europe, Japan and emerging economies in Asia and Latin

America. The US consumes approximately one-fifth of the global chemical

consumption whereas Europe is the largest consumer with approx. half the

consumption. The US is the largest consumer of commodity chemicals whereas

Asia Pacific is the largest consumer of agrochemicals and fertilizers.

3.1.3 Overview of Indian chemical industry

The chemical industry is one of the oldest domestic industries in India,

contributing significantly to both the industrial and economic growth of the

country since it achieved independence in 1947. The chemical industry

currently produces nearly 70,000 commercial products, ranging from

cosmetics and toiletries, to plastics and pesticides. It is highly science based

and provides valuable chemicals for various end products such as textiles,

paper, paints and varnishes, leather etc., which are required in almost all

walks of life.

Chemical Industry is an important constituent of the Indian economy. Its size is

estimated at around US$ 35 billion approx., which is equivalent to about 3% of

India's GDP. The total investment in Indian Chemical Sector is approx. US$ 60

billion and total employment generated is about 1 million. The Indian Chemical

sector accounts for 13-14% of total exports and 8-9% of total imports of the

country. In terms of volume, it is 12th largest in the world and 3rd largest in



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Asia. Currently, per capita consumption of products of chemical industry in

India is about 1/10th of the world’s average. Over the last decade, the Indian

Chemical industry has evolved from being a basic chemical producer to

becoming an innovative industry. With investments in R&D, the industry is

registering significant growth in the knowledge sector comprising of specialty

chemicals, fine chemicals and pharmaceuticals.

Table No: 3.3 The Indian Chemical Market Segment wise is as under

Segment Market Value (billion US$)

Basic Chemicals 20

Specialty Chemicals 9

High End / Knowledge Segment 6

Total 35

Source: http://planningcommission.nic.in/aboutus/committee/

The wide and diverse spectrum of products can be broken down into a number

of categories, including inorganic and organic (commodity) chemicals, drugs

and pharmaceuticals, plastics and petrochemicals, dyes and pigments, fine

and specialty chemicals, pesticides and agrochemicals and fertilizers. The

Indian pesticide industry has advanced significantly in recent years,

producing more than 1,000 tons of pesticides annually. India is the 13th largest

exporter of pesticides and disinfectants in the world and in terms of volume;

i t i s the 12th largest producer of chemicals. The Indian agrochemical,

petrochemical, and pharmaceutical industries are some of the fastest growing

sectors in the economy. With an estimated worth of $28 billion, it accounts for

12.5 percent of the country's total industrial production and 16.2 percent of

the total exports from the Indian manufacturing sector. The Indian Chemical

Industry forms the backbone of the industrial and agricultural development of

India and provides building blocks for downstream industries.



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Table No: 3.4 Index of Industrial Production

INDEX OF INDUSTRIAL PRODUCTION

(Base : 1993-94=100) Years B a s i c &

Chemicals Products

Mining & Quarrying

Manufacturing

Electricity

General Index

Weight 140.02 104.73 793.58 101.69 1000 1954-95 105.3 109.8 109.1 108.5 109.1

1995-36 117.1 120.5 124.5 117.3 123.3

1996-97 122.7 118.2 133.6 122.0 130.8

1997-98 140.4 126.4 142.5 130.0 139.5

1998-99 149.7 125.4 148.8 138.4 145.2

1999-00 164.6 126.7 159.4 148.5 154.9

2000-01 176.6 130.3 167.9 154.4 162.6

2001-02 185.0 131.9 172.7 159.2 167.0

2002-03 191.8 139.6 183.1 164.3 176.6

2003-04 208.4 146.9 196.6 172.6 189.0

2004-05 238.6 153.4 214.6 181.5 204.8

2005-06 258.5 154.9 234.2 190.9 221.5

2006-07 282.8 163.1 263.5 204.7 247.0

Growth over the corresponding period of previous year

2002-03 3.7 5.8 6.0 3.2 5.7

2003-04 8.7 5.2 7.4 5.1 7.0

2004-05 14.5 4.4 9.2 5.2 8.4

2005-06 8.3 1.0 9.1 5.2 8.2

2006-07 9.4 5.3 12.5 7.2 11.5

Source : CSO.MOSPI

With a special focus on modernization, the Indian government takes an active

role in promoting and advancing the domestic chemical industry. The

Department of Chemicals & Petro-Chemicals, which has been part of the

Ministry of Chemicals and Fertilizers since 1991, is responsible for policy,

planning, development and regulation of the industry. In the private sector,

numerous organizations, including the Indian Chemical Manufacturers

Association, the Chemicals and Petrochemicals Manufacturers Association and



85

the Pesticides Manufacturers and Formulators Association of India, all work to

promote the growth of the industry and the export of Indian chemicals.

3.1.4 Growth of chemical Industry

Growth in the chemical industry has a strong positive correlation with a

country's economic performance. Historically, the Indian chemical industry

has closely traced the growth of the gross domestic product.

A fact that augurs well for the Indian chemical industry, especially its

fertilizer constituent, is that India is still a predominantly agriculture-based

economy. Thus, the chemical industry in the country has an opportunity to

capitalize on the government's strong commitment towards agriculture-led

development in rural India. The chemical industry in India is still highly

fragmented, with as many as 11,962 firms. A large number of multinationals

are also present in the pharma, biotech and agrochem segments. Many

leading industry players are looking to gain through economies of scale-

organically or inorganically. Thi7s has ushered in a phase of restructuring and

consolidation.

Figure 3.2:

PRODUCTION OF SELECTED MAJOR CHEMICALS

ALKALI NORGANIC ORGANIC PESTICIDES DYES &

DYESTUFF

GROUP

Source: http://chemicals.nic.in/stat0107pdf

2001-02 2006-07


http://chemicals.nic.in/stat0107pdf


86

The Indian Chemical industry comprises both small and large-scale units. The

fiscal concessions granted to small sector in mid-eighties led to establishment

of large number of units in the Small Scale Industries (SSI) sector. Currently,

the Indian Chemical industry is in the midst of a major restructuring and

consolidation phase. With the shift in emphasis on product innovation, branch

building and environmental friendliness, this industry is increasingly moving

towards greater customer orientation. Even though India enjoys an abundant

supply of basic raw materials, it will have to build upon technical services and

marketing capabilities to face global competition and increase its share of

exports.

As the Indian economy was a protected economy till the early nineties, very

little large-scale R&D was undertaken by the Chemical industry to create

intellectual property. The Industry would, therefore, have to make large

investments in R&D to successfully counter competition from the

international chemicals industry. India has a number of scientific institutions

and the country's strength lies in its large pool of highly trained scientific

manpower.

India also produces a large number of fine and specialty chemicals, which have

very specific uses and are essential for increasing industrial production. These

find wide usage as food additives and pigments, polymer additives, anti-

oxidants in the rubber industry, etc.

In Chemical Sector, 100% FDI is permissible. Manufacture of most chemical

products inter-alia covering organic / inorganic, dyestuffs & pesticides is

delicensed. The entrepreneurs need to submit only lEM with the Department

of Industrial Policy & Promotion provided no locational angle is applicable. Only

the following items are covered in the compulsory licensing list because of

their hazardous nature.



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· Hydrocyanic acid & its derivatives

· Phosgene & its derivatives

· Isocyanides & di-isocynides of hydrocarbons.

3.1.5 TYPES OF CHEMICALS

Basic Inorganic and Organic Chemical Industry

The basic inorganic chemical and organic chemical industry constitutes a major

segment of the country's economy. Important chemicals in this category are

Soda Ash, Caustic Soda, Liquid Chlorine, Calcium Carbide, and Acetic Acid,

Methanol, Formaldehyde, Phenol, Acetone. These are raw materials for

industries like detergents, toothpaste, plastics, drugs, petroleum refining

etc. 10% of the Chlor-Caustic Plants use Membrane Cell Technology, which will

find higher usage, as no new capacities are allowed for the mercury cell

process.

Drugs & Pharmaceuticals

The Indian Pharmaceutical Industry is the largest in the developing world. The

industry currently produces a wide range of bulk drugs. In fact, India is

currently a world leader in the manufacture and export of basic drugs such as

ethambutol and ibuprofen. 300 bulk drugs & formulation based on them are

manufactured in the country. There are 10,000 manufacturing units, of which

290 units are in the large-scale sector, 45 Multi-National Companies (MNCs)

have manufacturing bases here.

India is emerging as one of the largest and cheapest producers of

Pharmaceuticals in the world, accounting for nearly 8.5% of the world's drug

requirements in terms of volume, and ranks amongst the top 15 drug

manufacturing countries in the world. India being a signatory to the GATT



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accord, (and the TRIPs agreement therein) patent protection will be provided

under the treaty obligations.

Pesticides & Agrochemicals

India is currently the largest manufacturer of Pesticides in Asia. Second only to

Japan. The pesticides demand from the agriculture sector is expected to go up

to 97,000 tonnes by the year 2000. More than 60 technical grade pesticide is

manufactured indigenously. Some 125 units are engaged in the manufacture of

the above and over 500 units are making pesticide formulations. In

agrochemical, we manufacture significant quantities of synthetic pyrethroids,

such as fenvalerate and cypermethrin, endosulphane, and organophosphate

range of agrochemicals, including monocrotophos. India is also a dominant

producer of isoproturon, a weedicide accounting for nearly 25% of the world-

wide production

Petrochemicals

The petrochemical industry of India is less than 40 years old. The sector has a

significant growth potential. Although the current per capita consumption of

petrochemicals products is low, the demand for the same is growing : 10%

during the Sixth Plan, 13.2% during the Seventh Plan, 25% expected during

the Eight Plan. Plastics is of core importance as they represent a safer and

more energy efficient alternative.

Dyes & Pigments

There are about 50 units in the organized sector and about 900 units in the

small-scale sector.

The Installed Capacity:

37,000 MTA Organized Sector

10,000 MTA Small Scale Sector



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Nearly 80% of the dyes manufactured are utilized by the textile industry, with

the balance going to into paints, printing inks, rubber & leather.

Fine & Specialty Chemicals

70% of the Fine Chemicals produced in India find their way into the

Pharmaceutical and Agrochemical sectors. Performance chemicals geared to

customer need are being developed locally particularly since there is growing

demand for Speciality chemicals like Sunscreens, Antioxidants, Biocides, etc.

Manufacturers of Fine Chemicals and specialities have major strengths in basic

research facilities available with CSIR laboratories such as NCL, IICT & RRLs as

also corporate R & D centres. This ensures that development of process know-

how; plant process design and engineering , detailed engineering design,

commissioning assistance and even consultancy for re-engineering are available

at low cost.

Fertilizers

The Indian fertilizer industry has emerged as the fourth largest producer of

fertilizers in the world after China, USA, Russia. Nitrogenous and phosphatic

fertilizers are produced indigenously, while requests for potassic fertilizers

are met through imports.

India has achieved near self-sufficiency in the inputs for the production of

nitrogenous fertilizers, but for the production of phosphatic fertilizers, the

country continues to rely on imports of raw materials (rock phosphate and

sulphur and for intermediates such as phosphoric acid).



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INDUSTRY: Chemicals

Figure 3.3: Production Index of Chemicals & Chemical Products (% change

over previous year)

Source : Monthly review of the Indian economy, Centre for monitoring Indian economy

Feb 2006.

Table NO. 3.5 Production Statistics of Selected Chemical Products

Monthly Review of the Indian Economy. Centre for Monitoring Indian Economy

Feb 2006.



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Table No. 3.6

Different Page Landscape



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Trade

Trade in chemicals to and from India in the recent years has increased

substantially. Exports are targeted for growth of over 400% by the year 2000. A

large chunk of the current exports is accounted for by pharmaceuticals (35%).

Though earlier the exports were to countries of South East Asia, Africa, this is

now changing. Indian Chemicals have markets in countries such as USA, UK,

Germany, France, Japan, etc.

What would one say about the prospects of an industry where the promoter

entities are queuing up to increase their share in the listed companies? The

answer, in one word, would be "promising". And indeed, for most of the leading

companies in the speciality segment, the future is indeed promising.

On the domestic front, with the reduction in tariffs, Indian companies with

strong systems and organized operations have benefited in the liberal

environment. Globally, the easing of GATT regulations by 2005 will mean free

trade and greater opportunities. Companies with competitive advantages, like

having competence in the areas of high value-added chemicals, conforming

with international quality standards, have translated this as a growth

opportunity to establish a dominant presence in both international and

domestic markets. These will do well in the forth coming years.

KEY CONCERNS

The key concerns of the Indian Chemical Industry are small capacity of plants,

higher input costs of raw materials, power, fuel etc. and lack of world class

infrastructure specially roads, ports and power supply, lack of competitiveness,

cost disadvantage and also stringent labour laws. A major concern is also the

various free trade agreements, which India is signing with various countries and



93

which are aimed at phasing out trade barriers. The Industry feels unless the

labour laws, power supply and infrastructure are improved, it would be very

difficult to compete globally with rapidly declining duty differentials and

appreciation in the value of rupee.

To achieve global standards the industry needs to put efforts in critical areas

so as to adopt aggressive growth and focus on exports, R&D, comarketing

alliances, up-gradation of manufacturing facility, contract manufacturing with

companies having established markets, identification of areas of core

competence, consolidation, collaboration by cluster development, outsourcing,

environmental consciousness, cost reduction etc.

Weakness

A. General handicap

q Cost of Power: Very high cost of power, unreliability of supply and

frequent interruption. Transmission and distribution losses are very high.

q Cost of Finance: Chemical Industry is highly capital intensive, cost of

finance in India is very high, interest rates are 14% countries. 15% p.a. as

compared to 2% to 6% prevailing in developed

q Infrastructure: India ranked 55th in infrastructure development in the

global competitiveness report 1999. Infrastructure facilities are not of

world class. Transport and communications are complex resulting in

delays and slow movement of goods. In-adequate port facilities result in

high demurrage costs. For example turn around time for Vessels is an

average of eight days in India as against one or two days in Singapore.



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B. Legacy of Past Policies of Industrialisation

q Scale of production: Due to earlier policy of import substitution and

industrial licensing, Chemical plants in India were built to cater to the

domestic requirements. The per-capita consumption in India is less as

compared to other countries and hence plant sizes are not comparable

to World scale operations. Major Competitors abroad enjoy economies of

scale advantage.

q Technology: In the days of sheltered economy, up-gradation of

technology was not critical. Bulk of the Pharmaceutical Industry has

grown by concentrating on processes modification rather than basic

research. Investment in R&D with a view to generating intellectual

property is absent. A change of mind set is needed to invest in R&D to be

able to sell value added product and compete in developed countries.

q Cost Disadvantages: Inclustrialisation was spread throughout the country

to redress regional imbalances as also for the development of backward

areas. However, this has created locational disadvantages, such as extra

transport cost for raw materials as well as finished products. Cost of raw

materials and catalysts in India is also high as compared to international

levels.

C. Tax / Legal regime

q Multiplicity of Taxes: Indian exporters at present are placed at a

considerable disadvantage vis-a-vis their foreign competitors on account

of multiple levies (various taxes and duties like sales tax, turnover tax,

octroi, service tax, electricity duty and cross subsidies, etc.). Value

Added Tax (VAT) must replace multiple taxes to create a level playing

field.

q Labour Laws: Labour & Industrial relation laws at present do not allow

flexibility in deployment of labour. This discourages modernization and



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investment in technological changes and eventually leads to industrial

sickness thus adversely affecting workers as well.

q Specific to Agrochemicals Industry

Likely restrictions on use of Organo Phosphorus Esters on specific crops /

indications in certain developed countries may adversely affect the demand for

this sector thereby lowering capacity utilisation

3.1.6 Approach to Eleventh Five Year Plan:

The Draft Approach Paper of Planning Commission envisioned for the 11th Five

Plan to achieve a new vision growth that will be much broader based and

inclusive, bringing about a faster reduction in poverty and helping bridge the

divide that is currently the focus of attention. A rapidly growing economy will

raise the incomes of the population sufficiently to bring about a general

improvement in living condition. The economy, expected to grow between 8 to

9 % per year on a sustained basis provided appropriate policies are put in place.

Population growth at 1.5 % per year would ensure that the real income of the

average Indian would double in ten years.

Some of the major Challenges have been identified as

a. Providing Essential Public Services for the Poor.

b. Regaining Agricultural Dynamism.

c. Increasing manufacturing Competitiveness: To achieve the GDP growth

rate of between 8-9 % the manufacturing growth rate must be targeted

at 12

d. Developing Human Resource.

e. Protecting Environment.



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The 11th Plan aims at raising the rate of growth of the industrial sector to 10%

and manufacturing growth to 12% per annum. The most critical short-term

barriers to growth of manufacturing sector are absence of world-class

infrastructure and shortage of skilled manpower. The 11th Plan will place

special emphasis on infrastructure and skill formation. Draft 11th Plan priority

initiatives to facilitate rapid industrial growth:

· Taxes and duties should be made non-distortion and internationally

competitive.

· Efforts to promote infrastructure development in local areas such as

Special Economic Zones and Special Economic Regions.

· Technological modernization and upgrading technological standards and

building international partnerships and FDI.

· To create an investor friendly climate by State Government.

· Labour intensive mass manufacturing based on relatively lower skill

levels provides an opportunity to expand employment in the industrial

sector with greater flexibility in some of the labour laws.

With reduced barriers to trade, and the negotiation of free trade agreements

with our neighbours and with ASEAN, our domestic procedures have to compete

with imports even if they don't aim at export markets. They cannot do so if

reservation limits their ability to modernize. The policy of progressive

de-reservation of industries for small scale production should continue in the

11th Plan at an accelerated pace.

Human Resource Development

The current employment (both direct and indirect) in the petrochemicals

industry (excluding synthetic fibre) is 2.38 million. Additional employment in

Polymer and Plastic processing industry is projected at 3.7 million (both direct

and indirect employment). The infrastructure for training needs to be upgraded



97

and expanded. Additional training centers need to be established both in public

and private sector for providing training in plastic processing technology to

meet the additional man-power need in the sector.

The training facility in Central Institute of Plastics Engineering & Technology

needs to be enhanced to cater the increasing demand of trained manpower.

During 11th plan strengthening high end testing facility, identification and

establishment of new centres, upgradation of the existing centres will be

undertaken.

Textile industry including synthetic fibre and technical textiles will generate an

employment of additional 12 million people. Partnership programmes for

Education and Training to build Application Engineering Resource are potential

areas. In technical textiles employment potential is about 1 million on direct

employment and 1-2 million people in indirect employment.

Technology and Research and Development

The upstream petrochemical products are technology intensive for which the

technologies are imported from the global licensors. The increasing crude oil

and natural gas feedstock prices have also enhanced the R & D efforts to

identify the alternate feedstock and maximization of hydrocarbon utilization to

derive chemicals. The entire downstream plastic processing and fabrication

industry needs major technological upgradation in the areas of scales of

operation, core processing machineries, downstream finishing equipments,

tools, moulds and innovations in end products to meet the emerging global and

domestic market demands.

Currently the expenditure on Research and Development in this sector is less

than 1% of industry turnover. Industry estimates for the turnover in processing

industry is Rs 55,000 crore. The R & D Expenditure needs to be increased up to

2 - 3 % of the turnover.



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New advancements have also taken place in performance plastics, engineering

polymers and speciality plastics. There are also developments in advance

composite materials in the field of additives, master batches, alloys, blends,

compounds, composites and high grade reinforcement materials such as glass

and carbon fibres which also requires attention for technology development.

New developments in the field of bio and photodegradable plastics and

replacement of additives and master batches by materials with lesser adverse

impact on environment are taking place all over the world.

Technology and Research & Development Initiatives will be focused on

Modernization and Upgradation, quality standards, etc of petrochemicals sector

to become globally competitive and increase exports. Feed stock alternatives

are focused for the manufacture of petrochemicals.

Promotion of Emerging areas, Plasticulture, Bio-Polymers, Product and

Application Developments, Plastics in Infrastructure, construction and Plastic

Waste Management. All these initiatives will dovetail the existing initiatives of

the Government in collaboration with the concerned Ministries / Departments.

The new initiatives will be on Private Public Partnership Model.

3.2 INTRODUCTION TO FERTILIZER INDUSTRY:

Agriculture the backbone of Indian Economy still holds its relative importance

for more than a billion people. The Government of India from time to time has

taken considerable steps for the upliftment of Agriculture Sector. Here we have

analyzed the performance of Fertilizer Industry being one of the vital parts in

agricultural production and Government's policy initiatives for the same.

Fertilizer in the agricultural process is an important area of concern. Fertilizer

industry in India has succeeded in meeting the demand of all chemical

fertilizers in the recent years.



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India's green revolution in late sixties gave a positive boost to the sector. The

sector experienced a faster growth rate and presently India is the third largest

fertilizer producer in the world. Fertilizer is generally defined as "any material,

organic or inorganic, natural or synthetic, which supplies one or more of the

chemical elements required for the plant growth"

The Indian Fertilizer industry had a very humble beginning in 1906, when the

first manufacturing unit of Single Super Phosphate (SSP) was set up in Ranipet

near Chennai with an annual capacity of 6000 MT. The Fertilizer & Chemicals

Travancore of India Ltd. (FACT) at Cochin in Kerala and the Fertilizers

Corporation of India (FCI) in Sindri in Bihar were the first large sized -fertilizer

plants set up in the forties and fifties with a view to establish an industrial

base to achieve self-sufficiency in food grains. Subsequently, green revolution

in the late sixties gave an impetus to the growth of fertilizer industry in India.

The seventies and eighties then witnessed a significant addition to the

fertilizer production capacity.

Presently there are 57 large fertilizers plants in the country producing Urea,

DAP, Complex fertilizer, Ammonium Sulphate (AS) and Calcium Ammonium

Nitrate (CAN).

3.2.1 Current Scenario of Indian Fertilizer Industry:

The industrial sector plays an important role in economic development. The

government of Gujarat has accorded high priority to industrial development,

with the objective of achieving balanced growth and generating large scale

employment for youth both in urban and rural areas and hereby, improving the

living standard of the people. Gujarat has witnessed impressive industrial

growth since its formation as a state in 1960. Share of the manufacturing sector

has increased to 37.2% in the gross state domestic Product (GSDP)during 2002-

2003 at constant (1993-94) prices, as against 20%in 1980-81.



100

Agriculture accounts for nearly 1/4th of India's GDP and more importantly,

about 2/3rd of the country's population is dependent on agriculture and allied

activities for their livelihood. Successive Five Year plans have stressed on

self-sufficiency and self-reliance in food grains production and concerted

efforts in this direction have resulted in substantial increase in agriculture

production and productivity. This is clear from the fact that from a very

modest level of 52 million tonnes in 1951-52, food grain production rose to

above 206 million tonnes in 1999-2000. Behind India's success story of not only

meeting total requirement of food grains but also having their exportable

surplus, the significant role played by chemical fertilizers is well recognized

and established beyond any doubt.

Fertilizer sector is very crucial for Indian economy because it provides a very

important input to agriculture. Moreover the fertilizer industry, specially the

ammonia urea plants, is highly energy intensive in their operation. There are

wide variation in the vintage of fertilizer plants in the country. It is regulated

by government policies administering the price of fertilizer and the production.

Natural gas, naphtha, LSLS/fuel oil are used as feedstock for producing urea,

Urea production is energy intensive process. Cost of energy varies from 65% to

87% of production costs. Over the years, the industry has improved its energy

performance by bringing down the specific energy consumption and improving

capacity utilization.

Table No: 3.7 Per hectare consumption of N.P.K. Fertilizers

N.P.K. fertilizers (Based on 2001-02 provisional gross cropped area)

S. No. State/U.T. 2004-05 2003-04

1 Uttar Pradesh+ 125.5 125.7

2 Punjab 192.5 190.1

3 Haryana 166.2 161.7

4 Andhra Pradesh 155.8 145.3



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5 Tamil Nadu 152.9 114.5

6 Bihar++ 85.7 81.0

7 West Bengal 129.0 114.1

8 Karnataka 110.8 78.8

9 Gujarat 106.8 94.7

10 Manipur 94.4 126.3

11 Maharashtra 77.7 64.2

12 Jammu & Kashmir 68.0 72.0

13 Kerala 67.4 64.2

14 Chhatisgarh 64.8 44.2

15 Madhya Pradesh 56.0 51.6

16 Himachal Pradesh 48.4 49.0

17 Assam 41.6 47.5

18 Orissa 40.4 37.1

19 Tripura 39.8 37.1

20 Rajasthan 36.6 37.4

21 Meghalaya 20.4 19.5

22 Mizoram 16.3 16.9

23 Sikkim 4.7 3.4

24 Arunachal Pradesh 3.1 2.9

25 Nagaland 1.6 1.8

26 All India 96.6 88.2

Key : + includes Uttranchal ++ includes Jharkhand

Source: Ministry of Chemicals and Fertilizers. Sector -wise installed Capacity of Fertilizers



102

Table No.: 3.8 Sector -wise and Nutrient - wise Installed Fertilizer Manufacturing Capacity

(as on 1st January, 2007)

S.No Sector Capacity (Lakh MT)

Percentage Share

Nitrogen

Phosphates Nitrogen

Phosphates

1 Public 34.98 4.32 29 7.65 Sector 2 Cooperative 31.69 17.13 26.27 30.27 Sector 3 Private 53.94 35.13 44.73 62.08 Sector Total 120.61 56.59 100 100

Table No. :3.9 Product-Wise Percentage Capacity Utilization of Fertilizers for

2005-2006 Year Product 2005-2006

Urea 102 DAP 63.4

Complexes 129.5 SSP 34.4

Table No. 3.10: Product-Wise Percentage Capacity Utilization of Fertilizers for 2004-2005 Year

Product 2004-2005 Urea 102.9 DAP 71

Complexes 105.2 SSP 36

Table No. 3.11: Product-Wise Percentage Capacity Utilization of Fertilizers for 2003-2004 Year

Product 2003-2004 Urea 98.7 DAP 64.9

Complexes 88.5 SSP 37.4



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Table No. 3.12 DAP units setup in the country with their date of

commissioning, installed capacity and location of the

units

Name of Date of Capacity S.No. Company/Plant Commissioning Lakh MT Location Vadodara- 1 GSFC-Baroda May, 1967 1.65 Gujarat

2 IFFCO-Kandia January, 1975 8.826 Kandla-Gujarat

Tuticorin-Tamil 3 SPIC-Tuticorin April, 1977 4.75 Nadu

Zuari Nagar- 4 ZIL-Goa December, 1984 3.3 Goa HaIdia-West 5 HLL-Haidia June.1986 6.75 Bengal

Paradeep- 6 PPL-Paradeep August, 1986 7.2 Orissa

Mangalore- 7 MCF-Mangalore December, 1986 1.8 Karnataka

8 GSFC-Sikka-I December, 1986 5.88 Sikka-Gujarat

Kakinada- Andhra 9 GFCL-Kakinada December, 1987 6.7 Pradesh

Paradeep- 10 OCFL- Paradeep April, 2000 15 Orissa

11 IGCL--Dahej September ,2000 4 Dahej-Gujarat 12 GSFC-Sikka-II October, 2001 3.96 Sikka-Gujarat Source: Fertilizer Statistics, published by Fertilizer Manufacturers’ Association Table No: 3.13 Complex fertilizers units setup in the country with their

date of commissioning, installed capacity and location of the units

Capacity

S.No. Name of Company/Plant

Product '000'MT Date of Commissioning

Location

1 FACT- Udyogamandal

20:20 148 December, 1960 Udyogamandal- Kerala

16:20 170 Ennore-Tamil 2 EID-Parry 20:20 70 Mar-63 Nadu

3 RCF-Trombay 15:15:15 300 November, 1965 Trombay- Maharashtra

4 RCF-Trombay- IV

20:8:20:8 361 November,1965 Trombay- Maharashtra

28:28:00 200 February, 1968 Vizag-Andhra Pradesh



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14:35:14 200 February, 1968 Vizag-Andhra Pradesh

5 CFL:-Vizag 20:20 200 February, 1968 Vizag-Andhra Pradesh

6 MFL-Chennai 17:17:17 840 November,1971 Manali-Tamil Nadu

7 ZIL-Goa 19:19:19 240 March,1975 Zuari Nagar-Goa 10:26:26 501.9 January, 1975 Kandla-Gujarat

8 IFFCO-Kandla 12:32:16 589.1 January, 1975 Kandla-Gujarat

9 GNFC-Bharuch 20:20 142.5 July, 1982 Bharuch-Gujarat 10 DFCL-Taloja 23:23a 230 March, 1992 Taloja-

Maharashtra

20:20 100 April, 2000 Paradeep-Orissa OCFL- 10:26:26 160 April, 2000 Paradeep-Orissa

11 Paradeep 12:32:16 160 April, 2000 Paradeep-Orissa Source: Fertilizer Statistics, published by Fertilizer Manufactures’

Association INDUSTRY: Fertilizers

Figure 3.4 Production of Fertilizers ('000 tones)

Source: Monthly review of the Indian economy, Centre for monitoring India

economy, February 2006.



105

Table No: 3.14 Fertilizer Statistics: Production and imports

Source: Monthly review of the Indian economy, Centre for monitoring India

economy, February 2006.

3.2.5 Approach to Eleventh Five Year Plan:

There was a slow increase in fertilizer production in absolute terms during

Tenth Five Year Plan. There was a shortfall in actual production vis-a-vis the

target projected in the Working Group on Fertilizers for the Tenth Plan. The

shortfall was on account of non-implementation of a number of projects, which

were envisaged / expected to be implemented during the Tenth Plan. This

included IFFCO-Nellore, KRIBHCO-Hazira third stream, KRIBHCO-Gorakhpur,

RCF Thal third stream and revamp of FCI-Sindri. The joint venture project,

Oman- India Fertilizer Co (OMIFCO), which was expected to start production by

1999- 2000, was delayed and was completed only during the course of Tenth

Plan. In view of the growing demand of fertilizers, all efforts need to be made

to achieve self sufficiency through incentives for additional production of urea.



106

Brownfield Greenfield projects and revival of closed units of FCIL/HFCL.

However, keeping in view the expected surplus availability of urea at global

level, Government should enter into negotiations or encourage Indian fertilizer

companies for tying up for long term supplies of urea from the countries which

will have surplus urea capacities after commissioning of the urea projects,

which are at present under construction. Option for setting up of joint venture

projects in the countries abroad with cheaper sources of natural gas needs to

be explored. To ensure sufficient supplies of raw materials and intermediates

relating to phosphatic sector over a sustained period, the Indian companies

need to invest outside in the resource rich countries by way of joint ventures in

mining, production of phosphoric acid, production of finished fertilizers etc.

This will not only provide some control over the world resources, which are so

vital to our agriculture, but will also help in stabilizing the international prices

in what is primarily a seller's market.

In the context of rapidly increasing food-grain production in the country to 244

million tones by the year 2011-12, availability of 300 LMTPA of urea or more is

to be planned for. It is expected that over and above the present installed

capacity of 213.52 LMTPA of urea (197 LIVIT from 28 domestic units plus 16.52 ILIVIT

from OMIFCO), additional capacity is expected to come in the next Plan period

as follows:

a) 25.186 LIVIT from capacity addition in the existing units

b) 33.50 LIVIT from 3 brown field expansion projects and 11.55 LIVIT from

one green field project (total 45.05 LMT).

c) About 50 LIVIT from revival of seven urea units of HFC and FCI in Eastern

India based on natural gas/LNG/CBM/Coal Gas as feedstock.

d) About 20 LIVIT from JV projects abroad based on cheap gas/ LNG, which

may come up in the countries which have abundant reserves of gas with

a buy back arrangement for urea produced by these projects.



107

The capacity has to be planned 15% above the projected demand keeping in

view pipeline and buffer stock. The projections of fertilizer nutrients based on

various approaches show a range of demand figures of total nutrients between

25 and 29 million tonnes for the terminal year of 11th Plan. The consumption of

total nutrients is expected to increase by over 8% during 2006-07 compared to

2005-06. The anticipated consumption during 2006-07 is likely to be about 22

million tonnes. The demand for 26.9 million tonnes of nutrients by 2011-12 on

the estimated base level consumption of 22.05 million tonnes in 2006-07

represents a per annum growth of 4.1 %. The growth in fertilizer consumption

during the first four years of the 10th Plan was 4% per annum. With the spurt in

the growth of consumption experienced during the past two years (2004-05 and

2005-06), and the continued high growth trend in the current year (2006-07),

an average growth of 4.1% per annum for total nutrients (N+P+K) on the base

level consumption of 2006-07 appears to be plausible growth for the 11th Plan.

Therefore, total nutrient consumption for 2011-12 is envisaged at 26.9 million

tonnes. Taking into account the average consumption level of 81% N through

urea, 60% P through DAP, 30% through complex fertilizers, 10% P through SSP

and 68% K through MOP, the product wise demand for the period 2006-07 to

2011-12 has been worked out. Accordingly, the demand for urea may be around

25.4 million tonnes by the end of 2007-08. The demand for DAP, complex

fertilizers (other than DAP) and SSP would be around 7.9, 7.7 and 3.8 million

tonnes, respectively. The demand for MOP would be around 3.0 million tonnes.

The projected demand for urea, DAP, complex fertilizers (other than DAP), SSP

and MOP for the year 2011-12 is 28.8, 9.5, 9.3, 4.6 and 3.7 million tonnes,

respectively.



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3.2.3 Development and Growth of the Fertilizer Industry

Capacity Build-Up

The installed capacity as on 31st January 2007 reached a level of 120.61 LIVIT

of nitrogen and 56.59 LIVIT of phosphatic nutrient, making India the third

largest producer of fertilizers in the world. The rapid build-up of fertilizer

production capacity in the country has been achieved as a result of a

favourable policy environment facilitating large investments in the public,

co-operative and private sectors.

At present, there are 56 large size fertilizer plants in the country

manufacturing a wide range of nitrogenous, phosphatic and complex fertilizers.

Out of these, 29 units produce urea, 20 units produce DAP and complex

fertilizers, 7 units produce low analysis straight nitrogenous fertilizers. There

are 9 plants that manufacture ammonium sulphate as by-products. Besides,

there are about 72 medium and small-scale units in operation producing SSP.

Production capacity and capacity utilization

The production of fertilizers during 2005-06 was 113.54 LIVIT of nitrogen and

42.21 LIVIT of phosphate. The production target for 2006-2007 has been fixed

at 114.48 LIVIT of nitrogen and 48.20 LIVIT of phosphate, representing a growth

rate of 0.83% in nitrogen and 14.19% in phosphate, as compared to the actual

production in 2005-2006.

The production performance of both nitrogenous and phosphatic fertilizers

during 2006-07 was less than the target. For nitrogenous fertilizers this was

mainly due to constraints in supply and quality of natural gas, equipment

breakdowns, and RCF Trombay-V & DIL Kanpur remained under unscheduled

shutdown. In case of phosphate, production in DAP plants was low on account



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of shortage of imported phosphoric acid and ammonia. Production of

complexes was higher than the corresponding period of last year. However,

taken together, the production of 'N' and 'P' during the year was higher than

that in the corresponding period of last year.

The domestic fertilizer industry has by and large attained the levels of capacity

utilization comparable with others in the world. The capacity utilization during

2005-06 was 94.1% for nitrogen and 74.6% for phosphate. The estimated

capacity utilization during 2006-07 is 93.6% of nitrogen and 82.0% of phosphate.

Within this gross capacity utilization, the capacity utilization in terms of the

urea plants was 102.0% in 2005-06 and is estimated to be 99.0% in 2006-07. As

for phosphate fertilizers, the actual production capacity utilization has also

been influenced by the demand trends.

Strategy for Growth

The fertilizer industry has adopted the following strategy to increase fertilizer

production; Expansion and capacity addition / efficiency enhancement through

retrofitting/revamping of existing fertilizer plants. Setting up joint venture

projects in countries having abundant and cheaper raw material resources.

Working out the possibility of adopting alternative sources like liquified natural

gas, coal gasification, etc to overcome the constraints in the domestic

availability of cheap and clean feedstock, particularly for the production of

urea.

3.2.3 SICKNESS IN THE FERTILIZER INDUSTRY

1) Keeping in view the need for generating various options for revival of

closed units of HFC, FCI and PPCL in keeping with the commitment of

the UPA Government and the need for higher fertilizer production in the

Eastern Region of the country, which does not have any urea production



110

capacity at present, the Department is examining the possibility of

revival of closed urea units cf HFC and FC1 based on natural gas/ LNG/

coal bed methane/coal gas. There is the likelihood of a new gas grid

coming up with a potential source of gas by the year 2009-10. Most of

the units of these companies have excellent existing infrastructure in

the shape of residential colonies, coal and electricity tie-ups, railway

sidings and a very sizable area of land. This infrastructure is ideal for

brown field projects. Some of these units are located near coal

pit-heads, which ensure availability of cheap coal for feedstock and fuel.

Furthermore, revival of closed urea units, which are located in the

Eastern Region of the country will result in some parity in creation of

production capacity of urea in the states of Bihar, West Bengal,

Chhattisgarh, Jharkhand and Orissa, which do not have any urea plant at

present. It is envisaged that revival of these closed urea units in Eastern

India will add an additional urea capacity of 50 LMTPA.

2) As regards MFIL and FACT, which have been declared sick, the

Department has or is contemplating various measures for their financial

revival and restructuring. The reasons for sickness of FACT are mainly on

account of outdated technology of the plant, high energy consumption

norms, large manpower and high fixed costs of the new ammonia plant

(900 MTPD). The phosphoric acid plant suffers from low production and

low efficiency.

3) The reasons for losses of MFL are due to the fact that the ammonia plant

is not operating at full capacity due to non-matching capacity of urea

plants and the NPK plant is operating at low capacity due to high cost

and inadequate availability of phosphoric acid. The cost of production is

higher than the amount received by the company through MRP and

concession. The energy consumption for urea is higher than the modern

ammonia plants mainly due to low capacity utilization of ammonia and



111

inferior plant process features. Its depreciation charges are high

compared to the norms of the group in which it has been placed under

the NPS. A package for restructuring of IVIFL and to sort out the

problems of FACT is under active consideration of Department of

Fertilizers.

3.2.4 Professionalisation Of Manpower For Fertilizer Sector

The fertilizer industry employs sophisticated technologies in production of

fertilizers. The operating conditions are hazardous both in terms of the

chemical environment, high pressure and temperature. The operation and

maintenance of fertilizer plants require skills of the highest order. Further,

farmers being consumers of the fertilizers should be adequately informed about

the appropriate use of fertilizers and other farm inputs for optimum farm

productivity and net incomes.

With a GDP growth of more than 8%, there is a competing demand for trained

manpower from all sectors of the economy. Fertilizer companies are already

having difficulty in retaining the trained manpower. In view of high turn over of

employees, the need for training becomes even more important. There is a

strong felt need for setting up an institute at the national level for training of

new entrants as well as for conducting refresher courses/retraining of existing

employees. A training and manpower development institute should be

established for the purpose. The institute may be established under the aegis

of FAI. Funds should be allocated from the overall outlay for the Eleventh Five

Year Plan for setting up such an institute.

As on 01-10-2005, the major fertilizer companies have manpower strength of

around 32556. Additional employment generation in the Fertilizer Sector will



112

be around 1350 in the three expansion projects considered during Eleventh Five

Year Plan.

Table No: 3.15 The sector-wise break-up

SECTOR MANPOWER

PUBLIC 15734

COOPERATIVE 6902

PRIVATE 9920

TOTAL 32556

Technology and Research and Development

The Department of Fertilizers should be strengthened technically as it can play

an important role in promoting productivity in the new economic environment

through R&D efforts. Fertilizer policy in the past 20 years has been mainly

focused on pricing and distribution issues. Technology related issues have been

neglected. Because of the linkage of the industry with agriculture and the need

for food security, subsidy on fertilizers is likely to continue in some form or the

other. Consequently, some kind of control will also remain on the industry.

Though India is among the top three producers and consumers of fertilizers,

there is practically no research on production technology carried out in the

country. It is recommended that there should be well-defined policy for R&D

and the mechanism for its implementation as part of the general policy for the

fertilizer sector. A research institute with state of the art facilities should be

set up which shall take up R&D projects of interest to the fertilizer industry.

The Govt. of India would give budgetary support and other sources of funding

could also be explored in consultation with the industry.

The Indian fertilizer industry has reached a stage where it is necessary to have

a long-term vision. It is recommended that the country should develop a world-



113

class indigenous process technology for producing ammonia and urea (which

accounts for 85% of the nutrients produced in the country) in the next 10 years.

The target should be to achieve a specific energy consumption level of 5.0-6.0

GcaI/MT from the current level of 6.7-7.0 Gcal/MT for manufacturing

ammonia. The pattern of usage of fertilizers in India may change if the

application of fertilizers is balanced and according to the soil and crop

requirements. If the percentage of usage of phosphatic and potassic fertilizer

increases then the demand of urea will undergo change. It is therefore; felt

that this aspect needs to be looked into by experts. It is therefore, suggested

that a technology mission on fertilizers may be constituted comprising of

experts from agricultural research institutes and agricultural universities to

study the changes in pattern in usage of fertilizers in years to come.

Table No: 3.16: 1 and 2 present the All-India demand for fertilizer in

2010-11 under different scenarios as prepared by NCAEPR, New Delhi

Variables that affect the, demand for fertilizers

Table 3.16 (i) Normative Approach

Table 1: All-India Demand Scenario for Fertilizer in 2010-11

Quantity (‘00O Tonnes)

NPK N Urea

1 . Output growth rate 2.72%, NPK ratio 2003

20,954 13,682 24,829

2. Output growth rate 4.0 8 %, NPK ratio 2003

23,301 15,215 27,786

3. Output growth rate 2.72%, NPK ratio 1991

20,954 13,489 24,022


23,301 15,000 26,848

Growth rate per annum (2002-03 to 2010-11)

NPK N Urea 1. Output growth rate 2.72%, NPK 2. 5 3 2.53 2.95



114

ratio, 2003 2. Output growth rate 4.08%, NPK ratio 2003

3.72 3.72 4.22

3.Output growth rate 2.72%, NPK ratio 1991

2.53 2.36 2.57


3.72 3.56 3.82

Table No: 3.16 (ii) Positive Approach

All-India Demand Scenario fiorUrea in 2010-11

Quantity ('000 Tonnes)

1. Business as usual (BAU) 24,959 2. BAU and freeze on subsidv 24,122 3. Freeze on subsidy, exploit irrigation

26,303

4. Average output growth rate 4% 27,452

3.3.4 Profile of Selected Companies in Gujarat for the research study:

v Fertilizer Industries

v Chemical Industries

List of the selected Fertilizer industries

Ø 3.3.1 Gujarat State Fertilizers and Chemicals Limited

Ø 3.3.2 Indian Farmers Fertilizer Co-operative Ltd.

Ø 3.3.3 Krishak Bharati Co-operative Ltd.

Ø 3.3.4 Gujarat Narmada Valley Fertilizer Company

List of the selected Chemical industries

Ø 3.3.5 Sud-chemie India Private Limited

Ø 3.3.6 Deepak Nitrate Private Limited

Ø 3.3.7 Gujarat Alkalies and Chemical Limited

Ø 3.3.8 Transpek-Silox India Limited



115

Ø 3.3.9 Jubiliant Organosys Limited

Ø 3.3.10 Narmada Chematur Petrochemicals

Ø 3.3.11 Rubamin Limited.

Ø 3.3.12 Alembic Limited

3.3.1 Gujarat State Fertilizer and Company The facet of care can be expressed in thought and action. And since its

beginning, in 1962, GSFC has consistently translated the facet of care in its

every activity. Unfolding before you is the epic of the Gujarat State Fertilizers

& Chemicals Ltd, an organization, in the annals of Indian corporate history,

founded on the single-minded principle of offering the best to the customer.

GSFC is taking its philosophy of care and extending it to every facet of its

existence, employees, suppliers, services, society and even the environment In

offering its care to an even larger section of society, GSFC has transcended the

boundaries of the ordinary to be able to truly fulfill its goal of being "Basic to

India's Progress".

Initially with the quality structure, comprising of 49% of State Government

participation and 51% of Public and Financial Institutions, today the

Government's involvement has come down to 38.4%.

As an organization formed for supporting the farmers, GSFC's every act

revolves around the avowed goal of "not only selling fertilizers, but also

offering happiness." Translating this belief has been the constant standard that

its every act must measure up to.

Products of GSFC - Catering to multi-fold needs of the market

With a market presence exceeding 45 years GSFC has carved out an

irreplaceable image for itself on the Indian marketing scene.



116

Integration of technologies and brilliant innovative research ensures that the

products touch all walks of life. From household consumer to core industrial

consumer, GSFC continuously fulfils multi-fold needs of the market.

GSFC's incessant strive for product diversification and value addition has

created a product mix ranging from more than 24 brands of fertilizers to

petrochemicals, chemicals, industrial gases, plastics, fibres and other products.

onforming to the strictest international standards, GSFC continuously achieves

and maintains best quality, superior packaging, prompt deliveries & services of

highest standards for every product. This claim is well substantiated by a string

of National & International Awards, but TOTAL Customer Satisfaction is the

MOST VALUED AWARD at GSFC.

GSFC today stands for superior quality with many of its products being ISO 9001

certified. GSFC believes in providing highest value for the Customer's money

through economies of scale, continuous product improvement & value addition

to the products. Undoubtedly, GSFC is a respectable player in the emerging

scenario of the competitive & globalized industry. GSFC has Customer Service

Centres both in Agriculture Field (AD&AS) and Industrial Field (ADC) to

disseminate the latest technical knowledge for efficient use of the products.

The products are classified in three categories

1. Industrial Product

2. Agro based product

3. Bio fertilizer

GSFC has the largest capacity Engg. Plastic Nylon-6 Plant in the country with a

rated capacity of 7,000 MT. The main raw material for Nylon-6 is Caprolactam

which is available from captive capacity.



117

Gujlon is the registered trade name of Nylon-6 chips manufactured by GSFC.

Nylon-6 is tough, lightweight, abrasion resistant, shock resistant, corrosion

resistant, heat resistant with higher melting point, low specific gravity,

electrical insulation property and dimensional stability.

It requires no lubrication and can be machined and finished in ways similar to

metals. This versatile plastic is available in general purpose injection moulding

grades, glass fibre reinforced grade, plasticised grade and extrusion grades to

suit diverse applications.

Products of GSFC

v Oleum

v Sulphuric Acid

v Fertilizers

v Urea

v Ammonium Sulphate

v Di-Ammonium Phosphate

v APS - 20:20:0

v NPK - 12:32:16

v NPK - 10:26:26

v Water Soluble Fertilizers

v Micro Mix

v Gypsum

v Biotech products



118

3.3.2 IFFCO: Indian Farmers’ Success Story

During mid- sixties the co-operative sector in India was responsible for

distribution of 70 per cent of fertilizers consumed in the country. This sector

had adequate infrastructure to distribute fertilizers but had no production

facilities of its own and hence dependent on public/private sectors for

supplies. To overcome this lacuna and to bridge the demand supply gap in the

country, a new cooperative society was conceived to specifically cater to the

requirements of farmers. It was a unique venture in which the farmers of the

country through their own co-operative societies created this new institution to

safeguard their interests. The number of co-operative societies associated with

IFFCO has risen from 57 in 1967 to 38, 155 at present.

Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on

November 3, 1967 as a Multi-unit Co-operative Society. On the enactment of

the Multistate Cooperative Societies act 1984 & 2002, the society is deemed to

be registered as a Multistate Cooperative Society. The society is primarily

engaged in production and distribution of fertilizers, The byelaws of the society

provide a broad frame work for the activities of IFFCO as a Cooperative

Society.

IFFCO commissioned an ammonia - urea complex at Kalol and the NPK/DAP

plant at Kandla both in the state of Gujarat in 1975. Another ammonia - urea

complex was set up at Phulpur in the state of Uttar Pradesh in 1981. The

ammonia - urea unit at Aonla was commissioned in 1988.

In 1993, IFFCO had drawn up a major expansion programme of all the four

plants under overall aegis of IFFCO VISION 2000 . The expansion projects at

Aonla, Kalol, Phulpur and Kandla have been completed on schedule. Thus all

the projects conceived as part of Vision 2000 have been realised without time



119

or cost overruns. All the production units of IFFCO have established a

reputation for excellence and quality. A new growth path has been chalked out

to realise newer dreams and greater heights through Vision 2010 which is

presently under implementation. As part of the new vision, IFFCO has acquired

fertiliser unit at Paradeep in Orissa in September 2005. As a result of these

expansion projects and acquisition, IFFCO's annual capacity has been increased

to 3.69 million tonnes of Urea and NPK/DAP equivalent to 1.71 million tonnes

of P205. IFFCO has made strategic investments in several joint ventures.

Godavari Fertilisers; and Chemicals Ltd (GFCL) & Indian Potash Ltd (IPL) in

India, Industries Chimiques du Senegal (ICS) in Senegal and Oman India

Fertiliser Company (OMIFCO) in Oman are important fertiliser joint ventures.

Indo Egyptian Fertiliser Co (IEFC) in Egypt is under implementation. As part of

strategic diversification, IFFCO has entered into several key sectors. IFFCO-

Tokio General Insurance Ltd (ITGI) is a foray into general insurance sector.

Through ITGI, IFFCO has formulated new services of benefit to farmers. 'Sankat

Haran Bima Yojana' provides free insurance cover to farmers along with each

bag of IFFCO fertiliser purchased. To take the benefits of emerging concepts

like agricultural commodity trading, IFFCO has taken equity in National

Commodity and Derivative Exchange (NCDEX) and National Collateral

Management Services Ltd (NCMSL). IFFCO Chattisgarh Power Ltd (ICPL) which is

under implementation is yet another foray to move into core area of power.

IFFCO is also behind several other companies with the sole intention of

benefitting farmers.

The distribution of IFFCO's fertiliser is undertaken through over 38155 co-

operative societies. The entire activities of Distribution, Sales and Promotion

are co-ordinated by Marketing Central Office (MKCO) at New Delhi assisted by

the Marketing offices in the field. In addition, essential agro-inputs for crop

production are made available to the farmers through a chain of 158 Farmers

Service Centre (FSC). IFFCO has promoted several institutions and organisations

to work for the welfare of farmers, strengthening cooperative movement,



120

improve Indian agriculture. Indian Farm Forestry Development Cooperative Ltd

(IFFDC), Cooperative Rural Development Trust (CORDET), IFFCO Foundation,

Kisan Sewa Trust belong to this category. An ambitious project 'ICT Initiatives

for Farmers and Cooperatives' is launched to promote e-culture in rural India.

IFFCO obsessively nurtures its relations with farmers and undertakes a large

number of agricultural extension activities for their benefit every year.

At IFFCO, the thirst for ever improving the services to farmers and member co-

operatives is insatiable, commitment to quality is insurmountable and

harnessing of mother earths' bounty to drive hunger away from India in an

ecologically sustainable manner is the prime mission. All that iFFCO cherishes

in exchange is an everlasting smile on the face of Indian Farmer who form the

moving spirit behind this mission.

IFFCO, today, is a leading player in India's fertilizer industry and is making

substantial contribution to the efforts of Indian Government to increase food

grain production in the country.

Products of IFFCO

Nitrogenous Fertilizers

Urea

Ammonium Sulphate (AS)

Ammonium Chloride (ACI)

Calcium Ammonium Nitrate (CAN)

Phosphatic & Potassic Fertilizers

Single Super Phosphate (SSP)

Muriate of Potash (MOP)

Sulphate of Potash (SOP)

Di-ammonium Phosphate (DAP)

Rock Phosphate (RP)

NPIK Grades



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3.3.3 KRIBHCO

KRIBHCO has setup a fertilizer complex to manufacture Urea, Ammonia &

Bio-fertilizers at Hazira in the State of Gujarat, on the bank of river Tapi, 15

Kms from Surat city on Surat - Hazira State Highway.Late Smt. Indira Gandhi,

former Prime Minister of India laid the Foundation Stone on February 5, 1982.

Hazira Fertiliser Complex has 2 streams of Ammonia Plant and 4 streams of

urea Plant. Annual re-assessed capacity for Urea and Ammonia is 1.729 million

and 1.003 million MT respectively, the total project cost was Rs. 890 crores as

against the estimated cost of Rs. 957 crores. This shows a saving of Rs. 67

crores (approximately 7%) in capital cost of the project.

The trial production commenced from November, 1985 and within a very short

time of 3 months, the commercial production commenced from March 01,

1986. Since then, it has excelled in performance in all areas of its operations.

Biofertilizer plant of 100 MT per year capacity was commissioned at Hazira in

August, 1995. KRIBHCO has also completed the installation of an expansion of

the Bio-Fertiliser plant with an additional capacity of 150 MT and the same was

commissioned in December, 1998.

Ten Seed Processing Plants are also in operation in various states

HUMAN RESOURCE & DEVELOPMENT ACTIVITIES

Human Resource Development is a process by which employees of the

organization are continuously helped in a planned manner to acquire

capabilities, knowledge, perspective attitude, values, skills, develop their

general individual capabilities and to develop organization culture as a whole.

HRD Department has been conducting various programmes to develop and

update skills of the employees at all the levels briefly as under:

IN HOUSE TRAINING PROGRAMME/Conference are being conducted to develop

internal talent as well as to develop the skills of the employees at various

levels and in various discipline. Employees are sponsored to various reputed



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institutes/organizations on need basis to participate in the training

programme/conference/ seminar/ symposiums/ workshops.

COMPUTER TRAINING is organized for the employees and their wards as per

need. Employees are sent to attend various seminars, conferences and

workshops organized by various leading Institutes/Ministries/Department of

Public Enterprises.

1) Products of KRIBHCO

v Urea

v Bio Fertilizer

1. Azotobacter 2. Azospririlluim 3. Rhizobium 4. Phosphores solubising micro organism (PSM)

2) Seeds

1. Wheat 2. Paddy 3. Pulses 4. Oil Seeds



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3.3.4 Gujarat Narmada Fertilizer Company

There is more to GNFC than meets the eye. Fertilizers business is only a part of

the company's growing sphere of activities. In fact, industrial chemicals have

been the dominant driver of growth for the Company in recent times. GNFC has

also made a foray into the arena of e-security for potential future growth in

the infotech sector. At GNFC the quest for the growth is inherent and

insatiable. The tradition of high production levels and growth is clearly

envisioned.

GNFC started fertilizer manufacturing and marketing operations by setting up

in 1982, one of the world's largest single-stream ammonia-urea fertilizer

complexes. GNFC today is one of the leaders in fertilizer industry. The

company is engaged in manufacturing and selling fertilizers such as Urea,

Ammonium Nitro phosphate and Calcium Ammonium Nitrate under the umbrella

NARMADA. GNFC has to its credit one of the largest Ammonia plant, a

reference plant in the world of fuel oil based technology along with the world's

largest single stream Urea plant

Products

v Urea

v Ammonium Nitrophosphate

v Calcium Ammonium Nitrate

The company is engaged in handling and importing Urea, Diammonium

Phosphate (DAP), Muriate of Potash (MOP) and Ammonium Sulphate. In

addition, GNFC is also handling traded fertilizers like Single Super

Phosphate(SSP) from Liberty Phosphate and Others, DAP and Urea



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3.3.5 Sud-Chemie

Sud-Chemie India is engaged in the manufacturing of catalysts for various

applications. They have two manufacturing facilities. One in Cochin (Kerala)

and the other in Baroda (Gujarat). Manufacturing operation was started in

1970. Both the units and the R&D division are ISO 9001:2000 and ISO 14001

certified.

Sod-Chemie India manufactures a wide range of catalysts for varied

applications in Fertilizer Industries, Refineries, Petrochemical Industries,

Sponge Iron Industries and now for emission control in automobiles and

stationery engines. Our products are the result of many many years research

and development work. We continuously keep on working for improving the

quality of our products. As a result of the activity levels, efficiency and life of

our products have improved considerably over the years.

We manufacture the following categories of catalysts:

v High Temperature Shift

v Low Temperature Shift

v Desulphurisation

v Pre-Reformer

v Primary Reformer

v Secondary Reformer

v Chloride Guard

v Zeolites

v Catalytic Converter

v Speciality Catalysts

v Additives



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The company was Registered in 1969 as Catalysts and Chemicals India (West

Asia) Pvt. Ltd. The name was first changed to United Catalysts India Ltd. and

then to Sud-Chemie India Ltd., consequent to change in name of the parent

company. Manufacturing operations at Cochin unit has started in 1970. Baroda

unit was started in 1978. The Company has got marketing offices at Delhi and

Mumbai.

The company has been catering to the Syngas catalyst requirements of almost

all the fertilizer manufacturing companies in India. They are market leaders for

Syngas catalysts in India. Refineries and Petrochemical industries are also using

their catalysts. With the introduction of MIDREX catalysts they started meeting

the requirements of Sponge Iron Plants also. Now they have started feeding to

the highly competitive automobile sector also with their Catalytic Converters

for two and three wheelers as OEM suppliers



126

3.3.6 Deepak Nitrite Limited

DNL commenced operations in 1970 with a vision to support India's drive

towards self - sufficiency and import substitution. With an investment of Rs. 13

million it began operations with its fully indigenous Sodium Nitrite and Nitrate

plant at Nandesari, Baroda.

Today, it manufactures basic and intermediate chemicals which are used in the

manufacture of everyday products. Colourants and Imaging Chemicals

Intermediates, Agrochernical Intermediates, Pharmaceutical Intermediates,

Rubber Chemical Intermediates, Chemicals for the Refineries, Cosmetics etc.

are a part of DNL's product portfolio.

The company's technological growth has been achieved through its In-house

Research as well as assistance from premier Research Institutes like the

University Department of Chemical Technology, Mumbai, National Chemical

Laboratory, Pune, Indian Institute of Chemical Technology, Hyderabad as well

as Projects & Development India Ltd., New Delhi.

DNL has a global presence in over 20 countries, including USA, European Union

& East European nations, Japan, ASEAN countries, South Korea and South

America. The company foresees a quantum leap in export turnover through

Custom Manufacturing for the specific needs of the end users and the

manufacture of high-value, speciality products either based on its own end

products or developed especially for the user. DNL has been ranked amongst

the top 500 Body corporate by Dun and Bradstreet for the last three years.

In keeping with the objective DNL has decided to focus on customer

satisfaction as a primary motto as well as expansion in the existing

manufacturing facilities. This has led to a paradigm shift from low margin bulk

chemicals and intermediates to high margin fine and speciality chemicals based



127

on its existing core expertise as well as lateral and vertical integration of its

existing products, exploring downstream derivatives.



128

3.3.7 Gujarat Alkalies And Chemicals Limited GACL is a forward-looking company, set up in the year 1973. 30 years is a long

time. Long enough to test the character of any organization. Be it recession,

inflation, increased competition or changing governments, they have lived it

all. And for sure, all the turbulences have made GACL a stronger and a

progressive company. Their stern resolve to manufacture quality chemicals and

trek customer satisfaction to a new height has yielded unbelievable results.

From an initial capacity of 37,425 TPA Caustic Soda, They have grown to be the

largest producer in India, with a capacity of 3,58,760 TPA. Spread over 2

complexes at Vadodara and Dahej.

Knowing that the time ahead may prop-up newer hurdles, GACL has already

started to diversify and expand its existing infrastructure to consolidate it's

supremacy in Chlor-Alkali and other integrated downstream products.

The unshakeable desire to deliver quality products to their customers means

that their products are well accepted, both in India and the world over.

Domestic customers are assured of prompt delivery of quality products at their

doorsteps through their well-established network of dealers and consignment

stockist. Overseas customers are serviced directly or through agents.

Nature bestows human race with umpteen benefits. Clean air, Lush green

trees, GACL's commitment towards the environment is undying. Safe and

unadulterated nature is high on their list of priorities; they are an organization

with Green Attitude.

A dedicated senior executive heads a Safety and Environment Department to

maintain high standards of safety and a harmonious relationship between

environment and technology.



129

The company has planted more than 1,00,000 plants and it keeps maintaining

the same. With tree plantation being a regular feature, it plants 1000 sapling

every year.

Rainwater harvesting and collection is a part of routine activity at GACL. This water is

then utilized for the maintenance of green belts. The vermiculture concept has been

implemented in the premises to convert waste generated by the canteen, gardens and

plants to vermin compost.

GACL has been a pioneer in adopting the environment friendly and energy

efficient technologies. It converted to Membrane Cell Technology from Mercury

Cell Technology way back in 1989 and since 1994 all the plants are running on

Mercury free Membrane Cell Technology.

- Products

- Caustic Soda Group - Sodiurn Group

~ Caustic Soda Flakes ~ Sodium Cyanide

~ Caustic Soda Lye ~ Sodium Ferro Cyanide

~ Caustic Soda Prills - Hydrogen Peroxide Group

~ Sodium Hypo Chlorite ~ Hydrogen Peroxide

~ Liquid Chlorine ~ Bleachwin

~ Compressed Hydrogen Gas - Phosphoric Acid Group

~ Hydrochloric Acid ~ Phosphoric Acid

- Caustic Potash Group ~ Calcium Chloride Flakes

~ Caustic Potash Flakes ~ Calcium Chloride Powder

~ Caustic Potash Lye - Others

~ Potassium Carbonate ~ Dilute Sulphuric Acid

- Chloromethane Group ~ Scalewin

~.Methyle Chloride ~ Aluminum Chloride Anhydrous

~ Methylene Chloride - New Products

~ Carbon Tetrachloride Poly Aluminum Chloride

~ Chloroform.



130

3.3.8 Transpek-Silox Limited A company nurtured by the Shroff Group, which has Excel Industries Limited as

the flagship company, and who are pioneers in developing indigenous

technologies in chemical manufacturing. Transpek has a history dating back to

three decades and inherits the rich heritage of Shroff Group's leadership

position in Indian Chemical Industry. Over the years, Transpek Industry has

emerged as a prominent manufacturer of Sulphoxylates and Chlorine based

products in Asia.

A market leader in India in all its product categories, it was the only company

with dual capabilities to manufacture Sodium Hydrosulphite through Zinc and

Sodium Formate routes, It was also one of the largest manufacturers - exporter

of Zinc oxide and Zinc Dust in India. It is this vibrant Sulphoxylate Business of

Transpek, which formed the Joint Venture with Silox S.A.

Silox S.A.

A Joint Venture of Prayon S.A and Cybelle S.A of Belgium specializes in Mineral

Chemistry. Silox, in addition to the Zinc Oxide & Sodium Hydrosulphite

facilities in Belgium, is also a controlling partner in a Sodium Hydrosulphite /

Zinc Oxide manufacturing facility in Anada, M/S Hydro Technologies . It is also

the 100% owner of SNCZ, France, who are one of the leaders in Phosphate and

Chromatic Anti-Corrosion Pigments.

Silox Group also includes, M/S Jean Goldschmidt International and HYDRO

METAL, who are involved in the business of Non-Ferrous Residue trading and

Hydro Metallurgic treatment respectively.



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Prayon S.A. Prayon S.A traces its genesis to the 19th century and has a long Industrial

experience and International recognition in Phosphate Chemicals. It has over

the years emerged as a multinational entity with 20 companies spread across

10 countries. It commands the position of a world leader in Phosphates and

Mineral Speciality Industry.

Cybelle. S.A.

Cybelle Group consists of many companies in the field of Chemicals & Plastics

located across Europe and South America.

Human Resource

Transpek-Silox derives its strengths from its main asset - its people. They

recognize the indefatigable spirit of humankind for it is the people who hold

the power to harness technology.

They endeavor to nurture this tireless spirit and take immense pride in this

invaluable resource. An environment conducive to participative management

and comradeship enthuses the all pervasive feeling of an extended family. The

in-house training centre facilitates skill enhancement through well-defined

training programmes in various fields based on an extensive survey of the

training needs of the employees. Their vision is to create future leaders out of

their current human power.

Products

v Sodium Hydrosulphite

v Sodium Formaldehyde Sulphoxylate

v Zinc Formaldehyde Sulphoxylate

v Zinc Oxide

v Zinc Dust

v Zinc Borate

v Zinc Phosphate



132

v Zinc Carbonate

v Sulphuric Dioxide

v New Products



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3.3.9 Jubilant Organosys Limited Jubilant Organosys Limited is a collaborative, innovative provider of products

and services to the global life sciences industry, striving to accelerate the

process of pharmaceutical drug approval. They have a presence across the

pharmaceuticals value chain ranging from drug discovery services, custom

research and manufacturing services, advance intermediates and fine

chemicals to active pharmaceutical ingredients, dosage forms and regulatory

affairs services.

They also enjoy leadership in Industrial Products and Performance Polymers

products in India. They are one of the largest companies in Industrial Products

and Performance Polymers in the product categories that they operate in. Each

segment has independent growth units with clear performance and growth

objectives. These businesses offer products and services to meet the demands

of the Pharmaceuticals, Agrochernicals, Construction, Food & Beverages,

Textile, Tyres and Paper & Packaging industries. They are the leading

manufacturer - worldwide - in distinct product segments including selective

APIs, Pyridine and its derivatives, Solid Polyvinyl Acetate, Vinyl Pyridine Latex

and Organic intermediates such as Ethyl Acetate, Acetic Anhydride and

Acetaldehyde.

They have four manufacturing locations in India situated at Gajraula (in Uttar

Pradesh), Nanjangud (in Karnataka), Nira (in Maharashtra) and Samlaya (in

Gujarat) and a US FDA approved manufacturing facility for dosage forms in

Maryland, USA. Globally, Jubilant Organosys is a leading manufacturer in

defined product segments, including select APIs (e.g., Carbamazepine and

Citalopram), Pyridine and its derivatives, Solid polyvinyl acetate, Vinyl Pyridine

Latex and Organic Intermediates (e.g., Ethyl Acetate and Acetic Anhydride).



134

3.3.10 Narmada Chematur Petrochemicals Ltd. (NCPL)

NCPL is the leading manufacturer and exporters of Toluene Di Isocyanate,

Aniline, Nitrobenzene, HCL, Ortho Toluene Diamine [OTD], Meta Toluene

Diamine [MTD]. Right now they have 400 MT of TDI for export. They are the

leading manufacturer of Single stream Aniline. Their products touch purity up

to 99.8% and believe in commitments and customer satisfaction with at

developing healthy business relationship.

Product/Service: TDI [Toluene Diisocyanate],

AnilineOTD [Ortho Toluene Diamine],

MTD [Meta Toluene Diamine]



135

3.3.11 Rubamin Limited

Rubamin is a rapidly growing INR 500 Crore (US$ 125 Million) organization

having operations in India and D.R.Congo. Its operations include Mining, Metal

extraction as well as Metal Compounds manufacturing.

The businesses are grouped as under:

v Cobalt Metal & salts

v Zinc Oxide

v Congo Operations

It has four manufacturing sites in India and over 4000 Sq. Kms of different

Mining Concessions in D.R. Congo.It is the largest manufacturer of Zinc Oxide in

India and is one of the only two manufacturers of Cobalt metal in India.

Rubamin has grown 30 % every year for the last three years. ICICI Ventures, one

of the leading Private Equity companies in India has taken a strategic stake in

Rubamin in July 2007. Rubamin is committed to excellence in all its

endeavours, with an unwavering focus on Customer Delight. Rubamin give

utmost importance to Research and Development. Its R&D centre is recognized

by the DISR and has approved for PhD programmes under M.S.University.

They firmly believe that People are their key differentiator and they therefore

place great emphasis on their people practices. These include:

v Structure for systematic training using skill inventories and competency

maps

v MBR based Performance Management System

v Emphasis on training and Personal Development

v High quality training such as Blanchard's Situational Leadership and LMI's

EPP Programme

v Innovative compensation methodologies

v Effective systems to recruit, develop and retain the best talent.



136

3.3.12 ALEMBIC LIMITED

ISO-9002 and ISO-14001 certified Asia's most respected integrated

pharmaceutical company with manufacturing practices and facilities that

conform to WHO-GMP guidelines; Alembic is in the business of improving the

quality of life and healthcare in over 75 countries around the world.

Everything Alembic revolves around extending and improving the quality of life

with products that span the entire lifecycle. As an integrated pharmaceutical

company they share collaborative & symbiotic relationships with preferred

business partners, all of whom reflect their business ethics, trust &

transparency and quality standards.

Paushak, an Alembic Group company, was established in 1972, 40 Kms outside

Vadodara ( Gujarat ) and about 400 Kms north of Mumbai. Over the years the

company has established a multi product capability in Phosgene & its

derivatives manufacturing. In last 25 years the experience of the company has

given it an indigenous process development capability. Company has also

handled Custom Synthesis and Contract based research. Paushak has production

capacity of 150 tons per month of phosgene with a turnover of US $ 3.5 Million

p.a. with a workforce of 200 plus. Company has an in-house process

development and R & D laboratory. They also have Corporate support in

Production, R&D, QA, etc. Phosgene is a versatile molecule and its derivatives

they produce have applications in diverse fields like Pharmaceuticals,

Agrochemicals , Polyurethanes, perfumeries, dyes, etc. Paushak is a speciality

chemicals company belonging to the Alembic group from Baroda, India.

Paushak has mastered the Production of phosgene gas and phosgene based

speciality Chemicals / intermediates through indigenously developed

Technology. These chemicals are used in diverse fields such as pesticides,

pharmaceuticals, dyes, plastics, perfumeries etc. Paushak has had a long

experience in handling phosgene gas and a major thrust of the company is to



137

develop phosgene based derivatives through its R&D centre that is recognized

by the DISR. Paushak can take up custom synthesis for phosgene derivatives and

toll manufacturing.

Main Products of Paushak

v Chloroformates

v Isocynates

v Acid Chlorides



91

Table No: 3.6 GROUP WISE CAPACITY & PRODUCTION OF MAJOR CHEMICALS

(Figure in MT) Inst. Ca p. As on Production Growth (%) in 2006-07 CARG (%)

Main Groups March 06 March 01 2001-02 2002-0-1 2003-04 1-004-09 1

20 05-06 2006-07(p.) Inst. Cap. Prodan. Prodn.

Co.3/col2 Col.9/col.8 Col9/col4 1 2 3 4 5 6 7 8 9 10 11 12

I ALKALI 6602680 7072334 4342305 4792345 5070374 5271675 5474614

5268987 7.1 -3.8 3.9

II INORGANIC 742015 748615 3 74132 403827 440608 508157 543965 602309 0.9 10.7 10.0 III ORGANIC 1811858 1889448 1166575 1352653 1473855 1505895 1545262 1545442 4.3 0~0 5 ~ 8 IV PESTICIDES 148551 145391 81803 69565 8511S 93966 82240 84701 -2. 1 3.0 0~7

V DYES & DYESTUFF 52043 52591 24789 26196 25940 28498 29541 3255'2 11 10.2 5.6 TOTAL MAJOR CHEMICALS

9357147 9908379 5989604 6644586 7095895 7408191 7675622 7533991 5.9 -1.8 4.7

P: PROVISIONAL

Source: http://chemicals.nic.in/stat0-107.pdf



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