05 November 2014

Kanpur Fertilizers & Cement Limited (KFCL) - Record Production Achieved in Oct.2014

Kanpur based Jaypee group's urea producing company Kanpur Fertilizers & Cement Limited (KFCL) has achieved a new milestone by producing more than 60 thousand tonnes of urea in a single month. In October 2014, the company produced 60616 tonnes of urea which is an all-time high record.

KFCL's Factory Manager Brigadier K.S. Rao has informed the media that we are working continuously to get more production here. In this connection we are installing new ultra modern boiler to replace the existing old boilers. The other important step we are taking is that old electrical motors will be replaced by new motors and it will save 1 MW of electricity per month. Plant capacity too we are going to increase from present 7 lakh 20 thousand tonnes per annum (tpa) to 11 lakh tonnes per annum (tpa).  

Stay tuned to Fertilizer News for more news on Kanpur Fertilizers & Cement Limited (KFCL) ! 

29 October 2014

Fertilizer sector profitability would decline from 1st November 2014

Reliance is going to increase its gas prices from 1st November 2014. It could adversely affect the economics of the key user industries including power and fertiliser. As per the latest report of India Ratings & Research (Ind-Ra) the profitability of fertilizer sector would decline under the impact of increase in gas price. There would be a three-fold impact on fertilizer manufacturers by this increase in domestic gas prices.

1. The per unit subsidy on urea will increase, leading to higher working capital requirements as subsidy dues are usually paid with a lag. The interest costs on higher working capital requirement will have to be borne by fertilizer manufacturers.

2. The profitability of urea manufacturers selling above 110% of the re-assessed capacity will be lower as the sale price is linked to import parity price but the costs are not pass through.

3. Non-urea manufacturers will also have to either bear the higher gas prices or pass them on to the consumers.

Stay tuned to Fertilizer News for getting more details on Domestic Gas Prices !   

28 September 2014

DOF plans to prevent subsidy leakages in fertilizer subsidy

The Department of Fertilizers (DoF) plans to prevent subsidy leakages by implementing barcode-based tracking of all fertilizer bags. For this purpose the DoF has invited Expression of Interest (EoI) from eligible entities for implementation of barcode-based Fertilizer Track & Trace Solution (FTTS). The Indian fertilizer companies produce 100 crore fertilizer bags of 50 kg every year. These bags are distributed through 1.5 lakh retail outlets across the country.        

Now as per the EoI document, each fertilizer bag will have a barcode tagged at the manufacturing site/port. The subsidy to be paid by Government will be linked with the scanning of fertilizer bags at wholesalers/retailer end. The fertilizer bags then will be scanned at certain number of pre-defined locations during the movement from plant/port to the retailer’s outlet.    

Implementation of barcode-based Fertilizer Track & Trace Solution (FTTS) will help DoF to estimate the availability of fertilizers at each sale point and enable DoF for better planning and movement of the fertilizers to the states/districts.

Stay tuned to Fertilizer News for getting more details on barcode-based Fertilizer Track & Trace Solution (FTTS) !