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RCF commenced operations in 1978, after the reorganization of the erstwhile Fertilizer Corporation of India. Today, it is the largest producer of fertilizers and chemicals in the public as well as the private sectors in India. Rashtriya Chemicals & Fertilizers Ltd. (RCF) is one of the largest fertilizer and chemical company in Asia. The company has its manufacturing facilities at Trombay and Thal respectively. These units produce Nitrogenous, Phosphatic and Postash Fertilizers along with wide range of Industrial Chemicals. The company has good marketing network spread all over the country, which is a prerequisite in a decontrol scenario. The company has earmarked about Rs25bn towards expansion and modernization, for the next five years. The company is currently at the threshold of privatization. Of the equity base of Rs5.10bn, government holding is about 92%. The cabinet committee for disinvestment has decided to offload 51% stake to a strategic partner. The partner would be finalized via a bidding process carried out by a global advisor. RCF has depreciated plants and the cost of manufacturing urea is as low as Rs4600 per ton while the international prices are about Rs6500/ton. In a decontrolled scenario this would translate into profits of about Rs2000/ton. Fertilizers (80%): Fertilizers contribute to 80% of the turnover, which is inclusive of DAP trading and sale of complex fertilizers. The company's major markets include Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Tamil Nadu, Uttar Pradesh, and Bihar. In Maharashtra, RCF has 60% market share. The complex fertilizers Suphala 15:15:15 and 20:20:20 are also widely used in these areas. Chemicals (20%): Industrial chemicals contribute to about 20% of the turnover. RCF is one of the leading players in Methanol with 60% market share. However the company has no plans of increasing its exposure in chemicals within RCF since prices fluctuate widely.
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