Mumbai: The public sector
Rashtriya Chemicals and Fertilisers (RCF) has approached the Union
government to convert a part of its equity holding
(92.5 per cent) into long-term loans in order to meet the growing
requirement of finances for acquisition of two fertiliser plants
and one chemical plant in the next three-to-six months.
RCF intends to acquire
about 74 per cent equity stake each in Paradeep Phosphate,
Rourkela Fertiliser project and Hindustan Organic Chemicals for
which the expression of interest letters were submitted to
RCF CMD D K Varma said
the reduction of government equity level would also help the
company to fulfill the aspirations of shareholders, who preferred
to get higher dividend from the company following its improved
performance in the last five consecutive years.
last five years, the company has enhanced its turnover
from Rs 1,100 crore to nearly Rs 2,500 crore. In 2000-01,
its net profit was up by 85 per cent at Rs 65 crore, he
said. This was achieved mainly due to the modernisation
and expansion of existing plants at Trombay, Mumbai, and
Thal in Raigad district of Maharashtra.
Further, it has made
sustained efforts to reduce the cost of production by 15 per cent
through rationalisation of manpower and cutting the cost of energy
inputs, Varma said. Discussing business expansion, he said the
proposed Rs 300-crore di-ammonium phosphate project in joint
venture with Hindustan Zinc and Rajasthan State Mines and Minerals
is at the final stage of implementation -RCF holds 50 per cent
stake in the project while other two partners hold 25 per cent
Besides, the company is
implementing two major expansion programmes of urea production at
Thal at an estimated cost of Rs 1,446 crore. However, the success
of this expansion plan would largely depend on the government''s
new policy on fertiliser trade and also the availability of
feedstocks such as liquefied natural gas at competitive rates.
For the current financial
year, there are plans to achieve urea production at 17.8 lakh
metric tonne (lmt), complex fertilisers at 6.13 lmt and chemical
products at 150 lmt. The expansion at Thal would provide an
additional production of 7.68 lmt of urea annually in future, he
He said the board of RCF
has decided to put each of its operational unit at home and abroad
under the direct responsibility of an executive director, who
would be accountable for the performance of the unit.
Elaborating on the
organisational restructuring process of the company, Varma said:
We are fixing responsibility and accountability on the
newly-posted executive director at each unit such as Thal and
Trombay. The executive director would directly report to the
board on the performance of the unit.
This was a part of the
overall streamlining measures initiated by the management in order
to double the turnover from the current Rs 2,500 crore to Rs 5,000
crore in the next five years and further to Rs 10,000 crore by the
end of next year.