PHOSPHATIC FERTILISERS: CHILD OF A LESSER GOD!
Article Abstract:
Urea prices were hiked by Re1 per kilogram (kg) in the recent budget. It was reduced by 50 paise (Rs0.50) per kg and later withdrawn totally. The policies of the government are not conducive for the phosphatic fertilisers company. These are diversifying into other business activities. In August 1992, the phosphatic fertilisers were decontrolled. Nitrogenous fertilisers are still under retention price scheme (RPS), their prices were decreased by 10 percent in 1992. The NPK ratio has increased from 5.9:2.4:1 to 8.9:2.8:1 against the ideal ratio of 4:2:1. The government has given concessions to decrease the prices of di- ammonium phosphate (DAP) and muriate of phosphate (MOP). It cancelled the customs duty on phosphoric acid. It gave an ad-hoc subsidy of Rs1,000 per tonne for DAP which was increased to Rs3,000 per tonne in 1996-97. For single super phosphate (SSP), the subsidy was increased from Rs340 per tonne to Rs500 per tonne. In April 1997, the subsidies were hiked to Rs3,750 and Rs600 respectively for DAP and SSP. In 1998-99, the total subsidy from the government will be Rs12,500 crore (Rs8,000 crore for urea and Rs4,500 crore for phosphatic fertilisers). About 40 percent of the DAP consumed in India is imported. The cost of production of DAP indigenously works out to $250 per tonne. The farmgate price of DAP is about Rs13,000 compared to the price of imported DAP's Rs11,600. DAP price is likely to go up in the coming months. The N:P:K ratio was 10.01:2.89:1 in 1996-97 and 8:3:1 in 1997-98. (rk)
Comment:
India: Urea prices were hiked by Re1 per kilogram in the recent budget
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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INDO GULF FERTILISERS - BANKING ON COPPER
Article Abstract:
Indo Gulf Fertilisers Ltd (IGFL) has decided to diversify into copper by setting up a 0.1 million tonnes per year copper smelter. The company is the lowest cost producer of urea. However, with irregular natural gas supply and increase in price of urea, it has decided to diversify. Despite having a number of advantages there has been no growth in profits making it necessary for IGFL to expand. The company will expand its copper smelter from 0.1 million tonnes to 0.15 million tonnes per year investing Rs3.4 billion. This business is expected to bring in Rs20 billion to the company by the year 2000. The smelter will also give a derivative called slime from which gold and silver can be extracted. (nv)
Comment:
Decides to diversify into copper production by building a 0.1 mil tonnes per year copper smelter in India
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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GOOD PROSPECTS: INDO GULF FERTILISERS AND CHEMICALS CORPORATION
Article Abstract:
Indo Gulf Fertilisers and Chemicals Corporation (IGF) has a 0.1 million copper smelter at Dahej besides a 2,250 tonnes per day urea plant at Jagdishpur in Uttar Pradesh. The company is a low- cost urea producer and will gain if the Hanumantha Rao committee's recommendations are implemented. Over the next few years, copper will contribute to a major part of the company's turnover. In the first half of 1997-98, IGF's net profit rose 62.5 percent. (nv)
Comment:
Operates a copper smelter at Dahej, India, besides a 2,250 tonnes per day urea plant at Jagdishpur in Uttar Pradesh, India
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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