Jan. 14, 2019
After a record production of urea, the National Fertilisers Limited is now diversifying its product portfolio to agro-chemicals, City Compost and seeds. The Chairman and Managing Director of NFL, Manoj Mishra, shares details of the company’s future plans
How has the performance of NFL been so far in 2018-19?
NFL is steadily moving towards a successful 2018-19 after the best ever performance for the last three years since 2015-16. The company has performed exceedingly well in the first half of this year. With a capacity utilisation of 118 per cent in urea production and a tremendous growth in the sale of fertilisers, our income has grown by 35 per cent to Rs 5,405 crore and the profit has jumped by 24 per cent atRs 178 crore in H-1.
Your fertiliser sale is soaring since the last few years. What are the key drivers?
A major part of our income is now being contributed by the non-urea business, which is growing year by year, since we changed the business model in 2016. Riding on this business and our own fertilisers, we have touched a new sale figure of 34.50 lakh MT during April- December 2018. In addition to importing and marketing fertilisers like DAP, NPK, APS and MoP, we are also handling and marketing the imported urea now, as we have received the rights for handling urea imported on the Government’s account at Tuna (Gujarat), Vizag (Andhra Pradesh) and Paradip (Odisha) ports.
Is there any other area where the company is exploring its growth options?
Seeds are the next business segment where we are focusing after fertilisers. We are setting up our own seed processing units at three locations. The company is also developing more seed research farms in Nangalto to exclusively produce the highest quality of foundation seeds from the breeder seeds by ensuring the best isolation (avoiding any varietal impurities). After seeds, the trading of agro-chemicals is another segment where NFL’s Kisan brand shall be wooing customers.
What are the future plans of the company?
We are making efforts to increase our market share in the fertiliser business despite it being a stagnant market. With our own production of 38 lakh MT urea and the growing volume of imported fertilisers, we want to have a significant market share in all the categories. We have expanded our marketing network even to the southern states to distribute our products all over the country. So far, we were a single product company majorly focused in northern part of India.