Aug. 7, 2019
Leading Fertilizer Company ‘FACT’ is ready to enter the Eastern markets with the aim to build up a pan-India presence.
The company is gearing to sell ammonium sulphate in West Bengal and for this it has signed a MoU with the Hindustan Insecticides Ltd.
At first, 5,000 tonnes will be dispatched per month by train and the quantity will slowly be increased, depending on the demand in the State. The new plan is estimated to get an additional revenue of Rs. 8 crore a month, told Chairman & Managing Director of FACT, Mr. Kishor Rungta,.
The company is also mulling to sell its flagship products like ammonium sulphate & Factamfos in Maharashtra via Rashtriya Chemicals & Fertilisers Ltd. Negotiations for the same are going on and the sales are expected to start soon.
Rungta said, so far, FACT has been confining itself to the Southern States but the new initiatives are part of looking at extra avenues to expand its footprint across the country rather than immediate revenue gains.
FACT is also going in for imports & the first consignment of 27,000 tonnes of complex fertilizers from Russia has arrived at the Tuticorin Port. The total consignment of complex fertilizer NPK 16:16:16 for the entire year was 5 lakh tonnes that would be handled through the main ports of Vizag and Paradip. The present import price of complex fertilizer is $285 / tonne.
Rungta added that “We were not into fertilizer imports for a long time. But as we are expanding our horizons, such shipments are essential in meeting India’s fertilizer demand and targeting a business turnover of Rs. 3,000 crore”.
He also said that the delayed monsoon in the southern States had affected the sales in the month of June, forcing the fertilizer company to produce just 70,000 tonnes against the monthly target of one lakh tonnes. But, the progress in rains helped attain the target in July. Rungta told that the availability of LNG as feed stock at a cutthroat price less than the pool price of $12 mmBtu will boost productivity & enable it to exceed the production target by at least 25%.