GNFC to invest Rs 3,000cr for capacity expansion

Company to set up three new plants at Bharuch.

State-run Gujarat Narmada Valley Fertilizers Company Ltd (GNFC) has embarked on a major expansion drive.

The Bharuch-based company plans to infuse around Rs. 3,000 crore over the period of next three years for its various capacity expansion plans. This includes setting up three new plants at Bharuch.

GNFC, one of the leading fertlisers manufacturers in the country, has drawn up plans to increase the capacity of its existing products, which include Concentrated-Nitric Acid, Weak Nitric Acid, Toluene Di-isocynate (TDI).

Also, the company is in the process of getting approval from the Centre to set up a plant for feedstock conversion to get cheaper gas.

 

The expansion projects along with new plants are likely to attract investment of approximately Rs. 3,000 crore, the official added.

"A greenfield project to manufacture Toluene Di-isocynate (TDI) is on the cards," said a top official of GNFC.

The total production capacity of the proposed TDI plant would be around 50,000 tonnes per annum (TPA) and the company estimates to pump in nearly Rs. 1,650 crore for the project, which is expected to be completed by the fiscal 2010-11.

Currently, GNFC produces 15,000 TPA of Toluene Di-isocynate and the new plant will be three times bigger than the existing TDI plant of the company.

Recently, GNFC revamped its methanol manufacturing facility. The company operates three plants for methanol production, which collectively have a production capacity of 725 tonnes per day (TPD).

"We increased the capacity of our largest methanol plant by 175 TPD to take its total production capacity to 600 TPD. Post expansion, all the three plants have collective output of 900 TPA," the official added.

Apart from TDI plant, two more plants for Concentrated-Nitric Acid (CNA) and Weak Nitric Acid (WNA) have been planned, which may cost nearly Rs. 280 crore to the company. The company proposes to enhance CNA production by 150 TPD through its new plant.

As on date, the company has CNA production capacity of 200 TPD. Another new plant for WNA is expected to have a production capacity of 300 TPD. The output of the company's existing WNA plant is 850 TPD.

The company has received approvals and licenses for the three new plants. As per the policy of the Central government, the company proposes to set up a plant for feedstock conversion to produce cheaper gas for its consumption. However, the company is yet to get approval for the same. The project is estimated to cost Rs. 750 crore.

"We plant to fund the expansion projects through internal accruals and debt," the officials revealed.