Madras Fertilizers Ltd

Madras Fertilizers Ltd

MFL was incorporated in December 1966 as Public Sector undertaking promoted by Government of India (GOI) and AMOCO India Inc. (Amoco - a Wholly owned subsidiary of Standard Oil Company of USA) holding 51% & 49% of Shares Respectively. MFL commenced commercial production in November 1971. In 1972 National Iranian Oil Company (NIOC) was inducted as shareholder acquiring 50% of AMOCO shareholding in MFL. In 1985 AMOCO has disinvested their MFL shares to GOI NIOC & Public. Now GOI has holding 59.50% NIOC has holding 25.77% & and Public has holding 14.73%.MFL is manufacturing Ammonia Urea Complex Fertilizers and Biofertilizers and trading Agrochemicals. MFL has its Plant Facilities & Head Quarters located on a sprawling 350 acres at Manali about 20 km north of Chennai City. MFL having enhanced capacity to produce 346500 MT of Ammonia 486750 MT of Urea 840000 of NPK and 400 MT of Bio Fertilizers.MFL was one of the First Modern Fertilizer Plant Producing granulated Complex fertilizers in South India. In 1996 MFL was Accredited with ISO 9002 the first among the Public Sector Fertilizer Units. MFL implemented major Modernisation and Substantial Expansion of its plants. Due to delayed delivery of materials from Indian & Overseas Vendors. The project was deffered and it was completed in August 1997.The company entered in to capital Market through Public issue The company issued 28630000 Equity Shares of Rs.10 each at a premium of Rs.5 per share. The company was putting up a Pilot Tissue culture Laboratory for producing 3 Million Plantlets. Subsequently the company dropped the Tissue Culture project and concentrated on its Core Business.In 2002 The Urea Prill Tower Modification by Monsanto Enviro-Chem Systems Inc. (MECSI) was taken up during the Scheduled in June 2001 but mechanical system was made ready on July 2001. MFL was Accredited with ISO 14001 certificiation for Environment Management System (EMS) by Indian Register Quality Systems (IRQS). The company has installing a Fluidized Bed Prill Cooling System downstream of Prill Tower in order to achieve a Prill Temperature of 55-60 Deg Centigrade. The System was commissioned in August 2003. In 2004 The New Urea Pricing Policy implemented by GOI from April 2003 onwards replacing the existing method of retention Pricing Scheme. Due to the impact of New Pricing scheme MFL had to face pains of irrational Price Concession scheme in respect of Complex Fertilizers. The company faced major setback and MFLs networth was eroded. MFL became a sick Company. BRPSE (Board for reconstruction of Public Sector Enterprises) reviewed the performance and had discussions with the company. BRPSE submitted their recommendations to GOI.