Mangalore Chemicals & Fertilizers Ltd

Mangalore Chemicals & Fertilizers Ltd

Mangalore Chemicals & Fertilisers a part of UB Group is incorporated in 1966 as Malabar Chemical & Fertilisers Pvt Ltd engaged in the business of manufacturing Ammonia Urea Di-ammonium Phosphate and Ammonium bicarbonate. The main product urea is marketed under the Mangala brand name. The company was originally promoted by Duggal Enterprises Pvt Ltd International Development & Investment Company Bahamas and the Karnataka Government. The company went public in the next year of it's incorporation ie in 1967. In December 1991 it was renamed as Mangalore Chemicals & Fertilizers (MCF).The company came into the fold of UB Group in 1990 after it was selected to bail out the ailing company by the chief promoter of the company Karnataka Government in conjunction with the Institutions/Banks led by IDBI & SBI. UB Group suspended the operations of MCF due to labour unrest during 1992. Subsequently MCF became a sick unit and was referred to the BIFR. In 1995-96 many of the concessions sought in the revival plan prepared by the UB Group including the introduction of SPIC and Emirates Trading Agency as co-promoters. This were not accepted by the Government of Karnataka Banks and Government of India. BIFR directed IDBI the operating agency to issue an advertisement calling for bids. No acceptable bid was however recieved and accordingly BIFR directed the existing promoter to submit its final revival proposal. The proposal is being actively pursued by the UB Group for the revival of the company.In recognition of the vastly improved operations and financial health in the last five years the BIFR in its order dated Decemeber 1 2000 circulated a revival scheme for your company. The scheme is based on the acceptance of the offer of one-time settlement to all the lenders. In April 2000 the company completed the first phase of the revamp of the Ammonia/ Urea plants at a cost of Rs.53 crores. The second phase is under implementation and completed in May 2002 at a cost of Rs.52 Crores. In addition to the above revamp and modernisation programme the company is also planning to diversify into some other business and therby lower the dependence on just one line of business.Company has received Award for second consecutive year for Improvement in Overall Performance of a Company by Fertilizer Association of India.