Professional Documents
Culture Documents
&
CHAMBAL FERTILIZERS AND CHEMICAL
LIMITED
2
TABLE OF CONTENTS
1. INTRODUCTION............................................................ ...............4
1.1 Fertilizer production..................................................................................................4
1.2 Demand - Supply Scenario in Fertilizer....................................................................4
2. MAJOR SEGMENTS IN FERTILIZERS....................................5
2.1 Nitrogenous Fertilizers..............................................................................................5
2.1.1 Urea....................................................................................................................6
2.1.2 Other Nitrogenous Fertilizers............................................................................8
2.2 Phosphatic Fertilizers................................................................................................8
2.2.1 DAP (Di-Ammonium Phosphate)......................................................................8
2.2.2 SSP (Single Super Phosphate)...........................................................................9
2.3 Potassic Fertlizers...................................................................................................10
3. ENHANCEMENT IN FERTILIZER AVAILABILITY.............11
3.1 Economic Reforms and Its Impact..........................................................................11
3.2 Investment in fertilizer industry -Public, Private and Cooperative sectors.............11
3.3 Imports of fertilizers................................................................................................11
3.4 Distribution of fertilizers.........................................................................................12
3.5 Fertilizer promotion................................................................................................12
3.6 Quality Control of Fertilizer:..................................................................................13
3.6.1 Agencies involved in Quality Control of Fertilisers........................................13
4. POLICY INITIATIVES.................................................... ............14
4.1 Pricing policy..........................................................................................................14
4.2 Fertilizer subsidy.....................................................................................................14
4.3 Fiscal concessions...................................................................................................15
4.4 Transport infrastructure...........................................................................................15
4.5 Setting-up New Capacities......................................................................................15
4.5.1 Addition to Domestic capacities......................................................................15
4.5.2 Joint ventures abroad.......................................................................................16
5. UREA IMPORT BY CHINA AND ITS IMPLICATIONS FOR
INDIA.................................................................................... .............17
6. TOWARDS NEW FERTILIZER POLICY.................................18
7. CHAMBAL FERTILISERS AND CHEMICALS LIMITED....20
7.1 Company Profile ....................................................................................................20
7.2 Manufacturing.........................................................................................................21
7.2.1 Manufacturing Process.....................................................................................22
7.3 Operations and Supply Chain Management...........................................................24
7.4 Environmental Protection.......................................................................................24
7.5 Awards ....................................................................................................................25
REFERENCES................................................................... ...............28
BIBLIOGRAPHY.............................................. ...............................28
ANNEXURE................................................................ ......................29
TABLES.................................................................... .........................30
3
1. INTRODUCTION
1.1 Fertilizer production
The Indian fertilizer industry in the past 50 years has grown in size and stature and
presently ranks third in the world. In the planned economic development of the country,
self sufficiency in food grain production was considered as the prime priority. Increase in
fertilizer use along with irrigation facilities, use of improved seed and adoption of better
agronomic practices paved the way for increasing crop productivity and production.
Fertilizer use in India increased from 66 thousand tons of major plant nutrients in 1951-
52 to 22.7 million tons in 2003-04. Fertilizer contributes 40-50% increase in food grain
production and they have vital role to play in any strategy to meet the challenges of
rising demand of food, fiber, forage and fuel.
Fertilizer consumption of plant nutrients per unit of grossed cropped area in India is still
very low average being 91.5 kg/ha. Productivity of food grain crops in the country is also
quite low, around 1.6 t/ha, which can certainly be doubled by enhancing per unit average
fertilizer use. Fertilizer consumption has to increase substantially in order to achieve the
food grain requirement of 220 million tons by the year 2002.
The Group also considered the details of estimates made by various agencies like
Fertilizer Association of India (FAI), National Informatic Centre (NIC) and Department
of Agriculture and Cooperation (DAC), Government of India and concluded that in the
terminal year of Ninth Plan there is likely to be a surplus of N supplies to the extent of
0.63 million tons. However, it may be worthwhile to note that some of the projects have
not materialised and finally N supplies might also show a deficit. There would be a short
fall in phosphate to the extent of 1.34 million tons. The entire demand of 1.83 million
tons of potassic fertilisers would be met from imports.
4
2. MAJOR SEGMENTS IN FERTILIZERS
The Indian fertilizer industry is broadly divided into nitrogenous, phosphatic and
potassic segments. In addition to these, nutrients are combined to produce several
complex fertilizers. To express the nutrient constitution of fertilizers, the grade of a
fertilizer is expressed as a set of three numbers in the order of percent of Nitrogen (N),
Phosphate (P) and Potash (K). The straight nitrogenous fertilizers produced in the
country are urea, ammonium sulphate, calcium ammonium nitrate (CAN) and
ammonium chloride. The only straight phosphatic fertilizer being produced in Sector
Report: Fertilizer Industry India /Economics the country is SSP. The complex fertilizers
include DAP, several grades of nitrophosphates and NPK complexes. Urea and DAP are
the main fertilizers produced indigenously.
INDUSTRY STRUCTURE
5
2.1.1 Urea
Currently, the urea capacity is about 20.2 m.t. while consumption is about 21.7 m.t. The
demand is expected to grow at a CAGR of 4 percent and by next few demand would
grow to around 23 m.t. while the estimated production would be about 21 m.t. The top
six producers of urea in India are
Urea, the most widely used fertilizer, is under government control, as urea manufacturers
are reimbursed on a cost plus basis under the RETENTION PRICE SCHEME. The farm
gate price of urea is fixed at INR 4,600 per tonne w.e.f February 29th, 2000, excluding
local levies, which is amongst the lowest in the world and is heavily subsidized.
The production of urea involves the production of ammonia, which is then converted to
urea. Ammonia can be synthesized using any of the following feedstock: natural gas
(NG), naphtha, low sulphur heavy stock (LSHS), fuel oil and coal. The urea segment of
the industry is likely to be affected by significant changes in Government policy in the
medium term. These changes can be broadly categorised into two types—those that
affect profitability by modifying the current rules of competition and the more
fundamental ones that replace the existing rules themselves.
Imports
Imports of urea significany lower in 98-99 due to large carry over stock at the
6
Price movement of urea
Urea Price Once India
3 50
enters the
international
3 00
market, urea
2 50 prices are likely
Price $/MT FOB
2 00 to rise again. It
is estimated
1 50
that a purchase
1 00 of 2 to 3
50 million tonnes
0
of urea from the
international
1981
1971
1991
2001
1966
1968
1969
1974
1977
1987
1989
1994
1999
2002
1964
1976
1979
1983
1984
1985
1996
1997
2004
1965
1978
1963
1967
1970
1972
1973
1975
1980
1982
1986
1988
1990
1992
1993
1995
1998
2000
2003
market by
Till Oct 2004
Y ear India, the
purchase price
of imported
urea would jump between 150 and 250 percent. However in the medium term the
international price of urea is expected to remain depressed and the removal of
quantitative restrictions (QRs) can hurt the industry.. A logical outcome of this demand
could be the concurrent removal of pricing and distribution controls. The fertilizer
ministry has already decided to decontrol urea completely in three phases by FY07. The
transition period will be used to gradually reduce subsidy by increasing the selling price
at regular intervals thus making the cost competitiveness of domestic urea units critical.
7
2.1.2 Other Nitrogenous Fertilizers
The other nitrogenous fertilizers — CAN, ammonium sulphate (AS) and ammonium
chloride (AC) — were decontrolled in 1991. They were brought back under the
RETENTION PRICE SCHEME in 1992 but decontrolled again in 1994. As there are no
subsidies on these fertilizers, the profitability of their manufacturers has been hit by the
recent increases in feedstock prices. The total installed capacity of CAN in the country is
942,500 tonnes per annum (tpa). The major CAN producers in the country are NFL,
Steel Authority of India Ltd. (SAIL) and Gujarat Narmada Valley Fertilizers Company
Ltd. The total installed capacity of AS is 864,500 tpa. AS contains about 21 percent
nitrogen and 24 percent sulphur. It has traditionally been popular in some parts of the
country. The principal raw materials for its manufacture are ammonia, sulphuric acid and
gypsum. The major manufacturers of AS are Fertilizer Corporation of India (FCI),
Hindustan Fertilizer Corporation Ltd. (HFCL) and Gujarat State Chemicals and
Fertilizers (GSFC). AC is used as a fertilizer for rice and some other crops. It is
manufactured in India by Tuticorin Alkali Chemicals & Fertilizers, and Punjab National
Fertilizers and Chemicals (PNFC).
The top five producers of DAP in the country are Paradeep Phosphates, IFFCO, GSFC,
SPIC and Godavari Fertilizers. Together with the domestic production of 4 m.t. and an
opening stock of 0.9 m.t., the total availability of DAP in the country in FY04 was 8.2
m.t. with highest ever DAP imports of 3.3 m.t. in the country. The estimated sales of
DAP in FY04 was 6.4 m.t. Thus, there was an excess supply of around 1.8 m.t. The DAP
capacity of the country is expected to increase by 2.80 mtpa by the end of FY06 and the
demand for DAP is estimated to grow by 10 to 12 percent. The subsidy is INR 4,450 per
tonne on indigenous DAP and INR 1050 per tonne on imported DAP. With the selling
price for DAP fixed at INR 8,700 per tonne, total realization for DAP manufacturers is at
INR 13,100 per tonne. DAP is manufactured using phosphoric acid (PA) and ammonia.
PA is either imported or manufactured. The manufacture of PA requires rock phosphate
(RP) and sulphuric acid. Thus DAP units are either PA based or RP based. Also units can
either produce ammonia in-house or purchase imported ammonia. In India, 69 percent of
8
DAP capacity is based on PA, and 80 percent of this PA requirement is met through
imports. The balance 31 percent of DAP capacity meets its requirements of RP and
sulphur largely through imports. Since phosphatic fertilizers are not subsidised on a cost
plus basis, escalations in raw material prices have a major impact on the profitability of
the manufacturers. The subsidy on phosphatic fertilizers is set on the basis of the
prevailing international prices of ammonia and PA. Earlier, the subsidy calculation was
ad hoc and subsidised only the P component. Under the new subsidy structure, both the
N and the P component are subsidised. The subsidy on DAP is ascribed to both the
nitrogen and phosphate content. With the new policy, it makes sense for DAP
manufacturers to import ammonia, given the low prevailing international price. Since the
subsidy is linked to international prices of ammonia, units using indigenous ammonia
have suffered, as they do not get compensated for the increase in the costs of production.
DAP is imported by India in significant quantities. The concession on indigenous DAP is
higher than that on imported DAP, which keeps the Indian industry competitive. The
differential concession acts as a kind of import duty. In the past the differentials were
about INR 1000 and INR 1500 a tonne. In the first two quarters this year, they were INR
3400 a tonne and INR 2350 a tonne respectively. However, even this differential cannot
prevent DAP imports from being relatively more profitable when the international prices
fall sharply. Since DAP imports are decanalised and with the international price of DAP
in FY00 falling by USD 50 per tonne in two months led to a glut of imports and an
ensuing price war in the domestic market on account of large imports competing with
local supplies.
The total installed capacity of SSP in the country is 6.48 m.t. per annum. Unlike urea and
DAP, the concentration of major players in SSP is low, with the top five players
contributing to barely30 percent of the total production. At present, about 79 medium
and small scale units are engaged. The major raw materials for SSP are RP and sulphur.
The current level of subsidy on SSP is INR 700 per tonne.
9
2.3 Potassic Fertlizers
In the absence of potash deposits of commercial significance in India, the entire
requirement of potassic fertilizers is imported. The major potassic fertilizer consumed in
the country is Muriate of Potash (MOP). The major importers of MOP in India are Indian
Potash Ltd. (IPL), Paradeep Phosphates Ltd. (PPL), Southern Petrochemical Industries
Chemical Ltd. (SPIC), IFFCO, and Hind Lever Chemicals. The quantity of imports is
governed by the international price of MOP and the subsidy given by the Government to
MOP traders. In FY99, 2.58 m.t. of MOP was imported compared to 2.38 m.t. in FY98.
The increase in subsidy on MOP announced in December 1998, from INR 2000 per
tonne to INR 3000 per tonne, triggered this growth. The growth would have been higher
had the subsidy been announced earlier in the financial year. Concession on MOP was
increased from INR 3000 to INR 3250 per tonne in FY00, which would provide a further
impetus to MOP imports.
10
3. ENHANCEMENT IN FERTILIZER AVAILABILITY
3.1 Economic Reforms and Its Impact
When the Indian Economic Reforms Programme was launched, the liberalization and
macroeconomic stabilization was high on the Government’s Agenda. The Fertilizer Sector was
also affected because of these reforms which resulted in increased prices of fertilizers initially
and decontrol of P&K fertilizers subsequently. With effect the Government implemented three
major policy decisions
However, within a span of three weeks the Government revised the extent of the price hike to
30% w.e.f. 14th August, 1991 and exempted the small and marginal farmers from it completely.
With effect from 25th August, 1992 the Government decontrolled all phosphatic and potassic
fertilizers and abolished the RETENTION PRICE SCHEME covering the former, brought back
ammonium sulphate, CAN and ammonium chloride within the purview of the control and subsidy
and reduced the selling price of urea by 10 per cent while retaining this under control of the
RETENTION PRICE SCHEME. These policy changes were expected to achieve
11
capacity in such a way that about one million tons of nitrogen could be met from
imports.With the decontrol of phosphatic and potassic fertilizers in 1992, import of DAP
and MOP has been freed. Import of raw materials like rock phosphate, phosphoric acid,
sulphur and ammonia has been also decanalised since then.
In August, 1992 phosphatic and potasssic fertilizers were decontrolled and their
distribution is- over taken by the manufacturer or importers. Government is, however,
keeping a close watch and any imbalance is brought to the notice of the industry. Urea
continues to be under control and its distribution is governed by ECA allocation.
12
tribal and backward areas. Use of bio-fertilizers and integrated plant nutrient
management is being promoted by Government of India and the Industry.
To ensure that supply of good quality fertilizers to the farmers, strict check is exercised
over the quality of fertilizers in the State, under fertilizer Control Order, 1985. All the
Agricultural Development Officers (B.Sc.Agri.)/Agricultural Officers, Chief Agricultural
Officers. Joint Director of Agriculture (Admn. Wing) have been declared Fertilizer
Inspectors under FCO 1985 to check stocks of fertilizers and draw samples in their
respective jurisdiction large number of fertilizers samples are taken every year from the
stocks of fertilizers dealers, especially of those fertilizers which are more prone to
adulteration i.e. DAP, SSP Complex fertilizers, Zinc-Sulphate and Ferrous Sulphate etc.
Quality control campaigns are also organized in the State during peak consumption
period of Kharif and Rabi seasons. There are two Fertilizer Quality Control Laboratories
situated at Ludhiana and Faridkot with analyzing capacity 2000 and 1500 samples per
annum respectively. The legal as well as administrative action is being taken against the
defaulters whose samples are declared Non-Standard
13
4. POLICY INITIATIVES
4.1 Pricing policy
The fertilizer policy is aimed at increasing consumption to meet the food and fiber
requirement of growing population through setting up required production capacities,
ensuring that quality fertilizers are made available to the farmers throughout the country
at uniform and affordable price. It was also recognized that fertilizer use should be
profitable to the farmers for which he must get a certain minimum return for the produce.
This led to the announcement of procurement prices and minimum support prices for
several crops from 1970 onwards. The Marathe Committee was assigned the task of
resolving the issue of keeping Farm Gate Prices (FGP) of fertilizers at an affordable level
in the face of rising production/import costs. Its recommendations in 1977 led to the
birth of the Retention Price Scheme (RPS). This scheme was intended to ensure that both
the fertilizer producers as well as the farmers should find it worthwhile to produce and
use fertilizers. The policy aimed that each manufacturer is able to get 12% post-tax
return on investment on efficient operation regardless of the location, age, technology
and cost of production. In addition, the government agreed to reimburse the cost of
transportation from factory gate to railhead and also take care of the distribution margin.
The RETENTION PRICE SCHEME is now restricted to urea only.
2005. As a result, domestic urea prices have risen from Rs3320/t (US$ 83/t) to Rs3660/t
(US$ 91/t) for bagged deliveries to farmers. The average subsidy pattern of urea is
around US$ 84/t. Prior to decontrol of phosphatic and potassic fertilizers (in the year
1992) subsidy was available to all domestic and imported fertilizers. The fertilizer
subsidy increased from US$ 418 million in 1999-00 to US$ 2446 million in 2004-2005.
14
However, the subsidy bill after the decontrol of phosphatic and potassic fertilizer
declined and remained below 1990-91 level.
2. Lowering railway freight on phosphatic fertilizers (except SSP) from September, 2002
which amounted to 35% reduction in rail transport.
15
LNG or naphtha. Hence, the new capacities would be encouraged to be set up in deficit
or other feasible regions, based on naphtha but with specific provision to change over to
LNG on its availability. The new capacities which have been set up recently and are
under implementation during the Ninth Plan period are expected to yield an additional
capacity of 3.9 million tons of urea .The Sixth and Seventh Plan Working Group on
fertilizers had envisaged 75% self sufficiency through indigenous production of
phosphatic fertilizers. The Working Group on fertilizers for Eighth Plan had
recommended reduction of the dependence on imports to 15% of total demand of
finished products (0.85 million tons P2O5 in 2001-2002). This Group also proposed that
additional capacities to manufacture DAP should be based on imported phosphoric acid.
For this purpose Indian companies should be encouraged to set phosphoric acid plants in
countries where cheap raw materials are available.
Lack of availability of natural gas in the country has prompted investors to collaborate
for joint ventures abroad. Gulf countries, due to abundant availability of gas, nearness to
Indian shores and investment friendly environment, are becoming the first choice for
joint ventures. In the phosphate sector also, increase in domestic capacity has to be
supplemented by supplies from joint ventures abroad. It is heartening to note that apart
from the operating plants for phosphoric acid in Senegal and Jordan, some more such
joint venture projects and expansions are being contemplated by the Indian companies.
16
5. UREA IMPORT BY CHINA AND ITS IMPLICATIONS
FOR INDIA
SINCE late 1970s, both China and India have emerged as dominant forces in the world fertiliser
market. Between 1978-79 and 1984-85, they together accounted for 50 to 55 per cent of growth
in the world consumption and imports of fertilisers, and nearly one-third of growth in the world
fertiliser production. India and China have been major importers of urea. But the imports of urea
to the two countries have fluctuated considerably from year to year. In recent years, the two
countries together have accounted for more than one-third of the world imports of urea.
Fluctuations in the imports have largely been due to varying rainfall in the two countries, as both
the countries still largely depend on the rains for the irrigation. Political factors, like statal fixing of
the prices of various fertilisers, have also contributed to skews in demand of urea in the two
countries. While the issue of food security to meet the food requirements for the growing
population has dictated the need to increase crop production in both the countries, emotions
rather than the objective decision-making in the two countries have influenced many decisions.
The long-term goal of self-sufficiency in supply through development of domestic industry has
not received sufficient attention. Fertiliser import policy has been governed, more often than not,
by short-term and ad hoc considerations such as clearing inventories, savings in foreign
exchange, and such other institutional and infrastructural constraints. This has had influence on
fertiliser production in both the countries. Recently China has embarked upon a strategy of
achieving self-sufficiency in fertiliser production to attain food security, and replace some of its
old plants of complex fertilisers with large-sized plants of urea. This means that China would
vacate a large demand of import of urea from the international market. A portent to this has been
in evidence as the volume of fertiliser imports by China during the last two years went down
considerably. It is relevant in this context, therefore, to examine issues which have implications
for a new orientation of fertiliser policy in India.
World capacity for the production of urea in 1995 was 102 million mts. This capacity is expected
to rise to half a billion mts by the year 2010. But the world capacity has never been fully utilised
mainly due to reasons of market. Technical reasons have also been responsible for this. In fact
historically, the capacity utilisation of the world urea industry has been at an average of 87 per
cent. In fact, in the past the domestic consumption has been only up to three-quarters of the
world production. The domestic consumption of the world production in 1996 was 74 per cent,
leaving a significant 26 per cent for international trade. The oil crisis of 1970s and 1980s saw a
substantial growth in export-oriented urea capacity at low cost locations. This new capacity was
largely built in the Arab Gulf, the former Soviet Union (FSU), central Europe, Indonesia,
Malaysia, and Caribbean Gulf. All these locations have vast reserves of natural gas at low cost.
The prospect for total fertiliser demand in India and China in the coming years depends on many
factors which are not only economic and political but also climatic, given the rain dependency of
the bulk of the agriculture.
17
6. TOWARDS NEW FERTILIZER POLICY
With the beginning of the economic reforms in early 1990s, there has been policy shifts
with relation to fertilizer sector. Some of the major changes are as under:
The Government also felt the need for review of the existing system of subsidisation of
urea under the Retention Price Scheme (RPS) existing since the year 1977. For this
purpose and with a view to suggest an alternative broad based scientific and transparent
methodology, the Government of India constituted in January 1997 a High Powered
Fertilizer Pricing Policy Review Committee under the Chairmanship of Prof. C.H.
Hanumantha Rao, former Member of the Planning Commission. The Committee
submitted its report on 3rd April, 1998. The Committee has recommended the
discontinuance of the unit wise Retention Price Subsidy Scheme, which is presently
applicable to the urea units and has suggested an alternative uniform Normative Referral
Price based on the economic principle of Long Range Marginal Cost for the industry as a
whole. The Committee has also recommended that in the interest of sectoral
cohesiveness, phosphatic and low analysis nitrogenous fertilizers may also be brought
within the ambit of this scheme. According to the Committee, this methodology would
ensure enhanced efficiency in the production of fertilizers without affecting most of the
existing units and would also encourage creation of new capacities. The
recommendations of the Committee are towards phased deregulation and for progressive
market oriented system.
(a) Government to fix maximum Farm Gate Price (FGP) based on its perception of urea
prices considered 'affordable' by farmers. Fertilizer units will be allowed to fix retail
prices subject to ceiling of FARM GATE PRICES.
(b) Subsidy levels would be determined with reference to Normative Referral Price
(NRP) which will be determined on the economic principle of Long Range Marginal
Cost (LRMC). Difference between NRP and FARM GATE PRICES would be given as
subsidy to the industry.
(c) Feedstock Differential Cost Reimbursement (FDCR) for use of naphtha and fuel oil
be given for a transition period of 5 years only over and above the NRP which would
relate to gas based plants only.
18
Note: Figures for NRP and FDCR as on January, 98 have been indicated by the
Committee to be as follows:
Per ton
NRP Urea
(e) Ending the present practice of allocating stocks to the states and monitoring their
distribution under the Essential Commodities Act. However, additional freight and
inventory cost to be reimbursed in respect of fertilizers distributed in remote and
inaccessible places.
(g) Initiatives to set up Joint Ventures abroad near source of abundant availability of
feedstock be encouraged as a matter of policy in the coming years due to the gas
shortages in India and growing demand of fertilizers.
(h) Setting of a 'Fertilizer Policy Planning Board' to prepare policy options for the
Government in order to provide a long term perspective for the industry. The Department
of Fertilizers has initiated an intensive process of inter-Ministerial consultation and
dialogue with the industry for assessing the impact of the recommendations of this
Committee. The new fertilizer policy, which would seek to harmonies the interest of
food security with growth and efficiency up gradation in the industry, would be
formulated in light of this consultation exercise.
19
7. CHAMBAL FERTILISERS AND CHEMICALS LIMITED
7.1 Company Profile
Chambal Fertilisers and Chemicals Limited was promoted by Zuari Industries Ltd. in
1985. It is located at Gadepan, 35 kms. from Kota, on the Kota - Baran National
Highway No.76. Kota is the hub of industrial activity in the state of Rajasthan. Chambal
operates two hi-tech nitrogenous fertilizer plants and is the largest fertilizer complex in
private sector in India.The two mega fertilizer plants having a total re-assessed capacity
of 1.7292 million tons of urea per annum. Both Gadepan-I & Gadepan-II phases
represent a total investment of over Rs. 2,500 Crores. Gadepan-I was commissioned in
December 1993 and its commercial production commenced in January 1994. It is
designed to produce 1,350 MT of Ammonia by Haldor Topsoe, Denmark technology and
2,348 MT per day urea based on Snamprogetti, Italy process. Commercial production at
Gadepan-II started in October 1999. Its Ammonia plant is based on Kellog (USA)
technology and the Urea Plant is based on ACES process of TEC, Japan. The Ammonia
Plant is a single stream, having a design capacity of 1,350 MT ammonia per day, like
Gadepan-I. The Urea Plant is designed to have twin streams, each with the design
capacity of 1,175 tons of urea per day. Gadepan-I is based on natural gas as the feed
stock while the fuel demand is met by naphtha. Gadepan-II is designed both for naphtha
and natural gas as feed stock. Toyo Engineering India Ltd. has designed the Off-sites of
both for Gadepan-I & Gadepan-II.
20
7.2 Manufacturing
Chambal operates two hi-tech nitrogenous fertilizer plants and is the largest fertilizer
complex in private sector in India. The two mega fertilizer plants having a total re-
assessed capacity of 1.7292 million tons of urea per annum. Both Gadepan-I & Gadepan-
II phases represent a total investment of over Rs. 2,500 Crores. Gadepan-I was
commissioned in December 1993 and its commercial production commenced in January
1994.
21
7.2.1 Manufacturing Process
22
Manufacturing process for organic compound fertilizer
23
7.3 Operations and Supply Chain Management
Chambal Fertilisers and Chemicals Limited caters to the Northern and Western regions
of India and supplies urea to nine states. The company markets urea under the brand
name ‘Uttam Veer’. With ten regional offices, Chambal has a 1,000-strong dealer
network and 14,000 village level outlets to assist distribution. Besides urea, other agri-
inputs as other fertilisers, plant protection chemicals, seeds and bio-fertilisers are being
made available to the farmers under the ‘single window’ concept. These products are
being sourced from reputed suppliers and sold under the ‘Uttam’ umbrella
brand.Extensive promotion activities are undertaken to promote ‘Uttam Veer’ by our
dedicated team of field officers. Today, Chambal is India’s largest urea unit in the private
sector. The soil testing facilities at Sri Ganga Nagar and Agra use sophisticated testing
tools.
Chambal's website uttamkrishi.com, a website dedicated to the Indian farmer, has been
launched by Chambal. It is both area and crop specific and is an endeavour to help
improve farm productivity by providing online information on various agricultural
practices. It answers queries that a farmer may have and provides information on market
prices of farm produce as also the weather forecast. In order to assist the farmers access
it, the company has set up kiosks and has an arrangement with Agriculture Universities,
Agriculture Research Stations and Krishi Vigyan Kendras.
Growing rapidly with the best technology, proven systems and procedures, ‘Uttam Veer’
is positioned as a new age fertilizer for the new-age farmers. Chambal aims to be a
partner in providing India’s food security and the Zuari-Chambal vision is to be one of
the largest fertilizer combine in the world.
24
7.5 Awards
Name of Presentation
Year Achievement
Award Institute
1. 2006 Golden MWorls The Eco-
Peacock Eco Environment innovation
Innovation Forum award was
Award recieved for the
bio-fertiliser
Vriksha Mitra
that activates
the dormant
soil nutrients
and increases
resistance in
the plants
against drought
and disease.
2. 2005 Five Star M/s British Our Safety
Safety Safety Council, Management
U.K. System was
awarded with 3
star
rating(82.62%
points) in Five
star audit
conducted by
M/S British
Safety Council
,U.K. in Nov
2004
3. 2005 OHASA18001: M/s Det Norske Occupational
1999 Verits Health and
Safety
Management
System was
successfully
implements at
Gadepan site.
In recognition
of this,Gadepan
fertiliser
complex was
award "OHSAS-
18001:1999"
certification by
DNV
25
4. 2005 Greentech Greentech Gold Award
Environment Foundation
Excellence
Award
5. 2005 Global Amity Business For making
Corporate School, Noida indelible impact
Excellence on the Indian
economy
Award
6. 2005 Golden World Award in the
Peacock Environment category of
Environment Forum (WEF) Large Industry
(Fertilisers) for
Management its Environment
Award 2005 Management
Systems .
Environmental The best
The Fertilisers environmental
Protection
7. 2004 Association of protection in
Award in 2003- India ( FAI ) the nitrogenous
04 fertilisers group
Best Overall
performance of
Best Overall any operating
The Fertilisers
Performance fertiliser unit
8. 2003 Association of
Award in for Nitrogen
India ( FAI )
2002-03 (Ammonia)
Plant awarded
to Gadepan -II
Best Technical
Innovation
Best
[Improvement
Technical The Fertilisers
in Energy
9. 2003 Innovation Association of
Efficiency of
Award in India ( FAI )
High Pressure
2001-02
Boiler Feed
Water Pump]
The Institute of
Best Annual Chartered
Best Annual
Report Accountants of
10. 2002 Report/
(2000-01) India
Management
Award (Rajasthan
Chapter )
Western Freight
Golden Railway Payment
11. 2002 Customer (Divisional beyond Rs.50
2001-2002 Railway Crores in 2001-
Manager, Kota) 02
26
Environmenta
l Being
Management revalidated
Det Norske
System continuously
12. 2001 Veritas,
Certificate and
Netherlands
(ISO improvements
Cerification : being achieved.
ISO 14001)
For giving
recognition to
Shreshtha production
National
Pramanpatra performance in
13. 2000 Productivity
(Certificate of Fertiliser
Council, India
Excellence) Industry
(Nitrogenous)
category.
1st prize
1st Prize in among the
The Fertilisers
Production/T papers
14. 2000 Association of
echnical published
India
Discipline during Sep’ 98
– Aug’ 99
Prize for best District level
work in forest award for best
Department of
development work in forest
15. 1999 Forest, Kota
and forest development
Division.
safety 1998- and forest
99 safety.
Ist Position in
'Highest Tax Tax
the category of
16. 1998 Payer in Department,
Highest Tax
Rajasthan’ Rajasthan
Payers
27
REFERENCES
http://business.mapsofindia.com/national-fertilizers/
www.osti.gov/servlets/purl/764326-cYI5RI/webviewable
www.eetd.lbl.gov/EA/IES/iespubs/41846.pdf
www.osti.gov/energycitations/product.biblio.jsp?osti_id=5173008
www.fertilizer.org/ifa/publicat/PDF/2001_sydney_awashti.pd
www.fertilizer.org/ifa/publicat/PDF/1998_biblio_56.pdf
www.catalogs.indiamart.com/category/chemicals-fertilizers.html
BIBLIOGRAPHY
1. Annual Review (1997-98, 1998-99). The Fertiliser Association. of India, New Delhi.
2. Fertiliser Statistics, various issues, The Fertiliser Association of India, New Delhi.
3. Narayan, Pratap and Gupta, Uttam (1996). Paper presented at the Seminar on “Agricultural
4. Development Perspective for the Ninth Five Year Plan, Ahmedabad 13-16 June, 1996.
5. Paroda, R.S. (1999). The Hindu Survey of Indian Agriculture, New Delhi.
6. Annual Review (2003-04, 2004-05). The Fertiliser Association. of India, New Delhi.
7. Sunil Chopra and Peter Meindl. Supply Chain Management: Strategy, Planning, and
Operation. Pearson Education Asia, 2001.
8. David Simchi Levi, P. Kaminsky, and Edith Simchi Levi, Designing and Managing the
Supply Chain, Irwin-McGrawHill, 2000
9. W.J. Hopp and M.L. Spearman. Factory Physics: Foundations of Manufacturing
Management, Irwin-McGrawHill, 1996
10. N. Viswanadham . Analysis and Design of Manufacturing Enterprises, Kluwer, 2000
11. N. Viswanadham and Y. Narahari. Performance Modeling of Automated Manuafacturing
Systems, Prentice Hall, 1992
28
ANNEXURE
29
TABLES
30
31
32
33
34