Agri Business

FACT to enter eastern markets

V Sajeev Kumar Kochi | Updated on August 05, 2019 Published on August 05, 2019

Kishor Rungta, Chairman and Managing Director, FACT

Looking beyond the South, fertiliser major FACT will soon enter the eastern markets as part of plans to build up a pan-India presence.

The public sector company is gearing to market ammonium sulphate in West Bengal, for which it has signed an MoU with Hindustan Insecticides Ltd.

Looking East

Initially, 5,000 tonnes will be despatched a month by rail and the quantity will gradually be increased, depending on the demand in that State. The new initiative is estimated to fetch an additional revenue of ₹8 crore a month, said Kishor Rungta, Chairman and Managing Director, FACT.

There are also plans to sell its flagship products such as ammonium sulphate and Factamfos in Maharashtra through Rashtriya Chemicals & Fertilisers Ltd. Negotiations are on and the sales are expected to commence shortly. FACT has so far been confining itself to the southern States and the new initiatives are part of looking at additional avenues to expand its footprint across India rather than immediate revenue gains, Rungta told BusinessLine.

The company is also going in for imports and the first consignment of 27,000 tonnes of complex fertilizers from Russia has reached the Tuticorin Port. The total consignment of complex fertilizer NPK 16:16:16 for the whole year was five lakh tonnes which would be handled through the major ports of Paradip and Vizag. The current import price of complex fertilizer is $285 per tonne.

“We were not into fertilizer imports for a long time. Since we are expanding our horizons, such shipments are imperative in meeting the country’s fertilizer demand as well as targeting a business turnover of ₹3,000 crore,” Rungta said.

Monsoon delay

According to him, the delayed monsoon in the southern States had an impact on sales in June, forcing the fertilizer firm to produce only 70,000 tonnes against the monthly target of 1 lakh tonnes. However, the progress in rains helped achieve the target in July. The availability of LNG as feed stock at a very competitive price less than the pool price of $12 mmBtu will increase productivity and enable it to surpass the production target by at least 25 per cent, he added.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on August 05, 2019
This article is closed for comments.
Please Email the Editor