Dear Shareholders,
It gives me immense pleasure to share with you the overall performance of your company
during the year 2022-23.
The year 2022-23 had been a challenging year for the Indian fertilizer Industry due to
the geopolitical conflict i.e. the conflict between Russia and Ukraine which posed serious
challenges to supply of adequate quanfity of fertilizers to the farmers. Since India
remains heavily dependent on import of fertilizers and fertilizer raw materials, there was
an abnormal spurt in prices of these commodifies. Very high energy prices also increased
cost of production of indigenous fertilizers. The central government acted very
proacfively to facilitate both production and import of fertilizers. Government
facilitated various agreements with foreign companies to supply of raw materials and
fertilizers both for phosphatic and potassic fertilizers. But more importantly, allocation
for fertilizers subsidy was increased to insulate the farmers from high prices. A he y
increase in fertilizer subsidy and hence practically no increase in farmers prices,
ensured that fertilizer consumption and hence agriculture production were not affected in
spite of all round negafive impact on other sectors of the economy.
Despite these challenges, your company continued
its journey on the growth trajectory and has excelled in production & sales through
consistent and energy efficient operations of the plants with support of Non-Urea business
leading to record breaking topline and bo om-line results of the company.
I am pleased to share with all of you that your company has registered its best-ever
results in the financial year 2022-23. Surpassing all previous records, the company
recorded highest ever Production, Sales, Pro ts and Turnover. A record turnover of Rs.
29,616.52 crore was registered by your company in the financial year 2022-23 with an
increase of 87% over turnover of Rs. 15,857.09 crore of previous year. The company has
also recorded a threefold increase in the profit a er tax (PAT)of Rs. 456.10 crore during
2022-23 which was 108.20 crore in the previous year.
Your company has achieved the best ever results despite many challenges and constraints
in the global fertilizer industry. Despite unviable urea operations at Vijaipur-I due to
deletion of minimum fixed cost provisions of MNPS-III resulting in under recoveries of
fixed cost, increasing trend in the price of spot RLNG, volafile prices of Fertilizers in
international market remained the main challenges for the company during the year.
The cumulafive Urea production achieved by your company in the year is 39.35 LMT with
the capacity u?lization of 121.81%, which is highest ever recorded production. The energy
consumption by our plants will hold the key to our pro tability in the future. I am happy
to share that Company's Nangal, Panipat, Bathinda and Vijaipur-I plants have registered
lowest-ever energy consumption in the financial year 2022-23.
Your company produced 22302 MT of Bentonite Sulphur in the year registering an increase
of 30.60% over the production of 17076 MT in FY 2021-22. With the augmentation of
production capacity of Industrial Products at Nangal, the Company produced 103102 MT of
Nitric Acid in the year with the increase of 23.70% over the production of 83358 MT in
previous year. The production of Ammonium Nitrate is also increasing year by year. Total
26045 MT of Ammonium Nitrate was produced during 2022-23 against the 24020 MT of previous
year.
I am happy to share that your company has set a new record of total fertilizer sale in
the year 2022-23. The company has achieved total fertilizer sale of 66.72 LMT with a
growth of12% compared to the previous best of 59.37 Lakh MT. This also includes the
highest-ever urea sales of 53.71 LMT. For the first time, your company has crossed 10 Lakh
MT mark in terms of sale of P&K fertilizers leading to record breaking top line and bo
om-lineresults of the company.
The Company has registered sale of Nitric Acid of 81,108 MT during 2022-23 as compared
to previous sale of 64,008 MT during 2021-22. The Company also recorded sale of Ammonium
Nitrate to the tune of 26039 MT during 2022-23 as compared to sale of 24029 MT achieved
during 2021-22. In terms of revenue generation from production and sale of Industrial
products, the Company achieved sale of Industrial-Products (IP) comprising of Nitric Acid,
Sodium Nitrate/ Nitrite, Ammonium Nitrate, Ammonia to the tune of 748.71 crore during
2022-23 against CPLY of 569.15 crore.
The sale in agrochemicals segment in the year 2022-23 also registered an almost three
fold increase at 2481.10 KL/MT compared to 848.26 KL/MT of 2021-22. This is the
highest-ever sales of agrochemicals for the company. In order to strengthen Agro Chemicals
business, your company is seng up manufacturing facili]es of Agro-chemicals at its
Bathinda unit with the total CAPEX of approx. Rs 13 crore.
Your company is continuously enriching its product line. New addition in the product
basket, Potash derived from Molasses (PDM) has been well received by the farmers in the
market as a sale of 19,833 MT of PDM has been registered in 2022-23.
To give further impetus to Seed Business, 3rd Seed Processing Unit (SPU) of the company
has been made operational at Indore. This Plant has a capacity to process 2 Ton seeds per
hour and a storage capacity of 12,000 Quintals. Company's SPUs at Bathinda & Panipat
are already operational. With the addition of this SPU, NFL, now, has a total seed
processing capacity of 6 ton seeds per hour and an overall storage capacity to store
92,000 quintal seeds. This strong infrastructure in seed segment is certainly going to
strengthen NFL's position in the market.
In order to promote the use of Nano Urea in the country, your company had signed MoU
with IFFCO for providing technical information for seng up Nano Urea plant. The proposed
Nano Urea (Liquid) production plant shall have a Capacity of plant shall be 4,95,00,000
boles of Nano Urea of 500 ml per year. The plant is being set up at the existing premises
of NFL Nangal plant. The One bole of 500 ml of Nano Urea is equivalent to one 45 kg Urea
bag. TEFR for the Nano Urea plant has been nalized and EPMC consultants are being lined
up.
In order to integrate and to bring transparency in various business processes, your
company is in the advance stages of implementing ERP based integrated So ware solution.
With the implementation, it will help in faster decision making and bring more
transparency.
Your Company has always laid emphasis on uplimen t of farming community by educating
them on various aspects of crop production, animal husbandry and other allied agriculture
sectors. Through these educational programmes, farmers were sensivzed to issues related
with soil fertility status including de ciency of various nutrients, their remedy to
increase fertilizer use efficiency and maximize yields.
Your Company is playing a vital role in supporting farmers by undertaking soil analysis
for macro and micro nutrients through its 6 Staffc and 5 Mobile Soil Testing Labs (MSTLs)
in various States. Based on the analysis, farmers are advised on soil fertility management
through rational use of manure, fertilizers and other inputs to make agriculture more
producfive and sustainable. During the year, around 30000 soil samples were collected
& analysed for macro and micro nutrients and recommendations were given to the
farmers.
Total 8719 fertilizer shops have been converted into PMKSKs by your company with the
objecfive to providing all the agricultural inputs and services to the farmers under one
roof along with soil testing and advisory services.
Your company is organizing programs on regular basis in its Marketing territory to
popularize the use of Agricultural Drone among the farmers and generate the awareness.
Your company has procured ve Nos. of agricultural Drones with this objecive.
Your company is constantly working towards inclusive growth in society and is
implementing various developmental activi es under its Corporate Social Responsibility
(CSR). The company allocated a CSR budget of Rs.140.00 Lakh for the FY 2022-23 and
implemented various CSR projects in the areas of Healthcare, Skill Development Training,
Sanitation, Environment, Education etc. for the socio economic development of communities
around its plants and marketing territories.
In the year 2022-23, the focus of CSR activi es of the Company was on the theme given
by Department of Public Enterprises (DPE) i.e. Health & Nutri on.
The performance of your company on various fronts has been well nofficed and
appreciated by various organisations. The testimony is the number of awards won by your
company during the year on fronts like Safety, Environment, Productivity, Swachhata,
Rajbhasha and overall performance. Your company has received many awards from prestigious
organisations, State and National Councils for its performance in these specific areas.
The philosophy of your Company on Corporate
Governance is to ensure transparency, disclosures and reporting that conforms fully
with the laws and regulations of the country in order to promote ethical conduct &
practices throughout the organization for enhancing stakeholder's value. Your Company is
commi ed to comply with the provisions of SEBI (Listing Obligations & Disclosures
Requirements) Regulations, 2015 relating to Corporate Governance and the guidelines on
Corporate Governance for Central Public Sector Enterprises issued by Department of Public
Enterprises, Government of India.
As we continue our fulfilling journey, I express my grafitude for your continued
support and faith in our endeavours. I also take this opportunity to sincerely thank and
appreciate my colleagues on the Board of Directors for their valuable guidance and support
in running the a airs of the Company. I also wish to express my thanks to the Department
of Fertilizers, Fertilizer Industry Coordination Commi ee (FICC), Department of Public
Enterprises (DPE), Railways, other Ministries and Departments of the Government of India
and the various State Governments for their valuable guidance and look forward to their
continued support.
I would like to thank Statutory, Secretarial, Cost and Government Auditors, Banks,
Regulatory AuthoriZes for their guidance and support. I sincerely thank all our customers
and business associates for their continued support. I would also like to thank all my
colleagues in the company for their un inching dedication, commitment and contribu]on to
take NFL forward. The team strived firelessly to deliver the best-ever results.
With the con dence reposed by all of you, we are looking forward to continue on our
vision in a manner that develops trust and enhances the long term value for all
stakeholders.
With best regards,
Yours sincerely,
(U. Saravanan)
Chairman & Managing Director
DIN: 07274628