NFL’s mission is to be a market leader in fertilizers and a significant player in all its other business, reputed for customer satisfaction, reasonable reward to shareholders, ethics, professionalism and concern for ecology & the community.
Background & Company Profile
NFL is a Schedule ‘A’ and Mini Ratna Company, which was incorporated on 23rd August, 1974 for setting up of two Nitrogenous fertilizer plants, based on gasification technology of Feed Stock / LSHS at Bathinda (Punjab) and Panipat (Haryana) having an installed capacity of 5.11 lakh tonnes of Urea each. The commercial production from these plants commenced w.e.f. 1.10.1979 & 1.9.1979 respectively. Consequent upon reorganization of FCI in April 1978, the Nangal unit (including Nangal expansion project) of FCI was transferred to NFL.
The Govt. of India, in 1984, entrusted the Company to execute the country’s first inland gas based fertilizer project of 7.26 lakh tonnes Urea capacity in District Guna of Madhya Pradesh and commercial production started from 01-07-1988. Expansion of Vijaipur Plant was taken up in the year 1993 for doubling its annual production capacity. The commercial production from Vijaipur Expansion Plant commenced with effect from 31.3.97. The Department of Fertilizer subsequently re-assessed the annual installed capacity of Vijaipur Plants from 7.26 lakh tonnes of Urea to 8.64 lakh tonnes (each) with effect from 1st April 2000.
Revamp of Urea plant at Nangal for increasing the production from 3.30 lakh tonnes to 4.78 lakh tonnes per annum was under taken and commercial production commenced from 1st February 2001 raising the total present annual installed production capacity of Urea at NFL to 32.31 lakh tonnes (i.e. 14.86 lakh tonnes in terms of Nitrogen Fertilizer).
The Company also produces various Industrial Products, like Nitric Acid, Ammonium Nitrate, Sodium Nitrite, Sodium Nitrate, Sulphur, Methanol, Argon Gas, Liquid Nitrogen, Liquid Oxygen etc besides Bio-fertilizers. Bio-Fertilizers plant at Vijaipur produces three strains of Bio-Fertilizer (Solid & Liquid) namely PSB, Rhizobium &Azotobacter. Company has also started marketing of special fungus based bio-fertilizer “Mycorrhiza” under the brand name of ‘Kisan Mycorrhiza’.
The value-added Neem Coated Urea developed by NFL & widely recognized for its effectiveness is being produced at its three units at Panipat, Bathinda & Vijaipur. NFL is the first company in India to be permitted by the Government of India to produce and market Neem Coated Urea.
In order to make different agro products available to the Farmers under single window concept, Company is presently undertaking trading of various agro-inputs like quality seeds, Compost Khad, insecticides & Herbicides, imported MoP (Murate of Potash) etc. Company has also taken initiative to add some more products through trading such as Micro Nutrients (Zinc Sulphate), SSP (Single Super Phosphate), Bentonite Sulphur, imported DAP and Complex Fertilizers. Company is also selling BSNL products to the Farmers through its existing dealer’s network.The Company’s Marketing Network comprises of Central Marketing Office at NOIDA, three Zonal Offices at Bhopal, Lucknow & Chandigarh, 13 State Offices and about 39 Area Offices spread across the country.
The authorized capital of the company as on 31-03-2012 stood at 1000 crore and the paid up capital at 490.58 crore, comprising Govt. of India share of 479 crore (97.64%) and remaining 11.58 crore (2.36%) held by financial institutions and others.
Modernization and Expansion Projects:
With a view to consolidate its position as a market leader in Urea, projects of about 4700 crore are at various stages of implementation in Company’s various plants. The major ongoing schemes are:-
Revamp of fuel-oil based plants at Panipat, Bathinda & Nangal:
The Company has undertaken revamp of fuel-oil based plants at Panipat, Bathinda & Nangal for changeover of feedstock from Fuel-oil to Natural Gas. These projects involve a total investment of 4066 Crore and a completion period of 36 months from the zero date i.e. 29th January 2010. These projects are being implemented on Lump Sum Turnkey (LSTK) basis. Panipat & Bathinda projects are being implemented by M/s Larsen & Toubro (L&T) with process license from Halder Topsoe. Nangal project is being implemented by Consortium of M/s Tecnimont SPA Italy & M/s Tecnimont ICB Mumbai with process license from KBR. M/s Project & Development India Limited (PDIL) has been engaged as Project Management Consultant for all these three projects. The scheduled commissioning of the projects at Panipat & Bathinda is by January 2013 and at Nangal by December 2012.
Revamp of Vijaipur plants for Energy Saving & Capacity Enhancement & Carbon Dioxide Recovery (CDR) project for Vijaipur:
The Company has undertaken Capacity augmentation of Ammonia & Urea plants at Vijaipur-I & II units including installation of Carbon Dioxide Recovery (CDR) plant at an investment of around 650 crore. The total urea capacity of Vijaipur units after commissioning of the project shall be 20.66 lakh tonnes per annum against 17.29 lakh tonnes per annum at present. Projects are scheduled to be commissioned during April / June 2012. CDR project is expected to beCommissioned in June 2012.
NFL in collaboration with M/s KRIBHCO & RCF has a joint venture company (JVC) named as "UravarakVidesh Limited" to explore investment opportunities abroad and within country in Nitrogenous, Phosphatic&Potassic sectors and to render consultancy services for setting up Projects in India & Abroad.
Company has also been awarded on nomination basis the revival of HFC’s Ramagundam and FCI’s Sindri Units in joint venture with M/s EIL & M/s SAIL respectively by GOI.
The Company, during 2011-12, produced 34.01 lakh tonnes of Urea (105.3% of installed capacity) as compared to 33.80 LMT in previous year. The company registered ever best production of 639568 tonnes of Neem Coated Urea during 2011-12 against 120067 tonnes during 2010-11.
Sales & Marketing
The company, during 2011-12, sold 33.90 lakh tonnes of Urea against 33.59 LMT in last year. The company, during the year, achieved ever best sale of Industrial products worth 174 crore (Provisional) against 120 crore during 2010-11.During the year, the company sold 23124 MT of Ammonium Nitrate (Melt) worth 3762.05 lacs, a new product marketed this year, 49853 MT of Nitric Acid (equated 100% concentration level), 23124 MT of Ammonium Nitrate (Melt), 3395 MT of Sodium Nitrate, 1410 MT of Sodium Nitrite, 695352 NM3 of Argon, 10699 MT of Sulphur, 877817 NM3 of Liquid Oxygen etc.
During 2011-12, the Company registered a turnover of 7286 crore (provisional) against 5791 crore during 2010-11.The turnover is higher due to higher sales volume & increase in subsidy due to increased prices of petroleum products & Natural Gas and accountal of sales above cut-off quantity at Vijaipur-II on Import Parity Price of Urea.
Awards & Accolades
Company excelled in performance in various areas, which got recognition from various quarters during the year. The company has received “Excellent” rating for the MoU 2010-11 which is 11thexcellent rating in a row. Company has won the following prestigious awards during 2011-12:
a) Two state level Safety Awards viz. ‘WINNER’ for the year 2009 & ‘RUNNERUP’ for the year 2008 from Government of Haryana for “Lowest Frequency rate” for Panipat Unit.
b) First Award for excellence in ‘Cost Management’ in the category of Large Public sector Undertakings for 2010 from the Institute of Cost and Works Accountants of India (ICWAI), New Delhi.
c) “Business Achiever” Award in woman category by the Institute of Chartered Accountants of India to Director (Finance), Ms Neeru Abrol. The evaluation of the award was done by a Jury panel of eminent persons with Mr. N.R. Narayana Murthy, chief mentor, Infosys as chairman.
d) Scope Excellence Award 2009-10 to Director (Finance), Ms Neeru Abrol for “Outstanding Woman Manager” among all the CPSEs from Hon’ble Prime Minister of India at Vigyan Bhawan, New Delhi.
Corporate Social Responsibility and Agriculture Extension Activities:
During the year 2010-11 & 2011-12, company earmarked 3.0 crores & 3.25 crores respectively on CSR, against which a total expenditure of 1.90 crores has been incurred till 31-3-2012 (estimated) and 4.35 crores is being carried over to the year 2012-13 as per DPE guidelines. The details of the work carried out under CSR by Units and Marketing division in various districts viz. Guna, Hoshangabad & Indore in M.P., Jalgoan in Maharashtra, Solan in H.P., Nangal & Bathinda in Punjab, Panipat in Haryana, Jhansi and Badayun in U.P. and Mayurganj&Balsore in Odisha are as under:
a) Basic Amenities: Drinking water facility, Approach roads, Toilets, Water tank, Tube wells, Overhead tanks, Anganwadies, Compost structures like NADEP / Vermi Pits, training on low cost agriculture practices to the Farmers etc.
b) Children education: Provided Kitchen shed, Boundary wall, Sports infrastructure, Force lift pump, furniture, computers, ceiling Fans to the primary and middle schools in various villages situated in States of U.P, M.P, H.P & Haryana. 2245 beneficiaries were benefitted.
c) Women Empowerment: Provided Multipurpose Women empowerment centers, stitching & sewing machines, Floor and Masala Grinding Mill and training programs on stitching/Embroidery/Food processing/Beautician/Sanitary pad making/Soft toys making etc. under women empowerment initiative in the States of U.P, M.P & H.P. 312 beneficiaries were benefitted.
d) Afforestation: Around 73000 saplings planted.
e) Installation of Solar Lights: 45 Solar Lights were installed at 8 adopted villages in the States of U.P, M.P, H.P, Punjab& Haryana.
f) Children & Women Health Camps: 20 Children and Women Health camps were organized at various villages in the states U.P, M.P, Himachal Pradesh, Haryana and Maharashtra. 5546 beneficiaries were benefited by these camps.
g) Animal Health Camps: 20 Health camps were organized in various villages of States U.P, M.P, Himachal Pradesh, Haryana, Rajasthan and Maharashtra. 7270 no. of beneficiaries were benefited by these camps.
h) Water Harvesting / Ground water recharging: 7 Water harvesting structures were constructed (4 stop dams in Bhopal zone, renovation of 2 ponds and construction of a water harvesting tank in Chandigarh zone)..
The company accords highest priority to industrial safety, Ecology & pollution control and has adopted 3R’s approach i.e reduce, reuse, recycle in an effort to have zero effulent discharge plants. Company has adopted an extensive Afforestation program. All the statutory standards are met by respective units.Silo system for collecting fly ash from ESP Hoppers using dense phase pneumatic conveying system has been installed at Panipat, Bathinda and Nangal Units for excavation of cash from the plants. This has helped to contain the ecological concerns in fly ash disposal.
All the Units are ISO 9001-2000 certified for Quality Management System, ISO- 14001 certified for Environment Management System and have received OHSAS- 18001 certification for occupational health and safety management system.Company is putting up a Carbon Dioxide Recovery plant of 450 MTPD capacity for recovery of CO2 from Flue gases of Primary Reformer at Vijaipur. This will help in reduction of discharge of greenhouse gases.
Human Resource Management:
The company has always believed that human resource is its most important asset and continues to work for its development and realization of its potential. To achieve growth and to foster motivational climate, several initiatives were taken up during the year. Modified Performance Related Pay Scheme for Executives and Non- Executives has been implemented and Group Productivity Allowance Scheme has also been introduced. The company has introduced Employees Economic & Social Rehabilitation Scheme, which protects the welfare of the family in case of demise/permanent disablement of employee during service. A new pension scheme for the benefit of employees is in the process of implementation.
During the year, to inculcate leadership qualities with high values, moral and ethics in all supervisory staff and managerial cadre. Manpower strength of the company as on 31.03.2012 was 4515 comprising of 1942 Executives and 2573 Non-Executives.
The Employer-Employee relationship continued to be harmonious during the year. There was no loss of production due to any adverse IR situation. The schemes for employees participation in Management continue to function succeefully. There were continuous interactions between the Management and employees representatives on various issues keeping in view the best interest of employees and the company.
The company continues to make efforts for improving employees health, well being and welfare and has taken steps for providing recreation, education and general welfare of employees.
NFL not only strives hard to achieve business objectives but is equally sensitive to social responsibility for the impact of its activities on customers, employees, shareholders, neighboring communities and the environment in all aspects of its operations.
The company under CSR initiatives has adopted 9 villages for integrated development in the vicinity of Manufacturing Units and Marketing operations. The company provided various infrastructures in the villages such as, pipelines for distribution of water, Concrete approach roads, Kitchen Sheds, Toilets, Overhead Water Tanks, Volley Ball Play Ground, Submersible Tube Well etc. Company has also made available furniture, Books, Bags and Potable water to the schools.
As an initiative towards women empowerment, various training programs on stitching, food processing, Self employment etc. were conducted by the company.
The company organized various health camps in the villages and created awareness on health related issues like hygiene, sanitation, safe drinking water and communicable diseases.
Health & Hygiene
Health Camps have been organized in adopted villages
Spreading awareness through Village Health Workers and Guest Doctors on health related issues like hygiene, sanitation, safe drinking water, communicable diseases, diarrhea, STDs / AIDS, immunization, family planning etc.
Training programs on stitching, food processing, mushroom cultivation, Vermi composting.
Programs to give training on Self-employment. It aims at making women financially self-reliant
Renovation and maintenance of school buildings. It will improve the safety & security of students.
Provision of essentials for students such as bags, books, furniture and clean drinking water in schools.
Construction of toilets to improve sanitation facilities in schools.
Providing IT infrastructure and books for library.
The company has undertaken various environment development programs such as water conservation through rainwater harvesting, stop dams, sedimentation tanks and also planted thousands of trees in adopted villages. Company is also promoting non-conventional energy sources to reduce the carbon foot prints and installed solar lights in the villages
Construction of sedimentation tanks.
Rejuvenation and improvement of existing water bodies.
Increasing height of best bear of irrigation ponds.
Facilities for roof top rainwater harvesting
Construction of Stop Dams
It has improved water availability around the year for farmers as well as for animals.
Crop production has increased which has resulted in greater returns to farmers. In long run it will help in curbing migration from villages
Double cropping and vegetable production has started
Thousands of trees are being planted through special campaigns in adopted villages and in and around Company's plants.
Afforestation helps in maintaining the ecological balance of our planet.
Promoting Non-Conventional Energy Sources
Installation of solar lights in villages
Maintenance and monitoring done through participation of village community We are committed towards making a difference in the world we live in. Our efforts are to contribute for sustainable development. The Company endeavors to bring about positive impact through its activities for the overall development of the society.