Transcript Slide 1

GUJARAT STATE FERTILISERS & CHEMICALS
LIMITED
Welcomes you to
Analysts Meet
16th December, 2011
CONTENTS
An Overview
Growth Trajectory
Product Profile
GSFC – Market Presence
Financial Performance
GSFC – Shareholders’ Profile
GSFC v/s Peer Group
SWOT Analysis
CSR – Touching Human Lives
Achievements
Way Forward
AN OVERVIEW
AN OVERVIEW

GSFC is India’s premier fertiliser & chemical manufacturing
company incorporated on February 15, 1962.
 First to manufacture DAP (complex fertilizer) in India.
 First to establish Melamine Plant in the Country.
 First to set up Caprolactam Plant in India.
HISTORY OF BUILT UP OF
EQUITY SHARE CAPITAL
Initial
Public
Offer
1966-67
Bonus Issue
Rights Issue
Year
Ratio
Year
Ratio
1975
1:3
1989
8:13
1980
1:3
1993
1:10
1984
1:4
1996
1:5
1987
3:10
1991
3:10
GSFC – MANUFACTURING LOCATIONS
India Reach
Corporate Office
GUJARAT STATE FERTILISER & CHEMICALS LIMITED
P.O. FERTILISERNAGAR
DISTRICT VADODARA
GUJARAT (INDIA)
Farm Information Centres cum Depots
COMPANIES PROMOTED BY GSFC
 GUJARAT NARMADA VALLEY FERTILIZERS COMPANY LIMITED (GNFC)
A Fertilizer & Chemical Company
 GUJARAT INDUSTRIAL POWER COMPANY LIMITED (GIPCL)
A Joint Power Plant
 GUJARAT GREEN REVOLUTION COMPANY LIMITED (GGRC)
Revolution in agriculture through Micro Irrigation
 TUNISIAN INDIAN FERTILIZERS (TIFERT)
A Joint Venture in Tunisia to ensure P.A. supply
 GUJARAT CHEMICAL PORT TERMINAL COMPANY LIMITED (GCPTCL)
A step to improve port based infrastructure
 EFFLUENT CHANNEL PROJECTS LIMITED (ECPL)
Ensuring Cleaner Environment
 BHAVNAGAR ENERGY COMPANY LIMITED (BECL)
Lignite Based 500 MW power project
GROWTH
TRAJECTORY
THE GROWTH TRAJECTORY SINCE 1967
PHASE I
1967
PHASE II
1969
Inception
Expansion
as a Fertilizer
in
Company
Fertilizers
at Baroda
at Baroda
Ammonia I
Ammonia
II
Urea-I
PHASE III
1974-1982
PHASE IV
1983-88
PHASE V
1989-2000
PHASE VI
2002-2011
Diversification in
Petro-Chemicals
at Baroda
Acquisition &
Expansion at
other
Locations
Further
Expansion in
Petrochemicals
and Acquisition
Expansion in
Petrochemicals,
Fertilizers and
Green Power
Co-Generation of
Steam &
Power Project –I
Sikka –
DAP C Train
Kosamba - Fibre
Unit Acquisition
MEK-Oxime
Co-Generation of
Steam &
Power Project – II
Methanol
Caprolactam II
Ammonia-III
Revival
Caprolactam-I
Oleum(SO2)
Ammonium
Sulphate
Purge Gas
Recovery Plant
(Methane)
Diammonium
Phosphate
Nylon-6
Sulphuric
Acid-I
Phosphoric
Acid
Utilities
Urea
II
Oxo-Syn
Gas
MEK
Oxime
Sulphuric
Acid III
Melamine I
Nandesari Polymer
Unit
Acquisition
Sikka –
New DAP
Plant - A&B
Trains
Sulphuric Acid-IV
Combined Cycle
Co-Generation
Project-III
Melamine II
Ammonia-IV
Wind Power
Projects –
Phase I to V –
124 MW
PRODUCT
PROFILE
INDUSTRIAL PRODUCTS (installed capacity)

CAPROLACTAM
-
70000 MTPA

NYLON-6 (GUJLON)
-
7000 MTPA

MELAMINE (GUJLAMINE)
-
15000 MTPA

MEK OXIME (GUJOXIME)
-
4450 MTPA

WEAK NITRIC ACID
-
8000 MTPA

ARGON GAS
-

NY FILAMENT YARN (GUJNYL)
-
6000 MTPA

NYLON -6 CHIPS
-
8000 MTPA

MMA (GUJMER)
-
5000 MTPA

PMMA (S)
-
2000 MTPA

PMMA (P)
-
2000 MTPA

MAA (GUJMET)
-
500 MTPA

ACH (GUJACH)
-
5150 MTPA
2960000 NM3
INTERMEDIATES
 CYCLOHEXANONE
 ANONE-ANOL MIXTURE
 CYCLOHEXANE
 ANHYDROUS AMMONIA
 SULPHURIC ACID
 OLEUM
FERTILIZER PRODUCTS (installed capacity)
Fertilizers under the brand name “Sardar”
 UREA
- 364000 MTPA
 AMMONIUM
SULPHATE (AS)
- 196000 MTPA
 AMMONIUM PHOSPHATE
SULPHATE (APS)
- 256000 MTPA
 DI-AMMONIUM
PHOSPHATE (DAP)
NPK 12-32-16
NPK 10-26-26
- 984000 MTPA
AGRO PRODUCTS
 BIOFERTILIZERS
 TISSUE CULTURE -BANANA PLANTS
 SEEDS
 MICRO MIX (MICRONUTRIENTS)
 NUTRISOL (LIQUID FERTILIZERS)
 ORGANIC NUTRIENTS (PROTEIN HYDROLYSATE)
 PHOSPHO GYPSUM
 ZINC SULPHATE
AGRO EXTENSION ACTIVITY

Krishijivan–Agricultural magazine for farming community
More than 65,000 subscribers in Gujarati edition (monthly)
More than 8,000 subscribers in Hindi edition (quarterly)

Farm Youth Training Programs organized regularly.

Soil and Water testing facilities through well-equipped
laboratory besides Mobile Van Lab.

Field Demonstrations, Night Meetings, Seminars, Exhibitions.

Promoting Micro Irrigation Systems.
MARKET PRESENCE
MARKET SHARE – FERTILIZER
NAME OF FERTILIZER
INDIAN DEMAND
(Million Tons per Annum)
GSFC SHARE
DAP
11.1
8%
APS
3.5
3%
AS
0.5
70%
UREA
28.2
1%
FERTILIZER PRODUCTION – (in MT)
20
1812570
1778070
In Lac Tonnes
1594703
1556172
1469470
15
10
5
0
2006-07
2007-08
2008-09
2009-10
2010-11
MARKET SHARE – INDUSTRIAL PRODUCTS
Major End Use
Indian
Demand
MTPA
GSFC
Share
Caprolactam
Tyre Cord and
Nylon Yarn
122500
60%
Melamine
Laminates &
Plywood
40000
40%
MEK Oxime
Anti Skinning
Agent for paints,
varnish
550
90%
Nylon – 6
Chips
Extrusion for
Monofilaments,
Packaging,
Moulding for
Automobiles
40000
40%
Name of
Product
GSFC
Strength
Market
Leader
Well Spread
Market Network
CAPROLACTAM PRODUCTION – (in MT)
100
90
79,500
80,000
81,000
79,600
2009-10
2010-11
71,000
80
70
60
50
40
30
20
10
2006-07
2007-08
2008-09
FINANCIAL
PERFORMANCE
SALES PERFORMANCE – (in MTs)
YEAR
CAPROLACTAM NYLON – 6
MELAMINE
AMMONIA
2006-07
63,400
13900
15,600
36,100
2007-08
59,700
14900
14,800
21,200
2008-09
53,900
14000
14,100
27,100
2009-10
62,700
13800
13,700
45,500
2010-11
61,800
14,900
13,300
76,200
NET SALES – (Rs. in Crores)
7000
5881
6000
4755
5000
4000
4019
3319
3569
3000
2000
1000
0
2006-07
2007-08
2008-09
2009-10
2010-11
SEGMENT WISE TURNOVER
2009-10
2010-11
(Rs. 4019 Crores)
(Rs. 4755 Crores)
Fertilizer
Industrial Products
Rs.
1149
Crores
28.60%
Rs.
2870
Crores
71.40%
Fertilizer
Industrial Products
Rs. 1462
Crores
30.79 %
Rs. 3293
Crores
69.21%
PROFIT PERFORMANCE
EARNING PER SHARE (Rs.)
94
100
90
80
63
70
60
50
37
33
30
05-06
06-07
07-08
40
32
30
20
10
0
08-09
09-10
10-11
* EPS for the H1 2011-12 is 44
CURRENT FISCAL – Till September 2011
Rs. In Crores
Sept'10
3000
2000
1000
0
2367
Sept'11
2472
560
Net Sales
642
EBIDTA
481 521
PBT
SEGMENT WISE TURNOVER
H1(F.Y. 11-12)
Fertilisers
Industrial Products
Rs. 814
Crores
32.90%
Rs. 1658
Crores
67.10%
DIVIDEND TRACK RECORD
80%
70%
70%
60%
50%
45%
45%
45%
45%
2006-07
2007-08
2008-09
2009-10
40%
30%
20%
10%
0%
2010-11
BOOK VALUE PER SHARE
In Rs.
400
355
350
300
269
242
250
200
171
185
150
100
50
0
2006-07
2007-08
2008-09
2009-10
2010-11
SHAREHOLDERS’ PROFILE
MAJOR HOLDERS
Holding more than 1% Shares
SHARES
%
GUJARAT STATE INVESTMENTS LTD. (investment arm of GOG)
30159981
37.84
LIFE INSURANCE CORPORATION OF INDIA
4794692
6.02
RELIANCE CAPITAL TRUSTEE COMPANY LIMITED A/C RELIANCE
GROWTH FUND
4618140
5.79
FIDELITY PURITAN TRUST-FIDELITY LOW-PRICED STOCK FUND
2450000
3.07
SBI MUTUAL FUND - MAGNUM TAX GAIN 1993
2298529
2.88
RELIANCE CAPITAL TRUSTEE CO LTD-RELIANCE NATURAL
RESOURCES FUND
2555236
3.21
GUJARAT ALKALIES AND CHEMICALS LIMITED
1500000
1.88
GUJARAT NARMADA VALLEY FERTILIZERS COMPANY LIMITED
1500000
1.88
GUJARAT MINERAL DEVELOPMENT CORPORATION LTD
1000000
1.25
50876578
63.84
TOTAL
SHARE HOLDING PATTERN (as on 30-11-2011)
Total paid up equity share capital Rs. 79,69,55,060.00
Promoter
14.40%
37.84%
21.51%
18.16%
PFIs, Banks &
Insurance
Companies
Mutual Funds
8.09%
Non Financial
Companies
Individuals & Cooperative
Societies etc
GSFC
v/s
PEER GROUP
PEER GROUP COMPARISON FY 10-11
Particulars
GSFC
TCL
RCF
CFL
ZUARI
FACT
Net Sales
Rs
Bn
47.6
62.3
55.1
75.3
55.3
13.0
EBIDTA
Rs
Bn
12.7
10.0
4.8
11.4
3.0
-0.5
EBIDTA /
Net Sales
%
27%
16%
9%
15%
5%
NA
PBT
Rs
Bn
11.1
5.6
3.6
9.9
2.4
-0.5
PBT /
Net Sales
%
23%
9%
6%
13%
4%
NA
PAT
Rs
Bn
7.5
4.1
2.5
6.9
1.7
-0.5
PAT /
Net Sales
%
16%
7%
4%
9%
3%
-4%
EPS
Rs.
94
16
4
25
57
-1
Data Source : CMIE
ANALYSIS OF FINANCIALS
NAME OF
COMPANY
RONW
ROCE
CURRENT RATIO
DEBT TO EQUITY RATIO
08-09
09-10
10-11
08-09
09-10
10-11
08-09
09-10
10-11
08-09
09-10
10-11
CHAMBAL
18.1
18.1
19.5
7.3
7.1
8.1
1.0
1.2
2.5
2.0
1.9
1.5
CFL
51.2
34.7
36.8
26.2
20.7
25.7
1.2
1.2
1.5
1.4
1.3
0.7
GNFC
10.8
3.8
7.1
10.3
3.5
5.9
1.2
0.9
1.0
0.2
0.3
0.5
GSFC
25.4
12.4
29.0
24.9
12.3
27.8
1.2
1.0
2.1
0.2
0.3
0.1
IFFCO
8.4
11.0
17.2
5.3
7.7
13.4
0.5
0.5
0.7
3.2
2.7
2.3
NAGARJUNA
1.8
4.1
7.5
1.5
3.4
5.5
1.0
1.3
2.0
1.4
1.0
1.4
NFL
6.3
7.8
9.7
6.1
7.6
9.2
1.5
1.8
1.5
0.2
0.3
0.4
TATA
CHEMICALS
10.9
10.3
8.2
6.4
6.0
5.0
1.0
1.3
1.4
1.0
0.7
0.6
Data Source : CMIE
SWOT
ANALYSIS
STRENGTHS
•
Zero Debt Company
•
Fully integrated Production Facilities.
•
Better & efficient Management of Utilities viz. Power & Gas
•
Proper & timely plant Maintenance Schedule
•
Strong Brand Image and Market Network
•
Captive jetty at Sikka.
•
JV in Tunisia viz. TIFFERT as a backward integration to ensure
consistent supply of PA.
•
Major raw materials are being imported and there are limited
suppliers world over yet efforts are on to obtain
consistent supplies.
•
Being in existence for more than 49 years , the plant
capacities were contemporary at that time. However, they
appear to be smaller in the present context except in case of
DAP which has contemporary capacity.
WEAKNESS
OPPORTUNITIES
•
Tie-ups with countries like Togo, Uganda, Senegal, Canada etc.
for supply of raw material.
•
Agro products consolidation.
•
New Petrochemical Complex at Dahej.
•
Capacity building in complex fertilizers.
•
Market related threats.
•
Exchange Rate Risks.
•
Addition of new capacities world over resulting in
Global competition.
THREATS
CSR
TOUCHING HUMAN LIVES
CORPORATE SOCIAL RESPONSIBILITY (CSR)
•
Mid-day meals thro’ Akshaypatra Foundation to
around 100,000 School Children.
•
Various facilities to nearby villages like drinking
water, cleaning of ponds, construction of roads etc.
Financial Support to Society for Village Development (SVADES)
working in the field of developing village infrastructure,
water recharging, education, youth activities etc.
Financial
support
for
providing
gas
connections,
gas stoves and pressure cookers to 5000 Anganwadis thus
saving precious trees.
ACHIEVEMENTS
ACHIEVEMENTS – Since 2007
 FAI – 2007-08 award for best overall performance of P2O5 in
Complex Fertilizers for Sikka Unit.
 ‘Gold Trophy’ of “SCOPE Meritorious Award – 2007 for environmental
excellence & sustainable development”.
 “The International Safety Award” - 2008 by the British Safety Council,
U. K. for significant contribution in the field of health and safety.
 “ICC Aditya Birla Award” - 2008 for best Responsible Care company.
 The Ministry of Power, GOI awarded the first prize - 2009 for energy
conservation in fertilizer sector.
 “The Best Green Belt” trophy - 2010 in Gujarat for creating green surroundings.
 Certificate of Merit for the National Energy Conservation Award- 2011
from Ministry of Power, Government of India.
WAY FORWARD…
PROJECTS UNDER CONSTRUCTION
EXPECTED
SOURCE
PROJECT COST
EXPECTED
ADDITIONAL
OF
RS Crores
COMMISSIOING TURNOVER
FINANCE
RS CRS
NAME OF
PROJECT
CAPACITY
Methanol
173000
MTPA
301
Q4 2011-12
347
TIFERT
(P2O5)
360000
MTPA
(GSFC
share 50%)
500 mnUSD
GSFC
Investment –
120
Q1 2012-13
1244
Wind
Mill – V
50.4 MW
281
H2 2011-12
31
Nylon – 6
15000 MTPA
125
Q3 2013-14
285
Annone
Modernization
2500 MTPA
90
H2 2013-14
20
Internal
Accruals
PROJECTS UNDER CONSIDERATION
PROJECT
ESTIMATED
INVESTMENT
RS CRORE
STATUS
4th DAP/NPK Train of 0.4 million MT/Year
at Sikka
250
LSTK Tenders in process.
Methyl Ethyl Ketone of 24,000 MTPY
120
Tender invitation
Phosphoric Acid/ SSP at Sikka
1000
Under DFR Study
7000
DPR is done .
Land allocation and
tendering in progress
Integrated Fertilizer & Petrochemical
Complex at Dahej
* Urea 1 Million MTPY
* Caprolactam 0.1 Million MTPY
* Melamine 40,000 MTPY
Disclaimer
This presentation contains forward-looking statements which may be identified
by their use of words contains “plans,” “expects,” “will,” “anticipates,” “believes,”
“intends,” “projects,” “estimates” or other words of similar meaning. All
statements that address expectations or projections about the future, including,
but not limited to, statements about the strategy for growth, product
development, market position, expenditures, and financial results, are forwardlooking statements.
Forward-looking statements are based on certain assumptions and
expectations of future events. The Company cannot guarantee that these
assumptions and expectations are accurate or will be realised. The actual
results, performance or achievements, could thus differ materially from those
projected in any such forward-looking statements. The Company assume no
responsibility to publicly amend, modify or revise any forward looking
statements, on the basis of any subsequent developments, information or
events, or otherwise.
THANK YOU