Feature

Success Story of Over Three Decades

Posted on 21 January, 2010 | Tags:

Originating as a Fertilizer Company, today GNFC has diversified its profile to become a major player in the field of Chemicals and Information Technology. All through its corporate existence, GNFC has embarked on a people-centric growth objective, rooted in facilitation of the means and motivation for initiating individual enterprise, triggering team-spirit, strengthening the ties with its stakeholders, social development and fulfilling the economic imperatives of the country.

Gujarat Narmada Valley Fertilizers Company Ltd. (GNFC) is a joint sector company promoted by the Government of Gujarat and Gujarat State Fertilizers and Chemicals Ltd. (GSFC) at Narmadanagar, Bharuch District of Gujarat, which is well connected on the national rail and road network that knits the country. GNFC is located in a very prosperous industrial belt consisting of refineries, petrochemicals, fertilizer and Asia's biggest industrial estate at Ankleshwar. Dahej port is just 40 kms from the GNFC site

A Look at the Past
Since its incorporation on 10th May 1976, GNFC has developed into a multi-product company with an asset- base that exceeds Rs 3,000 crore.  GNFC started its operations by setting up a mega, world's largest, single stream fuel oil based Ammonia-Urea complex along with its auxiliary facilities at a total cost of Rs. 399 Crores  in 1981. Subsequently Ammonium Nitro Phosphate and Calcium Ammonium Nitrate Fertilizers were added during 1991.
Company went ahead with massive diversifications and expansions to manufacture and sell chemicals and fertilizers, such as Methanol, Formic acid, Ammonium Nitrophosphate, Calcium Ammonium Nitrate, Nitric acid, Acetic acid and Ammonium Nitrate Melt. GNFC started to produce Aniline and Toluene Di-Isocyanate (TDI) through its subsidiary Narmada Chematur Petrochemicals Ltd (NCPL), which is now merged with GNFC. The company hass focused on consolidating and driving growth through core competencies and absorbing technology from across the world. GNFC is market leader in India for Methanol, Acetic acid, Formic acid, Aniline and TDI. An entire chemical belt has developed along the Southern coast of Gujarat, known as the "Golden Corridor" because of GNFC.  The company is one source of supply for industrial chemicals for many industries across India. GNFC has taken various IT initiatives towards Public Key Infrastructure, Data Centers, Disaster Recovery Sites and IT Security Consulting.
Within a span of next 27 years, company diversified and executed more than 32 projects at a total cost of about Rs. 1,971 Crores. At present, 9 more projects are under execution at the cost of Rs. 2,340 Crores. Projects worth Rs 4,525 Crores are under active consideration. GNFC is highly reputed as the leading Indian manufacturer of nitrogenous fertilizers, industrial chemicals and an IT infrastructure services and solutions provider.  

Deep Rooted Values: Way of Life
The vision statement of GNFC, "To be a technology driven, environmentally responsible Joint sector Company manufacturing Fertilizers, Commodity and Specialty Chemicals maintaining highest standards of operational excellence and innovation for creating sustainable value for all stakeholders," is an indicator of the ideals deep-rooted into the company culture. 
GNFC intends to be the leading provider of Chemicals and Agricultural inputs through adoption of State-of-the-Art -Technologies and Business Processes. With firm commitment to quality, environment, health and safety, the company endeavours to enrich human resources and promote teamwork, innovativeness and integrity. Based on corporate excellence, driven by ethical business practices, professionalism, dynamism and social responsibility, GNFC aims to achieve sustainable growth.

Fostering National Agricultural Prosperity
In 1981, the World's largest single stream Ammonia- Urea Plant with a capacity of 4,45,000 MTA for Ammonia and 5,94,000 MTA of Urea was brought to life by GNFC. Across the world, the Ammonia plant is considered as a reference for fuel oil based technology, while the Urea plant based on stripping technology from Snamprogetti is considered to be the model plant world over.
Over the years, the company expanded its fertilizer portfolio and set up Ammonium Nitro Phosphate (ANP) and Calcium Ammonium Nitrate (CAN) Fertilizer Plants in 1991 to produce 1,42,500 MTPA of ANP (20:20:0) and CAN. GNFC has acquired a leadership status in manufacturing and selling of fertilizers such as Urea, ANP and CAN under the umbrella brand name of Narmada. To ensure highest quality standards, GNFC has a well-equipped quality control lab.
10 lakh metric tonnes of fertilizers are manufactured and sold by the company. GNFC is the only indigenous manufacturer of CAN, a specialty fertilizer in the country. However company imports Urea, Di-Ammonium Phosphate (DAP) and Muriate of Potash (MOP). In addition to these, GNFC trades in fertilizers like Single Super Phosphate (SSP) and DAP.
Since inception, company has sold around 19.7 million tonnes of fertilizers, which translates to approximately 8.2 million tonnes in terms of NPK, thus contributing to 5.8 million tonnes of food grains to the country so far.

Leveraging Farming Productivity
GNFC maintains close liaison with the farming community in all the states of its operations, educates farmers on efficient use of fertilizers and scientific cultivation of crops through Agriculture Services Wing. The company has established 57 Narmada Khetud Sahay Kendra to provide wide range of information to farmers through use of information technology. Marketing experts and agricultural graduates man these outlets. Under rural development programmes GNFC has developed integrated approach to extend proper need-based services to the farming community. The course curriculum is one of the highlights of the initiatives taken by the company to impart training to young innovative farmers and educate them about the latest scientific techniques. GNFC has set up a high tech agro complex to educate agriculturists to adopt modern techniques. Monthly magazines both in Gujarati and Hindi covering scientific papers on recent advances in farm practices are regularly published and circulated among about 100,000 farmers of Narmada Kisan Parivar. GNFC also runs a well-equipped soil-testing laboratory, which is credited to test 12,000 soil and water samples per year. The company has a tissue culture laboratory for production of high yielding disease free tissue culture plants of banana and other crops. Commitment of GNFC to work at the grass root level to increase agricultural yield is symbolic of its concerns to better the quality of rural life in India. Turnover of fertilizer increased from Rs 93 crores in 1981-82 to Rs 450 crores in 2008-09.

Invigorating the Chemical Industry
Committed to the unflinching cause of growth in the chemical industry, a vision of continuous growth and an enterprising strategic view on expansion and diversification, GNFC has set up core chemical and petrochemical plants for industrial products like Methanol, Formic Acid, Weak and Concentrated Nitric Acid, Acetic Acid and Ammonium Nitrate (Melt). Besides this, GNFC's well-equipped R&D center has developed a liquid catalyst CATSOL for sour gas treatment.

Milestones & Achievement of  GNFC in Industrial Chemicals: 

• First Methanol Plant was set up in 1985, Second Plant in 1990 & Third Plant was commissioned in 2006. Total  production capacity is about 180,000 MT/Annum.
• Commissioned 5,000 MTPA Formic Acid plant in 1989. Present capacity 10,000 MT/Annum.
• Set up of 33,000 MT/Annum Concentrated Nitric Acid plant in 1989. Capacity doubled to 66,000 MT/Annum in 1998.
• Commissioned Weak Nitric Acid plant in 1990 with original capacity of 2,07,900 MT/Annum which has been further increased to 2,47,500 MT/Annum in 2001.
• Commissioned 50,000 MT/Annum Acetic Acid plant in 1995. Capacity doubled to 100,000 MT/Annum in the year 2002.
• Started Aniline production in 1995 with the capacity of 20,000 MT/Annum, which has been increased to 35,000 MT/Annum.
• Commissioned Toluene Di-Isocyanate plant with installed capacity of 10,000 MT/Annum in 1995. The present capacity of the plant has been revised to 14,000 MT/Annum since 2007.

GNFC is India's largest producer of Formic Acid, Acetic Acid, Methanol & Aniline. Aniline is the largest single-stream plant in the country, the TDI plant has a singular distinction of being the only one of its kind not only in India but entire South East and West Asia. The company is credited to be India's only manufacturer of Glacial Acetic Acid by the cutting-edge Methanol route. Besides this, co-products, Nitrobenzene, Nitric Acid, Hydrochloric Acid, Meta Toluene Diamine and Ortho Toluene Diamine (OTD) are also well accepted in domestic and international markets.
GNFC has been running all chemical plants at more than 100% capacity utilization to generate best value for money to all stakeholders of the company. The company has contributed in setting up of a large number of small & medium down stream chemical manufacturing units providing employment & income opportunities to a large section of the society in the state. The industrial chemicals manufactured by GNFC are used by a wide range of manufacturers, processors and chemical operators in India and abroad.
Production of Industrial Chemicals by GNFC increased from 0.21 Lacs MT during 1986-87 to about 9 Lacs MT during 2008-09 an increase by 43 times in 22 years. Turnover of Industrial Chemicals by GNFC has increased from Rs. 116 Crores in 1991-92 to Rs. 1,066 Crores in 2008-09.

Technology Collaborations
GNFC draws much of its strength from the technological collaboration with world's leading corporate giants like Linde AG, Germany, GE Energy-USA, Haldor Topsoe, Denmark, Snamprogetti, Italy, ICI  UK, Kemira OY Finland, Toyo Engineering - Japan, BASF, Germany, Uhde, Germany, Plinke, Germany, B P Chemicals, UK, Chematur AB, Sweden, Dupont - USA, Entrust - USA etc.
GNFC has adopted and mastered the world-class technologies for various plants. GNFC is successfully operating the difficult, complex technology of various plants. Value added products are being produced from various streams of Ammonia plant.  Continuous emphasis is placed on Energy conservation, Innovation, Cost reduction, Environmental conservation and Safety aspects.

Core Strengths
The total land occupied by GNFC comprises of 950 acres of factory and 205 acres of township. Company has well established basic and allied infrastructure facilities within and outside the factory premises. Strategic location of GNFC, between Western Railway & National Highway, is a great advantage for transporting equipments, raw materials and finished products. The company is self-sufficient in power requirement with captive power plant of 57.6MW capacity, 21MW capacity wind turbo generators in Kutch region and four boilers each having capacity of 180MTs per hour. GNFC has created facilities for 130 million liters per day of water. Material handling facilities include 1500 MTs of fuel oil, 2000MT coal and 3000MTs of fertilizers every day. Availability of fuel oil as feedstock from Gujarat refinery, Vadodara as well as water availability from Narmada and Tapi further add to the strength of the organization. GNFC has a vast marketing network to ensure smooth efficient distribution, prompt delivery of its products reach to the smallest consumer.
GNFC has extended its profile by taking strides in Information Technology and has set up GNFC Infotower to provide ready to use infrastructure required by IT companies. As a Commercial Certifying Authority (n) Code Solutions has established its position as a thought leader in Digital Certificates (DSC) issuance and PKI Technology. (n) Code has set up a portal, www.nprocure.com, which facilitates and manages all facets of e-tendering. This also provides security solutions like consulting, designing, implementation and management of secure networks.
GNFC's Research & Development (R&D) activities focus on development of new products, processes and technologies, optimizing waste generation, process optimization and environment control etc. Researchers at GNFC have many achievements to their credit, such as CATSOL, Liquid Phase Redox Process for Hydrogen sulphide removal from lean and fluctuating H2S streams. GNFC has developed this technology jointly with the EIL, commercialized after the successful trial at ONGC's Gas Processing Plant at Hazira. The team has also developed Dry Bed Process for Hydrogen Sulphide Removal, improved effluent treatment process and process for ammonia recovery from waste gas streams.

Expansions & Diversifications
GNFC is always looking at growth opportunities. Within a span of 27 years, company has diversified and executed more than 32 projects at a total cost of Rs 1971 crores. At present GNFC has undertaken 9 more projects at an estimated cost of Rs 2341 crores. Company is also considering setting up Ammonia plant feedstock conversion, new Formic acid and Acetic acid projects with an estimated investment of Rs 4500 crores. GNFC has already entered into mega venture with GACL and GSFC to set up Polycarbonates, Polyvinyl Chloride and Elastomers projects at an estimated investment of Rs 10000 crores.
GNFC has been a profit making Company ever since commissioning of the plants. Company has paid dividend from the very next year and has a track record of dividend payments uninterruptedly thereafter. Company has achieved sales turnover of Rs. 2,920  Crores with PAT of Rs. 228 Crores and declared dividend @ 32.5 percent for the year  2008-09.

Abiding Environment and Safety Norms
GNFC has made substantial investments for environmental protection and has taken adequate measures towards pollution control, effluent treatment, water conservation and recycling and waste management. Environmental policy of the company complies with all applicable legal and regulatory environmental requirements.

Three pronged strategy for environment management 

• No or minimum pollution at source using technological alternatives wherever possible
• Fruitful utilization of residues, whether liquid, solid or gases
• Treating effluents to reach acceptable limits

Accreditions

•  ISO-14001 certificate by TUV for the Environment Management System for entire GNFC complex. 
•  OHSAS-18001 (Occupational Health & Safety Assessment Series-18001) certificate from TUV NORD, Germany for the entire GNFC complex.
•  ISO-9001 certificate for its Aniline, TDI products by M/s TUV NORD, Germany.

GNFC has a detailed safety regime, an integrated safety command structure with the objective of maximizing awareness and minimizing accidents. The Fire and Safety Department at GNFC looks after safety monitoring, evaluation, audit and reformation and takes necessary safety measures. These safety measures can be broadly categorized as pre-emptive measures, inspection and monitoring, crisis management and recovery measures.

Honing the Human Edge to Excel
At GNFC, intellectual capital is its greatest competitive strength. A collective endeavor, a human synergy of 2800 strong workforce facilitating individual excellence has helped GNFC establish new milestones in its corporate history that stretches to nearly 3 decades. GNFC has made a conscious effort to create an environment at work, which allows its employees to reach their full potential, and achieve means for personal fulfillment.
At GNFC, the approach of honing the human edge is multi-faceted. It encompasses nurturing individual initiatives, tapping latent potential, honing existing skills, giving impetus to personnel development, formalized on-the-job / off-the-job training programs based on past analysis. Participation at all levels vertical and horizontal, encouragement of interaction, motivates the employees to give their best to the organization.
GNFC has maintained cordial industrial relations and theUnion-Management relationship is based on trust. Due to the management's positive approach, the Union has relinquished any external influence or agency support. The company has the distinction of not losing a single man-day due to industrial discord. There is an all-round sense of trust and accountability in GNFC. For inculcating efficient practices to work and advancing productivity, GNFC has instituted suggestion schemes, which has resulted in major productivity benefits to GNFC.
With its state-of-the-art technology, high quality standards and productivity-conscious workforce, GNFC has won many prestigious National and International awards.

Outlook
Continuous emphasis is placed on higher productivity, energy conservation, efficiency improvement, innovation / cost reduction through its excellent human resource, environmental consciousness, safety consciousness etc. Utmost importance is given for proper up-keepment of the plants to sustain the productivity, safety and health aspects.
Company has integrated operations and a large basket of products including fertilizers and chemicals. GNFC has continued to maintain its leadership position in many products like Methanol, Formic Acid, Acetic Acid, Aniline and TDI and hence will be able to overcome global recessionary condition. GNFC is consolidating its business and implementing various projects with an estimated investment of about Rs 2400 crores. Identification of new business opportunities is a continuous process at GNFC as a part of its growth strategy and based on the merit, the company will implement projects in a phased manner.

- Guruprasad Mohapatra (IAS) , MD, GNFC Ltd Bharuch