4 AN OVERVIEWGSFC 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.
5 HISTORY OF BUILT UP OF EQUITY SHARE CAPITAL Initial Public OfferBonus IssueRights IssueYearRatio197519801984198719911:31:43:101989199319968:131:101:5
9 COMPANIES PROMOTED BY GSFC GUJARAT NARMADA VALLEY FERTILIZERS COMPANY LIMITED (GNFC) A Fertilizer & Chemical CompanyGUJARAT INDUSTRIAL POWER COMPANY LIMITED (GIPCL) A Joint Power PlantGUJARAT GREEN REVOLUTION COMPANY LIMITED (GGRC) Revolution in agriculture through Micro IrrigationTUNISIAN INDIAN FERTILIZERS (TIFERT) A Joint Venture in Tunisia to ensure P.A. supplyGUJARAT CHEMICAL PORT TERMINAL COMPANY LIMITED (GCPTCL) A step to improve port based infrastructureEFFLUENT CHANNEL PROJECTS LIMITED (ECPL) Ensuring Cleaner EnvironmentBHAVNAGAR ENERGY COMPANY LIMITED (BECL) Lignite Based 500 MW power project
11 THE GROWTH TRAJECTORY SINCE 1967 PHASE I1967PHASE II 1969PHASE III PHASE IVPHASE V PHASE VIInception as a Fertilizer Company at BarodaExpansion in Fertilizers at BarodaDiversification in Petro-Chemicals at BarodaAcquisition & Expansion at other LocationsFurther Expansion in Petrochemicals and AcquisitionExpansion in Petrochemicals, Fertilizers and Green PowerAmmonia IAmmonia IICaprolactam-INandesari - Polymer Unit AcquisitionCo-Generation of Steam & Power Project –ISikka – DAP C TrainUrea-IUrea IIOleum(SO2)Kosamba - Fibre Unit AcquisitionMEK-OximeAmmonium SulphatePurge Gas Recovery Plant (Methane)Co-Generation of Steam & Power Project – IIMethanolDiammonium PhosphateNylon-6Sikka – New DAP Plant - A&B TrainsCaprolactam IIAmmonia-IIIRevivalSulphuric Acid-IVWind Power Projects – Phase I to V – 124 MWOxo-Syn GasSulphuric Acid-IMEK OximeCombined Cycle Co-Generation Project-IIIPhosphoric AcidSulphuric Acid IIIMelamine IIUtilitiesMelamine IAmmonia-IV
17 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.
34 MAJOR HOLDERS Holding more than 1% Shares SHARES%GUJARAT STATE INVESTMENTS LTD. (investment arm of GOG)37.84LIFE INSURANCE CORPORATION OF INDIA6.02RELIANCE CAPITAL TRUSTEE COMPANY LIMITED A/C RELIANCE GROWTH FUND5.79FIDELITY PURITAN TRUST-FIDELITY LOW-PRICED STOCK FUND3.07SBI MUTUAL FUND - MAGNUM TAX GAIN 19932.88RELIANCE CAPITAL TRUSTEE CO LTD-RELIANCE NATURAL RESOURCES FUND3.21GUJARAT ALKALIES AND CHEMICALS LIMITED1.88GUJARAT NARMADA VALLEY FERTILIZERS COMPANY LIMITEDGUJARAT MINERAL DEVELOPMENT CORPORATION LTD1.25TOTAL63.84
35 SHARE HOLDING PATTERN (as on 30-11-2011) Total paid up equity share capital Rs. 79,69,55,060.00
37 PEER GROUP COMPARISON FY 10-11 ParticularsGSFCTCLRCFCFLZUARIFACTNet SalesRs Bn47.662.355.175.355.313.0EBIDTA12.710.04.811.43.0-0.5EBIDTA / Net Sales%27%16%9%15%5%NAPBT126.96.36.199.92.4PBT / Net Sales23%6%13%4%PAT188.8.131.52.91.7PAT / Net Sales7%3%-4%EPSRs.941642557-1Data Source : CMIE
38 ANALYSIS OF FINANCIALS NAME OF COMPANYRONWROCECURRENT RATIODEBT TO EQUITY RATIO08-0909-1010-11CHAMBAL184.108.40.206.18.11.01.22.52.01.91.5CFL51.234.736.826.220.7220.127.116.11.7GNFC10.83.810.33.55.90.18.104.22.168GSFC25.412.429.024.912.322.214.171.124IFFCO8.411.017.25.37.7126.96.36.199.3NAGARJUNA188.8.131.52.45.5NFL184.108.40.206.220.127.116.11TATA CHEMICALS10.98.26.46.05.00.6Data Source : CMIE
40 STRENGTHS WEAKNESS Zero Debt Company Fully integrated Production Facilities.Better & efficient Management of Utilities viz. Power & GasProper & timely plant Maintenance ScheduleStrong Brand Image and Market NetworkCaptive jetty at Sikka.JV in Tunisia viz. TIFFERT as a backward integration to ensure consistent supply of PA.WEAKNESSMajor 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.
41 OPPORTUNITIES THREATS 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.THREATSMarket related threats.Exchange Rate Risks.Addition of new capacities world over resulting in Global competition.
43 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.
45 ACHIEVEMENTS – Since 2007FAI – 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” by the British Safety Council, U. K. for significant contribution in the field of health and safety.“ICC Aditya Birla Award” for best Responsible Care company.The Ministry of Power, GOI awarded the first prize for energy conservation in fertilizer sector.“The Best Green Belt” trophy in Gujarat for creating green surroundings.Certificate of Merit for the National Energy Conservation Award from Ministry of Power, Government of India.
47 PROJECTS UNDER CONSTRUCTION NAME OF PROJECTCAPACITYPROJECT COST RS CroresEXPECTED COMMISSIOINGEXPECTED ADDITIONAL TURNOVERRS CRSSOURCE OF FINANCEMethanolMTPA301Q347Internal AccrualsTIFERT (P2O5)MTPA (GSFC share 50%)500 mnUSD GSFC Investment – 120Q1244Wind Mill – V50.4 MW281H31Nylon – 615000 MTPA125Q285AnnoneModerni-zation2500 MTPA90H20
48 LSTK Tenders in process. Land allocation and tendering in progress PROJECTS UNDER CONSIDERATIONPROJECTESTIMATED INVESTMENTRS CRORESTATUS4th DAP/NPK Train of 0.4 million MT/Year at Sikka250LSTK Tenders in process.Methyl Ethyl Ketone of 24,000 MTPY120Tender invitationPhosphoric Acid/ SSP at Sikka1000Under DFR StudyIntegrated Fertilizer & Petrochemical Complex at Dahej* Urea 1 Million MTPY* Caprolactam 0.1 Million MTPY* Melamine 40,000 MTPY7000DPR is done .Land allocation and tendering in progress
49 DisclaimerThis 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 forward-looking 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.