Kochi

FACT firms up diversification plans

₹967 crore received from company’s land sale to State Govt. to provide impetus

The financially troubled Fertilisers and Chemicals Travancore (FACT) will end the current year on a positive note with the company management firming up plans to boost business using the ₹967 crore received from the company’s land sale to the State government.

Boosting turnover

Kishor Rungta, chairman and managing director of FACT, told trade union leaders at a meeting here recently that the amount received from the land sale would be utilised to increase production over the next two years. Restarting caprolactam production, increased production of Factamfos and higher sale of imported fertiliser inputs were expected to boost the turnover for the company, said trade union sources.

They said that restarting caprolactam production, along with other measures, would raise the company’s annual turnover, paving the way for its profitability. These measures have been firmed up even as FACT is looking to end the current financial year exceeding the target set for the year.

According to sources, FACT will end the current financial year with sale of around 10 lakh tonnes of fetilizer as well as trading in about one lakh tonnes of urea.

Caprolactam

Caprolactam production is expected to restart in May next year. The target is about 30,000 tonnes per year initially. The increased and diversified production is expected to take the business turnover to around ₹3,500 crore to ₹4,000 crore annually, trade union sources said.

The FACT management has also firmed up plans to invest in increasing Factamfos production by 1,000 tonnes per day.

This will add 3.3 lakh tonnes to the total volume of production.

FACT will also invest in improving its facilities for transport and storage of raw materials for fertilizer production, sources said.

These projects are expected to be completed over a period of 24 months.

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Printable version | Apr 2, 2020 7:00:10 AM | https://www.thehindu.com/news/cities/Kochi/fact-firms-up-diversification-plans/article30324459.ece

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