GNFC Research Report By Angel Broking

Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) is engaged in operating businesses in the industrial chemicals, fertilizers and information technology (IT) products space. GNFC is engaged in manufacturing and selling fertilisers such as urea and ammonium nitro-phosphate under the Narmada brand. The outlook for fertilizer business is positive following good monsoon. On the chemical sector, the current low per capita consumption in the domestic market and strong growth outlook for end usage are the key growth drivers for this industry. GNFC is planning to set up a lime purification project for which a joint venture company with Santosh Agrochem LLP was set up to purify by-product lime, to make it more marketable. This will resolve the environmental issues and at the same time add value to the product. GNFC is partnering Belgian firm Ecophos SA to set up a di-calcium phosphate plant at Dahej in Gujarat at an estimated cost of Rs. 526crore. The company has initiated actions for setting up 2,00,000 mtpa di-calcium phosphate (DCP) project. With the implementation of this project, entire hydrochloric acid (HCI) generated as byproduct from the toulene di-isocyanate (TDI) plant at Dahej will be utilised for production of DCP, resulting into improvement in the profitability of TDI business. The company is exploring opportunities in countries where there is availability of raw materials like natural gas, rock phosphate and other petroleum products at economic prices. Hence Buy.