A Remarkable Turnaround
Godavari Fertilisers and Chemicals Limited: The farmer's friend

When it was taken over by the Murugappa Group in July 2003, Godavari Fertilisers and Chemicals Limited (GFCL) was deeply in the red. Within a year the colour of the company's financials has turned firmly black in a astounding turnaround

The Background
GFCL was established as a joint venture between the Government of Andhra Pradesh and Indian Farmers Fertiliser Cooperative limited (IFFCO) in 1981 to produce and sell 3 lakh tons of Di-Ammonium Phosphate (DAP) per annum from a plant based at Kakinada in coastal Andhra Pradesh. The plant, put up at a cost of Rs.108 crores, covers an area of approximately 700 acres. Production commenced in the year 1988 and 'Godavari' brand was soon established as 'Number One' choice among various DAP brands sold in the State. Subsequent expansion and technology upgradation took the capacity of the plant upto 8,32,000 tonnes by the year 2002.

Product Range
Apart from its own manufactured DAP, the company has been selling 14:35: 14, 10:26:26, 20:20:0, imported DAP, Muriate of Potash, Zinc Sulphate, Biofertilisers, etc.

Market Share
The market for the Godavari range of products extends over a large part of the country and includes Andhra Pradesh, interior Karnataka, Vidarbha, Madhya Pradesh, Chattisgarh, Central and Eastern Uttar Pradesh and parts of Bengal. GFCL has a market share of close to 33 per cent of P205 in the home state of Andhra Pradesh, while accounting for over 66 per cent of all DAP sold in the state. On an all-India basis, the company's share of indigenously produced DAP has been around 15 per cent.

Accolades
The Company won several awards in the recent past including FAI Award for the
Best Overall Performance of Phosphatic Fertiliser units in 2000-01, CII Award for Excellence in Energy Management in the same year, and AP Pollution Control Board's Award for Energy Conservation during the year 2001-02.