BRIEF OVERVIEW OF THE ORGANISATION

Madras Fertilizers Limited (MFL) was incorporated in December 1966 as a Joint Venture between GOI and AMOCO India Incorporation of USA (AMOCO) with GOI holding 51% of the equity share capital.  In the year 1972, NIOC acquired 50% of the AMOCO’s share and the shareholding pattern became 51% GOI and 24.5% each of AMOCO and NIOC.
In 1985, AMOCO disinvested their shares, which were purchased by GOI and NIOC in the proportions of their respective shares as on 22.07.1985.  The revised share holding pattern was GOI 67.55% and NIOC 32.45%.  Subsequent to the Issue of Rights shares in 1994 for part financing of the Project, the shareholding of GOI & NIOC stand at 69.78% and 30.22%.
During 1997, MFL had gone for Public Issue of 2,86,30,000 shares with face value of ₹10 and a premium of ₹ 5 per share.  Of these, 2,58,09,700 shares were subscribed.  The present Paid up share capital and the shareholding pattern are as follows:

The Company has an authorised share capital of ₹ 365 Cr and the paid up equityis ₹ 161.10 Cr.
 

MFL commenced commercial production in 1971, with an annual installed capacity of 2,47,500 MT of Ammonia, 2,92,050 MT of Urea and 5,40,000 MT of NPK.    A major revamp / expansion was carried out in 1998 at a cost of ₹ 601 Cr, enhancing the annual installed capacity to 3,46,500 MT of Ammonia, 4,86,750 MT of Urea and 2,80,000 MT of NPK.

VISION / MISSION

To become a leader in fertilizer and process industry and in production/marketing of agrochemicals and other eco-friendly products like Bio-fertilizers/NeemPesticides through Efficient Operation, Quality Product, Market Orientation and Dedicated Manpower.

FINANCIAL PERFORMANCE
                                                                                                                                                                                                                                                                           ₹  Cr

• Company achieved a remarkable turnaround by making Profit for the consequent two years     (2020-21 & 2021-22). For the FY 2021-22, made stupendous profit after tax (PAT) of Rs.162.05 Crore which is 56 times of the PAT for year 2020-21 through lowest specific energy consumption of 7.371 Gcal/MT. This is the lowest annual energy ever achieved since inception.
• MFL achieved higher Urea production of 5.039 LMT since inception with capacity utilization of 103.5 % and coupled with higher operating factor of 101.6%.
• Got listed in to Top 1000 listed companies. MFL has reached 996th ranking with market capital of Rs.796.65 Crore for the first time since listing.

HIGHLIGHTS OF PLANT PERFORMANCE

• During the year 2021-22, Plant has produced 503900 MT of Neem Coated Urea. The capacity Utilisation of Urea plant is 103.5% with an operating factor of 101.6%.
• MFL has achieved Urea Production of 503900 MT which is the best annual production (previous best 486750 MT in the FY 2013-14).
• Annual Specific Energy Consumption of 7.371 GCal/MT of Urea is the Lowest Specific Energy Consumption since inception (Previous Best 7.386 GCal/MT in the FY 2013-14)
• Quarterly Production of 146662 MT of Urea during Oct-Dec 2021 is the highest production since inception (Previous Best 144763 MT during Jan-Mar 2011)
• Quarterly Specific Energy Consumption of 6.989 GCal/MT of Urea during Oct-Dec 2021 is the Lowest Specific Energy Consumption since inception (Previous Best 7.057 GCal/MT during Jan-Mar 2011)
• Monthly production of 50662 MT achieved during Dec 2021 is the Best monthly production (Best 50650 MT in Mar 2016)
• Monthly Specific Energy Consumption of 6.839 GCal/MT of Urea during Dec 2021 is the Lowest Specific Energy Consumption since inception (Previous Best 6.890 GCal/MT in Apr 2013)
• At the close of Mar 31, 2022, 2911 days were completed without any lost time accident covering 9.99 million man-hours. (Previous best Achieved - 5.66 million man-hours.)

MARKETING PERFORMANCE

FERTILIZER SALES

• Achieved an All-time Record sale of 5,04,559 MTs of Vijay Neem Coated Urea since revamping of Urea Plants which is 5.2% increase over previous year sale of 4,79,402 MTs.
• Our Market share in Tamil Nadu is 28.01% which is more than One fourth of total market share of Tamilnadu and it is 8.2 % in MFL’s marketing territory of South India. (Total consumption 2021-22: 61,45,562 MTs and CPLY : 60,68,525 MT).
• Sold the entire available quantity of 26,253 MTs of Vijay 17-17-17
• Overall, Sold 5,30,812 MTs of both NPK 17-17-17 and NC Urea during the year which is at par with the previous year sale of 5,31,270 MTs.
• Record movement of 5,28,255 MT which is 2 nd best in the last 8 years, irrespective of pandemic conditions that prevailed throughout the year.

ORGANIC MANURES, NEEM PESTICIDES &  BIO-FERTILIZERS SALES

• Sold 169.24 MT of Vijay Bio Fertilizers which is the highest in the past 6 years and it is 8% increase over previous year sale of 157.00 MT.
• Sold 113.63 KL of Vijay Neem which is the highest in the past 8 years and it is 17% increase over previous year sale of 96.67 KL.
• Under “Basket Approach” MFL sold 6832 MTs of Vijay Organic which is the highest in the past 6 years and 35% increase over previous year sale of 5046 MTs. MFL is proud to be the Market leader in Tamilnadu with 50 % market share.
• In addition to Organic Manure, Under “Swachh Bharat Mission”, Marketing of City Compost, a product from Municipality/Factory waste, has been undertaken and 10634 MTs was sold which is 66% increase over previous year sale of 6403 MTs
• With respect to City Compost sales, MFL is the TOPPER in Tamilnadu in this segment.

MARKET DEVELOPMENT & AGRO-SERVICE PROGRAMMES:

MFL’s Marketing personnel have contacted 23744 farmers during the year and continuouslyimparted knowledge to farmers on use of eco-friendly products for soil health, soil fertility, Soilvitality and balanced fertilization (Integrated Nutrient Management). Method demonstrationsand farmer seminars were organized in coordination with State/Central Agricultural extensiondepartments.

Under corporate social responsibility to farming community, Marketing personnel had collected4036 soil samples, got analyzed and communicated to the farmers about the micro & macronutrient recommendations of various crops to farmers during the year.

In pursuance to the Prime Minister’s Mission on empowering the Farmers vide SupportiveSchemes & Education on farming techniques, MFL continues its service to the farmers through“KisanSuvidha Kendra” at Gangavathy and Shimoga in Karnataka State. Farmer services likesoil sample analysis and recommendation of fertilizer dosage based on soil test report, educatingthe farmers on weather, crop Insurance and other improved farm technologies were offered.

DBT Implementation

• In compliance with PAN India implementation of DBT Fertilizer, in order to sustain salesthru PoS machines, MFL is continuously educating the Wholesalers/Retailers and farmerson the importance of PoS sales.
• “All-time high” Bill generation for NC Urea since inception of DBT in Jan’2018

MEMORANDUM OF UNDERSTANDING

A MoU was signed with Department of Fertilizers (DOF), Government of India for the year 2021-22 on Feb 10, 2022 setting up targets for performance of the Company in terms of static and dynamic parameters.

HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL RELATIONS

TRAINING

272 employees have been trained during the year 2021-22 on Technical, Soft and Life Skills.

INDUSTRIAL RELATIONS

During the year, overall Industrial Relation situation in the Company has been normal and cordial.

SC / ST EMPLOYEES WELFARE ACTIVITIES

The Presidential Directives and various guidelines issued by the Government of India from time to time relating to the SC / ST employees are being scrupulously followed.

Rs.30,000/- was granted per SC/ST Association for celebrating Dr. Ambedkar Jayanthi.

To handle the grievance of SC/ST employees, the following are in existence

• SC/ST Cell
• Internal Grievance Committee (IGC) for SC and ST separately
• A Liaison Officer for SC/ST employees

OBC EMPLOYEES WELFARE ACTIVITIES

Rs.30,000/- was granted for OBC employees’ welfare Association to celebrate Thanthai Periyar E V Ramasamy’s Birthday.

To handle the grievance of OBC employees, the following are in existence

• OBC Cell
• Internal Grievance Committee (IGC) for OBC employees
• A Liaison Officer for OBC employees

OFFICIAL LANGUAGE IMPLEMENTATION

The target fixed by Department of Official Language for letter correspondence in Hindi and other implementation programs are being taken care of. Hindi Fortnight was celebrated at Head Office and Regional Offices. Various competitions were organized through online and prizes were distributed.

Prevention of Sexual Harassment

Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 has been provided in the Corporate Governance Report.

The Company has zero tolerance for sexual harassment at the work place and the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2014 and the Rules thereunder for prevention and redressal of complaints of sexual harassment at workplace are being followed.

Two programs were conducted to create awareness among women associates explaining the provisions available under the PoSH Act 2014.

Internal Compliance Committee (ICC) is in place, to redress the complaints of women employees.

CSR ACTIVITIES: (HIGHLIGHTS)

Total amount spent for the financial year 2021-22 is Rs.48.86 lakhs. Details of CSR activities aregiven below:

• Installation of Oxygen Plant at Govt Stanley Hospital, Chennai.
• Supply of Medical equipment (10000) Triple layer face mask & 10 Nos. of PulseOximeter) to Greater Chennai Corporation Zone 2
• Contribution to M/s Thirumalai Chemicals for Installation of Oxygen Plant at Rajiv Gandhi Government Hospital, Chennai.

USE OF CLEANER AND GREENER FUEL

•    FEEDSTOCK CONVERSION PROJECT from Naphtha to RLNG based, One of the major milestones achieved by MFL for the Plant located at Manali, Chennai – 600 068, during the year 2019 and w.e.f  28 July 2019 Ammonia production commenced. In connection with this switchover of 2 Nos of its fuel oil fired (Furnace Oil) boilers in Ammonia Plant to Natural Gas (RLNG), the cleaner and energy efficient fuel for the following boilers.

•    110 ATA Boiler with steam generating capacity of  100 MT/h @ Pressure 112 Kg / cm2 g

•    Process Condensate (PC) Boiler with steam generating capacity of  70 MT/h @ Pressure 42 Kg/ cm2 g   

•    This has reduced the consumption of costly fuel oil besides improving reliability and reducing carbon footprint.

•    Apart from the above initiative, Company’s entire Ammonia Production is now based on gas(RLNG) as feedstock instead of Naphtha.
 

Based on the above achievement now MFL is in progress to implement gas firing RLNG system for the another boiler in Utility Plant of steam generating capacity 58 MT/h @ Pressure 42 Kg/ cm2 g  to RLNG from Fuel Oil. 

INVESTOR RELATIONS CELL (IRC)

IRC is functioning in the Company under the Company Secretary to create awareness of the Company’s strength and ensuring timely communication to shareholders.