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Chemical Fertilizer

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Tuesday, March 17, 2015

 

A chemical Fertilizer is known as inorganic fertilizer when its constituents are originated through synthetic means making them non- degradable. To sustain reliable and hastened growth, these fertilizers are added to the soil. They contain one or more of the essential growth nutrients such as nitrogen, phosphorus, and potassium and various others. There are a number of different types of chemical fertilizer; all manufactured for applications in different soil conditions for a variety of plants and crops. Most contain significant amounts of the three nutrients known as macronutrients. If the soil lacks any of these three nutrients, plant growth and production will suffer. Due to different planting mediums and soil conditions, chemical fertilizers are often created with this in mind.

 

India witnessed significant growth of the fertilizer industry during the sixties and the seventies. By 2003, India had an installed capacity of 12.11 million MT of nitrogen and 5.36 million MT of phosphate. Today, with 57 large sized fertilizer plants manufacturing a wide variety of the nitrogenous, complex and phosphatic fertilizers, the Indian fertilizer industry is the 3rd largest producer.

 

Indian Fertilizer industry today has succeeded in meeting the demand of all chemical fertilizers over the years. The first manufacturing unit was started by the Indian Fertilizer Industry which was of Single Super Phosphate (SSP) in Ranipet near Chennai with a capacity of 6000 MT a year. The increasing pressure of population on the available land resources necessitates higher agricultural productivity, which can be achieved through more intensive use of fertilizer nutrients. Fertilizer is generally defined as any material (organic or inorganic; natural or synthetic) which supplies one or more of the essential chemical elements to the plants. The consumption of fertilizer over a period has shown increasing trend. During 2011-12, the consumption of fertilizers has increased by 23% as compared to 2006-07.The balanced use of chemical fertilizer is important not only for increasing the agricultural productivity but also for sustaining soil fertility.

 

Demand:        Past & Future

 

Year                  mn MT

1990-91             8.00

1991-92             8.05

1996-97             9.77

1997-98             11.45

1998-99             11.12

1999-00             11.72

2000-01             11.11

2001-02             11.04

2002-03             10.63

2003-04             10.77

2004-05             11.75

2005-06             12.75

2006-07             13.80

2007-08             14.50

2008-09             15.40

2009-10             14.90

2010-11             15.35

2011-12             16.10

2012-13             16.90

2013-14             17.60

2014-15             18.10

2019-20             21.00

 

Leading Players

 

IFFCO

NFL

RCFL

KHRIBCO

Chambal Fertilisers (CFCL)

FACT

GNFC

GSFC

Nagarjuna

Oswal

Indo-Gulf

SPIC

Tata Chem

Zuari

MFL

 

Market Growth Rates

 

1990-91-1996-97                    3.4%

1996-97-2001-02                    2.4%

2001-02-2006-07                    4.6%

2006-07-2011-12                    3.1%

2011-12-2019-20                    3.4%

 

Sensitivity Coefficient            4.2%

Source: NPCS Team

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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

Introduction
  • Project Introduction
  • Project Objective and Strategy
  • Concise History of the Product
  • Properties
  • BIS (Bureau of Indian Standards) Provision & Specification
  • Uses & Applications
Market Study and Assessment
  • Current Indian Market Scenario
  • Present Market Demand and Supply
  • Estimated Future Market Demand and Forecast
  • Statistics of Import & Export
  • Names & Addresses of Existing Units (Present Players)
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Raw Material
  • List of Raw Materials
  • Properties of Raw Materials
  • Prescribed Quality of Raw Materials
  • List of Suppliers and Manufacturers
Personnel (Manpower) Requirements
  • Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel
Plant and Machinery
  • List of Plant & Machinery
  • Miscellaneous Items
  • Appliances & Equipments
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  • Electric Load & Water
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Manufacturing Process and Formulations
  • Detailed Process of Manufacture with Formulation
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Infrastructure and Utilities
  • Project Location
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  • Built Up Area
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Project at a Glance

Assumptions for Profitability workings
Plant Economics
Production Schedule
Land & Building
  • Factory Land & Building
  • Site Development Expenses
Plant & Machinery
  • Indigenous Machineries
  • Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets
  • Furniture & Fixtures
  • Pre-operative and Preliminary Expenses
  • Technical Knowhow
  • Provision of Contingencies
Working Capital Requirement Per Month
  • Raw Material
  • Packing Material
  • Lab & ETP Chemical Cost
  • Consumable Store
Overheads Required Per Month And Per Annum
  • Utilities & Overheads (Power, Water and Fuel Expenses etc.)
  • Royalty and Other Charges
  • Selling and Distribution Expenses
Salary and Wages
Turnover Per Annum
Share Capital
  • Equity Capital
  • Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals
  • Revenue/Income/Realisation
  • Expenses/Cost of Products/Services/Items
  • Gross Profit
  • Financial Charges
  • Total Cost of Sales
  • Net Profit After Taxes
  • Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements
  • Current Assets
  • Gross Working. Capital
  • Current Liabilities
  • Net Working Capital
  • Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets
  • ROI (Average of Fixed Assets)
  • RONW (Average of Share Capital)
  • ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios
  • D.S.C.R
  • Earnings Per Share (EPS)
  • Debt Equity Ratio
Annexure 7 :: Break-Even Analysis
  • Variable Cost & Expenses
  • Semi-Var./Semi-Fixed Exp.
  • Profit Volume Ratio (PVR)
  • Fixed Expenses / Cost
  • B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume
  • Resultant N.P.B.T
  • Resultant D.S.C.R
  • Resultant PV Ratio
  • Resultant DER
  • Resultant ROI
  • Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status
  • Equity Capital
  • Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks
  • Determined Capacity P.A of Products/Services
  • Achievable Efficiency/Yield % of Products/Services/Items
  • Net Usable Load/Capacity of Products/Services/Items
  • Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation
Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit
Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,
Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit
Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses
Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges
Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses
Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses
Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)
Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)
Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits
Annexure 35 ::Projected Pay-Back Period And IRR