Switching over to Re-Liquefied Natural Gas (RLNG) feed stock from Naphtha
MFL has successfully completed the Ammonia Plant Feed stock and fuel conversion from Naphtha to RLNG during July 2019. Also, fuel has been changed over from Fuel Oil to RLNG for two Auxiliary Boilers of Ammonia Plant namely 110 Ata Boiler and Process Condensate Boiler.
Fuel conversion from Fuel Oil to RLNG is being carried out for one of the Auxiliary Boiler in Utility Plant.
MADRAS FERTILIZERS LIMITED
57 th Annual General Meeting thru VC / OAVM
25 th September 2023
CHAIRMAN’S SPEECH
Dear Shareholders,
It gives me immense pleasure to present the 57 h Annual Report of MFL for the year 2022-23. The 57 th Annual General Meeting of the Company is convened as a virtual meeting in compliance with the guidelines issued by the Ministry of Corporate Affairs and Securities and Exchange Board of India.
It is an honour and satisfaction for me to address you and to share the performance highlights and achievements of your Company during the financial year 2022-23 and its future outlook.
Indian Agriculture Scenario
The government has continued its focus on augmenting farmer income through various steps. Increased allocation across the schemes to drive irrigation facilities, improve agricultural markets, augment the allied sectors supporting income, setting-up of FPOs, crop insurance schemes and income supplementation schemes are major positive. Indian fertilizer sector witnessed a sustained high growth in consumption. The Government has taken a number of initiatives for promoting balanced fertilization to accelerate agricultural growth.
Besides this, there have been efforts on the technological development in production processes that keep pace with the latest global production methods and environmental requirements.
Improvement in demand due to a good monsoon which resulted in higher sowing aided the increase in production. Overall Fertilizers Sales too have increased buoyed by a good monsoon and harvest season. There is a compelling need for alternate fertilizers which will have lesser wastage and reduced fertilizer usage while keeping the same or more yield. This opens up for new investment with better return while ensuring food security.
Business diversification specifically the initiative taken for Trading of fertilizer products in the current year will definitely improve the bottom line of the company.
MFL’s Performance at a glance
I am happy to inform you that your Company is committed to serving
the Nation by providing essential fertilizers for the farming community
MADRAS FERTILIZERS LIMITED
57th Annual General Meeting thru VC / OAVM
25th September 2023
CHAIRMAN’S SPEECH
at an affordable price. Your Company has posted the highest ever
Net Profit since inception of the Company that the Net profit for the year
2022-23 is ` 185.33 Cr. By this, the Company has reached another
milestone that it has achieved profit for 3 consecutive years, which
makes me really proud and happy. The revenue from operations of the
Company has also been increased by around 50% (` 3447 Cr for the
financial year 2022-23 as against ` 2302.16 Cr).
I wish to say that MFL continues to meet the fertilizer demand of the
farmers by effective production plan and strategies.
I am happy to share some of the highlights of the performance of your
Company during the fiscal 2022-23:
Plant Highlights
Your Company has produced 519800 MT of Neem Coated Urea
which is the best annual production (previous best 503900 MT in
the FY 2021-22), with the Capacity Utilisation of 106.8%.
Annual Specific Energy Consumption of 7.584 GCal/MT of Urea.
Quarterly Production of 146169 MT of Urea during Jan-Mar 2023
is the Second highest production since inception (Previous Best
146662 MT during Oct-Dec 2021).
Monthly production of 51000 MT achieved during March 2023 is
the Best monthly production (Best 50662 MT in Dec 2021).
At the close of Mar 31, 2023, 3276 days were completed
without any lost time accident covering 11.01 million
man-hours.
Sales Highlights
Your Company has achieved an All Time Record sale of 5,29,879
MTs of Vijay Neem Coated Urea since revamping of Urea Plants
which is 5% increase over previous year sale of 5,04,559 MTs.
Your Company has sold 5,37,383 MTs of both NPK 20-20-0
and NC Urea during the year against the previous year sale of
5,30,812 MTs.
Your Company has achieved record movement of 5,37,117MT
which is the best in the last 10 years.
Sold 157.42 KL of Vijay Neem which is the highest in the past 10 years and it is 38 % increase over previous year sale of 113.63 KL.
Under “Basket Approach” MFL sold 7836 MTs of Vijay Organic
which is the highest in the past 7 years and 15% increase over
previous year sale of 6832 MTs.
In addition to Organic Manure, Under “Swachh Bharat Mission”, Marketing of City Compost, a product from Municipality/Factory
waste, has been undertaken and 9608 MTs was sold which is 50% increase over previous year sale of 6403 MTs.
With respect to Market Development and Agro Service Programs,
MFL’s Marketing personnel have contacted 20822 farmers during
the year and continuously imparted knowledge to farmers on use
of eco-friendly products for soil health, soil fertility, Soil vitality
and balanced fertilization (Integrated Nutrient Management).
Method demonstrations and farmer seminars were organized in
coordination with State/Central Agricultural extension departments.
In pursuance to the Prime Minister’s Mission on empowering
the Farmers vide Supportive Schemes & Education on farming
techniques, MFL continues its service to the farmers through “Kisan
Suvidha Kendra” at Gangavathy and Shimoga in Karnataka State.
Farmer services like soil sample analysis and recommendation of
fertilizer dosage based on soil test report, educating the farmers
on weather, crop Insurance and other improved farm technologies
were offered.
Corporate Social Responsibility (CSR)
I am happy to inform that the Company had spent excess CSR funds
in the previous years than what is envisaged under Section 135 of
Companies Act 2013 and as per the applicable provisions of CSR we
had got carried over benefits. Even then, your Company spent Rs 10
lakhs this year also. This was for setting up for Scientific Museum in
Benguluru. Armed Funds, Flag Day and for welfare measures in Manali
Police Station.
Corporate Governance
Your Company is committed to protect the interest of all Stakeholders
such as investors, Employees Customers, Suppliers Bankers the
Central and State Governments and the community by ensuring
transparency in all aspects of the Company.
Your Company is committed to comply all directives and guidelines of
Government and statutory authorities relating to corporate governance.
The philosophy of the Company in relation to Corporate Governance
is to ensure transparency disclosure and reporting that conforms to
the provisions of Companies Act 2013, SEBI (LODR) Regulations
2015 and all other applicable laws and regulations. The Company is
also complying with the guidelines issued by Department of Public
Enterprises.
Future Outlook
There is a compelling need for alternate fertilizers which will have
lesser wastage and reduced fertilizer usage while keeping the same or
more yield. This opens up for new investment with better return while
ensuring food security. Business diversification like Trading of fertilizer
products will improve the bottom line of the company.
The outlook for the fertilizer sector is positive on expectations of good
monsoon. The underlying macros for the Indian fertilizer industry look
promising.
Acknowledgement
Before I conclude on behalf of the Board of Directors I wish to convey
my sincere regards and deep gratitude to the valued stakeholders for
continued support and trust. You always have been the motivational
force and have facilitated us to move ahead and achieve the excellent
results despite the numerous challenges.
I hereby place on record my sincere thanks to the Board of Directors
for their advice and support, all the employees of the Company for
their dedicated efforts and unstinted support for overcoming various
challenges being faced by the Company and for their contribution for
the revival and sustainable growth of MFL. I must also thank the various
departments of Government of India, in particular, the Department of
Fertilisers Government of India, Government of Tamil Nadu, NICO,
Financial Institutions, Banks, Depositors and all stakeholders for their
support and cooperation.
Last but not the least I extend my gratitude to the various Government
and Regulatory authorities, Company’s valued customers, suppliers,
vendors and investors for their consistent and resolute co-operation
and trust.
My Best Wishes to all of you!
Thank you!
