Indo Gulf to focus on Agri-inputs, copper
07 Oct 1999
A V Birla group company, Indo Gulf Corporation, has decided to focus on two areas: agri-inputs and copper.
In the agri-business, the company has two plans. To improve asset productivity, and to expand. It expects to improve its asset productivity levels through unhindered operation of its urea plant.
In the copper business, Indo Gulf will expand capacity through a de-bottlenecking exercise. The company''s plans of spinning off the jetty into a separate joint venture company has been put off. These two measures will help the company utilise its assets better. The company is also planning to enhance value addition in its existing product range.
''Shaktiman'', which is Indo Gulf''s urea brand, has been nurtured well. The company is now set to start seed-marketing di-ammonium phosphate under the Shaktiman brand name.
The company''s fertiliser plant has received ISO 14001 certification. This makes it one of the few fertiliser plants to have achieved environmental compliance.
In August 1999, Indo Gulf announced its plans to build a 4 lakh tonne di-ammonium phosphate unit at Dahej in Gujarat. It has invited global bids construction of the project.
The company intends to extend its value chain by converting phosphoric acid into di-ammonium phosphate. This will help the company increase revenues and profitability. The company''s copper unit generates sulphuric acid as a by-product, which is then used to produce phosphoric acid.
For the quarter ended 30 June 1999, Indo Gulf made a net profit of Rs.40.7 crore on sales of Rs.465 crore. During the same period for the year 1998, net profit was Rs.35.5 crore on sales of Rs.298 crore. Copper contributed over 64 per cent of the company''s turnover for the current quarter, and fertiliser sales were Rs.164 crore.
