ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Fertiliser Project in the Bag

Fertiliser Project in the Bag Hansavivek TATA CHEMICALS, at long last, has received the letter of intent and MRTP clearance for the gas-based nitrogenous fertiliser project to be located at Babrala in Badaun district of UP. The fertiliser complex will be capable of producing 1,350 tonnes of ammonia per day which will be used for the manufacture of 2,250 tonnes per day of urea. The project will be implemented by Tata Fertilisers, which is at present a 100 per cent subsidiary of the company but which will be spun off as a widely held public company in due course. The company, either by itself or, if found necessary, together with its shareholders, associates and friends, will subscribe, on the basis of current estimates and subject to the final approvals of the government agencies concerned, Rs 75 crore to the equity share capital of Tata Fertiliser. The company has turned in good working results for the year ended March 1985. The production of soda ash increased marginally by 2.5 per cent to a new high of 4,71,352 tonnes, representing a capacity utilisation of 94 per cent despite numerous handicaps. Pro duction of densified soda ash increased by 22 per cent to 1,38,360 tonnes and placed the company in a better position to cater to the requirements of the glass industry and other users of densified soda ash. The production of refined sodium bicarbonate increased by 18 per cent to a new high of 21,669 tonnes. The production of salt during the year crossed, for the first time, the one-million tonne mark and at 10,23,288 tonnes, registered an increase of 36 per cent over the previous year. Correspondingly, production of bromine also increased by 52 per cent to 549 tonnes. Production of vacuum salt increased by 28 per cent to a new high of 90,118 tonnes, of which 15,100 tonnes were iodised. Production of caustic soda marginally declined by about 3 per cent and of pure salt by about 37 per cent due to sluggish demand. The benzene hexachloride plant was shut down for a month for complete overhaul and check-up to ensure maximum environmental safety. Production of BHC also declined by about 2 per cent. The company has reported a gross profit of Rs 33,09 crore against Rs 31.97 crore in the previous year following increase in sales from Rs 105.16 crore to Rs 111.51 crore. These figures show a small decline in margins. With reduced provision for depreciation and a substantial saving in taxation, net profit has more than doubled from Rs 9.21 crore to Rs 20.97 crore. Unchanged dividend of 25 per cent on enlarged capital is covered 6.01 times by earnings as against 3.14 times previously.

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