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SH-2013-Q2-1-ICRA-Fertilisers-Summary

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Pranav Awasthi, CFA

The document provides an analysis of the Indian fertilizer sector for fiscal year 2013-2014. Some key points: - Fertilizer demand declined in FY2013 due to a delayed and deficient monsoon as well as price increases, while subsidy delays impacted company profitability. - The approval of higher domestic gas prices as per the Rangarajan committee's formula will negatively impact the industry by increasing subsidy requirements and reducing profits. - Equal priority for gas allocation to the power sector may further constrain supply to fertilizers and raise subsidy costs. - Subsidy rates for non-urea fertilizers were reduced for FY2014 but currency fluctuations could impact import prices. -

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ICRA RESEARCH SERVICES ICRA RATING FEATURE Corporate Ratings Contacts: K. Ravichandran +91 44 4596 4301 ravichandran@icraindia.com Pranav Awasthi +91 124 4545 373 pranav.awasthi@icraindia.com Ankit Deora +91 22 6179 6337 ankit.deora@icraindia.com P h o t o C re d i t : t h e b re a k t h ro u g h . o rg IIINNNDDDIIIAAANNN FFFEEERRRTTTIIILLLIIISSSEEERRR SSSEEECCCTTTOOORRR::: JJJuuulllyyy 222000111333 UUUpppdddaaattteee The Gas Conundrum: Pricing, Subsidies & The New Urea Investment Policy
I C R A L I M I T E D Page 2 SUMMARY FY13 was a difficult year for the industry on the demand front; encouraging monsoon signs lead to cautious optimism: FY13 was one of the more difficult years for the fertiliser industry in recent times, with demand getting affected on account of delayed and deficient monsoon and significant price increases following high input prices, decline in subsidy rates and currency fluctuations. Sales of all fertilisers except urea declined in FY13, with the overall sales volumes declining by 11% to 53.4 million metric tonnes (MMT) from 59.9 MMT in FY12. Further, delays in subsidy on account of significantly low budgeting led to high short-term borrowings and substantial increase in interest costs. Most players faced profitability constraints and cash flow pressures due to the weak demand and subsidy delays. The systemic inventory levels of non-urea fertilisers remained high through the year on account of weak offtake in FY13 and the carryover inventory will be sold at lower prices, impacting the industry profitability. Given the challenging environment, hopes of normal monsoon in 2013 lead to expectations of some recovery in FY14. On the other hand, adverse weather conditions and under-budgeting of subsidy for FY14 may lead to further weakening of the financial position of the industry in FY14. Non-urea fertiliser sales decline by 24% in FY13; urea volumes rise by 2% Gas price hike to increase urea subsidy outflow by Rs. 131 billion and affect urea industry profitability by Rs. 12 billion Rangarajan Committee recommendations on gas pricing accepted; would negatively impact the industry profitability and lead to increase in the subsidy requirements: The Cabinet Committee on Economic Affairs (CCEA) approved the Rangarajan Committee formula, which would lead to an increase in domestic gas prices to US$ 8.4/mmbtu for FY15 and to over US$ 10/mmbtu from FY16 onwards. The move will have a significant impact on the domestic fertiliser industry. ICRA Research estimates that incremental subsidy outflow for urea production would be to the extent of ~Rs. 131 billion (at a currency rate of Rs. 57/US$). Further, the profitability of the players who undertook revamp projects under the Urea Investment Policy of 2008, earning import parity price (IPP)-based realisations on the incremental urea production beyond the cut-off quantity would be impacted to the extent of ~Rs. 12.14 billion. Additionally the profitability of some of the players manufacturing non-urea fertilisers from gas will be impacted unless the GoI increases the subsidies on these fertilisers to compensate for higher production costs. Cost structure of companies producing chemicals in integrated fertiliser complexes will also be impacted due to higher gas costs. Further, the regulatory risks for the industry will be higher as dependence on subsidy would increase. In case of subsidy delays such as those witnessed in the recent past, the industry will be affected by way of increase working capital borrowings, high interest costs and pressure on the capital structures, particularly for players with already stretched balance sheets. Overall, the additional subsidy burden would also have an impact on the aggressive fiscal deficit reduction targets of GoI. The only positive aspect of the increase in gas price for the industry is that should it lead to an increase in domestic gas production, the fertiliser sector may get additional allocations as it enjoys the top priority for gas allocation. According equal priority to the power sector as fertiliser may constrain gas availability and lead to higher subsidy requirements for fertiliser sector: However, the GoI is considering a proposal whereby the power sector would be accorded equal priority as fertiliser. Once parity is accorded between fertilisers and power sector for allocation of domestic gas, the supply to the fertiliser sector may go down by 8-10 mmscmd, thereby increasing the subsidy burden for the GoI by ~Rs. 11 billion per mmscmd of gas reallocated as gas cost is a pass-through for urea. As the industry faces higher gas prices going forward, the diversion of gas and the consequent support by the GoI for the industry either by way of increase in the subsidy or the MRP would remain to be seen. 1 mmscmd gas reallocation to power increases subsidy burden by Rs. 11 billion Encouraging early agro-climatic signals provide hope of better demand in FY14; gas price increase to increase working capital requirements and increase subsidy burden on GoI
I C R A L I M I T E D Page 3 Subsidy for NPK nutrients under NBS for FY14 declines; however, currency depreciation may impact pricing: The GoI reduced the subsidy on NPK nutrients under nutrient-based subsidy (NBS) for FY14 on account of falling global prices of fertilisers as well as declining prices of raw materials. The new NBS subsidy rates should reduce the P&K subsidy burden of the GoI by 15- 18%, i.e. by Rs. 45-50 billion, depending on consumption in FY14. Retail prices of these fertilisers also witnessed decline as was mandated by the Department of Fertilisers (DoF); however, currency weakening in the recent past has threatened to increase the import prices of raw materials and fertilisers. The overall impact on the P&K industry for every one rupee depreciation against the US dollar is of the order of ~Rs. 9.85 billion. Given the squeeze in non-urea fertilisers profitability in FY13, it remains to be seen if the players are able to maintain lower prices of non-urea fertilisers in the coming months. Subsidy backlog of Rs. 360 billion carried over to FY14 from FY13 Low subsidy budgeting for FY13 and FY14 to lead to continued subsidy backlog: ICRA expects the fertiliser subsidy to continue to remain high over the next two years on account of low subsidy budgeting leading to rollover of subsidy to the next fiscal year. With the total subsidy requirement for FY13 estimated at Rs. 1020 billion and fiscal consolidation by the GoI leading to low budgeted allotment of Rs. 660 billion, ~Rs. 360 billion of subsidy will be paid from the budgeted subsidy for FY14. ICRA anticipates the total subsidy requirement for FY14 to cross Rs. 600 billion (not including the subsidy backlog for FY13) despite weak urea international prices and reduction in subsidies of non-urea fertilisers. Consequently, a part of the subsidy outflow for FY14 will be rolled over to FY15. While demand scenario is expected to be better, which should result in somewhat better profitability for the companies, delayed subsidy payments would lead to continuation of stretched cash flows, elevated capital structures as well as impact net profitability due to high interest charges in FY14. Stiff competition for greenfield / brownfield projects under the New Urea Investment Policy 2012: The announcement of the New Urea Investment Policy has spurred various incumbents as well as new players to announce their urea expansion projects. Fifteen companies have filed proposals for urea brownfield / greenfield projects with the Department of Fertilisers leading to stiff competition for the award of the projects under the scenario of constrained gas availability. ICRA believes that the award of the urea projects would be based on several considerations such as domestic and international demand-supply scenario, gas availability at reasonable prices, global urea prices, availability of land / utilities / railway siding / other facilities at existing plants to save on the fixed costs, etc. Besides, the GoI may consider approving certain coal gas-based projects (including revival projects based on coal) or overseas projects on account of uncertainty of gas availability domestically and increase in domestic gas prices. Outlook: Better demand outlook in the near term, but gas price hike negative for the industry; increases regulatory risks for the industry: In the near term, the demand scenario is expected to be better than FY13 given the assumption of normal monsoon and moderation in raw material prices (except gas). This should help P&K players recover their profitability to some extent in FY14, although complete recovery may likely take a longer time. In the long term, increase in gas prices is negative for the fertiliser industry as dependence on subsidy will increase, which exposes the industry profitability and cash flows to timeliness of subsidy receipts. How the GoI re-compensates the industry from the impact of the gas price will determine the returns from the industry in the long term. The urea industry continues to be affected by lack of revision of fixed costs and retail prices. Currency fluctuations remain a concern on account of significant import dependence. Pooling of gas or according equal priority to the power sector will further increase the dependence on imported gas and correspondingly, on subsidy. Further, the industry is awaiting approval of projects under the NUIP-2012, which will also be directly dependent on gas availability. Subsidy is expected to continue to be delayed in FY14 due to under-budgeting, which will affect net profitability of the players due to reliance on short-term borrowings. While the demand scenario looks positive, gas pricing, subsidy delays and currency fluctuations will remain the key challenges for the industry in the near-to-medium term. Decline in nutrient subsidy to lower P&K subsidy outflow by Rs. 45-50 billion in FY14
I C R A L I M I T E D Page 4 Subscribe to the Full Report for details on the following... I. Brief update of the Indian Fertiliser Sector Trends in fertiliser consumption in FY13 vis-a-vis FY12 Urea, P&K fertilisers Domestic and international price trends Impact of high systemic inventory carryover to FY14 from FY13 International prices of key inputs II. Subsidy budgeting for 2013-14 and likely impact on liquidity and profitability of fertiliser companies Decline in subsidy under nutrient-based subsidy for FY14 and expected impact on the industry Impact of decline in international prices of inputs and fertilisers III. Gas Price Increase: An Impact Analysis Impact of gas price increase on different segments within the industry Impact on subsidy outflow and industry profitability IV. New Urea Investment Policy 2012 Key parameters that the DoF may consider while awarding urea projects under NUIP-2012 V. Industry Outlook VI. Brief Coverage on the following fertiliser majors 1. Chambal Fertilisers & Chemicals Limited 2. Coromandel International Limited 3. Deepak Fertilisers & Petrochemicals Corporation Limited 4. Gujarat Narmada Valley Fertilizers & Chemicals Co. Ltd. 5. Gujarat State Fertilisers & Chemicals Limited 6. Mangalore Chemicals & Fertilizers Limited 7. National Fertilizers Limited 8. Nagarjuna Fertilizers & Chemicals Limited 9. Rashtriya Chemicals & Fertilizers Limited 10. Tata Chemicals Limited 11. Zuari Agro Chemicals Limited VII. A Primer on Subsidy Framework for Fertilisers Subsidy rates for 2013-14 and changes in subsides for various fertilisers
I C R A L I M I T E D Page 5 Please contact ICRA to get a copy of the full report CORPORATE OFFICE Building No. 8, 2nd Floor, Tower A, DLF Cyber City, Phase II, Gurgaon 122002 Ph: +91-124-4545300, 4545800 Fax; +91-124-4545350 REGISTERED OFFICE 1105, Kailash Building, 11 th Floor, 26, Kasturba Gandhi Marg, New Delhi 110 001 Tel: +91-11-23357940-50 Fax: +91-11-23357014 CHENNAI Mr. Jayanta Chatterjee Mobile: 9845022459 Mr. Leander Rayen Mobile: 9940648006 5th Floor, Karumuttu Centre, 498 Anna Salai, Nandanam, Chennai-600035. Tel: +91-44-45964300, 24340043/9659/8080 Fax:91-44-24343663 E-mail: jayantac@icraindia.com leander.rayen@icraindia.com HYDERABAD Mr. M.S.K. Aditya Mobile: 9963253777 301, CONCOURSE, 3rd Floor, No. 7-1-58, Ameerpet, Hyderabad 500 016. Tel: +91-40-23735061, 23737251 Fax: +91-40- 2373 5152 E-mail: adityamsk@icraindia.com MUMBAI Mr. L. Shivakumar Mobile: 9821086490 3rd Floor, Electric Mansion, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025 Ph : +91-22-30470000, 24331046/53/62/74/86/87 Fax : +91-22-2433 1390 E-mail: shivakumar@icraindia.com KOLKATA Ms. Vinita Baid Mobile: 9007884229 A-10 & 11, 3rd Floor, FMC Fortuna, 234/ 3A, A.J.C. Bose Road, Kolkata-700020. Tel: +91-33-22876617/ 8839, 22800008, 22831411 Fax: +91-33-2287 0728 E-mail: vinita.baid@icraindia.com PUNE Mr. L. Shivakumar Mobile: 9821086490 5A, 5th Floor, Symphony, S. No. 210, CTS 3202, Range Hills Road, Shivajinagar, Pune-411 020 Tel : +91- 20- 25561194, 25560195/196, Fax : +91- 20- 2553 9231 E-mail: shivakumar@icraindia.com GURGAON Mr. Vivek Mathur Mobile: 9871221122 Building No. 8, 2nd Floor, Tower A, DLF Cyber City, Phase II, Gurgaon 122002 Ph: +91-124-4545300, 4545800 Fax; +91-124-4545350 E-mail: vivek@icraindia.com AHMEDABAD Mr. Animesh Bhabhalia Mobile: 9824029432 907 & 908 Sakar-II, Ellisbridge, Ahmedabad- 380006 Tel: +91-79-26585049/2008/5494, Fax:+91-79- 2648 4924 E-mail: animesh@icraindia.com BANGALORE Mr. Jayanta Chatterjee Mobile: 9845022459 'The Millenia', Tower B, Unit No. 1004, 10th Floor, Level 2, 12-14, 1 & 2, Murphy Road, Bangalore - 560 008 Tel: +91-80-43326400, Fax: +91-80-43326409 E-mail: jayantac@icraindia.com
I C R A L I M I T E D Page 6 ICRA Limited An Associate of Moody's Investors Service CORPORATE OFFICE Building No. 8, 2nd Floor, Tower A; DLF Cyber City, Phase II; Gurgaon 122 002 Tel: +91 124 4545300; Fax: +91 124 4545350 Email: info@icraindia.com, Website: www.icra.in REGISTERED OFFICE 1105, Kailash Building, 11th Floor; 26 Kasturba Gandhi Marg; New Delhi 110001 Tel: +91 11 23357940-50; Fax: +91 11 23357014 Branches: Mumbai: Tel.: + (91 22) 24331046/53/62/74/86/87, Fax: + (91 22) 2433 1390 Chennai: Tel + (91 44) 2434 0043/9659/8080, 2433 0724/ 3293/3294, Fax + (91 44) 2434 3663 Kolkata: Tel + (91 33) 2287 8839 /2287 6617/ 2283 1411/ 2280 0008, Fax + (91 33) 2287 0728 Bangalore: Tel + (91 80) 2559 7401/4049 Fax + (91 80) 559 4065 Ahmedabad: Tel + (91 79) 2658 4924/5049/2008, Fax + (91 79) 2658 4924 Hyderabad: Tel +(91 40) 2373 5061/7251, Fax + (91 40) 2373 5152 Pune: Tel + (91 20) 2552 0194/95/96, Fax + (91 20) 553 9231 息 Copyright, 2013 ICRA Limited. All Rights Reserved. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided 'as is' without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. All information contained herein must be construed solely as statements of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents.

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SH-2013-Q2-1-ICRA-Fertilisers-Summary

  • 1. ICRA RESEARCH SERVICES ICRA RATING FEATURE Corporate Ratings Contacts: K. Ravichandran +91 44 4596 4301 ravichandran@icraindia.com Pranav Awasthi +91 124 4545 373 pranav.awasthi@icraindia.com Ankit Deora +91 22 6179 6337 ankit.deora@icraindia.com P h o t o C re d i t : t h e b re a k t h ro u g h . o rg IIINNNDDDIIIAAANNN FFFEEERRRTTTIIILLLIIISSSEEERRR SSSEEECCCTTTOOORRR::: JJJuuulllyyy 222000111333 UUUpppdddaaattteee The Gas Conundrum: Pricing, Subsidies & The New Urea Investment Policy
  • 2. I C R A L I M I T E D Page 2 SUMMARY FY13 was a difficult year for the industry on the demand front; encouraging monsoon signs lead to cautious optimism: FY13 was one of the more difficult years for the fertiliser industry in recent times, with demand getting affected on account of delayed and deficient monsoon and significant price increases following high input prices, decline in subsidy rates and currency fluctuations. Sales of all fertilisers except urea declined in FY13, with the overall sales volumes declining by 11% to 53.4 million metric tonnes (MMT) from 59.9 MMT in FY12. Further, delays in subsidy on account of significantly low budgeting led to high short-term borrowings and substantial increase in interest costs. Most players faced profitability constraints and cash flow pressures due to the weak demand and subsidy delays. The systemic inventory levels of non-urea fertilisers remained high through the year on account of weak offtake in FY13 and the carryover inventory will be sold at lower prices, impacting the industry profitability. Given the challenging environment, hopes of normal monsoon in 2013 lead to expectations of some recovery in FY14. On the other hand, adverse weather conditions and under-budgeting of subsidy for FY14 may lead to further weakening of the financial position of the industry in FY14. Non-urea fertiliser sales decline by 24% in FY13; urea volumes rise by 2% Gas price hike to increase urea subsidy outflow by Rs. 131 billion and affect urea industry profitability by Rs. 12 billion Rangarajan Committee recommendations on gas pricing accepted; would negatively impact the industry profitability and lead to increase in the subsidy requirements: The Cabinet Committee on Economic Affairs (CCEA) approved the Rangarajan Committee formula, which would lead to an increase in domestic gas prices to US$ 8.4/mmbtu for FY15 and to over US$ 10/mmbtu from FY16 onwards. The move will have a significant impact on the domestic fertiliser industry. ICRA Research estimates that incremental subsidy outflow for urea production would be to the extent of ~Rs. 131 billion (at a currency rate of Rs. 57/US$). Further, the profitability of the players who undertook revamp projects under the Urea Investment Policy of 2008, earning import parity price (IPP)-based realisations on the incremental urea production beyond the cut-off quantity would be impacted to the extent of ~Rs. 12.14 billion. Additionally the profitability of some of the players manufacturing non-urea fertilisers from gas will be impacted unless the GoI increases the subsidies on these fertilisers to compensate for higher production costs. Cost structure of companies producing chemicals in integrated fertiliser complexes will also be impacted due to higher gas costs. Further, the regulatory risks for the industry will be higher as dependence on subsidy would increase. In case of subsidy delays such as those witnessed in the recent past, the industry will be affected by way of increase working capital borrowings, high interest costs and pressure on the capital structures, particularly for players with already stretched balance sheets. Overall, the additional subsidy burden would also have an impact on the aggressive fiscal deficit reduction targets of GoI. The only positive aspect of the increase in gas price for the industry is that should it lead to an increase in domestic gas production, the fertiliser sector may get additional allocations as it enjoys the top priority for gas allocation. According equal priority to the power sector as fertiliser may constrain gas availability and lead to higher subsidy requirements for fertiliser sector: However, the GoI is considering a proposal whereby the power sector would be accorded equal priority as fertiliser. Once parity is accorded between fertilisers and power sector for allocation of domestic gas, the supply to the fertiliser sector may go down by 8-10 mmscmd, thereby increasing the subsidy burden for the GoI by ~Rs. 11 billion per mmscmd of gas reallocated as gas cost is a pass-through for urea. As the industry faces higher gas prices going forward, the diversion of gas and the consequent support by the GoI for the industry either by way of increase in the subsidy or the MRP would remain to be seen. 1 mmscmd gas reallocation to power increases subsidy burden by Rs. 11 billion Encouraging early agro-climatic signals provide hope of better demand in FY14; gas price increase to increase working capital requirements and increase subsidy burden on GoI
  • 3. I C R A L I M I T E D Page 3 Subsidy for NPK nutrients under NBS for FY14 declines; however, currency depreciation may impact pricing: The GoI reduced the subsidy on NPK nutrients under nutrient-based subsidy (NBS) for FY14 on account of falling global prices of fertilisers as well as declining prices of raw materials. The new NBS subsidy rates should reduce the P&K subsidy burden of the GoI by 15- 18%, i.e. by Rs. 45-50 billion, depending on consumption in FY14. Retail prices of these fertilisers also witnessed decline as was mandated by the Department of Fertilisers (DoF); however, currency weakening in the recent past has threatened to increase the import prices of raw materials and fertilisers. The overall impact on the P&K industry for every one rupee depreciation against the US dollar is of the order of ~Rs. 9.85 billion. Given the squeeze in non-urea fertilisers profitability in FY13, it remains to be seen if the players are able to maintain lower prices of non-urea fertilisers in the coming months. Subsidy backlog of Rs. 360 billion carried over to FY14 from FY13 Low subsidy budgeting for FY13 and FY14 to lead to continued subsidy backlog: ICRA expects the fertiliser subsidy to continue to remain high over the next two years on account of low subsidy budgeting leading to rollover of subsidy to the next fiscal year. With the total subsidy requirement for FY13 estimated at Rs. 1020 billion and fiscal consolidation by the GoI leading to low budgeted allotment of Rs. 660 billion, ~Rs. 360 billion of subsidy will be paid from the budgeted subsidy for FY14. ICRA anticipates the total subsidy requirement for FY14 to cross Rs. 600 billion (not including the subsidy backlog for FY13) despite weak urea international prices and reduction in subsidies of non-urea fertilisers. Consequently, a part of the subsidy outflow for FY14 will be rolled over to FY15. While demand scenario is expected to be better, which should result in somewhat better profitability for the companies, delayed subsidy payments would lead to continuation of stretched cash flows, elevated capital structures as well as impact net profitability due to high interest charges in FY14. Stiff competition for greenfield / brownfield projects under the New Urea Investment Policy 2012: The announcement of the New Urea Investment Policy has spurred various incumbents as well as new players to announce their urea expansion projects. Fifteen companies have filed proposals for urea brownfield / greenfield projects with the Department of Fertilisers leading to stiff competition for the award of the projects under the scenario of constrained gas availability. ICRA believes that the award of the urea projects would be based on several considerations such as domestic and international demand-supply scenario, gas availability at reasonable prices, global urea prices, availability of land / utilities / railway siding / other facilities at existing plants to save on the fixed costs, etc. Besides, the GoI may consider approving certain coal gas-based projects (including revival projects based on coal) or overseas projects on account of uncertainty of gas availability domestically and increase in domestic gas prices. Outlook: Better demand outlook in the near term, but gas price hike negative for the industry; increases regulatory risks for the industry: In the near term, the demand scenario is expected to be better than FY13 given the assumption of normal monsoon and moderation in raw material prices (except gas). This should help P&K players recover their profitability to some extent in FY14, although complete recovery may likely take a longer time. In the long term, increase in gas prices is negative for the fertiliser industry as dependence on subsidy will increase, which exposes the industry profitability and cash flows to timeliness of subsidy receipts. How the GoI re-compensates the industry from the impact of the gas price will determine the returns from the industry in the long term. The urea industry continues to be affected by lack of revision of fixed costs and retail prices. Currency fluctuations remain a concern on account of significant import dependence. Pooling of gas or according equal priority to the power sector will further increase the dependence on imported gas and correspondingly, on subsidy. Further, the industry is awaiting approval of projects under the NUIP-2012, which will also be directly dependent on gas availability. Subsidy is expected to continue to be delayed in FY14 due to under-budgeting, which will affect net profitability of the players due to reliance on short-term borrowings. While the demand scenario looks positive, gas pricing, subsidy delays and currency fluctuations will remain the key challenges for the industry in the near-to-medium term. Decline in nutrient subsidy to lower P&K subsidy outflow by Rs. 45-50 billion in FY14
  • 4. I C R A L I M I T E D Page 4 Subscribe to the Full Report for details on the following... I. Brief update of the Indian Fertiliser Sector Trends in fertiliser consumption in FY13 vis-a-vis FY12 Urea, P&K fertilisers Domestic and international price trends Impact of high systemic inventory carryover to FY14 from FY13 International prices of key inputs II. Subsidy budgeting for 2013-14 and likely impact on liquidity and profitability of fertiliser companies Decline in subsidy under nutrient-based subsidy for FY14 and expected impact on the industry Impact of decline in international prices of inputs and fertilisers III. Gas Price Increase: An Impact Analysis Impact of gas price increase on different segments within the industry Impact on subsidy outflow and industry profitability IV. New Urea Investment Policy 2012 Key parameters that the DoF may consider while awarding urea projects under NUIP-2012 V. Industry Outlook VI. Brief Coverage on the following fertiliser majors 1. Chambal Fertilisers & Chemicals Limited 2. Coromandel International Limited 3. Deepak Fertilisers & Petrochemicals Corporation Limited 4. Gujarat Narmada Valley Fertilizers & Chemicals Co. Ltd. 5. Gujarat State Fertilisers & Chemicals Limited 6. Mangalore Chemicals & Fertilizers Limited 7. National Fertilizers Limited 8. Nagarjuna Fertilizers & Chemicals Limited 9. Rashtriya Chemicals & Fertilizers Limited 10. Tata Chemicals Limited 11. Zuari Agro Chemicals Limited VII. A Primer on Subsidy Framework for Fertilisers Subsidy rates for 2013-14 and changes in subsides for various fertilisers
  • 5. I C R A L I M I T E D Page 5 Please contact ICRA to get a copy of the full report CORPORATE OFFICE Building No. 8, 2nd Floor, Tower A, DLF Cyber City, Phase II, Gurgaon 122002 Ph: +91-124-4545300, 4545800 Fax; +91-124-4545350 REGISTERED OFFICE 1105, Kailash Building, 11 th Floor, 26, Kasturba Gandhi Marg, New Delhi 110 001 Tel: +91-11-23357940-50 Fax: +91-11-23357014 CHENNAI Mr. Jayanta Chatterjee Mobile: 9845022459 Mr. Leander Rayen Mobile: 9940648006 5th Floor, Karumuttu Centre, 498 Anna Salai, Nandanam, Chennai-600035. Tel: +91-44-45964300, 24340043/9659/8080 Fax:91-44-24343663 E-mail: jayantac@icraindia.com leander.rayen@icraindia.com HYDERABAD Mr. M.S.K. Aditya Mobile: 9963253777 301, CONCOURSE, 3rd Floor, No. 7-1-58, Ameerpet, Hyderabad 500 016. Tel: +91-40-23735061, 23737251 Fax: +91-40- 2373 5152 E-mail: adityamsk@icraindia.com MUMBAI Mr. L. Shivakumar Mobile: 9821086490 3rd Floor, Electric Mansion, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025 Ph : +91-22-30470000, 24331046/53/62/74/86/87 Fax : +91-22-2433 1390 E-mail: shivakumar@icraindia.com KOLKATA Ms. Vinita Baid Mobile: 9007884229 A-10 & 11, 3rd Floor, FMC Fortuna, 234/ 3A, A.J.C. Bose Road, Kolkata-700020. Tel: +91-33-22876617/ 8839, 22800008, 22831411 Fax: +91-33-2287 0728 E-mail: vinita.baid@icraindia.com PUNE Mr. L. Shivakumar Mobile: 9821086490 5A, 5th Floor, Symphony, S. No. 210, CTS 3202, Range Hills Road, Shivajinagar, Pune-411 020 Tel : +91- 20- 25561194, 25560195/196, Fax : +91- 20- 2553 9231 E-mail: shivakumar@icraindia.com GURGAON Mr. Vivek Mathur Mobile: 9871221122 Building No. 8, 2nd Floor, Tower A, DLF Cyber City, Phase II, Gurgaon 122002 Ph: +91-124-4545300, 4545800 Fax; +91-124-4545350 E-mail: vivek@icraindia.com AHMEDABAD Mr. Animesh Bhabhalia Mobile: 9824029432 907 & 908 Sakar-II, Ellisbridge, Ahmedabad- 380006 Tel: +91-79-26585049/2008/5494, Fax:+91-79- 2648 4924 E-mail: animesh@icraindia.com BANGALORE Mr. Jayanta Chatterjee Mobile: 9845022459 'The Millenia', Tower B, Unit No. 1004, 10th Floor, Level 2, 12-14, 1 & 2, Murphy Road, Bangalore - 560 008 Tel: +91-80-43326400, Fax: +91-80-43326409 E-mail: jayantac@icraindia.com
  • 6. I C R A L I M I T E D Page 6 ICRA Limited An Associate of Moody's Investors Service CORPORATE OFFICE Building No. 8, 2nd Floor, Tower A; DLF Cyber City, Phase II; Gurgaon 122 002 Tel: +91 124 4545300; Fax: +91 124 4545350 Email: info@icraindia.com, Website: www.icra.in REGISTERED OFFICE 1105, Kailash Building, 11th Floor; 26 Kasturba Gandhi Marg; New Delhi 110001 Tel: +91 11 23357940-50; Fax: +91 11 23357014 Branches: Mumbai: Tel.: + (91 22) 24331046/53/62/74/86/87, Fax: + (91 22) 2433 1390 Chennai: Tel + (91 44) 2434 0043/9659/8080, 2433 0724/ 3293/3294, Fax + (91 44) 2434 3663 Kolkata: Tel + (91 33) 2287 8839 /2287 6617/ 2283 1411/ 2280 0008, Fax + (91 33) 2287 0728 Bangalore: Tel + (91 80) 2559 7401/4049 Fax + (91 80) 559 4065 Ahmedabad: Tel + (91 79) 2658 4924/5049/2008, Fax + (91 79) 2658 4924 Hyderabad: Tel +(91 40) 2373 5061/7251, Fax + (91 40) 2373 5152 Pune: Tel + (91 20) 2552 0194/95/96, Fax + (91 20) 553 9231 息 Copyright, 2013 ICRA Limited. All Rights Reserved. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided 'as is' without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. All information contained herein must be construed solely as statements of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents.