GSFC to invest Rs7,000 to set up integrated fertiliser and petrochemicals complex at Dahej

21-Dec-11

Gujarat State Fertiliser Corporation (GSFC) is setting up an integrated fertiliser and petrochemicals complex at Dahej, Gujarat, at an investment of Rs7,000 crore with an aim to consolidate its position in specialty chemicals. The detailed project report is ready and the process of land allocation and tendering is in progress. Project capacities will include: 1 mln of urea, 0.1 mtpa of caprolactum and 40,000 mtpa of melamine. Any major impact on the company’s topline could be visible only after four years when the complex is ready. “The advantage with GSFC is that it has an integrated complex which helps it in manufacturing caprolactum and melamine at highly cost-effective prices which helps in clocking higher margins. With yet another integrated facility coming up, GSFC’s leadership in these two chemicals will be unchallenged,” said Salil Garg, director at Fitch Ratings. According to the company’s presentation, GSFC currently holds 60% market share in caprolactum and 40% in melamine and experts say it enjoys virtual monopoly in these two chemicals.