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National Fertilizers Limited

Corporate Presentation July 2013

National Fertilizers Limited 2

DISCLAIMER

This presentation is prepared by National Fertilizers Limited (the “Company” or “NFL”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment thereof. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by the Company to be construed as legal, accounting or tax advice.

This presentation has been prepared by the Company based upon information available in the public domain and its internal estimates. This presentation has not been approved and will not or may not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India. This presentation may include statements which may constitute forward-looking statements. The actual results could differ materially from those projected in any such forward-looking statements because of various factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise.

The information contained in these materials has not been independently verified. None of the Company, its Directors, the President of India acting through the Ministry of Chemicals & Fertilizers (“Promoter”) or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or implied, for the contents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Past performance is not a guide for future performance. The information contained in this presentation are current, and if not stated otherwise, made as of the date of this presentation. The Company undertakes no obligation to update or revise any information in this presentation as a result of new information, future events or otherwise. Any person / party intending to provide finance / invest in the shares / businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. By attending this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future business of the Company.

This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. This presentation is not intended for distribution or publication in the United States. Neither this document nor any part or copy of it may be distributed, directly or indirectly, in the United States. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. By participating in this presentation or by reviewing this presentation, you agree to be bound by the foregoing limitations. You further represent and agree that (i) you are located outside the United States and you are permitted under the laws of your jurisdiction to receive this presentation or (ii) you are located in the United States and are a "qualified institutional buyer" (as defined in Rule 144A under the Securities Act of 1933 (the "Securities Act")).

This document contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Company and/or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this Presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this Presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward looking statements are based.

This presentation is not an offer to sell or a solicitation of any offer to buy the securities of the Company in the United States or in any other jurisdiction where such offer or sale would be unlawful. Securities may not be offered, sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, into or within the United States absent registration under the Securities Act, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. The Company’s securities have not been and will not be registered under the Securities Act. The Company’s financial year ends on March 31.

Indian Fertilizer Scenario


Corporate Social Responsibility

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INDIAN FERTILIZER SCENARIO

Fertilizer demand forecasts: 2013-14 to 2020-21 in India (mn MT)

Fertilizer product demand & production in India (mn MT)

Source: The Fertiliser Association of India

Share of fertilizers to total dispatches – 2011-12

Source: Fertiliser Statistics 2011-12, The Fertiliser Association of India Source: Fertiliser Statistics 2011-12, The Fertiliser Association of India

Global Production & Consumption – 2010 (mn MT)

Source: Fertiliser Statistics 2011-12, The Fertiliser Association of India

26 26 28

30

19 21 22 22

FY 09 FY 10 FY 11 FY 12

Demand Prodn.

9

11 11 10

3 4

3 4

FY 09 FY 10 FY 11 FY 12

Demand Prodn.

9 8

9 10

7 8

9 9

FY 09 FY 10 FY 11 FY 12

Demand Prodn.

Urea Diammonium Phosphate Complex

36

12

8

33

17

12

China India USA

Production Consumption

17

4

9

12

8

4

China India USA

Production Consumption

Nitrogen Phosphate

NP/NPK, 20%

DAP, 18%

SSP, 7.50%

MOP, 5% AS/CAN/ACI, 1.10%

SOP, 0.10%

Urea, 48.40%

NP – Nitro phosphate NPK – Nitro Phosphate & Potash DAP - Diammonium Phosphate SSP – Single superphosphate MOP - Muriate of Potash SOP - Sulphate of Potash AS – Ammonium Sulphate CAN – Calcium ammonium nitrate ACI – Ammonium chloride

The entire requirement of Potash in the country is met through imports

32.6

33.8

34.8

40.3

12.1

12.6

13.1

15.8

4

4.1

4.3

5.2

5.7

6.1

6.4

8.3

10.4

10.9

11.4

13

.6

2013-14 2014-15 2015-16 2020-21

Urea DAP SSP MOP NPK


COMPETITIVE LANDSCAPE

Company Urea Capacity* (mn tonnes) Other Products

IFFCO 4.24 NPK, Diammonium Phosphate (DAP),

Phosphates, Complex

NFL 3.57 Bio-Fertilizers, Nitric Acid, Ammonium Nitrate

KRIBHCO 2.59 ----

RCF 2.33 NP, NPK, Ammonium Nitrate Phosphate

Chambal Fertilizers & Chemicals Ltd. 1.73 ----

Nagarjuna Fertilizers & Chemicals Ltd. 1.52 ----

Major players producing Urea in India

*Urea capacity for NFL is as of March 31, 2013 and for others it is as in November 2012

NPK – Nitro phosphate and Potassic fertilizers

Source: Fertiliser Statistics 2011-12, The Fertiliser Association of India


EXISTING POLICY FRAMEWORK

Product Policy in effect Type Effect on Pricing & Subsidy

Urea New Pricing Scheme (NPS) in place since 2003. Currently NPS-III which is being continuously extended 2010 onwards

A group pricing model based on vintage and feedstock of Urea manufacturing plants in India

• Government controlled pricing • Variable subsidy

Bio-Fertilizers No Government Policy governing Bio-fertilizers sales as such with pricing being market driven

- • Market driven • No subsidy

Industrial Products No Government Policy governing Industrial product sales as such with pricing being market driven

- • Market driven • No subsidy

Extant Government policies governing Fertilizer industry in India for existing capacities


NEW UREA INVESTMENT POLICY - 2012

Parameter Old Policy – 2008 New Policy – 2012

Urea Prices - Floor & Cap (IPP)

Fixed Floor – Cap Price of US$250-425/MT

• Floating Floor-Cap till gas price is US$14/mmbtu. • Any increase in gas price after that will warrant a change in the floor i.e. floating floor • Base Price

− Brownfield: US$285-310/MT (at gas price of US$6.5/mmbtu) − Greenfield/Revival: US$305-335/MT (at gas price of US$6.5/mmbtu) − Revamp: US$ 245-255/MT (upto gas price of US$7.5/mmbtu)

Linkage to Gas prices Vague For every US$0.1/mmbtu increase in gas price, Floor-Cap to increase by US$2/MT (US$2.2/MT for revamp projects) till gas price is US$14/mmbtu. Only floor increase post that

Urea prices - % of Import Price Parity (IPP)

90% for brownfield; 95% for revival; 85% for revamp

90% for brownfield; 95% for greenfield/revival; 85% for revamp

New Urea Investment policy governing Urea producers in India for new capacities Product Pricing linked to Import Parity Price(IPP) of Urea

• For greenfield / revival & brownfield projects, the new policy protects downside risk (high gas price & low IPP scenario)

through implicit pass through of gas prices

• It also provides a moderate upside (to the extent of RoE of 20% till gas prices of US$14/mmbtu) at high IPP and moderate to

high gas prices compared to the old policy




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National Fertilizers Limited (NFL), a Schedule ‘A’ and a Mini Ratna Category-1 Public Sector Undertaking, was incorporated on 23rd August,

1974

In April 1978, the Nangal Group of Plants of Fertilizer Corporation of India (FCI) were transferred to NFL upon reorganization of NFL-FCI

The Government of India, in 1984, entrusted the Company to execute the country’s first inland gas based fertilizer project of 0.726 mn tones

Urea capacity in Guna, Madhya Pradesh which was commissioned in 1988

NFL has a market capitalization of Rs. 16,480 mn1 and is listed on the BSE and NSE

The Government of India currently owns 97.64% of its paid up share capital

NFL has been a consistent dividend paying (up to FY12) company since inception

2nd largest producer of urea having manufacturing capacity of ~3.57 mn tonnes in FY13 with plans to increase it to 3.65 mn tonnes in FY15

Diversified portfolio with additional revenue streams from bio-fertilizers, bulk industrial products and trading


MAJOR FERTILIZER COMPANY

Strong Industry Position

• 2nd largest Urea manufacturer in

India

• Fertilizer brands of Urea – (Kisan

Urea), Augmented Urea - (Kisan

neem coated urea) etc. have high

degree of brand recall & patronage

Experienced Management Team

• Board has significant experience in

leadership roles

• Management team with significant

market and operation expertise in

fertilizers

Established Track Record

• Large existing operating facilities

• Strong market network to handle

and market huge quantities of

fertilizers

Operational Excellence

• Efficient, multi product and

integrated network of plants

facilitating operational flexibility and

scalability

• Awarded MOU Excellent Rating by

GOI for the past several years

1 as on July 12, 2013


BUSINESS STRUCTURE

Nitrogenous Fertilizers

• Urea – Manufactured & Imported

• Neem Coated Urea

SALES

98.13%

0.05%

1.37%

0.45%

EBITDA

67.86%

32.14%

Bio-Fertilizers •Nitrogenous Bio-fertilizers •Phosphorus Bio-fertilizers

Industrial Products •Nitric Acid •Ammonium Nitrate •Others

Traded Products City compost Certified seeds Agrochemicals

FY13


MAJOR UREA PLAYER

NFL manufactures and markets various fertilizers and chemicals which have a high degree of brand recall and patronage.

Urea: NFL enjoys a 14.22% market share in Urea Sector and its Urea is sold under the popular brand name “Kisan Urea”.

Neem coated Urea – Sold under the brand name “Kisan neem coated urea”, NFL enjoys about 5.4% market share.

Bio-Fertilizers – Rhizobium and Azetobactor (Nitrogen based) and P.S.B. Phosphate (Phosphorus based)

Industrial Products such as Nitric Acid, Ammonium nitrate, Sodium Nitrate/Nitrite, Anhydrous Ammonia, etc. which are used in diversified applications

Trading – NFL also trades in city compost, certified seeds, agrochemicals and other chemical fertilizers like Potassium Chloride (MOP), DAP, nitro phosphate, etc.

Product Portfolio Production Performance

Product Capacity FY10 FY11 FY12 FY13

Urea – Nangal (mn MT) 0.47 0.47 0.47 0.50 0.47

Urea – Panipat (mn MT) 0.51 0.51 0.47 0.50 0.41

Urea – Bathinda (mn MT) 0.51 0.51 0.55 0.48 0.39

Urea – Vijaipur I (mn MT) 0.99* 0.88 0.91 0.90 0.96

Urea – Vijaipur II (mn MT) 1.06* 0.95 0.96 1.01 0.96

Bio-fertilizers (MT) 600** 226 231 571 448

Sales Performance

Prime Fertilizers Unit FY10 FY11 FY12 FY13

Urea – Nangal mn MTPA 0.48 0.47 0.50 0.48

Urea - Panipat mn MTPA 0.53 0.47 0.49 0.41

Urea – Bathinda mn MTPA 0.52 0.55 0.48 0.39

Urea – Vijaipur I mn MTPA 0.89 0.92 0.91 0.95

Urea – Vijaipur II mn MTPA 0.96 0.94 1.00 0.94

Bio-fertilizers* MTPA 196 219 410 509

* Installed capacity enhanced from 0.86 mn MT each to 0.99 & 1.06 mn MT at Vijaipur-I & II respectively during FY13.

** Installed capacity enhanced from 100 MT to 600 MT during FY12. ***Quantity of Bio-fertilizers is in MT and for urea, it is in mn MT

*Quantity of Bio-fertilizers is in MTPA and for urea, it is in mn MTPA


OPERATIONAL EFFICIENCY

9.51

9.45 9.44

9.49

9.40

9.42

9.44

9.46

9.48

9.50

9.52

FY10 FY11 FY12 FY13

Urea – Nangal

9.79 9.78

9.99

10.15

9.50

9.60

9.70

9.80

9.90

10.00

10.10

10.20

FY10 FY11 FY12 FY13

Urea - Panipat

9.62 9.61

9.85

9.94

9.40

9.50

9.60

9.70

9.80

9.90

10.00

FY10 FY11 FY12 FY13

Urea – Bathinda

5.78 5.84 5.84

5.77

5.48 5.49 5.44

5.62

5.20

5.30

5.40

5.50

5.60

5.70

5.80

5.90

FY10 FY11 FY12 FY13

Urea – Vijaipur-I Urea – Vijaipur-II

Urea – Vijaipur I & II

Energy consumption at Nangal, Panipat and Bathinda has reduced by around 2-2.5 Gcal/MT post conversion of feed stock to Natural gas

Energy Gcal/MT Energy Gcal/MT


MANUFACTURING FACILITIES

Nangal plant

• Nangal Unit was commissioned with an installed capacity of 0.33 mn MT which was further revamped to 0.48

mn MT in 2001

• Accredited with ISO-9001:2008, ISO-14001 & OHSAS-18001

• Manufactures Urea, Nitric Acid, Ammonium Nitrate, Sodium Nitrate/Nitrite

• Feed stock for manufacture of Ammonia/Urea has been converted from fuel oil to Natural Gas in April 2013

Panipat plant

• Commissioned in 1979 based on gasification technology of LSHS / Fuel oil with an installed capacity of 0.5 mn MT and its feed stock was converted to Natural gas in January 2013


• Manufactures Urea

• Captive power plant of 2 x 15 MW

Bathinda plant

• Commissioned in 1979 based on gasification technology of LSHS / Fuel oil with an installed capacity of 0.5 mn MT and its feed stock was converted to Natural gas in January 2013


• Manufactures Urea

• Captive power plant of 2 x 15 MW


MANUFACTURING FACILITIES

Vijaipur Unit I & II

• Unit I was commissioned in 1988 and its capacity was revamped to 0.99 mn MT in 2012

• Unit II was commissioned in 1997 and its capacity was revamped to 1.06 mn MT in 2012

• Vijaipur Unit I received the first prize for “Excellence in Project Management” from the Ministry of Program

Implementation, GoI for executing the country’s first inland gas based fertilizer project in 1988 which was

completed well within time & in the approved cost


• Manufactures Urea, Bio-fertilizers

• Captive power plant: 3 x 17 MW

Capacity utilization

FY10 FY11 FY12 FY13

Urea – Nangal 99.1% 100.0% 105.2% 98.5%

Urea - Panipat 100.3% 91.9% 97.8% 80.9%

Urea – Bathinda 100.6% 108.1% 94.4% 77.1%

Urea – Vijaipur I 101.6% 106.0% 104.4% 97.5%

Urea – Vijaipur I 109.8% 111.2% 117.0% 96.5%

Bio-Fertilizers 226% 231% 95.2% 74.7%

Nangal Panipat Bathinda Vijaipur

Major Products

Capacity Capacity Capacity Capacity

Ammonia (MTPD)

900 900 900 3,614

Urea (MTPD) 1,450 1,550 1,550 6,261

Bio-fertilizers (MTPA)

- - - 600

Manufacturing Capacity Capacity Utilization


SIGNIFICANT MARKET SHARE & MARKETING NETWORK

Urea Market Share

Markets Industry Sales (in mn tonnes)

NFL Sales (in mn tonnes)

%

Chandigarh Zone 6.93 1.41 20

Lucknow Zone 8.81 0.98 11

Bhopal Zone 4.89 0.70 14

Total 20.62 3.09 15

No. of Dealers Across Markets

Markets No. of dealers %

Chandigarh Zone 529 28

Lucknow Zone 564 30

Bhopal Zone 784 42

Total 1877 100

NFL’s market share in bio-fertilizers is 1.4%


SUSTAINED CAPITAL EXPENDITURE TOWARDS REVAMP

Rs.14,785 mn Apr 2013 Nangal Revamp

Project

Nangal unit was first revamped when its capacity was increased to 0.47 mn MT in 2001. Recent revamp was to change the feed stock from LSHS/Fuel oil to Natural Gas which will result in the reduction of subsidy burden as well as carbon footprint.

Rs.12,928 mn Jan 2013 Panipat Revamp

Project

To change the feed stock from LSHS/Fuel oil to Natural Gas resulting in the reduction of subsidy burden as well as carbon footprint.

Rs.12,941 mn Jan 2013 Bathinda Revamp Project

To change the feed stock from LSHS/Fuel oil to Natural Gas resulting in the reduction of subsidy burden as well as carbon footprint.

Rs.6,500 mn April &

July 2012

Capacity augmentation by 16% and 23% respectively along with saving in energy consumption besides installation of Carbon Dioxide Recovery plant. Capacity was increased by 0.34 mn MTPA

Project Cost Commissioning Year Benefits Envisaged Project

Vijaipur I & II Revamp Project


EXPANSION PLANS

Project Deliverables Status

Revival of FCI Plants of Ramagundam in Joint venture with M/s EIL

Ramagundam revival

TEFR for preliminary Feasibility of the Project has been prepared

Selection of Technology Licensor is under process

Estimated Capex

Rs. 47,000 mn

Est. Completion year

2017-2018

Increase in Urea capacity by 239 MTPD i.e. 0.08

MTPA

Installation of Purge Gas Recovery(PGR) and Process Air Compressor at Vijaipur Unit II

Consultant has been appointed for selection of LSTK Contractor

Rs.800 mn 2014-2015

New SSP Plant of capacity of 0.3 MTPA

Installation of SSP Plant at Panipat

Techno-economic Feasibility Study is under study by Consultant.

Rs. 800 mn 2015-2016

New Heavy Water Plant Installation of Heavy Water Plant at Vijaipur

Discussions are underway with Heavy Water Board (HWB). Due diligence to be carried out by HWB.

- -

New Water Soluble Fertilizers Plant at Nangal

Water Soluble Fertilizer Plant

Study is being carried out - -


TECHNICAL CAPABILITIES

• Strong in house team of qualified professionals to oversee

commercial activities and operations.

• Frequently scouting for new technologies and adopting best

practices.

• Has a strong vendor arrangement ensuring timely availability at

competitive prices.

• Operations team capable to maneuver plant loads with high

skill and efficiency meeting product mix demand/ requirements

Procurement & Operations Research & Development

• Research & Development Division has developed Neem Coated Urea

and NFL is the first company in the fertilizer industry to be permitted

by Government to manufacture Neem Coated Urea

• Successfully developed liquid bio-fertilizers on a pilot basis

• Developed techniques to re-use off gases vented in Urea plant in

Vijaipur-II as fuel in CPP boilers

• Currently evaluating the effects of method of application of bio-

fertilizers, city compost and Pseudomonas Fluorescence on plant

growth and of City compost and Zinc sulphate on wheat crop trials

on use of blended water soluble fertilizers

• Excellent team of experienced engineers and managers

conceptualizing expansion plans from concept to commissioning

• The team prepares project reports containing detailed estimates,

implementation schedules and techno-economic viability of

projects

• Project Management team employs state of art project

management tools for effective time, cost and resource

management

Project Conceptualization, Evaluation & Commissioning Human Resources

• Technically and professionally qualified employees

• Very cordial industrial relations scenario

• HR policies focus on all round development of all employees and

imparts regular training in various functions like Marketing,

Finance, Operations , Health & safety etc.

• High employee productivity – value added per employee of INR

2.29 Mn in FY13

• Total employee strength of 4,254 employees as on May 31, 2013

32

34

36

32

BV

0.25 0.37

1.7

3.03

29.95% 30.00% 30.13%

0.00%

FY10 FY11 FY12 FY13

D/E Dividend Payout


FINANCIAL PERFORMANCE

EBITDA (Rs.mn.) & margins

PAT (Rs.mn) over the years

Turnover (Rs.mn.)

Net worth (Rs.mn.)

Revenue Breakup

Debt to Equity; Dividend Payout; BV

51

,00

0

58

,04

0

73

,40

5

67

,46

7

FY10 FY11 FY12 FY13

3,6

50

3,0

20

3,4

20

42

4

7.17%

5.20%

4.66%

0.63%

0.0 0%

1.0 0%

2.0 0%

3.0 0%

4.0 0%

5.0 0%

6.0 0%

7.0 0%

8.0 0%

0

500

1,0 00

1,5 00

2,0 00

2,5 00

3,0 00

3,5 00

4,0 00

FY10 FY11 FY12 FY13

EBITDA % Margin

1,7

20

1,3

90

1,2

70

-1,7

07

3.37%

2.39% 1.73%

-2.53% -3.00%

-2.00%

-1.00%

0.0 0%

1.0 0%

2.0 0%

3.0 0%

4.0 0%

-2,000

-1,500

-1,000

-500

0

500

1,0 00

1,5 00

2,0 00

FY10 FY11 FY12 FY13

PAT % Margin

15

,82

0 1

6,7

20

17

,54

4

15

,83

7

10.87% 8.31% 7.24%

-10.78%

-15.00%

-10.00%

-5.00%

0.0 0%

5.0 0%

10. 00%

15. 00%

14, 500

15, 000

15, 500

16, 000

16, 500

17, 000

17, 500

18, 000

FY10 FY11 FY12 FY13

Net Worth RONW

FY13 turnover was lower on account of plant shutdown for shifting of feed stock to Natural Gas

thereby reducing Urea production and in turn, sales

There was a loss in FY13 due to lower EBITDA, provision for purchase tax liability for prior period

under exceptional item and increase in interest expenditure mainly due to delay in receipt of subsidy

EBITDA in FY13 was lower on account of higher energy consumption vis a vis lower production/sales and also

due to increase in market price of outsourced ammonia for production of industrial chemicals

Net worth dropped in FY13 due to negative PAT in FY13

28% 28% 24% 24%

67% 68% 73% 74%

5% 4% 3% 2%

FY10 FY11 FY12 FY13

Fertilizer Fertilizer Subsidy Others

‘Others’ include revenue from sale of bio-fertilizers, industrial products and trading




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CSR Focus

Health & Hygiene

Women empowerment

Child education

Water conservation & stop dams

Social forestry

Promote non-conventional energy


CORPORATE SOCIAL RESPONSIBILITY

• NFL’s CSR goals aim at providing basic utilities like health & hygiene services to needy, educating children, empowering

women, green initiatives and improving the quality of life of its stakeholders towards nation building

• The approach is holistic and oriented towards community and stakeholders

• CSR model is integrated into its business strategy




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He has over 30 years of experience spanning various fields of conceptual design, project design and project

management among others

He holds a degree in Chemical Engineering and Masters degree in Business Administration

He also holds the position of Chairman & Managing Director in RCF Ltd.

He is also the Chairman of Fertilizer Association of India and Member of SCOPE (Standing Conference of

Public Enterprises).

Mr. R.G. Rajan,

Chairman & Managing Director

She has an extensive experience spanning over 31 years in the field of Financial Management and is a Chartered Accountant by profession

She is responsible for formulating financial strategies and planning and was earlier associated with SAIL

She was also a member of SCOPE (Standing Conference of Public Enterprises) and was on the Board of Directors of Fertilizer Association of India

Ms. Neeru Abrol,

Director (Finance)

Capt. Kaul is a Master Mariner, a Post Graduate in Public Administration and a Diploma in Logistics Management

Prior to joining NFL, Capt. Kaul was Executive Director, Container Corporation of India (CONCOR)

He has been a member of the Administrative Staff College of India, Institute of Rail Transport and is a member of the CII National Exports Committee and the Board of Directors of Fertilizer Association of India

Capt. Pavan Kumar Kaul,

Director (Marketing)

He hold a degree in Chemical Engineering from NIT Surathkal, Karnataka

He is also the technical director at RCF Ltd. and in his long career spanning more than 30 years, he has worked

in various capacities in Technical Services, Ammonia, Sulphuric acid, Concentrated Nitric Acid plants and in

development of projects for RCF Ltd.

Mr. C.M.T. Britto,

Director (Technical)

Shri Satish Chandra is a senior IAS officer of 1986 batch

Shri Chandra joined the Board of the Company on 27 October, 2008 and held the additional charge as Chairman & Managing Director, NFL from 31 March, 2011 to 23 December, 2011 He is also a Director on the Board of Directors of Madras Fertilizers Limited, Indian Potash Limited, OMIFCO and Fertilizer and Chemicals Travancore Limited

Mr. Satish Chandra (IAS),

Govt. Nominee Director


BOARD OF DIRECTORS


Shri Suresh Chandra Gupta is a senior IAS Officer of 1986 batch.

Before joining IAS, Mr. Gupta worked for Development & Financial Institutions like IDBI, LIC, PNB and UTI Presently, he is Joint Secretary with Department of Fertilizers, Government of India

Mr. S.C. Gupta (IAS),

Govt. Nominee Director

He is a Practicing Chartered Accountant in Visakhapatnam

He has over 30 years extensive experience in the field of Banking, Taxation, and Financial Management and joined as Independent Director in the company on 6 May, 2011

Mr. Munikoti Niranjana Rao,

Independent Director

A senior IAS officer of 1976 batch, he retired as Secretary in Government of India in the Ministry of Chemicals & Petrochemicals in April, 2011.

During his 35 years in the service, he had held various important positions both in Central and State Governments. He has experience of more than two decades in policy formulation, monitoring and implementation of matters related to industrial development and infrastructure sector.

Mr. M. Raman,


He is an IPS 1973 batch officer (Retd.) and held various important positions with the Central and State

Government including ex-Director General, BPRD, CRPF, ITBP.

He has experience in development of new institutions focusing on public importance

Mr. Vikram Srivastava,


BOARD OF DIRECTORS

Panipat Unit has been declared winner of prestigious National Level Safety Award “Shreshtha Suraksha Puraskar” by

National Safety Council, Mumbai (India) under the scheme NSCI Safety Awards 2012 among manufacturing Sector (Group-

B). This is the highest level Safety Award given to any large scale Chemical Industry for this Scheme (2012)

Panipat Unit has been awarded “Shreshtha Suraksha Puraskar” for the year 2011 from National Safety Council, Mumbai

(India), in the manufacturing sector of Chemical & Chemical products.

Panipat unit was awarded the National Level Safety Award “FAI Award for excellence in Safety in Nitrogenous and Complex

Fertilizer plant” as a runner Up for 2011-12 from FAI and was presented by Shri SK Jena, Hon’ble Minister of State for

Chemicals & Fertilizers, Government of India

ICWAI National Awards in 2007, 2008, 2009 & 2010 for excellence in Cost Management for units and the Company


AWARDS & ACCOLADES


STRENGTHS, OPPORTUNITIES & RISKS

Strengths

• Second largest producer of urea in the country with 14.2% market share.

• Above 100% Urea capacity utilisation for the past 8 years. • A Mini-Ratna Schedule A Category Company. • Projects of over Rs. 47,000 mn under various stages of

implementation • NFL is the first fertilizer manufacturer in the country, which has

developed technique for coating of normal prilled Urea with neem oil on a large scale.

External Risks

• Urea policy related issues including those governing subsidies and its release to companies

• Fluctuations in global raw material prices & natural gas prices • High cost of domestic gas and its allocation or shortage of gas • Agro-climatic conditions can have an impact on the performance

of the Company • Stringent terms in gas supply and transportation contracts and

their operability • Recession in international chemical market leading to un-

remunerative domestic prices • Resistance by farmers to price hike in fertilizers • Large scale of operations in international chemical market may

lead to lower pricing power

Opportunities

• Wider acceptability of neem coated urea in the market offers an opportunity to augment production of neem coated urea.

• Government of India on nomination basis has allotted NFL & Engineers India Limited (EIL) and NFL & Steel Authority of India Limited (SAIL) for revival of closed units of FCIL at Ramagundam and Sindri respectively. These ventures will provide the Company an opportunity to establish itself as a market leader in urea.

• The switchover of feedstock from fuel-oil to Natural Gas at their plants will reduce cost of production and result in energy savings in the coming years

• Venturing in to non-urea fertilizers by manufacturing/trading

Internal Risks

• Stagnant Urea Sales (in the range of 3.24 mn MT (FY08) to 3.39 mn MT (FY12))

• Over dependence on Urea • Marketing network mainly concentrated in Northern and Central

India • Current financial position

national fertilizers · pdf filenational fertilizers limited (nfl), a schedule ‘a’...

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