GNFC Approves INR 450 Crore Ammonium Nitrate Melt Expansion, Total Capex Pipeline Reaches INR 2,800 Crores

Gujarat Narmada Valley Fert & Chem (GNFC) has announced a significant expansion of its Ammonium Nitrate Melt (AN Melt) production capacity, as part of a broader capital expenditure plan totaling INR 2,800 crores. The company's Board of Directors has approved a new 163,000 tonne AN Melt II project worth INR 450 crores, marking a substantial increase in GNFC's chemical production capabilities.

Expansion Details

The AN Melt II project is part of GNFC's strategic growth initiative, which includes several other major projects:

Project	Capacity	Investment (INR Crores)
AN Melt II	163,000 tonnes	450.00
Weak Nitric Acid	Not specified	1,420.00
Power Plant (Dahej)	Not specified	613.00
Ammonia Loop Expansion	50,000 tonnes	331.00

This expansion will nearly double GNFC's AN Melt capacity, bringing the total to approximately 338,000 tonnes per annum when completed.

Financial Performance

GNFC reported improved quarterly results, driven by:

Reduced input costs
Better volumes in Weak Nitric Acid (WNA), AN Melt, and Technical Grade Urea (TGU)
Increased production of ammonia, reaching 155,000 tonnes in Q2

However, the company faced margin pressure in aniline and acetic acid due to import competition and methanol sourcing issues.

Future Prospects

GNFC is actively considering additional investments in bisphenol A and polyol projects, with a potential investment of INR 7,000-8,000 crores. These projects aim to capitalize on the growing market for these chemicals, which is expanding at around 7% annually.

The company is awaiting a potential revision in fixed costs and energy norms for urea production from the Department of Fertilizers, which could help reduce losses in the fertilizer segment.

Challenges and Opportunities

The recent Iran sanctions have impacted methanol sourcing, affecting acetic acid production.
GNFC is exploring options to improve profitability in its fertilizer segment.
The company is working with management consultants to identify cost-saving measures across procurement, operations, and digital deployment.

GNFC's expansion plans and strategic investments demonstrate its commitment to growth in the chemical sector, while also addressing challenges in its fertilizer business. The company's focus on diversification and capacity enhancement positions it to capitalize on market opportunities and improve overall performance in the coming years.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.20%	-2.36%	-5.51%	-9.35%	-20.65%	+97.88%

Gujarat Narmada Valley Fert & Chem (GNFC) has announced changes in its leadership and governance structure. The company has issued a postal ballot notice seeking shareholder approval for two key matters: the appointment of Shri Manoj Kumar Das, IAS as Director and Chairman, and the ratification of remuneration for the cost auditor.

Key Details of the Appointment

Aspect	Details
Appointee	Shri Manoj Kumar Das, IAS
Position	Director and Chairman
DIN	06530792
Approval Method	Postal Ballot
Final Approval	Subject to shareholder approval

The appointment of Shri Manoj Kumar Das as Director and Chairman follows the earlier approval by the Board of Directors through a Circular Resolution passed on November 4, as per the recommendation of the Nomination and Remuneration Committee.

Cost Auditor Remuneration

GNFC is also seeking shareholder approval to ratify the remuneration of ₹1.10 lakh for the cost auditor, M/s. KG Goyal Associates.

E-Voting Process

GNFC has initiated an e-voting process for these matters:

Start Date: December 3
End Date: January 1
Results Expected: By January 5

Regulatory Compliance

This postal ballot notice and the e-voting process demonstrate GNFC's commitment to regulatory compliance and shareholder engagement. The company continues to adhere to the requirements set by the Securities and Exchange Board of India (SEBI) and other regulatory authorities.

Upcoming Investor Conference Call

As previously announced, GNFC has scheduled an investor/analyst conference call for November 13, at 4:00 PM IST to discuss the company's Q2 financial performance. Key participants from GNFC's management team will include:

Mr. D. V. Parikh, Executive Director & Chief Financial Officer
Mr. Nitin Patel, Executive Director
Mr. Rajesh Pillai, Company Secretary & Compliance Officer

These developments, including the leadership change, cost auditor remuneration approval, and the upcoming financial discussion, underscore GNFC's commitment to transparent communication with its stakeholders and adherence to regulatory standards in corporate governance.