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:

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.

Gujarat Narmada Valley Fert & Chem (GNFC) has announced a significant change in its leadership. The company's Board of Directors has approved the appointment of Shri Manoj Kumar Das, IAS, as the new Director and Chairman, subject to shareholder approval.

Key Details of the Appointment

The appointment was made through a Circular Resolution passed on November 4, 2025, following the recommendation of the Nomination and Remuneration Committee. GNFC has confirmed that Shri Manoj Kumar Das is not debarred from holding the office of Director by the Securities and Exchange Board of India (SEBI) or any other authority.

Regulatory Compliance

In adherence to regulatory requirements, GNFC has made this announcement in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also submitted the necessary details as mandated by SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Upcoming Investor Conference Call

In a separate announcement, GNFC has scheduled an investor/analyst conference call for November 13, 2025, at 4:00 PM IST. This call aims to discuss the company's Q2 FY25-26 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

Investors and analysts interested in participating can access the call through the provided primary access number or dial-in numbers.

This leadership change and the upcoming financial discussion underscore GNFC's commitment to transparent communication with its stakeholders and adherence to regulatory standards in corporate governance.