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 has successfully completed its postal ballot process, with shareholders approving both key resolutions with overwhelming majority. The company announced the voting results on January 2, confirming the appointment of Shri Manoj Kumar Das, IAS as Director and Chairman, and ratification of cost auditor remuneration.

Postal Ballot Process Overview

The e-voting process was conducted from December 3 to January 1, with CS J. J. Gandhi serving as the scrutinizer. Out of 280,985 total shareholders on record date (November 28), significant participation was recorded across all categories.

Resolution 1: Chairman Appointment Results

The appointment of Shri Manoj Kumar Das, IAS (DIN: 06530792) as Director and Chairman received strong support across all shareholder categories with 96.75% approval.

Resolution 2: Cost Auditor Remuneration

The ratification of cost auditor remuneration for M/s. KG Goyal Associates received even stronger support, with 99.99% approval rate.

Voting Participation Analysis

The postal ballot witnessed substantial participation with 61.41% of total shares being voted. Promoter and promoter group showed complete participation with 100% voting, while public institutions demonstrated high engagement at 87.15% participation rate.

Regulatory Compliance

The postal ballot process was conducted in full compliance with the Companies Act, 2013, SEBI (LODR) Regulations, 2015, and MCA circulars. The company dispatched notices via email on December 1 and published public advertisements in Business Standard (English) and Loksatta Jansatta (Gujarati) on December 2.

The successful completion of this postal ballot process demonstrates GNFC's commitment to transparent governance and shareholder engagement, with both resolutions now formally approved and effective from January 1.