GNFC plans Rs. 3,000 crore capex

The company's long-term plan is for naphtha-based tighter complex where main item will be ethylene and propylene which are always in short supplies and all downstream products

Gujarat Narmada Valley Fertilizers and Chemicals Limited (GNFC) is planning a Capex of Rs. 3,000 crore in the next three years, says D. V. Parikh, Executive Director & CFO, Gujarat Narmada Valley Fertilizers and Chemicals Limited.   

D. V. Parikh, Executive Director & CFO, Gujarat Narmada Valley Fertilizers and Chemicals Limited said, "We already have lined up a plan for Rs. 3,000 crore Capex which will be through within the next three years i.e. by 2026. We are also working on duplicating some of the existing chemicals where we are the only producers but as a long-term plan since we are debt free company, we are also under pressure how to utilize gas, so our long-term plan is for naphtha-based tighter complex where main item will be Ethylene and Propylene which are always in short supplies and all downstream products.

"Depending on the feasibility study which is underway, we are planning for a large Capex in the range of Rs. 12,000 - 15,000 crore which is a long term plan and it depends on what is the outcome of our feasibility report," commented Parikh. 

"The entire capex will result into a revenue increase and profit increase in chemical segments, nothing on the fertilizer side, so the ratio will definitely go in favor of chemicals, apart from that we are also thinking into the line of trading of fertilizer which probably will ramp up the top line and some bottom line into fertilizer front but it all depends upon the kind of opportunities because currently the imports are very dearly guised and important will be making losses even the domestic prices," added Parikh.