FACT share price jumps 30% in five sessions; firm not far from achieving 'Mini Ratna' status, says official

Meanwhile, a senior official of the company, as quoted by news agency PTI, said FACT has fulfilled almost all the necessary criteria for a 'Mini Ratna' status, which in turn will help propel the company to greater heights.

The senior official said the company has fulfilled almost all the necessary criteria for the 'Mini Ratna' status. Its financial restructuring is also underway, with the completion of which it will pave the way for achieving this status.

Anupam Misra, the company's director (marketing), said that after many ups and downs in its journey, the company now deserves Mini Ratna status as the country is moving towards becoming self-reliant in every sector, including fertilisers, and FACT has everything it takes to play its role.

Misra said, "We have paid dividends to the government for the third consecutive year. We have been profit-making for seven years, and our net worth has been positive for five years."

During the years 2018-2019, our turnover was around ₹1,800 to ₹1,900 crore. Today, we are doing a turnover of over ₹5,000 crore, and our market capitalisation is around ₹50,000 crore.

"We have almost met all the criteria. There are some procedural things that are underway. This status may be granted after the financial restructuring," Misra said.

Later, speaking to PTI, Misra said, "The financial restructuring work is in progress, which will automatically pave the way for Mini Ratna status."

PSUs categories

Public sector undertakings (PSUs) under the central government are divided into three categories: Mini Ratna, Navratna, and Maharatna.

Companies achieving this status can make decisions on certain matters, such as investments and new projects, without consulting the government, up to a certain limit.

The smallest companies are classified as Mini Ratna, and the companies within this category are further divided into two sub-categories: Mini Ratna-I and Mini Ratna-II.

Mini Ratna-I companies are those that have been profitable for three consecutive years, have a pre-tax profit of ₹30 crore or more, and maintain a positive net worth for at least one of the three years.

Misra said that the company began production in 1947 and became a public sector undertaking in 1960. He added that the Government of India became the majority shareholder of FACT at the end of 1962.

The official said that from humble beginnings, FACT has become the leading fertiliser supplier in Kerala and supplies fertilisers to all South Indian states.

About FACT

Fertilisers and Chemicals Travancore (FACT) Limited is a chemicals company. The company was established in 1943 as India's first large-scale fertiliser plant in Kochi, Kerala. Operations began in 1947 under private ownership by M/s. Seshasayee Brothers.

Business Operations

Fertilisers and Chemicals Travancore Limited (FACT) produces a variety of items, including fertilisers, petrochemicals, and chemicals. The company's product lineup consists of finished goods such as ammonium sulphate, ammonium phosphate/complex fertilisers, caprolactam, and biofertilisers.

It exports caprolactam and ammonium sulphate, while its byproducts include nitric acid, soda ash, gypsum, and carbon dioxide gas. It also manufactures intermediate products like ammonia, synthesis gas, sulphuric acid, oleum, and phosphoric acid.