Gujarat State Fertilizers & Chemicals Share Price

Gujarat State Fertilisers and Chemicals Ltd (GSFC) is one of India’s largest manufacturers of fertilisers and agrichemicals. It was incorporated in 1962 with an objective to make farmers in Gujarat self-sufficient in fertilisers. After a structured diversification strategy, later GSFC forayed into the industrial chemicals segment.

The company’s plants went into fertiliser production in 1967. GSFC had set up the first DAP fertiliser complex at Jamnagar in Gujarat.

Since then, it has pioneered the manufacturing of DAP complex fertiliser in India. GSFC also holds the title of being the largest producer of Nylon-6, the largest manufacturer of caprolactam, the only manufacturer of melamine and the only manufacturer of HX Sulphate Crystal in India.

As of March 2023, promoters held 37.84% stake in the company. Foreign institutional investors owned 21.36%, domestic institutional investors controlled 2.15%, while the Indian public/non-institutional investors held the remaining 0.94% stake in GSFC.

The company’s market capitalisation stood at ₹11,400 crore as of January 5, 2024. Gujarat Fertilisers share price has gone up by over 243% in the past three years.

Business Operations

GSFC has four manufacturing facilities in Vadodara, Sikka and Kosamba in Gujarat. Its product mix includes more than 24 brands ranging from fertilisers to petrochemicals, chemicals, industrial gases, plastics, fibres and other products.

GSFC also has three subsidiary companies – GSFC Agrotech Ltd, Gujarat Port and Logistics Co. Ltd and Vadodara JalSanchay Pvt. Ltd. It has four associate companies – Vadodara Enviro Channel Ltd, Gujarat Green Revolution Co. Ltd, Gujarat Data Electronics Ltd and Karnalyte Resources INC.

Vadodara unit:

GSFC’s integrated complex at Vadodara has been designed and structured in a way that it is almost self-sustained by using the by-products generated by its group of fertiliser plants.

The unit houses plants manufacturing DAP, ammonia, melamine, phosphoric acid, sulphuric acid, urea, caprolactam, methanol, ammonium phosphate sulphate, ammonium sulphate and nylon-6.

Sikka unit:

GSFC’s DAP plant at Sikka produces DAP from merchant grade phosphoric acid and ammonia. The plant was originally designed to make DAP, but has the flexibility to manufacture other products as per market requirement. Fibre Unit: GSFC’s fibre unit is located near Kosamba Railway Station on the Ahmedabad-Mumbai rail route. This unit was established by Gujarat Nylons Ltd, a company promoted by the Surat Weavers Association and the Gujarat Industrial Investment Corporation Limited (GIIC). The unit was taken over by GSFC in April 1990 and renamed GSFC - Fibre Unit.

Polymer unit:

GSFC’s polymer unit is the country’s leading supplier of acrylic products from virgin monomers produced by the company in its plants. The unit offers a wide range of acrylic monomers and polymers.

Financial Highlights

The company’s consolidated revenue stood at ₹11,445 crore for the year ended March 31, 2023, as against ₹9,178 crore in the preceding financial year. Operating profit, or EBIDTA, rose to ₹1,617 crore in FY23 compared with 1,312 crore in FY22. Profit before tax (PBT) was ₹1,568 crore in FY23 as against ₹1,305 crore in FY22. Profit after tax (PAT) stood at ₹1,293 crore in FY23 compared with ₹891 crore in FY22.