Mumbai: Rashtriya Chemicals & Fertilizers (RCF) expects sales to rise 20-25% to about Rs7000 crore in FY12 on higher imports, its top official said on Tuesday.
“Last year, our domestic production and sales did increase but the imports were lower. This year, we expect sales to grow on more and more imported products,” R.G. Rajan, chairman and managing director, told a conference call.
Last week, the firm posted a 38% rise in March quarter net profit.
The state-run company plans to expand urea manufacturing capacity at its Thal plant in Maharashtra and at Talcher in Orissa at a total investment of Rs12,000 crore.
“Each of the expansion projects would raise our urea capacity by 1.15 million tonnes per year,” he said.
Both units are expected to start commercial production over a period of three to five years, he said adding state-run GAIL India and Coal India were joint venture partners for the Talcher expansion.
The state-run fertiliser maker may also set up a single super phosphate (SSP) unit at a cost of Rs300 crore at its Thal plant, Gautam Sen, director-finance, said.
“Demand for complex fertilisers is growing and it has better margins. Hence, we are considering a plant for SSP,” Sen said.
On the status of import deals for muriate of potash (MOP), Rajan said, deals for FY12 were not signed due to higher prices.
“We have MOP stocks till August,” he added.
At 12:42 pm, shares of Rashtriya Chemicals & Fertilizers were trading at Rs80.70, up 0.06% in a weak Mumbai stock market.