The public sector Fertilisers and Chemicals Travancore Limited (FACT) expects an operational profit of around ₹450 crore during the current fiscal on the wings of an expected full year of caprolactam production, the favourable market conditions as well as more than full capacity utilisation of its various plants.
The fertiliser company’s production is expected to be about 25% to 30% more than the installed capacity, FACT sources said on Thursday. The company made an operational profit of around ₹350 crore last year.
The production of caprolactam was restricted to six months last year. It was resumed in September last year after a gap of nine years. Around ₹500-crore worth additional turnover is expected during the current year on account of the expected full year of production, the sources added. Along with caprolactam, other products are expected to raise the annual turnover during 2022-23 to more than ₹5,500 crore.
“The general production and operational trends have been good, and we expect significant increase in business during the year,” Kishor Rungta, chairman and managing director of the company, said.
One of the significant developments for the company is that it has recorded positive net worth after 2011-12. Trade union leader and FACT Workers’ Organisation president N.K. Premachandran, MP, described it as a “great comeback” for the fertiliser company.
He said it was important that FACT was maintained in the public sector. The company had a historically important place in the food security scene, and that both the Central and State governments support it.
While praising the leadership of the FACT management led by Mr. Rungta and workers for their dedication, he appealed to the State government to do away with K-VAT on natural gas, as the rise in price of feedstock posed a threat to caprolactam production.
