History of Madras Fertilizers Ltd.
YEAR EVENTS 1966 - Madras Fertilizers limited was incorporated on 8th December, as a Joint Venture between GOI & Amoco India Incorporated of USA in accordance with the Fertilizer Formation Agreement executed on 14th May with equity contributions of 51% & 49% respectively.
- The Comp. is engaged in the manufacture of ammonia, urea and complex fertilizers at Manali, Chennai, MFL is also engaged in manufacturing bio-fertilizers & marketing fertilizers and agrochemicals under the brand name `Vijay'.
1968 - The Comp. has entered into a Purchase Agreement on March 21, for an annual requirement of 250,000 MT with Madras Refineries Limited, a Comp. held by GOI and NIOC, with relevant clauses for quality & quantity determination.
1975 - The Comp. has the unique distinction in plant safety record of continuous 3190 accident free days [8 years & 9 monthss] from 10.02.75 to 05.11.83 amount to 19.8 million man-hours of operations without any disabling injury.
- MFL has entered into a long term agreement with TNEB on August 23, for supply of Maximum Demand 22,000 KVA.
1991 - The Comp. received an award from Fertilizer Association of India for `outstanding performance in the performance in the production of phosphatic' fettilizers during the year.
1992 - MFL commissioned a Hydrolizer Stripper plant for treating effluents from ammonia & urea plants. The Comp. has also developed a green belt in the plant campus covering about 30 acres.
- Farmers Service Award for year instituted by Gandhi Gram Rural Institute, Tamil Nadu.
- The Comp. has established about 150 upcountry warehouses through the State/Central Warehousing Corporations & other private warehousing agencies.
1993 - The Comp. received the Jawaharlal Nehru Memorial National Award by International Greenland Society, Hyderabad for effective implementation of pollution control methods.
- The Comp. got the Second prize in National Energy Conservation for year.
- MFL was also successful in getting a $3 million Technical Management contract from the State Fertilizer Manufacturing Corporation in Sri Lanka.
- The Comp. increased the capacity of Ammonia Plant by 40% from 750 tonnes per day to 1050 TPD. The Comp. increased the capacity of Urea Plant by 66% from 885 TPD to 1475 TPD.
- The Comp. has entered into long term purchase contract on October, 18th, with M/s. Indian Ocean Fertilizer, South Africa for supply of phosphoric acid.
1994 - MFL has entered into a purchase agreement for an annual requirement of 2,50,000 MT of Naphtha with M/s. Madras Refineries limited a PSU situated close to MFL.
- MFL has entered into a long term supply contract with M/s. Indian Ocean Fertilizer, South Africa for supply of phosphoric acid.
- The Comp. installed dual pipe reactor system in NPK `B' train to enhance production rate, reduce fuel consumption and replacmeent of product cooler in the NPK Plant.
1995 - The Comp. has been entering into a Memorandum of Understanding with the Department of Fertilizers, Ministry of Chemicals & Fertilizers, GOI for past 4 years. The Comp. was awarded 'Excellent' rating for year 1995-96.
- The Comp. is the first PSU in the Fertilizer industry to get the ISO 9002 certification effective 1st November.
1996 - The Comp. has set up a Reverse Osmosis Plant to take care of any future water shortages.
1997 - The Comp. is entering the capital market for first time with an initial public offering [IPOs] of Rs.42.95 crores in 286.30 lakh shares is Rs 10.00 each at a premium of Rs 5.00, to raise Rs 42.95 crore from the public.
- Since April 1996, COL has entered into an agency agreement with another Mumbai-based, closely held, Ventron Chemicals Ltd [VCLs], for marketing the latter products.
- The Rs 660-crore Madras Fertilisers Ltd [MFLs] plans to set up a sulphuric acid plant, with a 400 tonne per annum capacity at its Manali plant near Chennai.
- The drop in production of NPK was due to the shutdown of the ammonia & urea plants from early March this year till the end of September. The shutdown was in connection with the hooking up of old plants with the new plants constructed at a outlay of Rs.573 crores.
- The Madras Fertilisers plant located at Manali near Chennai was closed down on November 30 amidst speculation that it was due to a gas leak. The gas, identified as ammonia, has reportedly caused some irritation & breathing problems in nearby villages & the matter was reported to Comp. officials and the Pollution Control Board [PCBs].
1998 - MFL had been assigned an MA-rating in August 1993 by the Investment Information & Credit Rating Agency on its fixed deposit programme.
- Though the revamped Ammonia/Urea Plants were commissioned during September 1997, owing to initial teething problems & the steam limitation, commencement of commercial production of Urea was delayed to March 3, when steam was available from the new PC Boiler for regular use.
- The Comp. also commenced marketing of an eco-friendly neem based pesticide viz. 'Vijay Neem' during the year under arrangement with M/s. Fortune Biotech Ltd [FBLs], Hyderabad, who commissioned their 'The State of Art' plant for manufacture of Azadirachtin.
- The MoU for year 1998-99 was signed with GOI during April.
- The Comp. was selected for prestigious 'Energy Conservation Award' for year 1996-97 by Ministry of Power, Govt. of India for implementing various energy conservation schemes.
- The Comp. received 'Best Environmental & Ecological Implementation Gold Award' from International Greenland Society for year 1997-98.
- The Comp. also received 'Best Tax Payer Award' in the category of Employer for year 1995-96 which was presented by the Hon'ble Union Minister for Finance.
1999 - The government was proposing to reduce its stake to eight per cent from 58 per cent for which the second largest shareholder, the National Iranian Oil Comp. recently gave an in-principle approval.
- Biwater Plc, which has been awarded the Bangalore water supply project, has entered the race for construction of $100 million effluent re-use plant for Madras Fertilisers and Refineries industries complex near Chennai.
- A Memorandum of Understanding [MoUs] was signed between the MFL & the Department of Fertilisers, Ministry of Chemicals and Fertilisers.
- MFL signed an MoU with Monsanto Enviro Chem System Inc. [MECSIs] in June, under which MECSI will rectify the problems afflicting the prill tower.
- The government also proposes to convert Rs 80-crore of loans into preference shares.
- MADRAS Fertilisers Ltd [MFLs] is likely to face the threat of zero inventory & consequently may shut down its plant 'temporarily for maintenance', apart from pressing in other options, if the truck strike continues for next few days.
- MADRAS Fertilisers Ltd [MFLs] will switch over from naphtha to LNG for feedstock. The State-owned entity has also made the necessary arrangements to tie up with Dakshin Bharat Energy Consortium which is headed by Siemens for feedstock supply to the project.
- MFL also proposes to set up a 25 MW captive power plant. Of this 18 MW would be used by MFL while the balance would be sold to the grid. Ideally, MFL is looking to set up this plant on a BOT basis with a lifespan of at least 10 years.
- MFL has also entered into an agreement with Madras Refineries limited Under the agreement, MRL current overdue of Rs. 55 crores would be converted into a term loan repayable in four years.
- MFL plans to reintroduce a voluntary retirement scheme [VRSs] in 2000.
2001 - Madras Fertilisers Ltd has signed Memorandum of Understanding with the Department of Fertilisers, Governmnet of India for year 2001-02.
2002
-Government of India approves for financial restructuring of Madras Fertilizers.
-Mr. Pawan Kumar Wadhwa & Mr. Suresh Chandra are ceased to be the Directors and Mr. M R Sharma is being appointed as the Directors on the Board of company.
-Mr Sukumar N Oommen appointed as the Chairman & MD of company.
2003
-National Iranian Oil Comp. grants No Objection Certificate to the government for the sell off of Madras Fertilizers Ltd.
-Mr. Vijay Singh & Mr. S M Mortazavi are ceased to be the Directors of company. Mr. Suman Swarup & Mr. Malmood vaezi are appointed as Directors.
-Financial restructuring package as follows:
a. Waiver of outstanding interest amounting to Rs 706.5 million as on March 31, 2003 on the outstanding loan of Rs 2199.7 million, drawn from GOI by MFL. b. Moratorium on principle repayment of GOI loan of Rs 2199.7 million drawn by MFL upto March 31, 2004. c. Waiver of penal interest for past defaults in repayment of principle & interest of GOI loan up to March 31, 2003.
-The stock leaps 9.8% on Acc. of financial restructuring.
-MFL gets Union government permission for second round of Financial Assistance & Capital Restructuring.
-As part of restructuring programme the government approves for reduction in interest from 15.10% to 7% on outstanding GOI loan.
-Shri P S Prasad, Nominee Director [ICICI Banks] has been appointed in place of Shri P M Kale, Nominee Director [ICICI Banks].
-ING Vysya Life signed an agreement with public sector Madras Fertiliser Ltd [MFLs] to sell its life insurance policies to farmers, using the fertiliser company dealer network in rural sector
2005
- Madras Fertilizers Ltd enters into one-time settlement agreement with ICICI Bank, which will benefit the MFL to the tune of Rs 18.95 crore as of March 31, 2005.
2008
-Madras Fertilizers Ltd has informed that 'The Government of India vide its letter No. 84/2/2007-HR-I dated July 21, 2008 has appointed Shri S Muralidharan, as Chairman and Managing Director in place of Shri G S Mangat, CMD,
