Nagarjuna Fertilizers (NFCL) plans brownfield expansion

Nagarjuna Fertilizers (NFCL) plans brownfield expansion

Nagarjuna Fertilizers and Chemicals Limited is planning to invest Rs 5000 crore to implement a brownfield expansion of its Kakinada fertilizer facility over the next three years. The company is setting up a 1.3 million tonne per annum brownfield urea project. Hyderabad-based Nagarjuna group have a turnover of Rs 20,000 crore. NFCL, the flagship of Nagarjuna group that was set up in 1986-87, manufactures and markets plant nutrients under the Nagarjuna Brand.

This expansion will take up the total capacity of the Kakinada fertilizer plant to around 3 million tonnes per annum. The Kakinada facility currently has two plants making urea and ammonia with a total capacity of 1.6 million tonnes per annum and is spread over 1100 acres of land. The new expansion facility is slated to come up within the existing complex.

The company plans to raise funds for the expansion project through a combination of debt, equity and internal accruals. It would require a 2.4 mmscmd gas allocation for this expansion project by year 2014-15 and has applied for the necessary approvals for the same.