Equity research report on Nagarjuna fertilizers and chemicals limited; ICFAI Hyderabad

Abstract

Southern Petrochemicals Industries Corporation Limited (SPIC) was incorporated in 1969 as a joint venture between M.A.Chidambaram & associates and Tamil Nadu Industrial Development Corporation (TIDCO). SPIC is primarily engaged in the manufacturing and sale of fertilizers with Urea and DAP accounting for more than 60 % of turnover. The company with a turnover above Rs 1000 Crores is the thirteenth largest in country. Its Urea plant went on stream in 1975. The DAP facilities were set up in the year 1983 and the production capacity was upgraded in 1966. It has terminals at Tuticorin to handle imported phosphoric acid and sulphuric acid. The company is planning to set up a Urea plant in Bahrain . The company has diversified into Shipping, Project management , Heavy Chemicals , Petrochemicals ,Electronics , Drugs and Pharmaceuticals and Bio-technology and Tissue culture . The promoters MAC group has a 16-company conglomerate headed by Ashwin Muthiah. It has exposure to diversified interests. The group had failed in its venture into Standard Motors and Automobile Products of India Ltd., which were later referred to BIFR.