Chambal Fertilizer - The largest player in the urea industry in India
Chambal Fertilizers - Company overview & Urea industry synopsis in India
Twitter Handle: @shuchi_nahar
Company Overview
Incorporated
in 1985 and based in Kota, Rajasthan, Chambal has the largest installed urea
capacity of 3.00 million tonnes in the private sector in India. Chambal is the
largest private player in the urea industry in India in terms of production
capacity. Its share in the total domestic urea production has increased to
13.4%, driven by the ramp-up of its Gadepan-III plant. The company has maintained
its share in the non-urea fertilizers segment.
The company has sold 0.93 million tonnes of DAP/muriate of potash/nitrogen phosphorus
potassium during the first 9 months of fiscal 2022, down from 1.60 million
tonnes in the corresponding period of the previous fiscal because of the global
shortage of the fertilizers amidst the Russia-Ukraine war. Its significant
market share in north India is supported by its strong Uttam Vir brand and
robust distribution network. The company also trades in complex fertilizers and
pesticides. The urea plants are near the Hazira-Bijapur-Jagdishpur gas
pipeline, which ensures sufficient gas availability.
Revenue
trend past 5 years
Urea growth potential
The
consumption of Urea is the highest among all the fertilizers used in India. Urea
is the most important crop nutrient which plays a vital role in ensuring food
security in the country. The Urea industry comprises manufacturers from the public, co-operative and private sectors. The Urea manufactured in the country
is not sufficient to meet its total demand. Hence, part of the demand for Urea
is met through imports.
Other
Products
The Company strives to provide all agri-inputs
under one roof to farmers. Apart from manufacturing Urea, the Company markets
other fertilizers and agri-inputs such as Di- Ammonium Phosphate (DAP), Muriate
of Potash (MOP), and Ammonium Phosphate Sulphate (APS), different grades of NPK fertilizers,
Sulphur, micro-nutrients, and agrochemicals.The company has an established market position and superior operating efficiency of its
fertilizer plants. Operating performance remains comfortable, with plants
operating at over 100% utilization and within the prescribed energy norms. The profitability of the urea division will remain immune to the rise in feedstock
(natural gas) prices as this is compensated through subsidy receipts from the
government. The global shortage of complex fertilizers, which has led to a
spike in their prices, could affect profitability in the medium term.
Profit
margin growth trend
Government
subsidies to boost the growth
DAP,
MOP, APS and NPK fertilizers are covered under the Nutrient Based Subsidy
(“NBS”) policy of the Government of India. The subsidy on these products is
paid by the Government of India to the Company based on the different nutrients
in these fertilizers and the Company determines the sale prices of these
products as per NBS. In view of this, the prices of these products are guided
by market forces. DAP, APS, and NPK fertilizers are manufactured in the
country as well as imported by various players.
While
there has been an unprecedented rise in raw material prices (especially pooled
gas prices) and imported fertilizer rates, the additional subsidies (Rs 60,593
crore added to the initial budget of Rs 79,530 crore) announced by the
government should restrict the increase in subsidy arrears for this fiscal. A
similar addition in the subsidy budget is expected for fiscal 2023, to compensate
for the rise in raw material and imported fertilizer prices. Timely
announcement and disbursement of the additional subsidies remain key rating
sensitivity factors.
High
dependence on imports
MOP
is not produced in India and the country is fully dependent on imports. The
Company imports these fertilizers from international manufacturers and
producers and sells them in its marketing territory under its brands.
The
production and imports of these products vary due to factors such as demand,
pipeline inventories, pricing of the products in the international market, cost
of raw material, etc. Sulphur and micronutrients are purchased from
manufacturers in India and imported from international manufacturers. In the case
of agrochemicals, the technical grade agrochemicals are produced by
multinational companies as well as domestic producers.
Chambal
sold 2.62 million tonnes of urea and 0.93 million tonnes of DAP/muriate of
potash/nitrogen phosphorus potassium during the first nine months of fiscal
2022 (2.73 million tonnes and 1.60 million tonnes, respectively, in the
corresponding period of the previous fiscal). While the uneven distribution of
rainfall caused a marginal decline in urea sales, the global shortage of
complex fertilizers impacted sales volume in the domestic market.
Points
to concern
Further,
the Urea manufactured by the Company is preferred by the customers in its
marketing territory due to its good product quality and strong brand image of the
Company. Hence, the Company does not foresee much impact on its business due to
the capacity addition by new players in the Urea sector. The demand variation due
to changes in monsoon pattern, volatility in the prices of DAP, MOP, APS, and NPK
fertilizers, and variation in the foreign exchange rates are a few challenges
that the Company faces in its business related to non-Urea fertilizers. The
Company continuously evaluates these factors and strives to mitigate them
through dynamic sourcing and pricing of the products and appropriate hedging of
foreign exchange risk.
Roadmap
ahead
The
recent rise in feedstock (natural gas) prices will not impact the operating
profitability of the urea production division as it is passed through entirely,
to be compensated through subsidy receipts from the government. For
Profitability against production above-reassessed capacity, wherein the incentive
is capped at import parity price of urea plus incidental charges, to also not
be majorly impacted on considering that the imported urea prices are also high.
However, the global shortage of complex fertilizers, which has led to a spike
in prices, may have a mid-term impact on overall profitability.
Gadepan-III
plant has enabled the Company to increase its market share in Urea and thus
enhanced its competitive strength due to more efficient operations on account
of economies of scale. After the commissioning of the Gadepan-III plant, the Company
has started focusing on strengthening its reach in existing marketing
territories and expanding in new geographies in the eastern, western, and southern
parts of India through a concerted brand-building approach.
A
few more plants are expected to be operational to increase the indigenous
supply of Urea during the next 1-2 years which shall reduce the demand-supply gap
in the country. However, these plants are in eastern and southern parts of India
whereas the core marketing territory of the Company is the Northern and Central
parts of India.
The Company has an established brand and sizeable market share in the DAP and MOP fertilizers and making inroads in the NPK fertilizers space. The Company plans to replicate its success in the existing marketing territory in new marketing territories and increase its reach in the existing marketing territories which offers an opportunity for the Company to enhance its sales volumes and market share.
Shareholding Pattern
Twitter Handle: @shuchi_nahar
Disclaimer: The information provided on Shuchi Nahar’s Weekend Blog is for educational purposes only. I am not SEBI Registered please ask your investment advisor before taking any actions. The articles may contain external links, references, and a compilation of various publicly available articles. Hence all the authors are given due credit for the same. All copyrights and trademarks of images belong to their respective owners and are used for Fair Educational Purpose only.
Good work.
ReplyDeleteI just learned a lot from this post and first things first, I’m going right now to work on my blog design, which I know isn’t too appealing.
ReplyDeleteWhat is Third-Party Pharma Manufacturing?
I have read your blog really so nice and helpful for me Thanks. There are a number of diverse activities involved in financial services and to let people know about all of them, advertising agencies play a very important role in online campaigns or ads and strategies, etc. There are ad agencies that specialize in financial services, like Arro Financial communication services, which offer a lot of services to their clients like public relations, branding, advertising, strategic positioning, content generation, and videos. As they say, they are a marketing communication agency specializing in financial services.
ReplyDeleteSimply wanna comment that you have a very decent website, I enjoy the style it actually stands out.
ReplyDeletePsychiatric Companies
Neuropsychiatry Companies
Investment option today, Investors and traders wish to invest in cryptocurrency for many reasons to acquire a stunning return in future.
ReplyDeleteComplete information about "how to withdraw from Coinbase to Paypal. We have mentioned the simple steps to withdraw from Coinbase to paypal.
ReplyDeleteGreat Information! Checked it out and left my thoughts. If you're interested in Link Bank Account to Cash App or Professional Crypto Customer Care Advisor feel free to explore Crypto ATM Expert's insights.
ReplyDeleteTo Transfer Money From Crypto.com To Bank Account, first ensure that you have completed the necessary KYC (Know Your Customer) verification on the Crypto.com platform. Next, link your bank account to your Crypto.com account by navigating to the "Accounts" section, selecting "Fiat Wallet," and then choosing "Withdraw." Enter the amount you wish to transfer and select your linked bank account. Confirm the transaction details and initiate the transfer. The funds should be deposited into your bank account within a few business days, depending on your bank's processing times.
ReplyDeleteIf your coinbase account restricted, it could be due to various reasons, such as unusual account activity, failure to complete verification, or violating Coinbase's terms of service. To resolve this issue, log into your account and check for any notifications or requests for additional information. Completing any pending verifications or updating your information might help restore access. If the issue persists, contact Coinbase support for assistance. They can guide you through the necessary steps to lift the restriction and regain full access to your account.
ReplyDeleteA Transaction in Coinbase Wallet involves sending or receiving cryptocurrency directly through the wallet interface. Users can seamlessly manage their assets, execute trades, or interact with decentralized applications (dApps). The wallet provides a secure and private environment for transactions, ensuring that users maintain control over their private keys and funds. With Coinbase Wallet, users can easily access their digital assets and perform transactions without needing to rely on third-party services, making it a versatile tool for managing and using cryptocurrencies.
ReplyDeleteYou'll first need to link a common bank account to both apps to transfer money from Venmo to Cash App. Transfer the desired amount from your Venmo balance to your linked bank account. Once the funds appear in your bank account, you can then transfer them from the bank to your Cash App balance. This process typically takes one to three business days for each transfer. While there isn't a direct way to transfer money between Venmo and Cash App, a linked bank account provides an efficient workaround.
ReplyDeleteTo recover your MyEtherWallet (MEW) account, you must use your private key, recovery phrase, or Keystore file. If you have these, visit the MEW website, select "Access My Wallet," and follow the prompts. These recovery details are necessary for access to be recovered, as MEW cannot restore accounts for security reasons. Always store your recovery information securely.
ReplyDeleteTo Transfer Money From Crypto.com To Bank Account, first, sell your crypto for fiat in the app. Then, go to the "Transfer" option, select "Withdraw," choose "Fiat," and pick your bank account. Enter the amount to transfer and confirm. The funds should arrive in your bank within 3-5 business days.
ReplyDeleteIf your coinbase balance not showing, first check if the app or website is up to date. Ensure you're connected to the internet and try refreshing the page or restarting the app. If the problem persists, clear your browser cache or app data. You can also check Coinbase's status page for outages or contact their support for further assistance.
ReplyDeleteIf you're experiencing a "No Connection" coinomi no connection, it typically indicates a problem with your internet or the app's servers. To resolve this, ensure you have a stable internet connection and try restarting the app. If the problem persists, check for app updates or visit Coinomi's support page for further assistance.
ReplyDeleteTo Withdraw Money from Crypto DeFi Wallet, connect the wallet to a compatible decentralized exchange (DEX). Select the cryptocurrency you wish to convert to fiat, execute the swap, and transfer the converted funds to a centralized exchange. From there, you can withdraw the money to your bank account. Always double-check wallet addresses to avoid errors.
ReplyDeleteIf your Coinbase Account Under Review, it may be due to suspicious activity, verification issues, or security concerns. During this period, account access might be limited. To resolve the issue, check your email for instructions from Coinbase, and provide any requested information. Contact Coinbase support for further assistance, and ensure your account details are up to date.
ReplyDeleteIf your coinbase balance not showing, it could be due to a temporary glitch, account synchronization issues, or an update delay. Ensure you're using the latest app version and try refreshing the page or logging out and back in. If the problem persists, contact Coinbase support for further assistance to resolve the issue and access your funds.
ReplyDeleteIf your Coinomi wallet is experiencing a "coinomi no connection" issue, ensure your internet connection is stable and try restarting the app. Clear the app's cache, update to the latest version, or check if the Coinomi server is down. If the problem persists, consider switching networks or reinstalling the app for a fresh start.
ReplyDeleteTo Transfer Money From Crypto.com To Bank Account, first, sell your cryptocurrency for fiat currency within the app. Once the funds are in your fiat wallet, select the "Withdraw" option and choose your linked bank account. Enter the amount you'd like to transfer, confirm the details, and submit the request. The transfer process typically takes 2-5 business days, depending on your bank’s processing times.
ReplyDeleteIf your Coinbase Account Under Review, it typically means the platform is conducting a routine check to ensure compliance with its security policies. Unusual activity or verification requirements can trigger reviews. During this period, certain account functions may be temporarily restricted. Contact Coinbase support for more information or wait for the review process to be completed.
ReplyDeleteIf your coinbase balance not showing, it could be due to a temporary glitch or an issue with account synchronization. Ensure that your app or browser is updated, and try refreshing your account. If the problem persists, contact Coinbase support to investigate the issue and restore your balance visibility quickly.
ReplyDeleteTo Fix Internal JSON-RPC Error in Metamask first try clearing your browser's cache or the app’s cache if you're using the mobile version. Ensure MetaMask and your browser are updated to the latest versions. If the issue persists, switch networks or reset your MetaMask account under settings. This won’t affect your funds but may resolve the error.
ReplyDeleteTo Withdraw Money from Crypto DeFi Wallet, first, connect the wallet to a centralized exchange that supports your cryptocurrency. Transfer the desired amount from your DeFi wallet to the exchange, where you can sell your crypto for fiat currency. Once sold, initiate a withdrawal to your linked bank account. Always double-check transaction details to avoid errors.
ReplyDeleteA Coinbase Account Under Review typically means that the platform is conducting a routine check to ensure compliance with regulatory standards or to verify account information. This process may temporarily restrict access to certain features, such as withdrawals or trading. Reviews can be triggered by unusual activity, large transactions, or verification updates. It's advisable to monitor your email for updates from Coinbase during this period.
ReplyDeleteIf Coinomi shows "coinomi no connection available, " check your internet connection and ensure it’s stable. Try switching between Wi-Fi and mobile data or restarting your device. If the issue persists, clear the app’s cache or reinstall it. Make sure Coinomi is updated to the latest version. Lastly, check if the Coinomi servers are experiencing downtime or maintenance.
ReplyDeleteTo Transfer Money from Venmo to Cash App, link the same bank account to both apps. First, withdraw the funds from Venmo and put them into your bank account. Once the transfer is complete, open Cash App and add the same amount from your linked bank account. This indirect method allows you to move money between the two platforms efficiently.
ReplyDeleteTo Deposit GBP in Coinbase account, first, log in and navigate to the "Portfolio" section. Select "Deposit" next to the GBP wallet, and choose the "Bank Deposit" option. You'll receive Coinbase’s bank details and a reference number. Use these details to initiate a bank transfer from your UK bank account. Ensure you include the reference number to avoid delays. Bank transfers typically take 1-3 business days, and once processed, your GBP will be available in your Coinbase account for trading or withdrawal.
ReplyDeleteCoinbase Account Restrictions can occur for various reasons, including violations of platform policies, suspicious activity, or issues related to account verification. Restrictions may limit your ability to buy, sell, or withdraw cryptocurrency. Common causes include incomplete identity verification, failed transactions, or security concerns such as multiple failed login attempts. To resolve restrictions, ensure your identity verification is up to date, review any emails from Coinbase regarding the restriction, and follow the instructions provided. In some cases, you may need to contact Coinbase support for further assistance in lifting the restrictions.
ReplyDeleteTo Transfer Money from Venmo to Cash App, you’ll need to link a mutual bank account to both apps. First, transfer your funds from Venmo to your linked bank account by selecting “Transfer to Bank” in Venmo and choosing the bank account. Once the funds are available in your bank account, open Cash App, tap “Add Cash,” and transfer the desired amount from your bank to Cash App. Unfortunately, there’s no direct transfer option between Venmo and Cash App, so using a bank account is necessary.
ReplyDelete