S. Sankarasubramanian
Managing Director and CEO
Notable Quotes
We have been diversifying our raw material sources through long-term contracts with various countries beyond Saudi and Qatar, like Southeast Asian countries, African countries, and Canada, and sometimes from Russia and China as well.
These are very extraordinary times, very difficult to look at margin at this point of time. It doesn't make sense even to look at whether product margin or the phosphate value gap.
We strongly believe during this period of challenge and crisis, alternate solutions like nanotechnology can make a huge impact and can save the country from the huge foreign exchange outflow as well as help the farmers to have the right nutrient application for the crop.
Despite all these headwinds, the business delivered a resilient performance supported by very competitive sourcing of key raw materials, operational efficiencies, and our plants have been operating at 100% capacity utilization.
We do feel that the sulfur price increase is not sustainable. Sulfur has always used to be a disposal issue. I think it is a phenomenon of short supply and excess demand, which should get moderated as we move into the first quarter of next year.
Our game plan will be to expand our market territories and synergize our operations with NACL also. We'll be looking to increase our formulation business and domestic market by at least 20%-25% going year-on-year from now on.
Our aim would be to continue what they've been doing well and try and see how do we restore the margins what they've been making two years before.
Nano DAP is going to be a game changer for the industry as a whole. If everything happens in the way we expect, we do expect replacement of 2 million tons of DAP in another two to three years' time.
We should be able to sustain that margin.
We have got approval during this quarter to expand our capacity at Kakinada by another million ton.
Our effort would be to substitute this DAP import through Nano. And we have a few, at least 2 million tons, to get replaced in at least 2-3 years time frame.