Analysis: The Fertilisers And Chemicals Travancore Limited

What does The Fertilisers And Chemicals Travancore Limited do?

• Fertilizers & Chemicals Travancore Ltd (FACT) is a Government of India public sector undertaking under the Ministry of Chemicals and Fertilizers.
• Headquartered in Eloor, Udyogamandal, Kerala, FACT produces fertilizers, chemicals, and related products.
• Celebrated 75 years of fertilizer production in 2022-23, transitioning from a loss-making entity to a profit-making company.

• Primary production of nitrogenous and phosphatic fertilizers (e.g., Factamfos, Ammonium Sulphate).
• Caprolactam production for industrial and chemical applications.
• Joint venture in building materials via FACT-RCF Building Products Limited (FRBL).

Growth thesis

Fertilizers & Chemicals Travancore Ltd produces nitrogen-based fertilizers and industrial chemicals for agriculture and industry. Core segments include urea, ammonia, and related derivatives, with operations in manufacturing, distribution, and exports. Growth hinges on cyclical agricultural demand, government fertilizer subsidy policies, and global commodity price trends. Over 2-3 years, the business is expected to remain stable amid moderate domestic farm activity and export opportunities, though margins may fluctuate with raw material costs. Key execution risks involve managing energy costs and maintaining operational efficiency amid volatile input prices.

Research report

companyname: The Fertilisers and Chemicals Travancore Limited ticker: FACT sector: Fertilisers and Chemicals The Fertilisers and Chemicals Travancore Limited (FACT) is a Government of India enterprise incorporated in 1943. It began production of Ammonium Sulphate in 1947 with an installed capacity of 10,000 MT per annum at Udyogamandal, near Cochin. In 1960, FACT became a Kerala State PSU, and on 15 August 1962, the Government of India became the major shareholder. The company is a multi-divis...