Mangalore Chemicals and Fertilizers (MCF) Ltd, a subsidiary of Zuari Agro Chemicals Ltd, an Adventz Group company, has announced the implementation of the ammonia energy improvement project.

A statement said that the project was implemented at a capital cost of over ₹400 crore and is expected to deliver significant improvement to the bottom line.

Post commissioning, the ammonia production will increase by 25 per cent, coupled with reduction in the energy consumption by about 10-12 per cent. The operating margins are expected to improve further with reduction in the energy consumption and in the long run have a sustainable positive impact on the environment, it said.

Extant policies

MCF converted its urea operation from naphtha to gas after the receipt of gas in December 2020. As per the extant policies of the government for the urea manufacturing companies, there is a mandate to reduce the energy norms further from December 2025. In the process, it has converted the vintage plant to a highly energy efficient plant at par with modern plants to comply with the mandate to achieve the target energy norm, it said.

Quoting TM Muralidharan, Chief Financial Officer of MCF, the statement said there is negative financial impact for the quarter and half year ended September 30, on account of shutdown for the project commissioning. However, with all the plant and production parameters in line with the new performance standards, the bottom line for the rest of the year is expected to show significant improvements, he said.

Established in early 70s, MCF caters to the farming community in Karnataka, Kerala, Tamil Nadu, Andhra Pradesh and Telangana.

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