Press release
PPL’s Performance: 2012-13

The overall agricultural scenario for India remained stable during 2012-13 with the total food grain production standing at 250.1 million tonnes. This was almost at par with the production figure of 2011-12. However, the fiscal year 2012-13 has been the most difficult time ever for the Phosphatic Fertilizer industry in more than a decade. A deficient and delayed monsoon in many parts of the country, high differential in retail price for Urea and DAP due to skewed Government policy contributed to contraction of phosphatic fertilizer demand by almost 35%. The depreciation of the rupee, volatile international markets and delays in subsidy payments by the Government further added to the problems of the industry.

Sales :

PPL sold 8.57 Lakh MT of its own manufactured DAP and complexes and 4.3 Lakh MT of Gypsum during 2012-13.

Besides, as part of its traded products it sold 0.57 Lakh MT of imported MOP, 5.87 Lakh MT of imported DAP & Complexes, 0.049 Lakh MT of Crop Protection Chemicals, 0.005Lakh MT of Water Soluble Fertilisers under the brand name of NAVRATNA. In the years to come, we propose to increase our geographical footprint, increase our market share, and introduce new products.

Production :

In spite of problems in raw materials availability during the year and glut in market, PPL produced a total of 9.42 Lakh MT of fertilizers comprising of 3.1 Lakh MT of DAP and 6.32 Lakh MT of complexes of NPK.

Among intermediary products, Sulphuric Acid and Phosphoric Acid production was 6.1 Lakh MT and 2.1 Lakh MT respectively.

Financials :

In the financial year 2012-13, with a total turnover of Rs.5272.61 crores, the company made Rs.131.74 crores as Profit Before Tax and Profit After Tax of Rs.103.59 crores as compared to Rs.259.26 crores as PBT and PAT of Rs.177.71 crores in 2011-12. While PBT decreased by 49.2% compared to previous year, PAT decreased by 41.7% compared to previous year. Main reasons for the drop was increase in interest costs due to delay in subsidy payment, decreased realization and glut in the market.

New Projects and Future Outlook :

Paradeep Plant Site is abuzz with project activities relating to the up-coming “2000 MT per day sulphuric acid Plant”. The Rs. 600 crore projects is due for commissioning by July ‘14

The phospho-gypsum based Zypmite (a plant nutrient) project has been commissioned which is under stabilization.

Our Community Initiatives :

Our efforts continued unabated in developing areas in the neighborhood particularly in two Gram Panchayats - Bagadia and Mangarajpur. In the first phase, we are shaping four villages viz. Bagadia, Jhimani, Pareswarpur, Santara as model villages with an aim to cover more villages in the Panchayats subsequently. Since the commencement of the initiative till date, we have facilitated building of 850 Individual Household Latrines, 200 water connection points, 26 community bathrooms, 12 school Toilets, facilitated training of 363 boys & girls in Computer education leading to MSUP certification, 75 girls in home nursing training, 203 girls in vocational Tailoring training.12991 people have been covered in 62 health camps and 746 students of Class X have been provided with supportive coaching till date.

The Navratna Krishi Vikas Project, started in 2005, has so far covered 347 villages in Odisha, Chhattisgarh, Jharkhand, Bihar and Uttar Pradesh to improve knowledge in scientific agricultural practices and other income generating occupations.

Many dealers of PPL have joined hands to take up these efforts in their respective surrounding villages by sharing 50% of the expenses with PPL. In our missionary efforts for “Healthy Soil Wealthy Nation”, a state of the art static Soil Testing Laboratory has been established at Bhubaneswar with facilities for testing nutrient and micro-nutrients. Farm advisory services are rendered on the test results with crop specific fertilizer recommendation. PPL is presently operating 6 Mobile Soil Testing Vans in Public Private Partnership (PPP) mode with Govt. of Odisha in 6 districts of Odisha (Puri, Jajpur, Bhadrak, Gajapati, Nawarangpur and Sambalpur). The Farmer Training School continues to provide specialized training to farmers from across the country. PPL is working on a Farmer advisory service mechanism through IT intervention. Apart from above, PPL has been chosen by Department of Agriculture, Government of Odisha as an implementation partner for Bringing Green Revolution to Eastern India (BGERI) scheme with Government of Odisha.

Other achievements and recognition :

Several awards were received by PPL during the year, which include “FAI Best Video Film Award” by Fertilizer Association of India (FAI) for the film “ Parivartan (The Change)”, Best Theme Stall Award at CII-Enterprise Odisha-2012 as well as the Best CIO100 Award for 2012.

During the year we have received excellent support and co-operation from the State and Central Governments, the Media and all other stake holders and we thank all of them for their support and guidance.