MCF implements ammonia energy project at Rs 400 cr

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, MCF Chief Financial Officier T M Muralidharan said.Post commissioning, ammonia production will increase by 25 per cent while energy consumption will be reduced by about 10-12 per cent.

Saroj Poddar controlled Adventz group company Mangalore Chemicals & Fertilizers Limited (MCF) on Friday announced successful implementation of the ammonia energy improvement project at a capital outlay of over Rs 400 crore that aims to deliver significant improvement to the company's bottom line.

MCF, a subsidiary of Zuari Agro Chemicals Limited, converted its urea operations earlier from naphtha to gas in December 2020.

“On account of the shutdown to implement the project, there was a negative financial impact for the half year ended September 30, 2022. 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,” MCF Chief Financial Officier T M Muralidharan said.

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

''As per the extant policies of the government for 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 of the Department of Fertilizers to achieve the target energy norm,'' the statement read.

The existing plants were studied by renowned technology providers in the field of ammonia and the project was completed with the support of marquee global and domestic suppliers, the company said.

MCF is a leading manufacturer of urea and other complex fertilisers.