FCC

In India, there is a need for 1 MT of ammonium nitrate

2023-01-11

Give us a brief introduction to the company. Also, explain the company’s offerings.
Smartchem Technologies is a 100 per cent subsidiary of Deepak Fertilizers and Petrochemicals. The business has a production facility in Taloja and its corporate headquarters in Pune. We operate in the mining chemicals and industrial chemicals business verticals. We manufacture gases and acids in industry chemicals that are used in the pharmaceutical business. Additionally, we offer specialised fertilisers for the agricultural industry.

We produce technical ammonium nitrate in the mining chemicals industry, which is used to make explosives. These explosives are then used in blasting various minerals, such as coal, limestone, and iron ore, and other infrastructure-related areas. Power generation also makes use of ammonium nitrate.

Our two business sectors help the country flourish by supplying infrastructure and energy. We concur with the PM's goal of an Atmanirbhar Bharat. In order to support these efforts, we are attempting to expand our capabilities.

What are the various challenges by your company?
We are having more difficulty as a nation becoming self-sufficient. Power is more and more in demand. However, the necessary activity is still incomplete due to several restrictions. Not being able to do as much blasting is one of the limitations.

In India, there is now a need for about 1 MT of ammonium nitrate. The combined production capacity of the four Indian producers is only 7,00,000 to 7,50,000 tonne. The distance is vast. This chemical is imported for this reason. However, there are numerous obstacles in the way of imports.

Shipping problems have been widespread as a result of Covid and the ongoing Russia-Ukraine conflict. There has been a limitation on the supply of ammonium nitrate. The business community is working to find solutions. Various participants are increasing their capacities and even debottling. In order to add an additional 90,000 tonne, even we are debottling.

Performance-wise, how was the year 2022 for the company? What are your plans for 2023?
The year 2022 was a mixed year. It had a strong start to the quarter. The mining activity was then minimal during rainy seasons. The demand for the product decreased as a result. The second quarter was considerably less than the first. But all together, we did quite well compared to the year before.