Chambal Fertilisers vs. Coromandel International, Gujarat State Fertilizers & Chemicals (GSFC), Rashtriya Chemicals & Fertilizers (RCF)

Summary

Chambal Fertilisers, Coromandel International, Gujarat State Fertilizers & Chemicals (GSFC), and Rashtriya Chemicals & Fertilizers (RCF) are major players in India’s fertilizer industry. While Chambal excels in urea production, Coromandel leads in phosphatic fertilizers. GSFC and RCF have diversified portfolios, including industrial chemicals. Each company has unique strengths in product range, geographical reach, and financial performance.


1. Business Model & Segments

Chambal Fertilisers and Chemicals Ltd. (Chambal)

  • Primarily a urea producer, catering to India’s large agricultural sector.
  • Operates three modern urea plants in Rajasthan, contributing significantly to India’s domestic fertilizer supply.
  • Minimal diversification into non-fertilizer sectors.
  • Revenue largely dependent on government subsidies due to urea price controls.

Coromandel International Ltd. (Coromandel)

  • A leader in phosphatic fertilizers, complex fertilizers, and crop protection chemicals.
  • Operates in fertilizers, specialty nutrients, crop protection, and retail agri-services.
  • Owns multiple manufacturing units in Andhra Pradesh, Tamil Nadu, and Gujarat.
  • Strong presence in phosphatic fertilizers (DAP, NPK) and increasing focus on specialty fertilizers.

Gujarat State Fertilizers & Chemicals Ltd. (GSFC)

  • Diversified portfolio: Urea, complex fertilizers, specialty fertilizers, and industrial chemicals.
  • Produces chemicals like caprolactam, melamine, and fibers for industries beyond agriculture.
  • Government-backed with a stable supply and demand structure.

Rashtriya Chemicals & Fertilizers Ltd. (RCF)

  • One of India’s oldest public sector fertilizer companies, producing urea, complex fertilizers, and industrial chemicals.
  • Diversified into industrial chemicals and bio-fertilizers.
  • Operates from Maharashtra, focusing on Western India’s agricultural demand.

Key Takeaway:

  • Chambal focuses on large-scale urea production.
  • Coromandel leads in phosphatic fertilizers and crop protection.
  • GSFC & RCF have a broader product base, including industrial chemicals.

2. Market Capitalization & Financials (As of Latest Available Data)

Company Market Cap (₹ Cr) Revenue (₹ Cr) Net Profit (₹ Cr) ROE (%) Debt-to-Equity
Chambal Fertilisers ~ ₹18,000 Cr ~ ₹22,000 Cr ~ ₹1,800 Cr ~18% Moderate
Coromandel International ~ ₹35,000 Cr ~ ₹24,000 Cr ~ ₹2,000 Cr ~20% Low
GSFC ~ ₹7,000 Cr ~ ₹10,000 Cr ~ ₹800 Cr ~12% Low
RCF ~ ₹6,500 Cr ~ ₹12,000 Cr ~ ₹750 Cr ~10% High

Key Takeaway:

  • Coromandel has the largest market cap, followed by Chambal.
  • Chambal & Coromandel have higher ROE, reflecting better profitability.
  • RCF has high debt, making financial stability a concern.
  • GSFC has a diversified revenue stream but lower profitability.

3. Strengths & Weaknesses

Company Strengths Weaknesses
Chambal Fertilisers Largest private-sector urea producer; strong distribution in North India. Dependent on urea subsidies; minimal diversification.
Coromandel International Strong phosphatic fertilizer and crop protection business; low debt. Dependent on raw material imports; impacted by global commodity prices.
GSFC Diversified chemicals and fertilizers portfolio; government support. Lower profitability; limited geographical expansion.
RCF Strong PSU backing; extensive industrial chemical range. High debt; competition from private players.

Key Takeaway:

  • Chambal dominates in urea, Coromandel in phosphates, GSFC & RCF in chemicals.
  • Chambal & RCF depend on government subsidies, while Coromandel and GSFC have diversified risk.

4. Investors & Ownership

Company Promoter Holding Institutional Investors Public Holding
Chambal Fertilisers ~60% (KK Birla Group) ~20% ~20%
Coromandel International ~57% (Murugappa Group) ~25% ~18%
GSFC ~37% (Govt. of Gujarat) ~35% ~28%
RCF ~75% (Govt. of India) ~10% ~15%

Key Takeaway:

  • Chambal & Coromandel are private-sector leaders with strong promoter backing.
  • GSFC & RCF are government-controlled, offering stability but less agility.

5. Future Strategies & Growth Prospects

Company Future Strategies
Chambal Fertilisers Expanding urea capacity; improving energy efficiency.
Coromandel International Investing in specialty fertilizers, organic growth, and backward integration in raw materials.
GSFC Strengthening industrial chemicals segment; increasing specialty fertilizers.
RCF Modernizing plants; diversifying into green hydrogen and bio-fertilizers.

Key Takeaway:

  • Chambal is reinforcing its urea strength, while Coromandel is diversifying further into premium fertilizers.
  • GSFC & RCF are focusing on industrial chemicals and sustainability.

6. Customers & Market Position

Company Primary Customers Market Focus
Chambal Fertilisers Farmers, government urea buyers Northern & Central India
Coromandel International Farmers, agri-retailers Southern & Eastern India
GSFC Farmers, industrial clients Gujarat, Maharashtra
RCF Farmers, industrial chemical buyers Western India

Key Takeaway:

  • Chambal & Coromandel dominate in fertilizers, but GSFC & RCF serve industrial clients too.
  • Chambal strong in North, Coromandel in South, RCF & GSFC in West.

Conclusion

  • Chambal Fertilisers: A urea leader, strong in North India but highly dependent on government subsidies.
  • Coromandel International: The most diversified and financially strong, with leadership in phosphatic fertilizers.
  • GSFC: A balanced mix of fertilizers and chemicals, but less profitable.
  • RCF: A government giant with high debt but strong industrial chemical reach.

For investors or stakeholders, Coromandel appears the most resilient, while Chambal remains a urea powerhouse. GSFC & RCF are stable but less dynamic.

Date Updated:

February 10, 2025

Value Investing

Vinati Organics stands tall in profitability and niche dominance, while Gujarat Fluorochemicals leads in clean-tech and fluoropolymer scale. Aarti Industries combines breadth and MNC contracts, showing margin recovery. Camlin Fine is smaller but cost-effective with potential in food antioxidants. Valuations and investor preferences diverge based on segment risk and growth themes.

Value Investing

HUL leads India’s FMCG space with premium branding and operational strength. Dabur shines with Ayurveda focus and rural trust. Godrej Consumer emphasizes innovation and global expansion. Jyothy Labs grows rapidly in fabric and home care. This strategic comparison reveals which FMCG stock holds the best value and growth potential in 2025.

Value Investing

Sumitomo Chemical India leads with strong growth and margins backed by its Japanese parent. Dhanuka Agritech offers efficient domestic exposure. Sharda Cropchem thrives in exports with an asset-light model but faces regulatory risks. Excel Industries remains a niche player with stable returns but limited scale. Each caters to distinct investor profiles.