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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
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