Mangalore Chemicals & Fertilizers Limited

Located in Karnataka, the only fertilizer company under UB's management has effected an amazing turnaround to become one of the most efficient and profitable naphtha based urea producers in the country. In 1990, the Government of Karnataka had selected the UB Group to take over Mangalore Chemicals & Fertilizers (MCF)- a " potentially sick " unit with accumulated losses in access of 600 million rupees. The careful nurturing and astute management under UB a ensured the remarkable turnaround. Since last six years, the company has recorded profits every year and cash flows have sufficed for repayment of accumulated debts. With an investment of over Rs.400 Crores, the Company is the only large scale fertilizer project in the State of Karnataka. The Company achieved a turnover of Rs. 614 crores, up 9% over the previous year.

Designed and commissioned by Humphreys & Glasgow Limited, London, a leading international firm in the fertilizer field and their Indian associates, today the Company boasts an enormous manufacturing capacity including 2,17,800 MT of Ammonia and 3,80,000 MT of Urea. Backed by both, quality and quantity, Mangala Urea has developed a strong brand equity among farmers in the Southern states of India.

This despite the continuous plant related problems faced throughout the year and the third consecutive year of poor monsoons. Urea production was at 88% of revised capacity while Di-Ammonium Phosphate [DAP] was at 52% of achievable capacity. The manufacture of Ammonium Bi-Carbonate [ABC], though at a record level, was limited by the stoppages in the Ammonia / Urea plants during the year .DAP suffered from poor demand both in Kharif and Rabi due to sever drought conditions throughout our marketing territory coupled with the low rate of concession announced by GOI from time to time Sale of Muriate of Potash [MOP] and Zinc Sulphate increased by 25% and 40% respectively over the last year. Zinc Sulphate marketed by the Company is of the highest quality and has received excellent farmer acceptability

The relatively outstanding results were achieved through the implementation of the ERP solution SAP R/3 project. The implementation included Production, Plant Maintenance, Materials, Sales & Distribution, Finance, Costing, HR & Payroll and Business Intelligence modules. The numerous advantages derived were: a single integrated system across the Company, data integrity, enhanced operational efficiencies and improved MIS for better decision making. Besides, there have been economies of scale from integration, real-time systems and enforced information discipline across locations. From commencement to implementation, the project was completed in record time with smooth transition from the legacy systems.

MCF is poised to diversify by setting up a Rs. 360 crore Metallurgical Coke plant along with a 28mw co-generation unit. While a 4.5-tonne Metallurgical Coke facility accompanied by a power station will be set up in Phase I (2005), Phase II will see the entire capacity being doubled.

The Company is a part of the UB Group with Group shareholding of 30%
  • Careful nurturing and astute management under UB ensured remarkable turnaround.
  • One of the most efficient and profitable naphtha based urea producers in the country.
  • Brands- MangalaUrea and DAP have a strong brand equity.