Gujarat Narmada Valley Fertilizers & Chemicals Ltd Share Price – NSE  / BSE

Chemicals, Small Cap

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) has entered into a Memorandum of Understanding (MoU) with INEOS Acetyls International, United Kingdom (INEOS) on 20 November 2024.

The MoU is signed to form a 50:50 joint venture company which will carry on the business in relation to construction and operation of world scale acetic acid (AA) plant in India, together with a joint marketing agreement for the sale and distribution of AA, manufactured by the joint venture company in India and such other matters as may be agreed from time to time. The joint venture company agreement will be executed later.

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GNFC will hold 50% stake in JVCo. and the balance 50% stake will be held by INEOS.

The MoU has signed to form a JVCo. which will carry on the business in relation to construction and operation of world scale acetic acid (AA) plant in India, together with a joint marketing agreement for the sale and distribution of AA, manufactured by the JVCo. in India and such other matters as may be agreed from time to time. The JVCo. agreement will be executed later.

The companies will explore the feasibility to build a new world scale, 600kt Acetic Acid plant at GNFC's site in Bharuch, Gujarat, India.

Pankaj Joshi, MD GNFC said that India imports ~85% of its annual requirements of Acetic Acid. The proposed JV is expected to achieve objective of ‘Make in India’. Domestication of Acetic Acid will serve existing demand and provide required boost to other evolving downstream demands saving precious foreign exchange outgo.

David Brooks, CEO INEOS Acetyls, said, “We are delighted to make this announcement today, working with our partner GNFC on this new project. India is recognised as being a key growth market for our products over the coming years and this investment will increase much needed locally produced acetic acid, reducing the country’s reliance on imports.”

GNFC is a joint sector enterprise promoted by the Government of Gujarat and the Gujarat State Fertilizers & Chemicals (GSFC). GNFC has extended its profile beyond fertilizers through a process of horizontal integration. Chemicals/petrochemicals, energy sector, electronics/ telecommunications and information technology form its corporate portfolio.

The company’s consolidated net profit declined 42.3% to Rs 105 on 7.8% increase in revenue from operations to Rs 1917 crore in Q2 FY25 over Q2 FY24.

The scrip rose 0.58% to settle at Rs 561.15 on Tuesday, 19 November 2024.

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Net profit of Gujarat Narmada Valley Fertilizers & Chemicals declined 42.31% to Rs 105.00 crore in the quarter ended September 2024 as against Rs 182.00 crore during the previous quarter ended September 2023. Sales declined 7.84% to Rs 1917.00 crore in the quarter ended September 2024 as against Rs 2080.00 crore during the previous quarter ended September 2023.

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Gujarat Narmada Valley Fert. & Chem. has revised the meeting of the Board of Directors which was scheduled to be held on 11 November 2024. The meeting will now be held on 13 November 2024.

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