RCF Awards ₹1,000-Crore Contract to L&T for Fertiliser Plant

Rashtriya Chemicals and Fertilizers Limited (RCF) experienced a notable rally in its share price on October 10, 2024, as shares surged by 8.01 per cent, reaching an intraday high of ₹184.90. This comes after the company announced the awarding of a contract valued at over ₹1,000 crore to the L&T Energy Hydrocarbon division of Larsen & Toubro (L&T).

In a formal statement filed with the stock exchange, RCF disclosed the board’s approval on October 9, 2024, for a purchase order with Larsen & Toubro Ltd. The contract involves the construction of a 1,200 MTPD (DAP basis) complex fertiliser plant on a lump-sum turn-key (LSTK) basis at RCF’s Thal facility in Maharashtra. The project is expected to be completed within 27 months.

RCF, a prominent player in the fertiliser and chemical manufacturing sector in India, produces a wide range of products. These include urea, complex fertilisers, bio-fertilisers, micro-nutrients, water-soluble fertilisers, soil conditioners, and various industrial chemicals. Among their notable offerings is Biola, a bio-fertiliser that aids in soil enhancement by solubilizing fixed phosphorus.

Established in 1978 following the reorganisation of the Fertilizer Corporation of India, RCF ranks as the fourth-largest urea producer in the country, behind IFFCO, NFL, and KRIBHCO. The company operates major manufacturing facilities at Trombay in Mumbai and Thal in Raigad district.

The Government of India holds a significant 75% stake in RCF, with the remaining shares distributed among LIC, mutual funds, UTI, financial institutions, and the public. RCF’s strategic importance in the agricultural sector is underscored by its substantial government backing.

Amidst the contract announcement and subsequent market activity, RCF’s shares were observed trading 7.78 per cent higher at ₹184.30, while the BSE Sensex index saw a modest rise of 0.13 per cent.