White Papers

This section has several white papers, reports, speeches and other information of interest to those who study India's fertiliser or chemical industry. Bookmark this page, as we plan to keep adding articles and views on government policy, research efforts, the economy, etc.

Pre-Budget Memorandum by the Indian Chemical Manufacturers Association (ICMA) for the Union Budget, 2003-2004

This note talks about the current status of the Indian chemical industry and highlights the key issues and concerns. It analyses the factors constraining this vital sector, and provides recommendations that would go a long way in ensuring that the Indian chemical industry achieve global competitiveness.

Chairman's Address
Address by Shri. C. K. Mehta, Chairman, to the Shareholders at the twenty-second Annual General Meeting of the Company held on 23^rd August 2002 at Pune.

In his address to the shareholders at the twenty-second Annual General Meeting of the Company, Shri. C. K. Mehta, Chairman of the Deepak Group gave an overview of the company's position, relating it with the overall economic scenario as well as the future objectives of the company. While the year ended March 2002 was a challenging one both for the agriculture and industry, the company still managed to stay on course. The speech provides insights into happenings in the chemical and fertiliser industries, and discusses government policy needs.

Interview - Deepak Mehta, Managing Director, Deepak Nitrate Limited: On Improving competitiveness in the Indian Chemical Industry (Chemical Weekly - August 6, 2002)

In a freewheeling interview with Chemical Weekly, Mr. Deepak Mehta goes beyond the concerns of running his group of companies to discuss two major issues that affect the chemical industry. The first issue is related to the impact of tariff reductions on fuels and other inputs such as furnace oil, naphtha, etc. According to him, the policymaker's priority should be to reduce duties on feedstock first and then reduce the duties on chemicals subsequently, as this will help domestic industry's competitiveness. The second major problem facing Indian chemical manufacturers is power! The biggest cost disadvantage Indian industry faces today is in energy. The major concern is how to ensure that energy / power resources are available consistently and at a price comparable to that in other countries.

Labyrinths: Peculiarities of Industrial Marketing In India
V. Kishore Kumar, DFPCL, Pune, Published in Management Review (IIMB) June 2001.

A few years ago, the Marketing Director of Lube-Alloy1 visited India to get an order for a special lubricant developed by his company for heavy earth moving machinery. For one month, he shuttled between offices of machinery manufacturers, headquarters of mining companies, their subsidiaries, mining projects, offices of oil companies and government offices. A month after he set foot in India, he hadn't obtained even a trial order for his lubricant. He paced his bags and left - never to set foot in India again.

IT Applications in Decision Making
V.M. Deshpande, DFPCL, Pune, Published in September 2000, Fertiliser News

Fertiliser Marketing, with its own peculiarities in respect of widespread customer base, multi-tier and multi-product distribution system, inaccessibility of millions of farmers etc., has been exploring IT (information technology) applications, though predominantly confined to dispatch and sales accounting areas. With the partial decontrol of fertiliser sector in 1992 and the imminent possibility of total decontrol in the near futures, the floodgates of competition would open up - not only from within but also from foreign suppliers. In a commodity market like fertiliser products, what will make the difference is data-based decision-making, its speed and capability to extend comprehensive services leading to a strong and loyal customer base. It is here that IT applications hold potential to provide a competitive edge in the market place. We could visualise B2B And B2C environment in Fertiliser Marketing areas during the years to come.

A Note on Gas Pricing
The fertiliser and power industries consume around 80% the natural gas from Bombay High, while petrochemicals accounts for 15-17%. The remaining is consumed by other manufacturing sectors. A decade back, the prices of natural gas were fixed with a flat annual increase of Rs. 100, but this has not prevented constant price revisions. Naturally, and change in natural gas prices directly impact the fertiliser industry. A major problem is that there is no clear-cut future policy for pricing of gas, which creates uncertainty for consumers. Debate still continues as to whether gas prices should be linked to EU/ US rates or to Middle East prices. Also, a policy on imports needs to be clearly defined.