GNFC advances capex, eyes new growth in bisphenol A, polyol

GNFC's board has approved the Ammonium Nitrate Melt II project, adding 163,000 tonnes capacity and contributing to a total capex pipeline of INR2,800 crores. Current ongoing capex initiatives include AN melt (INR450 crores), weak nitric acid (INR1,420 crores), Dahej power and steam plant conversion (INR613 crores), and ammonia loop expansion (INR331 crores). The company also confirmed an upward revision in fertilizer and nutrient-based subsidy rates, benefiting GNFC by approximately INR872 per metric tonne.

The company is actively evaluating further investments in bisphenol A and polyol, with a potential combined capex of INR7,000-8,000 crores. These projects are considered import substitutes, with building blocks like propylene, ethylene, and benzene. GNFC expects cost savings from its A.T. Kearney consulting engagement, projected to be in the hundreds of crores annually, with benefits materializing in the second half of next year.

During Q2 FY '26, production volumes saw improvements, with WNA production at approximately 97,000 tonnes, CNA at 33,000 tonnes, AN Melt at 73,000 tonnes, and TDI around 15,600 tonnes. The company also clarified its confidence in managing a long-standing demand notice of INR21,370 crores from the Department of Telecommunication, citing a strong case due to the minuscule telecom business share.