State-owned Gujarat State Fertilizers and Chemicals (GSFC) is in focus on buzz that the prices of caprolactam have gone up and the company is the biggest producer of that in India.
A M Tiwari, Managing Director of GSFC spoke to CNBC-TV18, says the future trajectory of caprolactam rates will depend on US-China trade war.
Caprolactam Benzene spread increased to $1265/tonne and the prices levels could continue for the better part of 2019, said Tiwari.
“GSFC produced 65,000 tonne of caprolactam annually,” he said, adding that 65% of company’s revenues comes from fertilizers.
With regards to subsidies, he said issues with respect to that are being slowly fixed by the government.
“From non-fertilizer space, the melamine segment is also doing well. The melamine prices are at around $1,500 per tonne. Third plant will be commissioned by August 2018,” he said.
A M Tiwari said that company is aggressively trying to improve volume and profitability. "Aiming at Rs 1,000 crore profit before tax in the next four years,” he added.