GNFC Awards Contract for New Nitric Acid Plant, Boosts Capacity by 57%

26 Mar 2025 , 12:41 PM

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) has signed a LEPC (Licensing, Engineering, Procurement and Construction) contract with thyssenkrupp Udhe (TKUIPL) for the construction of a 600-MTPD Weak Nitric Acid-III Plant.

By establishing this new plant, GNFC will increase its nitric acid production capacity by five times, with a total production capacity of 2,00,000 metric tonnes per annum (MTPA). The contract was concluded after receiving board approval Aug. 13, 2024.

TKUIPL along with its parent company Thyssenkrupp Uhde will supply process expertise, licensing and technology for the plant. This is the third nitric acid plant launched by GNFC, which will add around 57% to the company’s total production capacity, further consolidating the company’s downstream capabilities. The expansion is in line with the company’s indigenization efforts and supports Make in India by increasing domestic production.

GNFC currently operates two nitric acid plants, both licensed by Thyssenkrupp Uhde. The third plant will further solidify its market presence while upholding environmental sustainability. The company is a joint sector enterprise, promoted by the Government of Gujarat and Gujarat State Fertilizers & Chemicals (GSFC).

Over the years, GNFC has diversified beyond fertilizers, expanding into chemicals, petrochemicals, energy, electronics, telecommunications, and IT. GNFC consolidated net profit jumped 68% YoY to ₹163 crore in Q3 FY25 from ₹97 crore in Q3 FY24. Though profit up, the business recorded a 9.1% fall in total income down from ₹2,088 crore in Q3 FY24 to ₹1,899 crore in Q3 FY25.