FCI Aravali Gypsum and Minerals India Limited (FAGMIL) is a public sector undertaking under the ministry of chemicals and fertilizers. It is engaged in mining and exploration of mineral gypsum, an important mineral used as micronutrient for the soil and also for the reclamation of sodic land in India. Gypsum is also an important mineral for cement industry and prime mineral for Plaster of Paris industry. Its chairman and managing director SK Das spoke to HT on a range of issues. Excerpts:
How the company has progressed in the past two years?
FAGMIL has shown exemplary performance in the last two-and-a-half years. There is a quantum jump in the profitability of the company, from R15.87 crore in the year 2009-10 to R38.89 crore in the year 2012-13. FAGMIL's MoU for the year 2011-12 has been adjudged best by the department of public enterprises in the syndicate of mines and other minerals. The company is expected to qualify for the MoU excellence award of the department of public enterprise to be given by the Prime Minister. It has paid 74% dividend — highest in the fertiliser sector — to the government in the year 2011-12.
What are the company's strategies for future growth?
FAGMIL is under the administrative control of ministry of fertilisers and chemicals. Its product, gypsum, is used by the cement industries as a raw material and agriculture sector as land reclamation and source of sulphur, nutrient for crops such as oil seed, pulses, potato, garlic, etc. The company focused on agriculture grade gypsum and added Haryana as a major client for the nutrient. The company has focused on the agriculture-grade gypsum, which will help the economy by aiding higher agriculture production. FAGMIL was earlier engaged in mining of single mineral -- gypsum. Gypsum reserves are depleting. We have, therefore, identified the twin objectives: mining other minerals such as dolomite and limestone and also diversify in the field of production of single super phosphate, providing quality products for the benefit of the farmers in Rajasthan.
Is there a conflict between environment and growth?
I don't find any conflict between environment and growth. Through gypsum mining we are not only reclaiming the alkaline land in UP but also helping the farmers of Rajasthan by leveling the land after extraction of gypsum and the land in both areas has become suitable for cultivation. Hence, through mining gypsum, our company is contributing to environment also.
What new initiatives have you taken regarding corporate social responsibility?
Rajasthan needs support in the field of education, drinking water and community development. We are supporting the community through various schemes such as scholarship to SC, ST and OBC students, construction of community centres, bus shelters and organising health camps in remote village.
What are the company's plans for the next three years?
The company has drafted its corporate plan and set a target turnover of R400 crore. The current is 73.53 crore. The company, in the past two years, has been motivated by the government's conferring of the Mini Ratna, category-II status in June 2011. This year we are going to claim Mini Ratna category-I, as well as upgradation of the company into 'B' schedule. The company is confident to achieve its goals.