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Complete SWOT Analysis of Rashtriya Chemicals & Fertilizers – One Of The Largest Producer of Fertilizers in India

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In our previous article, we studied a detailed SWOT Analysis of BMW. Today in this article we will study about SWOT Analysis of Rashtriya Chemicals & Fertilizers. We will also take a look at quick stats, products as well as company history.

Rashtriya Chemicals and Fertilizers is the fourth-largest producer of fertilizers in India after IFFCO, NFL, KRIBHCO, and the Indian Government hold its major shares. RCF manufactures Urea, Complex Fertilizers, Bio-fertilizers, Micro-nutrients, 100 percent water-soluble fertilizers, soil conditioners and a wide range of Industrial Chemicals.

Rashtriya Chemicals and Fertilizers manufactures Urea, Complex Fertilizers, Bio-fertilizers, Micro-nutrients, 100 percent water-soluble fertilizers, soil conditioners and a wide range of Industrial Chemicals.

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Before we go into the SWOT Analysis of Rashtriya Chemicals & Fertilizers, let us know about Rashtriya Chemicals & Fertilizers as a company.

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About Rashtriya Chemicals & Fertilizers

SWOT Analysis of Rashtriya Chemicals & Fertilizers

Founded in 1978, Rashtriya Chemicals & Fertilizers has its headquarters in Mumbai. The first plant of the company was set up in the 1960s that carved out in 1978 after the reorganisation of Fertilizer Corporation of India Ltd into five companies Hindustan Fertilizer Corporation Limited, National Fertilizer Limited, Projects and Development Limited, including Rashtriya Chemicals and Fertilizers Limited. 

The Trombay unit is the first in India to produce granular compound fertilizers containing Nitrogen, Phosphorus and Potassium. The Thal unit is the largest producer of Urea all over the world. Both units have contributed significantly to the industrial progress of the country. Rashtriya Chemicals and Fertilizer plants are new-generation, energy-efficient, technologically more advanced, equipped with sophisticated instrumentation, computerised process control and management information systems. 

The units of Rashtriya Chemicals and Fertilizers are in different parts of Maharashtra and deliver products all over the country. Rashtriya Chemicals and Fertilizers believe that diversification is the key to survival and progress and therefore produces various chemicals used in food, drugs, synthetic fibres, textiles, paints, and cement in the pesticides industry. The team of Rashtriya Chemicals and Fertilizer is highly professional and thinks from every aspect of the past, present and future. The basic philosophy adopted by Rashtriya Chemicals and Fertilizer is to recycle and reuse resources. 

70% of India’s population is dependent on agriculture, and fertilizers are the prime input for the growth in the agriculture sector. Only a few companies undertook responsibility for fertilizer production, and one of them is Rashtriya Chemicals and Fertilizers, serving India for more than four decades.

As of 2020, the total fertilizer production capacity was more than one million metric tonnes per annum. Rashtriya Chemicals and Fertilizers believes in expansion by upgrading plant technology. The secret to the company’s success is the highest standard of quality products with a safe working environment for its employees.

Quick Stats on Rashtriya Chemicals & Fertilizers
Founder S.C Mudgerikar
Year Founded 1978
Origin India
No. of Employees 2682+
Company Type Public
Market Cap Rs 5,679.63 Crore (2022)
Annual Revenue Rs 8,413.83 Crore (2021)
Net Income/ Profit Rs 373.11 Crore (2021)

 

SWOT Analysis of Rashtriya Chemicals & Fertilizers


Products of Rashtriya Chemicals & Fertilizers
 

  • Urea
  • Complex fertilizers
  • Bio-fertilizers
  • Micro-nutrients
  • 100% water-soluble fertilizers
  • Soil conditioners
  • Industry chemicals 


Competitors of Rashtriya Chemicals & Fertilizers 

  • Tata Chemicals
  • Chambal Fertilizers 
  • GNFC 
  • Fert and Chem
  • Deepak Fertilizers 
  • GSFC 


Now that we have understood the company’s core products and services, let’s dive deep into the SWOT analysis of Rashtriya Chemicals & Fertilizers.


SWOT Analysis of Rashtriya Chemicals & Fertilizers

SWOT analysis is a study that is undertaken by the majority of companies to determine their core strengths, weaknesses, opportunities and threats. It is a framework that is used to evaluate a company’s competitive position which later helps in strategic planning. 

SWOT analysis can be conducted by any popular brand or any brand which is still new in the market can make use of this template to evaluate internal and external variables that might influence the brand authority and market development.

SWOT Analysis of Rashtriya Chemicals & Fertilizers - SWOT Infographics of Rashtriya Chemicals & Fertilizers

Below is a step-by-step detailed guide to help you with the SWOT analysis of Rashtriya Chemicals & Fertilizers.

Strengths of Rashtriya Chemicals & Fertilizers

The strength of a company is something that helps the company to grow in the long run and also helps to earn maximum profits with their full use of resources efficiently.

  • High-quality Products: Rashtriya Chemicals and Fertilizers produces high-quality products such as Ujjwala, Suphala, Microla, Biola and Sujala. 
  • Recognized Brand: Ujjwala and Suphala brands of fertilizers manufactured by RCF carry high brand equity and are recognized brands all over the country.  These products are taken to the farthest corner of the country by an extensive RCF dealers network spread throughout the country.
  • Social Schemes: The training institutes educate the farmers on the latest farming techniques. The company also has a toll free number named “Kisan Care” that allows the farmer to resolve all queries and seek advice from agriculture experts. 
  • Brand Name: Rashtriya Chemicals & Fertilizers has made their reputation, they are the leaders in chemicals, they are very highly reputed from the list of their competitors.

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  • Wide Range of Industrial Chemical Products: The company produces chemicals used in various sectors such as pharmaceuticals and dyes. 
  • Government Support: RCFL gets immense support from the government of India as the government holds about 75% of the company’s equity and is bound to help RCFL in any situation.
  • Dealer’s Agencies: Rashtriya Chemicals & Fertilizers has a high number of dealers in pan India, that are supporting Rashtriya Chemicals & Fertilizers by selling their different products. They do take part in the company’s dealer training programmes.
  • Sustainability: RCFL ensures environmental stewardship including energy and water efficiency, waste management, renewable energy and greener manufacturing processes and technologies. The company is driven by the spirit of innovation and is continuously focusing on sustainable products and packaging innovations.


Weaknesses of Rashtriya Chemicals & Fertilizers

The weaknesses are a major drawback that stops the organisation from performing at its optimum level. They are the areas in which businesses can make improvements. The major drawbacks are as follows:

  • Maintenance: The upkeep and maintenance of plants installed over several years interrupt the production of fertilizers and chemicals. 
  • Fluctuating Results: Prime customers of the company are farmers, and favourable climatic conditions fluctuate the performance. 
  • Imports of Raw Materials: Raw materials such as Rock Phosphate, MAP, DAP and MOP required to manufacture complex fertilizers come from outside India. The fluctuation in the foreign currency exchange rates affects profitability. 
  • Research and Development: Rashtriya Chemicals & Fertilizers has a good share of expenditure on the research and development department but it is spending way less than a few of the players within the industry which have benefitted as a result of their innovative products.
  • Economically Viable Products: Products such as ANP:20:20:0 are viable in today’s world. 


Opportunities for Rashtriya Chemicals & Fertilizers

Opportunities are the favourable external factors that may give the organization a competitive advantage over others. The opportunities of Rashtriya Chemicals & Fertilizers are as follows:

  • Overseas Opportunities: The company can collaborate with international farmers and has diversified its field of manufacturing, mining raw materials and fertilizers. 
  • Expansion in NPK Fertilizers: Huge demand for NPK fertilizers with import dependency in the country provides an opportunity to expand its segments in the NPK fertilizers base. 
  • Operation and Management Services: The highly skilled manpower enables the company to render operation and management services in India and abroad. 
  • Energy-saving Projects: Energy saving projects such as the Trombay Urea-V plant revamp, Trombay Ammonia-V plant revamp, and GTG-HRSG have the potential to enhance the profitability of the company. 


Threats to Rashtriya Chemicals & Fertilizers

Threats are those factors that have the potential to provide harm to the organisation in any form. The threats of Rashtriya Chemicals & Fertilizers are as follows:

  • Increased Prices of Raw Materials: The raw materials experience high prices which adversely impact the production and marketing of the fertilizers ( a core business) of the company. 
  • Production Dependent on Feedstock Gas: Production of Urea, Complex fertilizers and chemicals depends on the availability of feedstock gas. 
  • Competition: There is always an ongoing competition that puts downward pressure on the prices. This could lead to lower profits if it makes changes in the price or may also result in lower market share if it doesn’t make price changes.
  • Government Policies: Uncertain decisions of Government related to feedstock gas, price of fertilizers and subsidy thereon affects the performance and competition of the company. 
  • Interest Burden: The gas pooling mechanism for Urea production adds an interest burden on the company. 


This ends our complete SWOT analysis of Rashtriya Chemicals & Fertilizers. Let us conclude our learning below.

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To Conclude

Rashtriya Chemicals & Fertilizers is a well-known company with a significant global presence. In the SWOT analysis of Rashtriya Chemicals & Fertilizers, we observed that the company is heavily reliant and enjoys strong brand recognition and trust with its customers. It has a strong distribution network and has reached across all the markets it serves, but suffers from an increasing number of suppliers in the same space and better R&D efforts by its competitors.

Also, one point not to miss out on is that Rashtriya Chemicals & Fertilizers is in line with its marketing effort. It has created a customer base for itself by tapping into the digital era and creating a social media presence on several platforms. If you are interested in learning digital marketing, don’t forget to check out Online Digital Marketing Course.

We hope this blog on the SWOT Analysis of Rashtriya Chemicals & Fertilizers has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

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Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Rashtriya Chemicals & Fertilizers in the comments section below.

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