Association of India and the National Safety Award for best safety performance by British Safety Council, UK, in 2003.The group's API and dosage manufacturing facilities conform to WHO-cGMP norms and its antibiotic manufacturing facility is the only Indian plant that has been approved by US FDA for the production of penicillin-G potassium.
For the financial year ending 31 March 2005
(FY05), SPIC registered a consolidated total income of US$ 607.2 million and a profit after tax (PAT) of US$ 5.24 million.
SPIC in the Arab World
SPIC marks its presence in the Arab World through its JVs - Indo-Jordan Chemicals Company Limited in Jordan, Gulf SPIC General Trading and
Contracting Company Ltd. in Kuwait and SPIC Fertilizers & Chemicals FZE in the UAE.
SPIC in Jordan
SPIC Limited is present in Jordan through its JV, Indo-Jordan Chemicals Company Limited (IJC).
Its partners in the JV, Jordan Phosphate Mines Company, Jordan, and the Arab Investment Company, Saudi Arabia, have holdings of 34.8 per cent and 13.0 per cent, respectively, while the remaining 52.2 per cent is held by SPIC. IJC was set up in 1992 for manufacturing phosphoric and sulphuric acids, and it began commercial production in 1997.The plant has an annual installed
production capacity of 224,000 MT of phosphoric acid and 660,000 MT of sulphuric acid. For 2005,
Company Background
Southern Petrochemical Industries Corporation Limited (SPIC), headquartered in Chennai, India, was founded in 1969. SPIC Ltd. has four main business divisions - the fertiliser division that manufactures fertilisers and intermediates; the pharmaceuticals division that manufactures penicillin, active pharmaceutical ingredients (API), finished dosage products and industrial enzymes;
the engineering/construction services division that offers specialised and turnkey project-based solutions in sectors such as fertilisers, chemicals, pharmaceuticals, oil and gas, and power; and the agri-business division that offers products, such as hybrid seeds, bio fertilisers etc., for agriculture development.
SPIC Ltd., an industrial conglomerate, operates its business through a number of subsidiaries and joint ventures (JV), mainly in India and in the Middle East.
SPIC has multiple manufacturing facilities in India and abroad, which are backed by its technology partners.The group has manufacturing facilities in Tamil Nadu for the production of antibiotics, APIs and finished dosages. It is among India's largest manufacturers of fertilisers, with a distribution network that spans more than 12 states and 4000 outlets.The group's engineering services division operates through Chennai and offers transmission and distribution, and operation and maintenance services to its clients.
SPIC was awarded with the Best Technical Innovation Award in 2003-04 by the Fertilizer 62
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Ahlia Industrial Projects, and has successfully executed them. It has constantly kept pace with market requirements; recently, it ventured into trading design-related software to cater to market needs.
Future Plans
Expansion Plans
SPIC plans to go in for a second train at the SA/PA complex at its JV unit (Indo-Jordan Chemicals Company Ltd) in Jordan, whereby the overall capacity of phosphoric acid would get enhanced to 450,000 MTPA.
IJC had a turnover of US$ 82.41 million, with a net profit of US$ 10.95 million.
SPIC in the UAE
SPIC has a JV with the Emirates Trading Agency in Dubai, which is called SPIC Fertilizers and Chemicals FZE, Dubai.This JV company, a wholly owned subsidiary of SPIC Fertilizers and Chemicals Limited, Mauritius, is installing a manufacturing complex at the Jebel Ali Free Zone in Dubai, which has been relocated from Sri Lanka. It has a
production capacity of 226,050 tonnes per annum (tpa) of ammonia and 396,000 tpa of urea.
Factors for Success
Collaborating with a Raw Materials Supplier With the increased demand-supply gap for
phosphoric acid in India, coupled with a lack of raw materials (rock phosphates) for its production, SPIC decided to collaborate with a company that could provide it with rock phosphates.The
company, in its quest to search for new avenues for rock phosphate availability, reached Jordan.
It entered into a JV with Jordan Phosphate Mines Company Limited (JPMC), which provides it with the rock phosphates, owing to the huge reserves in that region. As a result, SPIC gained from JPMC's strategic location by acquiring raw materials from it and exporting the manufactured phosphoric acid to India.
Business from Oil Reserves in the Arab World
SPIC provides its engineering services to sectors such as oil and gas, petroleum refining, offshore and petrochemicals.The Arab world, with its huge oil reserves, was the obvious choice for the company to set up its base for providing these services. Gulf SPIC has already bagged some major projects from leading companies such as Kuwait National
Petroleum Company, Petroleum Industries Company, Sankyang Engg,Technip, Prosernat and
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