Gujarat State Fertilizers & Chemicals Limited (NSE: GSFC) Q3 2026 Earnings Call dated Feb. 10, 2026
Corporate Participants:
Mr. S. K. Bajpai — Senior Vice President (Finance & Legal) and Chief Financial Officer
Analysts:
Nirav J. Modia — Analyst
Saket Kapoor — Analyst
Madhur Rathi — Analyst
Nirav Jimudia — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Gujarat State Fertilizers and Chemicals Limited GSFC conference call for Q3FY26 earnings. This call has been hosted by Anurag Services LLP on behalf of GSFC Limited. From the management we have Mr. S.K. vajpayee, Senior VP, Finance and Legal and CFO Mr. S.V. verma, Executive Director, Agribusiness, HRS and IR and other senior members from the management. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. S.K. bajpai, Senior VP, Finance and Legal and CFO GSF C Limited. Thank you. And over to you, sir.
Mr. S. K. Bajpai — Senior Vice President (Finance & Legal) and Chief Financial Officer
Yeah. Good afternoon everyone. Thank you for joining us for quarter three. 25:26 earning call of Gujarat State Fertilizers and Chemicals Limited. It’s always great to connect with all of you and share the key updates that we have from the quarter. I hope that you had a chance to review the financial results, media release and investor presentation available on the stock exchanges and also on our company website. Ppc. Standalone financial performance. The company had delivered strong financial and operational performance in quarter three, demonstrating robust growth across key metrics. On the production front, the company achieved the highest Q3 5.07 lakh metric ton and in nine months 13.30 lakh metric ton volumes in the last five years.
Revenue growth if we see sales increased by 139 crore representing 5% year on year growth. Profit before tax rose by 27 crore, a healthy 18% increase. Profit after tax grew by 38 crores marking an impressive 32% improvement. Operating profitability improved from 5.40% to 6.11% reflecting enhanced operational efficiency. Fertilizer segment revenue increased from 2,172 crore rupees 2,298 crore in quarter three on buy O y basis. Our sales volume remaining stable at 6.27 lakh metric ton segment. Abex moderated to rupees 119 crore from rupees 126 crore due to sharp escalation in key raw metal gases like phosphoric acid up by 34%, sulphur up by 130% and sulfuric acid up by 91% which offset the benefit of higher utilization of fatigue and potassium fertilizers the quarter recorded the highest AP’s production and sales in the last five years resulting in a net revenue increase that largely compensated for the decline in DAP sales.
Industrial products segment delivered a resilient performance in quarter three on a by by basis with sales rising from 583 crore to 596 crore and EBIT turning around to a profit of Rs. 9 crore reflecting improved operational balance. Growth was supported by strategic focus on higher melamine exports where realizations were stronger than in domestic markets. Along with higher traded ammonia sales. These measures overcame the headwinds in other major industrial products. While the Caprolactam benzene spread declined to US$495 per metric ton from US$588 per metric ton, diversification and product portfolio management supported profitability. Overall, the company maintained a healthy performance in quarter three, demonstrating resilience against raw meter volatility and sustaining growth momentum across both business segments.
We continue to maintain a strong balance sheet with no long term debt, healthy net worth and adequate liquidity. Government of India’s outstanding support on release of fertilizer subsidy has kept the working capital levels at optimum level. As of date the Company has received subsidiary dues for Urean imported PNK Fertilizer up to fourth week of December 25th and manufactured prospective fertilizers up to first week of January 26th. This provides the foundation for advance advancing our CAPEX roadmap as detailed in the investor presentation. The Sulfuric Acid 5 project was commissioned on 7 January 2026 providing both incremental capacity and cost efficiency benefits.
The project will cater the requirement of sulphuric acid for manufacturing of fertilizers like ammonium sulfate and ammonium phosphate sulphate. Further, the steam generated there form shall be available for utilization at the Ballodra complex. Favorable season conditions and healthy Rabi sowing position the country for a strong harvest with fertilizers requirement for the season largely addressed. Consequently, only limited incremental demand from the soil duration hot weather crop is expected. While the industry may experience cost pressures from the elevated prices of key inputs such as phosphoric acid and sulphur, the company remains focused on disciplined margin management strategic priorities including optimizing market opportunities and ensuring calibrated inventory positioning to effectively service demand for the upcoming Kharif season thereby supporting volume stability and supply readiness.
The Government of India’s ongoing trade facilitation measures including recently executed FTAs and CEPAs with key commies are expected to improve market access and Competitiveness for Indian chemical export subject to a product specific tariff outcome. Caprotinum benzene spread are expected to improve in Quarter 42526 providing a supportive margin environment. Product rationalization in other ASEAN countries across The Kepler Dexum Nylon 6 value chain aimed at prevented oversupply and moderating price competition has led to a firmer realization in Q3 2526 a trend that is expected to lead near term stability to the market.
Maramine demand is expected to remain steady in domestic markets with the growth anticipated in export markets. Haze crystal volumes are expected to improve across both domestic and export markets. Demand for other industrial products is also likely to hold stable during the quarter. Overall, the company anticipates consistent demand conditions and stable turnover in the industrial Product segment in Q4 2526 I now turn over the call for question and answers.
Questions and Answers:
Mr. S. K. Bajpai
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press char and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press char and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Nirav J. Modia from Anvil Wealth. Please go ahead.
Nirav J. Modia
Yes Sir, Good afternoon Sir. I have questions to ask sir, first is on the guidance for the sales volume if you can share for quarter four and for FY26.
Mr. S. K. Bajpai
Sales volume in rupee thumb.
Nirav J. Modia
No, no guidance of absolute sales volume for Q4 of FY26. Like any guidance which you would like to share as compared to what we have achieved in quarter third.
Mr. S. K. Bajpai
Actually quarter four is the lean season for the fertilizer industry so there is not that much sale and margin available in quarter four as you can see from the history of the company. Also during last two years the quarter four is not that great as compared to the other quarters of the financial year. Having said that I have told that we have placed our dap urea and doesn’t fertilizers in the market and as per the requirement it will be provided to the farmers.
Nirav J. Modia
Sir, like if we see our manufacturing volumes we are near to almost 1.5 1.6 million tons. I am talking from the manufacturing point of view. So you rightly explained this time that there were cost escalations on the phosphoric acid sulphuric acid also on the sulphur part for sulphuric acid production. So if you just want to share Your views like if we just want to divide our volumes between let’s say the manufacturing volumes and the trading volumes, what we do, what sort of EBITDA per metric turn which we would be generating on the manufacturing side?
Mr. S. K. Bajpai
Avita, overall we are generating 5 to 6% from the.
Nirav J. Modia
If you can share on the per metric 10 basis that would be very helpful because then the prices also keeps on changing based on the subsidy and everything.
Mr. S. K. Bajpai
So if you can that is but EBITDA product wise like fertilizer. If you see the fertilizer then urea, dap, np, gigats or APS ammonium sulfate everywhere there is a different ebitda. It is not a combined figure available to me. But if you see overall that I can say 5 to 6% EBITDA is there in the fertilizer segment, correct?
Nirav J. Modia
And in terms of. Because you rightly explained that Q4 generally is a lean season and we tend to provide some sort of discounts also to place our products in the market. But let’s say going forward from next year onwards with this kind of cost escalations which we have seen on the raw material side how we are going to deal with this situation in terms of improvement in the margins and second in terms of improvement in our manufacturing volumes.
Mr. S. K. Bajpai
There are two parameters or key inputs that has shown the abnormal increase in prices. One is the sulfuric acid and sulfur prices and another is phosphoric acid. Ammonia is also trending very high at around 525 or $530 per metric ton presently. But for sulfuric acid we have made always in the long term contact with the suppliers. So we can fix the total purchase price by keeping a like purchase price fixing in the inception of the financial year over and above we have also capitalized Sulphuric Acid 5 plant at Fertilizer Nagar Complex which is producing near about 2 lakh metric ton per annum sulphuric acid and it is running very nicely and production is also good.
So whatever the requirement of sulphuric acid will be met from our own production. So that is very cost effective. And in comparison to the purchase price and the market volatility, we can cater maximum sulphuric acid requirement from our own production at fertilizing a complex. As far as sulphuric acid is concerned the prices are very high. But let us see how it comes in the next quarter and the government subsidy fixation based on the phosphoric acid and ammonia pricing in the next quarter. So based on that our margins will be calculated and margins will be there in the business.
Nirav J. Modia
Correct. So second question is on the chemical side. You mentioned that caprobenzene spreads have been improving and that could help us to A improve our volumes, B improve our profitability. So if, let’s say the spreads what we have achieved in third quarter was close to around $500. So let’s say at what level of spreads our caprolactum business should start seeing an improvement in the profitability whereby let’s say it should start covering our fixed and the variable cost.
Mr. S. K. Bajpai
Actually now it is ranging about $590 per metric to spread between caproductorum and benzene in the January. So it has improved drastically and it covers the variable cost. Now why we are operating the caprolactam because we are getting the byproduct ammonium sulphate and which is as a fertilizer and it is a profitable product for us as a in fertilizer segment. So even if there is a little negative contribution in the caprolactam, we do not shut the operation because it cuts the production of the ammonium sulphate also. So that is the logic we continue. But by increasing this caprobenzene is spread to a comfortable level. Now, I don’t foresee that there is a negative contribution in the caprolactam business.
Nirav J. Modia
But at $500 there was a negative contribution. So is it safe?
Mr. S. K. Bajpai
Yeah.
Nirav J. Modia
So is it safe to assume, sir, that at $500 possibly we would be losing close to around $100 at the contribution level from the capital?
Mr. S. K. Bajpai
No, no, no, not, not that much. A little. I cannot say what is the negative contribution, but it is not much. It is a slight negative contribution in the capital actum. And we are also saving the cost by importing unknown because unknown cost is our own manufact. So we are importing an own and by cost cutting we are cutting the contribution. Negative contribution. Also in the capital atom business.
Nirav J. Modia
Also, sir, we have seen slightly a fall in the industrial products margin this quarter. So was it because of lesser ammonia trading, which in the earlier quarters were a significant contributor to our profitability?
Mr. S. K. Bajpai
That’s up to one stage. It is correct because the ammonia prices are again high and our domestic requirement of ammonia is there. But at that level of ammonia, the few small players cannot afford to purchase the ammonia and use that costly ammonia for their products. So there is a little less demand in the quarter three, but with some reduction in the margin. We also prefer to sell because there was a positive contribution and ammonia trading is helpful for getting the IP segment in a Profitable segment.
Nirav J. Modia
Correct. So let’s say sir, in quarter four how do we see the industrial products? One you mentioned about the caprolactam part. But is there any further scope of improvement in the profitability from the industrial product side from other products? And also how do you see Q4 shaping up in terms of the ammonia part?
Mr. S. K. Bajpai
Yeah, ammonia prices are now stable and we are going for long term ammonia contact with the buyers. So that will that will form up their delta on the ammonia business. And also the requirement from the other from the suppliers whatever ammonia they want to purchase for the whole year. Second thing is this FDA agreement signed by the executed by government of India with European Union and now the tariff concessions in America. So that will boost our melamine export. Not only melamine but also caprolactam and HX crystal products for the export purposes. And the export realization is better than the domestic market.
So that is another area. We are hoping for a better margin in the IP segment. Third one we have also taken up with the government of India because in domestic market realization is not that great. So for and we are only the producer of melamine, caprolactam and hazard crystal in India. So we have requested to government of India that for protection of our industry and there were concept of government of India there should be some protection available.
Otherwise we are manufacturing and exporting the product. And on other side we are the other countries are dumping into India. So some minimum support price or some basic duty structure. We have requested government of India to form in case of melamine caprolactam and Nylon 6. So that would if something comes out positively by the government of India then it will further boost up of the IP segment margin.
Nirav J. Modia
Safe to assume here that our Malema and Capron HX plant is operating close to 100%. So whatever would be going for the exports would be a lesser volumes in the domestic market. Is the correct assumption to make?
Mr. S. K. Bajpai
Yeah, yeah, that’s correct.
Nirav J. Modia
Correct sir. Last two questions from my side. So one Sir. Based on our fertilizer production of let’s say close to around 1.5 million tons on an annual basis put together from both the complexes, how much ammonia and sulfuric acid would be required on an annual basis?
Mr. S. K. Bajpai
We will give this answer to you. Just a minute. For ammonia for both the units you are looking after now Just give me a second please. See the requirement both the units should be around 5. It varies between 5.5 to 6 lakhs tons per annum. Considering the capsity operations for 16 to 18 lakhs ammonia and in case of sulfuric acids it is slightly in the same range only. Yeah, yeah, same range
Nirav J. Modia
Six legs right?
Mr. S. K. Bajpai
Yeah.
Nirav J. Modia
The last question from my side like anything we are hearing from the government in terms of revision in the fixed cost of for the urea business Also on the revision in the energy consumption norms Anything if you can share your thoughts because I think some of the meetings have happened so if you can share your thoughts here would be very helpful.
Mr. S. K. Bajpai
Now fixed cost data as required by the government of India we have already submitted along with the other fertilizer producers so now it is the government of India’s term to come out with the final fixation of fixed cost because till now this cost fixed by the government is very old and it is not sustainable. Any increase in the fertilizer fixed cost or urea fixed cost will further helpful for the urea producers in fertilizer sector. What was the second one your question?
Nirav J. Modia
Revision in the energy consumption norms.
Mr. S. K. Bajpai
Energy consumption Actually we have already revamped our Urea 2 plant so we are meeting with the Urea 2 energy now faced by the government of India and as per the minutes and best information available to me they are continuing the reimbursement of subsidy for further three years on the same energy consumption so that will be the additional benefit available to the GSFC because presently it is coming around 5.9 to 6 GK metric ton of production of urea.
Nirav J. Modia
Thank you so much sir and wish you all the best.
Mr. S. K. Bajpai
Thank you. Thank you.
operator
Thank you. Before we take the next question we would like to remind participants that you may press Char in one to ask a question. The next question is from the line of Saket Kapoor from Kapoor and company. Please go ahead.
Saket Kapoor
Majority of everything has been covered by our learned participants. Thank you to him for very calibrately asking all the questions. Sir, only one point about the Sulfuri tech plant which was commissioned in the month of January what would be the benefit that we will be attributing to for this quarter? Sir, in terms of the backward integration that that’s when that will be for our utilization captive use.
Mr. S. K. Bajpai
Yeah. Sulfuric acid fight project is commissioned in January somewhere in the first week of January 26th and it is operating nicely and the benefit will be available for the next two months in the coming quarter and again for the whole year next year. If you see that Production capacity is 2 lakh metric ton per annum for the sulphuric acid plant and as you know the present sulphuric acid price is more than 17,000 rupees per metric ton in the Indian market and more than $500 per metric ton of silver cost in the international market. So till the time this ASEAN countries have banned the export of the sulfuric acid.
That’s why the prices are high. And this is a very good thing for GSFC that we have commissioned this plant at very appropriate time. So we will be having this, our own manufactured sulphuric acid available for the production of ammonium sulphate and ammonium phosphate sulfate so that that impact will be not that big as in the pricing increase in the pricing of sulphuric acid in the Indian market. So we will curtail certain, certain, certain portion of the cost increase from by replacing our own manufactured sulphuric acid.
Saket Kapoor
So that will not be meaningful. That is what you are trying to allude to.
Mr. S. K. Bajpai
Sorry,
Saket Kapoor
that will not be a meaningful value sir, on an annual basis the savings that will be accrued due to.
Mr. S. K. Bajpai
Apart from this, this steam is also available from the sulphuric acid plant, no? So that steam is also useful for other operation of other plants and our steam production from the bilers will be stopped. So natural gas consumption will come down. So if you want to monetize I think it is near about 100 crores per annum advantage available by commissioning of this project.
Saket Kapoor
We were also contemplating some debottle making and some changes in our lines for larger lines wherein we would be able to manufacture I think so ammonium circuit from the lines which were not being not been attributed to that there was some things we were working on. So where are we sir in terms of that tinkering with the production lines that was anticipated?
Mr. S. K. Bajpai
Yeah, that is one line I think you are talking about this sika where the DAP 110 we were producing and we are converting it for the fungible production for AFP and DAP whatever is requirement of the market. So that product is as per the schedule and we will be completing this by the end of September this year. So that facility is available Then we will be producing the ammonium phosphate sulfate in the line of DAP whenever the requirement of APS is there in the market.
Saket Kapoor
Right? I have not. Pardon me there, I have not checked but labor code intact in terms of the employee costs. Have you factored in into our numbers or that there will be any revision. Because of that
Mr. S. K. Bajpai
you are talking about new labor code?
Saket Kapoor
Yes?
Mr. S. K. Bajpai
Yeah, yeah. Add for the information or notification available with us. So whatever we could get it. Clearly we have provided liabilities provisions in our books were account in quarter three for the fixed term employment employees. However most of the provisions we are already doing as a very government promoted company we are meeting all the requirements as per new labor code. Our rules are still pending to be notified as soon as it comes. So rest of the things we will see and make the provisions there is no problem but there is no huge impact as far as our this GSFC is concerned because we are already meeting most of the provisions.
Saket Kapoor
What I could gather from the previous participants questions and your answer that for IP the the environment is now conducive and the profitability barring the market conditions are expected to improve for the ensuing quarter. This is what the underlining factors whether it is the capital items, the gin spread or the higher prices for melamine. Is that understanding correct there sir?
Mr. S. K. Bajpai
Yeah, yeah, very much. Because by putting little efforts in the export of melamine we have turned out to be positive margins in the coming quarter and in the next quarter and henceforth since the Capuletum engine spread is improving and the FTS signed by the government of India with the European market and tariff concessions in US we are again looking for this export of melamine and Caprolactam. And third one is HX crystal to this market where the realization is better than the domestic market.
Saket Kapoor
And lastly I think the HX crystals were. I think so we were selling this product because of the lower prices for caprolactants. Correct me there are. So currently how does the metrics work with with the improvement in the spread how do. How are we placed in in terms of this HX crystal product? Because here also you have mentioned that volumes are expected to improve. So if you could just explain the value chain.
Mr. S. K. Bajpai
Yeah. The crystal product is our own RND created product and it is well accepted by the market. But we have the 100% capacity of the Indian market because we are only the producer. So sometimes if the import is cheaper than our realization price then we may look for the export of the HS crystal. So that is my sense that in export market the realization is better than domestic market so that will provide an extra advantage for the new product. And as far as Caprolactam is concerned it is the Caprolactam and benzene spread has reached to a comfortable level where the contribution is positive. So that will again boost the IP segment result in quarter four.
Saket Kapoor
Okay sir, just a small clarification then where does apex crystals falls into place in the value chain? Sir, we were selling Apex crystal since the realizations were higher instead of selling capital. Or correct me there, how does the metrics work here?
Mr. S. K. Bajpai
No HJAC crystal the contribution is Better margins are better than the Caprolactam. So we are trying to run the HX crystal at the full label rather than the Caprolactam. Because when the caprolactam price is not good. That is why we have developed this HX crystal and we are diverting one of the intermediate product HA to the HX crystal and where the margins are better than the. So we always prefer to use the full capacity of HF crystal and gain better margins rather than selling the Caprolactam at lower price.
Saket Kapoor
Thank you for all. In case any clarification I’ll come back. Thank you to the guy team sir and all the best.
operator
Thank you. Participants who wish to ask Questions may press charan 1 at this time. The next question is from the line of Madhurati from Countercyclic Investments. Please go ahead sir.
Madhur Rathi
Thank you for the opportunity. Sir. I wanted to understand regarding our sulfuric acid the one that we have commissioned and the one that is expected in FY28. So it seems that there is going to be a lot of sulfuric acid availability in Gujarat due to Kutch Copper commissioning sir. So do we see that the payback period for these Capex decreasing once the production commercializes or sulfuric acid availability increases.
Mr. S. K. Bajpai
The market availability and supply factor is not a fix. It is. It keeps changing. But our sulfuric acid plant is commissioned for meeting the own requirement of sulfuric acid in ammonium sulfate and ammonium phosphate sulphate. So we are not going to sell in the market Whatever the price sulphur is available at for the GSFC we will produce sulphuric acid and consume it in the fertilizer production. So there will not be many negative impact. Whatever the price of sulfuric acid may be in the future. Sulphuric acid is as far as payback is concerned that if 100 crore is really the margin available in the first year so we will be payback in two, three years. So there will not be any risk available for the company for the payback of the sulfuric acid product.
Madhur Rathi
Right? So we don’t see any scenario where due to production increasing at Kutch Copper are the next sulfuric acid capacity of 202 lakh metric then that will be commissioning. Sorry 6 lakh metric then that will be commissioning for that payback period to increase further.
Mr. S. K. Bajpai
No, I don’t think so. Because up to the I do not know when this chemical facility will be shipping up and coming this the sulphuric acid is coming in the market. But as far as we are concerned and looking to the present pricing of the sulphuric acid, we will be recovering about cost in two, three years.
Madhur Rathi
Got it. And sir, we mentioned that currently sulphur cost is 500 per metric tonsil and sulfuric acid is 17,000 rupees per metric sensor. Do we see this prices to remain steady for the next one or two years? Or where do we see the realizations for these both of these raw material as well as the finished product?
Mr. S. K. Bajpai
It is very difficult to comment upon because as you rightly said, demand and supply position fixes the prices. Some new supply suppliers are coming in the market. Or the other Asian countries like China and Russia start exporting the sulphuric acid, the sulfur. Then the prices of this sulfur and sulfuric acid will come down drastically in the near future.
Madhur Rathi
Okay, so why. Sir, pardon my ignorance but why had the prices risen so much?
Mr. S. K. Bajpai
Because the other countries have start stop supplying in the international market. So there is a supply and demand gap. So whatever sulfuric acid is required for the fertilizer as well as for other industries, it is not supplied by the other foreign markets like China, Russia. They have stopped supplying the sulfuric acid. I think in my opinion this is one of the reason of this high prices of sulfur and sulfuric acid.
Madhur Rathi
Okay sir, thank you so much and all the best.
Mr. S. K. Bajpai
Thank you.
operator
Thank you. Participants who wish to ask Questions may press charan 1 at this time. The next question is from the line of Nirav Jamudia from Anvil Wealth. Please go ahead.
Nirav Jimudia
Yes sir. Thanks for the opportunity again. So just a clarification on the ammonia and the sulphuric acid part. So you mentioned that we require close to around five and a half to six lakh tons of ammonia. So how much of this would be met through our own production and how much we are importing?
Mr. S. K. Bajpai
Around 4.2 to 4.5. We are meeting from our production rest we are importing.
Nirav Jimudia
Correct. And sir, after this expansion of 1 98,000 tons of sulphuric acid, how much is our capacity now for sulphuric acid?
Mr. S. K. Bajpai
Sulfuric acid capacity will go to around. Yeah. Near to the 100% capsity requirement. Requirement of broader unit and slightly we’ll be requiring it at Sika. Around 1.6 to 2 lakhs. Based on the requirement of based on the product mix of Sika.
Nirav Jimudia
Correct. So let’s say for sulfuric acid possibly also will be producing the similar amount of 4.5 lakh tons and 1.5 lakh tons we are buying from the outside market. Right? Correct. So second Question is on the urea part you mentioned that we have revamped and our energy consumption in GKL per metric ton have come down let’s say from earlier 6.4 6.5 to now 5.5 5.9 to around 6. So how does it help us in terms of the profitability? And also is this CAPEX what we have incurred for revamping our urea part are we getting some fixed compensation from the government like earlier they used to give us in a period of four, five years. So if you can help us both these aspects that would be very helpful.
Mr. S. K. Bajpai
No UDF plant was very old plant of 1969. So anyway we have to revamp this plant because of the old technology and the very poor condition of the plant. So we had to incur this revamp facilities at Urea 2 Urea 1 plant we have already stopped because that machinery is not useful and it is of 1967. Whatever. The government of India has been giving some money to other companies for this capex. In case of GSFC we are not getting anything by way of fixed cost. However they have acceded to our request of providing the subsidy at the old rate even after the consumption of energy. So that will benefit as a payback period of 4, 5 years time for the GSFC of the capital expenditure of around 300 to 50 to 400 crores.
Nirav Jimudia
So every year we would be possibly saving around 80 crores from the urea.
Mr. S. K. Bajpai
That is up to you to calculate. But I have told that around four to five years we will be recovering this cost.
Nirav Jimudia
Sir, also on the industrial product side, are we thinking of any newer products or expansion into the existing product line? Because HX plant has been consistently operating at around 100%. So are we thinking any expansion there or introduction of any newer products.
Mr. S. K. Bajpai
In the IP segment? We have painted one BCG consultant Bustan Consultancy Group and they are in process of preparing this 10 year growth strategy and roadmap for GSFC. So we have the already acquired the land at Dahij. So any facilities, further facilities of IP products will be put in there. So here in Fertilizer Nagar complex there is hardly any space available to put any new facility. So now we are going to shift our production facilities at the edge. So as for this report, final report of the BCG and getting approval from the board we will execute this start of the putting new facilities in the IP segment.
Nirav Jimudia
Okay, so is this expected in next 6 to 12 months this final report or it would take a slightly longer?
Mr. S. K. Bajpai
No, no, it will come in the next six to 12 months. I think the report will be there.
Nirav Jimudia
And also sir, this BCG what we have hired is only for helping us in the growth path. Or would they also be helping us in terms of reduction in some of the operating cost?
Mr. S. K. Bajpai
Yeah. In both the safe operational efficiency also they are advising us. So whenever there is a gap, so we we are filling the gap and operational efficiency will be achieved. And this growth strategy is also. They are submitting their report.
Nirav Jimudia
Okay. Okay. So the areas for improvement in the operational efficiencies have been identified or they are yet to be identified?
Mr. S. K. Bajpai
Sir, they have been identified. There are certain low hanging fruits which we have already in the process of implementing. However there are certain midterm and long term. So that will be executed as per the scheme and implementation of scheme in the near six to month to one year time.
Nirav Jimudia
Correct? Sir, Any quantification in terms of benefits? If you can share, is it possible to share in terms of any quantitative benefits which could happen to us on a annual basis? Any thoughts?
Mr. S. K. Bajpai
At least 40, 40 crores of operational efficiency. They have identified certain schemes and that will be achieved by the company in the near future.
Nirav Jimudia
Got it sir. Got it. Thank you so much sir.
operator
Thank you. As there are no further questions from the participants I now hand the conference over to Mr. S.K. bajpai from GSFC Limited for closing comments.
Mr. S. K. Bajpai
Yeah. Thank you for this break for the very good questions and elaborate to questions on the performance of the company. It is pleasure to talk to all of you and thanks again for participating in this conference. Thank you very much.
operator
Thank you on behalf of GSSC limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.