GNFC awards Rs. 360 crore contract to Toyo Engineering India to build Ammonium Nitrate–II plant, nearly doubling production capacity.
Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) has taken a significant step toward strengthening India’s industrial chemicals and fertilizers ecosystem by awarding a major engineering contract worth approximately Rs. 360 crore to Toyo Engineering India Private Limited. The contract covers the installation of a new Ammonium Nitrate–II manufacturing facility at GNFC’s existing complex, marking one of the company’s most important recent capacity expansion initiatives.
Under the agreement, Toyo Engineering India Private Limited will execute the project on an LEPC (Licensing, Engineering, Procurement, and Construction) basis. The proposed plant will have a production capacity of 480 metric tonnes per day (MTPD), equivalent to around 163,200 metric tonnes per annum (MTPA). Once operational, the new unit will significantly augment GNFC’s current ammonium nitrate output and enable the company to meet rising domestic demand from sectors such as fertilizers, mining, infrastructure, and industrial chemicals.
A key aspect of the project is the deployment of advanced process technology and licensing provided by INCRO, S.A., a Spain-based technology licensor with expertise in ammonium nitrate solutions. By integrating INCRO’s proven and modern technology, GNFC aims to ensure higher operational efficiency, improved product quality, and enhanced safety and environmental performance. The use of internationally recognized technology also positions the new plant in line with global best practices for downstream chemical manufacturing.
With the commissioning of the Ammonium Nitrate–II plant, GNFC expects to expand its existing ammonium nitrate production capacity by nearly 94 percent. This substantial increase underscores the company’s long-term strategy to scale up domestic manufacturing, reduce reliance on imports, and maintain supply stability for critical industrial inputs. The expansion is particularly relevant at a time when India’s infrastructure development, mining activities, and agricultural requirements are placing sustained demand pressure on ammonium nitrate availability.
From a strategic perspective, the investment reinforces GNFC’s commitment to strengthening its footprint in the domestic market while supporting national industrial priorities. By executing a large-scale project within India using advanced but localized engineering and construction capabilities, GNFC is contributing to the broader objective of enhancing self-reliance in the chemicals and fertilizers sector. The project also aligns with the government’s emphasis on value addition within the country and the creation of skilled employment opportunities across engineering, construction, and plant operations.
Environmental considerations form another important pillar of the initiative. The adoption of modernized downstream operations and efficient process technology is expected to help reduce emissions, optimize energy usage, and improve overall resource efficiency. GNFC has consistently emphasized sustainable manufacturing practices, and the new ammonium nitrate facility is designed to align with these environmental and safety commitments.
Overall, the Rs. 360 crore contract awarded to Toyo Engineering India represents more than a routine capacity addition. It reflects GNFC’s forward-looking approach to industrial growth, technology adoption, and sustainability. Once completed, the Ammonium Nitrate–II plant is expected to enhance GNFC’s competitiveness, strengthen supply chains for key industries, and support India’s broader economic and industrial development goals
