Transportation

logistic &

Material chain Handling in IFFCO

MASTER OF BUSINESS ADMINISTRATION

.

PREFACE

With my project Transportation, Logistic & Material Chain Handling in IFFCO Aonla unit, I spent eight (8) weeks as my training period and learned a lot of things, so I feel that practical training is very important for professional course. Despite all the limitations and o stacles, I have put my efforts and hard work to make the o jective accomplished in stipulated time. I have come across difficulties to make this project a reality, ut with the e!treme support of my guide, I have completed it successfully. "he purpose of this project is to know a out the #$% policy of Indian industry how companies designing and organi&ing need' ased training programs. While doing this project I reali&ed that the things learned from the ooks are (uite different from the actual practice. In today)s cut throat competition scenario has een changed. #ompanies are adopting new policy to survive in market. In order to cope with the industry demand and technological advancements, we need to develop #$% strategy for uilding a reputation of the company and to retain employee. #$% is referred to as a method to give the new entrant or an e!isting employee the skills, knowledge and attitude needed to perform the jo . #$% strategy helps to uild healthy relation with society and with the employee. #$% maintain goodwill of the company. * +ood reputation make it easier to recruit employee and simultaneously it help to retain the employees. #$% can make more competitive and reduces the risk of sudden damage to reputation. #$% strategy has een found to e greatly suiting to uild up ongoing relationship with community and usiness leader. ,elp to enhance the image and visi ility of the company and its products. *t last I have given suggestions and recommendations to enhance the future growth and prospect of the company.

ACKNOWLEDGEMENT

.!pression of sincere gratitude is just a partial acknowledgment. "he accomplishment of this project /Transportation logistic &Material chain Handling in IFFCO0 would have not een possi le individually without the encouragement, assistance 1 valua le support from various sources. 2y voca ulary falls short of word to e!press my sincere gratitude to Mr. sanjee se!ena "personal o##icer$ under whose guidance I had the opportunity to carry out the present work. I am also very thankful to Mr. %. &alia, Chie# Manager "Training $ 1 Mr. &.&. 'ande(, %(. Manger "Training$ who supported me 1 helped me throughout the project. I am also thankful to Mr. )ogish &u*ar 'undir and Mr. A.&. Mishra, who provided me with relevant information and spared their precious time with me. I am thankful to 3inance 1 *ccount staff 1 to all the employees of I33#4 who cooperated with me during my training period. I 4W. * D..5 $.6$. 43 +%*"I"7D. "4 *88 ",. %.$546D.6"$ W,4 +*9. 2. 9*87*:8. I634%2*"I46 34% ",. 5%4;.#".

DECLARATION

<

I, sohan lal a student of 2:* of +c*t ,areill( (%ecogni&ed y *I#"., 2inistry of ,%D, +ovt. of India) do here y declare that the project report entitled Transportation logistic & Material chain Handling in IFFCO Aonla unit that has een su mitted y me as a re(uirement for the award of degree of Masters o# -usiness Ad*inistration training period was -= .une to /0 jul( /123. "he summer project on Transportation logistic & Material chain Handling in IFFCO Aonla unit in IFFCO AO4LA, 5'. at -areill( is the original work done y me. "his is the property of the Institute and use of this report without prior permission of the institute will e considered illegal and actiona le.

%ate6

7ignature6 6ame> sohan lal %oll 6o> ?-?@-ABB<C 2:*

42 YEARS OF CO-OPERATIVE GLORY

IFFCO AONLA PLANT

O,jecti es

 To pro ide a co*plete o er ie8 o# IFFCO "Indian Far*er Fertili9ers Cooperati e Li*ited$ To pro ide a clear picture o# products o# IFFCO. 'ro ide the in#or*ation o# distri,ution channel o# products at di##erent parts o# countr(. To +no8 arious sche*e #or #ar*ers pro ided ,( IFFCO through F7C #ar*er ser ice centre. To stud( the use o# di##erent t(pes o# logistics #or #ul#ill*ent o# de*and.

TA-L: OF CO4:4T7

CHA'T:; <2 I4T;O%5CTIO4

O er ie8 o# IFFCO in I4%IA. :*ergence o# de*and o# #ertili9er. CHA'T:;</ =I7IO4 & A'';OACH o# IFFCO COMMITM:4T & MI77IO4 o# IFFCO.

CHA'T:;<3 ';O%5CTIO4 %:'A;TM:4T

CHA'T:;<0 'roducts o# IFFCO. Major ,(<products o# IFFCO.

CHA'T:;<> Co*petitors

CHA'T:;<? Mar+eting 'olicies

CHA'T:;<@

Co*plete details o# di##erent units &A4%LA 54IT &ALOL 54IT 'H5L'5; 54IT AO4LA 54IT 'A;A%::' 54IT OMA4 54IT

MA.O; AAA;%7 ;:C:I=:%

CHA'T:;<B IFFCOCs pro*otional progra**e #or #ar*ers . %e*onstration. Field da(. Crop se*inar. Agricultural and social co*paign. Training and isit. Ad isor( co**ittee *eeting. 7oil testing. Multiplication. 'ro*otional and pu,licit( acti ities.

CHA'T:;<D %istri,ution channel. Ero8th o# cooperati e *e*,ership Ape! #ederationF'ACFInstitutional agencies 'roposed distri,ution channel polic( CHA'T:;<21 Aarehouses

CHA'T:;<22 Transportation ;ail8a(s ;oad8a(s Logistics

CHA'T:;<2/ Eo t. 'olicies related to the IFFCO.

CHA'T:;<23 Findings and li*itation.

CHA'T:;<20 7uggestions and reco**endations

CHA'T:;<2> Conclusion

CHA'T:;<2? -i,liograph

I4T;O%5CTIO4 A-O5T IFFCO

During mid' si!ties the co'operative sector in India was responsi le for distri ution of AB per cent of fertili&ers consumed in the country. "his sector had ade(uate infrastructure to distri ute fertili&ers ut had no production facilities of its own and hence dependent on pu licEprivate sectors for supplies. "o overcome this lacuna and to ridge the demand'supply gap in the country, a new cooperative society was conceived to specifically cater to the re(uirements of farmers. "hus was orn I33#4, the world)s largest fertili&er cooperative. It 8as a uniGue enture in 8hich the #ar*ers o# the countr( through their o8n co<operati e societies created this ne8 institution to sa#eguard their interests. Indian 3armers 3ertili&er #ooperative limited, a multi'state #ooperative has emerged as a role model for cooperatives 4ver @- years of its inception, I33#4 has turned into a true #ooperative F 4f the 3armers, :y the 3armers and 3or the 3armers Indian 3armers 3ertili&er #o'operative 8imited (I33#4) was registered on 6ovem er <, ?CDA as a 2ulti'unit #o'operative $ociety. 4n the enactment of the 2ulti state #ooperative $ocieties *ct ?C8@ which was amended in -BB-, the $ociety is deemed to e registered as a 2ulti state #ooperative $ociety. "he $ociety is primarily engaged in production and distri ution of fertili&ers. "he yelaws of the $ociety provide a road framework for the activities of I33#4 as a #ooperative $ociety. * pioneer in this field, I33#4)s growth reflects its elief in the strength of the farmer. $everal prestigious awards stand testimony to the fact that I33#4 is driven y its values and the dedication of its people. "his is an organi&ation that elieves in fair play and has always followed transparent and professional practices in corporate governance.

?B

'ro isional highlights o# IFFCOCs per#or*ance during /122<2/

Highest 'roduction o# Fertili9ers (Previous Best 70.12 lakh MT in 2006-07) Highest 'roduction o# 5rea (Previous Best 39.63 lakh MT in 2007-08) 'roduction o# 4'&F%A'F4' (Best 32.26 lakh MT in 2006-07) Highest 7ales o# Fertili9ers (Previous best 93.2 lakh MT in 2007-08) Highest 7ales o# 5rea (Previous best ! .29 lakh MT in 2007-08) Highest 7ales o# 4'&F%A' (Previous best 38.9! lakh MT in 2007-08) Highest Turno er (Previous best "s.12163 #rore in (2007-08) 'lant 'roducti it( (Best 1669 MT in 200!-06) Highest Mar+eting 'roducti it( (Previous best 61!8 MT in 2007-08) Co*posite :nerg( Consu*ption $o%est !.907&#al ' MT in 2007-08)

@2.?B la+hs MT

01.?B la+hs MT

32.11 la+h MT

22/.33 la+h MT

>B.0D la+h MT

>3.B0 la+h MT

;s 3/B11 crore

23@? MT per e*plo(ee @3B1 MT per e*plo(ee

>.D033 EcalF MT

';O%5CTIO4

??

"he largest producer of fertili&ers in the country, I33#4 has five state'of'the'art plants that ensure its special position. "hese are considered to professionally managed fertili&er plants in the world. I33#4 had set up the G*848 plant for manufacture of 6itrogenous 3ertili&er and G*6D8* plant for manufacture of 5hosphoric fertili&er. "hese plants commenced commercial production in the year ?CA@'A=. . *nother ammonia ' urea comple! was set up at 5hulpur in the state of 7ttar 5radesh in ?C8?. "he ammonia ' urea unit at *onla was commissioned in ?C88. *s part of the new vision and in order to augment its comple! fertili&er manufacturing capacity, I33#4 ac(uired D*5E65GE65 plant in 5ara deep, 4rissa in $eptem er -BB=. "his was a historic moment, for it was the first private sector unit to e ac(uired y any Indian cooperative. "he 5aradeep unit was e!pected to achieve an optimal production load during -BB8'BC. During -BBA'B8, I33#4)s plants rolled out D8.@A lakh tonne of fertili&er material comprising <C.D< lakh tonne of urea and -8.8@ lakh tonne of 65GED*5E65 which ears ample testimony to its superlative performance. I33#4)s market share in H6) production is -B percent and -= percent in 5 -4= produced in the country. I33#4 has initiated energy saving schemes in all its five ammonia plants at a cost of %s. @?B crore. e among the est

MA;&:TI4E A4% %I7T;I-5TIO4

* strong marketing team and a sound distri ution network make the ottom line secure. :acked y this elief, I33#4 has gone all out to e!tend its reach, resulting in the highest'ever sales of fertili&er material this year. With the completion of Galol .!pansion 5roject, I33#4 is all set to reali&e the o jective of producing ?BB lakhs tones of fertili&ers, there y attaining the distinction of world leader in fertili&er production. .very fourth ag of fertili&er produced and every third ag of fertili&er sold in the country elongs to I33#4. *round @B,BBB cooperative societies and ?DA 3armers $ervice #enters spread across -C states and union territories in India make sure that I33#4)s products' 65GE65ED*5E7%.*'are easily availa le to farmers.

?-

"hese impressive figures have een made possi le largely ecause of the fact that I33#4 distri utes its products through cooperative channels. "hough the cooperative structure may differ from state to state, the goal is to reach out to each district, taluka and village and hence sell more. "his year, I33#4 has dispatched around 8D lakhs tones of fertili&er material from its plants and ports y rail and road. With the aim of delivering to the doorstep of the farmer in all parts of the country, the organi&ation hired storage space at more than ?,ABB locations. I33#4)s 3armers $ervice #enters not only supply material under one roof, they are used as contact points for providing technical know'how to farmers. "hese #enters also organi&e promotional programmers such as soil test campaigns and farmers) meetings. . During -BBA'B8, I33#4 has notched up a record sale of C<.-@ lakhs tones of fertili&er material comprising of =@.-C lakhs tons of urea and <8.C= lakhs tones of 65GED*5E65 witnessing a growth of 8.<I as against 8D.?B lakhs tones in the previous year. :est ever marketing productivity also sprang to D?=8 tonesEhead.

O er ie8 o# IFFCO in I4%IA

It was a moment of pride for every mem er when the 5resident of India in the year -BBA lauded I33#4)s efforts at conserving energy and keeping its consumption at the lowest level. "his 6ational .nergy #onservation *ward -BB8 was among many accolades I33#4 received for its safety and conservation endeavors from 3*I, #II and +overnment of India. "hese awards, interalia, include for :est 5roduction 5erformance, .nergy #onservation and .fficient Water 2anagement to 5hulpur 5lantJ *wards for :est "echnical Innovation, $afety and .nvironment 2anagement to *onla 5lantJ .nergy #onservation and Industrial $afety *ward to Galol 5lantJ and $76 and 6D"9 +reen I" *ward to Gandla 5lant. In addition I33#4 has pocketed /$2*%" W4%G58*#. *W*%D0 in the manufacturing and industrial segment y the prestigious .conomic "imes, *cer Intel $mart Workplace *ward. *t the world communications awards in 8ondon its associate IG$8 has een conferred award for :est #ontent $ervice and :est 5roject 2anagement.

?<

*nother significant event was the laying of the foundation stone of India)s first'ever Gissan $.K ($pecial .conomic Kone) y Dr. L.$. %ajasekhara %eddy, #hief 2inister of *ndhra 5radesh. 3urther, I33#4)s 2anaging Director, Dr. 7.$. *wasthi, received honorary Doctorate of $cience degree from Dr :alram ;akhar, +overnor of 2adhya 5radesh, at the 9ikram 7niversity #ampus in 7jjain. *onla 7nit for the first time has crossed production of -B lakh 2" of urea which is commenda le. 5aradeep has achieved greater laurels y producing more than ?< lakh 2" of 65ED*5 despite shortage of raw material. $ociety has crossed the landmark sales and transportation of over ??- lakh 2" of fertili&ers material registering a sharp rise of -BI over the last year. With this, I33#4 has now ecome the largest marketer of process fertili&ers not only in India ut in the entire world. $ociety has already achieved the sales turnover of a out %s.<-8BB crore during the financial year -BB8'BC. During the year -BB8'BC, the society has entered into a long term agreement with 8.+.6D International for supply of rock phosphate along with e(uity stake. It has initialed an 2o7 with Ga&phosphate, a leading chemical and fertili&er manufacturing company of Ga&hakistan. *nother agreement of intent has een signed with Matar for setting up a 7rea plant.

CO;'O;AT: 7OCIAL ;:7'O47I-ILITI:7

In line with its vision and mission statement, I33#4 has undertaken several social activities in the areas of education, community development, environment protection and horticulture, health careEmedical facilities etc, all with the intent of reaching out to those in need and improving the (uality of their lives. *dopting a village is of paramount importance to I33#4. "he programme started with an o jective to ring a out overall development in the living standards of rural community through integrated rural development with particular emphasis on agriculture development, creation of drinking water facilities, medical and veterinary check up. I33#4 has adopted @<C villages, thus empowering many lives.

?@

*nother scheme that enefits the farmers is $ankat ,aran :ima Lojana, launched y I33#4)s su sidiary, I33#4'"okio +eneral Insurance #ompany 8imited (I"+I). ,ere, farmers are provided insurance against accidents with the purchase of a =B kilogram ag of I33#4 fertiliser. "his reaches out to mem er cooperative societies. "he policy has helped over A,BBB people since its inception in $eptem er -BB?. I"+I also offers customi&ed policies for farmers such as :arish :ima Lojana, 2ausam :ima Lojana and ;anta :ima Lojana. In keeping with its intent of empowering the weaker sections of society, including women, I33#4 presents monthly scholarships to deserving students and also organi&es training programmes for women. "he organi&ation has instituted ?A I33#4 #hairs at agricultural universities and cooperatives. "he emphasis is on current topics in agriculture. I33#4 uses its ?- storage'cum'community #enters for helping people come together and share their e!periences. "he environment is a major concern with I33#4. Its units and townships comprise eautiful landscapes, surrounded y trees. I33#4 is also committed to improving the safety, health and environment of its manufacturing units, in line with international norms. "he Galol, 5hulpur, *onla and Gandla units have een awarded the I$4' ?@BB? certificate for .nvironment 2anagement $ystem. 3urther, the Galol, 5hulpur and *onla plants have received the I$4'CBB? certification for Muality 2anagement. "he I33#4 3oundation has een promoted as the think tank of the organi&ation. Its o jective is to focus on strengthening village level cooperatives in harmony with the law and culture of the country. Indian 3arm 3orestry Development #ooperative 8imited (I33D#), promoted y

I33#4, was given a certificate of appreciation y the "ata .nergy %esearch Institute for its efforts towards good corporate citi&enship. "he #ooperative %ural Development "rust provides practical training to farmers and has organi&ed --C programmes in -BB8, enefiting --,--? farmers.

I4FO;MATIO4 A4% COMM54ICATIO4 T:CH4OLOE)

?=

I33#4 is taking measures to develop we

ased services to provide e!haustive

information on agriculture, fertili&er industry, agro'chemicals, and information on cooperative sector. 3or this purpose, ?B8 touch screen monitor ased 3armers Information Giosks or #y er Dha as in ?B languages have een installed in ?A different states of the country. :esides that, I33#4 has developed and implemented several .%5 solutions and e' commerce solutions for internal use as well as for use in its joint projects. $ome of these solutions have got recognition y Indian as well as y International 2edia +roups. During -BB8'BC, I33#4 has undertaken enhancement of W*6 1 6etwork security for all the plants and marketing offices across the country. $ymantec antivirus server has een consolidated and clients installed on all the machines across the country for protection against virus attacks. In short, we can say that>

I33#4 I$>
?. -. <. 8argest producer of fertili&ers in the country 6o. of 5lant 8ocations > 3ive Installed *nnual #apacity (HBBB 2") a. . c. d. 7%.* 65GED*5 "4"*8 H6) ' @-@-.' @<<=.@ ' -D-8.-

"4"*8 H5-4= ' ?A?-.8

@. 4nly 3ertili&er Institution in the country to produce D8.@A lakh 2" of fertilisers and C<.-@ lakh 2" of sales during -BBA'B8. =. #ontri uted a out -BI to the total H6) and -=I to the total /5 -4=0 produced in the country during the year -BBA'B8.

?D

I4FO;MATIO4 A4% COMM54ICATIO4 T:CH4OLOE)

N N N N N N N N N N Wide *rea 6etwork (W*6) upto *rea 4ffice level with #orporate $erver at Delhi. 9irtual 5rivate 6etwork (956) connecting all 4ffices of I33#4. I5 "elephones availa le upto *rea 4ffice. 2any phones have video facility. *mong first #orporate to successfully implement e'procurement ased on 5u lic Gey Infrastructure, Digital #ertificate under legal framework of I" *#" -BBB. Integrated #orporate enterprise wide *pplications in all *reas like ,%, 3inance, 2arketing, "ransportation, 2aterials, 2aintenance, 5roduction etc. :enefit of 5re'audit annual accounts y ?st week of *pril every year for the last five years. $erver consolidated at ,ead 4ffice and disaster recovery system set up at Galol. *ll $oftware developed organi&ations. y in'house e!pertise, often consulted y other

,%2$, an in'house developed .%5, having -= applications for etter #orporate +overnance and internal workflow. Intranet applications on %ules 1 5rocedures, 6ews, Weather, #rop growing periods, 6otice :oard, "echnical 5apers, "elephone, :lood +roup, $oftware 5roject 2onitoring and ,ardware #omplaints etc. :iometrics *ttendance %ecording $ystem has *onla 7nits. een introduced in 5aradeep and

%uring /122<12/
e9IG*$, 23*$ (2arketing 3inancial *ccounting $ystem), e5*$ (5romotional *ctivities $ystem), e3$# (3armers $ervice #entre *ccounting), e*2 (.nterprise *sset 2anagement) and 542$ (5ort 4perations 2anagement $ystem) have een implemented in 2arketing Division. I33#4 has also provided software support to 42I3#4. I"+I, I#58, IG$8, IG$.K and

?A

MA4AE:M:4T
"he %epresentative +eneral :ody (%+:) which is the +eneral :ody forms the supreme ody that guides the various activities of I33#4. "he %+: consists of> ?. 2em ers of the :oard of Directors. -. 4ne delegate from each of the 2em er $ocieties holding shares of the value of %s.?BB and a oveJ such delegate shall e as per the provisions of the 2ulti'$"*". #ooperative $ocieties *ctE%ules as amended from time to timeJ <. Delegates to e elected from amongst the representatives of 2em er F$ocieties (other than 2em ers holding shares of the value of %s. ?BB thousand and a ove ) in each $tateE 7nion "erritory at the rate of one delegate for every -BB societies or part thereof. ,owever the ma!imum num er of such delegates from any $tateE7nion "erritory at the rate of one delegate for every -BB societies or part thereof shall not e!ceed -=. $uch elected delegates shall e as per the provisions of the 2ulti'$tate #ooperative $ocieties *ctE %ules amended from time to time.

"he :oard of Directors of I33#4 carry out all functions as specified under the 2ulti'state #ooperative $ocieties *ctE%ules. "he :oard of Directors frame policies, direct the various activities of the $ociety.

-OA;% OF %I;:CTO;7 "he Directors of I33#4 #hairperson F $hri $urinder Gumar ;akhar 9ice'#hairperson< $hri 6.5. 5atel

?8

DI%.#"4%$
$hri #handra 5rakash $hri $.8. Dharme +owda $hri Gartick #handra $arkar $hri ,arminder $ingh ;assi $hri 2.+opal %eddy $hri *nkushrao %."ope $hri %ajhans 7padhyaya $hri +.#. 2aikota $hri 9ithal hai ,. %adadia $hri $heesh 5al $ingh $hri %aj Gumar "ripathi $hri :alvinder $ingh 6akai $hri %avindra 5ratap $ingh $hri G. $rinivasa +owda $hri G. $omashekhar %ao $hri $imachal 5adhy $hri 5ramod Gumar $ingh $hri %.G.Dhami $hri :.$.9ishwanathan 2anaging Director F Dr. 7.$.*wasthi Dy. 2anaging Director'cum'2arketing Director F $hri D.G. :hatt Dy. 2anaging Director'cum'3D F $hri %akesh Gapur Director ("echnical) ' $hri 9.G. :ali Director(#oop. Development) F Dr. +.6. $a!ena Director (,%D) F $hri $.G. 2ishra

-A4&:;7
?C

India 4verseas :ank $tate :ank of India :ank of :aroda $tandard #hartered :ank "he 2aharashtra $tate #o'operative :ank 8td. "he West :engal $tate #o'operative :ank 8td. 2adhya 5radesh $tate #o'operative :ank 8td. "he Garnatake $tate #o'operative :ank 8td. "he 5unja $tate #o'operative :ank 8td. "he ,ongkong and $hanghai :aking #o'operation 8td. I#I#I :ank 8td. ID:I :ank 8td.

IFFCO & IC'LHs Chairperson

Mr. 7urinder &u*ar .a+har

2r. ;akhar is a graduate from D*9 #ollege, 5unja 7niversity, and * ohar. 2r. ;akhar is actively involved with the #ooperatives for a out three decades. 2r. ;akhar is on the oards of many cooperatives including those at the grass root level. -B

2r. ;akhar, a renowned cooperator, during his long and illustrious career, has made significant contri ution aimed at accelerating the agricultural and rural development. * widely travelled person, he carries with him rich and varied e!perience in the field of agriculture and cooperation

IFFCOHs=ice<Chairperson

Mr 4.'. 'atel
2r 6atwarlal 5itam ardas 5atel is the 9ice'#hairperson of I33#4. 2r 5atel is a distinguished cooperator from India and is associated with the movement for a out four decades. ,e had een involved with the growth and development of I33#4 for a long time. ,e was a delegate to I33#4 for a out three decades and has een on the :oard of I33#4 for a out ?= years. 2r. 5atel held several state and national positions in reputed cooperative societies. "he $ocieties that have enefited from his services on the :oard of Directors include Grishak :harati #ooperative 8imited, 6ational *gricultural 3ederation (6*3.D), Indian "ourism #ooperative, 6ational #ooperative :ank of India. 2r. 5atel was instrumental in promoting several primary cooperative societies in the state of +ujarat.

O-.:CTI=: OF TH: COM'A4)

"he road o jectives of setting up this venture>' ?) 5roducing fertilisers. -) 5romoting the fertilisers distri ution system in the co'operative sector. <) .nsuring availa ility of fertilisers at the farmer)s doorstep. @) #reating scientific awareness among farmers.

-?

=) 5romoting nation)s growth through modern family techni(ues. D) Improving agricultural productivity through alanced fertiliser application. A) $trengthening cooperation distri ution system. 8) "o promote the activity for enriching the life of the rural.

I33#4 has grown steadily since its inception today. It has emerged not only as the largest fertiliser producing organi&ation in India operative. I33#4 started with two modern plants at a cost of %s. CAD million. 4ne ammonia and urea comple! at Galol and 65G plant at Gandla oth in +ujrat. ut also *sia)s largest fertiliser co'

IFFCOCs MAI4 AIM /$trengthening

management and participatory character of the Indian #ooperative

2ovement y using duly tested and appropriate consultancy, advisory and technological interventions sourced from within the country and a road and in accordance of the #ooperative 5rinciples and in harmony with the law and culture of the land.0

--

O;EA4I7ATIO4 CHA;T OF IFFCO

:oard of Directors

#hairman 1 9ice #hairman

2anaging Director

-<

Dy.2D' cum' 2ktg. Director

Dy.2D' cum'3inance Director

Director "echnical

Director (,%D)

Director (#oop. Development)

:*ergence o# de*and o# #ertili9er

3ertili&er consumption depends on various factors. "hese include agricultural related factors such as geographical aspects, calamities, rainfall and irrigation pattern, soil (uality, farming methods, availa ility of technology and information, varieties and (ualities of seed as well as access to capital and other inputs. *dditionally, fertili&er consumption depends on more macro oriented factors such as market force and policies regarding demand supply. "he introduction of high yielding varieties of seeds and the greater awareness of the enefits of fertili&ers' spread out through government initiated e!tension networks that started in the ?CDB)s'significantly spurred the production and consumption of fertili&ers. *s shown in ta le fertili&er consumption more than dou led etween ?C8B and ?CCB"he optimal mi! of fertili&er components depends on the variety of seeds to e grown and the soil (uality specific to the region. "o assure more efficient use of fertili&er the government -@

has promoted the setting up of soil testing la oratories throughout the country. ,owever, more recently in the progress of li erali&ation, industry policy and su sidy scheme moved towards supporting nitrogenous fertili&ers relatively more than phosphatic and potassic fertili&ers. (5rasad et al., ?CC@J su iah, ?CC@) this has led to a shift in the consumption of nutrients away from a generali&ed ideal fertili&er alance of @>->? 65G to a ratio of =.C>-.@>? 65G in ?CC?'C- and further to 8.=>-.=>? 65G in ?CC='CD reducing the economic and ecological productivity of fertili&er su stantially. Demand projections for fertili&er consumption up to the year -BB?'B- are presented in ta le. Due to continued increase in population and food re(uirements, demand for fertili&er is e!pected to further grow at a optimistically sta le mi! of nutrients (D.8>-.?>? 65G). "his will help to su stantiate agricultural growth.

TA-L:6 Fertili9er consu*ption, i*ports and su,sidies

)ear ?CAB'A? ?C8B'8? ?CCB'C? ?CC?'C?CC-'C< ?CC<'C@ ?CC@'C=

Consu*ption "*illion tonnes$ -.-D =.=?-.== ?-.A< ?-.?D ?-.<A ?<.8<

I*ports "*illion tonnes$ B.D< -.AD -.AD(?.<<) -.AA(?.-@) -.C8(B.8D) <.?A(?.-8) <.?-

7u,sidies ";s.*illion$ 6a =,B=B @<,8CB @8,BBB =A,CDB @<,CCB =-,@?B

-=

?CC='CD ?CCD'CA

6.*. 6.*.

6.*. 6.*.

D-,<=B DB,C<B

$ource> center for monitoring the Indian .conomy(?CCD) 6um ers in parentheses give import (consumption) of potassic fertili&erJ 6.*.'not applica le.

TA-L: 6 %e*and projections<Fertili9er (million tones of nutrients)

Lear 6itrogen(6) 5hosphate(p-B=) 5otassium(k-B) "otal ?CCA'?CC8 ??.B <.@D ?.== ?D.B? ?CC8'?CCC ??.@ <.=D ?.D= ?D.DB ?CCC'-BBB ??.A <.D@ ?.A?A.?B -BBB'-BB? ?-.? <.A? ?.AA ?A.=A -BB?'-BB?-.@ <.AA ?.8?8.B< ** growth <.BI -.-I @.?I <.BI $ource> triveni (?CC8) ** +rowth' average annual growth rate calculated as compound growth.

CHA'T:;6</

=I7IO4 OF IFFCO =I7IO4 /12/

,aving accomplished the o jectives envisaged in /vision-BBB0and0mission'-BB=0 I33#4 em arked on /vision-B?B0 which focuses on future growth and development of the society and aims at> *ttaining an annual turnover of %s.?=,BBB crore y -B?B. -D

Installation of *mmonia and 7rea plants including ac(uisition of fertili&er units. :ackward integration to meet feed stock re(uirements such as 5hosphoric acid, 6atural gas etc.

+eneration of 5ower 5roduction and marketing of micro'nutrients, seeds, io'fertili&ers, pesticides etc. 9alue addition to agri'products and marketing Information technology and I" ena led services .as lishment of retail chain in ur an and semi'ur an locations. Diversification into new growth areas such as mo ile telephony 1 communication. "echnology in the rural areas.

7nder 9ision -B?B,I33#4 has set up a power generation company in #hhattisgarh and formed a joint venture to manufacture 5hosphoric *cid in .gypt

A'';OACH

"o achieve our mission, I33#4 as a #ooperative society, undertakes several activities covering a road spectrum of areas to promote welfare of mem er cooperatives and -A

farmers. "he activities envisaged to e covered are e!haustively defined in I33#4)s :ye' laws.

COMMITM:4T

4ur thirst for ever improving the services to farmers and mem er co'operatives is insatia le, commitment to (uality is insurmounta le and harnessing of mother earth)s ounty to drive hunger away from India in an ecologically sustaina le manner is the prime mission. *ll that I33#4 cherishes in e!change is an everlasting smile on the face of Indian 3armer who forms the moving spirit ehind this mission.

MI77IO4

?. "o provide the farmers high (uality fertili&ers in right time and in ade(uate (uantities with an o jective to increase crop productivity. -. "o make plants energy efficient 1 continually review various schemes to conserve energy.

-8

<. #ommitment to healthy, safe environment and forestry development to enrich the (uality of community life. @. #ommitment to social responsi ilities for a strong social fa ric. =. 3oster a culture of trust, openness and mutual concern to make working a stimulating and challenging e!perience for stake holder. D. "o ac(uire, assimilate and adopt relia le, efficient and cost effective technologies. A. "o ensure growth in core and non'core sectors

CHA'T:;<3
';O%5CTIO4 %:'A;TM:4T
I33#4 *onla is town to production of 7rea. It is carried out with the help of two ammonia plants. 3or every ammonia plant there are two urea plants each of ??BB 2"5D capacity. 7rea 5lant is linked with two product handling plants. $o, we can study the production department into three parts as follows> ?. *mmonia 5lant -. 7rea <. 5roduct handling 5lant

A**onia 'lant6
*mmonia plant is designed to produce ?<8B 2"5D li(uid ammonia ased on ,aldore "opsoe 5rocess with 6atural +as the main raw material. 3or the production of *mmonia ,ydrogen 1 6itrogen are re(uired in the ratio <>?. "he source of hydrogen is 6atural gas, water and the source of nitrogen is atmospheric air. 6itrogen gas is supplied y +*I8 through ,:; pipe line from :om ay ,igh and is used as feed stock which contains large percentage of 2ethane, along with .thane, 5ropore, :utane, 5entane, #4-, 6itrogen -C

and $ulphur compounds. $mall (uantity of $ulphur compound in the gas is removed y passing the gas through de'sulphurisation unit. $ulphur free gas is yhan mi!ed with steam and sent to primary reformer where reforming reaction takes place in the presence of catalyst and produces a gaseous mi!ture of hydrogen, car on mono'o!ide and car on' dio!ide. 3urther reforming takes place in the secondary reformer where air is added to furnish the nitrogen re(uired for ammonia synthesis. ,ot reformed gases from $econdary reformer are cooled y heat recovery in Waste ,eat :oilers, and introduced in the shift #onverters where most of the #4 get converted into #4-. #ar on dio!ide from gaseous mi!ture is separated in #4- a sor er using enefield process and sent to urea plant. %esidual of o!ides of car on in synthesis gas leaving a sor er are converted to methane in the 2ethanator. 5ure synthesis gas from methanator e!it is compressed and sent to *mmonia converter where ammonia is formed ammonia product o tain in sent to urea plant for manufacturing urea.

5rea 'lant6
"wo streams of 7rea plant each having capacity of ?BB 2"5D has een provide. 7rea process is ased $namprogetti *mmonia $elf $tripping process. *mmonia and #4- o tain from 6,< plant are sent to 7rea %eactor operating at ?=B *"2 pressure and ?8Bo # temperature. In urea %eactor *mmonia and #4- react to form *mmonium #ar onate a part of which dehydrates to urea. %eactor product from urea reactor flow to a steam heated ,.5 stripper where most of them converted car onated get stripped of as gaseous ammonia and #4$. 7rea solution having the ottom of stripper still contains some amount of car onate. 3urther purification of urea to a out A- I concentration takes place in medium and low pressure decompresses. 9apors of ammonia and #4- o tained from the a ove purification section are converted into ammonium car onate and recycled ack to 7rea %eactor for production of 7rea 9acuum concentration are provided to concentrate A- I 7rea solution to CC.8 I in two stages operating at B.< atm

<B

and B.B< atm respectively. 7rea melt (CC.8 I concentration) from the concentration section is pumped to the top of natural draft 5rilling "ower and sprayed y the means of rotating prill ucket. "he fine droplets while descending through the lower come into contact with cold air are solidify to form prills. 5roduct 7rea from the ottom of prilling tower is sent to 7rea $ilo or 5roduct handling plant.

'roduct Handling 'lant6

,omogeneous and freely flowing urea from the ottom of 5rilling "ower is transported to 7rea silo y means of elt conveyors at the rate of --B "5D. "hree weeks factory production e(uivalent to @=,BBB 2" can e stored in 7rea $ilo. "his ensured uninterrupted 7rea 5lant operation even when there is no off take for product urea due to non'availa ility of railway wagons or irregular seasonal defacilities. . "he system is e(uipped with Data logged facility which can display and record various figures and fact from the plant. "he field ags from these automatic agging machines are moved on slate conveyor and mouth is closed y industrial stitching machine supplied y 2E$ 7nimee, #alcutta. "he product in filled ags can e transported for various purposes such as> ?. $tacking on filled ag storage. -. 8oading directly into truck. <. 8oading directly into wagons

5roduct handling plant is designed to load a rack of -,@BB 2" of fertili&er in 8 hrs. 5lant is e(uipped with covered platform three in num er. 4ne for stacking filled ags which can store e(uivalent to - rack loads i.e. =,BBB 2" and another two platform which are e(uipped with D 6os. of automatic wagon loader ( < on each platform ), each has capacity of automatic loading of wagons at the rate of ?,-BB ags per hr. "hese < covered platforms are

<?

sufficiently long to accommodate a complete rack so as to load from filled ags storage as well as directly from agging stations. "hese automatic wagon E lorry loading machines are supplied y 2E$ 2ollers, West +ermany. *verage time taken for each wagon loading is -B to -= min. *n average time in loading a lorry is ?B to ?- min only. Wagon on average will carry @=B ags i.e. more than on an average two truck carry. * truck on an average will carry -BB ags appro!imately.

:*pt( -ags6
.mpty ag)s si&e is <D.-= in inches or C?= O D?B in mm, weighing ?<B grams in case ,D5. ags made out of ?B O ?B mashes per inch using. Denier of tape e(ual to ?,BBB and width of tape ?.= mm. "he monthly re(uirement of ag is around <D 8akhs. "here are -.? million ag storage capacities in ?@BB m- area. "he cost of ags varies from %s ??.@B to ??.CB for ,D5. and around D.= for ;ute ag. "he ag will e supplied various vendors ased at Ganpur, #alcutta, ,ydera ad, *hmada ad, *uranga ad etc. "he movement of empty ags from these destinations to outside is y road. *verage daily traffic will e two to three trucks. I33#4 has very strict (uality control of ags. "he ags once are ready for dispatch from vendor)s workshop are got inspected y various up to date inspection agencies sponsored y us. "he consignment on its arrival at site is also screened y our 8a oratory efore it is piled for storage. $torage is e(uipped with .4" crimes two in num er, each having lifting capacity of ? tonne.

MAT:;IAL CO%I4E
It is very typical for the every organi&ation to maintain the stock items in case of large num er of items. It will e very typical to identify them at the time of re(uirement. $o the items are coded to avoid confusion. 3or the coding of materials the account person

<-

assigns code for every item of store. "hus every item has a code that is called its material code. 2aterial coding facilitates the account persons and store manager to maintain the transactions of the items whether of receiving or of issuing. .very item maintained y its code in the stock as well as in the store accounting section. "he itemEmaterial code remains same in stores and accounting section. Whenever a transaction is done in store for the inventories the full details of that transaction is send to store accounting section also, ecause the computers of stores and accounting section are connected through 8ocal *rea 6etwork. (8*6) In this way it is very comforta le task to maintain the inventories on the inventory software with the help of material coding.

Ad antages o# codi#ication
?. 8engthy descriptions are replaced y a simple code. -. It economi&es space in forms and reduces clerical work. <. .ase in identification of stores. @. It is comprehensive. =. It facilitates, mech

CO%I4E
"here are different types of coding that are as follows> a) 4u*eric: .ach item is given a num er. ) Alpha,etic: .ach item is denoted y a com ination of alpha ets. If the alpha et selected indicates the inventory sound when it is pronounced, it is known as mnemonic system. "his helps in remem ering the codes. c) Alphanu*eric: It is a com ination of alpha ets and numeric code.

<<

d) %eci*al 7(ste*: It is asically a numeric systemJ su 'group may e indicated y decimals. In I33#4 2/ digits coding is done. "he various codes for the different materials are as follows> ?. -. <. =. *mmonia F ?? 7rea 4ffsite ' ?' ?<

@. 5roduct handling '?@ 5ower plant '?= / digits P for the plant location 3 digits P for the e(uipment 3 digits P for the material 3 digits P for the si&e and 2 digit P for the item identification.

'ac+ing & %ispatch

*ll packing, o!ing and protection shall conform to the specification or re(uirements of the order. "he supplier shall e held lia le for the damage or reakage of the goods due to defective or insufficient packing. It will e according to term and conditions that are given already in the format. *ll goods shall e dispatched y railEroad freight paid and the railway receiptElorry receipt shall e posted to the concerned officer of I33#4. <@

%OC5M:4T ;:I5I;:% FO; TH: %I7'ATCH OF EOO%7

3ollowing documents are re(uired for the dispatching of materials> #hallan 5acking list "est certificate %ailwayE 8orryE *ir #onsignment note < copies < copies < copies @ copies

;ail8a( 7iding6
3rom main track of #handausi' :arely road (uage, 6% section tapping has een taken at :isharat +anj %ailway, "ake'up station. "wo additional loop lines and simultaneous reception facilities have een incorporated at "ake'up station. %ailway track has een laid which is BC.<8 km long through major one villages ac(uiring ??B acre appro!. of land. In plant, yard forms -.< km in length and is e(uipped with> I. < loading lines (from ABB'A?= meter in length). <=

II. III.

@ lines for dealing incoming and outgoing traffic (from A?='8B< meter long). ? .ngine escapes line (D8= meter long).

In addition to it, the plant has> a. - lines each <@B meter long accommodating one rake length for fuel oil stock. "hese lines are laid over allast less platform and have concerts floor in order to recover spillage E leakage while handling fuel oil stock. . - line each <@B meter long to accommodate off loading of completing 6aphtha rake, an alternative fuel for power plant.

6 5 4
3.21 3.22

E;OATH Urea I4 ';O%5CTIO4 CA'ACITI:7

NPK/DAP
3.69 3.69 3.69

4.34

4.34

4.24 3.69

3 2 1 0
0.42 0.89 0.4 0.88 0.42 0.42 0.88 0.89 1.62

2.34

2.49 2.42

1.97 1.6 0.88 0.88 0.88

2.19

<D

CHA'T:;<0

8000 7000 6000 5000 4000 3000 2000 1000

COMPLEX

UREA

TOTAL

7012

7168 6847

6435 6154

';O%5CTIO4 ':;FO;MA4C:

3714

3718 2717

3786 3226

3963

4068

2884

3100

2440

<A
2004-05 2005-06 2006-07 2007-08 2008-09

HIEHLIEHT7 OF /122<2/
5roduction of 3ertilisers A.?A 2illion 2"

(5revious est A.B? million 2" in -BBD'BA) ,ighest $ales of 7rea 1 65GED*5 ??.-D 2illion 2" (5revious est C.<- million 2" in -BBA'B8) 5rofit :efore "a! 7$D CD.B8 2illion

(:est 7$D ?DA.-? million in -BB-'B<) 5rofit *fter "a! in -BB-'B<) ,ighest "urnover -D@@.BC million in -BBA'B8) 7$D A?=C.@? 2illion (5revious est 7$D 7$D A8.-D 2illion (:est 7$D ??=.@@ million

<8

CHA'T:;<0
'roducts o# IFFCO
I33#4)s product range initially includes three 65G vi N 65G F F F N N N D*5 7%.* 65G'I (?B>-D>-D) 65G'II (?-><->?D) 65' (-B>-B>B)

(?8>@D>B) (@D>B> B)

*2246I*

Major ,(<products o# IFFCO

N :io'fertili&ers F F F F %hi&o ium *&oto acter 5$2 *&ospririllum

<C

Function o# 4itrogen "4$

It is essential component of proteins, amino acids, protoplasm, nucleic acid, en&ymes co'en&ymes and alkaloids. It is a part of chlorophyll which is essential component of 5hotosynthesis. It improves the (uality of leafy vegeta les and fodders and protein content of food grains.

Functions o# 'hosphorus "'$

It is a part of several compounds including oils and amino acids, phospholipids, *"5, *D5. *"5 and *D5 are the energy currency of the plant. It is essential for growth, cell division, root growth and lengthening, stimulates flowering ,seed and fruit development and early ripening.

Functions o# 'otassiu* "&$

It regulates the opening and closing of the stomata which is essential for photosynthesis, water and nutrient transport and plant cooling. It increase root growth and improves drought tolerance. It activates many en&ymes system. It plays a major role in transport of water and nutrient throughout the plant in !ylem. It reduces lodging of crops and enhances their winter hardiness and drought resistance. It help retard crop diseases. %educes respiration, preventing energy losses.

@B

-IO<F:;TILIJ:;7
"he term :io'fertili&er is made up of two words, :io means living and /fertili&er0 means a product which provide nutrients to the crop. :ut as a product io' fertili&er does not contains any (uantity of nutrients in itself. :io 'fertili&er contains mainly live acterial or fungal cells, which on application help in fi!ing or solu ilising the nutrients from air or in soil.

B ! - " e r# $ % e r & B " '

N it o g e ! f i% i! g B io & f e r t ilis e r " N BF # ' h o s p h a te , o b ilis i! g B io f e r t ilis e r "' , B F # ' h o s p h a te ) o lu b ilis e r ' h o s p h a te a b s o rb e r * A & m + c o r r h iz a " *A, #

N B F fo r Legum e R h iz o b iu m

N B F fo r $ e r e a ls A A A A B

z o s p ir illu m B a c illu s z o to b a c to r ' seu(om o!as c e to b a c te r A s p e r g illu s z o l la lu e r e e ! A lg a e " B A#

@?

';O%5CTIO4 OF -IO < F:;TILI7:;7

#4%D." ' 5,7857% 1 G*848 (*nnual #apacity A= 2" 1 ?D= 2") (Mty in 2")

7T;AI4 %hi&o ium *&oto acter 5$: *&osprillium *ceto acter "otal 5roduction #apacity 7tilisation (I)

/11@<1B /11B<1D /11D<21 /121<22 /122<2/ A.<A ?-B.-B ?A-.AA 8.<D <B.@< <<C.?< ?@?.<B ?8.AD ?=C.-8 --8.@?@.8D C.8B @<?.??AC.D< C.CA ?=8.BD -B@.BB <.D= ?8.=C <C@.-A ?D@.-8 ?A.-= ?D8.8-??.B? ?-.@C =.=C @?=.?D ?A-.C8 ??.A --@.AD -8@.B8 A.B< -.<= =-C.C? --B.8B

AAT:; 7OL5-L: F:;TILI7:;7

@-

Increase in area under drip irrigation Demand for ?BBI water solu le fertili&ers are increasing in the country "he present demand is mostly eing met y imports I33#4 has successfully produced ?D= 2" of 7rea 5hosphate during the year -BB8' BC at its %1D 8a at Gandla 7nit

Chapter<> COM':TITO;7 Indian Fertili9er Industr(

"he Indian fertili&er industry with a capacity of ?-? lakh 2" of nitrogen and =D lakh 2" of phosphatic nutrient, is one of the largest in the world and has over the years, played a significant role in the development of agriculture in the country. 3ertili&er consumption in India is among the highest in the world, though we rank low in comparison to most of developing and some of developed countries in terms of intensity of consumption. 3ertili&er consumption in India has een stagnant in the last few years. :ut, with increased focus of the government towards agricultural growth, consumption levels are e!pected to pick up. $uccessful implementation of government programmes like the :harath 6irman programme etc. which aims at an additional ?B million hectares under irrigation could help increase fertili&er consumption in the long run. "he main issues confronting the fertili&er industry at present are with regard to feedstock and the uncertain policy environment. @<

"he industry is dependent to a large e!tent on gas for 7rea production and 5hosphoric acid for production of D*5 and other phosphatic fertili&ers. With limited reserves of gas in the country and the power sector also vying for an increased share, the fertili&er industry is faced with acute shortages. 3ertili&er units and gas companies have not een a le to reach an agreement over the pricing of gas and very few long term gas supply agreements have een signed. With the government policy favouring conversion to gas ased units, the demand for gas is only e!pected to go up. We had in our initial report on the sector, mentioned three strategies for growth of the domestic fertili&er sector, one of them eing setting up of ;9s a road to tie up for feedstockrevamp of e!isting units. * sence of major capacity additions and issues relating to feedstock could widen the demand'supply mismatches. "he financial year -BBD'BA egan with practically no clarity on the policy parameters for oth 6itrogenous and phosphatic fertili&ers. "he policy parameters for third stage of the 6ew pricing scheme for 7rea which was to e implemented from the eginning of the While rising fertili&ers su sidies is a matter of concern, delay in decisions on the mechanism to tackle the same can worsen the situation as domestic capacity utili&ation might drop and force the country to resort to imports. .!cessive dependence on imports is not a desira le proposition from oth the economic and strategic point of view and hence there is an urgent need of clarity on the policy parameters for the sector. We feel that a comprehensive long term policy addressing the concerns of oth the farming community and the domestic industry has ecome the need of the hour. * long term policy would help create an environment of sta ility in the industry and in turn help in the overall development of agricultu

2. -asant Agro Tech India Li*ited

:asant *gro "ech India 8imited is a private company operating in the fertili&er sector in India and forms an important part of the private sector fertili&er industry in India. "he company has its registered office in *kola, 2aharashtra and its corporate office is in 2um ai. 3ertili&ers are essential in the agricultural sector for they have certain chemical elements that increase the growth of plants. :asant *gro "ech India 8imited has helped oo st the Indian agricultural sector y dint of the high (uality of its products. @@

:asant *gro "ech India registered a net profit of %s CC.?B lakhs in -BB?' -BB-. In -BB-' -BB<, the net profit stood at %s. 8=.8B lakhs, in -BB<'-BB@ it was %s. CB.@? lakhs, and in -BB@'-BB=, it amounted to %s.?--.AB lakh. "his shows that the profit level of the company has risen in the last couple of years:asant *gro "ech IndiaQs product portfolio includes fertili&ers of various grades, agricultural inputs, and seeds. "he company speciali&es in the manufacture of nitrogen, phosphate, potash (65G) mi!ture, and granulated fertili&ers. It also has a plant with the capacity of DB,BBB "5*. "he company is also (uite well'known for its production of single super phosphate for which it has a production capacity of 8<,BBB "5*. In -BB=, :asant *gro "ech India manufactured DB,C?C 2" of $$5 fertili&ers and <C,?C@ 2" of 65G mi!ture fertili&ers. :asant *gro "ech India 8imited has registered significant growth in the last few years. .fforts must e made y the fertili&er industry of private sector in India and the government of India so that it continues to grow

/. Cha*,al Fertili9ers and Che*icals Li*ited

#ham al 3ertili&ers and #hemicals 8imited is a company which elongs to the G. G. :irla group and was incorporated in ?C8=. It forms an important part of the private sector fertili&er industry in India. "he company is situated in +adepan, %ajasthan. 3ertili&ers contain chemical elements which increase the growth of plants and as agricultural production increases, the Indian economy is strengthened. #ham al 3ertili&ers and #hemicals 8imited has had an important hand in manufacturing fertili&ers, there y oosting the Indian agricultural sector and the Indian economy itself. "he various polices of @=

the India government with regard to the fertili&er industry have also helped the company to grow. #ham al 3ertili&ers and #hemicals 8imited has a fertili&er comple! which is the largest in the private sector in India. "he plants in the company are highly moderni&ed and this has helped in the increase of production output. "he (uality of the fertili&ers manufactured y #ham al 3ertili&ers and #hemicals 8imited is also considered among the est availa le in the market. #ham al 3ertili&ers and #hemicals 8imited operates two nitrogenous fertili&er plants which were uilt at the costs of %s. -=,BBB crore. "hey have the capacity to produce ?.A-C- million tons of urea per year. #ham al 3ertili&ers and #hemicals 8imitedQs products are sold under the rand name 7ttam. "he company supplies fertili&ers to the western and northern regions of the country. It has ?B regional offices, ?@,BBB village outlets, and a network of ?,BBB dealers to assist in distri ution. "he various fertili&ers produced y #ham al fertili&ers and chemicals limited are> 7rea $eeds :io'fertili&ers *mmonia #ham al 3ertili&ers and #hemicals 8imited has registered a fair amount of growth in the recent past. .fforts are on to sustain and accelerate this growth.

List o# 'roducts

#ham alQs *gri Inputs division caters to the 6orthern, #entral and Western %egions of India and operates in ten states. "he #ompany markets 7rea under the rand name of H7ttam 9eer). With ten %egional 4ffices, #ham al has a ?,=BB strong dealer network and -B,BBB village level outlets to assist distri ution. "he #ompany has donned the mantle of providing all agri'products through a Qsingle window) to ena le the farmer to uy all products from one source. :esides 7rea, fertilisers such as D*5, 245, $$5 and other agri' inputs as &inc sulphate, pesticides and seeds are made availa le to the farmers. 2ost of these products are sourced from reputed suppliers and sold under the company rands. "oday, the #ompany has attained a leadership position in the pesticide usiness in 6orth India.

@D

.!tensive promotion activities are undertaken to promote the products dedicated field officers.

y a team of

'roducts -rands
Fertiliser 7ttam 9eer 7rea (7rea)

-rand :!tensions
5tta* =eer

7ttam 6eem (6eem #oated 7rea) 7ttam D*5 (Di *mmonium 5hosphate) 7ttam 245 (2urate of 5otesh) 7ttam $$5 ($ingle $uper 5hosphate) 7pecialit( Fertiliser 5tta* 5tpad 7ttam Kinc -? I (,eptahydrate Kinc) 7ttam Kinc << I (2ono hydrate &inc) 7ttam $ampoorn (2icronutrient 2i!ture) #alrich (#alcium 6itrate) 7ttam 65G (?BB I Water $olu le 3ertiser) +ranu or (:oron 3ertiliser) 7ttam 2agnesium $ulphate (2agnesium $ulphate) 7ttam 3errous $ulphate (3errous $ulphate) $ulton (CBI $ulphur :entonite) 7eeds 5addy ' 7ttam Granti ,y 5addy ' Ghushi 1 :arkha $oy ean ' 7ttam Granti 1 #hamtkar 2ustard ' 7ttam Granti ,y :ajra ' *l ela 1 7ttam Granti'-BC= ,y 2ai&e ' 6andini 1 2uskan @A 5tta* &ranti

$$+ ' 2anik 1 2oti :t #otton Dhruv :arley ' 7ttam Granti Wheat ' 7ttam Granti Insecticide *ceveer *cto #hlorveer .ndoveer 2onoveer Imidaveer *lphaveer 8am da veer 8am da Dou le Gar o 9eerphor 5roveer "empo "ria&oveer 9eertap 5ower .ndoveer D5 3enveer D5 5araveer D5 #yperveer D5 9eercom i @@ 5tta* &eetnasha+

@8

#yperveer #yperveer -= Gelvo "oro'?B :runo 9eercom i =B= Her,icide :utaveer 8ido Gleeno 2etaveer 5retilaveer "oto *ttract 9eerkill (<8I.#) Wheto Wee&a 2oto 5enveer 9eerkill 8B Weedkil =B8 Koro Keto +raso Fungicide 5tta* 'haphundinasha+ 5tta* &harpat arnasha+

@C

3igo ,e!aveer $ulfino 9eer 2'@= 9eercon 9eer&im 9eersulp W5 2'-

3. 7hrira* Fertili9ers and Che*icals

$hriram 3ertili&ers and #hemicals is among the top players in the fertili&er industry of India. Its revolutionary techni(ues in production have made the company a formida le competitor in the fertili&er segment. "he operations in manufacturing fertili&er y the company are distinguished y dint of its production process optimi&ation for ma!imum capacity usage. $hriram 3ertili&ers and #hemicals was the first to manufacture several fertili&ers ingeniously. "he different chemicals it produces are> 5rea ' a non'flamma le chemical used as the asic fertili&er in agriculture. "he company was the first to manufacture 7rea in the ?CDBs. 'otash Fertili9er Materials ' chemicals used as ulk lending ingredients in fertili&ers. 5hosphate 3ertili&er 2aterials ' widely used for the manufacture of different fertili&ers used for agriculture.

=B

Different nitrogen, phosphorus, potassium' ased fertili&ers, potassium chloride, and triple super phosphate are manufactured in large (uantities. A**oniu* 4itrate ' an inorganic nitrate' ased fertili&er widely used in India for agriculture. Anh(drous A**onia ' an inorganic ammonia purposes. ased fertili&er used for agrarian

8ocated in Gota, %ajasthan $hriram 3ertili&ers and #hemicals is one of the most economical naptha' ased urea manufacturers in the Indian 3ertili&er Industry. 3or the past few years, $hriram 3ertili&ers and #hemicals has een developing its plants to e adapta le to other types of feedstock such as gas and accordingly, they have succeeded in making their plant suita le for dual feedstock. "he $hriram 3ertili&ers and #hemicals has made a significant contri ution in the fertili&er market in India, especially in the rural sector. "he presence of a strong distri ution network over the major parts of India has helped the companyQs growth. $hriram 3ertili&ers and #hemicals has e!tensive plans for the securing its future in the market. "he 3ertili&er Industry is growing as the Indian economy is largely an agrarian one. "he developments in the infrastructure of these companies and etter management are the key factors of success.

0. 4agarjuna Fertili9ers and Che*icals Li*ited

"he 6agarjuna 3ertili&ers and #hemicals 8imited is a division of the flagship company of the 6agarjuna +roup. 8ocated in ,ydera ad, it is an I$4 CBB?>-BBB certified company. It is the largest and the only private sector investment in south India. 3ounded in ?C8=, today it has an asset ase worth %s. -? illion. "he 63#8 produces and markets a wide range of fertili&ers. 7rea (widely used) nitrogenous fertili&er is manufactured at the Gakinada 5lant as well as marketed and imported at the Gakinanda and the 9i&ag 5orts. "he farming community in *ndhra depends to a large e!tent on the urea produced y 6agarjuna 3ertili&ers and #hemicals 8imited (63#8). 63#8 presently markets around B.D million tons of imported urea and ?.- million tons of manufactured urea annually. "he main motive of 63#8 is to e(uip the farmers with total, end'to'end solutions. 63#8 has recently started marketing fertili&er mi!tures through domestic sourcing and is all set to start production of potassic and phosphatic fertili&ers in due course of time.

=?

*t present, 63#8 is marketing products involving varied range of micronutrient mi!es like 2aha&inc, Kinc $ulphate, and micro'nutrients, and lays great importance on the (uality of the commodity. With associates like Lara of 6orway and ,aifa #hemicals 8imited of Israel (,#8), this company is trying to create world'class solutions for their customers. "he various ranges of products are as follows>

Manu#actured 'roducts
5rea ' white, free'flowing variety, with @DI6' prilled and anhydrous ammonia. It is used for production of D*5, fermentation, and water treatment.

Mar+eted 'roducts
Di'sodium 4cta :orate "etra ,ydrate, #helated Kinc as Kn'.D"*, 2uriate of 5otash, 245 (5otassium #hloride), Kinc $ulphate 2ono'hydrate, and Di'ammonium 5hosphate. 63#8 also produces $pecialty 3ertili&ers, 3ertigation 5roducts like multi'G, and poly'feed. "hese are used for foliar application that is recommended for various crops. *part from this, 63#8 stresses on providing value'added services to the farmers in order to oost their farm productivity through the availa ility of latest scientific farming technology. "he company also organi&es several training initiatives to increase the technological e!pertise of the farmers and improve their knowledge of agriculture.* recipient of various awards, 6agarjuna 3ertili&ers and #hemicals 8imited has een doing very well since its inception.

>. Meerut Agro Che*ical 'ri ate Li*ited

2eerut *gro #hemical 5rivate 8imited is a leading manufacturer, e!porter, and supplier of fungicides, insecticides, weedicides, and pesticides. "he company is located in 7.5. and is known for importing technical grade pesticides. 2eerut *gro #hemical 5rivate 8imited is known for its high grade (uality products and is especially popular with the consumer farmers of :hutan, :angladesh, and 6epal. "he company prided itself on its est practices as well as the dedicated and skilled workforce. 2r. %aj Gumar Gansal is the 2.D and the #hairman of the company. "he (uality of the products is affirmed y I$4 CBB?>-BBB certification. =-

"he main products of the 2eerut *gro #hemical 5rivate 8imited are as follows>

'esticides ' includes products like insecticides, her icides, fungicides, miticides, rodenticides, household growth regulators, and plant growth regulators. "he company also produces a huge variety of insecticides like *cetamiprid -BI, .thion =BI.#, 5horate?BI#+, and #ar ofuram <I #+. It also produces her icides like :utracholar =BI .#, *tra&ine =BI W5, and $ulfoaulfuron A=IW+. "he plant growth regulators produced y 2eerut *gro #hemical 5rivate 8imited are as +i erallic *cid("), .thephon<CI$8, 5ropargitte=AI, and 3ena&o(uim?BI.#. 5ropo!ure-I*reosol and 8am ela cyhalothrin?BIW5 are the household pesticides products manufactured y 2eerut *gro #hemical 5rivate 8imited.

-io<#ertili9ers ' *nkur and 7ttam fertili&ers are io'organic fertili&ers. It is used for organic farming and made from io'mass y fungal decomposition and then enriched with humus and neem oil. It helps in the rapid plant growth and the improvement in crop (uantity and (uality. Dhan'2'&yme io'fertli&er is made from natural sources (living and non living) like humus su stances, seaweeds etc. 3ound in li(uid form, this ensures improvement in crop (uality, crop resistance, and a alanced crop growth.

7pra( Adjuants ' * li(uid spray made of polygol ethers and non'ionic surfactants. It is known to increase the wetting'penetration, coverage, and improvement of the holding level of the spray droplets on the leaves. It is sold under the rand name of Demand and is mainly composed of $pinosad @=I$#. "he company has an advanced production unit where newer technologies are implemented as and when they are made availa le. It has hi'tech machinery that is used to the optimum level y hardworking and skilled workers. It also has a good la oratory with all the necessary e(uipment like'+#, ,58#, p, meter etc. "he company has @ &onal offices and ranches in all the &ones of India.

=<

CHA'T:;<? Mar+eting 'olicies

2arketing is so asic that it cannot e considered as a separate function. It is the whole usiness seen from the point of view of its final result, that is, from the customers point of view. :usiness success is not determined y the producer ut y the customers. 2arketing consists of all activities y which a company adapts itself to its environment'creatively and profita ly. 2arketing jo is to convert societal needs into profita ly opportunities.

2arketing is not like .uclidean geometry, fi!ed system of concepts and a!ioms. %ather, marketing is one of the most dynamic fields within the management arena. "he market place continually throws out fresh challenges and companies must respond. "herefore it is not surprising that new marketing ideas keep surfacing to meet the new marketplace challenges. ,ere is several emphases in current marketing thought' ?. * growing emphasis on (uality, value and customer satisfaction -. * growing emphasis on relationship uilding and customer retention <. * growing emphasis on managing usiness processes and integrating usiness functions. @. * growing emphasis on glo al thinking and local market planning =. * growing emphasis on uilding strategic alliances and networks. D. * growing emphasis on direct and on line marketing What is marketingR

=@

*ccording to peter drucker, 0marketing is a social and managerial process y which individuals and group o tain, what they need and want through creating offering and e!changing products of value with other.0

Current *ar+eting structure

2*%G."I6+ ".%%I"4%I.$ 43 I33#4

==

I33#4)s marketing setupE at presentE comprises of five &onal officesE ?A states offices and D@ area offices each area offices covers four to five districts. .ach area has eight to ten field officers attached to it. "hey are posed at district level town. *t presentEE there are a out @D< field officers. "he total num er of personal in marketing division has come down to around ?A@C from the level ?8=B in ?CC?.

=D

IncidentallyEwith the e!pansion of all the three e!isting urea plantsEI33#4 has emerged as the largest producer of urea in the world in a single country with the installed capacity of <.- million tones per annum. "he sale volume of I33#4 is ==.=B lakhs tones of fertili&er in -BB?'-BB- handling the sale of such huge (uantity of fertili&er is no dou tE a stupendous task. * new dimension has een added to marketing activities with decontrol of phosphatic and potassic fertili&er since august ?CC- vi&. I33#4 has taken up promotional and e!tension programmer more vigorously after decontrol of phosphatic and potassic fertili&ers with a view to promoting alanced and efficient use of fertili&er also to increase soil productivity. I33#4 is also promoting environment friendly sustaina le agriculture in various stat through 6I5$ programmes in colla oration with 3*4.

=A

TOTAL 7AL: OF F:;TILI7:;7

112(58 B2.D> ?0.?0 B?.2 D3./0

2004&05

2005&06

2006&0-

200-&0.

200.&0/

=8

7AL:7 ':;FO;MA4C:

COMPLEX

UREA
50(13 50(13 38(95 33(69 54(29 53(89

58(69

36(7 27(94 31(82

2004&05

2005&06

2006&0-

200-&0.

200.&0/

=C

'roduct
7rea 4wn Imports "otal 7rea -B>-B>B ?B>-D>-D ?-><->?D 65E65G D*5 "otal 4wn Imports "otal D*5 245 65E65GED*5E245 Total Ferts. "otal

1@<1B
<=.8= B.8= <D.AB '' @.?D 8.@= ?-.D? ?@.D< B.A? ?=.<@ '' -A.C@ ?0.?0

1B<1D
<A.@B ?-.A< =B.?< '' =.D? ?B.C= ?D.=D C.=D =.AB ?=.-D '' <?.8B2.D>

1D<21
<8.8? ?<.DB =-.@? ?.CA =.-= C.8B ?A.BC.8C D.=A ?D.@D B.-? <<.DC B?.21

21<22
<C.DD ?@.D< =@.-C @.B= C.<? 8.8@ --.-B ?@.-< -.<D ?D.=C B.?D <8.C= D3./0

22<2/
@B.A? ?A.C8 =8.DC 8.-B ?B.AD =.=? -@.@A D.D< -?.C? -8.=@ B.88 =<.8C 22/.>B

DB

CHA'T:;<@ COM'L:T: %:TAIL7 OF %IFF:;:4T 54IT7

G*848 76I"

L.*% 43 #422I$$I46I6+

> ?CA=

I69.$"2.6"

> %s. A?.-< #rore

L.*% 43 .O5*6$I46

> ?CCA

I69.$"2.6"

> %s. ?@C.AB #rore

';O%5CT

CA'ACIT) T'% T'A

T:CH4OLOE)

AMMO4IA

22113

?3,111

M.A. &:LLOE & HTA7

5;:A

2?>1>

00,>11

7TAMICA;-O4 and H & E

K4C

@>D

/,>1,0@1

G*6D8* 76I"
D?

L.*% 43 #422I$$I46I6+

> ?CA=

I69.$"2.6"

> %s. -@.-D #rore

L.*% 43 3I%$" .O5*6$I46

> ?C8?

I69.$"2.6"

> %s. -8.DB #rore

L.*% 43 $.#46D .O5*6$I46

> ?CCC

I69.$"2.6"

> %s. -B=.<B #rore

'roduct

Capacit( " T'A $

Technolog(

5-4=

C,?B,BBB

3our streams (*,:,# 1 D) ased on "9* slurry granulation process. "wo streams (. 1 3) ased on *K3 pipe reactor technology.

<,=?,=@B

5,7857% 76I"

D-

L.*% 43 #422I$$I46I6+

> ?C8?

I69.$"2.6"

> %s. -B=.- #rore 5hulpur ' I

L.*% 43 .O5*6$I46

> ?CCA

I69.$"2.6"

> %s.??CB #rore

5hulpur F II

L.*% 43 D.:4""8.6.#GI6+

> -BB8

I69.$"2.6"

> %s.?8=.< #rore

'roduct T'%
*mmonia 7rea 6 -,C== =,?@= -,<DA

Capacit( T'A
C,A=,?=B ?D,CA,8=B A,8?,B??

Technolog(

G.884+ 1 ,"*$ $6*25%4+.""I

*468* 76I"

D<

L.*% 43 #422I$$I46I6+

> ?C88

I69.$"2.6"

> %s. D=?.D #rore *468*' I

L.*% 43 .O5*6$I46

J ?CCD

I69.$"2.6"

> %s. C=@.A #rore *468*' II

L.*% 43 D.:4""8.6.#GI6+

> -BB8

I69.$"2.6"

> %s.?@C.- #rore

'roduct T'%
*mmonia 7rea 6 <,@8B D,BDB -,A88

Capacit( T'A
??,@8,@BB ?C,CC,8BB C,?C,CB8

Technolog(

,*8D4% "45$4. $6*25%4+.""I

5*%*D..5 76I"

D@

I69.$"2.6"

> %s. --<A #rore

'roduct
5hos. *cid $ulphuric *cid 5-4= (3ert. +rades) 6 5ower

Capacit( T'A
8,A=,BBB -<,?B,BBB 8,B-,8BB <,-=,-BB - ! == 2W

Technolog(
;*#4:$ .6++. 87%+I +m , ;*#4:$ .6++.

&ALOL :L'A47IO4 ';O.:CT

I33#4 has envisaged setting up ?<.8D 8akhs 2" of 7rea plant at Galol. 5roject cost is likely to e a out %s. @BBB crore. *greement signed with ,aldor "opsoe for 5re'5roject activities. 6o o jection certificate received from +ujarat Industrial #orporation.

E;OATH I4 ';O%5CTIO4 CA'ACITI:7

D=

As on %ate
;an.)A= *pr.)A= 2ar.)8? $ep.)8? ;ul.)88 Dec.)CD *ug.)CA Dec.)CA *ug.)CC *pr.)B? *pr.)B*pr.)B@ 4ct.)B= Dec )B8

5;:A
' <CD.B 8C?.B 8C?.B ?D?A.B -<@<.B -@C?.= <-?A.= <-?A.= <D8C.@ <D8C.@ <D8C.@ <D8C.@ @-@-.-

4'&F%A'
@?=.D @?=.D @?=.D 88?.< 88?.< 88?.< 88?.< 88?.< ?DBB.? ?CA<.D -?C?.? -@?=.@ @<<=.@ @<<=.@

Total Ferts.
@?=.D 8??.D ?<BD.D ?AA-.< -@C8.< <--@.< <<A-.8 @BC8.8 @8?A.D =DD<.B =88B.= D?B@.8 8B-@.8 8=AA.D

E;OATH I4 ';O%5CTIO4 CA'ACITI:7

DD

54ITAI7: ';O%5CTIO4 ':;FO;MA4C:

54IT

'LA4T

1@<1B

1B<1D

1D<21

21<22

22<2/

DA

G*848

*2246I* 7%.*

<.@=.==

<.@@ =.@=

<.@D =.DB

<.?8 =.@=

<.-8 =.DB

5,7857%'I

*2246I* 7%.*

<.<D =.D=

<.-B =.=?

<.@? =.A<

<.AD D.<B

<.C< D.D<

5,7857%'II

*2246I* 7%.*

@.CA 8.D@

=.?D 8.8=

=.BD 8.8<

=.-B C.-@

@.AD 8.@?

*2246I* 7%.*

=.?< 8.D=

@.AC 8.D<

=.B8 8.8=

=.?B 8.AD

=.DC C.8A

*468*'II

*2246I* 7%.*

=.?< 8.D=

=.@8 8.A=

=.-B 8.8=

=.DA C.8C

=.CB ?B.?8

TOTAL

5;:A

3@.20

3@.2B

3@.B?

3D.?3

01.?B

7T;:AM %A)7 ACHI:=:%

54IT
G*848

'LA4T
*2246I* 7%.*

/11@<1B /11B<1D /11D<21 /121<22 /122<2/

<@@ <<A <-= <-8 <-A <-8 <?= <-B <<D <<?

D8

5,7857% ' I

*2246I* 7%.* *2246I* 7%.* F I 7%.* F II

<<A <-@ <<B <-A <-B <<A <-<<A

<?= <?8 <<D <<= <-@ <?= <?<?=

<-@ <<A <?D <BC <B8 <-? <?? <-=

<@? <<<-C <<C <-<?< -8= <BA

<-8 <?C -C< -CC <B? <<8 <<= <@<

5,7857% ' II

*468* ' I

*2246I* 7%.* ' I 7%.* 'II

*468* ' II

*2246I* 7%.* F I 7%.* F II

<@? <<<<C

<D<<<@A

<-D <?< <-@

<<@ <<B <--

<@D <<? <<@

CA'ACIT) 5TILI7ATIO4

UN)T PRODUCT

2004-05

2005-06

2006-07

2007-08

2008-09

DC

0AL1L

2R3A

102

100

103

100

103

'42L'2R&5

2R3A

103

100

104

114

120

'42L'2R&55

2R3A

100

102

102

10-

/-

A1NLA&5

2R3A

100

100

102

101

114

A1NLA&55

2R3A

100

101

102

114

11.

0AN6LA

'215

103

106

/6

-3

60

'ARA633'

'215

&

&

32

41

4-

717AL

N '215

101 103

102 106

/3 66

/4 5.

/. 53

MA.O; AAA;%7 ;:C:I=:%

8 5restigious .conomic "imes *cer and Intel $mart Workplace *ward in the 2anufacturing and Industrial $egment 8 /:est #ontent $ervice0 as well as the /:est 5roject 2anagement0 in respect of I33#4 Gisan $anchar 8imited (IG$8) at the World #ommunications *ward held at 8ondon 8 Institute of #hartered *ccountants of India (I#*I) *ward for .!cellence in 3inancial %eporting for I33#4)s *nnual %eport and *ccounts for the year -BBA'B8

AB

8 :est #ooperative $ociety *ward from 5u lic %elations $ociety of India ( 5%$I ) at its +olden ;u ilee #eremony in 2auritius 8 I33#4 has een ranked ?st in $ales "urnover and -nd in terms of 6et worth and 5rofita ility amongst unlisted enterprises y .conomic "imes Intelligence +roup for the year -BBA'B8 8 I33#4 has also got 5restigious #I4 ?BB *ward y International Data +roup (ID+I India), the world)s leading "echnology 2edia .vent and %esearch +roup 8 :est managed Workforce *ward for the year -BB@ from ,ewitt *ssociates and #6:# "9'?8 8 "wo *wards for ,ighly #ommenda le *ccounts 8 6ational ,%D *ward from 6ational ,%D 6etwork for outstanding contri ution in ,% Development 8 I33#4 *nnual %eport agged the third pri&e, instituted y 5u lic %elations $ociety of India (5%$I) 8 3*I +olden ;u ilee *ward on /"ransfer of improved 3arm "echnologies0 8 ?st 5ri&e for :est #orporate 3ilm from 6#7I 8 "hree awards for :est Display in 3*I .!hi itions 8 I33#4 #orporate film was adjudged the est y 5u lic %elations $ociety of India (5%$I) 8 I33#4 has agged 3*I /:est 9ideo 3ilm *ward -BBD'BA0 for film on /Water ,arvesting

&ALOL 8 $even *wards for :est 4verall 5erformance from 3*I 8 "hree *wards for Industrial $afety from +4I 8 Indo +erman +reentech .nvironment .!cellence *ward

A?

8 "hree 6ational $afety *ward 8 "hree 6ational .nergy #onservation *ward and 8etter of *ppreciation from +ovt. of +ujarat 8 9ishwakarma %ashtriya 5uraskar to three employees from +ovt. of India

&A4%LA

8 "welve $afety *wards from 6ational $afety #ouncil , 2um ai, +4I 8 "wenty five $afety *wards from +ujarat $afety #ouncil, 9adodra 8 6ineteen *wards for safety from 6ational $afety #ouncil, 7$* 8 8etter of *ppreciation from +.: for .nergy #onservation 8 %aj :hasha *ward for promoting ,indi and $ahasra di $hield y %ashtriya ,indi *cademy 8 .ight *wards for :est 4verall 5erformance and one *ward for /.!cellence in $afety0 from 3*I 8 /+olden 5eacock .nvironment 2anagement *ward0 8 #ertificate of ,onor from +ujarat $afety #ouncil for < million man hours without accident 8 /$76 and 6D"9 +reen I" *ward0 under category of "echnology 3or a +reener Workplace (?st 5ri&e)

'H5L'5;

A-

8 Four Awards for productivity from NPC 8 $i! 6ational $afety *wards from +4I 8 .ight *wards for :est overall 5erformance from 3*I 8 "wo *wards for "echnical Innovation from 3*I 8 *ward for :est 5roduction 5erformance in 6itrogenous 3ertili&er 8 6ine 6ational .nergy #onservation *wards 8 "hree *wards for :est .nvironmental 5rotection from 3*I 8 ".%I #orporate .nvironment *ward 8 :est .nvironmental .!cellence *ward from Indo'+erman +reentech 3oundation 8 "wo :est "echnical 5aper *ward y 3*I 8 :est 5ollution #ontrol Implementation +old *ward0 and %ajiv %attan 6ational +old *ward for :est 5ollution #ontrol 8 ;ointly received 3*I *ward for :est 4verall 5erformance of an operating 3ertili&er 7nit for the year -BBD'BA with Kuari Industries 8td +oa 8 /Indira +andhi 2emorial 6ational *ward0 for .!cellence in Indian Industries 8 3irst 5ri&e for / 6ational .nergy #onservation *ward -BB80 8 3irst 5ri&e for :est 5roduction 5erformance in 6itrogenous 3ertili&er $ector

AO4LA

8 *ward for :est Implemented 5roject ($econd 5ri&e) from +4I A<

8 3our *wards for #onservation of .nergy from +4I 8 "wo 6ational *ward for /.!cellence in .nergy 2anagement0 8 Indo +erman and +reentech .nvironment .!cellence *ward 8 *ward for :est overall performance from 3*I 8 "wo *wards for .!cellence in $afety from 3*I and one /6ational $afety *ward / from D+3*$8I 8 "wo $afety *wards from 6ational $afety #ouncil of India 8 %ajiv %attan 6ational +old *ward -BB= for :est .!ecutive 8 .!cellence *ward for papers pu lished on /$afety and ,ealth in #hemical Industry0 and /,a&ard Identification 1 %isk 2anagement0 8 :est "echnical Innovation *ward from 3*

CHA'T:;<B
IFFCOC7 ';OMOTIO4AL ';OE;AMM: FO; FA;M:;7

"2$ %:MO47T;ATIO4
A@

#onducting crop demonstration of farmers on the most effective method of convincing farmers on the need for adoption of agriculture technology to improve crop yield and fertili&er use efficiency. I33#4 is laying great importance to this programme. Demonstration on various crop are conducted on farmers fields through various approach.

"i$

TAO 'LOT %:MO47T;ATIO4

In this type of demonstration, recommended practice of fertili&ers use is compared with the adopted y farmers. * out ?BBB the plot demonstration are conducted every years with a large num er of ra i and kharif crops. $o far -<,BBB demonstrations were laid out.

"ii$

-LOC& %:MO47T;ATIO4 * compact lock of -B hectare is selected for these demonstrations with a su sidy of =BI for supply of inputs to the farmers. "hese demonstration are specifically laid out pulse and oil soil crops or local crops of the areas in order to increase productivity. * out -BB or longer lock demonstrations are laid out every years.

"iii$

C;ITICAL I4'5T 'AC&AE: %:MO47T;ATIO4

In order to cover a large num er of farmers in newly adopted I33#4 village, critical input package comprise of seed, fertili&ers and agro chemicals are supplied for raising good crops.

2icronutrients are supplied if the soil is deficient on them. "hese inputs are supplied to a group of =B farming families in I33#4 village or two or four crop seasons. I33#4 covers a out -B,BBB farmers every year under this programme. It covers -, --,BBB farmers have een enefited since the inception of this programme in the year ?C8<'8@

A=

"/$ FI:L% %A)

3ield programmes are organi&ed on demonstration plots which help the farmers appreciate the difference in productivity from arising due to demonstration effect. "he farmers are informed well in the advance to participate in field day programme. 3armers are informed well in advance to participate in the yield programme farmer from neigh oring village are also given prior intimation a out the programme. District authorities are also invited to participate.

3ield day provides an e!cellent opportunity for interaction among farmers and e!tension workers and for further dissemination of agricultural technology or a good harvest. "his programme is organi&ed at the time of crops maturity stage. * out 8BB yield days are organi&ed on demonstration plot every year.

"3$ C;O' 7:MI4A;

"his is very important programme organi&ed prior to sowing in which agricultural scientist are involved for e!plaining crop production and fertili&ers use technology. :esides, farmers also drive enefit from participation of officials from cooperative ank and agricultural department for resolving their pro lem. *t present, more than -BB crop seminars are organi&ed on various crops every year.

"0$ AE;IC5LT5 ;AL A4% 7OCIAL COM'AI4E

:esides, organi&ing field programme on crop production, I33#4 is also organi&ing various campaigns on agricultural and social aspects. "hese include soil and water analysis, seed treatment, plant protection, rodent control, medical and check up etc.

">$ T;AI4I4E
I33#4 has started a special programme for to impart training on different aspects of crop production and allied activities. "raining is given y agricultural scientist at the agricultural universityE %esearch institute of different states. +roup of farmer @B farmers each, who are around <= years of age, selected to attend =' days training programme at different location. "he selection of farmers is done y a committee of officials of agriculturalE cooperative departments and I33#4)s directorsE %+: mem ers. "he programme enefits more than ?=BB farmers every year.

AD

"?$ A%=I7IO;) COMMITT:: M::TI4E

"he advisory committees meeting are organi&ed at the district, state and &onal levels with an o jective to apprise the +overnment officials, I33#4 directors and %+: mem ers a out I33#4)s work and seek their opinion n for further improvement. In these meetings topics on review and planning of sales and promotional activities are discussed and corrective measures are suggested for overcoming various pro lems.

"@$ 7OIL T:7TI4E

$oil testing is one of the tool to learn a out the nutrient re(uirement in a cropEcropping se(uence. "his helps economics on fertili&ers cost and 3ertili&ers use efficiency .keeping in the importance of soil testing, I33#4 has passed into service two mo ile testing vans for soil analysis on farmers fields. "he first vans ecome operative in *pril ?C88 and the second in *pril ?CCB. "hese vans are e(uipped with soil analysis facilities and fitted with audiovisuals of soil tested is definitely changing the trend eing from high to medium to low. I33#4 has also set up two static soil testing la oratories at #4%D.", Galol(+ujarat) and 5hulpur(7ttar 5radesh) each having the capacity of analy&ing -=,BBB soil samples annually soil testing facilities availa le at $tate +overnment la oratory are also use for analysis.

"B$ M5LTI'LICATIO4
$eed multiplication programmed was initiated y I33#4 in the year ?CA8 in the state of ,aryana and 5unja through registered seed grower. $ince then I33#4 seed has in great demand among the farmers. 8ater the programme was e!tended to other states. I33#4 is taking up colla orative $25 y helping other seed corporation E state seed corporations. 5radesh, I33#4 seed is also sold through the the Department of agricultural and rough the marketing federation sale points . *nnually, more than ABBB hectare are covered under his programme with an e!pected seed production of a out -B,BBB tonnes.

"D$ C;O' FILM

AA

*ppreciating the importance of the electronic media and populari&ation of video presentation ,I33#4 has developed 8 crop film depicting the practing the practice for the enefit of farmers. "hese films are of ?= minute duration each covers important crop like rice, mai&e cotton sugarcane, soy ean and mustard, seed.

"21$ ';OMOTIO4AL A4% '5-LICIT) ACTI=ITI:7

3ertili&er promotion is one of the important components in fertili&er marketing. "he o jective is to create awareness a out fertili&ers and improve technical information on improved agricultural practice and fertili&ers use so as to increase productivity and use efficiency. 2ass media approach is followed in fertili&ers promotion.

"I$

AI;, %OO;%A;7HA4 A4% ';:77 "hese are, powerful and effective medium of communication and the message is conveyed even in remote and in accessi le areas in a short time, I33#4)s staff field staff often deliver talks over *I% and production are pu lished in local and national level newspapers. 3airs, and e!hi itions are organi&ed at the local and national level to appraise the farmer a out achievement in agricultural development through audioE visual aids. "his medium has a mass appeal.

"II$

T:CH4ICAL LIT:;AT5;: 5u lication and updating of technical literature from time to time'n regional language on crop production practices and fertili&er use is very important. "his includes crop folder, leaflets and pamphlets etc., Which give rief accounts on crop production technology.

"III$

HOA;I4E A4% ;OA%7I%: 7IE4-OA;% I33#4 is effectively making use of state an highway and market places for promoting the concept of alanced fertili&ers use y erecting hoardings and roadside sign oards , wall paintings etc. A8

7:;=IC: TO FA;M:;7

'R1 RA,,3

2004&05

2005&06

2006&0-

200-&0.

200.&0/

791 'L17 63,1N)7RA751N FAR,3R): ,3375N )

/36

-10

-63

1006

.06

46-1

4466

320.

3433

3450

F53L6 6A;) $R1' )3,5NAR)

--154

-34 15-

-14 151

--/ 16/

.0124

$R575$AL 5N'27 'A$0A 3)

6.36

.25-

6011

651/

6.42

)15L 73)75N $A,'A5 N)

10/.

1056

652

530

542

AC

7:;=IC: TO FA;M:;7
*gricultural .!tension and fertiliser use promotion programmes are an integral part of the marketing activity. 5rogrammes are conducted through *reaE$tateEKonal offices under the guidance of agricultural scientists.

5rogrammes undertaken are > :alanced 3ertilisation programmes *doption of villages for all round socio'economic development 3armers visit to various agricultural institutes and research farms 3armers) 2eetings, 3ield Days and #rop $eminars $taticE2o ile $oil "esting 8a oratories with *udio'visual aids

8B

Other 7ocial Acti itiesF%e elop*ent 'rogra**es include>

$upply of fodder in drought prone areas 9eterinary #heckup and Distri ution of 2edicines ,uman ,ealth #heckup and Distri ution of 2edicines 5roviding drinking water facilities *ssistance to $chool E $chool children Watershed development projects 9eterinary #ampaigns 2edical #heckup $ales 5oint 5ersonnel "raining 3armers "raining *nd 9isit(55B 9illages *dopted

8?

CHA'T:;<D
%I7T;I-5TIO4 CHA44:L

*s a matter of philosophy and policy, I33#4 has provided in its yelaws channeli&ing its entire production through the cooperative system. ,owever, in e!ceptional circumstances other institutional agencies could also e involved. I33#4 is, however, not proposing its production through private trade.

Ahat is channel o# distri,utionM

"he word Hchannel) has its origin to the 3rench word used for Hcanal). "hus channel is a rout through which goods passes from one end to another. In other words, the route through which goods move from the place of production to the place of consumption is called Hchannel of distri ution). #hannel of distri ution are the means employed y the manufactures and sellers to get the products to reach the market there y into the hands of consumers. In this way, channel of distri ution is the pathway or route through which goods are transferred from the hands of producer to the hands of producer to the consumers or from the seller to the uyer. "hus, channel of distri ution refers to various agencies through which the goods flow from the producer to the consumer. "he channel of distri ution is also known as the H"rade #hannel).

*ccording to William ;. $tanton, /* channel of distri ution for a product is a route taken y the title to the goods as they move the producer to the ultimate customers or industrial users.0

*ccording to the *merican 2anagement *ssociation./ #hannel of distri ution is the structure of intra company organi&ation units and e!tra company agents and dealers, whole sellers and retailers, through which a commodity, product or serviced is marketed0.

8-

* marketing channel performs the goods moving from producers to consumers. 2em ers of the marketing channel manage the effective channel y performing a num er of key functionsJ "hey gather information a out potential and current customers, competitors and other actors and factors in the marketing environment. "hey develop 1 disseminate persuasive communication to stimulate purchasing. "hey place order with manufactures. "hey place order with manufactures. "hey assume risk with carrying out channel work. "hey provide fir successive storage and movement of physical products. "hey provide for uyer)s payment of their ills through anks and other financial institutions. "hey o serve actual transfer of ownership from one organi&ation or person to another.

8<

-LOC& %IAE;AM OF %I7T;I-5TIO4 CHA44:L

8@

5FF$1

A'3= F363RA751N

'A$)

5FF$1&N$6$ $11' )1$53753)

F)$

5N)7572751NAL A 3N$; e<g A R1 5N62)7R;

8=

CHA44:L AI7: %I7T;I-5TIO4 OF IFFCO F:;TILIJ:; I33#4 58*6"

@N *5.O 2*%G." 3.D 30 N >?N *+%4 I6D7$"%L

3N 3$#

DI$"E:84#G 8.9.8 $4#. DI$"E:84#G 8.9.8 $4#.

%."*I8 47"8."

5*#$

3*%2.%

E;OATH OF COO':;ATI=: M:M-:;7HI'

8D

I33#4 started with a mem ership of =A societies. $u se(uently, the mem er increased to ?-,<D8 in ?CAB'A? and -D,8CB in ?C8B'8?. "he growth of mem ership crossed the <B,BBB mark in ?CCB'C? and reached <8,?== as on <?st 2arch, -BBD.

A':LF:%:;ATIO47F'ACsFI47TIT5TIO4AL AE:4CI:7
#o'operatives are the main institutional agency in the country distri ution fertili&ers. #o' operative network, at present, comprises of -C states'level marketing federations, ?A? district'level marketing societies and a out CB,BBB 9illage'level co'operative societies, generally called 5rimary *gricultural #redit $ocieties (5*#$). "he other institution agencies engaged in the distri ution of fertili&ers are $tate *gro Industries #o'operations, #ommodity 3ederations and $tate Department of *griculture.

In the eginning, I33#4 was supplying fertili&ers to $tate 8evel *pe! #o'operative marketing 3ederations only. "hey acted as the wholesaler in the #o'operative sector and they catered to the re(uirement of lower'tier society)s i.e. 5*#$ etc. ,owever, over the passage of time, some 3ederations walked out of fertili&ers usiness due to financial, management and other organi&ation pro lems. In order to meet the fertili&er re(uirement of the farmer mem ers of the village level co'operative societies in these $tates, direct supply system was introduced in consultation with the *pe! #o'operative 2arketing 3ederations and with the permission from the concerned $tate +overnments. "here are some states where oth the arrangement co'e!ist i.e. supplies are made to $tate 8evel *pe! #oop. 2arketing federation as well as to the societies directly. In some states where co'operatives are not in a position to a sor the (uantity offered y I33#4, other channels vi&. $tate *gro Development #orporations as well as other institutional agencies are also utili&e

IFFCO 4C%C 7OCI:TI:7

8A

I33#4 in colla oration with 6ational #ooperative Development #orporation (6#D#) has adopted ?@=B village level societies on the line of I33#4 farmer service centre)s in a phased manner. 7nder the scheme, 6#D# provide a loan of %s @-C.C@ lakhs to I33#4 which was distri ution as margin money loan S %s <B,BBB per society. I33#4 also provide a su sidy of %s ?-,BBB to each society compromising of %s D,BBB meant for furnitureEfi!ture and %s D,BBB for procuring agricultural implements.

';O'O7:% %I7T;I-5TIO4 CHA44:L 'OLIC)

7nder the situation e!plained a ove, I33#4 could have the following policy with respect to distri ution channelJ #ooperative in its main form will continue to e the main channel. 4ther institutional agencies vi&. *gro, commodity federation etc. will continue to e engaged ut only in cases where cooperative for one reason or the other will not e a le to a sor the offered y I33#4. I33#4 3$# will continue to play their normal roles ut there will not e any increase in their num er. #ooperative societies adopted y I33#4 will e given support on the lines of I33#4 3armers $ervice #enters. 2ulti'pronged strategy will e adopted to strengthen the cooperative ena ling them to a sor larger volumes. "his will e done through> *doption of cooperative societies. $torage'cum'community centers. 5romoting new cooperatives. 5ursuing cooperative sale points not dealing in fertili&ers to take fertili&er usiness. #ritical analysis of marketing constraints. Direct supply and credit.

88

CHA'T:;<21

Aarehousing

"he production of fertili&er takes places throughout the year, while the consumption is restricted to a few months only. *lso, the storage capacity of plant is restricted to a out three to si! weeks. It is therefore, necessary to undertake movement from the plant to the consuming centre s regularly. 3inancially, Indian farmer are not sound enough to purchase fertili&er ahead of the seasonJ they purchase as and when re(uired. 3ertili&er material is to e made availa le to the farmers at their door step at the time of asal dose as well as for dressing. "his is possi le only when there is a widespread network of field warehouse, from where village co'operative societies could e provided fertili&ers as and when re(uired for supply to farmers. "he warehouses for storage of fertili&er are provided y central warehousing corporation (#W#), $tate Warehousing #orporation ($W#), cooperation and private agencies. "he total storage capacity availa le with #W#, $W# and cooperative during the year was a out <8C

million tones. 4n an average, a out @BI of space availa le for fertili&er storage. During the harvest period, there is tremendous pressure on storage capacity availa le with #W# and $W#. In this conte!t, warehouse planning re(uires almost importance. It is estimated that, y the end of -BBB *D, a out =B million tones of average, three turnover could e achieved, the space re(uired is estimated at round ?A million tones to e!clusively for fertili&ers, as against ?@ million tones space availa le at present with various agencies. I33#4 started warehousing operation during ?CA='AD when fertili&er plant came into production. "he space hired y I33#4 in ?CCA'C8 was to the e!tent of A lakhs mts. 3or this purpose, I33#4 has utili&ed the down facilities availa le with the cooperative system at different level from <<I in ?C8A'88 to @@I during ?CCA'C8. $ome of other states like +ujarat and 7.5. would have DB'8BI space reserved with cooperatives. $ome other states like 2.5, 2aharashtra, West :engal, 5unja , 4rissa and Garnataka are also utili&ing the facility of cooperative system. *s a matter of policy, I33#4 does not make use of warehousing with private agencies. "his policy will e continued in future also. In this conte!t, great emphasis will e laid on the use of warehousing facility availa le with private agencies. "his policy will e continued in future also. In this conte!t, great emphasis will e laid on the use of warehousing facilities availa le with cooperatives, taking into account the trend of growth in the warehousing facilities availa le in this sector. "he year wise increase in the open reservation with the cooperative is given in the following

7pace reser ed ,( IFFCO 8ith CACF7AC and COO'7.

CB

7.4o.
?. -. <. @. =. D. A. 8. C. ?B. ??.

)ear
?C8A'88 ?C88'8C ?C8C'CB ?CCB'C? ?CC?'C?CC-'C< ?CC<'C@ ?CC@'C= ?CC='CD ?CCD'CA ?CCA'C8

Total space reser ed

C?C 8C@ C@B AB< D?B =-B =B@ @== =<< =8< A?=

7pace 8ith CACF7AC and COO'7

<B? E <<I -D= E <BI <?8 E <@I -=? E <DI -@= E @BI -B8 E @BI -B< E @BI -BB E @@I -B= E <CI -<< E @BI <?A E @@I

F5T5;: 7;AT:EI:7

C?

I33#4)s sales volume is going up and it is e!pected to e @C.= lakhs tones in ?CC8'CC, and a out =< lakhs y the turn of the century. "herefore, warehousing planning assumes great importance. 2icro level e!ercise are therefore, eing carried out, the state wise, district wise and rake point wise. "his location and the storage capacity will e kept at the optimum level, taking into consideration various factors like anticipated increase in fertili&er production, and share of the cooperative in the sale of I33#4)s fertili&ers. "he intention of I33#4 is to take advantage of warehousing facilities availa le with cooperative sector in the interior areas, so that the material is availa le to the farmers at the proper time.

I4C;:A7I4E T5;4O=:; I4 AA;:HO57:

During ?CCD'CA, I33#4 had a space reservation of =.8 lakhs tones against the sale of <?.D lakhs tones, this gave a turnaround of =.= there was a significant improvement in the utili&ation of warehousing space ?CCA'C8. *gainst the sale of @B.= lakhs tones fertili&er material, the reserve space was A.B lakhs tones, which gave a turnaround of =.A.

';:CA5TIO4 F:;TILIJ:;7

%5;I4E

HA4%LI4E

A4%

7TO;AE:

OF

C-

 *lways store fertili&ers in leak proof godowns constructed with scientific design and having ade(uate plinth. ,ygroscopic and 6on'hygroscopic fertili&ers should e stored separately. 6o cut and torn and slacked ags should e stored in the stacks. #ut and torn ags should e stored separately and standardised as (uickly as possi le. 6o hooks should e used while loadingEunloading and stacking of fertili&er ags. *ll doors and windows of the godown should e kept closed during rains when relative humidity is high. $elective aeration should e provided on clear sunny days. *ll loose spillage of fertili&ers should e collected daily from the godown floor and kept in the ags separately. 8a ourers working in the fertili&er godown should wear gum' oots. 6o ody should enter the godown with are feet. 3ertili&er should not e stored with foodgrains or other edi le commodities. 3loor of the godown should e periodically repaired for damages caused due to corossion.

C<

 *ll metallic parts like shutters, trusses should e periodically painted with anti' corrosive paint. While opening the godowns for transactions, no ody should enter the godown immediately and wait for some time to avoid ill effect of chemical gases. $pecial care should e taken for hygroscopic commodities which are likely to e damaged due to humidity in the atmosphere. During rainy season stacks of hygroscopic fertili&er should e prefera ly covered with lack polythene covers or film. ;um o stacks are recommended for fertili&er storage as this helps in minimising the e!posure of fertili&ers ags to the atmosphere. 6o fertili&er ags should e stored without proper dunnage. It is recommended to use wooden crate as ideal dunnage. ,owever, in the a sence of wooden crates, two layers of am oo mats with a layer of lack polythene film should e used as dunnage $pecial care needs to e taken during rainy season to prevent damage to the fertili&er ags due to roof leakages. 8eakage points should e promptly repaired and plugged. ,ygroscopic fertili&er should not e stacked over @ meters height as this may cause lump formation in the ottom layers. "imely turn over of fertili&er stock should e ensured to that their (uality is maintained. 6on'standard fertili&ers should e stored separately with proper la eling. $uch fertili&er should e disposed of y following prescri ed procedure as per fertili&er control order.

C@

CHA'T:;<22

C=

Transportation I*portance o# Transportation

N *n efficient transport system is a prere(uisite for sustained economic development. It is not only the key infrastructural input for the growth process. In a li erali&ed set' up, an efficient transport network ecomes all the more important in order to increase productivity and enhancing the competitive efficiency of the economy in the world market. It plays a significant role in influencing the pattern of distri ution of economic activity and improving productivity. "he transport system also plays an important role of promoting the development of the ackward regions and integrating them with the mainstream economy y opening them to trade and investment. ,1" cost constitutes almost half of the cost of marketing operations.

N N

I33#4 has to transport a out =B lakhs tones of fertili&er products from its production unitsEports to the consumption centre)s. "his volume of fertili&er consists of a out ?@ lakhs tones of comple! fertili&ers which have to e moved from kandla to almost all the states and union territories of the country. "he urea plant at kalol caters to needs of +ujarat, 2aharashtra, %ajasthan and 2.5. the plant of *onla has to meet the re(uirement of the states of 7.5., ,aryana, 5unja , ,.5., ;harkhand, %ajasthan and 2.5. the 5hulpur plant of I33#4 serve the states of 7.5., 2.5., :ihar, 4rissa, West :engal, and 6..., $tates. I33#4 also operates at the port of 2angalore for handling and distri uting the imported urea. Imported urea is sent mostly to the four southern states and also sometimes to the southern parts of 2aharashtra. "hus the sweep of I33#4 transportation operations covers almost the entire country. "he e!tent of the I33#4)s freight movement can e gauged from the fact that society contri utes nearly ?I of the fright traffic of the Indian %ailways y moving most of its fertili&ers and almost all the inputs such as coal, naptha, furnace oil, ishs, ammonia etc y rail. "he strategy re(uired to ensure timely and ade(uate supply of fertili&er to all the users involves making use of a judicious mi! of various modes of transportation. 7nlike the case of certain ulk commodities like coal, ore, steel etc. where identifia le close circuit movements e!its, no such movements are applica le in case of fertili&ers. * plant has to send its product to a very large num er of rake points spread over length and readth of the country making it a complicated movement. "he transportation of fertili&ers is a comple! process mainly ecause of peculiar characteristics of fertili&er product and its

CD

demand. "he transportation characteristics of commodity are dictated y a large num er of factor vi&. (a) $patial distri ution of production centre)s J ( ) $patial distri ution of demandEconsumption areasJ (c) Whether the commodity is eing produced round the year or only during a particular seasonJ (d) Whether the commodity is prone to deterioration during transit and storage and so onJ (e) Whether its demand is seasonal or perennial. (f) Whatever e the commodity is prone to deterioration during transit and storage and so on.

3ertili&er is produced round the clock while the demand is seasonal. *s a result, fertili&ers have to e placed in warehouse well in advance of consuming seasons and in a properly distri uted manner at all the demand centers. "he area of coverage eing very large and leads to the destination from the production centers eing long, the ulk of the fertili&ers material has to e moved y rail. ,owever, %ailway can)t provide door to door step services. "herefore, the secondary movement from the rake point to the warehouse and onwards has to e done y the road. *lso, the areas around the production centers within the -BB kms mostly served y road due to road transport eing more economical within this range. *t times road transportation is resorted to for longer distances too due to economic as well as market factors.

I33#4 has een moving a out 8DI of its product y rail and ?@I y road. "he ratio is likely to remain sta le for (uite sometimes as I33#4 has location advantages of eing close to the trunk routes of the %ailway at 5hulpur, *onla and Galol. "his ensures good availa ility of wagons and direct link to all major demand centers. "he major o jective of the transportation is to make right type of fertili&ers availa le at right place at right time and in right (uantities.

CA

Mo e*ent as statuar( reGuire*ent and *ar+et needs #or phospatic #ertili9ers

6early A8I of the farmers in our country have marginal land holding of less than - hectare. "herefore, the use of fertili&er in our country is of piecemeal nature and most farmers re(uite only a few ags of fertili&ers each for their use. *s a result, fertili&er material cannot e moved in loose ulk. It has to moved in ags of different si&es ranging from =B kg to -= kg the material is a hygroscopic commodity and therefore, its transportation has to e done with great caution. 4rder given y the depts. 4f fertili&ers. * very close monitoring is done on the day' today asis in the regard.

BLOCK D)A*RAM O" TRAN+PORTAT)ON

TRAN+PORTAT)ON O" "ERT)L)+ER

RA5L

R1A6

F2LL RA03

2 '15N7 RA03

2<'<> 2?>1R5

3=7RA FR35 47 ,A; B3 'A56 5N '3A0 )3A)1N

C8

;ail<;oad *i!
I33#4 has een moving a out A=I of its product y rail and -=I y road. "his ratio is likely to remain sta le for (uite some time as I33#4 has location advantage of eing close to the trunk routes of the railway at 5hulpur, *onla and Galol. "his ensures good availa ility of wagons and direct link to all major demand centers.

*onla unit in total transportation ? *pril -BB8'<? 2arch -BBC is -BB=?<B @@<C<D y %oad transportation ?=D??C@- y %ail transportation

"he main o jective of transportation is to make right of fertili&er availa le at right place at right time and in right (uantities. "he railways have een playing a dominant and via le role in the distri ution and movement of fertili&ers. ,istorically, the %ailways used to carry CBI of the fertili&ers till early seventies. ,owever, with the improvement in road transportation had increased. 4n the national scene, the %ailways are carrying a out A<I of total fertili&er in the country. "he remaining -AI is moved y road. 4ut of the total freight traffic handled y Indian %ailways, fertili&er constitutes a out =I of the volume. In case of fertili&er and some other major commodities, the %ailways continue to maintain its predominant role. "his is asically ecause of the transportation characteristics of these commodities. "he very leads, the ulk si&es of (uantities and faster transit time has made it essential for these commodities including fertili&er to remain rail'dependent in a ig way. $ince the development if road has stagnated, the %ailways are ound to play a major in movement of fertili&er. "his is further reinforced y the fact that rail transportation is more energy efficient and less pollutant than any other mode of transportation. 3ertili&er is produced round the clock while in demand is seasonal. *s result, fertili&er have to e placed in warehouses as well as advance of consuming seasons and in a properly distri uted manner at all the demand centre)s. "he area of coverage eing very large and the leads of destinations from the production centre s eing long, the ulk of fertili&er material have to e moved y rail. ,owever, railways cannot provide door'to'door service. "herefore, the secondary movement from rake points to the warehouses and onwards has to e done y road. *lso, the areas around the production centre within the range of -BB kms are mostly served y road transport eing more economical within this range. *t times, road transportation is resorted to for longer distances due to economical as well as markets factors. CC

T;A47'O;TATIO4 54%:; :CA MO=:M:4T

",. %.I2:7%$.2.6" 43 "%*6$545"*"I46 #,*%+.$ *884W.D 3%42 9*%I47$ 54%"$ "4 DI33.%.6" $"*".$ *%. 84W. %*I8 3%.I+," W*$ 3I%$" %.9I$.D W...3 ?.D.-BBD. %4*D #42546.6" 43 3%.I+," W*$ 64" %.9I$.D 34% 846+ "I2. "I88 ?.@.-BBA. ",. I25*#" 43 $75%.2. #47%" 4%D.% *884WI6+ 84*DI6+ 75"4 C 2" 468L I6 ",. "%7#G ,*$ $"I88 64" "*G.6 I6"4 *##476".

%:LA) I4 %:LI=:;)
In any contract, the time and date of the delivery is the essence of the contract. In the event of delay in the e!ecution of the order eyond the date of delivery as stipulated in the order, the project authorities may take following actions F ?. *ccept delayed delivery at price reduced y a sum e(uivalent to B.= I if the value goods not delivered for every week of delay or part thereof limited to a ma!imum of =I of the contract value. OR

-. #ancel the order in part or full and purchase such cancelled materials from elsewhere on account and at the risk of the suppler without prejudice to his right inspect of goods delivered.

?BB

LOEI7TIC7

8ogistics is the term originally used in the military sphere to descri e the organi&ing and moving of troops and e(uipment. It is now applied to any detailed process in an organi&ation which entails the distri ution or redistri ution of resources. 8ogistics 2anagement included 3orecasting of Demand and 2atching $upplies to meet the demand through procurement of 2aterial, 5roduct $cheduling, Inventory 2anagement, 4rder 5rocessing Warehousing and "ransportation. "ransportation is a critical function within the overall logistics discipline

?B?

Iffco has C ,elt con e(or ",c$ which are coded as c'B?, c'B- 1 c'B< etc. :elt conveyor plays a important role of logistics in I33#4 *468* 76I". "hese elts are connected from as follows> (?) 7%.* 5%I88 "4W.% "4 "%*6$3.% "4W.% -C<12"AO4LA<2$, -C</2"AO4LA<22$ (-) "%*6$3.% "4W.% "4 $I84 -C<1/"AO4LA<2$ -C<//"AO4LA<22$ (<) $I84 "4 "%*6$3.% "4W.% -C<13"AO4LA<2$ -C</3"AO4LA<22$

(@) "%*6$3.% "4W.% "4 5%4D7#" ,*6D8I6+ "4W.% -C<10"AO4LA<2$ -C</0"AO4LA<22$,-C</0A"AO4LA<22$

?B-

HOA TH: -:LT CO4=:):; AO;&7 M

:#'B? *6D :#'-? #arries urea from 5rill tower to transfer tower, if product handling (5,) Department is working and they needed urea at that time then they carries urea from transfer tower to product handling department y elt conveyor :#'B@, :#'-@ and :#'-@*.If they are not need urea at that time they transfer urea to their godowns(7ILO<2 & 7ILO</$ y elt conveyor :#'B- and :#'--. When production is not up to mark then product handling department uses urea of 7ILO<2 & 7ILO</ and carries urea from silo'? 1 silo'- to transfer tower y elt conveyor :#'B< and :#'-<. "hen urea moves from transfer tower to product handling department y elt conveyor :#'B@ 1 :#'-@, :#'-@*.. ?B<

CHA'T:;<2/ Eo t. 'olicies related to the IFFCO

548I#L .69I%462.6" :L +4I 4'7 III *66476#.D 46 8", 2*% BA .33.#"I9. 3%42 I$" 4#" BD "4 <?$" 2*% -B?B 34% I6DI+.647$ 7%.*. 64 5.%2I$$I46 %.M7I%.D 34% 5%4D7#"I46

:.L46D ?BBI 43 %.'*$$.$$.D 7%.* #*5*#I"L 43 ",. 76I". =BI %.+78*".D *6D =BI D.'%.+78*".D

548I#L WI88 #46"I67.. .*#, 2*673*#"7%.% "4 2*I6"*I6 * 2I6I272 43 46. *6D 2*OI272 43 ",%.. P"(M)"* +T,-. P,(/T+ (P+P) I6 .*#, DI$"%I#" W,.%.9.% ",. 3.%"I8I$.% I$ "4 :. $48D. * 5$5 I$ * W*%.,47$. I6 * DI$"%I#" W,.%. 2*63%$ *%. $7554$.D "4 $"4%.E %47". 2*".%I*8 34% 37%",.% DI$"%I:7"I46 I6 ",. DI$"%I#". $"*".$ WI88 :. %.M7I%.D "4 *884#*". ",. .6"I%. M7*6"I"L 43 %.+78*".D *6D D.%.+78*".D 7%.* "4 :. $7558I.D :L ",. #425*6I.$ :L -B", 43 5%.#..DI6+ 246", I6 * DI$"%I#" WI$. 246", WI$. *6D $7558I.% WI$. 34%2*". D43 $"I578*".$ "4 5%.54$I"I46 A=I 43 246",)s %.M7I%.2.6" 46 I$" D*L *6D ?BBI 46 ?=", D*L.. M 246I"4%I6+ 43 7%.* 249.2.6" ",%47+, * #4257".%I$.D $L$".2 #*88.D 3.%"I8I$.% 246I"4%I6+ $L$".2 (32$). $7:$IDL WI88 :. 5*ID 468L W,.6 ",. 7%.* %.*#,.$ ",. DI$"%I#" I6 #4634%2I"L WI", ",. DI$"%I#" WI$. $7558L 58*6 7584*D.D I6"4 32$. $7:$IDL WI88 :. %.$"%I#".D "4 ",. M7*6"I"L 2.6"I46.D I6 ",. 246",8L 58*6 .9.6 I3 ",. $7558L .O#..D$ 58*6.

?B@

I6 #*$. 43 %.#.I5" 43 7%.* I6 * DI$"%I#" 3*88I6+ $,4%" 43 246",8L 58*6, $7:$IDL WI88 :. %.$"%I#".D "4 *#"7*8 %.#.I5" I6 ",. DI$"%I#" D43 WI88 2*I6"*I6 :733.% ",%47+, 8.*D 3.%"I8I$.% $7558L #425*6L I6 ",. 2*;4% $"*".$. ",. M7*6"I"L 43 :733.% $"4#G I$ "*%+."".D =B,BBB 2" I6 * $"*".. 75 WI88 ,*9. AB,BBB 2" :733.% $"4#G. +4I ,*$ :..6 .25,*$IKI6+ ",*" $7558I.$ 43 D*5E245 WI88 :. "%.*".D I6 ",. $*2. 2*66.%, ",47+, I" I$ * D.#46"%488.D #422DI"L.

",. 5%4#.$$ 43 5%.5*%*"I46 43 246",WI$., DI$"%I#"WI$. *6D $7558I.% WI$. 58*6 *6D I"$ 246I"%I6+ ,*$ :..6 $"*%".D

?B=

I5ALIT) 'OLIC)

I7O D112</111

I33#4 *onla unit is committed to achieve satisfaction of its co'operative societies, farming community and customers y manufacturing and customer y manufacturing and customers y manufacturing and supplying specified (uality product, y pursuing> I*pro e*ent o# technolog( #or enhancingF *aintaining producti it( and gro8th. Creating sa#e and health( 8or+ing conditions and eco<#riendl( en oir*ent. Co<operation and tea* spirit. %e elop*ent o# Hu*an ;esource. Continual i*pro e*ent o# e##ecti eness o# its Gualit( *anage*ent s(ste*. ?BD

I*ple*entation o# I71 D112</111

2arketing division has een awarded /certificate of approval0 of I$4CBB?'-BBB y :9MI for Hmarketing fertili&er, strengthening co'operatives and providing services to farmers and rural community). "he certificate of approval was effective from B=EBDE-BB? and is valid for a period of < year su ject to e continued satisfactory operation of HMuality 2anagement $ystem). "his also provide I33#4)s marketing division with the distinction of eing one of the very few fertili&er marketing setups in the country to in dependently achieved I$4 CBB?'-BBB earlier in totality or as individual fertili&er production units.

8aunching of this activity was started with a top management awareness programme on march A,?CCA. "his was followed y a series of awareness programme for the entire group of marketing functionaries from almost all over the country. $imultaneouslyJ workshop wear also held for documentation of (uality policy, (uality manual and (uality system procedures(M$5). In all @? procedures for various activities in the marketing division documented. "he following are most important procedures developed from the view'point of the implementation of I$4 CBB?'-BBB.

1. 2anagement review 2. Document and date control 3. ,andling customer complaints 4. #ontrol of non'conforming products 5. #orrective and preventive action 6. #ontrol of (uality records Documentation of M$5 s has resulted in developing total transparency in various procedures followed in the division. $pecial attention is also eing paid to customer ?BA

complaints and on taking corrective and preventives actions to avoid non' conformities. I$B implementation helps in continues improvement of Muality $ystem through various mandatory reviews and audits.

Iualit( polic( state*ent is presented ,elo8

/I33#4)s marketing division is committed to achieve customer satisfaction through providing services to the farming community, strengthening co'operatives and ensuring timely availa ility of fertili&ers in the entire marketing area.0

In pursuance of the a ove I33#4 marketing division would strive to> #ontinue to provide (uality fertili&ers, marketing support to co'operatives and e!tension services to a farmer and ring a out (uality improvement. .ducate farmers in maintaining soil health and to enhance crop productivity through alances and efficient use. :ring a out continuous improvements in all marketing operations. 2aintain and develop /organi&ation culture0 ased on team workJ harmonious relationship and collective decision'making. 7pgrade the human resources with the latest technical and managerial skills through regular training. .sta lish and maintain market leadership through sale (uality products.

Co*puteri9ation
In order to meet the challenges of growing competition in the market place, updating of marketing intelligence and on'line communication with and amongst the field offices have ecome a solutely essential. #apa le of developing software for the vast re(uirements and providing rapid communication system amongst its various office esta lishments including mem er co'operatives.

?B8

OH7A7 2B112 6 2DDD OCC5'ATIO4AL H:ALTH A4% 7AF:T) AAA;:4:77 7)7T:M OF IFFCO AO4LA 54IT

I33#4 *468* unit is committed for continual improvement and esta lishing, maintaining the occupational health and safety management system at work place, y setting and reviewing o jectives and targets which focuses at>

#ompliance of applica le statutory rules and regulations at workplace environment like factories act, .nvironment pollution act, .lectricity rules and oiler rules.

$trive for risk minimi&ation due to ha&ards identification and contract.

y effective

.mergency preparedness for safety of plant and concerned personnel.

#reate awareness on occupational health and safety matters among employees, contractors and other team mem ers and to ensure their involvement.

?BC

I7O 20112 6 /110

:4=I;O4M:4T 'OLIC) OF IFFCO AO4LA

I33#4 *468* 76I" is committed for continual improvement and protection of environment y setting and reviewing the o jective and target through environment management system focusing at

#ompliance of applica le legislation at work place and other re(uirement, which the organi&ation su scri e. ??B

2onitering and conserving natural resources.

.ffluent and waste minimisation y way of recycling and reuse.

Developing awareness and competence amongest employees, contractor staff and related agencies on environment issues. .mergency preparedness for safety of concerned personnel and plant.

Target o# IFFCO AO4LA 54IT

?) Water consumption reduction less than A.- metre cu eE 2.". 43 7rea. -) 5lantation of ?BBBBB trees per year <) $52 T -BBug E neumetre cu e @) *wareness to -AB peoples per year. =) $pillage of urea @A= 2.". E 2onth D) .ffluent F Drain 5.,. F D.= "4 8.=

???

Learning 8hile training & ;eco**endation6<

/I had done my project in /T;A47'O;TATIO4, LOEI7TIC7 A4% MAT:;IAL CHAI4 HA4%:LLI4E I4 IFFCO, AO4LA 54IT . I have also understood the role of transportation and logistics departments at unit level. *nd came to know that what the role of transportation in organitation. "he time limitation is very importation in usiness that)s why transportation y railway is much important in the comparison of road. It is the cheapest and fastest way of logistics and easier method of fulfilling demand and order.0

??-

Conclusion

"he main aim of I33#4 is optimi&ing the warehousing operations in each state is to make fertili&er availa le to the farmers at the right place, in right (uantity and at the right time. I33#4 would draw plans to take advantage of warehousing facilities availa le in the cooperative sector in the interior areas, wherever storage facilities, coupled with insurance cover is availa le. "he intention is to progressively raise this level to =BI keeping in view the anticipated increase in fertili&er production from I33#4)s plant. .fforts will also e made to maintain high turnover of the warehousing space throughout the country. *lso the development of uffer and feeder warehouses will e undertaken to preposition the fertili&er at the strategic location to maintain a smooth flow during the period of peak demand "herefore it can e said that I33#4 is on sound footing to protect it sta ility and enhance it profita ility y cutting on cost and increasing production in years to come. 3urther I33#4 has also taken various other venture like $.K at 6.884%., 5ower plant at #,*$$I+*%D,, I33#4 "okyo +eneral insurance, I33#4 Gisan $anchar 8.".D., I33#4 has taken ;oint 9enture out of India i.e. 42I3#4 at 42*6, ;4%D*6 India fertili&er company , Industrial #himi(ues D7 $enegal (I#$)and Gisan International "rading 3K. at Du ai. "herefore I33#4 main usiness is 5roduct 1 sell fertili&ers ut it has e!tends its wings for ackward integration1 meet the needs of its services %e(uirement 1 to serve etter to the famer community. . "here are some points that may e given as>' I33#4 has very effective and fast transportation facility I33#4 has very good distri ution channel y which it has very good image in customer mind I33#4 has latest machinery , update techni(ues plants and ,*%DW4%GI6+ $"*33.

??<

I33#4 has special department for (?) 3I%. 1 $*3."L (-) "%*I66I6+ *6D D.9.8452.6" (<) ,4$5I"*8

2ore effective e!ercise should e followed of vigilance against im alance of raw material and work in progress which tends to limit the utility of stocks.

"o strict adherence to production schedule. "o shortening the production cycle. "o change in design to ma!imi&e use of standard parts and components, which are availa le off the shelfR

"o maintain the special pricing to dispose off unusually slow moving items.

??@

-I-LIOE;A'H)

2arketing %esearch

' "homas # Ginncar 1 ;ames % "aylor

%esearch 2ethodology ' Gothari, #.%.' -nd .dition :usiness .nvironment F #herunilam, 3rancis' ,imalaya 5u lishing ,ouse Industrial %elations ' 2onappa, *run F "ata 2cgrew ,ill 5u lishing #ompany I33#4 2aga&ine>

??=