MAJOR RESEARCH PROJECT

ON

A STUDY ON FINANCIAL ANALYSIS OF RAMA PHOSPHATE . .

PVT. LTD. COMAPANY WITH SPECIAL REFRENCE TO
INDORE BRANCH

Submitted to:-

(A Research Synopsis submitted as partial fulfillment for the

award of the Degree of Masters of Business Administration)

(2015-2017)

UNDER GUIDENCAE:
SUBMITTED BY:
Prof. NEHA CHOUHANN GANESH CHANDRA
JOSHI
MBA
3 Sem.
rd

1
 Roll
No.:52770040

Declaration by the Student

I, Ganesh Chandra Joshi hereby declare that the major research project work which
is being presented in the report entitled A study of former expectation towards
branded fertilizer with special references to Rama phosphate Pvt. Ltd. Is an
original work done by me and is submitted to the Devi Ahilya University, Indore
partial fulfillment of requirement for the award of Master of Business
Administration.

I further declare that no material of this report has been copied

from any source and this report has not been submitted to any other University or
institution for the award of any degree, diploma or certificate. The materials
obtained (and used) from other sources have been duly acknowledged in the
project.

Place: Indore Ganesh Chandra Joshi

Date:-

2
 Certificate

This is to certify that Mr. Ganesh Chandra Joshi, student of MBA (FT) IV sem. of
Malwa institute of Science and Technology, Indore (M.P), has undergone a major
research project on A study of former expectation towards branded fertilizer
with special references to Rama phosphate Pvt. Ltd.. Towards partial
fulfillment for the award of degree of master of Business Administration (full time)
of Devi Ahilya Vishwavidhyalaya, Indore and has submitted this project work.

The work has been carried out under my supervision and guidance and is up to my
satisfaction.

Prof. Neha Chouhan

MRP Guide

MIST Indore

3
 Acknowledgement

Report is an excellent tool for learning and exploration. No classroom routine can
substitute which is possible while working in real situations. Application of
theoretical knowledge to practical situations is the bonanzas of this report.

It is really a matter of pleasure for me to get an opportunity to thank all the persons
who contributed directly or indirectly for the successful completion of the project
report A study of former expectation towards branded fertilizer with special
references to Rama phosphate Pvt. Ltd. First of all I am extremely thankful to
our college Malwa Institute of Science and technology , Indore for providing us
with this opportunity and for all its co operation and contribution. I also express
my gratitude to our director who has been a constant source of
inspiration and my special thanks to Prof. Neha Chouhan ( project Guide ) for
his extensive guidance, cooperation and support .

I am also grateful to all our faculty members for their valuable guidance and
suggestions for my entire study.

Ganesh Chandra Joshi

MBA IV sem.

MIST Indore

4
 Preface

The practical study through, conducting the survey and doing project work has a
very significant value. The theoretical acknowledge gained in classroom is not
fruitful and complete unless and units it is implemented on the practical work
either done in the field or inside the organization. It always boosts up our
knowledge in pursuing the theoretical studies. It is the internal part of our
curriculum to conduct survey and project work, which not only accelerates the
managerial skills in us but also broadens our practical prospective.

In view of above the survey on A study of former expectation towards branded

fertilizer with special references to Rama phosphate Pvt. Ltd. Has been
conducted and the project report is before the readers. If any part of this report is
positively by the industry, I will feel that my effort was worthwhile.

5
 EXECUTIVE SUMMARY

My project aims at A study of former expectation towards branded fertilizer with

special references to Rama phosphate Pvt. Ltd. In this study 100 respondents
from the Rama phosphate private limited company were taken, after analyzing the
result of the questionnaires we conclude that even now a days Rama phosphate
private limited company are providing innovative services day by day, but still
there are a lot of customers who are even not aware about these services, the
usage of these services is a different issue.

6
 CONTENT

S.No TOPIC PAGE NO.

1. Introduction 3
2. Scope of the study 3
3. Review of literature 4
4. Objectives 5
5. Methodology 6
6. Outline of the chapter 7
7. Reference 8

7
 INTRODUCTION

Rama Phosphate limited (RPL) , Incorporated on 3 rd September 1984 as a private limited

company was converted into a public limited company on 13 th January 1986, and promoted by
NRI investors Inc., republic of panama wholly owned by Ramsighani,the promoters or Rama
Group of companies . RPL is one of the leading fertilizer manufacturing companies in India. It
has three manufacturing plant located in Indore in Madhya Pradesh, Pune in Maharashtra and
Udaipur in Rajasthan. The companys registered and administrative office is located in Mumbai.

Rama has two business division, fertilizer and edible oil. The company manufactures phosphate
fertilizers such as single super phosphate (powder as well as granule), mixed fertilizer such as
NPK and chemicals such as sulphuric acid, oleum among other. The companys total installed
capacity is 1.81 lacs metric tons of single super phosphate and 1.83 lacs metric tons of sulphuric
acid. The companys oil division has seed crushing capacity of 1.65 lacs MT at an average of 600
TPD. RPL also has its own refinery plant for refining crude soya oil of 33000 MT at 100 TPD.
The products are marketed under the brand name of Girnar and suryaphool which are the
leading brands in Maharashtra , Madhya Pradesh , and Gujarat , among others.
The company operates in two business segments, namely, fertilizer & chemicals, and oil .the
Companys revenue from fertilizer & chemicals segment decreased to 81.7% in FY 2012 as
compared to 86.5% in FY2011. On the other hand, RPLs revenue from oil segment increased to
18.2% in FY 2012 from 13.5% in the previous year.
RPLs soya oil plant is strategically located in Madhya Pradesh, which is the major soya
cultivating state in the country. The fertilizer and chemical plant is well located in Rajasthan
from where the basic raw material rock phosphate is supplied to the entire country. The company
also has a railway siding facility at its Pune plant which helps in the movement of raw materials
and finished goods in bulk. RPL Intends to re launch its defunct Sufla brand edible oil in the
market.

India is one of the worlds largest and oldest agrarian economics. Agriculture is the backbone of
Indian economy. Agriculture contributes more than 26% of the national income of our country. It
earns about 14% of the Indias foreign exchange. It provides employment opportunities more
than 65% of the work force directly and indirectly.
The increasing number in population means higher demand for food. Threats in agricultural
production such as pests, loss of soil fertility and lack of nutrients may result in low percentage
of plants to harvest.
Fertilizer is an organic or inorganic material of natural or synthetic origin that is added to a soil
to supply one or more plant nutrients essential to the growth of plants. Fertilizer is an organic or

8
inorganic material of natural or synthetic origin that is added to a soil to supply one or more plant
nutrients essential to the growth of plants.
Now expectation and the level of satisfaction of farmers is an essential one for withstanding a
brand. The factors influencing the farmers for purchasing branded fertilizer like quality, price,
availability and advertisement.
Today, consumer market is flooded with various brands of fertilizers. Each branded fertilizers
stands out distinctly when grouped with other
Branded fertilizer. This study will take a Rama phosphate as the test company to analyze farmer
expectation towards branded fertilizer company and also analyze level of satisfaction with their
offer product.

Rama phosphate is one of the leading fertilizer manufacturing companies in India. It is public
limited company with stocks listed on stock exchange. Rama phosphates are in existence for the
last 21 year and one of its units at Pune is in existence for last 40 years and pioneer in India. RP
Is listed public limited company on the Bombay stock exchange, National stock exchange and
other stock exchanges in India.

The total installed capacity of the company is 4.63 lac MTs of single super phosphate and 1.83
lac MT of sulphuric Acid.
RPL is one of the largest manufactures in India. The products of RPL are marketed in various
states in the country under brand name of Girnar Suryaphool. Both the brands are leading
brands in the state of Maharashtra, M.P., Chhattisgarh, Rajasthan, Karnataka, Gujarat etc.

The company oil division is situated next to its fertilizer division within the same premises and
has capacity of seed crushing of 165000 MT at an average of 600 TPD. The company plant is
fully integrated plant with all requisite facilities for storage of seeds in silos, crushers expender,
DT, Flakers, storage godown for de oiled cake and tanks for storing crude oil. The main
highlight of its oil plant is that it has been awarded ISO- 140001 from japan for environment
protection in the factory premises.

Product range of the company include

Single super phosphate (powder as well as granule )

Mixed fertilizer namely NPK

Chemicals like sulphuric acid, oleum, etc.

Incorporated in 1984, Rama phosphates limited (RPL), a profit making company belonging to
the Ram Singhani group, Rama phosphate is engaged in phosphate fertilizer.
The company manufacturing 66000 TPA of single super phosphate (SSP) fertilizer and 33000
TPA of Sulphuric acid . During 1993 84, it doubled its manufacturing capacity. Its capacity
utilization has always been above 100% touching a high of 142% during 1989 90.
Krishi Rasayan, it loss - making subsidiary, was merged with the Indore plant. Consequently,
krishi Rasayan has become Rama krishi Rasayan, a division of Rama phosphates. The subsidiary
company was manufacturing oleum 23 and oleum 65 as derivatives of sulphuric acid.

9
The company has also ventured into manufacturing new chemicals like chlorosulphonic acid
which is used as an intermediate in the pharmaceutical industry. It has decided to set up a single
super phosphate plant at Udaipur, Rajasthan with a capacity of 400 TPA. It already has SSP
plants at Pune and Indore. The plant has started production.
The companys project for manufacturing single super phosphate (SSP) was commissioned
during 1996 97. The company has also expanded the manufacturing facility for sulphuric acid
at Indore as well as at Pune.
In the year 1997 98, Rama Krishi Rasayan was merged with the company.
During the year 1999, the company was able to increase capacity utilization of the refinery to
83% as compared to 58% in the previous year .
The company was able to increase capacity utilization of refinery of 143.26% as compared to
83% in the previous year.

Manufacturing facility

There are three branch of India

1. Indore division
2. Pune plant
3. Udaipur plant

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Indore division :-

a. Fertilizer Division :-

The company has state of the art manufacturing facility for production of single super
phosphate in both Granule and powder form and sulphuric acid which is used mainly for captive
consumption and also to cater requirement of local customer in its place of operations at Indore,
Pune and Udaipur.

The companys Indore plant has installed capacity of 250000 MT of SSP and, 102000 MT of
Sulphuric acid. The company has in house captive power generation facility which is
generated by exo thermic heat produced in the process of manufacturing Sulphuric acid.

The turbo generator power generation is one of the most efficient power producing system with
all imported equipment from KKK , japan and Germany. The entire power requirement of the
units is fully met with generated power and thus there is no need for the company to purchase
power from outside agencies. In addition, company has stand by diesel Generator system which
can cater to the entire requirement of the plant at its peak level.

The companys sulphuric acid plant is set up with DCDA technology and one of the pioneers of
sulphuric acid plant in M.P. with total capacity Grade acid .

a. Oil Division :-

The companys oil division is situated next to its fertilizer division within the same premises and
has capacity of seed crushing of 165000 MT at an average of 600 TPD. The companys plant is
fully integrated plant with all requisite facilities for storage of seeds in silos, crushers, expanders,
DT, Flakers, storage godown for de oiled cake and tanks for storing crude oil.

Parallel to crushing plant, company is also having its own refinery plant with alfa laval
technology for refining crude soya oil of 33000 MT at 100 TPD. The companys brand sufla
is one of the most popular brand in M.P. and other Northern parts of India and had won several
awards from SOPA.

The main highlight of our oil plant is that we have been awarded ISO 140001 from japan for
Environment protection in the factory premises .

11
 Pune Plant

The companys Pune is one of the oldest SSP plant in India with existence of over 50
years, popularly known as Rama Krishi Rasayan. The plant is situated on the outskirts
of city of Pune in Maharashtra and is fully integrated plant with all requisite facilities
such as railway siding, sulphuric acid plant, oleum plant, SSP plant, Granulation plant,
mixed fertilizers plant, packing plants etc.

The total capacity of the plant is 165000 MT of SSP and 350 TPD of GSSP, 150 TPD of
mixed fertilizers and 81600 MT of sulphuric acid & oleum.
The plant also has its own captive TG power generation system wherein electricity is
generated through exo thermic heat generated in the process of production of sulphuric
acid which partly caters to the requirement of entire plant. In addition, company has its
own DG set which can cater to the requirement of the plant in case of emergency.
The availability of railway siding and strategic location of the plant has put the company
in most advantageous position as it can transport its basic raw material rock phosphate
from the mines located for away in Rajasthan as also imported Rock phosphate from
nearby ports of Mumbai and also transportation of its finished goods by rail to strategic
location situated in different parts of the country.
The company has recently launched micronutrients namely magnesium sulphate to cater
to the growing demand.

Udaipur plant

The unit is situated in Jhamar kothra which is on the head of rock phosphate mines. Thus
the availability of basic raw material, i.e. rock phosphate has made this unit as most
strategic unit of the company. The entire unit is fully integrated with in house facilities
such as rock grinding, finished goods storage including granules as also stand by DG
power sets.
The companys installed capacity is 181000 MT of SSP.

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 Competition:-

SSP is one of the fertilizers which are in bulk demand in India and ther
There are certain few peer companies whose one of the products manufactured is SSP; they are
manufacturing other complex
Fertilizers along with manufacturing SSP. We face substantial competition for our
Domestic market. Our competition varies for our products and regions. Some of our major
competitors are:

Rama Phosphates Limited

Khaitan Chemicals & Fertilizers Limited

Shree Pushkar Chemicals & Fertilizers Limited

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 SCOPE OF STUDY

The scope of the study reveals the farmers brand preference towards fertilizers in Tiruppur
district. The vital purpose of the study has been conducted to identify the farmers attitude and
evaluate their preferences towards brand and find out the factors in which it decides the buying
decisions regarding fertilizers. The outcome of the study would suggest right solutions to the
problems identified.
Scope of the study mainly highlights the company and market performance analysis of fertilizer
sector. The study is mainly concentrated on the performance aspect of the sector. To analyze the
performance of fertilizer sector, company related ratios were calculated. The data has been
collected for a period of 10 years, i.e., from 1st April 2000 to 31st March 2009. This study is
limited to the company analysis of fertilizer sector.

14
 LITRATURE OF REVIEW

Naga et al. (2013).conducted a study on effect of Foliar Application of Micronutrients on

Growth Parameters in Tomato ( Lycopersicon esculentum Mill.).The treatments consisted
of boron, zinc, molybdenum, copper, iron, manganese and mixture. All the
Micronutrients except manganese at 50 ppm were applied at 100 ppm in three sprays at
an interval of ten days starting from 30 days after transplanting. All the treatments
resulted in improvement of plant growth characteristics viz. plant height, number of
primary branches, compound leaves, tender and mature fruits per plant in both the
varieties out of which application of micronutrients mixture showed the maximum effect.
In tomato cv. Utkal Kumari, maximum growth rate (85.7 %) was observed with
application of zinc, followed by application of micronutrients mixture (78.2 %) and
boron (77.5 %). Tomato cv. Utkal Raja, maximum increase in branches per plant was
observed with the application of manganese (148.7 %), followed by micronutrient
combination (144.1 %). In UtkalKumari, the fruit yield per plant ranged from 1.336 kg
to1.867 and in Utkal.

Meenakumari and Shekhar (2012) An experiment was conducted to determine the

effect of vermicompost and other fertilizers on growth, yield and fruit quality of tomato
in the field condition. The field trails were conducted using different fertilizers having
equal concentration of nutrients to determine their impact on different growth parameters
of tomato plants. Six types of experimental plots were prepared whereT1 was kept as
control and five others were treated by different category of fertilizers (T2-Chemical
fertilizers, T3-Farm Yard Manure (FYM), T4-Vermicompost, T5 and T6- FYM
supplemented with chemical fertilizers and vermicompost supplemented with chemical
fertilizer respectively).The plots (T6) showed 73% better yield of fruits, and dry weight
of leaves, dry weight of fruits, number of branches and number of fruits per plant than
control, followed by T5.

Suge et al.(2011) reported on the effect of organic and inorganic sources of fertilizer on
growth, yield and fruit quality of eggplant (Solanum Melongena L). The experiment
aimed at evaluating the effect of combination between two levels of the recommended
mineral fertilizers(50% and 100% of research recommended rates) with three types of
organic manures on growth, fruit yield and quality of egg plant(Solanum melongena L)
var.black beauty. The experimental design was split plot design with three replications,
where two levels of mineral fertilizers treatments (50% and 100%) were randomized in
main plots while three types of organic manures(FYM, Compost and Tithonia) and
control. treatments were
randomized in the subplots. Results showed the Soil fertilized with 100% recommended
NPK combined with organic manures produced the superior growth of plants and the

15
 highest amount of total fruit yields. The promising combination was 100% of
recommended NPK combined with farm yard manure produced the best response.

Patro et al. (2005) obtained highest total productivity of rice-wheat with Sesbania green
manure along with 180 kg N ha-1 applied to rice and 150 kg N ha-1 applied to wheat in
sequence. Similarly, Singh (2006) found that 25 or 50% of recommended N through
FYM, press mud and paddy straw and the rest of recommended N through inorganic
fertilizers gave significantly higher grain and straw yields of both rice and wheat over
75% of recommended N through organic sources and 25% recommended N through
inorganic fertilizers.

Satheesh and Balasubramanian (2003) reported that application of FYM (10 t ha-1) in
combination with neem cake (3 t ha-1) has been found to be equally effective for getting
higher grain yield as compared to nitrogen application through fertilizers. The significant
increase in grain yield was supported by higher number of effective tillers and 1000-grain
weight. Yaduvanshi (2003) evaluated the effect of the substitution of inorganic fertilizers
with organic manures on yield of paddy grains.

Halepyati (1991) reported that application of 50 per cent P2O5 of rice to Sesbania
rostrata and remaining 50 per cent to rice crop recorded 30 and 13 per cent higher grain
yield of rice when compared with application of all 100 per cent P2O5 to rice and all 100
per cent P2O5 to Sesbania rostrata, respectively. Budhar et al. (1991) recorded
significantly higher grain yield of rice with the application of green manures over control
but observed no difference in productive tillers per hill, panicles m-2, filled grains per
panicle and 1000-grain weight.

Verma (1991) concluded that application of 10 t FYM ha-1 to paddy could save 50 per
cent of chemical fertilizer requirement under Palampur conditions. Studies conducted at
Palampur by Sharma (1992) indicated that application of 10 t FYM ha-1 alongwith 50 to
150 per cent recommended NPK to rice or wheat significantly increased the grain and
straw yields.

Wang et al. (2006) in an experiment found that soil microbial biomass to carbon added
with organic fertilizers increased faster than added with inorganic fertilizer. Also
Yangchun et al. (2007) observed that the application of organic manures with a reduced
amount of commercial chemical fertilizer increased the content of soil organic C,
microbial biomass carbon compared to the treatment with inorganic fertilizer alone.
Masto (2006) reported that application of farmyard manure plus NPK fertilizer
significantly increased soil organic carbon and microbial biomass compared to the
treatment with NPK fertilizer alone.

Sharma (1992) reported that plant height, number of shoots and dry matter accumulation
of both rice and wheat increased consistently with increase in fertilizer levels from 50 to
150 per cent of the recommended NPK in rice-wheat cropping system at Palampur.

16
 Increase in fertilizer level from 50 to 100 per cent of recommended NPK also resulted in
significantly higher plant height and dry matter accumulation in wheat (Kumar, 1996).

Tolanur and Badanur (2003) reported that available N, P and K contents increased
significantly with the application of various organic sources of nutrients in combination
with fertilizers over the fertilizers alone. Increase in organic carbon, available N, P and K
contents in soil by the application of FYM or green manure has also been reported by
various workers (Yaduvanshi, 2001; Bastia, 2002; Bisht et al., 2002; Bajpai et al., 2002;
Singh and Singh, 2003; Dutta and Bandopadhyaya, 2003).

Arjan van Rooij has opined that a long-term perspective on R&D at the Dutch chemical
company DSM illuminates two crucial and interrelated challenges in the management of
R&D. On the one hand, companies must keep their research focused on the technologies
and markets they use and avoid research its sponsor cannot profit from. On the other
hand, companies must enable R&D to generate the options that can revitalize its current
businesses and open up new ones. These options may be risky and fall outside the
framework of current markets and technologies but at the same time promise high profits
and ensure survival in competitive, high-tech industries. To realize the full potential of
R&D, companies need to create an arena for research: a space where R&D can generate
options and where mutual commitment between R&D and the company can be nurtured.

Banu Suer in his paper, analysed the production structure of the UK manufacturing
industries by estimating a translog cost function for the period 1955-88. His aim was to
estimate technical change parametrically. In the cost function estimation of productivity,
it is statistically necessary to assume that all systematic explanatory variables have been
properly accounted for. Hence the econometric estimation involves explicit assumptions
about the error structure. There is no reason to expect this error structure to be similar to
the one assumed in the residual derivation of total productivity growth. Several
conclusions arise from his estimation:

17
 OBJECTIVE OF STUDY

To analyses the farmers brand preference of fertilizer in Indore

district.

To find out the factors influencing the farmers to buy from Rama
Phosphate branded fertilizer company

To study the Growth of Fertilizer Industry in India .particularly in MP.

To know the sales turnover and profit performance of Rama Fertilizer

TO measure satisfaction level of farmers from Rama phosphate ltd. company

18
 Research Methodology

What is research ?

Research is defined as human activity based on intellectual application in the investigation of

matter. The primary purpose for applied research is discovering, interpreting, and the
development of methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe.

Methodology

It is the method followed while conducting the study on a particular project. Though this
methodology a systematic study is conducted on the basis of a report is produced.

It is a written game plan for conducting Research. Research methodology has many dimensions.
It includes not only the research methods but also considers the logic behind the methods used in
the context of the study and explains why only a particular method or technique has been used. It
also helps to understand the assumptions underlying various techniques and by which they can
decide that certain techniques will be applicable to certain problems and other will not. Therefore
in order to solve a research problem, it is necessary to design a research methodology for the
problem as the some may differ from problem to problem.

Types of research

This study is Descriptive in nature. It helps in breaking vague problem into smaller and precise
problem and emphasizes on discovering of new ideas and insights.

Research design

Research design constitutes the blue print for the collection, measurement and
analysis of data. The present study seeks to identify the extent of preference of

19
Research Instrument

The instrument used for gathering data was questionnaire. To get further insight in to the
research problem, interview regarding their buying practices too was made. This was done to
crosscheck the authenticity of the data provided. To supplement the primary data and to facilitate
the process of drawing inference, secondary data was collected from published sources like
magazines, journals, newspapers etc.

Sampling Size and Design

In this research project descriptive research design is used. Judgment and convenience sampling
method will be used to get the information about Rama phosphate private limited company.

Sampling Size

It indicates the number of people to be surveyed. Through large samples give more reliable
results than small samples but due to constraint of time and money, the sample size was
restricted to 150 respondents. The respondents belong to former.

Sampling Units

It defines the target population that will be sampled i.e. it answer who is to be surveyed. In this
study, the sampling unit is the people of Rama phosphate private limited company Indore.

Source of data

Following are the methods of sources of data.

Secondary data
Articles ,magazines published from time to time
Through internet

Primary data

Questionnaire was used to collect primary data from respondents. The questionnaire was
structured type and contained questions relating to different dimensions of

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 ECONOMIC AND INDUSTRY SCENARIO

The Indian fertilizer industry consists of two key segments Urea fertilizer and non-urea
(Phosphatic) fertilizers, whilst Urea accounts for more than 50% of total fertilizer
consumption in the country and this industry is dominated by major players and co-operative
federations/ societies. Out of the other phosphatic fertilizers viz., DAP and MOP is majorly
imported whilst SSP is produced exclusively in the country.
The overall demand for fertilizer products including Urea, DAP, MOP, NPKs and SSP has
increased by 3.03% to 64.475 million MT in 2015 as compared to 62.578 million MT in
F.Y.14. At the same time, during this F.Y.16, it was expected to increase further 3% at 66.37
million MT. It is further hoped that overall demand for fertilizer products are expected to
increase to 68.251 and 69.769 million MT respectively during F.Y.17 and F.Y.18.
With the increase in production of DAP and NP/NPK complex fertilizers in the country, the
share of SSP to total production and consumption has been going down in India over the
years. Nevertheless, India ranks third in global consumption of SSP with 9.7% of total P2O5
consumption, next to China 14.7% and the leader Brazil with 25.6%.
According to ICRA reports, Indias GDP expanded by 7.3% in F.Y. 2015 as compared to
6.9% in F.Y. 2014 though it was mildly lower than the advance estimate of 7.4% released by
the Central Statistical Office and its growth is expected to record a mild uptick to 7.4 7.6%
in 2015-16 and thus outpace the expansion by most countries with a comparable size.

Agriculture Scenario: For achieving desired growth, in general plants need sunlight,
water and minerals and there are only a few soils on earth which have a sufficient content and
availability of plant nutrients to achieve high yields over a longer period without fertilization.
Moreover, fertilizer also compensates the nutrient loss by harvest. Each year additional 80
million people need to be fed whilst available arable land per capita will decrease at the same
time. Thus, it is reported that 80% of future growth in crop production will come from yield
advancements driven by balanced use of fertilizers.
The production of total nutrients (N+P) increased marginally by 0.2% + 3.1% with 12.43 and
4.09 million MT during the period. The sharp increase of NP/NPK complex fertilizers by
about 12.7% contributed to higher production of fertilizer nutrients. All other major fertilizers
experienced negative growth during the year. At the same time, Import of Urea surged 11%
to 8.13 million MT in the first ten months of F.Y.16 as compared to 7.30 million MT in the
corresponding period of previous year whereas import of DAP edged higher by over 50% at
5.57 million MT as compared to 3.65 million MT in the corresponding previous year period
of 10 months.

21
 In India, presently there are 57 large fertilizers plants producing Urea, DAP, Complex
fertilizer, Ammonium Sulphate and Calcium Ammonium Nitrate.
SSP is the oldest chemical fertilizer manufactured in India with multi-nutrient as it contains
Sulphur and Calcium as secondary nutrient with P2O5 as prime nutrient. It is more suited for
crops like oil seeds, pulses, horticulture, vegetables, sugarcane, paddy etc.
With regard to SSP, out of 99 units only 85 are in operation with installed capacity of 103.12
lac MT. Against this, production as reported by FAI up to Feb-16 stands at 35.52 lac MT.
Thus the industry is underperforming as against 38.66 lac MT achieved during the
corresponding period of (11 months) F.Y. 2015. This is mainly due to overall drought like
condition prevailed in length & width of the country during the season went by.
Production of SSP increased significantly after changes in SSP policy during 2008-09 and
implementation of NBS policy from 2010-11. During 2009-10, 2010-11, 2011-12 the
production of SSP recorded high growth rate of 22%, 20%, 17%, respectively over the
previous years. Subsequently, the momentum of growth in production slowed down in 2012-
13 at 2.6% and turned negative in 2013-14 and 2014-15. Production of SSP at 4.175 million
tons in 2014-15 was marginally lower by 0.6% over the previous year. The negative growth
in SSP production was due to a variety of factors, including weak monsoon, liquidity
problem caused by delay in payment of subsidy.
Moreover, the cropping pattern in terms of acreage changes determine the demand prospects
of SSP. Subsequent to flatten paddy acreages and reduction in oilseeds and pulses acreages,
the consumption of SSP has been severely affected.

SSP Consumption: As per the FAI published data available till Feb.2016, it is reported that
approx. 36.41 lac MT SSP were dispatched. Out of this Western zone accounts for 59.27%
followed by east zone (15.18%), north zone (14.05%) and South zone (11.50%). The overall
major consuming states of SSP are given below:

22
 ANALYSIS AND INTERPRETATION OF DATA

Rama phosphate ltd. Share holding

Category No. of share Percentage

Promoters 3220001 18.20
Foreign promoters 10049755 56.80
General public 258427 14.63
Others 1823390 10.31
Financial institute 6320 0.04
NBFC and Mutual fund 5320 0.03

Sales

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

23
 GRAPHICAL PRESENTATION PERCENTAGE METHOD

Preference and Brands-Super Phosphate

Table 2-The table discloses the farmers brand preference of super phosphate.

Brand No. of % of
Farmers Farmers
Coromandel International Ltd (Parry) 27 27
Southern Petrochemicals Industries 62 62
Corporation Ltd ( SPIC)
Coimbatore Pioneer Fertilizer Ltd 11 11
(Kathir )
Total 100 100

24
100%
90%
80%
70%
60%
Series 3
50%
Series 2
40%
Series 1
30%
20%
10%
0%
Category 1 Category 2 Category 3 Category 4

STOCK PRICE (price in RS.)

Last close price 53.10 52wk.high/low 75.85/37.10

(21/09/2016)

25
Market cap(cr) 77.85 Avg. volume 3754.79(1 Mo)

Financials

2008 2009 2010 2011 2012

26
Revenue 267.26 434.95 130.95 354.26 553.97
Gross margin % 5.08 5.90 -35.27 12.88 28.08
Operating Income 8.42 19.80 -49.86 41.23 57.57
Operating margin 3.15 4
%
Net income 60.33
Diluted EPS 54.48

Book value per 92.15

share
36.27
Operating cash
flow
-1.59
Capital
expenditure
free cash flow 34.68

27
 Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar-
00 01 02 03 04 05 06 078 08 09
AVERA 2.018 2.007 2.219 2.177 1.983 1.918 1.951 2.734 2.267 1.830
GE
VARIAN 1.350 1.108 1.895 2.814 2.875 2.088 1.537 14.86 4.378 3.659
CE 4
Z TEST 0.525 0.550 0.195 0.260 0.579 0.711 0.663 0.115 0.238 0.238

TABLE NO. 1

TABLE SHOWING AVERAGE CURRENT RATIO AND Z-TEST VALUES ACROSS

THE YEARS

Source: Data downloaded from prowess and ratio, its average, variance and z- test done using
excel.

From the t test calculated the values found are between 1.833 at 10% significance level. Some
of the companies t-test values were not found. Therefore there is no significance difference
between performances of different companies. The average of averages of the current ratio in the

28
fertilizer industry is 2.029. In this context current assets are more than the current liabilities in
the fertilizer industries. From the z test calculated, it is found that the values are between 1.65 at
10% significance level. Therefore there is no significant difference between the industries across
the years for 10 years. The fertilizer industrys average current ratio has decreased from 2.018 to
1.830. The current assets have been gradually decreased.

1. LIQUID RATIO/QUICK RATIO From the t test calculated, it is found that the values were
between 1.833 at 10% significance level. Some of the companies t-test values were not found.
Therefore there is no significance difference between performances of different companies. The
average of averages of the liquid ratio in the fertilizer industry is 1.329. From the z test
calculated, it is found that all the values are between 1.65 at 10% significance level. Therefore
there is no significance difference between the industries across the years for 10 years. The
average liquid ratio here has been in same level. Therefore the liquidity of assets and liability is
in the same level.

2. INVENTORY TURNOVER RATIO From the t test calculated, it is found that the values
were between 1.833 at 10% significance level. Some of the companies t- test values were not
found. Therefore there is no significance difference between performances of different
companies. The average of averages of the inventory turnover ratio in the fertilizer industry is
6.310. From the z test calculated, it is found that all the values are between 1.65 at 10%
significance level. Therefore there is no significance difference between the industries across the
years for 10 year. The three years z test values are 1. There is an increase in the average turnover
ratio from 4.175 to 7.519 which indicates that there is high turnover.

3. DEBTORS TURNOVER RATIO From the t test calculated the values found were
between 1.833 at 10% significance level. Some of the companies t test values were not
found. Therefore there is no significance difference between performances of different
companies. The average of averages of the Debtors turnover ratio in the fertilizer
industry is 8.931. From the z- test calculated it is found that all the values are between
1.65 at 10% significance level. Therefore there is no significance difference between
the industries across the years for 10 years. The average here has increased from 7.966
to 11.564. This indicates that the firms in the fertilizer industry in India have efficient
management of debtors or the debtors are more liquid.

4. RETURN ON EQUITY From the t test calculated, the values found were between
1.833 at 10% significance level. Some of the companies t-test values were not found.
Therefore there is no significance difference between performances of different
companies. The average of averages of the return on equity ratio in the fertilizer industry
is 268.774. Zuari industries Ltd have the highest value that is 1. From the z test
calculated we can see that all the values are between 1.65 at 10% significance level.
Therefore there is no significance difference between the industries across the years for
10 years. The average here for the 2 years is negative. Here most of the years z value is
1. The averages of the return on equity in the table show that there has been a huge
variation from year to year on the share holders returns.

29
5. GROSS PROFIT RATIO From the t test calculated we can see that all the values are
between 1.833 at 10% significance level. Therefore there is no significance difference
between performances of different companies. The average here is negative, that is
-112.75633. This indicates there is gross loss. But still some of the companies such as
Rewati minerals and chemicals ltd, Aries agro ltd, Karnataka compost Devp. Corp. ltd,
etc have high gross profit ratio. This shows that some of the firms with in the industries
are performing well. From the z test calculated, we can see that all the values are
between 1.65 at 10% significance level. Therefore there is no significance difference
between the industries across the years for 10 years. The average here for the most of the
years is negative value. Most of the years there is no z values.

6. NET PROFIT RATIO From the t test calculated, we can see that all the values are
between 1.833 at 10% significance level. Therefore there is no significance difference
between performances of different companies. The average here is negative that is
-212.929. This indicates there is net loss. From the z test calculated, we can see that all
the values are between 1.65 at 10% significance level. Therefore there is no
significance difference between the industries across the years for 10 years. The average
here for the most of the years is negative values. Most of the years there is no z values.

7.EARNINGS PER SHARE (EPS) From the t test calculated, we can see that all the
difference between performances of different companies. The average of average of EPS
is 5.077. From the z test calculated, we can see that all the values are between 1.65 at
10% significance level. Therefore there is no significance difference between the
industries across the years for 10 years. There is no huge variation in the average EPS.

8. DIVIDEND PER SHARE (DPS) From the t test calculated, we can see that all the
values are between 1.833 at 10% significance level. Therefore there is no significance
difference between performances of different companies. The average of average is
2.296. Here the t value of all company is 0.001. From the z test calculated, it is seen that
all the values are between 1.65 at 10% significance level. Therefore there is no
significance difference between the industries across the years for 10 years. For two years
the z values are one. The companies have fluctuations in the dividend per share due to
companies earnings from year to year.

9. PRICE EARNINGS RATIO From the t test calculated, it is found that all the values
are between 1.833 at 10% significance level. Therefore there is no significance
difference between performances of different companies. Some of the companies P/E
ratio is found to be 0.The average of average is 176.053. From the z test calculated, it is
found that all the values are between 1.65 at 10% significance level. Therefore there is
no significance difference between the industries across the years for 10 years. The P/E
ratio has gradually decreased from 776.785 to 294.537. High P/E ratios indicate that the
investors were paying more for each unit of net income, so the stock was more expensive
compared to one with lower P/E ratio.

10. DIVIDEND YIELD RATIO From the t test calculated, it is found that all the values
are between 1.833 at 10% significance level. Therefore there is no significance

30
difference between performances of different companies. The average of average is
0.028. From the z test calculated, it is found that all the values are between 1.65 at 10%
significance level. Therefore there is no significance difference between the industries
across the years for 10 years. The dividend yield ratio has gradually decreased from 0.066
to 0.029. The dividend paid and the market value is relatively low which results in low
dividend payout.

11. WORKING CAPITAL TO NET SALES From the t test calculated, it is found that
all the values are between 1.833 at 10% significance level. Therefore there is no
significance difference between performances of different companies. The average of
average is -1.937. There is negative relationship between working capital and net sales.
From the z test calculated, it is found that all the values are between 1.65 at 10%
significance level. Therefore there is no significance difference between the industries
across the years for 10 years. The working capital to net sales ratio has gradually
decreased from 0.006 to -1.346. This shows that the firms in fertilizer industry are not
much efficient in managing the working capital requirements.

12. WORKING CAPITAL TO SHARE HOLDERS EQUITY From the t test

calculated, it is found that all the values are between 1.833 at 10% significance level.
Therefore there is no significance difference between performances of different
companies. The average of average is -2.179. There is negative relationship between
working capital and shareholders equity. From the z test calculated, it is found that all the
values are between 1.65 at 10% significance level. Therefore there is no significance
difference between the industries across the years for 10 years. The working capital to
shareholders equity has gradually decreased from 0.805 to 0.626. This shows that the
firms in fertilizer industry are not much efficient in managing the working capital
requirements.

13. NET PROFIT TO NET WORTH From the t test calculated, it is found that all the
values are between 1.833 at 10% significance level. Therefore there is no significance
difference between performance of different companies. The average of average is
267.737. Some companies like Shreeji phosphate ltd and Shriniwas fertilizers ltd has high
average values. Therefore the net profit to net worth is high. From the z test calculated, it
is found that all the values are between 1.65 at 10% significance level. Therefore there
is no significance difference between the industries across the years for 10 years. The net
profit to net worth ratio has gradually decreased from 19.078 to 17.960. The seven years
z test value is 1.

31
 Company profile

The company was incorporated on 3rd September 1984 as a private limited company and was
subsequently convented into a public limited company on 13th January, 1986.
It was promoted by NRI investor inc, republic of panama, wholly owned by Ramsinganis, the
promoters of Rama group of companies.
The company undertook to set up a project for the manufacture of 66000 TPA of single super
phosphate (SSP) and 33000TPA of ulphuric acid at Indore in Madhya Pradesh.
Production at the SSP plant, commenced from 27 th september1987 and that of the sulphuric acid
plant from 23rd march, 1988.
The company entered into an agreement with m/s SS engineering consultants (India) Pvt. Ltd.
For technical know-how inclusive of designs, details of engineering and site supervision etc.

Rama phosphate limited is a fertilizer manufacturing company. The companys principal

products / services include single super phosphate, sulphuric acid and oleum, nitrogen,
phosphorous, and potassium ( NPK), de oiled cake and soya oil. It is in the business of single
super phosphate ( SSP) manufacturing and also industrial chemicals. It manufactures NPK mixed
fertilizer of different grades, which include Girnar and Soyphool. It manufactures value added
fertilizer, boronated single super phosphate from Udaipur unit. Its chemicals division is involved
in the Manufacturing of sulphuric acid and oleum is based at Indore and Pune. Its companys
soya seed crushing and refining unit division is operated from Indore. The company also offers
products, which include zincated single super phosphate powder, linear alkyl benzene sulfonic
acid ( LABSA) and lecithin .

32
Rama phosphates limited are one of the leading fertilizer manufacturing companies in India. It is
a public limited company with stocks listed on stock exchange. Rama phosphates are in
existence for last 30 year and one of its units at Pune is in existence for last 50 years and pioneer
in India. RPL is listed public limited company in Bombay stock exchange.
RPL has two manufacturing wings viz. single super phosphate (power as well as granule), mixed
fertilizers namely NPK of various grades, boronated single super phosphate (powder and
granule), micronutrients namely magnesium sulphuate and chemicals like sulphuric acid, oleum
etc.
The total installed capacity of the company is 5.63 lac MTs of single supper phosphate and 1.83
lac MT of sulphuric acid. RPL is one of the largest manufacturers in India. The products in India.
The products of RPL are marketed in various states in the country under brand name of girnar
and suryaphool both the brands are leading brands in the states of Maharashtra , M.P
Chhattisgarh, Rajasthan, Karnataka, Haryana , Gujarat, etc.
Rama phosphates is one of the leading fertilizer manufacturing companies in India. It is a public
limited company with stocks listed on stock exchanges. Rama phosphates is in existence for the
last 21 year and one of its units at Pune is in existence for last 40 year and pioneer in India. RP is
listed public limited company on the Bombay stock exchange,
The total installed capacity of the company is 4.63 lac MTs of single super phosphate and 1.83
lac MT of sulphuric acid.
RPL is one of the largest manufacturers in India. The products RPL are marketed in various state
in the country under brand name of Girnar and Suryaphool both the brands are leading
brands in the state of Maharashtra , M.P., Chhattisgarh, Rajasthan, Karnataka, Haryana, Gujarat
etc.
The company has state of art manufacturing facility for production of single super phosphate
in both Granule and powder from and sulphuric acid which is used mainly for captive
consumption and also to cater requirement of local customers in its place of operation at Indore,
Pune and Udaipur.
The companys oil division is situated next to its fertilizer division within the same premises and
has capacity of seed crushing of 165000 MT at an average of 600 TPD. The companys plant is
fully integrated plant with all requisite facilities for storage of seeds in silos, crushers, expanders,
DT, Flakers, storage godown for De oiled cake and Tanks for storing crude oil. The main
highlight of its oil plant is that It has been awarded ISO 140001 from japan for in the factory
premises.

Product range of the company includes:

Single super phosphate (powder as well as Granule

Mixed fertilizer namely NPK
Chemical like sulphuric acid oleum,

33
 SCOPE OF STUDY

CONCLUSION

The fertilizer industry presents one of the most energy intensive sectors within the Indian
economy and is therefore of particular interest in the context of both local and global
environmental discussions. Increases in productivity through the adoption of more efficient and
cleaner technologies in the manufacturing sector will be most effective in merging economic,
environmental, and social development objectives. A historical examination of productivity
growth in Indias industries embedded into a broader analysis of structural composition and
policy changes will help identify potential future development strategies that lead towards a
more sustainable development path. The study conducted based on the ratio analysis, t-test and z-
test which helped to analyze the performance of companies in Indian Fertilizer Industry. Various
kinds of profitability ratios suggested the profitability positions of the companies over the years.
Liquidity ratios are the best measure of analyzing company liquidity position. According to the
z-test and t-test in the study it is clear that there is no significant difference between the
performances of companies across the fertilizers industry. It is also noted that the there is
insignificant difference between the industries over the period of time. Financial performance
suggests that all the companies in this sector have performed equally well. Since fertilizer
industry is one of the consistently growing industries in India, its performance over the years is
satisfactory.
The modern market is a highly competitive and transitional one. A company must first decide
what it can sell, how much it can sell and what approaches must be used to entice the vary
farmers. The farmers today do not accept any product, which does not give them complete
satisfaction, and so many products do not find a place in the market. So it can be said that the
modern market is consumer oriented and only the consumers determine any product success or

34
failure. One of the products, which was very successful and had found a permanent place for
itself in the minds of the farmers, is the SPIC and IPL fertilizer. Today consumer market with is
flooded with various brands of SPIC and IPL. Each branded SPIC and IPL fertilizer stands out
distinctly when grouped with other branded fertilizer. Farmers have specific preference or
choice. Farmers analyze the price, quality, advertisement etc. before they buy the product and
hence, it is up to the different brands of fertilizer manufacturers to concentrate on those aspects
and workout better strategy to attract more farmers for their brands. Hence, manufacturers should
feel the pulse of farmers. They should plan their production and distribution activities as per the
needs and convenient of the farmers

Limitation of study

Every research is conducted under some constraints and this research is not an
exception limitations of this study are as follows;-
The share price data for all fertilizer companies were not found
For some fertilizer company financial annual data is not available for all the 10 years
In some cases financial annual data is available and there will be no information
regarding share prices and vice versa.
Averages were used to analyze the financial data, which makes lot of assumptions, which
may make the study far from reality.
Only one table showing z test and t test values for current ratio is given, due to page
constraints given by the editorial board. Similar calculations are done for the other ratios
but the tables are not shown in the paper.

35
OUTLINE OF THE CHAPTER

1. INTRODUCTION

a. SCOPE OF STUDY

2.) LITRATURE OF REVIEW

b. OBJECTIVE OF THE STUDY

2.) COMPANY PROFILE

3.) RESEARCH METHODOLOGY

4.) DATA ANALYSIS AND INTERPRETATION

5.) FINDING AND CONCLUSION

6.) REFFRENCES

36
 BIBLOGRAPHY

http://www.en.wikipedia.org/wiki/International_Fertilizer_Industry_Association

http://www.ezinearticles.com

http://www.tradechakra.com/indian-economy/industries/fertilizers.html

Altman E., (2005), Financial Ratios, Discriminant Analysis and the Prediction of
Corporate Bankruptcy, The Journal of Finance, September, pp.589-609.

Goyal, S N, Man Mohan, (2004), Principles of Management Accounting, Sahitya

Bhawan Publications, Agra. Khan, M Y,, (1997), Financial Service, Tata McGraw Hill

Publishers, Third Edition. Pandey, I M,, (2001), Financial Management, Vikas

Publication, 9th Edition. Wilcox A., (2008), A Simple Theory of Financial Ratios as

Predictors of Failure, Journal of Accounting Research, pp.389-395.

37
 REFRENCE

Kothari C.R, (2005)

https://www.studydhaba.com/wp-

https://www.studydhaba.com

https://books.google.co.in

http://www.india.com/

http://www.drishtiias.com

www.jagranjosh.com

http://www.economywatch.com/business-and-
economy/fertilizer-industry.html

http://www.business.mapsofindia.com/national-fertilizers/

38
 Income statement

In cr Dec-16 Sep-16 Jun-16 Mar-16 Dec- 15 Fy-16

39
Revenue 93.77 81.96 76.24 113.19 83.77 390.24
Other - - - - - -
income
Total 93.77 81.96 76.24 113.19 83.77 390.24
income
Expenditure -87.59 -76.89 -70.98 -105.30 -77.28 -364.15
Interest -2.38 -1.69 -2.25 -2.85 -2.94 -10.64
PBDT 3.80 3.338 3.02 5.05 3.55 15.45
Depreciatio -0.90 -0.84 -0.81 -0.89 -0.92 -3.60
n
PBT 2.91 2.54 2.21 4.17 2.63 11.84
Tax -0.38 -0.82 -0.59 -3.78 - -3.78
Net profit 2.52 1.72 1.62 0.39 2.63 8.07
Equity 17.67 17.67 17.67 17.67 17.67 17.67
EPS 1.43 0.97 0.92 0.22 1.49 4.56
CEPS 1.94 1.45 1.37 0.72 2.01 6.60
OPM % 6.59 6.19 6.90 6.98 7.75 6.69
NPM% 2.69 2.10 2.12 0.34 3.14 2.07

40