COOPERATIVE

SOCIETY

SUBMITTED TO: SUBMITTED BY:

Dr. Poonam Anand Gurleen Kaur Bhatia
Associate Professor B.Tech (Civil) 4th year
Delhi Technical Campus 35318003416
 INTRODUCTION
• Voluntary association of individuals
• Works on the principle of mutual help and
welfare
• Help people move forward in a collective way
• Seek a balanced adjustment between
collective spirit and individual rights
 FEATURES
• Voluntary and Open Membership
• Democratic Member Control
• Member Economic Participation
• Autonomy and Independence
• Education, Training and Information
• Cooperation among Cooperatives
• Concern for community
• Sources of finance
• Service motive
 ADVANTAGES
• Easy formation
• Open membership
• Democratic control
• Limited liability
• Elimination of Middlemen’s Profit
• State assistance
• Stable life
 DISADVANTAGES
• Lack of capital
• Lack of efficient management
• Lack of unity among members
• Lack of motivation
• Political interference
• Difficult to maintain business secrecy
 TYPES
• Consumers’ Co-operative Society
• Producers’ Co-operative Society
• Co-operative Marketing Society
• Co-operative Credit Society
• Co-operative Farming Society
• Housing Co-operative Society
CASE STUDY OF IFFCO
 ABOUT IFFCO
• Multi-state cooperative society
• Engaged in the business of manufacturing and
marketing of fertilisers
• Reached to more than 5.5 Crores farmers in
India.
• 19% market share in Urea and around 29%
market share in complex fertilisers
• Net worth of $2.3 billion as on March, 2018
 MISSION
• Provide farmers with high quality fertilisers
• Make plants energy efficient
• Commitment to health, safety, environment
and forestry development
 To acquire, assimilate and adopt reliable,
efficient and cost effective technologies.
• Foster a culture of trust, concern and openness
 MEMBERSHIP
• No individual
• National Cooperative Federations
• State level Cooperative Federations
• District, Regional and Primary Cooperative
• Primary Agricultural Cooperative credit
• National Cooperative Development
Corporation
• Government of India
• Public Financing Institutions
PRODUCTS
DISTRIBUTION PROCESS
IFFCO PRODUCTION
AREA OFFICE
SUB AREA OFFICE
WAREHOUSE
SOCIETIES
FARMERS
 STRENGTH
• Government cannot go against farmers
• Demand is more than the production capacity
• Government ensures the availability of raw
materials at reasonable price
• Plants with latest technology and healthy
condition
 Weakness
• In case of less demand in the co-op channel
company ends up with higher stock inventory
• Prices of the products cannot be raised
 OPPORTUNITY
• Reduce energy consumption for per MT of
Urea
• Reduce fixed cost per MT of Urea by
enhancing its production capacity
• Entered into a long term agreement with
Australia
 Threats
• NG supply does not meet the present
requirement of the country
• Problems in NG supply will be reflected in
IFFCO production
• Unstable rate of rock phosphate in
international market
FINANCIAL PERFORMANCE
PRODUCTION PERFORMANCE
SALES
FINANCIAL ANALYSIS
 OUTCOMES
 Majority of the farmers use IFFCO products
and rest use other including Tata, Narmada and
Others.
• Most of the farmers select the fertilizers on the
basis of brand and second major criteria is
availability.
• 70% of the farmers desired 50kg pack and rest
30% prefer 25kg pack.
• 90% of the farmers desired for the plastic bag
and only 10% for the jute bag due to its
moisture controlling property and reusability
and strength.
• In a village about 60% farmer meetings, 15%
field day, 10% socioeconomic and 15% other
promotional programmes were organized by
IFFCO.
• Farmers are satisfied with IFFCO fertilizers.
 REFERENCES
• Roy, A., 2016, A STUDY ON DISTRIBUTION CHANNEL
MANAGEMENT OF IFFCO. Orissa University of Agriculture and
Technology.
• Rananavare, A.M., "The Role Of Cooperative Societies In The
Economic Development Of India"
• Sahu, H., 2015, CUSTOMER VALUE EVALUATION OF IFFCO
FERTILISER., Orisha institute of agriculture & Technology,
Bhuwneshwar.
• Suri, D.K. and Singhal, S., (2013) ”Comparative Analysis of
Financial Performance of Indian Farmers Fertiliser Cooperative Ltd.
(IFFCO)” VSRD International Journal of Business and Management
Research Vol . 3 No. 6June 2013/217 e-ISSN: 2231-248X,p-ISSN :
2319-2194VSRD International