a project report on iffco
TRANSCRIPT
A PROJECT REPORT ON
IFFCO
INDIAN FARMERS FERTILISER COOPERATIVE LTD
KANDLA
(A DIVISION OF NIS SPARTA LTD.A RELIANCE ANIL
DHIRUBHAI AMBANI GROUP CO.)
SUBMITTED TO : SUBMITTED BY :
NIS ACADAMY MANEESH KUMAR
TABLE OF CONTENTS
Acknowledgement………………………………………………
Preface……………………………………………………………
INTRODUCTION
ORIGIN OF IFFCO
INDIAN FARMER SUCCESS STORY
(i) IFFCO IN BRIEF
(ii) SHARE CAPITAL
(iii) KANDLA UNIT
MARKETING PERFORMANCE
MARKEING CHENNAL
DISTRIBUTION & WAREHOUSING
MARKETING TERRITORIES OF IFFCO
SALES PERFORMANCE
SALES DURING KHARIF SEASON
SALES DURING RABI SEASON
FINANCIAL PERFORMANCE
TURNOVER
SERVICE TO FARMERS
COOPERATIVE RURAL DEVELOPMENT TRUST (CORDET)
ACTIVITIES OF CORDET
MAJOR AWARDS RECEIVED
VISION ---2010
BROAD VISION OF THE SOCIETY INVESTMENT FOR CAPACITY
INCREASE
US$ 1.5 Billion INVESTMENT IN POWER PROJECT
US$ 0.6 Billion INVESTMENT IN SEZ
IFFCO PLANTS
IFFCO SUBSIDIARIES
IFFCO ASSOCIATES
IFFCO ASSOCIATES
CUMULATIVE ACHIEVEMENTS
CONCLUSION
SUGGESTION
ACKNOWLEDGEMENT
I would like to express my sincere gratitude and thanks to all who in some way or the other helped and guided me in the due course of the completion of this project work. It was indeed impossible for me to accomplish to this task without the timely accelerating encouragement and exuberant support .it will be unfair to mention the name of those who directly or indirectly helped me to make it a success.
It goes beyond words to express my special thanks to Mr. MITESH PATEL , who despite of her busy schedule for providing information which I required for my project.
Thanks all of you Your sincerely MANESH KUMAR MBA 1ST Year
PREFACE
Master of business administration (MBA) one of the most
reputed professional courses which includes both the theoretical
and practical training as a part of two year curriculum. Progress is
the continuous process. It is relative and absolute. We can not stop
at certain destination and declare that target has achieved.
The Industrial visit programs are designed to give the
manager of the future, a feel of the corporate happening and work
culture. These real life situations are entirely different from the
simulation exercise enacted in an artificial environment in side of
classroom. And it is precisely because of this reason that this
industry visit is a bridge between the institute and the organization.
Industrial visit programs made me to understand how theoretical
knowledge will be applied in practical field.
It exactly in this context that I was privileged enough to join
IFFCO,KANDLA. On 20,FEB, 2009, as a Industrial Visit. This
is a cooperative society of FERTILIZER and it is known not only
in professional management, but also in enlightened and
progressive approach towards employee welfare and betterment of
society.
I have collected all the relevant information through this
visit.
INTRODUCTION
ORIGIN OF IFFCO
Till mid sixties cooperatives in India had no production facility despite marketing nearly 70% of fertilisers.
IFFCO was established as the farmers’ own initiative in Cooperative Sector on 3rd Nov. 1967 with the proposed plants at Kalol & Kandla.
With the enactment of Multi State Co-operative Societies Act 2002, the Society is deemed to be registered as a Multi State Co-operative Society. The Society is fully owned by Cooperatives.
Top of Form
.
IFFCO : Indian Farmers' Success Story
During mid- sixties the Co-operative sector in India was responsible for distribution of 70 per cent of fertilisers consumed in the country. This Sector had adequate infrastructure to distribute fertilisers but had no production facilities of its own and hence dependent on public/private Sectors for supplies. To overcome this lacuna and to bridge the demand supply gap in the country, a new cooperative society was conceived to specifically cater to the requirements of farmers. It was an unique venture in which the farmers of the country through their own Co-operative Societies created this new institution to safeguard their interests. The number of co-operative societies associated with IFFCO have risen from 57 in 1967 to 38, 155 at present.
Indian Farmers Fertiliser Co-operative Limited (IFFCO) was registered on November 3, 1967 as a Multi-unit Co-operative Society. On the enactment of the Multistate Cooperative Societies act 1984 & 2002, the Society is deemed to be registered as a Multistate Cooperative Society. The Society is primarily engaged in production and distribution of fertilisers. The byelaws of the Society provide a broad frame work for the activities of IFFCO as a Cooperative Society.
IFFCO commissioned an ammonia - urea complex at Kalol and the NPK/DAP plant at Kandla both in the state of Gujarat in 1975. Another ammonia - urea complex was set up at Phulpur in the state of Uttar Pradesh in 1981. The
ammonia - urea unit at Aonla was commissioned in 1988.
In 1993, IFFCO had drawn up a major expansion programme of all the four plants under overall aegis of IFFCO VISION 2000 . The expansion projects at Aonla, Kalol, Phulpur and Kandla have been completed on schedule. Thus all the projects conceived as part of Vision 2000 have been realised without time or cost overruns. All the production units of IFFCO have established a reputation for excellence and quality. A new growth path has been chalked out to realise newer dreams and greater heights through Vision 2010 which is presently under implementation. As part of the new vision, IFFCO has acquired fertiliser unit at Paradeep in Orissa in September 2005. As a result of these expansion projects and acuisition, IFFCO's annual capacity has been increased to 3.69 million tonnes of Urea and NPK/DAP equivalent to 1.71 million tonnes of P2O5.
IFFCO has made strategic investments in several joint ventures. Godavari Fertilisers and Chemicals Ltd (GFCL) & Indian Potash Ltd (IPL) in India, Industries Chimiques du Senegal (ICS) in Senegal and Oman India Fertiliser Company (OMIFCO) in Oman are important fertiliser joint ventures. Indo Egyptian Fertiliser Co (IEFC) in Egypt is under implementation. As part of strategic diversification, IFFCO has entered into several key sectors. IFFCO-Tokio General Insurance Ltd (ITGI) is a foray into general insurance sector. Through ITGI, IFFCO has formulated new services of benefit to farmers. 'Sankat Haran Bima Yojana' provides free insurance cover to farmers along with each bag of IFFCO fertiliser purchased. To take the benefits of emerging concepts like agricultural commodity trading, IFFCO has taken equity in
National Commodity and Derivative Exchange (NCDEX) and National Collateral Management Services Ltd (NCMSL). IFFCO Chattisgarh Power Ltd (ICPL) which is under implementation is yet another foray to move into core area of power. IFFCO is also behind several other companies with the sole intention of benefitting farmers.
The distribution of IFFCO's fertiliser is undertaken through over 38155 co-operative societies. The entire activities of Distribution, Sales and Promotion are co-ordinated by Marketing Central Office (MKCO) at New Delhi assisted by the Marketing offices in the field. In addition, essential agro-inputs for crop production are made available to the farmers through a chain of 158 Farmers Service Centre (FSC).
IFFCO has promoted several institutions and organisations to work for the welfare of farmers, strengthening cooperative movement, improve Indian agriculture. Indian Farm Forestry Development Cooperative Ltd (IFFDC), Cooperative Rural Development Trust (CORDET), IFFCO Foundation, Kisan Sewa Trust belong to this category. An ambitious project 'ICT Initiatives for Farmers and Cooperatives' is launched to promote e-culture in rural India. IFFCO obsessively nurtures its relations with farmers and undertakes a large number of agricultural extension activities for their benefit every year.
At IFFCO, the thirst for ever improving the services to farmers and member co-operatives is insatiable, commitment to quality is insurmountable and harnessing of mother earths' bounty to drive hunger away from India in an ecologically sustainable manner is the prime mission. All that IFFCO cherishes in exchange is an everlasting smile on the face of Indian Farmer who form
the moving spirit behind this mision.
IFFCO, to day, is a leading player in India's fertiliser industry and is making substantial contribution to the efforts of Indian Government to increase foodgrain production in the country.
IFFCO - IN BRIEF
• Largest producer of fertilisers in the country
• No. of Plant Locations : Five
• Installed Annual Capacity (‘000 MT)
UREA - 4242.2
NPK/DAP - 4335.4
TOTAL ‘N’ - 2628.2
TOTAL ‘P2O5’ - 1712.8
Only Fertiliser Institution in the country to produce 68.47 lakh MT of fertilisers and 93.24 lakh MT of sales during 2007-08
Contributed about 20% to the total ‘N’ and 25% to the total “P2O5” produced in the country during the year 2007-08
Fertilisers marketed through 39564 Cooperative Societies and 158 Farmers Service Centres
Service to the Farmers through a variety of programmes
SHARE CAPITAL
Authorized Share Capital : 1000.00Subscribed and : 423.93Paid up Capital
(All Share Capital wholly owned by Cooperatives only)
FERTILISER PRODUCTION 1037 Lakh MT
57
2552826960 28134
30200
3507237381
39564
1967-68 1974-75 1980-81 1986-87 1992-93 1998-99 2004-05 2007-08
GROWTH IN NUMBER OF MEMBER SOCIETIES
(As on 31st March)
FERTILISER SALE 1126 Lakh MT
CUMULATIVE PRODUCTION TILL DATE
TURNOVER Rs. 92005 Crore PROFIT BEFORE TAX Rs. 6445 Crore
PROFIT AFTER TAX Rs. 4994 Crore
CONTRIBUTION TO EXCHEQUER Rs.5103 Crore
UNIT PRODUCT PRODUCTION
KALOL UREA 139
PHULPUR - I UREA 142
PHULPUR - II UREA 89
AONLA – I UREA 165
AONLA – II UREA 98
TOTAL UREA 633
KANDLA NPK 235
DAP 155
PARADEEP NP 6
DAP 10
TOTAL NPK/DAP 406
TOTAL FERTS. 1039
NUTRIENTS ‘N’ 345
‘P2O5’ 147
KANDLA UNIT
YEAR OF COMMISSIONING : 1975
INVESTMENT : Rs. 24.26 Crore
YEAR OF FIRST EXPANSION : 1981
INVESTMENT : Rs. 28.60 Crore
YEAR OF SECOND EXPANSION: 1999
INVESTMENT : Rs. 205.30 Crore
PRODUCT CAPACITY TECHNOLOGYP2O5 TPA
9,10,000 FOUR STREAMS (A,B,C & D) BASED ON TVA SLURRY GRANULATION PROCESS. TWO STREAMS (E & F) BASED ON AZF PIPE REACTOR TECHNOLOGY.
‘N’ 3,51,540
57.0161.54 64.35
70.12 68.47
2003-04 2004-05 2005-06 2006-07 2007-08
(Lakh MT)
TOTAL FERTILISER PRODUCTION
GROWTH IN PRODUCTION CAPACITIES (Lakh MT)
3.96
8.91 8.91
16.17
23.43 24.91
32.18 32.18
36.89 36.89 36.89
42.42
8.81 8.81 8.81
21.9124.15
43.35
36.89
4.164.16
43.35
16.00
8.81
19.74
8.81
4.160
10
20
30
40
50Urea
NPK/DAP
UNIT PLANT 2003-04 2004-05 2005-06 2006-07 2007-08
KANDLA TRAIN A 312 300 299 225 242
TRAIN B 305 317 317 303 249
TRAIN C 256 322 309 302 248
TRAIN D 293 296 329 299 239
TRAIN E 261 290 316 301 225
TRAIN F 256 285 321 293 235
AVERAGE 280@ 301 315 287@ 240
@ Low due to shortage of raw material
STREAM DAYS ACHIEVED
MARKETING TERRITORIES OF
MARKETING CHANNELS
Distribution of fertilisers mainly through the Cooperative System:
State level Apex Cooperative Marketing Federation acts as wholesaler
Direct supplies to Societies in some States
IFFCO-NCDC Cooperative Societies
Small quantities to institutional agencies like Agro Industries Corporation etc
158 IFFCO Farmers Service Centres
DISTRIBUTION & WAREHOUSING
TRANSPORTATION
Both by Rail (88%) and Road (12%)
WAREHOUSING
Federations & Cooperative Godowns
Central Warehousing Corporation (CWC) and
State Warehousing Corporation (SWC)
MARKETING TERRITORIES OF IFFCO
MARKETING CENTRAL OFFICE
MARKETING CENTRAL OFFICE
NORTH CENTRAL ZONE(LUCKNOW)
NORTH CENTRAL ZONE(LUCKNOW) NORTH ZONE
(CHANDIGARH)
NORTH ZONE(CHANDIGARH) SOUTH ZONE
(BANGALORE)
SOUTH ZONE (BANGALORE) WEST ZONE
(BHOPAL)
WEST ZONE(BHOPAL) EAST ZONE
(KOLKATA)
EAST ZONE(KOLKATA)
UP,BIHARJHARKHAND,UTTARANCHA
L
UP,BIHARJHARKHAND,UTTARANCHA
L
PUN, HAR,RAJ, J&K,
HP
PUN, HAR,RAJ, J&K,
HPAP, TN, KAR,
KERALA
AP, TN, KAR,KERALA
GUJ, MP,MAH,
CHHATTISGARH
GUJ, MP,MAH,
CHHATTISGARH
ASSAM, ORISSA,
W.B.
ASSAM, ORISSA,
W.B.
SALES PERFORMANCE
(Lakh MT)
SALES DURING KHARIF SEASON
(Lakh MT)
SALES DURING RABI SEASON
(Lakh MT)
FINANCIAL PERFORMANCE (Rs. Crore)
TURNOVER(Rs. Crore)
SERVICE TO FARMERS
Agricultural Extension and fertiliser use promotion programmes are an integral part of the marketing activity. Programmes are conducted at Area/State/Zonal offices under the guidance of agricultural scientists.
Programmes undertaken are :
Balanced Fertilisation programmesAdoption of villages for all round socio-economic developmentFarmers visit to various agricultural institutes and research farmsFarmers’ Meetings, Field Days and Crop SeminarsStatic/Mobile Soil Testing Laboratories with Audio-visual aids
COOPERATIVE RURAL DEVELOPMENT TRUST (CORDET)
PROMOTED BY IFFCO LOCATIONS
KALOL (GUJARAT) PHULPUR (U.P.) KANDLA (GUJARAT)
ACTIVITIES OF CORDET
Farmers’ Training Soil Testing Bio Fertiliser Production Demonstration FarmingSeed Multiplication
BSNL VPN
Airtel VPN
IFFCO’s MPLS VPN
Network & Security
SetupVSATVSAT VSAT VSATVSAT
PIX 506
PIX 506
KandlaLAN
KalolAonla
PhulpaurParadeepLAN
Chandigrah
Lucknow
BhopalBanglore Kolkata
VSAT Connectivity to Zonal Offices
Servers
Core Router In GLBP Mode
Servers
User Zone
3560 L3 Switch
Checkpoint Firewallon Alteon
Core L3 Switch
Internal Switch
PIX Firewallin HA Mode
External SwitchIPS In Inline Mode Gig0/1
Gig0/2Router
Airtel
MPLS CLOUD
600 Connections91 Direct on MPLS and 509 MPLS VPN Client
Spectra net- 1
Internet
Spectra net- 2
ASA Firewall
Call ManagerVMS, ACS, Checkpoint Security servers
SO & AOMktg offices
Remote offices Saket office
LAN
MAJOR AWARDS RECEIVED
Seven Awards for Best Overall Performance from FAI Two Awards for Industrial Safety from GOI
Award for Technical Innovation from FAI
Two Raj Bhasha Shields for promoting Hindi
Four Awards for Safety from National Safety Council, Chicago, one Award from Gujarat Safety Council and Certificate of “Lowest Disability Injury Index”
Indo German Greentech Environment Excellence Award
National Safety Award (Runner up)
Two National Energy Conservation Award and Letter of Appreciation from Govt. of Gujarat
Vishwakarma Rashtriya Puraskar to three employees from Govt. of India
VISION ---2010
BROAD VISION OF THE SOCIETY
To augment the incremental income of farmers by helping them to increase their crop productivity through balanced use of energy efficient fertilisers
To maintain the environmental health
To make cooperative societies economically and democratically strong for professionalised services to the farming community to ensure an empowered rural India.
The Society has embarked upon another growth plan titled “VISION 2010” to achieve annual turnover of Rs. 15,000 crore (USD 3750 Million) by the year 2010.
Society is exploring avenues for diversification into other profitable business areas, apart from fertiliser sector, for sustained growth and adequate return to member shareholders.
Vision 2010 would mainly focus on farmer oriented schemes and strengthening of cooperative infrastructure.
Broadly identified business activities under the “VISION 2010“ are :-
Installation of Ammonia/Urea plants including acquisition of fertiliser units
Generation of Power
Production and Marketing of micro-nutrients, seeds, bio-fertilisers, pesticides etc.
Value addition to agri-products and marketing
Banking and Financial Services
Information Technology and IT enabled services
Establishments of Retail Chain in urban and semi-urban locations
INVESTMENT FOR CAPACITY INCREASE
IFFCO has envisaged a major expansion/diversification plan to invest USD 1 Billion to ramp up the Domestic Fertiliser Production Capacity, Acquisition of Plants, Joint Ventures in foreign countries and Energy Reduction Measures in existing Units:
►Energy Saving Project (ESP) has been implemented in all Ammonia and Urea Plants at Kalol, Phulpur and Aonla units with total investment of Rs. 412 Crore (USD 103 Million).
►Capacity Enhancement Project (CEP) implemented at Phulpur and Aonla units in May’08.
►A State-of-the-Art phosphoric acid plant in Egypt (IEFC) alongwith EL Nasr Mining company (ENMC), Egypt with a project cost of USD 325 million having an installed capacity of 0.5 Million MTPA of P2O5. IFFCO’s equity in IEFC is 76% and ENMC’s equity is 24%.
►Another Phos. Acid Plant (JIFCO) with Jordan Phosphatic Mines Co. Ltd. (JPMC) with project cost of USD 580 Million having capacity of 1500 MT per day. IFFCO holding is 52%.
► Acquired NPK/DAP Plant of 2 Million MTPA at Paradeep alongwith Phosphoric Acid and Sulphuric Acid at a cost of USD 505 Million in October 2005.
US$ 1.5 Billion INVESTMENT IN POWER
PROJECT
1320 MW Power Project at Chhattisgarh.IFFCO Chhattisgarh Power Ltd. with Chhattisgarh State Electricity Board (CSEB) incorporated on 25.01.2006 .Salient features of the Project :
Total estimated project cost USD 1.5 billion
Equity participation by IFFCO (74%) and CSEB (26%)
Scheduled commissioning of first unit of 500/660 MV in 2011
Low tarrif electricity to farmers of Chhattisgarh
Active participation of Government in the land, coal, water and infrastructure fronts
US$ 0.6 Billion INVESTMENT IN SEZ
IFFCO has laid foundation stone for IFFCO KISAN SEZ at Nellore, India, on March 21, 2008. Special features are :
Estimated investment of USD 600 Million
Closed to Krishnapatnam Port
Farmer Friendly infrastructure planned
Provision for Food Processing Zone
Secondary and Tertiary Industries under consideration
IFFCO PLANTS
IFFCO SUBSIDIARIES
IFFCO TOKIO GENERAL INSURANCE COMPANY LTD.
INDO EGYPTIAN FERTILIZERS COMPANY, SAE
JORDAN INDIA FERTILIZER COMPANY LLC
IFFCO CHHATTISGARH POWER LTD.
KISAN INTERNATIONAL TRADING FZE
IFFCO TOKIO INSURANCE SERVICES LTD.
IFFCO KISAN BAZAR LTD.
IFFCO KISAN SANCHAR LTD.
IFFCO KISAN SEZ LTD.
INDIAN FARM FORESTRY DEVELOPMENT COOP. LTD
IFFCO ASSOCIATES
INDUSTRIES CHIMIQUES DU SENEGAL
OMAN INDIA FERTILIZER COMPANY S.A.O.C.
INDIAN POTASH LTD.
NATIONAL COMMODITY & DERIVATIVES EXCHANGE LTD.
NATIONAL COLLATERAL MANAGEMENT SERVICES LTD.
COOPERATIVE RURAL DEVELOPMENT TRUST
KISAN SEWA TRUST
IFFCO FOUNDATION
LEGEND INTERNATIONAL HOLDINGS INC.
CUMULATIVE ACHIEVEMENTS
FERTILISER PRODUCTION 104 Million MT
FERTILISER SALE 113 Million MT
TURNOVER USD 22841 Million
PROFIT BEFORE TAX USD 1600 Million
PROFIT AFTER TAX USD 1240 Million
CONTRIBUTION TO EXCHEQUER USD 1267 Million
CONCLUSION
IFFCO, to day, is a leading player in India's fertiliser industry and is making substantial contribution to the efforts of Indian Government to increase food grain production in the country.
At IFFCO, the thirst for ever improving the services to farmers and member co-operatives is insatiable, commitment to quality is insurmountable and harnessing of mother earths' bounty to drive hunger away from India in an ecologically sustainable manner is the prime mission. All that IFFCO cherishes in exchange is an everlasting smile on the face of Indian Farmer who form the moving spirit behind this mission.
SUGGESTION
Increase canteen facilities for the employee.
IFFCO has four production plants but these plants are not sufficient for production. So increase the numbers of plant.