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Introduction IFFCO was registered on November 3, 1967 as a Multi-state Co-operative Society The Society is primarily engaged in production and distribution of fertilisers The distribution of IFFCO's fertiliser is undertaken through over 39824 Co- operative Societies

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Page 1: Group 7 cm1

Introduction

IFFCO was registered on November 3,

1967 as a Multi-state Co-operative

Society

The Society is primarily engaged in

production and distribution of fertilisers

The distribution of IFFCO's fertiliser is

undertaken through over 39824 Co-

operative Societies

Page 2: Group 7 cm1

Mission

IFFCO's mission is "to enable Indian

farmers to prosper through timely

supply of reliable, high quality

agricultural inputs and services in an

environmentally sustainable manner

and to undertake other activities to

improve their welfare”

Page 3: Group 7 cm1

VisionTo augment the incremental incomes of

farmers by helping them to increase their crop productivity through balanced use of energy efficient fertilizers, maintain the environmental health and to make cooperative societies economically & democratically strong for professionalized services to the farming community to ensure an empowered rural India.

Page 4: Group 7 cm1

Objectives To serve the cause of IFFCO’s mission as stated in the mission

document Extend IT enabled services to farmers and cooperatives to

promote IT penetration and improve IT comfort levels in rural India. 

To evolve appropriate dissemination strategies for effective use of IT Enabled Services in Rural India.

To extend e-services to cooperative members of IFFCO and in a phased manner.

Provide latest and reliable information and extend other services to all those actively involved in the development of Indian agriculture and rural development.

Provide necessary information / services for suppliers to IFFCO and achieve e-procurement in a phased manner.

Page 5: Group 7 cm1

Governance No individual membership , Membership is

open to the following:-

National, State, district, regional and primary level Cooperative Federation of agricultural credit / marketing / processing / supply etc.

National Cooperative Development Corporation

Public Financing institutions to the extent required/ requested by the board/ general body of IFFCO

Page 6: Group 7 cm1

Fees & Termination

Fee:- For village level society:- Rs 25/- for others:- Rs 100/-

Termination:- No member is permitted to withdraw any of the

shares held by it in IFFCO or to resign its membership of IFFCO within five years from the date of which it was admitted as a member.

Letter of resignation to be addressed to MD of IFFCO.

Decision of board communicated within a period of four months.

Page 7: Group 7 cm1

Hierarchy & Flow of Information

MD

Marketing Director

Zonal Manager (5)

State Marketing Manager

Area Manager (3 for Odisha)

Field Officer (1 for Each District)

REPORTING

Page 8: Group 7 cm1

GENERAL BODY (Structure)

General Body of IFFCO comprises of:-

Members of Board of Directors. One direct delegate who has contributed more than 10

lakhs to the share capital of IFFCO. The number of such direct delegates(including

delegates) should not exceed 800. Delegates not exceeding 200 are to be elected amongst

the representatives of member societies having shares of less than 1 lakh in each state /UT.

This is done at the rate of one delegate for every 200 member societies.

Page 9: Group 7 cm1

FUNCTIONS AND POWER

General Body Election and removal of the members of the board of directors. Amendment or repeal of any existing bye-laws or enactment

of any new bye-laws. Consideration and adoption of annual report and statement of

accounts of previous year and review of activities of current year.

Consideration of audit report and appointment of auditors . Approval of annual budget. Review of actual utilization of reserve and other funds. Review of official deficit (if any).

Page 10: Group 7 cm1

FUNCTIONS AND POWERManaging Committee:- Admission of members. Authorize convening of meetings of the General Body. Recommend annual and supplementary budgets for approval

by general body. Appoint, suspend and remove the Managing Director and

Functional Directors and approve their terms and conditions of service.

Raise funds for the business of IFFCO. Authorize persons to sign bills, notes and receipts on behalf

of IFFCO. Appoint trustees, attorneys and agents for the business of

IFFCO.

Page 11: Group 7 cm1

FUNCTIONS AND POWERChief Executive- The Managing Director is the Chief

Executive of IFFCO and assists the BOD in its functions. Its power and functions are as follows:

Have general control over administration of IFFCO. Convene meetings of the BOD/EC/Sub-Committees. To be responsible for general conduct, management and

supervision of day-to-day business of IFFCO. Endorse and transfer promissory notes and securities on

behalf of IFFCO. Determine powers, duties and responsibilities of

employees of IFFCO.

Page 12: Group 7 cm1

FUNCTIONS AND POWERExecutive Committee:EC is responsible for efficient

management of societies. Its powers and functions are as follows:-

To examine and recommend to the board, the estimates of the budget.

To approve all investments proposals of capital nature up to limit of 1.5 crore.

To authorize execution of documents for and on behalf of society.

To grant loans to members where amount and repayment terms are not covered under the service rules of the society.

Refer claims and demands by and against IFFCO for arbitration.

Page 13: Group 7 cm1

FUNCTIONS AND POWER Marketing Sub Committee: This committee is responsible

for efficient management of marketing operations of the society. Its power and functions are as follows:

To formulate and recommend to the board for approval of overall marketing policy for sale of fertilizers and agricultural inputs.

To lay down distribution strategy including the channel and outlets.

To recommend to BOD for approval of matters relating to pricing policy of fertilizers and allied products.

To lay down guidelines for distribution margins.

Page 14: Group 7 cm1

Economic activitiesCore FunctionBusiness PlanStructure of finance Information and Communication

TechnologyReporting and Hierarchy of IFFCO

Page 15: Group 7 cm1

Core Function

Balanced Fertilizer ProgrammeSoil Testing Labs (Mobile/Static)Socio-Economic Development of VillageHuman Health Check ups & medicine

distributionVeterinary servicesDrinking water supply & Watershed MgmtAssistance to School/School children

Page 16: Group 7 cm1

Business Plan

5 marketing territoriesDistribution mainly through coop. SystemWholesaler- State level Apex Coop Market

FederationSupplies to some Agro-industries also158 IFFCO farmers Service ChannelTransportation by rail (88%)Warehousing at godowns of CWC,SWC and

Federation godowns

Page 17: Group 7 cm1

Business Plan

Marketing Central Office

North Central zone (LKW)

U.P, BR, JHKHND, UTKHND

North Zone (CHNDGH)

South Zone (Bangalore)

West Zone (BPL)

East Zone (Kolkata)

Assam, Odisha, W.B

PNB, HAR, RAJ, H.P. J&K

AP,TN, KAR, KeralaGUJ, M.P, MAH,

CHTSGRH

Page 18: Group 7 cm1

Structure of finance Sources of fund: admission fee, share capital , loans and

deposits within India and abroad , debentures , bonds and commercial paper , grants-in-aid and donations

No. of Share

Face value

Allocated to

90,000 1 lakh NCDC, public financing inst. , national/state/regional federation

50,000 10,000 Dist. & primary marketing/processing/supply cooperative society

5 lakh 1000 Primary societies at village level

Page 19: Group 7 cm1

Value of share is paid in one lump sum or installments as per bylaws

Every member subscribes to at least one share

Basic minimum level of utilization has to achieved to have the rights

IFFCO can receive loan from members and others up to 10 times of its paid up share capital plus accumulated reserves minus losses

Page 20: Group 7 cm1

Distribution of profitsReserve Funds -25%Cooperative Education fund -3 - 5%Rest is distributed as • dividend (<=20%) to share holders• rebate on purchase by members and• Building, education, Charity etc

10% is for unforeseen lossPayment of Ex-gratia to employees a/c to

schemes of the board

Page 21: Group 7 cm1

Audit

Both internal and external audit Board of directors constitute an audit

committee To oversee the society’s financial reporting

process , financial statement etc Review the findings of internal auditors

and follow up on any irregularities

Page 22: Group 7 cm1

Information and Comm. Tech.

Wide Area Network up to all Area Level Offices with Corporate Office at Delhi.

All offices of IFFCO are connected with VPN Video Conferencing Facility at maximum Offices. Implemented Successfully the e-procurement system. Application of Integrated Corporate Enterprise in HR,

Finance, Marketing, Transportation & production Multilingual Agri. Information portal and Touch screen

based Kiosks.

Page 23: Group 7 cm1

E-Procurement

Page 24: Group 7 cm1

Environment

Govt. regulation on the amount of fertilizer to be manufactured

High demand but low supply PPL is the biggest competitor Paradeep plant was previously under

Oswal chemicals pvt. Ltd. and was purchased by IIFCO

30,000 MT DAP is being exported to Nepal.