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PROFILE OF NAGARJUNA FERTILIZERS AND CHEMICAL LTD
KAKINADA
4.1 The Founder
Shri K V K Raju - An eternal source of inspiration
Nagarjuna Group is a dream willed into reality by its visionary Founder
Shri KVK Raju. Shri KVK Raju a first generation technopreneur was born in a
humble agricultural family in Andhra Pradesh on November 28, 1928. On
graduating from Banaras Hindu University and the Madras Institute of Technology
he went on to complete his Master's in Mechanical and Industrial Engineering
from Michigan State University and the University of Minnesota, USA. After a
short stint in the American Industry he returned to India and worked for short
periods at Caltex Oil Refinery, Orient General Industries and Associated Electrical
Industries. Finally, he joined Union Carbide of India and worked with them for 15
years. While working with Union Carbide, KVK's deep-rooted urge to serve
society through industry impelled him to start out on his own. Thus was born
Nagarjuna Group in 1973 with an investment of Rs. 50 million. The Group has
since then came a long way to become a diversified conglomerate with an asset
base of Rs. 43 billion.
A recipient of various awards for his outstanding contribution to the
industry and society, KVK, was a firm believer in the adage "practice what you
preach". A self-made man KVK practiced simple living and high thinking. He
dreamt big and worked with an unstinted focus of mind and body to make his
dreams come true. KVK was a visionary with firm belief in his mission to serve
society through industry. It is this belief, which continues today to be the guiding
light of Nagarjuna Group.
4.2 VISION AND VALUES:
NFCLVISION:Global “Leadership” in Plant Nutrition
Excellence in products/performance, processes/costs and relationships
NFCL VALUES
Deliver solutions that will please NFCL customers
Deliver returns that motivate NFCL investors
Take actions that strengthen NFCL and inspire the best in others
(by setting an example in relationships, integrity, honesty, humility and hard
work)
by understanding the deep and fundamental needs of NFCL People, NFCL
Customers, NFCL Investors and NFCL Ecosystem (Alliances, Community and
Environment)
Feeding the Future
Nagarjuna is an integrated Agriculture group with core competencies in the
fields of plant nutrition, protection, irrigation, farm services and food processing.
NFCL products and services are designed to provide consumers access to safe,
nutritious and tasty food and growers with maximum economic returns. NFCL is
one of the most recognized agricultural brands in India.
4.3 Evolution
1985: Plant Nutrition business with nitrogenous fertilizers. Subsequently,
started marketing and manufacturing a comprehensive range of nutrient products
and today it is one of the largest plant nutrition companies in India.
1992: Ventured into Plant Protection business and today has a well-
balanced product portfolio for counteracting all the major pests and diseases in
various crops and is in the top 3 plant protection companies in India. Rated as
eighth fastest growing company in the overall growth category in India.
1993: Forayed into Micro Irrigation business through Joint Venture with
reputed Global Micro Irrigation Companies. Today it accounts for 25% of
products sold in drip irrigation.
1994: Started offering Agricultural Input services by providing complete
farm advisories through its Farm Management Services.
1995: Started Agricultural Output business with processing, trading and
exporting of agro products.
1995: Ventured in to Energy sector, Entered in to power generation by
setting up Nagarjuna Power Corporation Limited.
1997: Entered in to petroleum by setting up Nagarjuna Oil Corporation
Limited Consolidating its core activities, today the group's major operations cover
Agro and Energy sectors.
2000: Started providing IT based services, using information technology to
develop knowledge and solutions critical for improvement of farm profitability.
2007: Project work to enhance the capacity of Kakinada Plants was started.
The Carbondi-oxide Recovery (CDR) Plant was ordered in July, 2007 and Mini
Revamp order for detailed engineering was given to PDIL in October, 2007.
Plant Nutrition
Nagarjuna is one of the leading manufacturers and suppliers of plant
nutrients in India. The potential benefits from improved plant nutrition are
virtually limitless. With the right plant nutrition it is not surprising that the grower
can produce higher yields, better flavored and greater nutritional content crops of
vigor that are less prone to pests and disease attack – goals which form the core of
NFCL plant nutrition strategy. It is widely recognized by agronomists that plant
nutrition is responsible for approximately one-third of the increase in world grain
production. The balance is provided by such factors as better irrigation, improved
seeds, cultivation practices, pest control and planting density.
NFCL supply a broad portfolio of nutrition products and services that
include both macro and micro fertilizers. NFCL employ information technology
and soil and tissue analysis for nutrient recommendation and NFCL plans include
further strengthening of NFCL analysis portfolio with advanced tools to measure
the actual nutrient requirements and status and deliver customized nutrition
solutions to meet the exact needs of the customer
Plant Nutrition / Products & Services
NFCL strive for total customer satisfaction through reliability, timeliness,
courtesy, honesty and value for money. NFCL Endeavour to provide the highest
quality products at the lowest cost possible to deliver a good rate of return.
4.4 Specifications and applications of products
Urea (46% N) (White free flowing) – Prilled
Specifications as per the Fertilizer Control Order 1985
I. Moisture per cent by weight, maximum 1.0
II. Total nitrogen, per cent by weight, (on dry basis) minimum 46.00
III. Burette per cent by weight, maximum 1.5
IV. Particle size--90 per cent of the material shall pass through 2.8 mm IS sieve
and not less than 80 per cent by weight shall be retained on 1 mm IS sieve
Application
• Fertilizer
• Anhydrous Ammonia
Specifications as per the Fertilizer Control Order 1985
i. Ammonia per cent by weight, minimum 99.0
ii. Water per cent by weight, maximum 1.0
iii. Oil content by weight, maximum 20 ppm
Application
• Used for production of Urea, DAP, Ammonium Sulphate and Ammonium
Nitrate (for fertilizer, explosives, herbicides and insecticides)
• Used for water treatment, fermentation, tanning and food additives
Diammonium Phosphate (18-46-0) – DAP
Specifications as per the Fertilizer Control Order 1985
i. Moisture per cent by weight, maximum 1.5
ii. Total nitrogen per cent by weight, minimum 18.0
iii. Ammoniac nitrogen form per cent by weight, minimum 15.5
iv. Total nitrogen in the form of urea percent by weight, maximum 2.5
v. Neutral ammonium citrate soluble phosphates (as P 205) per cent by
weight, minimum 46.0
vi. Water soluble phosphates (as P 206) percent by weight, minimum 41.0
vii. Particle size -90 per cent of the material shall pass through 4 mm IS sieve
and be retained on 1 mm IS sieve. Not more than 5 per cent shall be below
than 1 mm size.
Muriate of Potash – MOP (Potassium Chloride)
Specifications as per the Fertilizer Control Order 1985
i. Moisture per cent by weight, maximum 0.5
ii. Water soluble potash content (as K20) per cent by weight, minimum 60.0
iii. Sodium as NaCl per cent by weight (on dry basis) maximum 3.5
iv. Particle size-95 cent of the material shall pass through 1.7 mm IS sieve and
be retained on 0.25 mm IS sieve and be retained on 0.25mm IS sie
Alliances
Nagarjuna has been partnering with some of the well distinguished names
in the global arena.
HaldorTopsoe, Denmark,
Snamprogetti, Italy
A J Sackett& Sons Co., USA
Yara, Norway,
Haifa, Israel
4.5 Plant Protection
The world’s population is increasing, and with it the need for qualitatively
better food. Plant Protection has thus become indispensable as it secures the
valuable yield by giving the appropriate protection from the time of planting the
seed until the Crop harvesting stage. During its life cycle, a crop will encounter
many pests and diseases that can even destroy an entire harvest Insects, Mites,
Weeds, Fungi, Virus and Bacteria.
Nagarjuna is one of the leading suppliers of plant protection products in
India. NFCL goal is to secure harvests for farmers and protect the environment
with the well being of all. NFCL offer a complete spectrum of plant protection
products that are Selective, Effective at low concentrations, Environmental
friendly, Crop specific and Affordable. Nagarjuna has a good range of required
Insecticides, Fungicides, Herbicides and Miticides, which is one of the key
offerings as in the case with Nutrition, with Pest Management Services also
playing a crucial role.
Nagarjuna Group made its initial foray into the Crop Protection Business in
1992 with investments in the Pesticide Formulations Manufacturing followed by
the Technical Grade Manufacturing in the year 1994. The Group has since made
steady progress in this area and over a span of just fifteen years has expanded its
activity base, acquiring a strong brand image and leadership position in this sector.
Incidentally, Nagarjuna group figures among the top ten Agrochemical Companies
in the Agrochemical Industry in India with respect to Domestic Market share, even
out beating some of the leading MNC’s operating in India.
NagarjunaAgrichem Limited is a public limited company focused mainly
on Nagarjuna’s Crop Protection Business. It has a World Class major Technical
Grade Agrochemical / Fine Chemical manufacturing facility at Srikakulam in
addition to a large Formulation Grade Agrochemical manufacturing facility at
Ethakota and a smaller single granular product facility at Shadnagar. It has been
Nagarjuna’s philosophy to work closely with some of the leading MNC’s who are
market leaders in order to get access to new patented products apart from helping
them in key areas like Product registration, Custom Synthesis, Access to Domestic
Markets using Nagarjuna’s widespread Customer network across India etc.
The R & D in Nagarjuna plays an important role in developing the process
for Generic Products at an affordable cost in addition to providing Custom
Synthesis for processes related to new products to be launched by the MNC’s or
for improving their existing products. Many of the products delivered by the R &
D over the past 7 years have helped Nagarjuna in launching those products
required by the farmers in the Indian Domestic Market at the right time, in
addition to addressing the growing diverse needs of Quality conscious Customers
in the highly developed countries like USA, Europe and Japan. In addition to
catering to a major part of the Indian sub-continent, NFCL also export some
branded pesticide formulations to some countries in the Middle East and Africa.
4.6 Agricultural Output
NFCL have wide experience in farm output procurement, primary
processing, storage, secondary processing, packaging, branding and marketing,
and also trading and exporting. NFCL experience covers sugar, fruits and
vegetables, cereals, spices and sea foods.
Services
Nagarjuna offers to its customers its vast expertise in areas like plant
management, project management, technical services, supply chain management
and sales & marketing.
Services/Plant Management
A Better Way to Manage Plants & ProjectsNagarjuna offers its expertise on
a long-term basis for the management of chemical process plants, especially to
ammonia and urea complexes worldwide.
The team has rich experience of working in various chemical, fertilizers,
petrochemical industries and power plants for considerable period and has
operated the plants successfully on higher capacity utilization and efficiency
levels. This group has also commissioned new plants in-house as well as for
external clients within the time schedule set by the client. The group continuously
updates the knowledge and skills by participating in various training programs,
workshops, symposia held both in India and abroad.
Services Spectrum
NFCL team of experts provides world-class Operations & Maintenance
Services to operating plants and new projects.
Pre-commissioning, Commissioning and Operation of Plant
Maintenance : Preventive, Breakdown and Turnaround
Inspection and Condition Monitoring
Environmental Services and Systems
Safety Services and Systems
Laboratory and Quality Assurance
Plant Technical Services – technical and energy audit
Plant problem diagnostics and troubleshooting
Training
Benefits of outsourcing to Nagarjuna:
A huge cost towards permanent staff especially in initial years of plant
operation can be saved.
High class technical services are available from day one saving plant
upsets, breakdowns and under-performance of the plant in the crucial initial
years for quicker payback of project cost.
Nagarjuna as the interface with Process Licensor companies for ensuring
completeness of technical information from them.
Services are renewable after expiry of contract on mutually acceptable
terms.
Highly accomplished team of NFCL professionals will achieve top class
performance adding value to standard operations.
Longer plant life as result of continuous and predictive plant monitoring by
dedicated team of NFCL professionals.
Clients’ personnel may be trained by NFCL on all aspects of plant
operation and maintenance, whenever, required.
All plant management services are available to client on a ‘single window’
concept.
Services/Project Management
Nagarjuna has to its credit, more than 35 major assignments and
successfully completed projects creating an array of satisfied clients. It has earned
the reputation of being a veritable treasure of technical knowledge, skill and
professional competence. In the course of setting up projects, it has worked with a
number of world renowned process licensors and engineering/contracting
companies and is well versed with the engineering codes and practices followed
internationally.
Nagarjuna provides a complete range of services needed to conceptualize,
design, engineer and construct projects to meet the specific requirements of its
clients. Its project management services comprise directions and co-ordination of
the activities leading to the execution of a job in accordance with terms of the
contract, in compliance with the job schedule and to the satisfaction of the client.
The efforts of various agencies such as licensors, vendors, contractors/sub
contractors and the company’s different departments are brought together in a
logical pattern to result in fruitful culmination of the project. It also has well
proven capabilities in setting-up large scale Ammonia, Urea and Power plants
from concept to commissioning. The operating plants at Kakinada are a standing
example of the same.
Its association with clients extends beyond the commissioning of their
plants through monitoring and providing excellent operation and maintenance
services.
Feasibility Services
Nagarjuna’s experience in a variety of fields is available for expansion or
diversification of their activities. Services offered range from carrying out
preliminary feasibility studies to detailed feasibility reports and include
technology evaluations, detailed economic analysis etc. In-house software as well
as bought out software packages are used for the studies depending upon specific
requirements.
Services/Technical Services
In accordance with global need to conserve energy, Nagarjuna has
developed comprehensive and systematic energy audit techniques for new as well
as operating plants. It has the expertise and capability to critically examine energy
usage and requirements for different segments of each plant. It undertakes energy
audit studies and provides a comprehensive and graded list of energy saving
investments.
As plants handling hazardous materials are growing in size and complexity,
Risk Management is assuming critical dimensions. Nagarjuna has the expertise to
provide complete services in the area of Risk Management & Safety Engineering.
It also has the capability to help the client in site selection, plant and equipment
layout, optimum offsite storage capacity etc. taking total risk involved into
consideration to ensure safety of the operating personnel and the community from
fire, explosion or toxicity.
The team is composed of highly accomplished mechanical, metallurgical
engineers and skilled technicians to provide scheduled inspections and condition
monitoring online for various rotating and static equipment. It also takes up
comprehensive inspection of majority of equipment and pipelines during
turnaround. People in this section have experience ranging from 8 to 14 years and
trained in different NDT methods up to ASNT/ISNT Level-II, who are capable of
taking-up high quality inspection, health monitoring and also analysis jobs on the
field and in laboratory.
4.7 Supply Chain Management
Nagarjuna views Supply chain optimization as a core focus area. For
continuous improvements and streamlining of operations, supply chain is viewed
in totality and hence headed by a senior level executive with long and
distinguished experience in management of different functions of the supply chain.
The supply chain is characterized by best practices and systems which are
continuously reviewed for improvisation opportunities. The processes are
standardized and are ISO 9000 certified.
The main functions are:
Commercial: The function is characterized by standardized processes right from
material requisition to vendor evaluation and selection.
Transportation & Warehousing: The operations are spread all across India and
reach deeper into the far flung villages across the country. NFCL handle material
across rails, roads and waterways to strategically chosen warehouses handling
seasonal material across markets. NFCL storage, transportation and handling
practices ensure best quality product reaches customer with minimal waste and
losses.
NFCL have specialized software that aid in optimizing its logistics
operations across the critical performance criteria of costs, speed, quality,
reliability and flexibility of operations to meet the customer requirements
profitably.
4.8 Sales & Marketing
Channel Management: Unlike many industries NFCL’s strength is its ability to
serve the large base of customers through a wide spread dealer network. NFCL
sales operations are managed by the latest SAP system installed in all the
marketing offices while NFCL sales personnel maintain direct and continuous
contact with the vast dealer network to serve them efficiently.
Customer Management:Nagarjuna has always been in the forefront in offering
value added services directly to NFCL customer right at his doorstep. NFCL farm
advisory and information service provides farmers with best agronomic, plant
nutrition and protection advisories by farm visits as well as by online services
through internet kiosks. NFCL scientists train farmers visiting them in the fields as
well as by conducting specialized training programs at its research and farm
centers.
Processes
NFCL constantly benchmark its processes with the best in the world across
the supply chain and support services. NFCL extensively make use of IT and
outsourcing to give them the edge.
Emerging Business Practice
The Emerging Business Practice (EBP) of the group is committed to
creating, developing and implementing breakthrough product concepts and
business models for the current and emerging business clients of the group. While
the opportunities vary, they are all based on providing access to cutting edge
thinking and technology.
EBP provides professional talent (internally from across the group and
externally) and technical resources specifically tailored to meet the service needs
of NFCL current and emerging business clients within the group. NFCL offer
services and support ranging from strategy development, science and technology,
staffing, alliance development, outsourcing, design, project execution, business
development and management support.
Health & Safety:
NFCL commitment to Environment, Health and Safety systems is an
integral part of its business strategy and takes precedence over all other
considerations. NFCL maintain the highest standards, most robust and safe
technologies, equipment and products as well as qualified, experienced and trained
manpower, which are essential to its future growth.
NFCL EHS mission also encompasses responsibilities of protecting the
local community and environment from potential hazards.
Community
An organization must continually earn the right to operate in the communities and
countries in which it produces and sells. NFCL are committed to giving back more
to the society than what NFCL take from it in terms of its resources.
The organization is not a stand-alone economic entity but an integral part of the
society. NFCL believe that the organization fulfills its obligations by sharing its
resources for community building activities, which are ultimately reinvested in the
business through the various stakeholders who form a part of the community: the
customers, employees and investors.
4.9 Manufacturing Facility
Urea manufacturing facility - Kakinada
One of the largest Urea complexes in India, the plant is spread over 1130
acres. It is strategically located at Kakinada, a seaport on the east coast of India in
the state of Andhra Pradesh. The company enjoys close proximity to raw materials
and a ready market at its doorstep.
The Natural gas based plants operate with one of the lowest energy
consumption rates in the world.
Charting out an ambitious future, the plant has expanded its operating
capacity from the current 1.4 Million Tons to about 1.5 Million Tons per annum
after completing the de-bottlenecking and the revamp of the project. The
expansion has been planned keeping in mind the availability of additional Natural
gas from huge Natural gas reserves in the nearby Krishna- Godavari basin.
NFCL strive to adopt the global best practices in all areas of operations.
The world class operations have resulted in long uninterrupted runs of plants for
over 365 days with maximum availability of plant on-stream days. Minimum
possible human interference and best maintenance practices keep equipment and
facilities fit for intended use under safe working conditions. Process simulation
software like ASPEN PLUS and drafting software like AUTOCADD are being
used for plant simulations / modifications and in turn to minimize energy
consumption, maximize production and maximize asset utilization.
The plant also has an exhaustive documentation section and technical
library with over 1300 Technical books and journals. The library also houses more
than 1250 national and international standards.
Maintenance
Best maintenance practices like predictive / proactive maintenance and
reliability centered maintenance are adopted in the plant to have zero equipment
breakdowns and zero accidents due to equipment failure.
Quality Control
Strict adherence to quality in every aspect of production. Laying stress on
technology, the plant maintains strict quality control of products with online
product sampling and product quality monitoring. This has resulted in minimal
fines and burette in the product.
4.10 Certifications & Recognitions:
• NFCL bagged two awards from the Fertilizer Association of India
(FAI), New Delhi. It won the prestigious FAI Environmental
Protection Award in the nitrogenous fertilizer plants category and
stood as joint winner for excellence in Safety Award.
2009
• NFCL has bagged Green Leaf 2nd runner-up award in the Global
Competition for Excellence and Innovation in Safety, Health and
Environment held by International Fertilizer Industry Association
(FAI).
2009
• Certificate of Appreciation for implementing the process safety
management system (PSMS) by national safety council, A.P.
Chapter, Hyderabad.
2008
• NFCL bagged two awards from the Fertilizer Association of India
(FAI), New Delhi. It won the prestigious FAI Environmental
Protection Award in the nitrogenous fertilizer plants category and
award for the best article in ‘Production and Technology
2008
• NFCL has been awarded with Rashtriya Chemicals and Fertilizers
Award by the FAI for the best article in Production and
Technology.
2007
• NFCL has won the Best Technical Innovation Award from
Fertilizer Association of India for performance excellence in the
field of production technology.
2006
• Golden Peacock National Quality Award for 1995 by Institute of
Directors, New Delhi
1996
• ISO 9002 Certification from BVQI, Netherlands 1995
FIGURE 4.1: ORGANIZATION STRUCTURE
CMD
Director
& COO
Director‐Technical
Director‐ BD & SP
CEO
All Finance Dept.
HPD
IT
OperationsPlant KKD
MI Plant Marketing
Logistics
R&D
Projects
Public Relations
Internal Audit
Legal & Secretarial
FIGURE 4.2: DISTRIBUTION CHART
Head Distribution
Logistics officer
Planning Warehousing Traffic Imports