Presentation on iffco

IFFCO

1. A Report on  Organization study of INDIAN FARMERS FERTILISER COOPERATIVE LTD. (AONLA-UNIT)  Present By- Satya Pal

2. PURPOSE OF STUDY To understand the working  environment of different departments. To study and analyze the policies and practices regarding production adopted by the A onla unit. To observe the effectiveness of company’s management system. To analysis the level of investment in production of fertilizer by IFFCO  

3. INTRODUCTION The following is an organizational structure study of Indian Farmers Fertilizer Cooperative Limited with special analysis of the IFFCO Aonla plant . Indian Farmers Fertilizer Cooperative Limited (IFFCO) , a Multi-unit Co-operative Society established on November 3, 1967. AONLA UNIT- Aonla project of IFFCO is one of the six natural gas based fertilizer plants set up in 1988, 28 km south west of Bareilly on Bareilly Aonla Road UP. This project has been designed to produce 7.26 lake tons of Urea per year. The project consists of main plants, Ammonia plant, urea plant, steam generator & power generator plant, other offsite facilities like water supply and treatment system storage for spares consumables & products, bagging plant laboratory, Inert gas plant, instrument air compressor etc.

4. INDUSTRY PROFILE OF FERTILIZERS GLOBAL INDUSTRY- The International Fertilizer Industry Association or IFA    is a trade association that represents the global fertilizer industry.  IFA has some  540 members in about 85 countries . IFA member companies represent all activities related to the production, trade, transport and distribution of every type of fertilizer, their raw materials and intermediates. The global  fertilizer industry produces some 170 million tonnes of  fertilizer annually. INDIAN INDUSTRY- Fertilizer is a crucial input contributing to about 40 per cent of the productivity of the crop. India is one among the most dynamic generic pesticides manufacturing countries with a total market size of Rs 89 billion per annum. The fertilizer industry in India consists of three major players;  The Government owned Public Sector under takings, Cooperative Societies like IFFCO, KRIBHCO from Private sector. There are about 33 major producers producing N and NP/NPK fertilizers in the country at present.

5. COMPANY PROFILE OF IFFCO   Indian Farmers Fertilizer Co-operative Limited   Type Cooperative   Founded November 3, 1967   Headquarters New Delhi, India   Area served India   Key people Natwarlal Pitambardas Patel, Chairman Dr. Udai Shanker Awasthi , CEO     Products Fertilizers     Revenue 211.9 billion (US$ 3.84 billion)(2010-11)   Net income 7.914 billion (US$ 143.24 million)(2010-11)  

6. VISION & MISSION OF THE IFFCO VISION – 2015 In pursuit of its growth and development, IFFCO had embarked upon and successfully implemented its Corporate Plans, ‘Mission 2005’ and ‘Vision 2010’. IFFCO has now visualized a comprehensive plan titled ‘Vision-2015’ which will be guided by the following objectives:- Production of fertilizers through expansion of existing units. Setting up of fertilizer production facilities in India and outside the country through joint ventures. Diversification into other Profitable Sectors. Strengthening its raw material sourcing through Strategic Joint Ventures in India and abroad. Achieve Fertilizers Production / Marketing target of 15 million Tonne per annum with an annual turnover of Rs. 30,000 crores .  

7. MISSION- a. To provide to farmers high quality fertilizers in right time and in adequate qualities with an objective to increase crop productivity. To make plants energy efficient and continually review various schemes to conserve energy. Commitment to health, safety, environment and forestry development to enrich the quality of community life. Commitment to social responsibility for a strong social fabric. A true commitment to transparency, accountability and integrity in principle and practice. Building a value driven organization with an improved and responsive customer focus. To acquire, assimilate and adopt reliable, efficient and cost effective technologies.

8. FUNCTIONAL DEPARTMENTS FINANCE AND ACCOUNT DEPARTMENT:- The department co-operative with all division and complies the organization financial result such a profit and loss   account and balance sheet, budgeting etc.   PERSONAL & ADMINISTRATION DEPARTMENT:- It   is responsible for formulation   policies   procedures   in   personal   and administration   as   whole   under   this   all   personal   function,   welfare, time-office, security and hospital related functioning are dealt. MAINTENACE DEPARTMENT:- Under this department the maintenance of   all of mechanical, electrical maintenance, telephone and mechanical services are included. PRODUCTION DEPARTMENT:- Here under the   production   and all other related of production of Ammonia and   Urea are considered.

9. MATARIAL   DEPARTMENT :- All   materials,   purchasing   included under this department and are managed   according to the need of the hour. TRANSPORT DEPARTMENT:- It looks after the facility to employee and their families for organization on construct for the organization MARKETING & DISTRIBUTION :- IFFCO urea is moved from factory to field warehouse by both road and rail. Movement through rail is resorted to on a need basis to distant locations at the shortest time. Consumption of urea is seasonal thereby rendering transportation, storage and distribution is very important. distribution channel process:- IFFOCO PRODUCTION AREA OFFICE SUB AREA OFFICE Farmers Societies WAREHOUSE  

10. PRODUCT PROFILE OF IFFCO NPK- The two grades of NPK produced by IFFCO, 10:26:26 and 12:32:16, indicating the content of N, P, K proportion, is tailor made to supply the exact composition required for replenishment of the soil. DAP(Di-ammonium Phosphate)- It is the most popular phosphate fertilizer because of its high analysis and good physical properties. The composition of pure salt of DAP is N-21.19% and P210 -53.76%.Fertilizer grade DAP is 18:46:0. Urea - Urea is the most important nitrogenous fertilizer in the country because of its high N content (46%N). Besides its use in the crops, it is used as a cattle feed supplement to replace a part of protein requirements.

11. SWOT ANALYSIS . STRENGTH :- Fertilizer is the basic raw material for agriculture production. Government can not dare to make policies which are not conducive to the farmers. Demand of fertilizer is more in the country than the production capacity therefore whatever is produced will be sold. Government ensures the availability of raw material (NG/NAPHTHA) at reasonable price as it has at subsidy of fertilizer is subsidizing product. IFFCO is a co-operative organization and selling its product through co-operative channel. All plants are of latest technology of art and are in healthy condition. WEAKNESS:- As per by law of the company it can fallows the co-operative channel only for sale of its product. In case demand fall short in the channel company end up with higher stock inventory. Price of the product cannot be raised and government pay the subsidies as per its calculation of fertilizers cost.

12. OPPORTUNITY:- IFFCO can cut on cost by reducing energy consumption for per MT of UREA, thereby enhancing its profitability. IFFCO can also reduce its fixed cost per MT of UREA by enhancing its production capacity & thereby increase in production and profitability. IFFCO has also entered into a long term of take and supply agreement with international holdings of AUSTRALIA for supplying phosphate to insure raw material supply NPK/DAP fertilizers plants. THREATS:- NG supply in the country is not sufficient to meet present country requirement. However NG in liquid form is imported from various gulf countries and rigidified at petro net in Gujrat to meet demand of fertilizers units. If supplies of NG suffer due to an region. It will be reflected in production of IFFCO. Supply of Rock phosphate is also a threat to the production NPK/DAP. It rate are not stable in the international market.

13. FINDINGS   Majority of the farmers are using IFFCO product and rest are using other   including Tata, Narmada & others. 60% of the farmers are waiting for a particular brand of fertilizers. Most of the   farmers are   selecting the fertilizers   on   brand basis   and second major criteria to select the   fertilizers are availability. 90% of   the farmers desired for   the plastic bag   and only   10%for the   jute bag. 70% of farmer ’ s desire 50kg pack & rest   30% prefer 25kg pack. In a village about 60% farmers meetings,15% Field Day,10% Socioeconomic &15% Other Promotional Programmed were organized by IFFCO. I found that farmers are satisfied with   the IFFCO fertilizers even in un adopted villages. There are a number of reasons to prefer the plastic bag: Moisture control. Reusable and strong.

14. CONCLUSION INDIAN FARMERS FERTILIZER COOPERATIVE LIMTED is the one of the biggest and the most popular company in India. IFFCO manufactured fertilizer products like UREA, NPK, DAP etc. IFFCO provide both quantities & qualities products at good price for farmers.

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