Project of iffco

1. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
(KALOL UNIT)
\
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2. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
We are student of B.B.A Programme. It is necessary to take visit
of industry is a very crucial role for B.B.A students.
The main objective of the Industrial visit is to develop the
student’s ability. It is the opportunity for the students to show their
skills and efficiency. Students will able to develop their internal strength
by the Industrial visit.
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3. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
I feel really very happy to prepare a project on IFFCO KALOL.
We did during the F.Y.B.B.A academic Seasion. The main object of the
study is to Industrial environment and its different department for
study.
I am very much thankful to Our collage Principal l and other
faculties for arranging our Industrial visit.my project report is
completed with the help of Mr vipul patel , Maulik prajapati , and my
brother Bhavesh . I am also very much thankful to various Department ,
Managers, who give us many information about the company and spend
their valuable time to give information and for answering the question of
students. I am also very thankful to our faculties for Preparing this
Project that we listed below.
Your Faithfully
Bharat.c.Prajapati
INDEX
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4. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
SR.
NO.
PARTICULARS PAGE
NO.
A GENERAL INFORMATION
BRIEF HISTORY
INTRODUCTION OF THE COMPANY
MISSION
INDIAN FARMERS SUCCESS STORY
IMPORTANT AWARDS
BEST MANAGED WORK FORCE FOR IFFCO
IFFCO CASH AWARD IN CO-OPERATION
AWARDS AND PRIZE WINNER
KALOL-NEWS/EVENTS
FAQ ON CO-OPERATION
KALOL UNIT ISO 9001(2000)
ORGANISATION STRUCTURE
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B PRODUCTION DEPARTMENT
IFFCO’S UREA
IFFCO’S NPK/DAP
AMMONIA PROCCESS
UREA PROCCESS
KALOL EXPANSION PROJECT
PRODUCTION OF BIO-FERTILIZER
DRY ICE/LIQUIDE CO2
IFFCO ACQUIRES PARADEEPDAP/NPK UNIT
KALOL UNIT R&D ACTIVITY
KALOL UNIT LOCATION
KALOL UNIT MILESTONES PROJECT IMPLEMENTATION
PERFOREMENCE HIGHLIGHTS 2004-2005
MAJOR MILESTONES(RECORDES)
ENERGY SAVING SCHEMES PROJECT
STOPPAGE OF NAPHTHA AND FUEL OIL USAGE AT KALOL UNIT
KALOL UNIT RECORDS AND ACHIVEMENTS
KALOL UNIT PERFORMANCE
QUALITY CONTROL
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5. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
C MARKETING DEPARTMENT
MARKETING DIVISION AS DISTRIBUTED BY IFFCO
RATIONAL PRICING SCHEME
PROMOTION ACTIVITIES
MARKETING CENTRAL OFFICE AT NEW DELHI
ALL INDIA SHARE OF IFFCO
ANNUAL CONSUMPTION
PRICE OF IFFCO FERTILIZERS
FINANCE DEPARTMENT
BANKING SERVICES
IFFCO’S UNIVEINS US$ 1 BILLION INVESTMENT PLANT
PROFIT & LOSS ACCOUNT
BALANCESHEET
ADMINISRATION DEPARTMENT
MANAGEMENT
DESIGNATION
HEAD OF THE KALOL UNIT
IFFCO’S CHIEF EXECUTIVES OFFICERS
SENIOR EXECUTIVES

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6. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
D
HUMAN RESOURCE DEPARTMENT
INTRODUCTION&OBJECTIVE OF PERSONNEL MANAGEMENT
GRADING SYSTEM
RECRUITMENT & SELECTION PROCESS
TRAINING AND DEVELOPMENT
PERFORMANCE APPRAISAL
PROMOTION
DEMOTION & TRANSFER
LABOUR WELFARE SCHEME

SERVICES
 IFFCO LENDS A HELPING TO EARTHQUAKE VICTIM
CO-OPERATIVE RURAL DEVELOP MENT TRUST (CORDET)
CORDET AT IFFCO KALOL
INTEGRATED RURAL DEVELOPMENT PROJECT
AFFORESTATION PROGRAMME
IFFCO KISAN SEWA TRUST
PRINCIPAL FOCUS AREAS
IFFCO CHAIRS IN UNIVERSITIES
ENVIRONMENT-THE PRIME CONCERN
FARMERS SERVICE CENTRES
INVESTMENT OUTSIDE OF IFFCO
IFFCO KALOL DEVELOPMENT ECO-FRIENDLY TOWNSHIP
EGYPT’PLANT
SHAREHOLDER AGREEMENT FOR IFFCO CHHATTISGARH
POWER LTD (ICPL)
OMAN PROJECT
IFFCO TOKIO
CONCLUSION
BIBLIOGRAPHY
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8. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 Brief History Of The Company
The Indian Farmers Fertilizers Co-operative LTD(IFFCO) is one of the
largest producers of fertilizers in India.IFFCO,the government of India extended
the share of 51%of the othorised capital,some loan was taken frome the Financial
Institutions.The remaining capital was rised thought village level co-operative
societies has aminimum of two farmers and each farmer having a minimum a one
share of Rs. 1000 each IFFCO was registered on 3
th
of November 1967 under the
Bombay co-operative act
The first Plant of IFFCO was commissioned at KALOL in November 1974
to produce Ammonia.It is commercial production started 1
st
of March 1975.A Urea
plant has capacity of 3,00,300 tunes of ammonia and 3,96,000 tunes Urea per year.
The Kandala Plant was commissioned 26
th
November 1974 and the
commercial production of NPK/DAP started on 4
th
June 1981.Kandala Plant has
capacity of 3,09,130 tunes per annum of in terms of p205.
The Ammonia Plant at Phulpur started it commercial production on 10
th
October 1980 and that Urea on 5
th
October 1980.Phulpur Plant has capacity of
2,97,000 tunes of Ammonia and 4,95,000 tunes Urea per year.
The Aonla Plant fourth in Series started commercial production in July
1988.The Plant based on Natural Gas has capacity to produce 4,95,500 tunes of
Ammonia and 7,20,000
Tunes Urea per year.
IFFCO’s four Plant at KALOL,KANDALA,PHULPUR and AONLA
produce 27.36 lacks tunes of Fertilizers produced in the country.IFFCO is the
biggest multi Co-operative Society in Asia With an authorized capital of Rs 1150
crores.
The managing directore of IFFCO is the Chief Executive of Institutions and all
IFFCO policy,dicision and rules and regulation regulating IFFCO the Chief
Execuitve Mr.U.S.Awasthy is MD of the IFFCO at head office New Delhi.
Marketing
Personnel & Administration
Marketing Accounts
Agriculture Services
Marketing Service & Port Operation
Physical Distribution/Transportation
Training & Development
Public Relation
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9. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
INTRODUCTION OF THE
COMPANY
ÞADDRESS OF IFFCO
INDIAN FARMERS FERTILIZER CO-OPERATIVE LTD,
KALOL UNIT,
KASTURI NAGAR,
GANDHI NAGAR-382423
ÞContact Information For IFFCO FOUNDATION
FARM BHAVAN, 14-15 NEHRU PLACE,
NEW DELHI-110019 INDIA
TELEPHONE: [91-11] 2643-6450, 2643-6387
TELEFAX: [91-11] 2629-2519
E-MAIL ADDRESS: [email protected]
WEBSITE: HTTP://WWW.IFFCOFOUNDATION.ORG

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10. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Mission
ÞIFFCO’S MAIN MISSION
Iffco’s mission is “to enable Indian farmers to prosper through timely supply of
reliable,High quality agricultural inputes and services in an environmentally
sustainable manner and to undertake other activities to improve their welfare”
Strengthening management and participatory character of the Indian Cooperative
Movement by using duly tested and appropriate consultancy, advisory and
technological interventions sourced from within the country and abroad and in
accordance of the Cooperative Principles and in harmony with the law and culture
of the land.
ÞIFFCO’S APPROACH
To achieve our mission, IFFCO as a cooperative society, undertakes several
activities covering a broad spectrum of areas to promote welfare of member
cooperatives and farmers. The activities envisaged to be covered are exhaustively
defined in IFFCO’s Bye-laws.
ÞIFFCO’S COMITMENT
Our 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.
A.implements and other agricultural inputs/outputs and their conversion, storage,
transportation and marketing and undertake trading, shipping, transportation,
communication and telecommunication, information technology, power generation
and distribution from conventional or non-conventional energy sources, housing, real
estate, construction, banking and insurance and to undertake such other activities
which are conducive and incidental thereto.
B.In furtherance of above objects, IFFCO may undertake one or more of
the following activities which are indicative but not limited to:
To set up Plant or Plants for manufacture of chemical fertilizers and
allied products/bye-products;
INDIAN Farmers Success Story
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11. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Indian Farmers Fertilizer co-operative LTD was created on November 3, 1967 as a
Multi Unit Co-operative society engaged in production and distribution of Fertilizer. The
main emphasis is on Production and distribution of Fertilizers.
IFFCO commissioned the Ammonia-Urea complex at Lalol and the NPK/DAP
Plant at Kandala both in the state of Gujarat in 1975.Another Ammonia-Urea complex
was set up at Phulpur 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.
The expansion project at Aonla , Kalol and phulpur has been completed on
schedule. The latest feather in the cap of IFFCO was completion of Kandla phase-ll on 5
th
August 1999, which has heralded realization of all the objectives set forth under vision-
2000.
The distribution of IFFCO’s Fertilizer is under taken though over 35000 co-
operative societies.Rhe entire activities distribution sales and promotion are co-0rdinated
by marketing central at new Delhi assistade by the marketing office in the field.In
addition,essential agro-input for crop production are made available to the farmer through
a chain of 167 Farmers service center.
IFFCo today is a Dealing player in INDIA’s fertilizer industry and is making
substantial contribution to the effort of Indian government to increase food grain
production in the country.
IMPORTANT AWARDS
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12. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
IFFCO own the “Best Managed Work Force Award” from Hewitt
Associates and CNBC TV18.
Won second prize - Runner-up for “National Safety Awards 2003” from Ministry
of Labour, Govt. Of India.
Received “Certificate of Honour” for working more than 3 million Man-hours
without lost time accident during the year 2003 (Manufacturing of Chemicals &
fertilizer Industries Group) from Gujarat Safety Council.
Won first prize in the category of “Institutional Gardens” in competition organized
by Gujarat Horticulture Association..
Kalol Cordet won prizes for “Cut Flowers, Vegetables and Fruits” in the
exhibition.

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13. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Best Managed Work Force Award
for IFFCO
Indian Farmers Fertilizer Cooperative Limited (IFFCO), has won the prestigious
Best Managed Work Force Award instituted by Hewitt Associates and CNBC TV18.
The award was presented by Ms. Sheila Dikshit, Chief Minister of Delhi to Sh.
Surinder Kumar Jakhar, Chairman, IFFCO at glittering and impressive ceremony in New
Delhi. Shri Dayanidhi Maran, Union Minister for Communications and Information
Technology was present besides a galaxy of personalities from various private and public
enterprises.
IFFCO has been following a liberal, pragmatic and radical policy aimed at improving the
living standards and productivity of employees.
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14. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
IFFCO CASH AWARDS IN
COOPERATION
The Board of Directors in the year 1982 had approved giving a best cooperator
Award on an annual basis, to an individual who has contributed maximum towards
development of Cooperative Movement. The amount of Cash Award was fixed at
Rs.10,000/- along with a citation. This amount was enhanced by the Board in the year
1988 from Rs.10,000/- to Rs.25,000/-.
The Board of Directors in the year 1993 while approving IFFCO Cash Award on
Cooperation for the years 1990-1991 & 1991--1992 to the Best Cooperators, inter-alia
approved that in addition to the “Best Cooperator Award”, “IFFCO Sahakarita Bandhu
Award” may also be instituted from the year 1993-94. The amount of both the Awards
namely “IFFCO Cash Award on Cooperation to the Best Cooperator”, (ii) “IFFCO
Sahakarita Bandhu Award”, was fixed at Rs.51,000/- each from the year 1993-94 to be
presented every year. In the year 1997 the Board of Directors decided that the name of
the Best Cooperator Award should be changed to “Sahakarita Ratna Award”. In the year
2000 it was decided that the amount for each award be increased from Rs.51,000/- to
Rs.1,01,000/-.
As per the laid down procedure for inviting recommendations for the Awards, a
letter is addressed to all the State Cooperative Unions, IFFCO Directors and NCUI
requesting them to recommend the names of two nominees for the each award. The
recommendations so received are placed before the Sub-Group on Awards of the Board
of Directors for Screening of nominations of Cooperators. The recommendation of the
Sub-Group of the Award are placed before the Board of Directors for their consideration
and approval. The Awards are presented to the Awardees on the occasion of Jawaharlal
Nehru Memorial IFFCO Lecture which is organised generally during Cooperative Week
i.e. November 14-20 every year.
So far 21 eminent Cooperators received the Prestigious “Sahakarita Ratna Award” and
12 Cooperators were honoured with “Sahakarita Bandhu Awards” upto year 2003-04.
The Sahakarita Ratna Award for the year 2004-05 is being conferred on Shri
Varanasi Subraya Bhat from Karnataka State.
The honour of “Sahakarita Bandhu Award” for the year 2004-05 is being conferred
on Shri Jairambhai A. Patel from Gujarat.
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15. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
AWARD AND PRIZE WINNER
ÞMAJOR AWARD RECEIVED
Seven awards for overall performance from FAL
Two awards for Industrial Safety from GOL
Awards for Technical Innovation from FAT
Two Rajya Bhasha shields for promoting Hindi
Awards for safety from National Safety council Chicago
Indo Germen Green tech environment excellence awards
ÞKalol Unit - Awards
Eight Fertilizer Association of India Awards(FAI).
Two National Productivity Council (NPC) Awards.
Eighteen Safety Awards.
ÞKalol Unit - Fertilizer Association of India (FAI)
Awards
First Prize for best overall performance of an operating Nitrogenous Fertilizer Unit for
1980, 1982, 1983, 1984, 1985 and 1991.
Second Prize for best overall performance of an operating Nitrogenous Fertilizer Unit
for 1981.
First Prize for best Technical Innovation actually implemented in the field of
production / technology for 1981.
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16. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Kalol - News/Events
Third Prize for Kasturi Hindi House Journal
First Prize for Institutional Gardens
IFFCO Kalol Unit has won the First Prize in category of "Institutional
Gardens" in the competition organizedby Gujarat Horticulture Association, held on
13-Feb.-2005. The prize was awarded by Hon. Agriculture Minister, Govt. of Gujarat,
on 26-Feb.-2005.
National Safety Award for 2003
Kalol Unit has won second prize " RUNNER-UP from NATIONAL SAFETY
AWARDS 2003" under Schme No.II (Manufacturing of Chemicals & Fertilizer
Industries Group).
Gujarat Safety Council Award 2003
Kalol unit has received "Certificate of Honour" for working more than 3
million Man-hours without lost time accident during the year 2003(Manufacturing of
Chemicals & Fertilizer Industries Group).
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17. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
FAQ on Cooperation
Shri U S Awasthi, Managing Director, IFFCO enumerated the following major
components of the new business plan :
A state of the art phosphoric acid plant in Egypt with an installed capacity of 5 lakh
tonnes P2O5 tonnes per annum. The project would be executed through a Joint-
Venture Company with the equity association of El Nasr Mining Co. (ENMC) of
Egypt as a JV partner. IFFCO would hold the majority equity with over 75% along
with management control while the Egyptian counter part ENMC would pitch in
with balance equity in the JV. ENMC will supply Rock Phosphate for the project
and IFFCO will buy the entire phosphoric acid. This will lend stability to the
international prices of phosphoric acid.
A second Phosphoric Acid Plant in Kutch district, Gujarat with a capacity of five
lakh tonnes P2O5 per annum will be set up. This Plant will be wholly owned by
IFFCO.
The two Phosphoric Acid plants are being executed as part of IFFCO’s strategy to
achieve backward integration vis-à-vis vital ingredients for its DAP production
capacities.
A DAP / NPK Plant, with a capacity of 18 lakh tonnes per annum will be set up in
Kandla. The new facility with the latest know how will also be fully owned by
IFFCO.
IFFCO is in advance stage of negotiations with a Government entity in Egypt to
undertake rock phosphate mining. This venture will involve production of 20 lakh
tonnes of rock phosphate per annum to feed the phosphoric Acid Plant facility in
India.
The two phosphoric acid units, one DAP/NPK facility and rock phosphate mining
will involve a total investment of US $ 800 million dollars.
And, US $ 200 million is being invested in IFFCO’s energy saving and expansion
scheme. This will, eventually, result in subsidy savings worth Rs.800 crore per
annum as the production costs of Urea would be pruned substantially.
IFFCO is targeting a debt equity ratio of 2:1 for the US $ 1 billion business plan.
Negotiations have commenced with both domestic, foreign banks and financial
institutions to tie-up the debt funds for the green field projects. About US $ 670
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 17

18. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
million will be raised in debt and the rest US $ 330 million would be mopped up
towards equity.
 KALOL UNIT –ISO 9001
(2000)
KALOL UNIT received ISO-9001 certification from Bureau veritas Quality
International ( BVQI) in 1996. The same was recertified by BVQI for a period of three in
1999. Kalol unit is again recertified by BVQI for the updated new ISO standard ISO
9001 : 2000 in August, 2002. All the aspects of organisational activities are addressed to
confirm the Quality Management standard requirement as per ISO 9001 : 2000 giving
objectivity for continual improvement in operation and transperancy in dealings.
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21. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 IFFCO's Urea
IFFCO's Urea is not merely a source of 46% of nutrient nitrogen for crops, but it is
an integral part of millions of farmers in India. A bag of IFFCO's urea is a constant source
of confidence and is a trusted companion for Indian farmer.
When farmers buy IFFCO's urea, they know that what they get is not just a
product but a complete package of services, ably supported by a dedicated team of
qualified personnel. More importantly, they are aware that it is their own urea, produced
and supplied by a cooperative society owned by themselves.
ÞAbout 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. It has also numerous industrial uses notably for
production of plastics.
ÞSpecification of urea as per Fertilizer Control Order
Moisture % by weight, maximum 1.0
Total N % by weight (on dry basis)
minimum
46.0
Biuret % by weight, maximum 1.5
Particle size 90% of the material shall pass through 2.8
mm IS sieve and not less than 80% by
weight shall be retained on 1 mm IS sieve.
If urea is applied to bare soil surface significant quantities of ammonia may be
lost by volatilisation because of its rapid hydrolysis to ammonium carbonate. The
hydrolysis of urea can be altered by the use of several compound called urease inhibitors.
These inhibitors inactivate the enzyme and thereby prevent the rapid hydrolysis of urea
when it is added to soil. The rapid hydrolysis of urea in soils is also responsible for
ammonia injury to seedlings if large quantities of this material placed with or too close to
the seed. Proper placement of fertilizer urea with respect to seed can eliminate this
difficulty.
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22. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 IFFCO's NPK/DAP
As far as Indian farmer is concerned, IFFCO's NPK/DAP is not just a source of
crucial nutrients N, P, K for the crops, but is an integral part of his/her quest for nurturing
mother earth. The bountiful crop that results from this care is an enough reason for the
graceful bags of IFFCO NPK/DAP bags to be an integral part of the farmers's family.
The two grades of NPK produced by IFFCO, 10:26:26 and 12:32:16, indicating
the content of N, P, K proportion, are tailor made to supply the exact composition
required for replinishment of the soil. The Indian farmer's confidence and trust stems from
the fact that IFFCO's NPK/DAP are merely a part of a complete package of services, ably
supported by a dedicated team of qualified personnel. More importantly, they are aware,
IFFCO is a cooperative society owned by farmers cooperatives.
ÞAbout DAP/NPK
Diammonium Phosphate
It is the most popular phosphatic fertilizer because of its high analysis and good
physical properties. The composition of pure salt of DAP is N-21.19% and P205 -53.76%.
Fertilizer grade DAP is 18:46:0.
NPK Complex Grades
NPK complex fertilizers produced at Kandla are DAP based grades. At present
two grades Grade I - 10:26:26 and Grade II - 12:32:16 are produced.
Granular NPK complexes are free flowing and do not pose any problem during handling
and storage. However, exposure of material for long period to very high humidity may
cause caking. Therefore, NPK complexes are bagged in quality tested HDPE bags to
prevent ingress of moisture.
ÞBIO – FERTILIZERS
A biofertilizer unit was established at Cooperative Rural Development Trust, Phulpur
(Uttar Pradesh) in 1996 - 97 and other at Kalol (Gujarat) in 2003-04 with an annual
capacity of 75 MT and 165 MT respectively of different cultures such as Rhizobium,
Azotobacter, PSM, Azospirillium and Acetobacter.
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23. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 Ammonia Process
The plant is designed to produce 1100 tonnes of ammonia per day based on MW
Kellogg steam reforming process. Original name plant capacity of the Plant was 910 tpa,
which is upgraded to 1100 tpa in the year 1997 after Kalol expansion. Naphtha as well as
natural gas is used as feedstock. Naphtha is prereformed in Pre reformer mainly to
methane, hydrogen and CO2 and is further reformed in Primary reformer after mixing
with natural gas. Natural gas is purified in the Desulphuriser and then mixed with steam
and partially reformed in Primary reformer. The Pprimary reformer is supplied with
associated gas and naphtha as process fuel. A mixture of gases, coming out from Primary
Reformer, enters Secondary Reformer where stoichiometric quantity of air is introduced.
The gases leaving the Secondary Reformer contain nitrogen, hydrogen, carbon
monoxide and carbon dioxide. These gases are passed through Shift Converters where
most of the carbon monoxide gets converted to carbon dioxide. This converted gas is
purified in an Absorber where carbon dioxide is absorbed in an aqueous MDEA (methyl
diethyl amine) solution.
The MDEA (methyl diethyl amine) solution is regenerated in Strippers where
carbon dioxide is stripped off and sent to urea plant. The gases are again purified in the
Methanator where the remaining small quantities of carbon oxides are converted to
methane. The gas after purification is a mixture of mainly nitrogen and hydrogen in 1:3
proportion. It is compressed and sent to Ammonia Synthesis Converter along with recycle
gases.
Synthesis Converter is a single piece reactor. In Synthesis Converter nitrogen and
hydrogen combine to form ammonia. The gases from the Synthesis Converter are cooled
and recycled back to the compressor. The discharge stream of the compressor is passed
through a train of coolers and chillers where ammonia is condensed over chillers and the
unconverted gases from the Separator are sent to the Synthesis Converter which is of 3.19
m dia, 27.4 m high and weighs 255 t.
A small stream of gases being purged from the synthesis loop is sent to the Purge
Gas Recovery Plant where hydrogen is recovered by cryogenic process. This hydrogen is
recycled to the synthesis loop.
The separated liquid ammonia is purified by further flashing and it is then sent to
Urea plant or to an Atmospheric storage tank, having 10,000 or 5,000 tonnes capacity.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 23

24. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 Urea Process
The 1200 tonnes per day Urea plant based on Stamicarbon Stripping Process,
engineered by Humphreys & Glassgow, UK. was commissioned in January 1975. Urea
plant was revamped to uprate its capacity to 1650 tpd in the year 1997. The main raw
materials required for urea process namely, ammonia and carbon dioxide, are obtained
from the adjacent ammonia plant.
Carbon dioxide first enters a Stripper in which it counter currently contacts the
liquid product from the Autoclave. The liquid product from the bottom of the Stripper
which is mainly urea solution, passes to the recovery section. Gases from the top of the
Stripper enter Carbamate Condenser where ammonia and carbamate solution are also
introduced
The ammonium carbamate solution, uncondensed carbon dioxide, ammonia and
water vapours are introuduced into the Autoclave bottom. In the Autoclave, conversion of
ammonium carbamate in to urea is achieved at 150 kg/cm2 pressure. Product from
Stripper is let down to the Rectifying Column for recovery of small amount of
unconverted ammonium carbamate. An additional LP condenser is installed in the plant
for uprated capacity.
To unload the evaporators, Pre-eEvaporator is installed down stream of the Flash
tank to concentrate urea solution to 82.6 %. The product urea solution is further
concentrated in two Evaporators installed in series to produce molten urea which is
pumped to the top of a Prill Tower having a total height of 71 metres, from where it is
passed into a rotation Prill Bucket. Prills, formed in the Prill Tower, are collected at the
base by Prill Tower Scrapper which transfers urea to a conveyor to Prill Cooling System.
In Fluidised Bed Prill Cooling System urea is fluidised on perforated plate, heat of
hot prills is taken away by air and cooled to 55 deg C (max.). From here it is conveyed to
Bagging Plant or to Urea Silo.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 24

25. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Kalol Expansion Project
The main objective of the expansion project was to increase the capacity of urea
plant from 1200 tpd to 1650 tpd and ammonia plant from 910 tpd to 1100 tpd by
removing bottlenecks and upgradation of technology. The expansion project was
successfully completed and additional production has commenced from 31st August.,
1997.
Major schemes implemented under the expansion project for energy conservation,
uprating plant capacity and operational necessities are as below.
Urea plant revamp for uprating the plant capacity.
 Naphtha Pre-reformer system.
 Process air compressor revamp.
 MEA solution swap by aMDEA IN CO2 removal system .
 Syn. gas chilling.
 Replacement of cooling water pump back pressure turbine with efficient condensing
type.
 Natural gas booster compressor.
 Replacement of equipment / critical pipings.
 Conversion of Pneumatic Control System to Distributed Control System (DCS)
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 25

26. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
PRODUCTION OF BIO –
FERTILIZERS
CORDET - PHULPUR & KALOL (Annual Capacity 75 MT & 165 MT) (Qty in MT)
STRAIN 2000-012001-022002-032003-042004-05
Rhizobium 5.07 3.81 5.50 5.39 7.37
Azotobacter45.72 55.37 56.22 56.73 120.20
PSM 51.80 72.07 71.17 71.24 172.77
Azospirillium0.01 0.37 0.34 3.14 8.36
Aectobacter0.00 0.00 0.00 0.00 30.43
Total
Production
102.60 131.62 133.23 136.50 339.13
Capacity
Utilisation (%)
136.80 175.49 177.64 182.00 141.30
0
100
200
300
400
500
600
700
800
900
1/1/19001/2/19001/3/19001/4/19001/5/1900
YEAR
S
T
R
A
IN
Series11
Series10
Utilisation (%)
Capacity
Production
Total
Aectobacter
Azospirillium
PSM
Azotobacter
Rhizobium
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 26

27. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 DRY ICE /LIQUID CO 2
IFFCO Kalol unit has 6t/d dry-ice plant designed by Borsig, Germany. Liquid
CO2 can be produced in dry-ice plant by liquifying gaseous CO2 received from
ammonia/urea plants. plant has capacity to liquify 12 t/d CO2.

The saturated CO2 gas from ammonia plant at about 0.16 bar and 60 deg C is
cooled by washing in a direct contact cooler to condense the water vapour and washing
off odour-forming organic impurities etc. The CO2 gas after washing in CO2 contact
cooler is compressed dry cylinder compresor from 0.06 bar g to 40 bar g.
Alternatively provision is made to supply HP CO2 gas from final discharge of urea
plant CO2 compresor at a pressure of 153 kg/cm2g and 120 deg C. HP CO2 gas is let down
to a presure of 41 kg/cm2g and temperature of 35 deg C.
The CO2 gas from compressor discharge is saturated at 40 bar g and 40 deg C.
Water vapour is removed from gas by passing the CO2 gas over an adsorbent bed of silica
gel/amumina balls to dew point of -50 deg C. The trace quantities of odour forming
organic materials from the dry CO2 gas are removed by passing it through the activated
charcoal bed.
The pure and dry CO2 gas is cooled and condensed by evaporating ammonia on
the shell side of condenser. CO2 at 40 bar g and 0 deg C flows down to CO2 liquid storage
tanks. The non condensable such as H2, N2 and CH4 are vented to atmosphere.
There is one 40 bar g CO2 liquid storge tank of 4.5 t capacity and two no. 22 bar g
storage tank each of 17.5 t capacity. For sale of liquid CO2, liquid is letdown from 40 bar
g tank to 22 bar g tank.
Dry-ice is a solid form of CO2 lqiuid. Liquid CO2 at 0 deg C is flashed into the top
of snow tower, through expansion valve. CO2 liquid is cooled in the U tube of revert gas
heat exchnger by flashed CO2 from snow tower to increase the "yield of snow" per pass.
The snow formed inside the snow tower drops into the pressing chamber. piston presses
the snow in the pressing chamber to make cylindircal dry-ice block of about 185 mm
diameter and length 200 to 375 mm. the dry-ice blocks weigh about 8 to 15 kg depending
on the length of the blocks. The blocks are wraped in craft paper and stored in an
insulated storge to minimise the loss by evaporation during storage. CO2 gas formed in the
snow tower passes to the shell of the revert gas exchanger and recycled for producing
liquid CO2.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 27

28. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
IFFCO acquires Paradeep
DAP/NPK Unit
16th September, 2005 was another momentous date for the fertilizer
cooperative major – IFFCO.In a historic deal – the largest ever in the industry;
IFFCO acquired the DAP, NPK and phosphoric acid facilities at Paradeep in Orissa
from Oswal Chemicals & Fertilizers Ltd.
The deal was stuck between IFFCO and Oswals for a sale consideration of Rs 2180
crore that includes banks and financial institutions exposure of Rs 1915 crore.
The Paradeep facility includes a two million tonne capacity to produce both
DAP and complex fertilizers annually. It also has a phosphoric acid plant along with
railway siding facility.
The acquisition comes in the wake of the ‘VISION 2010’ of the organization
which is geared up to take new challenges and opportunities in its stride. The facility
will increase the complex fertilizer capacity of IFFCO by 2 million tones –
strengthening its business, assisting its efforts to bring in more opportunities to serve
the farmers of the country.
IFFCO convened a meeting of its Board of Directors on September 28 to
approve the takeover. The move was welcomed by everyone and the Board
congratulated the MD and the entire management of IFFCO for taking a swift action
in this regard
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 28

29. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Kalol Unit R& D Activities
IFFCO Kalol unit has in house R & D set up established since the inception
stage of the plant. The R & D laboratory was recognised by Department of Scientific and
Industrial Research under Ministry of Science and Technology, Government of India, as
in house R & D laboratory in 1985. Initially the R & D work was mainly to meet the plant
trouble shooting requirement and for resolving corrosion and microbilological fouling
problems in cooling water system. Presently R & D laboratory is working on the
production of biofertilizers using area speific bacterial strains. Over a period of time,
IFFCO have worked on the following R & D projects :
Value addition product in Urea fertilizer.
Smooth change over of chromate to non chromate treatment for cooling tower.
Use of biotechnology for improvemnt of effluent quality.
Use of urease enzyme for the sand consolidation of oil wells for ONGC.
Corrossion and microbiological study of cooling water and MDEA system.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 29

30. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Kalol Unit – Location
State Gujarat, India
State Capital Gandhi Nagar, is about 18 Km from the plant site.
Distance from New
Delhi
912 Km
Distance from Mumbai 514 Km
Nearest Airport Ahemdabad (About 25 Km. away from Plant)
Railway Station Kalol (7 Km from the plant)
Road Ahmedabad (25 Km from the plant)On Ahmedabad-Mehsana State Highway
(SH)
Area under Plant 96 Hectares
Area under Township 22 Hectares
Temperature ( o C ) 45 (Maximum) in summer to 4 (Minimum) in winter.
Rainfall (mm) 742
Longitude 72-31-40
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 30

31. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Kalol Unit
Milestones of Project Implementation
Performance Highlights 2004-05
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Commissioning
Ammonia Plant Nov.05, 1974
Urea Plant Jan. 31, 1975
Dry Ice Plant Mar. 28, 1978
Plant Expansion Aug. 31, 1997
Commercial
Production
Ammonia Mar. 01, 1975
Urea Apr. 01, 1975
Dry Ice Plant Mar. 28, 1978
Products Present Capacity in TPA
AMMONIA 363000
UREA 544500
DRY ICE 1980
LIQUID CO2 3960
31

32. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Highest Production of Fertilizers
(Previous Best 60.47 lakh tonne in 2002-03)
61.54 lakh tonne
Highest Production of Urea
(Previous Best 36.85 lakh tonne in 2002-03)
37.14 lakh tonne
Highest Production of NPK/DAP
(Previous Best 23.62 lakh tonne in 2002-03)
24.40 lakh tonne
Highest Sales of Fertilizers
(Previous best 60.54 lakh tonne in 2003-04)
64.64 lakh tonne
Sales of Urea
(Highest Sales of 37.02 lakh tonne in 2003-04)
36.70 lakh tonne
Highest Sales of NPK/DAP
(Previous best 23.52 lakh tonne in 2003-04)
27.94 lakh tonne
Profit Before Tax
(Best PBT Rs.807.09 crore in 2002-03)
Rs.471.00 crore
Profit After Tax
(Best PAT Rs.557.21 crore in 2002-03)
Rs.320.00 crore
Highest Turnover
(Previous best Rs.6091.14 crore in 2002-03)
Rs.7224.00 crore
Plant Productivity
(Previous best 1367 MT in 2003-04)
1511 MT per head
Marketing Productivity
(Previous best 3345 MT in 2003-04)
3848 MT per head
Lowest Product Inventory
(Previous lowest 5.09 lakh MT in 2003-04)
4.26 lakh MT
Lowest Composite Energy Consumption
(Previous lowest 6.14 Gcal/ MT in 2003-04)
6.138 Gcal/ MT
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 32

33. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Major Milestones (Records)
Produced highest ever 5.55 lakh tonne of Urea.
Despatched highest ever 5.57 lakh tonne of Urea.
Achieved lowest specific energy consumption of 6.343 Gcal/MT of Urea.
Produced highest monthly production of 53.6 thousand tonne of Urea in the month of
October, 2004.
Twelfth million tonne of Urea production was achieved on 9.11.2004
.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 33

34. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Energy Saving Schemes Project
IFFCO has embarked upon an ambitious Energy Saving Project (ESP) for its five
Ammonia Plants located at Kalol, Phulpur-I, Phulpur-II, Aonla-I and Aonla-II at a total
cost of Rs. 405 crore. October 2003 was declared as Zero date of the Project. M/s. HTAS,
Denmark and M/s PDIL, Noida, were appointed as Consultants for Basic Engineering and
Detailed Engineering respectively. The Energy Saving Schemes were identified by M/s.
HTAS, Denmark, after carrying out a detailed study of all the five Ammonia Plants. The
Project was bifurcated in to two parts as Phase-I and Phase-II for ease of implementation
and to facilitate accrual of early benefits.
Phase-I Energy Saving Schemes Project have been implemented in the Annual
Turn around of 2005 in all the Ammonia Plants. Phase-II Schemes shall be implemented
in Annual Turn around of 2006.
Considering the October 2003 as zero date, Phase-I Energy Saving Schemes
Project have been commissioned in the shortest period of 17 months.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 34

35. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Stoppage of Naphtha and Fuel Oil
Usage at Kalol Unit
To meet the targeted Urea production of 5.545 lakh MT at Kalol, about 55934 MT
Naphtha and 20320 MT Fuel Oil (FO) were consumed in the year 2004-05. From July
2005, the Unit is completely based on NG/RLNG. Usage of R-LNG in place of
Naphtha/FO has reduced the cost of production.
Total stoppage of Naphtha/FO and its replacement by RLNG shall reduce the
Government subsidy @ Rs. 7 crore per month amounting to about Rs. 84 crore per year.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 35

36. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Kalol Unit : Records and
Achievements
Achievement Ammonia Urea
Highest production
For a Day 1150 (22-12-1997) 1806 (17-11-2002)
For a Month 34182 (Aug-1999) 53570 (Oct-2004)
For a Year 346244 (1998-99) 554507 (2004-05)
Lowest Specific Energy
For a Month 8.829 (Jun-1984) 6.120 (Jan-2005)
For a Year 9.163 (2004-05) 6.344 (2004-05)
Highest On-stream days 355 (1991-92) 338 (1995-96)
Highest Despatches
For a Day 2078 (20-09-2003) 5223 (01-08-2000)
For a Month 25009 (Sept-2003) 61040 (July-1999)
For an Year 90989 (1980-81) 556504 (2002-03)
Kalol Unit – Performance

Particulars Units2000-01 2001-022002-032003-042004-05
Ammonia Plant
Production '000 t303 322 315 322 342
Cap. utilisation % 83.5188.71 86.67 88.57 94.20
Sp. Energy G cal / t9.7769.424 9.585 9.440 9.163
Onstream Days No. 326 332 325 337 344
Urea Plant
Production '000 t488 550 538 480 555
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 36

37. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Cap. utilisation % 89.59101.0698.82 88.08101.84
Sp. Energy G cal / t6.7626.520 6.627 6.597 6.344
Onstream Days No. 305 329 323 292 337
Dry Ice Plant
Production t 130 77 83 69 22
Liquid CO2
Production t 2880 662 1009 1341 784
Quality Control
IFFCO Kalol is conscious about quality of it's inputs and products. A special
quality control cell has been established with the state of the art testing facilities. All the
raw materials and consumable used in the process are tested against the specifications/
standards laid down.
Samples are drawn from various points from the urea/ammonia manufacturing process to
optimise output efficiency, minimise losses and to achieve consistency in the product
quality. Special care is taken for analysing packing materials and strict quality control is
exercised in accepting the same.
Quality control cell has got microprocessor controlled gas chromatographs, HPLC
with ion analysers, ppm gas analysers, flame photometer, mettler balances, tensile
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 37

38. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
strength testers and complete set of instruments for environmental and stack analysis.
Quality of product at destinated points is reconfirmed by sampling and testing.
Sample drawn by field staff are analysed by quality control cell an feed back is given to
field staff.
It is always ensured that IFFCO product are well within the norms specified under
Fertilizer Control Order (FCO).
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 38

39. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
MARKETING DIVISION AS
DISTRIBUTED BY IFFCO
MARKETING DIVISION
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 39

40. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
ZONAL OFFICE ZONAL OFFICE ZONAL OFFICE ZONAL OFFICE ZONAL
OFFICE
N.CHANDIGADH N.LUCKNOW E.KALKATTA WEST BENGAL
S.BANGLORE
STATE OFFICE STATE OFFICE STATE OFFICE STATE OFFICE STATE
OFFICE
AREA OFFICE AREA OFFICE AREA OFFICE AREA OFFICE AREA
OFFICE
. Retention Pricing Scheme (RPS )
The fertiliser prices in India are regulated by the state to make them more affordable to
the Indian farmers majority of whom are poor. Retention Pricing Scheme is the
mechanism by which the government of India attempts to compensate the fertiliser
producers in lieu of keeping the fertiliser prices stable. A reasonable return on networth is
also assured to the fertiliser producers in this mechanism. Thus, the twin objectives of
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 40

41. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
increasing indigenous production and encouraging consumption of fertilisers are sought to
be achieved.
The RPS was first introduced for nitrogenous fertilisers in November, 1977. This was
extended to complex fertilisers in Feb 1979. Single Super Phosphate (SSP) was brought
under the gambit of RPS in 1982.
Under this scheme, each fertiliser unit is awarded an ex-factory price based on the
prescribed norms. The norms are fixed with respect to capacity utilisation and also
consumption of inputs. This ex-factory price is referred to as Retention Price. A post-tax
return of 12 per cent on networth is provided as a reasonable return in this mechanism.
The difference between the retention price and the state controlled fertiliser price to the
farmer is paid back to the manufacturer as subsidy. Transportation costs are also
compensated based on equated freight computed on a normative basis. Thus, the RPS
scheme provided an elegant means of subsidising farmers through fertiliser manufacturers
to ensure conducive environment for both production and consumption. Since subsidy
was an integral part of the scheme, substantial outflows were involved from the
government. During the early nineties, the country faced acute resource crunch, which
among other reasons, was attributed to subsidy burden. This had led to fresh policy
initiatives with major
PROMOTIONAL ACTIVITIES
AGRICULTURE EXTENTION PROGRAMMES ARE INTERNAL PART OF
IFFCO’S MARKETING EDUCATIONAL PROGRAMMES ARE CONDUCTED BY
THE FIELD PERSONAL UNDER THE ABLE GUIDANCE OF AREA/ STATE /
ZONAL AGRONOMIST/ SOME OF THE PROGRAMMES UNDERTAKEN ARE
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 41

42. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
PROGRAMMES TO PROMOTE BUINCED USE OF FERTILIZERS
VILLAGES ADOPTION PROGRAMMES FOR BRINGING ALL
AROUND SOCIO- ECONOMIC DEVELOPMENT
FARMERS TRAINING OF VARIOUS AGRICULTURE
INSTITUTES
SOIL TESTING
THE FARMER EDUCATION PROGRAMMES OS IFFCO ARE BROADLY
CLASSIFIED
DEMONSTRATIONS
FIELD PROGRAMMES
SEED MULTIPLICATION
VILLAGE ADOPTION
Marketing Central Office, New Delhi
Mr A. Roy General Manager [email protected]
Mr. D. BhattacharyyaGeneral Manager (P&A )/ [email protected]
Mr. K K Verma Jt. General Manager (F&A) [email protected]
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 42

43. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
North Zone
Mr P S Sidhu Zonal Manager (North) [email protected]
Mr S S Panwar State Mktg. Manager ( Haryana)[email protected]
Mr R K ChordiaState Mktg. Manager ( Rajasthan)[email protected]
Mr. S.S. LehalState Mktg. Manager ( J & K) [email protected]
Mr. R.S. Yadav State Mktg. Manager [email protected]
North Central Zone
Mr S K Tyagi General Manager (Marketing) [email protected]
Mr T P S Tomar State Mktg. Manager ( UP) [email protected]
Mr D V Singh State Mktg. Manager ( Bihar)[email protected]
Dr G K Choudhary State Mktg. Manager ( Jharkhand)[email protected]
West Zone
Dr S P Shukla General Manager (Marketing) [email protected]
Mr B L Mania State Mktg. Manager ( Gujarat)[email protected]
Mr C B Mishra State Mktg. Manager ( MP) [email protected]
Mr S S P DwivediState Mktg. Manager ( Chhattisgarh))[email protected]
Dr. K.G. WankhedeState Mktg. Manager ( Maharashtra)[email protected]
East Zone
Dr D P Patra Zonal Manager (East) [email protected]
Mr Indrajit PutatundaState Mktg. Manager (Assam)[email protected]
Mr S K SamantarayState Mktg. Manager ( Orissa))[email protected]
South Zone
Dr C S Rao Jt.General Manager (Mktg) [email protected]
Mr S GovindarajanState Mktg. Manager ( Tamilnadu)[email protected]
Mr P Subhash BabuState Mktg. Manager ( AP) [email protected]
Mr Tomgee KallingalState Mktg. Manager ( Kerala)[email protected]
Mr K T ManjunathSr Manager (Mktg) [email protected]
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 43

44. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
IFFDC
Dr. P S Marwaha Jt.GM (Mktg)& Chief Exe [email protected]
All India Share of IFFCO
(Quantity
in '000
Tonnes)
2004-052003-042002-032001-022000-0199-0098-9997-9896-9795-9694-95
N Prodn.11333.210633.910507.610689.510942.8 10873.210477.3100838592.38768.87944.3
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 44

45. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
ALL
INDIA
Cap.
Util.
92.6%
87.0%86.6 %88.3% 92%98.2%99.2% 93.2%98.5% 91.0%
IFFCOProdn.2070.81977.42060.21911.61879.31807.51843.614971019.51012.01006.7
Cap.
Util.
101%
98% 102.098%100.0%109.0%115.0%112.0%106.9%117.2%116.6%
Share 18.3%18.6%19.6%17.9%17.1% 16.6%17.6%14.8%11.9%11.5% 12.7%
P2O5ALL
INDIA
Prodn.3996.83630.83907.43835.23734.234043181.2305825592593.52562.6
Cap.
Util.
72%
66%74.7%75.9%77.8%90.5%95.0% 87.1%90.7% 90.9%
IFFCOProdn. 938.4832.7949.2793.3664.2708.8500 478350.427360.634377.214
Cap.
Util.
103%
101% 115%109%118.0%126.0%162.0%154.5%113.4%116.7%122.0%
Share 23.5%22.9%24.4%20.7%17.7% 21.1%16.3%15.6%13.7%13.9% 14.7%
TOTALALL
INDIAProdn.
15330.0
14264.714415.014524.714676.9 14277.213658.51314111151.311362.310506.9
IFFCOProdn.3009.22810.13009.42704.92543.52516.32343.61974.51369.91372.61383.9
Share 19.6%19.7%20.9%18.6%17.3% 17.6%17.2%15.0%12.3%12.1% 13.2%
Annual Consumption of Major
Inputs
Item Unit 2001-20022002-032003-042004-05
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 45

46. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Natural Gas MMSM3 150 130 115 62
Associated GasMMSM3 72 79 71 64
R-LNG MMSM3 0 0 0 153
Naphtha MT 87415 96045 11718155934
LSHS MT 39195 45197 42285 42162
Caustic Soda
(46%)
MT 452 312 270 263
HCL (31%) MT 11197 11087 10762 11432
Sulphuric Acid
(98%)
MT 51 34 29 32
aMDEA MT 17 14 17 17
Prices of IFFCO's Fertilizers
(Applicable only within India)
(Indian Rupees Per Tonne w.e.f 28-02-2002)
UREA NPK DAP MOP
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 46

47. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
N-46%10-26-2612-32-1618-46-0K-60%

M.R.P. 4830 8360 8480 9350 4455
Local Taxes Extra, where ever applicable.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 47

48. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 48

49. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
BANKING SERVICES
LOAN SCHEME
Purpose To purchase consumer durables/house-hold articles,
to meet the marriage expenses, other family
expenses, etc.
EligibilityPermanent employees who are confirmed in the
services of Govt. Departments, Reputed
Corporates / Business Houses, Recognised
Educational Institutions, etc. Whose age is below 54
years.
Loan
Quantum
6 times of the gross salary as per latest salary bill
with a maximum of Rs.2,00,000/-.
Security Lien over Salary, Bonus and other emoluments.
Primary :Hypothecation of assets created out of the
loan proceeds in case loan is sanctioned for
purchasing Consumer Durables/House-hole articles.
Suitable third party guarantee, if necessary.
Collateral :Obtention of collateral security need not
be a prerequisite.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 49

50. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Guarantee : If the employer does not undertake to
deduct and remit the instalment or the instalment is
not deducted from the salary account maintained by
the branch, suitable guarantee from two worthy
persons should be obtained.
Pre-
requisite
1. Proof of income and certificate from the employer
for the take Home Salary.
2. Undertaking from the employer to deduct and
remit the instalment amount from the salary of the
staff every month when the employer is agreeable
for the same.
Repayment Maximum of 60 EMI, while fixing repayment, take
home salary of the employee, the remaining period
of service, etc., should also be taken into account so
as to ensure that the loan amount is recovered
within the period of service of the applicant.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 50

51. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
ANYWHERE BANKING
ParticularsTMB Silver TMB Gold TMB PlatinumTMB Diamond
TMB
Premium SB
Minimum
Balance
Rs.10000/-
(Monthly
Avge)
Charges for
Non
Maintenance
Rs.250/- Per
Month.
Rs.50000/-
(Monthly
Avge)
Charges for
Non
Maintenance
Rs.500/- Per
Month.
Rs.3,00,000/-
(Monthly
Avge)
Charges for
Non
Maintenance
Rs.1500/-
Per Month.
Rs.10,00,000/-
(Monthly
Avge)
Charges for
Non
Maintenance
Rs.6000/-
Per Month.
Rs.5000/=
(Qtly Avge)
Charges for
Non
Mainten-
ance
Rs.200/-
Per
Quarter.
Cheque
Issue
50 Cheque
leaves free of
cost.
Subsequent
Cheques
Rs.2/- Per
Leaf.
50 Cheque
leaves free of
cost.
Subsequent
Cheques
Rs.2/- Per
Leaf.
50 Cheque
leaves free of
cost.
Subsequent
Cheques
Rs.2/- Per
Leaf.
FREE
60 Cheque
leaves free of
cost.
Subsequent
Cheques
Rs.2/- Per
Leaf.

V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 51

52. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
IFFCO UNVEILS US$ 1
BILLION INVESTMENT PLAN
Indian Farmers Fertilizer Cooperative Ltd. (IFFCO), world’s largest fertilizer
cooperative has decided to embark on a US$ 1 billion investment plan to ramp up
domestic fertilizer production capacity and achieve savings in energy consumption in
its Ammonia – Urea Plants.
Revealing details to the media Shri Surinder Kumar Jhakhar, Chairman, IFFCO
said that as a result the fertilizer production capacity of IFFCO will increase to 86 lakh
tonnes per annum from the present 61 lakh tonnes. IFFCO has targeted fertilizer
production of 100 lakh tonnes in the medium term. These investments will also ensure
backward integration for assured supply of phosphoric acid, one of the major raw
materials.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 52

53. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
PROFIT& LOSS ACCOUNT
FOR THE YEAR ENDED 31
ST


MARCH- 2005
SCHEDULE YEAR ENDED 2005 YEAR ENDED 2004
Rs IN LAKHS Rs IN LAKHS
INCOME FROM OPERATION
SALES 409760.12 376339.26
SUBSIDY FROM GOVT OF INDIA 312642.79 216617.64
OTHER REVENUE 14 26819.1127235.97
INCREASE/DECREASE IN STOCK 15 14182.0815888.48
735059.94 603304.41
LESS:COST OF OPERATION
CONSUMPTION OF R.M &STORES
RAW MATERIALS 497699.03 393366.97
STORES & SPARES 6857.29 4669.31
CHEMICALES& CATALYSIS 2101.76 2062.67
PACKING MATERIALS 13098.84 9603.66
POWER, FUEL& WATER 45997.68 41882.82
565754.6 451585.43
LESS:STOCK TRANSFER FOR
SELF CONSUMPTION 8776.63 558957.97 14834.60 436750.83
PURCHASES:
SEEDS & CHEMICALS 544.47 471.36
UREA & DAP 15041.38 15585.85 3369.64 3841.00
EMPLOYEE'S REMUNERATION & 16 26810.4625666.11
BENEFIT
OTHER EXPENSES ON MANUFAF
ADMINISTRATION &DISTRIBUTION 17 68666.7263356.47
INTEREST 18 3401.724112.19
DEPRICIATION 16759.14 18401.69
PRIOR PERIOD ADJUSTMENT 19 213.78 93.6
687968.08 552034.69
PROFIT BEFORE TAX
PROVISION FOR TAXATION:
CURRENT 15367 16150
EARLIER YEARS 179 2717.94
DEFFERED 417.98 15128.02 564.84 18303.10
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 53

54. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
31963.84 32966.62
PROFIT AFTER TAX
PROFIT TRANSFERRED TO
CAPITAL REPATRIATION FUND 126.2 126.2
DIVIDEND EQUALISATION FUND 2000 7500
CONTRIBUTION TOWARDS APPR 10 2136.20100 7726.20
OVED DONATION
NET PROFIT-AS PER MULTISTATE
CO-OPERATIVE SOCLETLES,ACT
2002 29827.64 25240.42
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 54

55. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
BALANCE SHEET
As on 31/3/2004-05
SCHEDULE AS AT 31/3/2005 AS AT 31/3/2004
SHAREHOLDER'S FUND 1 42122.85 45701.3
SHARE CAPITAL 8.1 889.11
SHARE APPLICATION
MONEY
RESERVES AND 2 287984.3 330115.25264768.23 310958.64
SURPLUS
LOAN FUNDS
SECURED LOANS 3. 14505.55 70337.21
UNSECURED LOANS 50203.55 64709.1029055.63 99392.84
DEFERRED TAX LIABILITY 42125.38 42543.36
TOTAL 436949.73 452894.84
APPLICATION OF FUNDS
FIXED ASSETS 443556.7 438556.65
GROSS BLOCK 241116.67 225454.45
LESS:DEPRITIATION 202439.03 213103.2
NET BLOCK 13623.36 216062.414127.36 217278.58 0
CAPITAL WORK IN 69073 69508
PROGRESS
INVESTMENTS
CURRENT ASSESTS
,LOANS&ADVANCES
INVENTORIES 93150.65 102056.05
SUNDRY DEBTORS 32459.94 46946.1
CASH AND BANK BAL. 19910.28 11338.45
LOAN AND ADVANCES 114877.67 98060.45
LESS;CURRENT LIABILITIES 260396.54 256402.05
AND PROVISIONS
CURRENT LIABILITIES 93381.28 75719.38
PROVISIONS 17102.94 14524.38
110484.22 80243.77
NET CURRENT ASSETS 149914.32 166158.28
MISCELLANEOUS
EXPENDITURE
VOLUNTARY 1900
RETIREMENT
SCHEME EXPENSES
TOTAL 436948.73 452894.84
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 55

56. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 56

57. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 57

58. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
MANAGEMET
The Representative General Body ( RGB) which is the General Body forms the
supreme body that guides the various activities of IFFCO. The RGB consists of :
ÞMembers of the Board of Directors.
ÞOne delegate from each of the Member Societies holding shares of the value of
Rs.100 thousand and above; such delegate shall be as per the provisions of the
Multi-State Cooperative Societies Act/Rules as amended from time to time;
ÞDelegates to be elected from amongst the representatives of Member-Societies
(other than Members holding shares of the value of Rs.100 thousand and above) in
each State/ Union Terriotory at the rate of one delegate for every 200 societies or
part thereof. However, the maximum number of such delegates from any State /
Union Territory shall not exceed 25. Such elected delegates shall be as per the
provisions of the Multi-State Cooperative Societies Act/ Rules amended from time
to time.
The BOARD OF DIRECTORS of IFFCO carry out all functions as specified
under the Multi-state Cooperative Societies Act/Rules. The Board of Directors
frame policies, direct the various activities of the Society, and under take any other
activities conducive to overall growth and development of Societies. The Board is
headed by the Chairman.
The Managing director of the Chief Executive of the organisation with
responsibilities for general conduct, supervision and management of day to day
business and affairs of IFFCO. The Finance Director oversees the financial aspects
and the Marketing Director looks after the marketing functions of IFFCO. These
three functional directors are assisted by Senior Executives who are experts in
various desciplines.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 58

59. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
DESIGNATION
Name Designation E-mail
Mr. K. L. Singh Executive Director [email protected]
Mr. A.K.Sinha General Manager [email protected]
Mr. H. D. Mistry Jt.General Manager
(Maint.)
[email protected]
Mr. M.R. Patel Jt.General Manager (Tech.)[email protected]
Mr. A. K. Singh Jt.General Manager (P&A)[email protected]
Mr. Shamsher singh Jt. General Manager (Prod.)[email protected]
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 59

60. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Head of the Kalol Unit
Mr.K.L.Singh, Executive Director
Executive Director, the chief executive of Kalol unit is responsible for overall
Management of the unit. Mr. K.L.Singh gratuated in Mechanical Engineering from Bihar
College of Engineering, Patna in the year 1970. He has wide experience in Project
Planning, Construction, Opeartion & Maintenance of Fertilizer Industry at various levels.
He joined IFFCO in the year 1979 at Phulpur Unit (Allahabad). Before joining IFFCO, he
was associated with Bokaro Steel Limited and Bhilai Steel Plant in various capacities.
During his association with IFFCO he has widely travelled abroad for presenting
papers at various National and International Symposiums. He had been to ICS, Senegal as
technical expert to solve some of their chronic problems. He is a key technocrat to head a
premier fertilizer unit.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 60

61. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
IFFCO's Chief Executive Officer
Mr U.S.Awasthi
The Chief Executive Officer of IFFCO, designated as Managing Director, is
vested with the overall responsibility of the affairs of IFFCO's day to day activities. Mr.
Udai Shanker Awasthi is Managing Director of IFFCO since 1993.
Mr. Awasthi is an internationally renowned chemical engineer and has about four
decades of experience which is completely dedicated to the fertilizer industry. Mr.
Awasthi enjoys the unique distinction of serving private, public and cooperative sectors of
the industry in India. He is acclaimed as a manager par excellence in India, particularly, in
the area of project management. He has played crucial role in setting up a number of
Ammonia-Urea, SSP and NPK/DAP projects in the country.
Ever since taking over as the Managing Director of IFFCO in February 1993, Mr.
Awasthi has instilled new dynamism into IFFCO. He was the architect of "VISION
2000", a strategic road map for IFFCO, to make it a global leader in fertilizer production.
The organisation has made rapid strides on all fronts under the aegis of this plan. New
records and milestones were created in projects, production, energy conservation,
environmental protection and sales. Four major expansion projects were completed and
new grassroots projects in India and Joint ventures abroad are under implementation or in
the pipeline. With the completion of Kandla-II on Aug 5, 1999, all the major projects of
Vision 2000 have been achieved. A testimony of Mr. Awasthi’s project management
skills are evident from the fact that these projects were completed without time and cost
overruns. A hallmark of Mr. Awasthi’s tenure at the helm of IFFCO are the high levels of
growth & and excellent financial results which are unsurpassed in the history of IFFCO.
He was also instrumental in diversification forays of IFFCO such as IFFCO-Tokio
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 61

62. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
SENIOR EXECUTIVES
Functional Directors
Managing Director Mr. U.S. Awasthi
Marketing Director Mr. D.K.Bhatt
Finance Director Mr. Rakesh Kapur
Senior Executives
Chief Vigilance OfficerMr Gian Singh [email protected]
Senior Executive Director
(Technical)
Mr. V.K. Bali [email protected]
Executive Director
(Transportation)
Dr. D.K. Shukla [email protected]
Executive Director (P & A and
TSD)
Mr. S.K Mishra [email protected]
Executive Director (Market
Planning)
Mr. B. D Singh [email protected]
Executive Director (Aonla)Mr. H.C Dave [email protected]
Executive Director (Tech)Mr. Subhash Chandra [email protected]
Executive Director (Kandla)Mr. S.P Yadav [email protected]
Executive Director (ICPL)Mr. M.M Raheja [email protected]
Executive Director (Kalol)Mr. K.L Singh [email protected]
Executive Director (CS&AM)Dr. G.N Saxena [email protected]
Other key Officials
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 62

63. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 63

64. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 INTRODUCTION OF PERSONNEL
MANAGEMENT
Human resource or manpower is most valuable things
of any organization. We can define if as a lifeblood of any
organization functioning. We can utilize it properly or at
maximum possible extent to achieve organizational as well as
individual goals.
Human resource or manpower is assets of any
organization. Manpower management or personnel
management is related with the function of recruitment,
selection, promotion, demotion, transfer policy, wages and
salary administration, collective bargaining, union benefits and
other activities.
OBJECTIVE
Palph C. Davis has divided the objectives of the
personnel management into two categories.
1)Primary objectives:
·Relate to the satisfaction of
community and social objectives.
·Relate to the creation and
distribution of some goods and
services.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 64

65. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
·.
2)Secondary objectives:
·The continuity of the enterprise.
·The effective utilization of people
and materials in productive work.
·The economic need, or usefulness
of the goods and services required
by the community / society.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 65

66. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 GRADING SYSTEM AT IFFCO
- KALOL
GRADE(OFFICER) BASIC PAY (RUPEES)
TOTAL NUMBER
OF INCREMENTS
Actual Incremen
t
Maximum
B1 23750 600 28550 08
C0 21500 500 26300 08
D0 20000 500 25000 10
E0 18500 450 23900 12
F0 17500 400 22300 12
F1 16000 100 20800 12
G0 14500 350 18700 12
G1 13500 350 18050 13
G2 10750 300 16750 20
H0 9100 250 14600 22
GRADE(WORKER) BASIC PAY (RUPEES)
TOTAL NUMBER OF
INCREMENTS
Actual
Incremen
t
Maximum
H1 8200 220 12380 19
H2 7600 210 11590 19
J0 7100 175 10425 19
J1 6600 150 9450 19
K0 6400 130 8870 19
L0 6050 110 8360 21
L1 5650 100 7760 21
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 66

67. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
MO 5300 90 7190 21
N0 4900 80 6580 21
 RECRUITMENT & SELECTION
PROCEDURE
Recruitment and selection policy is to recruit and
promote most suitable person. Suitability of candidate is to be
judge by senior officer based on his
 Academic qualification
 Experience in and outside IFFCO
 Nature of experience
 Interview performance
 Suitability for the post
 Potential for future development
Engagement of APP:
· Except graduate engineers, other
apprentices at unit level
· GET to be absorbed “G2” as assistance
engineers
· Dip. In engineering/ B.Sc (PCM) – Subject
to manpower requirements to be engaged as IFFCO
trainee for one year on successful completion of
trainings, to be absorbed in “L” grade as J2 tech/J2
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 67

68. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
opts. On probation for six months. No needs to
sponsor by EE. Age relation of 3 years.
· ITI – to be engaged as IFFCO trainee for a
period of trainings on successful completion
trainings, to be absorbed in “L1” grade as J2 tech/J2
opts. On probation for six months. G2 subjects to
availability of vacancies.
· Charted accountant as FMT for one year
absorbed as AAO in gr. “G2” on probation for six
months.
· B.Com. / M.Com. To be included as trainees
for 1 year and on successful completion of trainings
to be absorbed as accountant asstt. “L1” (B.com) “L”
(M.Com) on probation for six months. G2 subjects to
availability of vacancies.
· MSW/MBA 2 year’s full time PG DIP. In PM.
May be included as trainee for one year on
successful completion of trainings may be absorbed
on asstt. In “J1” grade on probation for six month.
· STRATEGIC GROUP: - PGDBM for XLRI,
TISS, PG form Delhi school of economic, Indian
institutes of managements may be included as
trainee (by campus selection) for one year. They are
absorbed as H1 grade on probation for six months in
discipline e.g marketing, finance, HR, p&a, Tpt. etc.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 68

69. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 TRAINING AND DEVELOPMENT
New employee
a. Newly joined persons
·Apprentice
·Transferred form other units
·New recruited officers
They required making familiar with plant, culture,
instruments, rules & regulation administration, and work
environment.
b. Skill developments
It is done for the person who is directly recruited
from collage of study. So they just have bookish knowledge
into practical work training is given.
 Trainings for Existing employees
·They develop skill among employee for new expansion,
developments of firm, projects works, medication,
change in process etc.
·Redevelopments: it mean they are job of different
departments to a persons will go for instruments plants
etc. so this is the kind of redevelopments where the
person is being put in various departments. Purpose is
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 69

70. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
to make him perfects in every kind of activities. Which
makes him confident & would increase satisfaction & the
person does not get tier out his job.
·Job relation: They rotate the person in their own
departments like example in personal departments
person working in welfare will be transferred to transport
of industrial
relation (IR). IR will look for other departments like
administrative work. So this way they get knowledge of
every department.
a)Lectures/ seminars:
b)Motivation
c)Communication
d)Leadership qualities
e)Team buildings
f)Group behavior
g)Ethics
h)Positive work culture development
i)Meditation
j)Health, Safety
k)First Aid
l)Yoga – Pranayam
m)Stress Management
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 70

71. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 PERFORMANCE APPRAISAL
It is done on yearly bases. In March & April of every
year they make performance appraisal.
It is divided in two categories.
1)H1 & above – officers: They do their appraisal
system.
2)H2 & below – workers: They do not have self-
appraisal system.
H1 & above:
In this system they have been given questionnaires,
which they have to fill up, by themselves.
For every question there are five options:
Outstanding: Extra work other than
normal job done by Employee.
Very Good: They do their work timely,
perfectly or before time.
Good: They take help of some body for
initiate then do their work.
Fair: They just do their own work. No
extra work done by them.
Poor: They do not work at all.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 71

72. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
H2 & below:
Their superior or supervisor they have been given
questionnaires dose appraisal.

For every question there are five options:
 Outstanding: Extra work other than
normal job done by Employee.
Very Good: They do their work timely,
perfectly or before time.
Good: They take help of some body for
initiate then do their work.
Fair: They just do their own work. No
extra work done by them.
Poor: They do not work at all.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 72

73. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 PROMOTION
Competence to discharge the responsibility of each
job is the prime consideration for promotion to a post. The
judgment of the competence of an individual to discharge his
duties will be based on:
·Academic performance
·Experience in and outside
IFFCO
·Nature of experience
·Interview performance
·Quality of post performance
·His suitability for the senior
position post
·His potential for future
development
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 73

74. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
DEMOTION / TRANSFER

In case, the employee is awarded punishment his
disability period shall be extended by the following period:
a)demotion / reduction in post/grade/pay - 2 years
b)Withholding of increments with or without
cumulative effect - 1 year
Seniority of demoted employee shall be recorded from
the original date of entry in the demoted grade not from the
date of demotion.
Employee brings outside influence in the matter
pertaining to his/her service will be debarred from
consideration from promotion for a period of one year from the
date of his eligibility.
Employee refuses to accept promotion, with the change
in the place of posting, will be debarred for promotion for 2
years.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 74

75. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 LABOUR WELFARE SCHEME INPERF
IFFCO is a Multi State Cooperative Society
registered under Bombay Cooperative Societies Act (Act 7 of
1925) under Multi Unit Cooperative Societies Act 2002. Being
a Cooperative Society, the philosophy of the organization is
guided by the Cooperative principles for economic and social
betterment through self-help and mutual aid. IFFCO views its
human capital as a key source in achieving its vision of
becoming the global leader in fertilizer industry. In rapidly
changing business environment it has become even more
important to create a culture of high performance across the
organization, which can be achieved only with mutual care for
each other’s requirement. Apart from paying the best salary in
the fertilizer industry the Society has taken special care in
designing various needs of its human resource. The different
welfare schemes formulated by IFFCO are given herein below.
VARIOUS SCHEME
Medical assistance scheme
Housing facility
House building loan scheme
Conveyance advance scheme
Canteen
Iffco co-operative store
Transport facility
Education facilitys
Leave Travel Facility
Maternity facility
Cultural Activities
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 75

76. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Employees provident fund
Family pension scheme
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 76

77. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
IFFCO lends a helping hand to
earthquake victims of J&K
Indian Farmers Fertilizer Cooperative Limited (IFFCO), one of the significant players of
India’s agricultural development revolution and globally acclaimed largest fertilizer cooperative
has always been in the service of farmers and has catered to the needs and interests of the
Nation. IFFCO has always undertaken a host of developmental activities not as a part of its
‘Corporate Social Responsibility’, but as its ‘National Duty’. IFFCO was terribly shaken by the
worst ever earth quake which rocked Jammu & Kashmir region of India. IFFCO Kisan Sewa
Trust has donated 11600 woollen jerseys worth Rs 10 Lakh to provide relief and assistance to
the earthquake victims of Jammu & Kashmir. Expressing his sympathy at the loss of lives and
devastation caused by earthquake Mr. Surinder Kumar Jakhar, Chairman, IFFCO said that
IFFCO Kishan Sewa Trust has always stood by the farming community at the time of any any
natural calamity and now also it has extended and helping hand to earthquake vicitims. Mr. U S
Awasthi, Managing Director, IFFCO, said, “IFFCO has always been extending help hand at the
time of any natural calamity and this time also IFFCO will take all possible measures to reach
out to the grief – stricken”.
Whether it was giving a new home to the Gujarat earthquake victims or coming to the
rescue of the Tsunami – struck people, IFFCO has always tried to be a source of strength and
support in the face of calamity.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 77

78. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
 Cooperative Rural Development Trust
(CORDET)
IFFCO promoted Cooperative Rural Development Trust (CORDET) in the year 1979
to provide education and training to farmers on various aspects of crop production, horticulture,
animal husbandry, farm machinery etc.
Land for CORDET adjacent to Phulpur plant of IFFCO was made available by Motilal
Nehru Memorial Trust and CORDET has established Motilal Nehru Farmers Training Institute
at Phulpur. At CORDET, Phulpur the training programmes are of one-six week duration, while
at CORDET, Kalol training programmes of one-two weeks duration are held on different aspect
related to farm production. Besides facilities for seed production and soil testing with an annual
analysing capacity of 25000 soil samples are set up. IFFCO’s field staff collects the soil
samples and forward them for its analysis. Farmers are communicated the results and they are
encouraged to apply nutrients based on soil test. At CORDET, Phulpur a bio-fertilizer unit was
established in 1996-97 with an annual capacity of 75 MT of different strains. Bio-fertilizers are
sold through IFFCO’s Farmers Service Centres and Cooperative societies and also distributed
to the farmers as one of the component of CIP.
Development work at Kandla was started from July, 1999. Total area of the farm is 74
ha. CORDET, Nellore has undertaken its activities on 54 ha area. Fencing in some area has
been completed. Annual maintenance work was undertaken on plants such as eucalyplus,
coconut etc. Propagation of mother plants for orchard of mango, sapota, gauva, etc. have also
been done. The plants are progressing well. Under paddy cropping sequence, seed
multiplication programme was undertaken. Water harvesting tanks have been developed along
the slope of the farm and installed pump set to irrigate existing crops.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 78

79. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
CORDET AT IFFCO KALOL
The Cooperative Rural Development Trust (CORDET) is a Charitable Trust
registered under Indian Trust Act and at present having units at Phulput (Allabhad U.P.),
in 1982,Patia (Anjar, Kutch, Gujarat) and Nellore (Andhra Pradesh), Kalol (Mehsana-
Gujarat), The Trust is promoted by Indian Farmers Fertilizer Cooperative Limited, New
Delhi, to provide training, assistance, financial or otherwise to rural people and to conduct
research on Agriculture and related aspects. The broader aim of the Trust is to undertake
the integrated rural development programme for the benefit of farmers.
At Kalol Unit the following main activities are aimed out to fulfill the objectives of
CORDET on limited basis in view of finance and personnel available.
Soil Testing - to advise farmers regarding judicious use of fertilizer for crops
based on soil results.
Production and supply of Improved Seeds.
One Day /Three Days/ Weekly Training Campus to educate farmers and farm
women in modern agriculture technology , dairying, animal husbandry and home
science.
Rural Development Programme in the surrounding villages within the radius of
20 KMS.
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 79

80. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
INTEGRATED RURAL
DEVELOPMENT PROJECT
In the vicinity of IFFCO Kalol Unit, IFFCO has initiated a Rural Development
Project in a cluster of ten villages consisting of Dhanj, Jaspur, Tintoda, Dantali , Shertha ,
Arsodia, Ola , Saij, Tarapur and Palsana. The project envisages multi-dimensional
agricultural development of these villages. Other promotional programmes include field
demonstration, farmers meeting field day, crop seminars and special campaigns like soil
testing , seed treatment, plant protection etc. Welfare activities like education, child care ,
social forestry, medical and veterinary check-ups, tailoring, embroidery and fruits &
vegetables canning and preservation training programme conducted in the rural areas for
village women for the purpose of self-
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81. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
AFFORESTATION
PROGRAMME
In pursuance of the national priority CORDET Kalol has taken up road side
plantation work to conserve and maintain the ecological balance and pollution free
atmosphere. One Kilometer is covered and more than 10,000 trees are planted along the
State Highway passing through CORDET and IFFCO Establishments.
The programme was successfully implemented and monitored by CORDET. A
forest nursery with a capacity to raise 10,000 seedlings per year has started since 1996-
97 with an objective to distribute saplings to the surroundings farmers.
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82. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
IFFCO Kisan Sewa Trust (IKST)
IFFCO had always been in the forefront of activities for the rescue of victims of
natural calamities. Every year significant contributions, both monetary as well as in kind,
are made by IFFCO along with separate contributions by the employees.
The death and devastation caused by the massive Earthquake in Gujarat,
measuring 6.9 on Richter scale on Jan 26, 2001 followed by hundreds of tremors during
Jan-Feb, 2001, has shaken the conscience of the nation. IFFCO's Kalol and Kandla units
have launched large scale relief operations under the direct supervision of the Managing
Director, who rushed to Ahmedabad within hours of the news of earthquake. All the
personnel of IFFCO responded to the situation and devoted themselves during the next
few months for the relief of victims. Simultaneously, Kandla unit, which was partially
damaged was revived and production commenced within a short time.
The experience of Gujarat added a new dimension to the activities of IFFCO. In a
country like India, where natural calamities are a regular feature, it is necessary to be
prepared for such eventualities. In particular, the most vulnerable sections from rural parts
such as farmers require special attention. This has led to the creation of a Trust i.e. Kisan
Sewa Fund' which has been renamed as "IFFCO Kisan Sewa Trust"
ÞOBJECTIVE OF THE KISAN SEWA TRUST
A Relief Trust for the Welfare of the Victims of Natural Calamities
Kisan Sewa Trust Fund was created out of contributions from:
IFFCO
Employees of IFFCO
Cooperative Societies and others
TOTAL
Rs 100 million
Rs 10 million
Rs 90 million
Rs 200 million
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83. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Principal Focus Areas
The IFFCO Foundation has identified the following principal areas which need
immediate attention:
Cooperative Credit Development of PACS as financial intermediaries.
Credit and Insurance
Self-Help Groups and Micro Credit.
Strengthening of Urban Credit Structure including Urban Banking System;
Strengthening of Rural Credit Structure including Rural Banking System;
Linkage of Credit and Insurance, specially the Kisan Credit Cards.
Strengthening of PACS
Cooperative Development Centre/Cooperative resource Centre;
Developing PACS as Multipurpose Cooperative Societies;
Cooperative Marketing, Value-addition, Agro-processing;
Contract farming in Cooperative Sector;
Natural Resource Management, Environment and Cooperatives.
Appraisal and Monitoring of Cooperative Projects
Sugar Projects under Sugar Development Fund (SDF);
Projects of NCDC, NABARD, IDBI etc.
Women Cooperatives, Women Empowerment and Youth
Participation of Women in Cooperatives;
Women Empowerment;
Mainstreaming Youth and Disadvantaged in Cooperative System.
Human Resource Development and Training
Member Education on Cooperative Philosophy and Cooperative Principles;
Awareness on Trade Regimes, Standardisation etc.;
Development of Regional and International Cooperation;
Research, Publications and Public Relations;
Creation of Data Base on Cooperatives.
Cooperative Legislation and Policy
Suggesting Reforms in policy, legislative and administrative systems;
Developing Collaborative Strategies between Government and Cooperatives;
Civil Society, Good Governance, Code of Ethics in Cooperatives.
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84. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
IFFCO Chairs in Universities
In order to promote excellence in agricultural research and cooperative education
in the country, IFFCO has established Professors' Chairs in Agricultural Universities
and Cooperative Institutions. At present 16 Chairs are set up in different parts of the
country. IFFCO Professors' Conferences are held periodically and action plans are
discussed. The details of IFFCO Chairs are placed below :
Subject/Institution Location Set up in
I. Agronomy
Punjab Agricultural University Ludhiana August, 1980
Jawaharlal Nehru Krishi Vishwa VidalayaJabalpur (Indore
Campus)
January, 1982
Andhra Pradesh Agricultural UniversityHyderabad May, 1982
Chandra Shekhar Azad University of
Agriculture and Technology
Kanpur December, 1985
Tamilnadu Agricultural University Coimbatore December, 1985
Bidhan Chandra Krishi Vishwa VidyalayaNadia, West BengalApril, 1986
Sardar Vallabh Bhai Patel University of
Agriculture & Technology
Meerut, Uttar
Pradesh
September 2005
II. Soil Science
Gujarat Agricultural University Junagarh June, 1980
Govind Ballabh Pant University of Agriculture
and Technology
Pantnagar October, 1980
CCS Haryana Agriculture UniversityHisar March,1982
Orissa University of Agriculture &
Technology
Bhubaneshwar February, 1985
Rajasthan Agricultural University Bikaner, (Udaipur
Campus)
April, 1981
III. Extension and Cooperation
University of Agricultural ScienceBangalore August, 1980
Vaikunth Mehta National Institute of
Cooperative Management
Pune December,1981
IV. Agro Economics
Kerala Agricultural University Vellanikkara May, 1995
V. Fertilizer Technology
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85. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Banaras Hindu University Varanasi May, 1998
ENVIRONMENT
THE PRIME CONCERN
Harmonious living with the nature is the call for the day as environmental degradation
is sounding catastrophic alarms for all the living things on the earth. The message is crisp and
clear. Gifts of nature needs to be preserved for our well being and for the survival of our
progeny. This was and has remained the guiding principle of IFFCO. As a part of concern for
environment , a number of pollution control equipment and systems were installed alongwith
the main plant at the time of inception. Further, in keeping pace with the changing trends,
IFFCO have implemented new schemes and technology to combat pollution. Quality of liquid
effluent is continuously monitored before it is used for gardening within the plant as well as
for irrigation by the farmers of nearby villages. Flamingoes, the migratory birds with fiery
wings have found safe abode at solar evaporation lagoons during winter season. This conveys
the quality of Environment Management system at IFFCO-Kalol. Ambient air quality is also
monitored periodically at different locations of the factory premises. Green belt has been
developed in and around the plant to keep the environment clean and one can feel that
IFFCO-Kalol plant is in the garden.
ÞENVIRONMENTAL MANAGEMENT SYSTEM AT
IFFCO KALOL
IFFCO-Kalol unit has sound environment management system comprising of following
features:
Facilities for effluent treatment
Monitoring of environmental quality
·Monitoring of final liquid effluent
·Monitoring of Air/process emission
Implementation of waste minimisation / pollution abatement schemes
·Lagoon for strong effluent - Phase III & IV
·Diversion of Syn gas compressor interstage separator drain to ammonia water
tank in urea plant
·Condensation of condensate stripper vent gases
·Installation of ammonia scrubber to scrub vent scrubber off gases.
·Dust collection system in Urea storage Silo
·Disc oil skimmer
·Non-Chromate based cooling water treatment
·Dust Extraction System for B&MH Plant
Well equipped laboratory and EPC cell
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86. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Green belt development
ISO 14001 Accrediction both for plant and township
Farmer Service Centres
West Bengal
U.P.
Uttranchal
Rajasthan
Punjab
Orissa Closed wef 31.12.04
Maharashtra
Madhya Pradesh
H.P.
Haryana
Bihar
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87. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
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88. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
IFFCO Kalol develops an eco-friendly
township .

With the ongoing global campaign against pollution, the Kalol (Gujarat) -based unit
of the Indian Farmers Fertilizer Co-operative (IIFCO) has developed their township
as Eco-friendly Township. Right from the beginning, the main objective of IFFCO
Kalol is to minimize the pollution level and to reduce quantity of the effluent and
maintain the same below the limits prescribed by statutory bodies.

Various in-house modifications have been carried out to update the technology
for waste minimization. Implementing on this policy various environmental
measures are being undertaken but not limited to are provided below
:
·An in-house vermicomposting system, aimed at minimizing the hazards of
chemical fertilizers. Domestic waste is segregated into biodegradable and
non- biodegradable waste at the source of generation. The management
has provided specially designed dustbins to all residents of the township
marked as ‘biodegradable waste and non-biodegradable waste. The
biodegradable waste after partial decomposition is shifted to the vermibeds
wherein special species of earthworms are utilized for further treatment of
the waste. Composting is achieved through rotting, helped by addition of
cow dung, moisture and temperature control or product rich in Nitrogen,
Phosphorous, Potassium (NPK) is sieved and bagged and is made
available to the horticultural section for farming and gardening purpose
within the township and the plant.

·The unit has also evolved a mechanism to utilize rainwater to cope with
depletion of the groundwater and sinking water. The system is set up to
avoid air and land-based pollution for the conversion of 350 cubic meters
per day of domestic and garden waste into organic manure at the IFFCO
township.

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89. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
IFFCO's JV Indo-Egyptian Fertiliser
Company launched in Egypt
World' s premier fertiliser cooperative (IFFCO), in collaboration with EI Nasar
Mining company (ENMC) launhed Indo Egyptian Fertiliser Company (IEFC ) in
Egypt on 21st November, 2005 for setting up a state of the art Phosphoric Acid
Project in at an estimated capital cost of US$ 325 million . The Project will be
financed with the debt equity ratio of 70:30 . IFFCO is the major stakeholder
with 76 percent in its equity participation while the balance 24 per cent will be
held by ENMC.
Egypt's largest rock phosphate mining company will supply rock phosphate, the
basic raw material for the Project while IFFCO will buy back the entire
Phosphoric Acid thus produced for its DAP Plant at Kandla. After the first Board
Meeting of the Joint Venture Company in Cairo, Sh. U.S. Awasthi, Managing
Director, IFFCO, said that the necessary land for construction of the Project at
Edfu near the rock phosphate mines has been allotted by the Aswan Governorate
and the Project has been accorded Free Zone status by the general authority for
Investments and Free Zones, Egypt.
He disclosed that discussions with International Financial Institutions for
syndication of about US$ 220 million loan for the Project are in progress. He
further informed that with the commissioning of the Project scheduled in early
2009, IFFCO will have assured supply of about one million tonne bulk
Phosphoric Acid for its Kandla Plant.
Sh. U.S. Awasthi said that Sh. Surinder Kumar Jakhar, Chairman of IFFCO has
also been elected Chairman of Indo Egyptian Fertiliser Company
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90. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
Share Holders Agreement for
IFFCO- Chhattisgarh Power Ltd.
(ICPL)
Share Holders Agreement was singed between fertilizer giant, Indian Farmers
Fertilizer Co-operative Limited ( IFFCO) and Chhattisgarh State Electricity Board
(CSEB) paving way for the incorporation of a Joint Venture Company named IFFCO
Chhattisgarh Power Ltd. (ICPL). Agreement to this effect was signed by Shri U S
Awasthi, Managing Director, IFFCO and Shri Rajib Ranjan, Chairman, CSEB, on 3rd
Nov. 2005 at New Delhi. Earlier IFFCO had signed an MoU with Government of
Chhattisgarh and Chhattisgarh State Electricity Board (CSEB) for setting up a Mega
Power Project of 1000 MW in District Sarguja, Chhattisgarh.
Revealing details of the project Shri U S Awasthi, Managing Director, IFFCO &
Shri Rajib Ranjan,Chairman, CSEB said that the estimated cost of the Power Project will
be Rs. 4,500 Crores & the project financing will be on 70: 30 Debt- Equity pattern.
IFFCO and CSEB will share the equity in the ratio of 74% and 26% respectively. The
financial closure of the project is targeted to be achieved by December 2006. The project
will start generating power from year 2010. CSEB will off-take up to ninety percent of
power generated from the project. It is worth mentioning here that it is a pit head Thermal
Power Project which shall provide livelihood opportunities to the people of under
developed area of District Sarguja, Chhattisgarh
Shri U S Awasthi, MD IFFCO further added that IFFCO, under its expansion
programme VISION 2010, has decided to make a foray in the field of power so as to
provide another important input- Electricity to the farmers, apart from fertilizer & seeds.
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91. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
OMAN PROJECT
With the Oman India fertiliser project attaining financial
closure and being expected to be completed by 2005, both the
countries are now looking forward to setting up similar joint
ventures. OER reports
The Oman-India fertiliser project, which was first conceived in
1993, appears to be finally taking off with the project attaining financial
closure. The US$969-million fertiliser is a joint venture (JV) between
the government of Oman and Indian cooperative enterprises, Krishak
Bharati Cooperative Limited (Kribhco) and Indian Farmers Fertlisers
Cooperative .The project, christened as Oman India
Fertiliser Company (Omifco), is expected to be up and running by
March 2005.
In the US$316.5 million equity of the JV, Oman Oil Company, a
100-per cent closed joint-stock company owned by the government of
Oman, holds 50 per cent, while Kribhco and Iffco have 25 per cent
stake each. The plant will be operated and maintained by Omifco, while
technical and managerial services, and personnel will be provided by
the Indian partners.
Omifco has finalised agreements with the government of Oman for the
supply of natural gas, which will be the feedstock for the fertiliser
plant. It has also signed an agreement with the government of India
for the guaranteed offtake of urea and with Iffco for offtake of
ammonia.
The Oman-India fertiliser project is of great significance for both
the countries, economically as well as politically. Economically, it was
important to get the project off the ground as India is unable to meet
its gas and energy requirements. Politically, it would be a boost to the
bilateral relationship between India and Oman, which suffered minor
setbacks recently due to the Dabhol fiasco and the problems related to
Bharat Petroleum's Bina Refinery.
After the Dabhol Power Company (DPC) in India's Maharashtra
suspended power production following a rate dispute with the state
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92. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
electricity board, the gas imports from Oman for the Dabhol plant were
put on hold. As for the Bina refinery, Oman was to play a major
rolewith an equity stake, which is now a closed chapter looking
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93. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
IFFCO TOKIO
We see ourselves as a "people's company"; our principal aim is to
provide benefits for the common man who traditionally lacks
knowledge and access to quality insurance products. To achieve this,
we have leveraged the deep knowledge of IFFCO by studying 600 of
the country's 602 districts before drawing up our business plan.
We closely follow the rigorous global financial standards of the
Millea group, combining sound financial management with rapid
growth. ITGI is the only private general insurance company in India to
have made five consecutive years of profit. We are also one of the few
to report underwriting profits within four years of operations.
We also believe in focusing on creative solutions to provide
optimum service to our customers. We are the only company in the
country to have a 100%-owned distribution channel to service our
retail customers. Called IFFCO-TOKIO Insurance Services Ltd (ITIS),
this subsidiary has 273 employees and is present in 68 cities. ITIS is an
example of an indigenously developed best practice that will be
replicated in other Millea Asia subsidiaries.
Innovation has also played a significant part in making us a
dynamic industry leader both in India and globally. We are the first
company in India to underwrite mega policies for a fertilizer and an
automobile client. This comprehensive policy is based on international
rates and optimizes the premium outflow for clients even as it offers a
one-stop, all-risk cover.
OUR PERFORMANCE
Profitable growth: Our commitment to innovation and customer
service has helped us consistently raise the bar on our performance.
We strongly believe in profitable growth: Our rapidly reducing Earned
Income Loss Ratio (EILR) is testimony to this
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94. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
ITGI's sound financial management has been achieved in a period of
fast-paced growth. Our gross written premium (GWP) has grown from
Rs 58 million in 2000-01 to Rs 5 billion in 2004-05. Policy issuance
growth has jumped more than 20 times between 2002 and 2004.
We have also consistently demonstrated our commitment to
shareholder value: return on equity for 2004-05 was 14.72%, up from
9.58% the year before. Our unqualified audit reports reflect the
rigorous, global standards of accounting.
ITGI voluntarily maintains strong institutional checks and balances. An
investment committee of board members and senior executives
scrutinizes all major investment decisions. An in-house audit
committee audits all the branches and suggests ways to improve their
functioning. Finally, there is an executive committee of senior
management that monitors policy decisions. All these have ensured
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95. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
that ITGI has established a reputation for the highest standards of
corporate governance.
'Customized' satisfaction:
Our bi-annual customer satisfaction surveys - another unique
feature at ITGI -- indicates the speed and fairness in handling policy-
holders' claims. This is backed by robust IT infrastructure that is robust
enough to handle large volume of more than 3,00,000 documents. All
ITGI's branches and distributors are networked. This not only enables a
detailed and accurate analysis of the company's performance based on
specific parameters, the web-based claim response system has enabled
the speedy settlement of claims, achieving a 90% claim settlement
ratio.

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96. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
CONCLUSION
In the conclusion of this report, I can say that if it has very best opportunities for development
on ethical basis it has wide scope for development
The company has to improve its product to survive in the market . though at present , the
company is earning reasonable profit’ in future , it has a wide scope for development.
During my visit I found that company has adopted the policy of ethical business . So this type
of company are needed for the development of the country.
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97. V.M./PATEL COLLEGE OF MANAGEMENT STUDIES
BIBLIOGRAPHY
I have completed my report with the help of Mr .Vipul Sir and Mr Maulik Sir and my
Brother Bhavesh prajapati.
Iffco magazine
Iffco webside
Iffco kalol branch
Iffco reference Book
Times of India
V.M./PATEL COLLEGE OF MANAGEMENT STUDIES 97