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TRANSCRIPT
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Part IAbout the Organization
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IFFCO A ROLE MODEL
The Honorable former President of India during his address to the nation on the eve of Indias
60th Independence day on August 15, 2006, has emphasized IFFCO as a role model for
Agriculturists and Farming Communities. He quoted IFFCO as a model to be emulated in
path to Economic Development towards Vision 2020.
Our private sector has also made significant progress in food processing industries, whereas
there is a need for Rural Farmers Cooperative in partnership with banking institutions, on
the pattern of the IndianFarmers Fertilizer Cooperative Limited.
Dr . A.P.J. Abdul Kalam
Dr. A.P.J. Abdul Kalam
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COMPANY PROFILE
Indian Farmers Fertilizer cooperative Ltd. Popularly known as IFFCO, a pioneering venture
in cooperative in India. Set up in 1967, IFFCO has registered tremendous growth in status and
strength and blossomed as the largest manufacture and marketer of fertilizers as a cooperative
Society in the country. After expanding its project at Aonla, Phulpur an Kalol, IFFCO is now
engaged in VISION-2025 for its further growth and development, with special focus on
strengthening agricultural cooperative and diversification into services and infrastructure
segments of the economy.
During mid sixties the co-operative sector in India was responsible for distribution of 70% of
fertilizers consumed in the country. This sector had adequate infrastructure to distribute
fertilizers but had no production facilities of its own and hence dependent on public/private
sectors for supplies. To overcome this lacuna and to bridge the demand supply gap in the
country, a new cooperative society was conceived to specifically cater to the requirements of
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farmers. It was an unique venture in which the farmers of the country through their own
cooperative societies created this new institution to safeguard their interest. The numbers of
cooperative societies associated with IFFCO have risen from 57 in 1967 to 39564 at present.
Indian Farmers Fertilizers Cooperative Limited (IFFCO) was registered on November 3, 1967
as a Multi-unit Co-operative Society. On the enactment of the Multistage Cooperative
Societies act 1984 & 2002, the society is deemed to be registered as a Multistate Cooperative
Society. The society is primarily engaged in production and distribution of fertilizers. The
byelaws of the society provide a broad frame work for the activities of IFFCO as a
Cooperative Society.
IFFCO commissioned an ammonia urea complex at Kalol and the NPK/DAP plant at
Kandla both in the state of Gujarat in 1975. Another ammonia urea complex was set up at
Phulpur in the state of Uttar Pradesh in 1981. The ammonia urea unit at Aonla was
commissioned in 1988.
In 1993, IFFCO had drawn up a major expansion plan programme of all the four plants under
overall aegis of IFFCO Vision 2000. The expansion projects at Aonla, Kalol, Phulpur and
Kandla have been completed on schedule. Thus all the projects conceived as part of Vision
2000 have been realized without time or cost overruns. All the production units of IFFCO
have established a reputation for excellence and quality. A new growth path has been chalked
out to realize newer dreams and greater heights through Vision 2010 which is presently under
implementation. As a part of the new vision, IFFCO has acquired fertilizer unit at Paradeep in
Orissa in September 2005. As a result of these expansion projects and acquisition, IFFCOs
annual capacity has been increased to 3.69 million tones of Urea and NPK/DAP equivalent to
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1.71 million tones of P2O5. IFFCO has made strategic investments in several joint ventures.
Godavari Fertilizers and Chemical ltd. (GFCL) & Indian Potash Ltd. (IPL) in India, Industries
Chimiques du Senegal (ICS) in Senegal and Oman India Fertilizer Company (OMIFCO) in
Oman are important fertilizer joint ventures. Indo Egyptian Fertilizer Co (IEFC) in Egypt is
under implementation. As part of Strategic diversification, IFFCO has entered into several
key sectors, IFFCOTOKIO General Insurance Ltd. (ITGI) is a foray into general insurance
sector. Through ITGI, IFFCO has formulated new services of benefits to farmers. Sankat
Haran Bima Yojana provides free insurance cover to farmers along with each bag of IFFCO
fertilizers purchased. To take the benefits of emerging concepts like agricultural commodity
trading, IFFCO has taken equity in National Commodity and Derivative Exchange (NCDEX)
and National Collateral Management Services Ltd (NCMSL). IFFCO Chattisgarh Power Ltd
( ICPL) which is under implementation yet another foray to move into core area of power.
IFFCO is also behind several other companies with the sole intention of benefiting farmers.
At IFFCO, the thirst for ever improving the services and member cooperatives 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 prime mission. All that
IFFCO cherishes in exchange is an everlasting smile on the face of Indian farmer who from
the moving spirit behind this mission.
IFFCO has promoted several institutions and Organizations to work for the welfare of
farmers, strengthening cooperative movement, improve Indian agriculture. Indian Farm
Forestry Development Cooperative Ltd. (IFFDC), Cooperative Rural Development Trust
(CORDET), IFFCO foundation, Kisan Sewa Trust belong to this category.
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Commitment to Better Environment & Quality Management:
All IFFCO Units and townships have attractive landscape surrounded by
thousands of trees.
IFFCO is committed to improve safety, health and environment in and around our
plants in line with international norms.
Kalol, Phulpur, Aonla and Kandla Units hold ISO-14001 Certificate for
Environment Management System.
Kalol, Phulpur and Aonla Units have received ISO-9001 for Quality Management.
Corporate social responsibilities:
Corporate Social Responsibility is our commitment towards sustainable economic
development, working with employees and their families, the local community and
society at large to improve their quality of life.
Society has undertaken activities in the areas of community development, environment
protection and horticulture, health care/medical facilities and literacy
enhancement/empowerment programme.
IFFCO spent Rs. 49 crore on various social development activities during 2008-09
against Rs. 33 crore during 2007-08.
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Service to farmers:
Agricultural Extension and fertiliser use promotion programmes are an integral part of the
marketing activity. Programmes are conducted through Area/State/Zonal offices under the
guidance of agricultural scientists.
Programmes undertaken are :
Balanced Fertilisation programmes
Adoption of villages for all round socio-economic
development
Farmers visit to various agricultural institutes and research farms
Farmers Meetings, Field Days and Crop Seminars
Static/Mobile Soil Testing Laboratories with Audio-visual aids
Cooperative rural development trust(CORDET):
Locations :
Kalol (gujarat)
phulpur (u.p.)
kandla (gujarat)
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Activities of CORDET
Farmers training
Soil testing
Bio fertiliser production
Demonstration farming
Seed multiplication
INFORMATION AND COMMUNICATION TECHNOLOGY:
Wide Area Network (WAN) upto Area Office level with Corporate Server at Delhi.
Virtual Private Network (VPN) connecting all Offices of IFFCO.
IP Telephones available upto Area Office. Many phones have video facility.
Among first Corporate to successfully implement e-procurement based on Public Key
Infrastructure, Digital Certificate under legal framework of IT ACT 2000.
Integrated Corporate enterprise wide Applications in all Areas like HR, Finance,
Marketing, Transportation, Materials, Maintenance, Production etc.
Benefit of Pre-audit annual accounts by 1stweek of April every year for the last five
years.
Server consolidated at Head Office and disaster recovery system set up at Kalol.
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An Information Network of IFFCO
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DIVERSIFICATION AND JOINT VENTURES:
Industries Chimiques Du Senegal (ICS) :
ICS successfully restructured by IFFCO Consortium
IFFCO Consortium has taken over management control of ICS Senegal
Major rehabilitation work of ICS plant facilities and Rock phosphate mines for
improving the production performance has been taken up to achieve full capacity
utilisation
ICS exported 1.9 LMT of P2O5to IFFCO during the year 2008
IFFCO-TOKIO GENERAL INSURANCE CO. LTD. (ITGI):
Diversified into General Insurance due to
Tremendous potential available
To serve the insurance needs of farmers
IFFCOs Rural Brand Equity
Low gestation period
The scope includes a mix of following:
Rural Insurance Business
Fire Insurance Business
Marine Insurance Business
Miscellaneous Insurance Business
Operations began in Dec. 2000
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SANKAT HARAN BIMA YOJANA BY ITGI:
Linked with purchase of each bag of IFFCO/IPL fertiliser from Cooperative
Society/FSC.
Maximum liability limited to Rs. 1 lakh irrespective of the number of bags purchased.
Cash receipt is evidence of insurance cover .
Policy provided insurance cover to 63.93 lakh farmers.
8484 claims to the tune of Rs. 44.34 crore have been disbursed since October 2001.
INSURANCE PRODUCTS OF ITGI:
Apart from meeting general insurance requirements of rural area like policies for Home,
Shops, Tractors, two Wheelers etc., ITGI has also launched :
Barish Bima Yojna
Mausam Bima Yojna
Kisan Suvidha Bima Yojna
Mahila Suraksha Bima Yojna
Janta Bima Yojna
Jansuraksha Bima Yojana
Janswasthaya Bima Yojana
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OMAN INDIA FERTILISER PROJECT (OMIFCO):
Grassroots Ammonia/Urea complex has been set up at Qalhat near Sur, Oman at a
project cost of USD 892 million.
Commercial production started from July 14, 2005.
The project comprises two Ammonia and two Urea plants of 2x1750 MTPD and
2x2530 MTPD respectively. Installed capacity of 16.52 lakh MT of Urea per annum.
Entire production of Urea is being purchased by GOI under Urea Offtake Agreement.
Surplus Ammonia being purchased by IFFCO.
OMIFCO produced 1.952 million MT of Urea and 0.199 million MT of surplus
Ammonia during the year 2008 and earned USD 237 million as Profit After Tax.
IFFCO CHHATTISGARH POWER LTD. (ICPL):
IFFCO has entered the power sector by incorporating a joint venture company named
IFFCO Chhattisgarh Power Limited (ICPL) with Chhattisgarh State Electricity
Board (CSEB) on January 25, 2006 to set up a 1320 MW coal based Mega Power
Plant based on supercritical technology at an estimated cost of Rs. 7500 Crore.
The project is envisaged to be financed with debt : equity ratio of 70:30.
The State Government has allocated Tara Coal Block for the ICPL project.
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IFFCO KISAN SANCHAR LTD. (IKSL):
IKSL was incorporated in April 2007 with objective to use Information
Communication Technology to empower farmers in rural India and to strengthen the
cooperative network in the country.
IKSL received the certificate of Incorporation on 12.04.2007 and certificate for
commencement of Business on 13.06.2007.
As on 31.03.2009, paid up share capital of IKSL was Rs. 5 crore, in which IFFCO
held an investment of Rs. 3.65 crore with equity share holding of 72.99%.
IKSL has grown beyond its pilot stage and immerged as a key player in rural telecom
retailing services in the country
IKSL has commenced full fledged activities in 18 states
Subscriber base of IKSL reached around 1495000
About 22000 cooperative societies have adopted this channel as a diversification
option
IKSL sold talktime worth Rs. 76 crore, 2 Lakh mobile handsets and about 1.1 lakh
freeplay energy products with turnover of about Rs. 120 crore during 2008-09
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JORDAN INDIA FERTILISER COMPANY (JIFCO):
IFFCO and Jordan Phosphates Mines Company Ltd. (JPMC) have formed a limited liability
Joint Venture Company by the name of Jordan India Fertiliser Company (JIFCO) on March 6,
2008 to set up a Phosphoric Acid Plant of capacity 1500 MT of P 2O5per day at Eshidiya with
Project cost of US $ 580 million.
IFFCO and JPMC will hold equity in ratio of 52% and 48%, respectively. JPMC will make
available the required quantity of Rock Phosphate for the project.
International Finance Corporation has been appointed Lead Financial Arranger-cum/Advisor
for the project.
KISAN INTERNATIONAL TRADING FZE (KIT):
KIT has been set up by IFFCO as a wholly owned subsidiary of IFFCO in Dubai in
April 2005.
KIT has become a leading international organisation to handle Import and Export of
fertilisers and fertiliser raw materials and intermediates.
KIT is also catering to requirement of imported Urea, DAP, MAP for various
customers in India.
During 2007-08, KIT achieved turnover of USD 570 million with profit of USD 26
million. KIT paid interim Dividend of Rs. 28 crore to IFFCO for the year 2008-09.
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NATIONAL COMMODITY AND DERIVATIVE EXCHANGE (NCDEX):
NCDEX is one of the four licences / exchanges set up nation wide for On Line Trading in
commodity futures. Agricultural produce occupies a quarter of commodity basket.
IFFCO holds 12% equity stake in NCDEX with an objective of empowering farming
community and Cooperative Societies and for giving better return on their crop
produce.
NCDEX is the leading exchange promoted by NABARD, NSE, LIC, CRISIL and
IFFCO. Other major shareholders are PNB, ICICI Bank, Canara Bank and Goldman
Sachs.
There were 845 Trading and Clearing Members and over 19000 trading terminals as
on March 31, 2009.
Commodities traded on the Exchange stood at 56 comprising of 42 agricultural
products, 2 energy, 6 metals, 2 bullion, 3 pollymers and 1 carbon credit as on March
31, 2009.
Total income during 2007-08 was Rs. 96 crore. NCDEX earned Rs. 8.76 crore as
profit after tax.
IFFCO received Dividend of Rs. 18 lakh from NCDEX during 2008-09.
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IFFCO KISAN BAZAR LTD. (IKBL):
IFFCO Kisan Bazar Ltd. was incorporated on 26.02.2004 with the objective to undertake
business in agri-input and consumer goods for the benefit of farmers and cooperatives.
IKBL invested Rs. 13.40 crore to acquire 90 % shareholding in Baylis Generators
Ltd. which holds patents to convert mechanical energy into electrical energy.
Freeplay Energy India Ltd. is utilising these patents for development of products
being sold by IKSL.
IFFCO KISAN SEZ (IKSEZ):
IFFCO is developing a multi-product KISAN Special Economic Zone (IKSEZ) at Nellore -
first of its kind with farmers Cooperatives as stakeholders.
The foundation stone was laid on 21.03.2008 by Dr. Y.S. Rajasekhara Reddy, Honble
Chief Minister of Andhra Pradesh.
The SEZ is having 1023 hectares (2527 acre) of land owned by IFFCO.
The investors have expresse a keen interest to participate in IKSEZ project during 1 st
invester road show arranged at Nellore during November 2008.
The Project will be developed in 4 Phases, 1stPhase is expected to be completed by
2011. The site is located on NH-5 (Howrah-Chennai Highway) and is close to
Krishnapatnam port .
The project will consist of farmer friendly facilities like Logistics Zone with State-of-
the-art Warehousing facilities, Cold Storage, Food Processing zone.
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IFFCO PLANTS :
IFFCO MARKETING NETWORK:
Plants LocationCommissioned
inExpanded in
Annual Production Capacity(in Thousand MT)
Kalol Gujarat 1975 1997 Urea 545
Kandla Gujarat 19751981 &1999
DAP/NPK (inbulk)
2415
Phulpur U.P. 19811997 &2008
Urea 1698
Aonla U.P. 19881996 &2008
Urea 2000
Paradeep OrissaAcquired inOctober05
-DAP/NPK (in
bulk)1920
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History of IFFCO
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BRIEF HISTORY OF IFFCO
During mid sixties the co-operative sector in India was responsible for distribution of 70% of
fertilizers consumed in the country. This sector had adequate infrastructure to distribute
fertilizers but had no production facilities of its own and hence dependent on public/private
sectors for supplies. To overcome this lacuna and to bridge the demand supply gap in the
country, a new cooperative society was conceived to specifically cater to the requirements of
farmers. It was an unique venture in which the farmers of the country through their own
cooperative societies created this new institution to safeguard their interest. The numbers of
cooperative societies associated with IFFCO have risen from 57 in 1967 to 39564 at present.
IFFCO LANDMARKS
Year 1996An idea that Cooperatives should have their own fertilizer manufacturing
facility
Sep-Nov 1966 US AID Survey Team ( Howard Gordon Team visited India
April 1967 Visit of high powered American Fertilizer Cooperative Team.
31-Aug-1967 Meeting of IFCCOs Promoters
13-Oct-1967 Letter of Intent issued by Government of India
11-Apr-1968 First Board of Directors Meeting
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10-july-1968 IFFCOCIF Cooperation Agreement
Year 1970 Commencement of seeding programme
16-Jan-1974Foundation stone of Phulpur plant laid by late Mrs. Indira Gandhi, former
Prime Minister
8-Nov-1974Dedication of Kalol plant to the farmers of nation by late Mrs. Indira Gandhi,
former Prime Minister
28-Nov-1974 Commissioning of Kandla Plant (Phase I)
31-Jan-1975 Commissioning of Kalol Plant
15-Oct-1980 Commissioning of Phulpur Plant
4-June-1981 Commissioning of Kandla Plant (Phase II)
15-Apr-1983 Beginning of Jawaharlal Nehru Memorial IFFCO lecture on Cooperation
9-July-1983Inauguration of Fertilizer Marketing Development Institute (FMDI), Gurgaon
by Former Union Agriculter Minister Mr. Birendra Singh
18-May-1988 Commissioning of Anola Plant (stream I )
30-June-1988 Commissioning of Anola Plant (stream II )
17-May-1989 Dedication of Anola Plant by late Mr. Rajiv Gandhi, Former Prime Minister
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Organization Structure of IFFCO
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BOARD OF DIRECTORS
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IFFCO EXECUTIVES
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MARKETING DEPARTMENT
MARKETINGCENTRAL
OFFICE
NORTH CENTRAL
ZONE
(LUCKNOW)
UP,BIHAR
JHARKHAND,
UTTARANCHAL
NORTH ZONE
(CHANDIGARH)
PUN, HAR,
RAJ, J&K,
HP, DELHI
SOUTH ZONE
(BANGALORE)
AP, TN,KAR,
KERALA
PONDICERRY
WEST ZONE
(BHOPAL)
GUJ, MP,
MAH, GOA
CHHATTISGARH
EAST ZONE(KOLKATA)
ASSAM, ORISSA,
W.B.
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OVERALL ORGANIZATIONAL HIRARCHY
IFFCO HEADOFFICE
Managing
Director
Board of
DirectorsExecutives
Chairman
Marketing Director
Sr. General Manager
Zonal Manager
State Mktg. Manager
Area Manager
Dpt. Manager
Field Officer
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Strategic Intent of IFFCO
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STRATEGIC INTENT OF IFFCO
VISION:
To augment the incremental incomes of farmers by helping them to increase their crop
productivity through balanced use of energy efficient fertilisers; maintain the environmental
health; and to make cooperative societies economically and democratically strong for
professionalised services to the farming community to ensure an empowered rural India.
MISSION:
To provide to farmers high quality fertilisers in right time and in adequate quantities
with an objective to increase crop productivity.
To make plants energy efficient and continually review various schemes to conserve
energy.
Commitment to health, safety, environment and forestry development to enrich the
quality of community life.
Commitment to social responsibilities for a strong social fabric.
To institutionalise core values and create a culture of team building, empowerment
and innovation which would help in incremental growth of employees and enable
achievement of strategic objectives.
Foster a culture of trust, openness and mutual concern to make working a stimulating
and challenging experience for stakeholders.
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Building a value driven organisation with an improved and responsive customer focus.
A true commitment to transparency, accountability and integrity in principle and
practice.
To acquire, assimilate and adopt reliable, efficient and cost effective technologies.
Sourcing raw materials for production of phosphatic fertilisers at economical cost by
entering into Joint Ventures outside India.
To ensure growth in core and non-core sectors.
A true cooperative society committed for fostering cooperative movement in the
country. Emerging as dynamic organisation, focussing on strategic strengths, seizing
opportunities for generating and building upon past success, enhancing earnings to
maximise the shareholders value.
VISION 2010 :
The Society had embarked upon to achieve annual turnover of Rs. 15,000 crore by the
year 2010. This landmark has been met during 2008-09 by achieving turnover of Rs.
32933 crore.
Society is exploring avenues for diversification into other profitable business areas,
apart from fertiliser sector, for sustained growth and adequate return to member
shareholders.
Vision 2010 would mainly focus on farmer oriented schemes and strengthening of
cooperative infrastructure.
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Products Of IFFCO
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IFFCO PRODUCT PROFIEL
Introduction :-
IFFCO product range initially included three NPK grades viz. 10:26:26, 12:32:16 and
14:34:12 and Urea. The NPK grades are DAP based and are produced by adding MOP
while DAP is still in the slurry stage. The grades were new introduction to Indian
fertilizers market, however these were suitable for basal application to different soil
type having varying degree of soil K status as these grades had P 2O5 ratio of 1:1, 2:1
and 3:1. The test marketing of these grades started in the seeding performance itself.
Initially the material was imported from the USA. Later on only two grades of NPK
10:26:26 and 12:32:16 were produced at Kandala. A shift product range was
introduced in 1981-82 with the production of small quantity of DAP so that the areas
with high soil K do not unnecessarily apply K though NPK material.
COMPLEX GREADE FERTILIZERS:
The present product range of NPK complex from Kandla is quite among the Farmers.
IFFCO NPK grades are high analysis materials. Once it was thought that IFFCO
should consider to produce grades like 17:17:17 or 20:20:20 where the per bag price is
low if compared to IFFCO NP, NPK grades, However, this idea was not accepted
because it was decided that the cost of nutrients rather than the price of bags loads
should be taken into account. Consequently, IFFCO continues to produce the existing
grade.
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UREA :
About Urea:
Urea is the most important nitrogenous fertiliser 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.
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.
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Specification of urea as per Fertiliser Control Order
1. Moisture % by weight, maximum 1.0
2. Total N % by weight (on dry basis)
minimum
46.0
3. Biuret % by weight, maximum 1.5
4. Particle size 90% of the material shall pass through 2.8mm 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
fertiliser urea with respect to seed can eliminate this difficulty.
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NPK/DAP:
About NPK/DAP
Diammonium.Phosphate
It is the most popular phosphatic fertiliser because of its high analysis and good physical
properties. The composition of pure salt of DAP is N-21.19% and P205 -53.76%. Fertiliser
grade..DAP..is..18:46:0.
NPK..Complex..Grades
NPK complex fertilisers 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.
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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.
Specifications of DAP/NPK complex as per
Fertiliser Control Order
DAP NPK-
10:26:26
NPK-
12:32:16
1. Moisture % by weight, maximum 1.5 1.0 1.0
2. Total N % by weight, minimum 18.0 10.0 12.0
3. Ammoniacal N % by weight, minimum 15.5 7.0 9.0
4. N in the form of urea, % by weight, maximum 2.5 3.0 3.0
5. Neutral ammonium citrate soluble phosphates
(as P2O5) % by weight, minimum
46.0 26.0 32.0
6. Water soluble phosphates (as P2O5) % by
weight, minimum
41.0 22.1 27.2
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7. Water soluble potash (as K2O) % by weight,
minimum
-- 26.0 16.0
8. Particle size 90% of the material will be between 1
mm and 4 mm IS sieve and not morethan 5% will be below 1 mm size.
Typical composition of DAP/NPK complex
grades (by weight)
DAP NPK-
10:26:26
NPK-
12:32:16
1. Moisture 0.90 0.88 0.85
2. Diammonium phosphate 87.53 50.04 62.68
3. Muriate of Potash -- 43.98 26.88
4. Urea 3.09 1.50 1.63
5. Filler (silica sand) 8.48 3.60 7.96
Secondary/micro nutrients DAP NPK-
10:26:26
NPK-
12:32:16
1. Sulphur as S 0.48 0.88 0.66
2. Iron as Fe 0.31 0.40 0.25
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3. Aluminium as AI 0.32 0.52 0.18
4. Calcium as Ca 0.12 0.11 0.09
5. Magnesium as Mg 0.26 0.34 0.31
6. Zinc as Zn (ppm) 103 98 88
7. Copper as Cu 55 32 27
Atomic..weight
C=12, H=1, O=16, N=14, P=31, K=39, Ca=40, S=32, C1=35.
Conversion..factors
P to P205 = 2.29; P205 to P = 0.44
K to K20 = 1.2; K20 to K= 0.83
PRODUCTNP:
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Ammonium Phosphate Sulphate (20-20-0-13)
1. Moisture % by weight, maximum 1.0
2. Total Nitrogen, per cent by weight, minimum 20.0
3. Ammoniacal Nitrogen, per cent by weight,
minimum
18.0
4. Nitrogen in the form of urea, per cent by
weight, maximum
2.0
5. Neutral Ammonium Citrate soluble
Phosphates(as P205), per cent by weight,
minimum
20.0
6. Water soluble phosphates (as P2O5), per cent
by weight, minimum
17.0
7. Particle size Not less than 90 per cent of the material
shall pass through 4 mm IS sieve and
shall be retained on 1 mm IS sieve. Not
more than 5 per cent shall be below 1
mm IS sieve.
8. Sulphur (as S), per cent by weight minimum 13.0
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LIQUID FERTILIZERS:
IFFCO is giving serious consideration to the production of the liquid fertilizers in order to
meet the demand of the farmer who practice drip irrigation. Ammonium polyphosphate holds
good promise in this direction, its cause of production, marketing, transportation and
packaging problem are being studied.
BIO FERTILIZERS:
A biofertiliser 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.
Phosphate Solubilising
Micro Organism
Several soil bacteria and fungi possess the
ability to bring insoluble phosphates into
soluble forms by secreting organic acids.
They can be applied to and recommended
for all crops
Rhizobium - It is the most important nitrogen
fixing organism. It live symbiotically in the root
nodules of leguminous plants and supply
nitrogen to the plant through nitrogen fixation.
Besides, supplying nitrogen to the crop,
nitrogen fixed by legume - Rhizobia association
would also leave residual nitrogen for the
succeeding crops. The beneficiary crops are
Groundnut, Soybean, Red-gram, Green-gram,
Black-gram, Lentil, Cow pea, Bengal-gram and
Fodder legumes.
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Azotobacter - It is non symbiotic nitrogen
fixing bacteria recommended for non
leguminous crops like Paddy, Wheat,
Millets, Cotton, Tomato, Cabbage, Mustard,
Safflower and Sunflower. The Azotobacter
performs well if the soil organic matter
content is high.
Acetobacter
It is a symbiotic bacteria
capable of fixing
atmospheric nitrogen by
living within the sugar plant.
They are found in all parts of plant body. It is
suitable for sugarcane cultivation.
Azospirillium - It is an associative
microaerophilic nitrogen fixer is commonly
found in association with the roots of cereals
and forage grasses. The beneficiary crop
include Sugarcane, Vegetables, Maize, Pearl
millet, Rice, Wheat, Fodders and Oil seeds.
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PRODUCT BAGGIES :
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Performance of IFFCO
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IFFCO PERFORMANCE
Provisional highlights of IFFCO performance during 2008-09
Highest Production of Fertilisers
(Previous Best 70.12 lakh MT in 2006-07)
71.68 lakh MT
Highest Production of Urea
(Previous Best 39.63 lakh MT in 2007-08)
40.68 lakh MT
Production of NPK/DAP/NP
(Best 32.26 lakh MT in 2006-07)
31.00 lakh MT
Highest Sales of Fertilisers
(Previous best 93.24 lakh MT in 2007-08)
112.58 lakh MT
Highest Sales of Urea
(Previous best 54.29 lakh MT in 2007-08)
58.69 lakh MT
Highest Sales of NPK/DAP
(Previous best 38.95 lakh MT in 2007-08)
53.89 lakh MT
Profit Before Tax
(Best PBT 807.1 crore in 2002-03)
Rs.441.95 crore
Profit After Tax
(Best PAT 557.2 crore in 2002-03)
Rs.360.01 crore
Highest Turnover
(Previous best Rs.12163 crore in 2007-08)
Rs 32933 crore
Plant Productivity
(Best 1669 MT in 2005-06)
1376 MT per employee
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Highest Marketing Productivity
(Previous best 6158 MT in 2007-08)
7397 MT per employee
Composite Energy Consumption
(Lowest 5.907Gcal / MT in 2007-08)
5.941 Gcal/ MT
GROWTH IN THE NUMBER OF COOPERATIVE SOCIETIES
( as on 31stMarch 2009)
1967-681974-751980-811986-871992-931998-992004-052008-09
57
2552826960 28134
30200
3507237381
39824
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CUMULATIVE PRODUCTION (as on 31stMarch 09:
UNIT PRODUCT PRODUCTION
KALOL UREA 144.35
PHULPUR - I UREA 148.21
PHULPUR - II UREA 96.92
AONLA - I UREA 174.44
AONLA - IIUREA 107.79
TOTAL UREA 671.71
KANDLA NPK 250.35
DAP 157.45
PARADEEP NP 14.74
DAP 14.78
TOTAL NPK/DAP 437.32
TOTAL FERTS. 1109.03
NUTRIENTS N 368.71
P2O5 156.46
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CUMULATIVE ACHIEVEMENTS (as on 31stMarch 09)
GROWTH IN PRODUCTION CAPACITIES:
As on Date UREA NPK/DAP Total Ferts.
Jan.75 - 415.6 415.6
Apr.75 396.0 415.6 811.6
Mar.81 891.0 415.6 1306.6
Sep.81 891.0 881.3 1772.3
Jul.88 1617.0 881.3 2498.3
Dec.96 2343.0 881.3 3224.3
Aug.97 2491.5 881.3 3372.8
Dec.97 3217.5 881.3 4098.8
Aug.99 3217.5 1600.1 4817.6
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Apr.01 3689.4 1973.6 5663.0
Apr.02 3689.4 2191.1 5880.5
Apr.04 3689.4 2415.4 6104.8
Oct.05 3689.4 4335.4 8024.8
Dec 08 4242.2 4335.4 8577.6
GROWTH IN PRODUCTION CAPACITIES:
(All figures are in Lack MT)
3.96
8.91 8.91
16.17
23.4324.91
32.18 32.18
36.89 36.89 36.89
36.89
42.42
4.16 4.16 4.16
8.81 8.81 8.81 8.81 8.81
16.00
19.7421.91
24.15
43.35 43.35
0
10
20
30
40
50Urea
NPK/DAP
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TOTAL FERTILISER PRODUCTION: (All figures are in Lack MT)
PRODUCT WISE PRODUCTION PERFORMANCE: (All figures are in Lack MT)
2004-05 2005-06 2006-07 2007-08 2008-09
61.54 64.35
70.12 68.4771.68
2004-05 2005-06 2006-07 2007-08 2008-09
24.4 27.17
32.2628.84 31.00
37.14 37.18 37.8639.63
40.68
61.5464.35
70.12 68.47
71.68COMPLEX UREA TOTAL
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NUTRIENTWISE PRODUCTION PERFORMANCE:( Lakh MT)
TOTAL SALE OF FERTILISERS: ( lakh MT)
2004-05 2005-06 2006-07 2007-08 2008-09
9.38 9.7611.29
9.949.18
20.71 20.85
22.17 22.3623.29P2O5 N
2004-05 2005-06 2006-07 2007-08 2008-09
64.64
81.9586.1
93.24
112.58
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SALES PERFORMANCE: (lakh MT)
PROFIT BEFORE TAX (PBT): (Rs. Crore)
2004-05 2005-06 2006-07 2007-08 2008-09
27.94
31.8233.69
38.95
53.89
36.7
50.13
50.1354.29
58.69COMPLEX UREA
2004-05 2005-06 2006-07 2007-08 2008-09
470.92481.90
251.25
380.52
441.95
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PROFIT AFTER TAX (PAT) Rs. Crore
TURNOVER: (Rs. Crore)
2004-05 2005-06 2006-07 2007-08 2008-09
319.64
341.35
175.02
257.59
360.01
2004-05 2005-06 2006-07 2007-08 2008-09
7397
9943 1033012163
32933
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CREDIT RATINGS ASSIGNED TO IFFCO:
AA-rating on IFFCOs Long Term Borrowing Programme. This rating indicates
high degree of safety with regard to timely payment of interest and principal on the
instrument.
P1+ rating to IFFCOs Rs. 100 Crore Commercial Paper Programme. This rating
indicates that the degree of safety with regard to timely payment of interest and
principal on the instrument is Very Strong.
Governance and Value Creation (GVC) rating at GVC Level 2. This rating
indicates that the capability of the Society with respect to wealth creation for all its
stakeholders, while adopting sound corporate governance practices, is high.
FITCH Ratings :-
Short Term Rating of F1+ (Ind) to IFFCOs working capital/short term
borrowings. This rating indicates that the degree of safety with regards to timely
payment of interest and principal on the instrument is very strong.
Long Term Rating of AA (Ind outlook Negative) to the Long Term Debt
Programme of IFFCO. This rating indicates high degree of safety with regard to
timely payment of interest and principal on the instrument.
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CARE Ratings :-
PR1+ (PR one plus) rating to IFFCOs working capital facilities/ Short Term
Loans having tenure upto one year.
CARE AA (Double A) rating to External Commercial Borrowings and other
existing long term borrowings having tenure of over one year.
MAJOR AWARDS RECEIVED:
Prestigious Economic Times Acer and Intel Smart Workplace Award in the
Manufacturing and Industrial Segment
Best Content Service as well as the Best Project Management in respect of
IFFCO Kisan Sanchar Limited (IKSL) at the World Communications Award held
at London
Institute of Chartered Accountants of India (ICAI) Award for Excellence in
Financial Reporting for IFFCOs Annual Report and Accounts for the year 2007-
08
Best Cooperative Society Award from Public Relations Society of India ( PRSI ) at
its Golden Jubilee Ceremony in Mauritius
IFFCO has been ranked 1st in Sales Turnover and 2nd in terms of Networth and
Profitability amongst unlisted enterprises by Economic Times Intelligence Group
for the year 2007-08
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IFFCO has also got Prestigious CIO 100 Award by International Data Group
(IDGI India), the worlds leading Technology Media Event and Research Group
Best managed Workforce Award for the year 2004 from Hewitt Associates and
CNBC TV-18
Two Awards for Highly Commendable Accounts
National HRD Award from National HRD Network for outstanding contribution in
HR Development
IFFCO Annual Report bagged the third prize, instituted by Public Relations
Society of India (PRSI)
FAI Golden Jubilee Award on Transfer of improved Farm Technologies
1stPrize for Best Corporate Film from NCUI
Three awards for Best Display in FAI Exhibitions
IFFCO Corporate film was adjudged the best by Public Relations Society of India
(PRSI)
IFFCO has bagged FAI Best Video Film Award 2006-07 for film on Water
Harvesting.
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SWOT Analysis of IFFCO
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SWOT ANALYSIS OF IFFCO
STRENGTHS:
Largest fertilizers producing company in India and are a largest cooperative
organization also.
Having huge product range to satisfy the customers and customer is loyal to company.
Distribution of fertilizers through the cooperative societies provides easy availability
to the farmers.
Water Soluble fertilizers are the main strength of the company.
Huge Investment in the production of potash and other chemicals.
Diversified company having subsidiaries such as : IFFCO-Tokio General Insurance,
Oman India Fertilizer company, NCDEX & IFFCO Chhattisgarh power ltd.
Well established infrastructure across the country.
WEAKNESSES:
Need govt. permission to perform various activities.
IFFCO is lacking in a well installed Management Information System due to which
the information flow is slow and the quality of decisions is also not good.
In IFFCO there is an unavailability of young and skillful manpower due to which the
per employee productivity ratio is very poor.
Packaging of the products is not attractive.
There is no provision to replace the defective baggies.
The price of some products is very high and a lower level farmer can not afford these
fertilizers.
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OPPORTUNITIES :
IFFCOs Expansion Plans:
Aonla project completed ahead of schedule in Dec 1996 at a cost of Rs. 955 crore.
Commercial production started from 25.12.1996
Kalol Ammonia and Urea Plants Revamped in August 1997 at an investment of Rs.
149.7 crore
Phulpur Expansion Project completed in December 1997 within 32 months from the
zero date at an investment of Rs. 1190 crore. Commercial Production started from
22.12.1997
Kandla Expansion completed at a Project cost of Rs. 205.3 crore and commercial
production started on 5.8.1999, 77 days ahead of schedule
Diversification & Joint Ventures:
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INDUSTRIES CHIMIQUES DU SENEGAL (ICS)
IFFCO-TOKIO GENERAL INSURANCE CO. LTD. (ITGI)
SANKAT HARAN BIMA YOJANA BY ITGI
OMAN INDIA FERTILISER PROJECT (OMIFCO)
IFFCO CHHATTISGARH POWER LTD. (ICPL)
IFFCO KISAN SANCHAR LTD. (IKSL)
THREATS :
Government of India is emphasizing on the Disinvestment.
In the era of privatization IFFCO can also be privatized in future.
Entry of private players in the fertilizers marketing and production.
Government of India can ban the fertilizers, insecticides and pesticides having
negative effect on the human health.
Too much expansion and investment in new projects may lead to financial crunch to
the company.
IFFCO is a media shy company and in the present day marketing promotion plays a
vital role to motivate the customer to purchase the product.