parle product report.doc

Parle Products Pvt. Ltd. &.IFFCO

A

PROJECT REPORT

ON

PRACTICAL STUDIES

AT

PARLE PRODUCTS PVT. LTD.

&

INDIAN FARTILIZER CO-OPERATIVE SOC

LIMITED

Submitted to :Hemchandracharya North Gujarat

UniversityPatan.

Submitted By : F.Y.

Academic Year : 2006 - 07

Narshinhbhai Patel College of Computer Studies and Management

N.P. COLLEGE OF COMPUTER STUDIES & MANAGEMENT, KADI.


PREFACE

Proper learning is born out of experience and observations. We know that

there is no alternative to beat self experience of learning anything with questions

and answers.

As part of our syllabus of B.B.A. program, we require to undertake a

project in order to fulfill the partial knowledge. We have done the analysis, in the

interpretation of PRALE PRODUCTS PVT. LTD. & IFFCO.

The main objective of the industrial visit is to develop the student’s ability.

It is the opportunity for the student to show their skill and efficiency. Students will

be able to develop their internal strength by the industrial visit.

ACKNOWLEDGEMENT

I have great pleasure to prepare a present report on industrial visit. Which

we have done during the first year B.B.A. in academically study of industrial

environment.

I am the student of F.Y.B.B.A. class and very thankful to our project guide

Prof. Tejas Shah & H.O.D. Prof. Nilesh Patel who accomplishes guided and

encouraged us during the time of industrial visit.

I obliged to all those entire union and management manager, chief

executive and other person of the industry who spend their valuable time for

answering us.



INDEXSr. No

Topics Page No.

1.0 General Information PARLE1.1 HISTORY OF COMPANL

1.2 PARLE STRUGGLE

1.3 Vision - Mission1.4 OBJECTIVES

1.5 TIPE OF ORG.1.6 SYSTEM ANALYSIS1.7 Quality Policy1.8 THE STRENGTH OF THE P.BOARD1.9 THE QUALITY COMMITEMENT

1.10

THE MARKETING STRENGH

1.11 THE CUSTOMER CONFIDENCE 1.12 IMPORT & EXPORT2.0 Production Department2.1 PRODUCT2.2 RAW-MATERIAL2.3 PRODUCTION PROCESS2.4 PRODUCTION CHART2.5 ABOUT MACHINERY2.6 ABOUT BISCUIT PACKING



2.7 ABOUT ADVEEMENTSTIS3.0 Human Resource Department3.1 HUMAN RESOURCE3.2 TIME KEEPING SYSTEM3.3 WELIARE ACTIVIES 3.4 TRAINNING & DEVELOPMENT4.0 Marketing department4.1 ORGANIZING CHART4.2 AS DISTRIBUTION CHANNEL4.3 MARKETING STRUCTURE4.4 INTERNATIONAL MARKET 84.5 PRICING POLICY 284.6 PRODUCT LIST 294.7 PRICE LIST

30

Sr. No.

Topics Page No.

1.0 General Information IFFCO1.1 HISTORY OF IFFCO1.2 IFFCO & BOARD OF DIRECTORS1.3 IFFCO & IND.FARMERS SUCCESS

ST.1.4 UNIT AS GLANCE1.5 MAJOR AWARDS RESEIVED1.6 VISION 20101.7 ACHIEVEMENTS DURING 2005-061.8 MISSION 20052.0 Production Department2.1 GROWTH PRO. CAPACITIES2.2 PRODUCTION PERFOMANCE2.3 STREAM DAYS ACHIEVEVED2.4 CAPACITY UTILISATION2.5 BIO-FERTILISERS3.0 Human Resource

Department3.1 TOTAL EMPLOYEER CHART3.2 CLASSFICATION OF EMPLOYES3.3 HUMAN RESOURCE3.4 TIME KEEPING SYSTEAM



3.5 WELFARE ACTIVIES3.6 TRAINING & DEVELOPMENT4.0 Service To Farmer4.1 SIRVICE TO FARMER4.2 (NCMSL)5.0 Marketing department5.1 MARKETING DEPARTMENT5.2 MARKETING TERRITORIES OF IFFCO5.3 DISTRIBUTION & WAREHOUSING5.4 HIGHLIGHTS OF 2005-066.0 Sales department7.0 Financial department7.1 FINANCIAL PERFORMANCE & AS

IFFCO7.2 FINANCIAL PERFORMANCE &

(USDMILLION)7.3 PRODUCTION OF KNP AT KANDLA 7.4 VALUE ADDITION7.5 SHARE CAPITAL



(1.1) HISTORY OF COMPANY

A long time ago, in 1928 AD when the British ruled

over India, a small factory was set up in the suburbs of

Mumbai city at Villai, to manufacture sweets and

toffees. This company was known as “Villai Parle”. Villai

parle was established by Mr. Naratam Chauhan and his

father. During this time, the market was dominated by

famous, international brands that were imported freely.

Despite the odds and unequal competition, the

company called as Parle Products, survived and

succeeded, by adhering to high quality and improving

from time to time.

A decade later, in 1938, Parle Products began manufacturing biscuits, in addition to sweets and toffees. Having already established a reputation for quality

In the year 2001, there was a dangerous

earthquake in Gujarat, whose main point of center was

Kachchh Bhuj. Due to a great destruction and its loss,

Government had made the five years tax-free policy so

that this area could develop again. By this policy, many

big industries have started their units in this area, in

which one was Parle.

It is situated at village Ler behind Shekhpir, Kukma

in Bhuj. In this plant the biscuit of Parle G and Monaco



are being produced. The production of Bhuj unit

satisfies the wants of whole Gujarat.



(1.2) PARLE’S STRUGGLE

Biscuits were very much a luxury food in India,

when Parle began production in 1939. Apart from

Glucose and Monaco biscuits, Parle did offer a wide

variety of brands.

However, during the Second World War, all

domestic biscuit production was diverted to assist the

Indian soldiers in India and the Far East. Apart from

this, the shortage of wheat in those days, made Parle

decide to concentrate on the more popular brands, so

that people could enjoy the price benefits.

Thankfully today, there's no dearth of

ingredients and the demand for more premium brands

is on the rise. That's why, we now have a wide range of

biscuits and mouthwatering confectionaries to offer.



(1.3) VISION & MISSION

VISION

“PARLE PRODUCT PVT. LTD.” will continue to maintain it’s

leadership position in BISCUITS, TOFFES AND CANDIES.

MISSION

To expand it’s fame in whole world and to become

popular in whole world.

To gain consumer’s confidence at high level.

(1.4) OBJECTIVES

To earn profit.

Consumer’s Satisfaction.

To spread their units as far as possible.

To provide necessary resources required for

management system to prove excellence.

To provide best quality product.

(1.5) TYPE OF ORGANIZATION

“PARLE PRODUCT PVT. LTD.” is medium scale industry. It is

considered as PVT. LTD. by ownership and medium



scale by size as its investment does not exceed mare

than. Rs. 100 Cr.

(1.6) SYSTEM ANALYSIS

In this business unit, the function is divided into 6 parts.

Purchasing raw material.

Mixing the raw material.

Cutting into pieces.

Baking process.

Cooling process.

Packing process.

(1.7) QUALITY POLICY



(1.8) THE STRENGTH OF THE PARLE BRAND

Over the years, Parle has grown to become a multi-

million US Dollar company. Many of the Parle products -

biscuits or confectionaries, are market leaders in their

category and have won acclaim at the Monde Selection,

since 1971.

Today, Parle enjoys a 40% share of the total biscuit

market and a 15% share of the total confectionary

market, in India. The Parle Biscuit brands, such as,

Parle-G, Monaco and Krackjack and confectionery

brands, such as, Melody, Poppins, Mangobite and Kismi,

enjoy a strong imagery and appeal amongst

consumers.

In this way, by concentrating on consumer tastes

and preferences and emphasizing Research &

Development, the Parle brand grows from strength to

strength.



(1.9) THE QUALITY COMMITEMENT

Parle Products has one factory at

Mumbai that manufactures biscuits & confectioneries

while another factory at Bahadurgarh, in Haryana

manufactures biscuits.

Parle has manufacturing facilities at

Neemrana, in Rajasthan and at Bangalore in Karnataka.

Parle Products also has 14 manufacturing units for

biscuits & 5 manufacturing units for confectioneries, on

contract.

All Parle products are manufactured

under the most hygienic conditions. Great care is

exercised in the selection & quality control of raw

materials, packaging materials & rigid quality standards

are ensured at every stage of the manufacturing

process. Every batch of biscuits & confectioneries are

thoroughly checked by expert staff, using the most

modern equipment.



(1.10 ) THE MARKETING STRENGTH

The extensive distribution network, built over the

years, is a major strength for Parle Products. Parle

biscuits & sweets are available to consumers, even in

the most remote places and in the smallest of villages

with a population of just 500.

Parle has nearly 1,500 wholesalers, catering to

4,25,000 retail outlets directly or indirectly. A two

hundred strong dedicated field force services these

wholesalers & retailers. Additionally, there are 31

depots and C&F agents supplying goods to the wide

distribution network.

However, Parle Products also manufactures a

variety of premium products for the up-market, urban

consumers. And in this way, caters a range of products

to a variety of consumers.



(1.11) THE CUSTOMER CONFIDENCE

The Parle name conjures up fond memories across

the length and breadth of the country. After all, since

1929, the people of India have been growing up on

Parle biscuits & sweets.

Today, the Parle brands have found their way into

the hearts and homes of people all over India & abroad.

Parle Biscuits and confectioneries, continue to spread

happiness & joy among people of all ages.

The consumer is the focus of all activities at Parle.

Maximizing value to consumers and forging enduring

customer relationships are the core endeavours at

Parle.

"Parle Products Limited will strive to provide

consistently nutritious & quality food products to meet

consumers' satisfaction by using quality materials and

by adopting appropriate processes.



(1.12) IMPORT - EXPORT

The immense popularity of Parle products in India

was always a challenge to our production capacity.

Now, using more modern techniques for capacity

expansion, we have begun spreading our wings and are

going global.

Parle biscuits’ and confectionaries are fast gaining

acceptance in international markets, such as, Abu

Dhabi, Africa, Dubai, South America and Sri

Lanka.

Even the more sophisticated markets like USA &

Australia, now relish Parle products.

As part of the efforts towards a larger share of the

global market, Parle has initiated the process of

getting ISO 9000 certification. Many Parle Products

have also won Gold, silver and bronze medals at the

Monde Selection.



(2.0) {A} WHAT IS PRODUCTION ?

Production is a process by which goods and

services are

created.

{B} WHAT IS PRODUCTION

MANAGEMENT ?

Production mgt. is the process of planning ,

organizing ,

directing , and controlling the activities of the

production

function.The production function is the

conversion of

row-materials into finished production.

(2.1) PRODUCT

“ PARLE PRODUCT PVT LTD “ produces biscuits,

toffees and candies, but the unit of Parle situated at

Bhuj produces the biscuits only.

(2.2) RAW MATERIAL

For the production of Parle G and Parle Monaco,

the raw material require is as follows :

Wheat flour

Edible oil


Mixing Raw

MaterialCutting

Backing

CoolingPacking


Sugar

Salt

Milk

Flavour items

(2.3) PRODUCTION PROCESS

First of all, the raw material is mixed in one

machine, then it is being cut into pieces by moulds and

then the biscuit cuttings are backed into the oven for

eight minutes. After this process, they are moved on

rolling belt for cooling process and then are packed into

packets.

The production of 168 – 190 packets is done in one

minute.

(2.4) PRODUCTION CHART

(2.5) ABOUT MACHINERY



There are about 78 machines in this unit. For the

production of the biscuit and cutting, the mixed

material into pieces, then backing it, cooling it and also

packing the finished products, each and every process

is being done through machines.

The oven of Parle is the biggest oven in whole Asia. The

length of this oven is 90 meters, the inside temperature

of the oven is 140c.

The backed biscuits, the cooling belt is used. No

air-conditioning is provided for cooling the biscuit

After that the biscuits are packed in wrappers,

which are also printed in the same unit.



(2.6) ABOUT BISCUIT PACKING

ProductsNo of Pkts

PackingBox Size

(mm)Volume Net.Wt. GrossWt.

20' FCL(approx)

40' FCL(approx)

40' HC(approx)

CB Pkt. X g L X B X H M3 Kg Kg Boxes Boxes Boxes

Monaco Family Pack

(300g) 18 18

567 X 231 X 283

0.0371 5.4 6 848 1730 1953

Monaco ATC Classic (150g)

72 72498 X 498 X 441

0.1094 10.8 15.00 288 586 662

Monaco ATC Classic (150g)

36 36378 X 325 X 330

0.0405 5.40 8.10 776 1582 1786

(2.7) ABOUT ADVEEMENTSTIS

Advertising is the most important means for

promoting sales of the product. By advertising people

can know about the quality and price of the product.

Advertisement attracts the customers towards product.

By that way the sale of the product is increased.

Advertisement bombards on the mind of customers.

For the advertisement of its products “Parle

Products PVT LTD.” keeps its medium through,

television, radio, sponsoring the serials & magazines.



(3.0) WHAT IS MEAN BY H.R.M. ? We should first review what managers do most experts agree that there are five basic function all managers perform ,planning,organizing ,staffing,leading and controlling.In total,these function represent the management process.Some of the specific activities in volved in each function include

(3.1) HUMAN RESOURCEIt provides 100% attendance award to the workers.

Training is provided to employees to make them

more efficient and skillful.

Bonus is provided on Diwali to the employees.

There are 10,000 working in the company.

There is canteen facility for all the employees.

(3.2) TIME KEEPING SYSTEM

Time keeping is the most important part of any

company.

The process of company runs 24 hrs.

The shift of working is divided into 3 parts.

Shift

7:00 am to 3:00 pm

3:00 pm to 11:00 pm

11:00 pm to 7:00 am



(3.3) WELFARE ACTIVITIES

The function of the welfare department is basically

to be engaged in the welfare of employees the function

of the welfare department is as under.

Parle parivar provides canteen facilities to the

employees, where all are treated equally.

The arrangement of cricket matches and cultural

programs are hold for the entertainment of the

workers. Also monthly home visit is taken at the houses

of the company employees.

(3.4) TRAINING & DEVELOPMENT

While discussing regarding the training provided to

the employees by the company, we should remember

the words of peter Drucker “ An institute that can’t

produce it’s own manager will die”.

Training provides efficiency, skills and ability and

confidence to the worker for doing the work. So, it is an

essential and basic part of each and every organization

or company to train their workers.



According to the Micheal Armstrong “Training is

the systematic modification of behavior through

learning which occurs as a result of education,

instruction, development and planned experience”.

This unit has its separate training department and

each & every employee of the company is recruited

after personal training only. In this unit internal as well

as external both types of trainings are provided.

MONTH SUBJECT FACULTY PARTICIPANTS

INTERNAL TRAINNIG

JUN-06 Self

empowerment

& Team

Building

Mr. R.S.Dabas 50 Staff Member

Seven Habits Mr. Himansu

Buch

54 Staff Member

Fire Safety Mr. N.

Sharma

16 Staff, 38 Worker



MONTH SUBJECT FACULTY PARTICIPANTS

EXTERNAL TRAINNIG

MARCH -

06

VAT AND

TAXTION

Mr. Nayan

Seth

Mr. H.Jadeja, Mr.

Rakesh Mevada, Ms.

Beena Rathod

April – 06 Visit to Mumbai Mr. bhushan mehta

Visit of

neemrana &

Pantnagar

plant

Mr. A.R.Dixit, Mr.

T.K.Chaudhary, Mr.

Deepak Patel, Mr.

Pravin Sisodiaya,

Ms. Beena Rathod,

Mrs. Purvi Srivastav

VAT AND

TAXATION

Vidyut Buch Mr. Rakesh

Mevadea, Mr. R.K.

Singh, Mr. H.D.

Solanki, Ms.

Deepmala

May – 06 Visit to

Neemrana

Mr. Jitendra Gandhi,

Mr.



(4.0) {A} WHAT IS MARKETING ?

Marketing deals with identifying and meeting

human and social needs one of the shortest

definitions of marketing is meeting needs profitably.

{B} WHAT IS MARKETING

MANAGEMENT ?

Marketing is an organizational function and a set

of process for creating, communicating and delivering

values to customers and for managing customer

relationship in ways that benefit the organization and

its stake holders.

(4.1) ORGANIZING CHART

Marketing vice president


Marketing administrationmanager

Advertising and sales promotion manager

Salesmanager

Marketing researedmanager

New productsmanager


(4.2) {A} DISTRIBUTION CHANNEL CHART

{B} CHANNEL LEVELS

(1) ZERO LEVEL CHANNEL :-

A zero level channel consists of a many

facturer selling directly to the final customer. The major

examples are door to door sales. Home parties

mailorder,telemardeting. Tv selling,internet selling and

manufature owned stores. Avon sales represent

statives sell cormetics door to door tupper ware

represent tatives sell kitchen goods through home

parties. Time life sells music and video collections

through TV commerciasl or longer “Informercials” red


COMPANY’S PREMISES

DECLAR

SUB

DELEARAREA SALESMAN

CUSTOMERS


envelope sells gifts online and gateway sells sells

computers and other consumer. Electronics through its

own stores.

(2) ONE LEVEL CHANNEL :-

A one level channel contains one selling

intermediary,such as a retailer.

(3) TWO LEVEL CHANNEL :-

A two level channel contains tow intiermediaries.

In consumer markets. These are typically a wholesaler

a retailer.

(4) THREE LEVEL CHANNEL :-

A three level channel contains three

intiermediaries. In the mert packing industry

wholesalers sell to jobbers. Who sell to jobbers, who sell

to small retailers.

(4.3) MARKETING STRUCTURE

Organization of marketing means the structure of

marketing and sales department and its field of work

including authority and responsibility.



‘Parle’ is having a sound marketing organization

but its sales department is not different from marketing

department. Therefore, marketing and sales

department are one same in this unit.

(4.4) INTERNATIONAL MARKET

The immense popularity of Parle products in India,

always became a challenge to its production capacity

plow, using mare modern techniques for capacity

expansion, they have begun spreading this wings and

are going global.

Parle biscuits and confectionaries are fast gaining

acceptance in international markets, such as, Abu

Dhabi, Africa, Dubai, South America and Sri Lanka.



(4.5) PRICING POLICY

When the whole production process is finished and

the product gets ready then the meet important task of

the promoter is to determine the price of it. During the

price determination of the product, promoters take

some points into their concentration like…

Prices of the competitors

Market budget

Cost of production

Benefits or harms

Consumer demand

Consumer satisfaction

Amount of profit to be earned

Market potentiality

Quality of the product



(4.6) PRODUCT LISTThese are the total products of the Parle which are manufactured in

different units of Parle.

Monaco Bites

Kismi Bar Krackjack

Fun CentreMango

BiteSixer

Hide & Seek

MelodyMarie

Choice

Jeffs MagixOrange

Candy

NimkinParle

Cream Milk Shakti

Parle-G Toffees Poppins

But in the Bhuj’s unit only Parle Glucose biscuits and

Monaco are produced.


http://www.parleproducts.com/poppins.html

http://www.parleproducts.com/toffees.html

http://www.parleproducts.com/parle-g.html

http://www.parleproducts.com/parle-g-milkshakti.html

http://www.parleproducts.com/parlecream.html

http://www.parleproducts.com/parlecream.html

http://www.parleproducts.com/nimkin.html

http://www.parleproducts.com/orangecandy.html

http://www.parleproducts.com/orangecandy.html

http://www.parleproducts.com/parle-g-magix.html

http://www.parleproducts.com/jeffs.html

http://www.parleproducts.com/marie.html

http://www.parleproducts.com/marie.html

http://www.parleproducts.com/melody.html

http://www.parleproducts.com/hideandseek.html

http://www.parleproducts.com/hideandseek.html

http://www.parleproducts.com/sixer.html

http://www.parleproducts.com/mangobite.html

http://www.parleproducts.com/mangobite.html

http://www.parleproducts.com/funcentre.html

http://www.parleproducts.com/krackjack.html

http://www.parleproducts.com/kismibar.html

http://www.parleproducts.com/monacobites.html

http://www.parleproducts.com/monacobites.html

http://www.parleproducts.com/parle-g.html


(4.7) PRICE LIST

PRODUCT’S NAME PRODUCT’S

WEIGHT

PRODUCT’S

M.R.P.

Parle-G 1000 gm

Parle-G 500 gm

Parle-G 300 gm

Parle-G 150 gm

Parle-G 100 gm

Parle-G 70 gm

Parle-G 50 gm

Parle-G 19 gm

Monaco Family Pack 300 gm

Monaco ATC Classic 150 gm

Monaco ATC 150 gm

Monaco Zeera 100 gm

Monaco Salty 100 gm



(1.1) HISTORY OF IFFCO

Till mid sixties cooperatives in India had no production

facility despite marketing nearly 70% of fertilizers.

IFFCO was established as the farmers’ own initiative in

Cooperative Sector on 3rd Nov.’67 with the proposed

plants at Kalol & Kandla.

With the enactment of Multi State Co-operative

Societies Act 2002, the Society is deemed to be

registered as a Multi State Co-operative Society.

KANDLA unit received the “FAI Award for the year

2004-05” for the Best Overall Performance of in

complex fertilizers category.

= Largest producer of fertilizers in the country

= No. of Plant Locations: Five

= Installed Annual Capacity (‘000 MT)

UREA - 3689.4

NPK/DAP - 4335.0

TOTAL ‘N’ - 2380.7

TOTAL ‘P2O5’ - 1784.5

Only Fertilizer Institution in the country to have

surpassed 60 lakh MT per annum in terms of



production and 80 lakh MT per annum in respect of

sales.

Contributed about 18.3% to the total ‘N’ and 23.0% to

the total “P2O5” produced in the country during the

year 2005-06.

Fertilizers marketed through 37424 Cooperative

Societies and 158 Farmers Service Centers.

Service to the Farmers through a variety of

programmers.



(1.2) IFFCO & BOARD OF DIRECTORS



(1.3) IFFCO-INDIAN FARMERS SUCCESS STORY

During mid-sixties, the co-operative sector in

India was responsible for distribution of 70% of fertilizer

consumed in the country. This sector had adequate

infrastructure to distribute fertilizer but had no production

facilities of its own and hence dependent on public/private

sector for supplies.

IFFCO was created on November-3-1967 as a

multiunit co-operative society engaged in production and

distribution of fertilizer. In 1993 IFFCO had drawn up a

major expansion programmed of all the four plants under

over all against of IFFCO VISSION 2000. IFFCO’S annual

capacity has been increased to 3.69 million tunes of Urea

and NPK / DAP equivalent to 825 thousand tunes of

Phosphates. The distribution of IFFCO’S fertilizer is

undertaken through over 35000 co-operative societies. The

entire activities of distribution, sales, promotion are

coordinated by Marketing, Central office (MKCO) at New

Delhi assisted by the marketing offices in the field. In

addition, essential agro inputs for crop production are made

available to the farmers through a chain of 167 Farmers

Service Center (FSC). IFFCO obsessively nurtures its

relations with farmers and undertakes a large number of

agricultural extension activities for their benefit every year.



IFFCO, today is a leading player in India’s

fertilizer industry and is marketing substantial contribution

to the efforts of Indian Government to increase food grain

production in the country.

(1.4) UNIT AT A GLANCE

Name Of The Unit

Indian Farmers Fertiliser

Co-Operative Ltd. (IFFCO)

Address

IFFCO,

Kandla Unit.

Post Box No12,

Gandhidham-370201

Kandla(kuchchh), Gujarat, INDIA

Registered Office

IFFCO

34, Nehru Place,

New Delhi – 110019

Date Of Registration

On November 3 rd, 1967 As a

Multi Co – Operative Society.



Size of the Unit

Large Scale Unit

Form of the Unit

Multi Co-Operative Society

Name of the Products

Urea

Ammonia

Dry-ice

Liquid Co2

Raw Material Used (Input)

Natural Gas

Associated Gas

Naphtha

Bore well Water

Fuel Oil

Electric Power

Bankers

Indian Overseas Bank

State Bank of India

Bank Of Baroda



The Maharastra State Co-Operative Bank Ltd.

The West Bengal State Co-Operative Bank Ltd.

Madhya Pradesh State Co-Operative Bank Ltd.

The Karnataka State Co-Operative Bank Ltd.

The Punjab State Co-Operative Bank Ltd.

Punjab National Bank.

Auditors

M/s.S.P. Chopra & Co.

Chartered Accountant

N Block, Bombay Life Building

Connaught Place

New Delhi – 110 001

M/s. Arun Singh & Co.


F-7, Lagpat Nagar-3


M/s. J.C. Bhalla & Co.


18-A, Nizamuddin West


Source: Annual Report 2005-06

(1.5) MAJOR AWARDS RECEIVED

KANDLA



Twelve Safety Awards from National Safety Council

Bombay, GOI.

Twenty five Safety Awards from Gujarat Safety

Council, Baroda.

Nineteen Awards for safety from National Safety

Council, USA.

Letter of Appreciation from GEB for Energy

Conservation.

Raj Bhasha Award for promoting Hindi and Shreshtra

Shatabdi Shield by Rashtriya Hindi Academy.

Eight Awards for Best Overall Performance from FAI.

Certificate of Honour from Gujarat Safety Council for 3

million man hours without accident.

(1.6) VISION 2010

BROAD VISION OF THE SOCIETY

To augment the incremental incomes of farmers by

helping them to increase their crop productivity

through balanced use of energy efficient fertilizers.

To maintain the environmental health.

To make cooperative societies economically and

democratically strong for professionalized services to

the farming community to ensure an empowered rural

India.



VISION 2010

The Society has embarked upon another growth plan

titled “VISION 2010” to achieve annual turnover of

Rs. 15,000 crore (USD 3400 Million) by the year 2010.

Society is exploring avenues for diversification into

other profitable business areas, apart from fertilizer

sector, for sustained growth and adequate return to

member shareholders.

Vision 2010 would mainly focus on farmer oriented

schemes and strengthening of cooperative

infrastructure.

Broadly identified business activities under the

“VISION 2010” are:-

Installation of Ammonia/Urea plants including

acquisition of fertilizer units.

Generation of Power.

Production and Marketing of micro-nutrients, seeds,

bio-fertilizers, pesticides etc.

Value addition to agric-products and marketing.

Banking and Financial Services.

Information Technology and IT enabled services.



Establishments of Retail Chain in urban and semi-

urban Locations.

US$ 1 Billion investment for capacity

increase

IFFCO has envisaged a major expansion/diversification plan

to invest USD 1 Billion to ramp up the Domestic Fertilizer

Production Capacity, Acquisition of Plants, and Joint Ventures in

foreign countries and Energy Reduction Measures in existing

Units:

A State-of-the-Art phosphoric acid plant in Egypt

(IEFC) with a project cost of USD 325 million with an

installed capacity of 0.5 Million MTPA of P2O5 with

equity by IFFCO (76%) and EI Nasr Mining Co. (ENMC)

of Egypt (24%).

Energy Saving Schemes Project for all the existing

Ammonia Plants at a total Investment of USD 90

Million.

De-bottlenecking Project consisting of conversion of

Phuplur Unit from Naphtha feed/fuel to RLNG,

installation of Carbondi-oxide Recovery Plant (CDR) at

Aonla and Phulpur Units as well as capacity



enhancement of Aonla and Phulpur Units, with a capital

expenditure of USD 110 Million.

Acquired NPK/DAP Plant of 2 Million MTPA at Paradeep

alongwith hosphoric Acid and Sulphuric Acid at a cost of USD

550 Million.

US$ 1 Billion investment in power project

1000 MW Power Project at Chhattisgarh.

IFFCO Chhattisgarh Power Ltd. With Chhattisgarh State electricity

board (CSEB) incorporated on 26.01.2006.

Salient features of the Project:

Total estimated project cost US$ 1 billion

Equity participation by IFFCO (74%) and CSEB (26%)

Scheduled commissioning in year 2010

Low tarrif electricity to farmers of Chhattisgarh

Active participation of Government in the land, coal, water

and infrastructure fronts.



IFFCO PLANTS

Plants Locati

on

Commissioned

in

Expande

d in

Annual production capacity

(in Thousand MT)

Kalol Gujarat 1975 1997 Urea 545

Kandla Gujarat 7975 1981 &

1999

DAP/NPK (in

bulk)

2415

Phulpur U.P. 1981 1997 Urea 1416

Aonla U.P. 1981 1996 Urea 1729

Paradee

p

orissa Acquired in

September’ 05

- DAP/NPK (in

bulk)

1920

IFFCO SUBSIDIARIES

IFFCO TOKIO GENERAL INSURANCE COMPANY LTD.

INDO EGYPTIAN FERTILIZER COMPANY, SAE

IFFCO CHHATISGARH POWER LTD.

KISAN INTERNATIONAL TRADING FZE

IFFCO TOKIO INSURANCE SERVICES LTD.

IFFCO KISAN BAZAR LTD.

IFFCO ASSOCIATES

INDUSTRIES CHIMIQUE DU SENEGAL

OMAN INDIA FERTILIZER COMPANY S.A.O.C.

GODAVARI FERTILISERS & CHEMICALS

INDIAN POTASH LTD.

INDIAN FARM FORESTRY DEVELOPMENT COOP. LTD

COOPERATIVE RURAL DEVELOPMENT TRUST

KISAN SEWA TRUST

IFFCO FOUNDATION



WATER SOLUBLE FERTILISERS

Increase in area under drip irrigation.

Demand for 100 % water soluble fertilizers increasing.

Indigenous capacity not available.

The present demand is mostly being met by imports.

IFFCO has successfully tried producing one of the water

soluble fertilizers Urea Phosphate at its R&D Laboratory at

Kandla plant.

Pilot plant planned to be set up at Kandla unit.

INFORMATION AND COMMUNICATION

TECHNOLOGY

Wide Area Network (WAN) up to Area Office level with

Corporate Server at Gurgaon.

Virtual Private Network (VPN) connecting all Offices of IFFCO

under roll out.

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, and Production etc.

Benefit Pre-audit annual accounts closed by 1st week of April

since last three years.

All Software developed by in-house expertise, often consulted

by other organizations.



HRMS, an in-house developed ERP, having 25 applications for

better Corporate Governance and internal workflow.



Intranet applications on Rules & Procedures, News, Weather,

Crop growing periods, Notice Board, Technical Papers,

Telephone, Blood Group, Software Project Monitoring and

Hardware Complaints etc.

Multilingual Agri Information Portal to extend benefit of ICT to

Cooperatives and farmers. More than 100 touch screen based

Kiosks installed in 16 states and another 50 are under

installation.

Free multilingual email facilities to Cooperatives.

IFFCO KISAN BAZAR LTD.

IFFCO Kisan Bazar Ltd. was incorporated on 26.02.2004

with an authorized equity capital of Rs. 1 Crore with the objective

to setup a chain of Super Stores across the Country.

Negotiations are in progress for strategic alliance with the

prospective foreign partner for operations of large format Retail

Outlets in India.

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 has picked up 12% equity stake in NCDEX at Rs. 13.6

Crore 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 ICICI Bank, LIC,

NABARD and NSE. Other major shareholders are PNB, CRISIL and

Canara Bank.



(1.7) ACHIEVEMENTS UNDER VISION 2000

GLORIES OF VISION 2000

In the year 1993, IFFCO initiated major Expansion Projects for

all the four operating units by setting up new plants or by way

of expansion of existing plants.

By the year 1999, all the four projects of IFFCO were

completed at a cost of Rs. 2500 crore without any cost and

time overrun.

Investment to the equity capital were made from internal

resources of the Society

Production capacity of the Society was doubled.

EXPANSION PROJECTSAonla project completed ahead of schedule in Dec 1996 at a

cost of Rs. 955 crore. Commercial production started from

25.12.1996.

Project dedicated to the nation by the then Honourable Prime

Minister Shri Inder Kumar Gujaral on May 29, 1997.

Kalol Ammonia and Urea Plants Revamped in August 1997 at

an investment of Rs. 149.7 crore.

Revamped Kalol plants dedicated to the nation by the then

Honorable Union Home Minister Shri L.K. Advani on August 2,

1998.

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



IFFCO Phulpur is the largest Ammonia - Urea complex in the

world based on naphtha feedstock 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

Kandla project dedicated to the nation by the then Honorable

Home Minister Shri L.K. Advani on December 19, 1999.

INFRASTRUCTURE PROJECTSProject/Location Objective Estimated Cost

Jetty To handle liquid raw

Materials for Kandla

NPK/DAP unit

Rs. 24 Crore

(commissioned in

May’98)

Railway Box

Wagons

under “own your

wagon

scheme”.

336 wagons for

fertilizer

movements from

Kandla

unit

Rs. 40 Crore

Naphtha tank

Wagons

100 tank wagons for

movement of

Naphtha to

Phulpur Unit

Rs. 15 Crore



(1.8) MISSION 2005

JOINT VENTURES

Phosphoric Acid Expansion Project in Senegal

Joint Venture partners in Industries Chemique du Senegal

(ICS), Senegal

Govt. of India, IFFCO, SPIC

Old Phosphoric acid plant : 3,30,000 TPA P2O5

P2O5 exported to IFFCO : 2,50,000 TPA

New phosphoric acid plant

Capacity of the new plant : 330,000 TPA

P2O5

Commercial production started : 1.2.2002

IFFCO’s equity (expansion project) : USD 30 million

Buy back after expansion : 5,50,000 TPA P2O5

DIVERSIFICATION

IFFCO-TOKIO GENERAL INSURANCE CO. LTD.

Diversified into General Insurance due to

• Tremendous potential available

• To serve the insurance needs of farmers

• IFFCO’s 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

PARTNERS IN ITGI

Joint Venture Partner : Millea Asia

Total Equity : Rs. 220 crore

IFFCO : 72.64 %

Millea Asia : 26 %

IPL : 1.36 %

CREDIT RATINGS ASSIGNED TO IFFCOCRISIL Ratings:

Assigned Governance and Value Creation (GVC) rating at

“GVC Level 2” to IFFCO.

Assigned a “P1+” rating to IFFCO’s Rs. 100 Crore Commercial

Paper Programmer.

Assigned the rating on IFFCO’s Long Term Borrowing

Programmer to “A/Stable”.

FITCH Ratings:

Assigned a National Short Term Rating of “F1+ (Ind)” to

IFFCO’s Rs. 100 crore Commercial Paper Programmer.

Assigned National Long –Term Rating of “AA+ (Ind)” to the

Long Term Debt Programme of IFFCO.



(1.9) Highlights during 2005-06

NCDEX, during the financial year 2005-2006, surpassed its

budgets in terms of value and volume of trade, number of

members and in the number of commodities offered for

trading.

The Exchange has received a very positive market response

to the contracts offered on its platforms.

The NCDEX has been moving towards creating strong

institutions, bringing technology and best practices to the

participants and users so that the commodity markets in India

can become globally competitive.

The Exchange has achieved trade value of Rs. 10,67,696

crores (one way) for the period from April 1, 2005 to March

31, 2006.

On March 23, 2006, the volumes at the Exchange touched a

new peak at Rs. 8561.24 crore.

There were 765 Trading and Clearing Members and 8000

terminals as on March 31, 2006.

Commodities traded on the Exchange stood at 46 including 39

agricultural products, 3 energy, 2 metals and 2 bullion

products as on March 31, 2006.

1,553 VSATs and 358 Leased Lines were activated as on

March 31, 2006.

303 price tickers have been installed till date for spot and

futures trading on a near realtime basis across various

locations in the country.

KANDLA



Highest ever yearly production of 26.86 lakh MT of NPK/DAP.

Previous best was 24.40 lakh MT in 2004-05.

The plant operated with lowest specific energy consumption of

0.222 Gcal/MT of P2O5.

Achieved P2O5 efficiency of 99.06% during 2005-06 as

compared to best of 99.51% in 2002-03.

HIGHLIGHTS OF ITGI OPERATIONS

Gross premium in 2005-06 - Rs. 896 crore

Profit before tax in 2005-06 - Rs. 24.06 crore

State Cooperative Banks, Cotton Cooperatives, Dairy

Cooperatives and Sugar Cooperatives are selling ITGI

products.

Sankat Haran Bima Yojana – Insurance with each bag of

IFFCO/IPL fertilizers.

HIGHLIGHTS OF 2005-06

Highest Production of Fertilizers 6.44 Million

MT

(Previous Best 6.15 million MT in 2004-05)

Highest Sales of Urea & NPK/DAP 8.19 Million

MT

(Previous Best 6.46 million MT in 2004-05)

Profit Before Tax USD

109 Million

(Best 182.13 million USD in 2002-03)

Profit After Tax USD 77 Million



(Best 125.74 million USD in 2002-03)

Highest Turnover USD 2244

Million

(Previous Best 1416.03 million USD in 2004-05)

(1.10) ACHIEVEMENTS

Cumulative Achievements Till Date As on 31st

March 2006

FERTILISER PRODUCTION 899.284 Lakh MT

FERTILISER SALE 946.394 Lakh MT

TURNOVER Rs. 69512 Crore

PROFIT BEFORE TAX Rs. 5813.1 Crore

PROFIT AFTER TAX Rs. 4561.8 Crore

CONTRIBUTION TO EXCHEQUER Rs. 3791.3 Crore

KANDLA UNIT

YEAR OF COMMISSIONING : 1975

INVESTMENT : Rs. 24.26 Cr.

YEAR OF FIRST EXPANSION : 1981


YEAR OF SECOND EXPANSION : 1999




PRODUCT CAPACITY TECHNOLOGY

TPD TPA

‘ P2O5’ 2890 9,10,100 FOUR STREAMS (A,B,C & D)

BASED ON

TVA SLURRY GRANULATION PROCESS.

TWO STREAMS (E & F) BASED ON AZF

PIPE REACTOR TECHNOLOGY.

‘N’ 11153,51,540



CUMULATIVE ACHIEVEMENTS 31st March 2006

FERTILISER PRODUCTION 89.93 Million MT

FERTILISER SALE 94.64 Million MT

TURNOVER USD 15690 Million

PROFIT BEFORE TAX USD 1315 Million

PROFIT AFTER TAX USD 1030 Million

(1.11) IFFCO CASH AWARDS IN CO-

OPERATION

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 is 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 honored

with “Sahakarita Bandhu Awards” up to year 2003-04.



(2.0) {A} WHAT IS PRODUCTION ?

Production is a process by which goods and

services are

created.

{B} WHAT IS PRODUCTION

MANAGEMENT ?

Production mgt. is the process of planning ,

organizing ,

directing , and controlling the activities of the

production

function.The production function is the

conversion of

row-materials into finished production

(2.1) GROWTH 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. 881.3 3372.8



5

Dec.’97 3217.

5

881.3 4098.8

Aug.’99 3217.

5

881.3 4817.6

Apr.’01 3689.

4

1973.6 5663.0

Apr.’02 3689.

4

2191.1 5880.5

Apr.’04 3689.

4

2415.4 6104.8

Sep.’05 3689.

4

4335.0 8024.4

(2.2) PRODUCTION PERFORMANCE

UNIT PLANT 2K1-02 2K2-03 2K3-04 2K4-05 2K5-06

KANDLA 10:26:26 4.01 2.80 2.32 3.87

5.83

12:32:16 5.29 5.80 6.23 7.63

11.23

DAP 11.30 15.02 12.46 12.91 9.81

NPK/DAP20.60 23.62 21.01 24.40 26.87



(2.3) STREAM DAYS ACHIEVED

UNIT PLANT 2K1-02 2K2-03 2K3-04 2K4-05

2K5-06

KANDLA TRAIN A 324 314 312 300

299

TRAIN B 323 318 305 317

317

TRAIN C 303 341 256 322

309

TRAIN D 308 297 293 296

329

TRAIN E 296 326 261 290

316

TRAIN F 298 311 256 285

321

AVERAGE 308 318 280@ 301

315

@ Low due to shortage of raw material

(2.4) CAPACITY UTILISATION

UNIT PRODUCT 2K1-02 2K2-03 2K3-04 2K4-05

2K5-06



KALOL UREA 101 99 88 102

100

PHULPUR-I UREA 93 100 98 103

100

PHULPUR-II UREA 99 100 98 100

102

AONLA-I UREA 82 100 100 100

100

AONLA-II UREA 100 100 100 100

101

KANDLA # P2O5 109 115 101 103

106

TOTAL N 95 102 98 101

102

# Annual Capacity enhanced from 8.25 LMT to 9.10 LMT w.e.f.

01.04.2004



(2.5) BIO-FERTILISERS

PRODYCTION OF BIO-FERTILISERS

CORDET - PHULPUR & KALOL

(Annual Capacity 75 MT & 165 MT) (Qty in MT)

STRAIN 2001-02 2002-03 2003-04 2004-05

2005-06

Rhizobium 3.81 5.50 5.39 7.37 18.76

Azotobacter 55.37 56.22 56.73 120.20 159.28

PSM 72.07 71.17 71.24 172.77 228.42

Azospirillium 0.37 0.34 3.14 8.36 14.86

Aectobacter 0.00 0.00 0.00 30.43 9.80

Total 131.62 133.23 136.50 339.13 431.12

Production

Capacity 175.49 177.64 182.00 141.30 179.63

Utilization (%)

CORDET- KALOL commissioned w.e.f. 16.02.2004 with annual

capacity of 165 MT.



(3.0) WHAT IS MEAN BY H.R.M. ? We should first review what managers do most experts agree that there are five basic function all managers perform ,planning,organizing ,staffing,leading and controlling.In total,these function represent the management process.Some of the specific activities in volved in each function include

(3.1) TOTAL EMPLOYEES CHARTS

TOTAL NO. EMPLOYEES OF IFFCOYEARS 2001-

022002-03

2003-04

2004-05

2005-06

NO. OF EMPLOYEES

6326

6125

5977

5752

5612



(3.2) CLASSFICATION OF EMPLOYEES

SKILLED WORKERS :-

Under this category may come the

purechasing assistant,cashier,receipts clerk

etc.

SEMISKILLED WORKERS :-

This category comprises daftaris,file clerks office

boys etc.

(3.3) HUMAN RESOURCEIt provides 100% attendance award to the workers.

Training is provided to employees to make them more

efficient and skillful.

Bonus is provided on Diwali to the employees.

There are 12,000 working in the company.

There is canteen facility for all the employees.

(3.4) TIME KEEPING SYSTEM

Time keeping is the most important part of any company.

The process of company runs 24 hrs.

The shift of working is divided into 3 parts.

Shift

7:00 am to 3:00 pm



3:00 pm to 11:00 pm

11:00 pm to 7:00 am

(3.5) WELFARE ACTIVITIES

The function of the welfare department is basically to be

engaged in the welfare of employees the function of the

welfare department is as under.

IFFCO company provides canteen facilities to the

employees, where all are treated equally.

The arrangement of cricket matches and cultural

programs are hold for the entertainment of the workers. Also

monthly home visit is taken at the houses of the company

employees.

(3.6) TRAINING & DEVELOPMENT

While discussing regarding the training provided to the

employees by the company, we should remember the words of

peter Drucker “ An institute that can’t produce it’s own

manager will die”.



Training provides efficiency, skills and ability and

confidence to the worker for doing the work. So, it is an

essential and basic part of each and every organization or

company to train their workers.

According to the Micheal Armstrong “Training is the

systematic modification of behavior through learning which

occurs as a result of education, instruction, development and

planned experience”.



(4.1) SERVICE TO FARMERS

Agricultural Extension and fertilizer use promotion programmers

are an integral part of the marketing activity. Programmers are

conducted at Area/State/Zonal offices under the guidance of

agricultural scientists.

Programmers undertaken are:

Balanced Fertilization programmers.

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 Audiovisual aids.

Other Social Activities/Development Programmers

include

Supply of fodder in draught prone areas

Veterinary Checkup and Distribution of Medicines

Human Health Checkup and Distribution of Medicines

Providing drinking water facilities

Assistance to School / School children

Watershed development projects

(4.2) Collateral Management Services Ltd.

(NCMSL)

IFFCO and NCDEX have also promoted a subsidiary

company by the name of National Collateral Management



Services Limited (NCMSL) on 28th September 2004 with

objective of:

Providing end- to -end Collateral Risk Management Solutions

Accreditation / Grading of Warehouses

Empanelment of Graders / Certifiers

Facilitating structures for Commodity Lending

Insurance tie up and adequate liability coverage

Other major shareholders are ICICI Bank, Canara Bank,

Punjab National Bank, Corporation Bank, Bank of India, HDFC

Bank, HAFED and Karur Vysya Bank

(4.3) CO-OPERATIVE RURAL DEVELOPMENT

TRUST

PROMOTED BY IFFCO

LOCATIONS

KALOL (GUJARAT),

PHULPUR (U.P.),

KANDLA (GUJARAT),

ACTIVITIES OF CORDET

Farmers’ Training

Soil Testing

Bio Fertiliser Production

Demonstration Farming

Seed Multiplication



(4.4) SANKAT HARAN BIMA YOJANA

With the purchase of each bag of IFFCO/IPL fertilizer from

Cooperative Society/FSC, the buyer is automatically covered

against accident up to an amount of Rs. 4000/- for one year

Maximum liability limited to Rs. 1 lakh irrespective of the

number of bags purchased

Premium @ Re1/- per bag paid by respective manufacturer

Cash receipt is evidence of insurance cover

(4.5) Commitment to Better Environment &

Quality Management

Kalol, Phulpur, Aonla and Kandla units hold ISO-14001

Certificate for Environment Management System.

Kalol, Phulpur, Aonla and Marketing Division have received

ISO-9000 for Quality Management.



(5.0) {A} WHAT IS MARKETING ?

Marketing deals with identifying and meeting

human and social needs one of the shortest

definitions of marketing is meeting needs profitably.

{B} WHAT IS MARKETING

MANAGEMENT ?

Marketing is an organizational function and a set

of process for creating, communicating and delivering

values to customers and for managing customer

relationship in ways that benefit the organization and

its stake holders.

(5.1) Marketing Department

Distribution of fertilizers mainly through the Cooperative

System:

State level Apex Cooperative Marketing Federation acts as

wholesaler

Direct supplies to Societies in some States

IFFCO-NCDC Cooperative Societies

Small quantities to institutional agencies like Agro

Industries Corporation etc

158 IFFCO Farmers Service Centers



(5.2) Marketing Ter ritories of Iffco

(5.3) Distribution & Warehousing

TRANSPORTATION

Both by Rail (87%) and Road (13%)

WAREHOUSING

Federations & Cooperative Godowns,

Central Warehousing Corporation (CWC) and

State Warehousing Corporation (SWC)


MARKETING

CENTRAL

OFFICE

NORTH CENTRAL

ZONE (LUCKNOW)

NORTH ZONE

(CHANDIGARH)

SOUTH ZONE (BANGALORE

)

WEST ZONE (BHOPAL)

EAST ZONE(KOLKATA)

BIHAR, UP, JHARKHAND UTTARANCH

AL

PUN, HAR, RAJ, J&K, HP

AP, TN, KAR, KERALA

GUJ, MP, MAH,

CHHATTISGADH

ASSAM, ORISSA,

W.B.


(5.4) HIGHLIGHTS OF 2005-06MARKETING DIVISION

Society achieved highest ever sales of 81.95 lakh MT of

fertilizers during 2005-06. Previous best was 64.64 lakh MT in

2004-05.

Society achieved highest ever sales of 50.13 lakh MT of

Urea and highest ever 31.82 lakh MT NPK/DAP during 2005-06.

Previous best was 37.02 lakh MT of Urea during 2003-04 and

27.94 lakh MT of NPK/DAP during 2004-05.



(6.1) SALES PERFORMANCEPRODUCT 2K1-02 2K2-03 2K3-04 2K4-05

2K5-06

UREA OWN 35.70 36.53 37.02 35.85

37.40

IMPORTS 0.16 20.00 0.0 0.85

12.73

TOTAL 35.85 36.72 37.02 36.70

50.13

10:26:26 3.44 3.13 2.51

4.16 5.61

12:32:16 5.01 4.95 6.80

8.45 10.95

DAP OWN 11.34 14.52 13.84 14.63*

9.56

IMPORTS 0.87 0.79 0.37 0.71

5.70

TOTAL 12.21 15.31 14.21 15.34

15.26

NPK/DAP TOTAL 20.66 23.39 23.52 27.94

31.82

TOTAL 56.51 60.11 60.54 64.64

81.95 FERS.

* Includes 45,970 MT produced at GFCL

(6.2) SALES OF BIO – FERTILISERS



STRAIN 2K1-02 2K2-03 2K3-04 2K4-05 2K5-

06

Rhizobium 3.47 5.72 3.50 8.88 18.40

Azotobacter 59.59 59.69 49.08 125.59

152.11

PSM 81.33 74.25 63.41 165.13 217.13

Azospirillium 0.37 0.31 2.32 9.22

14.88

Aectobacter 0.00 0.00 0.00 24.98

14.19

Total Sale 144.76 139.97 118.31 333.80

416.71



(6.3) HIGHLIGHTS OF 2005-06

Profit Before Tax Rs. 481.89 Crore

(Best Rs. 807.09 crore in 2002-03) Profit After Tax Rs. 341.35 Crore

(Best Rs. 557.21 crore in 2002-03) Highest Turnover Rs. 9942.93 Crore

(Previous Best Rs. 7396.98 crore in 2004-05)

(6.4) SALES DURING KHARIF SEASON

PRODUCT 2001 2002 2003

2004 2005

UREA 18.79 17.71 17.65

17.12 20.37

NPK 1.54 1.43 0.91 1.65 2.90

10:26:26

NPK 2.24 2.27 2.28 2.48 3.21

12:32:16

NPK TOTAL 3.78 3.70 3.19 4.13

6.11

DAP 5.41 5.74 5.19

4.55 4.73

TOTAL 9.18 9.45 8.37 8.68 10.84

NPK/DAP

TOTAL 27.98 27.16 26.02

25.80 31.20

FERTS.



(6.5) SALES DURING RABI SEASON

PRODUCT 2001-02 2002-03 2003-04 2004-05

2005-06

UREA 17.06 19.02 19.37

19.58 29.76

NPK 1.90 1.68 1.60 2.50 2.71

10:26:26

NPK 2.77 2.68 4.52 5.97 7.74

12:32:16

NPK 4.68 4.36 6.12 8.47

10.45

TOTAL

DAP 6.80 9.57 9.03 10.79

10.53

TOTAL 11.48 13.92 15.14

19.26 20.98

NPK/DAP

TOTAL 28.54 32.95 34.52

38.84 50.75

FERTS.



(7.0) {A} WHAT IS FINANCIAL ?

Finace may be defined as the art and science of managing

money.the major areas of finance are (1) financial services and

(2) managerial finance/corporate finance/financial management.

{B} WHAT IS FINANCIAL

MANAGEMENT ?

While financial services is concerned with the desing and

delivery of advice and financial products to indiviouals. Business

and geverments within the areas of banking and related

institutions. Personal financial planning investments. Real

estatc,insurance and so on financial management.

(7.1) FINANCIAL PERFORMANCE

2K1-02 2K2-03 2K3-04 2K4-05 2K5-06 Turnover 5281.95 6274.92 5090.08 7396.98

9942.93 Profit Before Tax 371.15 807.09 512.70 470.92

481.89 Income Tax 62.77 249.88 183.04 151.28

140.54 Profit After Tax 308.38 557.21 329.67 319.64

341.35 Share Capital 419.84 444.49 461.90 421.31 422.51 Reser Ves And 2365.93 2829.02 2647.68* 2879.84

3132.66 Surplus Networth 2785.77 3273.51 3109.58 3301.15

3555.39 Contribution to 304.97 507.00 501.00 497.00 604.28 Exchequer Nnet Assets 3983.87 4346.82 4528.94 4369.49

9049.17Employed



Investments 266.22 442.22 695.08 690.73 776.16

(7.2) FINANCIAL PERFORMANCE (USD Million)

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

TURNOVER

1191.9

5

1416.0

3

1148.6

5

1669.2

4

2243.7

8

PROFIT BEFORE TAX 83.76 182.13 115.70 106.27 108.75

PROFIT AFTER TAX 69.59 125.74 74.40 72.13 77.03

SHARE CAPITAL 94.74 100.31 104.23 95.08 95.35

RESERVES & SURPLUS 533.91 638.41 597.49 649.88 706.93

NETWORTH 628.65 738.72 701.72 744.96 802.33

NET ASSETS EMPLOYED 899.02 980.93

1022.0

2 986.04

2042.0

8

INVESTMENTS 60.08 99.79 156.86 155.87 175.15



Godavari Fertilizers and Chemicals Ltd (GFCL)

Paid up share capital : Rs. 32 Crore

IFFCO’s Equity : Rs. 8.25 Crore

Percentage of Equity held : 25.8 %

Plant Site : Kakinada

Product : DAP

Indian Potash Ltd (IPL)


Percentage of Equity held : 34%

Activity : Marketing of Potash and

imported



fertilizers

Industries Chimiques du Senegal (ICS) I & II

IFFCO’s Equity : Rs 161.53 Crore

Percentage of Equity held : 19.47 %

Plant Site : Darou, Senegal

Product : Phosphoric Acid, NPK Fertilizers

IFFCO - TOKIO General Insurance Company Ltd. (ITGI)


Percentage of Equity held : 72.6%

Activity : General Insurance

Oman India Fertiliser Company (OMIFCO)



Plant Site : Sur, Oman

Product : Ammonia, Urea

Indo Egyptian Fertiliser Co.(IEFC)

Project Cost : US$ 325 million

Debt : Equity Ratio : 70 : 30

IFFCO’s Equity : 76%

El Nasr Mining Co. : 24%

Activity : Phos. Acid Plant

National Commodity and Derivative Exchange (NCDEX)





Activity : On Line Trading in commodity

futures

National Collateral Management Services Ltd. (NCMSL)

IFFCO’s Equity : Rs. 4 Crore

Present percentage of Equity held : 11.76%

Activity : Collateral Risk Management

Solutions

IFFCO Chhattisgarh Power Ltd

Project Cost : Rs. 4500 Crore

Debt : Equity Ratio : 70 : 30

IFFCO Equity : 74%

CSEB : 26%

Activity : Power Generation (1000 MW)

Kisan International Trading FZE

Investment : Rs. 119.80 Crore

Location : Dubai

Activity : Special purpose vehicle(SPV) for

shipping,logistics and

investments in new

overseas Joint Ventures.

Others

Indian Farm Forestry Development



Corporation (IFFDC) : Rs. 510 Lakhs

Maharashtra State Coop. Bank Ltd. : Rs. 10 Lakh

IFFCO Kisan Bazar : Rs. 5 Lakh

Coop. Bank of India Ltd. : Rs. 5 Lakh

Indian Tourism Coop. Ltd. : Rs. 1 Lakh

National Films & Fine Arts Coop. Ltd.: Rs. 1 Lakh

(7.3) PRODUCTION OF KPN AT KANDLA

YEAR2

2

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

PROD. 93010

0

85970

0

85450

0

11492

00

17059

50



PRODUCTION

2001-02, 930100, 17%

2002-03, 859700, 16%

2003-04, 854500, 16%

2004-05, 1149200, 21%

2005-06, 1705950, 30% 2001-02

2002-03

2003-04

2004-05

2005-06

(7.4) VALUE ADDITION

Annual negative balance for large no. of nutrients in the soil - a

threat to sustainable agriculture.Survey reveals

• Replenishment of the depleted nutrients

• Partial or completely missing

Large percentage of the samples from cultivated areas have

shown deficiency of zinc and boron

Value added phosphatic fertilisers with zinc micro-nutrients

proposed to be produced at Kandla for field trial

N : P : K : Zn

I) NPK Grade - I (Z) 10 : 26 : 26 : 0.5

II) NPK Grade -II(Z) 12 : 32 : 16 : 0.5



(Trial launched)

Fortified NP/NPK grades with boron (applied for registration in

FCO)

N : P : K : B

I)NPK Grade - I (B) 10 : 26 : 26 : 0.3

II)NPK Grade-II (B) 12 : 32 : 16 : 0.3

III)DAP (B) 18 : 46 : 0 : 0.3

Sr

No.

Project Year Investmen

t

Activitie

s

1 KANDLA 1975 Rs. 24.26

Cr.

NPK/DAP

2 KANDLA EXP. 1 1981 Rs. 28.60

Cr.

----do----

3 KANDLA EXP. 2 1999 Rs. 205.30

Cr.

----do----

(7.5) SHARE CAPITAL

(As on 31ST March 2006)

(Rs Cr.)

Authorized Share Capital : 1000.00

Subscribed and : 422.51

Paid up Capital

(All Share Capital by Cooperatives only)



(8.1) CERTIFICATE



CONCLUSION

We have visited the Parle products Pvt. Ltd & IFFCO. The

response of each and every department of both companies was

very appreciable the departmental heads have provided the

best possible information and have helped us by their best

efforts, practical experience is very essential for any of the

management student, and by this industrial visit, I have learnt

much about the industrial process, which may not be gained by

the books only.

Due to this industrial visit only I can get the benefit of

visiting and adopting the knowledge by the famous and no: 1

company is very effective and good, their products are of best

quality, and price charging is also done very considerably.



BIBLIOGRAPHY

Web Site:

www.parleproducts.com

www.iffco.nic . in

www.iffco.com

Books:

Marketing Management – hilip Kottler.

Financial Management – S.Y.BBA Production Management – hilip Kottler. Human Resource Mgt – S.Y.BBA


http://www.iffco.com/

http://www.iffco.nic/

http://www.parleproducts.com/

parle product report.doc

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