CHAPTER - IVshodhganga.inflibnet.ac.in/bitstream/10603/73454/13/13...115 CHAPTER - IV PROFILE OF...

115

CHAPTER - IV

PROFILE OF SELECTED FERTILIZER

COMPANIES IN GUJARAT

4.1 GUJARAT STATE FERTILIZERS AND

CHEMICALS LIMITED

4.2 GUJARAT NARMADA VALLEY FERTILIZERS

AND CHEMICALS LIMITED

4.3 INDIAN FARMERS FERTILIZER CO-OPERATIVE

LIMITED

4.4 KRISHAK BHARTI CO-OPERATIVE LIMITED

�� References

116

4.1 GUJARAT STATE FERTILIZERS AND CHEMICALS

LIMITED

117

�� HISTORICAL BACKGROUND

The Birth of A Giant (1962-1972)

GSFC was incorporated in 1962 and its plants went into

production of fertilizers in 1967. In its very first decade of existence,

GSFC became known for its path-breaking achievements, to name a

few, it was the first industrial complex in the country set up in joint

sector, first company to set up fertilizer plants within a short span of two

years of getting requisite approvals, it was the first industrial project to

secure direct and active equity participation of farmers, the first fertilizer

unit FFto get assistance from IDBI's Assistance Fund, and the first

Company to adopt the Steam Naphtha Reforming process for

manufacture of Ammonia.

GSFC has set up the first DAP fertilizer complex in India at Sikka,

Jamnagar on the west coast of Gujarat. Its technical edge as well as

engineering resources acquired during its very first decade has been

catalysts in providing impetus to its expansion and diversification

strategies spread over the next four decades.

New Frontiers of Diversification (1972-2002)

Originally conceived and started as a Fertilizer company with an

objective of providing agricultural boost to the farmers in the State of

Gujarat and at the same time making Gujarat self-sufficient in fertilizers.

Visualizing the market pulse well in time, the Company, as a structured

diversification strategy, ventured into the foray of industrial chemicals

segment. Having this objective in mind, Company's integrated complex

at Vadodara has been so designed and structured that it shall be more

or less self sustained by using the by-products generated by its fertilizer

group of plants.

118

GSFC was the first Company in India to establish a Caprolactam

plant in the year 1974. This was the apt time when Caprolactam was in

great demand mainly for the manufacture of downstream products like

nylon yarn, tyre cord etc. As a way forward, it led to expansion into

Nylon-6 production. GSFC was also the first to recover Argon gas from

purge gas, thus entering into the foray of industrial gases by making

Argon gas which is prominently used in welding and this was done way

back in the year 1981.

GSFC also has to its credit of setting up India's first Melamine

plant. The expansion and diversification of GSFC's product portfolio

unfolded new growth vistas to the nation by providing much needed

fertilizers for agricultural growth and the chemicals for industrial growth.

An Impressive Growth Story (2002-2014)

It is rightly said that you need to take one step backwards if you

want to stride forward and this adage equally applied to GSFC and the

phase between 1999-2002 was a phase of one step backwards which in

fact facilitated endless strides forward. GSFC never ever then looked

back. The period between 1999 to 2001 was a phase where it was

veering on the brink of a cash crunch. This phase of GSFC was

attributed to many reasons. To name a few are increased energy costs,

technical hiccups and delayed commissioning of new Ammonia plant

after a gestation period of eight years and resultant increased project

cost, excess outflow of interest etc. This new Ammonia plant continued

with technical snags which could stabilize only by end of 2003. The

liquidity problems further compounded due to expansion of DAP

capacity at Sikka (1999-2003) which required infusion of Rs. 180

Crores. The Government of India also recovered subsidy amounting to

Rs. 375 Crores. The drought during this period further depressed prices

and demand for all products. There was also a shortage of gas that

resulted into use of costly LSHS and Naphtha. The margins in

Melamine and Caprolactam, GSFC's blue chip products, were low in

this period due to depressed industrial demand internationally.

119

The turnaround story of the Company began from FY 2003-2004.

Under able leadership and timely intervention of Hon. Chief Minister

Shri Narendra Modi in taking certain bold policy decisions, the company

could work on the strategies to enhance its productivity, bring down

costs through technical innovations and improved management

information systems. The revival measures were fully supported by

Govt. of Gujarat and the Company was given complete autonomy to roll

back to the track. Finally the major factors that brought company out of

red were improvement in the Operational Efficiency, Reducing Cost of

Sales, Regenerating Confidence in Suppliers & Customers, Moral

boosting of employees, strategizing foray in the global market,

consolidating through further Expansions, focusing on ideal product mix

to insulate performance from downtrends etc.

Govt. of Gujarat provided the proactive support to GSFC, which

brought out a scheme of deferred sales tax of an amount up to Rs. 45

Crores per year for five years, thus improving the Company's cash flow

position. Another important breakthrough was the increased availability

of natural gas in Gujarat, from GAIL, GSPC and Gujarat Gas, which

substituted costly Naphtha and LSHS.

All these measures finally resulted into GSFC becoming a

financially strong, profitable and stable Company. Coming out of

Corporate Debt Restructuring (CDR), GSFC approached the CDR Cell,

this time to accelerate the debt repayment. The debt, which was

scheduled to be completely paid by 2013, was re-paid in 2006. As a

step towards backward integration as well as a part of global trotting for

feed-stocks has participated in a joint venture in Tunisia viz. Tunisian

Indian Fertilizers S.A. (TIFFERT), this would ensure the consistent

supply 1, 80,000 TPA of additional Phosphoric Acid per annum required

for the production of DAP. GSFC has also acquired a strategic stake in

M/s Karnalyte Resources Incorporation in Canada. This secures

availability of Potash for the Company in long run.

120

The Company during the period of past half decade has entered

the Second Green Revolution phase by developing alternative energy

generation facilities and initiating the spread of drip irrigation systems in

Gujarat. The Company has provided valuable services to farmers by

way of agricultural inputs and marketing support. Entering the second

green revolution, GSFC continued its role of encouraging agricultural

growth by developing and supplying Bio-Fertilizers and Bio-technology

products to the farmers under one roof. The Company has also

advanced Tissue Culture facilities to support horticulture and other

crops. In order to provide farmers with high-tech inputs, GSFC has

formed 100% subsidiary GSFC Agrotech Limited for research and

production of liquid bio-fertilizers, Plant Growth Promoters-Sardar Amin

Granules/liquid, Tissue culture and Seeds.

GSFC also promoted Gujarat Green Revolution Company Limited

(GGRC) to promote drip-irrigation and sprinkler irrigation systems

amongst farmers so as to optimize the usage of water and

implementation/monitoring the Government subsidy scheme in co-

ordination with GSFC. GSFC is also contemplating an investment outlay

of approx. Rs. 8,000 Crores for setting up an integrated fertilizer and

petrochemicals complex at Dahej.

�� VISION AND MISSION

Vision

GSFC’s vision is to efficiently produce an array of valuable,

superior and reliable products that enrich lives of millions in farms,

industries and homes. The Company envisions operating in synergy

with its environment and seeks to be recognized as an enterprise that is

for total customer satisfaction and creates credible long term value for

its stakeholders. Integrity and transparency remains the corner-stones

of Company's governance.

121

Mission

GSFC’s mission of becoming a world-class, multi-product, eco-

friendly global company contributing to the nation as well as for the

welfare of society at large.

The Company seeks to enrich lives;

� Of customers by providing goods and services that add value to farm

enterprises, industries and homes.

� Of stakeholders by continuously adding value by managing

responsibly, sensibly and maintaining ethical standards of highest

quality.

� Of neighborhood community by working in synergy with its

environment and enriching the bio-diversity.

� Of employees by providing them a work environment that fosters

growth, learning, achievement, team work and a perfect work-life

balance.

�� MILESTONES AND ACHIEVEMENTS

The major achievements of the company during the able

leadership of Shri Narendra Modi, as Chief Minister can be summarized

as under:

�� GSFC could achieve consistent profitability record and it has

touched its highest profits during the period 2001-02 to 2012-13. Its

net profit touched ever highest level of Rs.759 Crores during 2011-

12 and the total profit after tax during 2001-02 to 2012-13 was

Rs.3594 Crores, as compared to total profit after tax of Rs. 1166

Crores earned during the period 1988-89 to 1999-2000.

�� Significantly, GSFC, which was under loss in the year 2001-02 and

2002-03 on account of various factors, not only turned around but

also earned its highest ever profit. Turn-over per share increased

from Rs.255/- to Rs.665/- per share.

122

�� During this period, GSFC diversified into new chemicals like MEK-

Oxime and other raw materials such as Phosphoric Acid, Potassic

Acid, etc. It also diversified and increased significantly its Fertilizers

portfolio. Its Fertilizers manufacturing capacity today stands at 1.7

Million Tons. It also added significantly to its wind energy portfolio

which stands at over 150 MW. The total projects invested by GSFC

during the period of Hon’ble Chief Minister are Rs. 8340 Crores.

�� This performance of the company is brought out amply by

investments made by domestic institutional investors as well as

foreign institutional investors which stand at close to 40% of its total

paid up capital.

�� AWARDS

GSFC has won total 48 national and international awards during the

period from 2003-04 to 2014-15.

�� REGISTERED OFFICE

Address : Fertilizernagar - 391 750

District : Vadodara District

State : Gujarat

Pin Code : 391750

Telephone No. : 0265-2242451, 0265-2242651

Fax No. : 0265-2240966, 0265-2240119

Email : [email protected]

Internet : http://www.gsfclimited.com

123

�� PLANT LOCATION

Factory/plant : Polymers Unit: Nandesari GIDC

Vadodara District, Gujarat – India.

Factory/plant : Sikka Unit: Moti Khawdi

Jamnagar, Gujarat – India.

Factory/plant : Fibre Unit: Kuwarda

Surat District, Gujarat – India.

Factory/plant : Vadodara Unit: Fertilizernagar

Vadodara District – 391750, Gujarat –

India.

�� PRODUCTS

�� Industrial Products

1. Anhydrous Ammonia

2. Argon Gas

3. Caprolactam

4. Melamine

5. Methanol

6. Methyl Ethyl Ketoxime

7. Nylon-6

8. Oleum

9. Sulphuric Acid

�� Fertilizer

1. Urea

2. Ammonium Sulphate

3. Di-Ammonium Phosphate

4. APS - 20:20:0:13

5. NPK - 12:32:16

6. NPK - 10_26_26

124

7. Water Soluble Fertilizers

8. Micro Mix

9. Gypsum

�� Agro Products

1. Sardaramin Granules/Liquid

2. Bio-Fertilizers

3. Plant Tissue Culture

4. Seeds

5. Sardar Nirmal

�� Trading

1. Pesticides

2. Zinc-Sulphate

3. MOP

4. SSP

5. Magnesium Sulphate

125

AT A GLANCE

Year of incorporation 15 Feb. 1962

Nature of industry Fertilizer

Type of organization Joint Sector

Size of industry Large Scale

Chairman & Managing Director Dr. S K Nanda, IAS

Email address [email protected]

Name of website www.gsfclimited.com

Nature of activity Manufacturing, Sales & Export of

Fertilizers

Company secretary CS V. V. VACHHRAJANI

Auditors M/s. Deloitte Haskins & Sells,

Vadodara

Bankers Bank of Baroda

Central Bank of India

Bank of India

Dena Bank

Indian Bank

Vijaya Bank

Yes Bank Ltd.

State Bank of India

Indian Overseas Bank

Axis Bank Ltd.

ICICI Bank Ltd.

Royal Bank of Scotland N.V.

Registrar and share transfer

agent

M C S Ltd. 88, Neelam Apartments

Samptrao Colony, Above Chhappan

Bhog Vadodra – 390007. Gujarat

Total Awards 48 National and International

Financial data of the year 2013-14

Turnover (including other

income)

5586.03 Crores

Total Expenditure 4900.16 Crores

Profit before tax 495.42 Crores

Profit after tax 342.17 Crores

Earnings per share 8.59 Rs.

Listing on stock exchanges The Stock Exchange, Mumbai, National

Stock Exchange of India Ltd.

126

4.2 GUJARAT NARMADA VALLEY FERTILIZERS AND

CHEMICALS LIMITED

127


1976

The Company was incorporated on 10th May, in Bharuch,

Gujarat. The Company was promoted by Government of Gujarat and

Gujarat State Fertilizers Co., Ltd. (GSFC). The Company Manufacture

chemical fertilizers, particularly ammonia and urea and petrochemicals.

Contracts were entered into by GSFC and were transferred in the name

of the Company; (i) with Texaco Development Corporation, U.S.A.

(Texaco) for synthesis gas generation process; (ii) with Haldor Topsoe,

Denmark (Topsoe) for ammonia synthesis process; (iii) with Linde

Aktiengesellschaft, West Germany (Linde) for Ractisol wash process

and (iv) with Snamprogetti, Italy for know-how and license agreement

with Linde which was subsequently transferred in the name of the

Company.

GSFC entered into a supply and engineering contract with Linde

which was subsequently transferred in the name of the Company.

Under this agreement, Linde was to supply all the imported equipments

to the Company for its ammonia plant. GSFC entered into know-how

agreement, supply agreement and engineering agreement with

Snamprogetti, Italy for the urea plant. These agreements were

subsequently transferred in the name of the Company.

1986

Agreements were entered into with Toyo Engineering Corporation

of Japan, for the acquisition of technical know-how, basic engineering

and imported equipments, etc for this expansion. A letter of intent was

received for the manufacture of 10,000 tonnes per year of formic acid.

An EPABX project with a capacity to manufacture 20,000 lines of digital

electronic automatic exchange with C-dot technology was

commissioned at Roopnagar, Valia. The Company undertook to

128

produce an enhanced model i.e. V - III system of EPABX. The

Memorandum of Understanding for the project was signed with Mozak

International Inc., and a new Company in the name of `Emirates

Narmada Industries p.l.c.' was registered in U.K.

1997

The Company undertook to expand the plant's capacity by putting

up a new plant of 100 million tonnes per day capacity with an

investment of Rs 32 crores. The Company undertook to set up a third

gasifier train to augment ammonia capacity by addition of 20,000 MTA

of additional ammonia at a cost of Rs 50 crores. The Gujarat Narmada

Valley Fertilisers Company (GNFC) is seriously contemplating

withdrawal from Videocon Narmada Electronics Limited, GNFC's joint

venture with the Videocon group.

The company has an installed capacity of 17 lakh glass shells for

colour picture tubes. CRT displays and monitors and 2.5 lakh glass

parts (panels and funnels) and glass bulbs for black and white television

picture tubes and monochrome monitor tubes. The joint venture

between Videocon and GNFC manufactured only 2.9 lakh glass shells

(panels and funnels) for colour picture tubes during the last financial

year (1994-95) as against the installed capacity of 17 lakh shells and

there was no production of glass parts (panels and funnels) for black

and white television picture tubes.

Gujarat Narmada Valley Fertilisers Company Ltd (GNFC),

Bharuch, engaged in the manufacture of chemical fertilisers viz

Narmada Urea, Phos and CAN, chemicals of like acetic acid, formic

acid, methanol, nitric acid and electronics products such as printed

circuit boards and digital switching systems, has reported encouraging

performance for the year 1996-97. GNFC has signed an agreement with

Plinke for technology and supply of equipment. Gujarat Narmada Valley

Fertilizers Company (GNFC) has entered into an agreement with Plinke

129

of Germany to set up a 33,000 tpa concentrated nitric acid plant at its

Bharuch complex in Gujarat. The total capacity will now be doubled to

66,000 tpa.

The Bharuch-based Rs 1,200 crore Gujarat Narmada Valley

Fertiliser Co Ltd (GNFC), market leader in acetic acid, methanol and

formic acid, is doubling its acetic acid production capacity from 50,000

to one lakh tonnes per annum (TPA) in technical collaboration with B P

Chemicals of the UK. Its subsidiary company, Narmada Chematur

Petrochemicals Ltd (NCPL), has successfully commissioned 20,000

million tonnes per annum (mtpa) aniline plant operating at more than

100 per cent capacity.

2002

Gujarat Narmada Valley Fertilizer Company Ltd (GNFC) has

informed that Shri R C Sharma has ceased to be a Director of the

Company wef January 16, 2002 vide his resignation. Gujarat Narmada

Valley Fertilizers Company Ltd has informed that consequent upon the

retirement of Shri A D Desai from the services of Government of Gujarat

(GOG) upon attaining the age of superannuation, GOG has withdrawn

his nomination from the Board of the company. As such he ceased to

be the Director and Managing Director of the company. Shri Balwant

Singh, Director of the company has assumed the additional charge of

Managing Director with effect from October 31, 2002. He will be formally

appointed Managing Director of the company in due course.

Gujarat Narmada Valley Fertilizers Ltd has informed that

consequent upon the withdrawal of Nomination by Government of

Gujarat, Shri Pradipsinh Jadeja ceased to be a Non-rotational Director

as also the Chairman of the company with effect from November 21,

2002. Further, Shri G Subbarao has been nominated by Government of

Gujarat as Non-rotational Director on the Board of the company with

effect from November 22, 2002.

130

2011

Gujarat Narmada Valley Fertilizers Company Ltd has 300 MTPD

Weak Nitric Acid-II Project of the Company has been completed at a

cost of about Rs. 262 Crores. WNA-II Project has started its operation.

Shri Atanu Chakraborty, IAS is appointed as Additional Director on the

Board of the Company.

2012

The Change of Name of the Company from Gujarat Narinada

Valley Fertilizers Company Limited to Gujarat Narmada Valley

Fertilizers & Chemicals Limited.

2013

Gujarat Narmada Valley Fertilizers & Chemicals Ltd has informed

that the Board of Directors of the Company have recommended a

Dividend of Rs. 3.50 per equity share of Rs.10/- each (@ 35%) to the

shareholders for the year ended March 31, 2013 Gujarat Narmada

Valley Fertilizers & Chemicals Ltd has informed that Dr Hasmukh Adhia,

IAS has been appointed as Additional Director on the Board of the

Company w.e.f. March 25, 2013.

2014

Gujarat Narmada Valley Fertilizers & Chemicals Ltd has informed

that 50,000 MTPA Toluene Di-lsocynate - II Project at Dahej established

by the Company has been completed and the commercial production

has been declared with effect from March 24, 2014. Gujarat Narmada

Valley Fertilizers & Chemicals Ltd has informed that the Board of

Directors of the Company recommended a Dividend of Rs.3.50 per

equity share of Rs.10/- each (@ 35%) to the shareholders for the year

ended March 31, 2014.

131


Vision

To be a technology driven, environmentally responsible Joint

Sector Company manufacturing Fertilizers, Commodity and Speciality

Chemicals maintaining highest standards of operational excellence and

innovation for creating sustainable value for all stakeholders

Mission

We shall --

�� Be the leading provider of Chemicals and Agricultural inputs through

adoption of State of the Art Technologies and Business Processes.

�� Have a firm commitment to quality, environment, health and safety.

�� Enrich human resources and promote teamwork, innovativeness and

integrity.

�� Achieve sustainable economic growth based on corporate

excellence driven by ethical business practices, professionalism,

dynamism and social responsibility.


The major achievements of the company can be summarized below:

�� Set up the world's largest single stream, fuel oil based Ammonia -

Urea plant.

�� All fertilizers under the brand name of Narmada, along with

extensive support activities, have been well accepted by the

country's farmer community.

�� India's largest producer of Formic Acid, Acetic acid and Methanol.

�� India's only manufacturer of Glacial Acetic Acid through the cutting-

edge Methanol route.

�� India's largest single stream plant of Aniline.

�� The only manufacturer of Toluene Di-isocyanate in South East Asia.

132

�� Record capacity utilizations in all plants, defying the vintage through

ingeniously innovative maintenance measures.

�� Development of the first indigenous, eco-friendly technology for H2S

removal, CATSOL, a much awarded product of the Company's R&D

labs.

�� AWARDS

GNFC has won total 23 national and international awards.


Address : Narmadanagar

District : Bharuch District

State : Gujarat

Pin Code : 392015

Telephone No. : +91 - 2642 - 247001, 247002

Fax No. : 02642-247084 02642-247057


Internet : http://www.gnfc.in


Factory/plant : P. O. Narmadanagar

Bharuch District - 392015

Gujarat – India.

Factory/plant : GNFC INFOTOWER 3rd Floor,

Bodakdev, Gandhinagar - Sarkhej Highway

Ahmedabad - 380054

Gujarat – India.

133

�� PRODUCTS

�� Fertilizers

1. Urea

2. Neem Urea

3. Calcium Ammonium Nitrate

4. Ammonium Nitrophosphate

5. Diammonium Phosphate

6. Muriate of Potash

7. Single Super Phosphate

�� Chemical

1. Methanol

2. Acetic Acid(Glacial)

3. Toluene Di - isocyanate

4. Aniline

5. Concentrated Nitric Acid

6. Weak Nitric Acid

7. Formic Acid

8. Ammonium Nitrate

9. Ethyl Acetate

10. Methyl Formate

11. Calcium Carbonate

12. Nitrobenzene

13. Catsol

14. Other Products

134

AT A GLANCE

Year of incorporation 10 May 1976


Type of organization Joint Sector


Chairman Shri D. J. Pandian, IAS


Name of website www.gnfc.in


Fertilizers & Chemicals

Company secretary Shri R. B. Panchal

Auditors M/s. Deloitte Haskins & Sells

Bankers N.A.


agent

Guj Narmada Valley Fertilizers, P. O.

Narmadanagar, Dist Bharuch-392015

Total Awards 23 national and international



income)

4847.19 Crores




Earnings per share 18.81 Rs.

Listing on stock exchanges The Stock Exchange, Mumbai,

National Stock Exchange of India Ltd.

135

4.3 INDIAN FARMERS FERTILIZER CO-OPERATIVE LIMITED

136


During mid- sixties the Co-operative sector in India was

responsible for distribution of 70 per cent 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 co-operative

society was conceived to specifically cater to the requirements of

farmers. It was a unique venture in which the farmers of the country

through their own Co-operative Societies created this new institution to

safeguard their interests. The numbers of Co-operative Societies

associated with IFFCO have risen from 57 in 1967 to 39,824 at present.

Indian Farmers Fertilizer Co-operative Limited (IFFCO) was

registered on November 3, 1967 as a Multi-unit Co-operative Society.

On the enactment of the Multistate Co-operative Societies act 1984 &

2002, the Society is deemed to be registered as a Multistate Co-

operative Society. The Society is primarily engaged in production and

distribution of fertilisers. The byelaws of the Society provide a broad

frame work for the activities of IFFCO as a Co-operative 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 programme of

all the four plants under overall aegis of IFFCO VISION 2000. The

expansion projects at Aonla, Kalol, Phulpur and Kandla were completed

on schedule. All the projects conceived as part of VISION 2000 had

been realised without time or cost overruns. All the production units of

137

IFFCO have established a reputation for excellence and quality.

Another growth path was chalked out to realise newer dreams and

greater heights through Vision 2010. As part of this vision, IFFCO has

acquired fertiliser unit at Paradeep in Orissa in September 2005. As a

result of these expansion projects and acquisition, IFFCO's annual

capacity has been increased to 3.69 million tonnes of Urea and

NPK/DAP equivalent to 1.71 million tonnes. In pursuit of its growth and

development, IFFCO had embarked upon and successfully

implemented its Corporate Plans, ‘Mission 2005’ and ‘Vision 2010’.

These plans have resulted in IFFCO becoming one of the largest

producer and marketer of Chemical fertilisers by expansion of its

existing Units, setting up Joint Venture Companies Overseas and

Diversification into new Sectors.

IFFCO has now visualized a comprehensive plan titled ‘Vision-

2015’ which is presently under implementation.

IFFCO has made strategic investments in several joint ventures.

Indian Potash Ltd (IPL) in India, Industries Chimiques du Senegal (ICS)

in Senegal, Oman India Fertiliser Company (OMIFCO) in Oman and

Jordan India Fertiliser Company (JIFCO) are important fertiliser joint

ventures. As part of strategic diversification, IFFCO has entered into

several key sectors. IFFCO-Tokio General Insurance Ltd (ITGI) is a

foray into general insurance sector. Through ITGI, IFFCO has

formulated new services of benefit to farmers. 'Sankat Haran Bima

Yojana' provides free insurance cover to farmers along with each bag of

IFFCO fertiliser 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 is yet another foray to move into

core area of power. IFFCO is also behind several other companies with

the sole intention of benefitting farmers.

138

The distribution of IFFCO's fertiliser is undertaken through over

39824 Co-operative Societies. The entire activities of Distribution, Sales

and Promotion are co-ordinate 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 158 Farmers Service Centre (FSC). IFFCO

has promoted several institutions and organisations to work for the

welfare of farmers, strengthening co-operative movement, improve

Indian agriculture. Indian Farm Forestry Development Co-operative Ltd

(IFFDC), Co-operative Rural Development Trust (CORDET), IFFCO

Foundation, Kisan Sewa Trust belongs to this category. An ambitious

project 'ICT Initiatives for Farmers and Co-operatives' is launched to

promote e-culture in rural India. IFFCO obsessively nurtures its relations

with farmers and undertakes a large number of agricultural extension

activities for their benefit every year.

At IFFCO, the thirst for ever improving the services to farmers

and member co-operatives is insatiable, commitment to quality is

insurmountable and harnessing of mother earths' bounty to drive hunger

away from India in an ecologically sustainable manner is the prime

mission. All that IFFCO cherishes in exchange is an everlasting smile

on the face of Indian Farmer who forms the moving spirit behind this

mission.

IFFCO, to day, is a leading player in India's fertiliser industry and

is making substantial contribution to the efforts of Indian Government to

increase food grain production in the country.

139


Vision

To augment the incremental incomes of farmers by helping them

to increase their crop productivity through balanced use of energy

efficient fertilizers, maintain the environmental health and to make co-

operative societies economically & democratically strong for

professionalized services to the farming community to ensure an

empowered rural India.

Mission

IFFCO's mission is "to enable Indian farmers to prosper through

timely supply of reliable, high quality agricultural inputs and services in

an environmentally sustainable manner and to undertake other activities

to improve their welfare."

�� To provide to farmers high quality fertilizers 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 stake holders.

�� Building a value driven organisation with an improved and

responsive customer focus. A true commitment to transparency,

accountability and integrity in principle and practice.

140

�� 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 Co-operative Society committed for fostering co-operative

movement in the country.

�� Emerging as a dynamic organisation, focusing on strategic

strengths, seizing opportunities for generating and building upon

past success, enhancing earnings to maximize the shareholders'

value.

�� AWARDS

IFFCO has won total 44 national and international awards.


Address : IFFCO Sadan,

C-1, District Centre,

Saket Place,

New Delhi - 110017

Telephone No. : 011-42592626, 26542625

Fax No. : 011-42592650


Internet : http://www.iffco.in


Factory/plant : IFFCO, Kalol,

Kasturi Nagar,

Gandhi Nagar-382423,

Gujarat.

141

Factory/plant : IFFCO, Kandla Unit,

Post Box No.12,

Gandhidham - 370201,

Kandla (Kuchchh)

Gujarat.

Factory/plant : IFFCO,Phulpur,

P.O. - Ghiyanagar,

Allahabad - 212404

Uttar Pradesh-INDIA.

Factory/plant : IFFCO Aonla Unit,

Paul Pothen Nagar,

P.O. IFFCO Township,

Bareilly - 243403,

Uttar Pradesh-INDIA.

Factory/plant : IFFCO - Paradeep,

Village Musadia,

PO Paradeep

Dist Jagatsinghpur-754142

Orissa-INDIA.

�� PRODUCTS

1. Urea

2. NPK, NP

3. DAP

4. BIO Fertilisers

5. Water Soluble Fertliser

6. Zinc Sulphate Monohydrate

7. Sulphur Bentonite

142

AT A GLANCE

Year of Incorporation 3 Nov. 1967


Type of organization Co-operative Sector


Chairman Mr. Balvinder Singh Nakai


Name of website www.iffco.in


Fertilizers

Company secretary N.A

Auditors M/s. S.K. Mittal & Co.

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

M/s. B.C. Jain & Co.

M/s. Arun Singh & Co.

M/s. V.K. Dhingra & Co.

Bankers Bank of Baroda

State Bank of India

Indian Overseas Bank

HDFC Bank Ltd.

ICICI Bank Ltd.

Standard Chartered Bank

IDBI Bank Ltd.

Punjab National Bank


agent

N.A

Total Awards 44 national and International



income)

21,382.13 Crores

Total Expenditure 20,974.35 Crores



Earnings Per Share 748 Rs.

Listing on stock exchanges NO

143

4.4 KRISHAK BHARTI CO-OPERATIVE LIMITED

144


Krishak Bharati Co-operative Ltd (KRIBHCO) is a Multi-State Co-

operative Society deemed to be registered under the Multi-State Co-

operative Societies (MSCS) Act, 2002. The Government of India

through the Department of Fertilizers was a member of KRIBHCO but

its equity holding was reduced to NIL on 4th July 2013 under the

provisions of the MSCS Act 2002. KRIBHCO is not owned nor

controlled nor financed by the Government of India / Any State

Governments.

KRIBHCO has setup a Fertilizer Complex to manufacture Urea,

Ammonia & Bio-fertilizers at Hazira in the State of Gujarat, on the bank

of river Tapti, 15 Kms from Surat city on Surat – Hazira State Highway.

Late Smt. Indira Gandhi, former Prime Minister of India laid the

Foundation Stone on February 5, 1982. KRIBHCO was incorporated on

17th April 1980 as a national level Multi State Co-operative Society to

implement first gas based “state-of-the-art” high capacity Fertilizer

Complex consisting of 2 x 1350 MTPD Ammonia plants and 4 x 1100

MTPD Urea plants each with annual installed capacity of 8.91 Lakh MT

Ammonia and 14.52 lakh MT of Urea at Hazira District-Surat, Gujarat,

India based on natural gas from Bombay High/ South Bassein. Hazira

fertilizer complex was commissioned in 1985 in record time with saving

of Rs. 90 crore in project cost.

In an endeavor to make constant improvements, KRIBHCO

implemented various schemes to enhance its capacity and improve the

energy consumption. Capacities of ammonia & urea plants were

reassessed to 2x1520 MTPD Ammonia and 4x 1310 MTPD Urea with

annual installed capacity of 10.03 Lakh MT ammonia and 17.29 lakh MT

of urea.

145

The Hazira Fertilizer Complex was subsequently revamped in

2013 to increase its production capacity by 4.65 LMTPA of Urea. After

the revamp, the rated capacity has been enhanced to 2x3325 MTPD

Urea (21.95 LMTPA) and 2 x 1890 MTPD Ammonia (12.47 LMTPA).

With this, the Hazira fertilizer complex has became largest single

location urea plant in India.

KRIBHCO has also made realignment in its corporate strategy

and internal operations revamping to meet the challenges in the

liberalized/globalized economy. As a part of above initiative, KRIBHCO

entered into overseas Joint Ventures, diversification into Power Sector,

Logistics Business, etc:

�� In 2005, KRIBHCO’s Joint Venture project with Oman Oil Company

came on stream in Sultanate of Oman. KRIBHCO holds 25% equity

in OMIFCO.

�� In 2006, KRIBHCO acquired Sahajanpur Fertiliser Complex through

its joint venture company KSFL. KRIBHCO holds 85% of the share in

the JV. KRIBHCO has management control and marketing rights of

total production.

�� KRIBHCO has diversified into power sector by investing in Gujarat

State Energy Generation (GSEG).

�� KRIBHCO incorporated Kribhco Infrastructure Limited, a 100%

subsidiary to venture into logistics business.

�� KRIBHCO holds 2.34% equity in Nagarjuna Oil Refinery Limited and

1.84% in Nagarjuna Fertilizers and Chemicals Ltd.

�� KRIBHCO holds 5% equity in Indian Commodity Exchange (ICEX).

146


Vision

To become a world class organization that represents the farmer

community and maximizes their returns through specialization in

agricultural inputs, rural need based products and other diversified

businesses that maximize stakeholders’ value.

Mission

To act as a catalyst to agricultural and rural development by

selecting, financing and managing projects that are both socially

desirable and commercially profitable.

�� To strengthen co-operative system.

�� To enhance the urea installed capacity and increasing its market

share.

�� To ensure optimum utilization of existing plant and machinery.

�� To diversify into other core sectors like Power, Port, Infrastructure,

Rural Retail, etc.

�� Transfer of technology for modern farming and improving farmers

livelihood.

�� To educate and train farmers, provide free testing facilities for soil

nutrients and irrigation water.


�� Dr. W.S.Guleria awarded Gold Medal by Indian Society of Agronomy

in recognition of his outstanding contribution to Agronomy.

�� Shri A.K.Singh awarded as Chief Information officer (CIO) of the

year -2014 by IT-NEXT.

�� The In-House Journal "Kribhco News" receives Award from PRSI in

its 35th All India Public Relations Conference.

147


Address : KRIBHCO Bhawan,

A-60, Kailash Colony

New Delhi - 110048, India

Telephone No. : 0120-2534631, 2534632

Fax No. : 0120-2537113


Internet : http://www.kribhco.net


Factory/plant : KRIBHCO, Hajira

KRIBHCO Nagar

District-Surat

Gujarat.

�� PRODUCTS

1. Urea

2. Ammonia

3. Liquid Argon Gas

4. Bio-Fertilizers

5. Seeds

148

AT A GLANCE

Year of incorporation 17 April 1980


Type of organization Co-operative Sector


Chairman Shri Vaghjibhai Raghunathbhai Patel


Name of website www.kribhco.net


Fertilizers

Company secretary N.A

Auditors M/s. S.K. Mehta & Co.

M/s. G.K. Choksi & Co.

M/s. Chaturvedi & Co.

Bankers ICICI Bank Ltd.


agent

N.A



income)

5264.35 Crores




Earnings Per Shares N.A

Listing on stock exchanges NO

149

�� REFERENCES

1. Annual Reports of Gujarat State Fertilizers and Chemicals Limited

during the period from 2004-05 to 2013-14.

2. Annual Reports of Gujarat Narmada Valley Fertilizers and

Chemicals Limited during the period from 2004-05 to 2013-14.

3. Annual Reports of Indian Farmers Fertilizer Co-operative Limited

during the period from 2004-05 to 2013-14.

4. Annual Reports of Krishak Bharti Co-operative Limited during the

period from 2004-05 to 2013-14.

5. www.gsfclimited.com

6. www.gnfc.in

7. www.iffco.in

8. www.kribhco.net

9. www.moneycontrol.com

10. www.indiainfoline.com

CHAPTER - IVshodhganga.inflibnet.ac.in/bitstream/10603/73454/13/13...115 CHAPTER - IV PROFILE OF...

Documents

Transcript of CHAPTER - IVshodhganga.inflibnet.ac.in/bitstream/10603/73454/13/13...115 CHAPTER - IV PROFILE OF...