DI/ERP

OF

INDIAN FARMERS FERTILISER CO-OPERATIVE LIMITED

(IFFCO)

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KALOL UNIT COMPANY PROFILEGeneral Information:-Name of the Company

Indian Farmers’ Fertilizer cooperative Limited. Address

Indian Farmers Fertilizer Cooperative Limited KALOL, (P.O.) Kasturi Nagar, Gandhi Nagar, PIN 382423 (Gujarat), INDIA. Year of Establishment

3rd nov 1967Classification of Industry LARGE SCALE INDUSTRY Registered Office 34, Nehru Place New Delhi-110 019

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HISTORY

In India when a shortage of fertilizer was found, Mr. Pal pothan had established IFFCO on 3rd nov. 1967 under the multi unit co-operative societies Act 1942.

IFFCO unit was established in Kalol because constant supply of Gas and the facility of water is easily available by the ONGC.

IFFCO has been started with the 1000 members. Production process was started in 1975 in IFFCO. The whole plant of kalol is made of Rs. 67 crore. In initial days government invested 74% out of 100% and other investment was made by taking a loan from UTI, LIC etc.

IFFCO has a membership base of 36,617 (as on March 31, 2003) agricultural cooperatives throughout the country. It is engaged in the production and marketing of chemical fertilizer’s. Its main objective is to provide quality fertilizer and technical know-how on agriculture to the farmers through its member-cooperatives. The IFFCO has emerged as a fertilizers giant and the undisputed market leader in India for the supply of nitrogenous and NP/NPK complex fertilizer’s. It operates four large fertilizers plants located in Gujarat and Uttar Pradesh. Keeping in line with the wishes of its members and in tandem with the market needs it has diversified its activities by promoting a general insurance company in collaboration with the Tokio Marine Insurance Company of Japan.

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ORGANISATION STRUCTURE OF COMPANY

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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"

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 cooperative societies economically and democratically strong for professionalized services to the farming community to ensure an empowered rural India.

MAIN AIM Strengthening management and participatory character of the Indian Cooperative Movement by using duly tested and appropriate consultancy, advisory and technological interventions sourced from within the country and abroad and in accordance of the Cooperative Principles and in harmony with the law and culture of the land.

APPROACH

To achieve our mission, IFFCO as a cooperative society, undertakes several activities covering a broad spectrum of areas to promote welfare of member cooperatives and farmers. The activities envisaged to be covered are exhaustively defined in IFFCO’s Bye-laws

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ORGANISATION CHART OF IFFCO

PRODUCTION UNIT

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Board of Directors

Chairman & Vice Chairman

Managing Director

Director Marketing

Director Finance

Sr. Executive Director Technical

Executive Director (P& A)

Executive Dir. Planning & development

PRODUCTS

UreaCapacity 0.55 MilloinAmmoniaCapacity 0.36 MillionDry-iceLiquid co2

RAW MATERIAL

Natural GasAssociated GasNaphtha GasBore Well WaterFuel OilElectric Power

PRODUCTION PROCESS Urea Process Ammonia Process Npk / Dap

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Quality Initiatives

IFFCO Kalol is conscious about quality of it's inputs and products. A special quality control cell has been established with the state of the art testing facilities. All the raw materials and consumable used in the process are tested against the specifications standards laid down.

Samples are drawn from various points from the urea/ammonia manufacturing process to optimise output efficiency, minimize losses and to achieve consistency in the product quality. Special care is taken for analysing packing materials and strict quality control is exercised in accepting the same.

Quality control cell has got microprocessor controlled gas chromatographs, HPLC with ion analysers, ppm gas analysers, flame photometer, mettler balances, tensile strength testers and complete set of instruments for environmental and stack analysis.

Quality of product at destinated points is reconfirmed by sampling and testing. Sample drawn by field staff are analysed by quality control cell an feed back is given to field staff.

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TECHNICAL SPECIFICATION OF FINAL PRODUCT

Urea is the most important nitrogenous fertiliser in the country because of its high N content (46%N). Besides its use in the crops, it is used as a cattle feed supplement to replace a part of protein requirements. It has also numerous industrial uses notably for production of plastics.

Specification of urea as per Fertiliser Control Order

1. Moisture % by weight, maximum 1.02. Total N % by weight (on dry basis) minimum 46.03. Biuret % by weight, maximum 1.54. Particle size

90% of the material shall pass through 2.8 mm IS sieve and not less than 80% by weight shall be retained on 1 mm IS sieve.

If urea is applied to bare soil surface significant quantities of ammonia may be lost by volatilisation because of its rapid hydrolysis to ammonium carbonate. The hydrolysis of urea can be altered by the use of several compound called urease inhibitors. These inhibitors inactivate the enzyme and thereby prevent the rapid hydrolysis of urea when it is added to soil. The rapid hydrolysis of urea in soils is also responsible for ammonia injury to seedlings if large quantities of this material placed with or too close to the seed. Proper placement of fertiliser urea with respect to seed can eliminate this difficulty

Product wise Production Performance

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Total fertilizer production

RESEARCH & DEVELOPMENT

IFFCO Kalol unit has in house R & D set up established since the inception stage of the plant. The R & D laboratory was recognised by Department of Scientific and Industrial Research under Ministry of Science and Technology, Government of India, as in house R & D laboratory in 1985. Initially the R & D work was mainly to meet the plant trouble shooting requirement and for resolving corrosion and microbilological fouling problems in cooling water system. Presently R & D laboratory is working on the production of biofertilisers using area speific bacterial strains. Over a period of time, IFFCO have worked on the following R & D projects : Value addition product in Urea fertiliser.

› Smooth change over of chromate to non chromate treatment for cooling tower.

› Use of biotechnology for improvemnt of effluent quality.

› Use of urease enzyme for the sand consolidation of oil wells for ONGC.

› Corrossion and microbiological study of cooling water and MDEA system

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MARKETING DEPARTMENT

DISTRIBUTION CHANNEL

Distribution of fertilizer mainly through the cooperative system.There are 167 iffco farmers service centers.

State level Apex cooperative Marketing Federation

Some other NCDC Cooperative Societies

Institutional agencies of fertilizers

Farmers(Consumers)

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MARKETING BRANCHES

COMPETITORS

(1) Gujarat state fertilizer company (GSFC)(2) Gujarat Narmada valley fertilizer co. ltd. (GNFC) (3) Hindustan Lever ltd. (HLL)(4) The fertilizer corporation of India ltd. (FCI)(5) Hindustan fertilizer corporation ltd. (HFC)(6) Madras fertilizer ltd. (MFL)(7) E.D.I Passy (India) ltd.(8) Coromandel fertilizer ltd. (CFL)(9) Hindustan copper ltd. (HCL)(10) National fertilizer ltd. (NFL)(11) Krishak Bharti cooperative ltd. (KRIBHACO)

Promotional Activities

Agricultural Extention Programmes are an integral part of IFFCO's marketing activities. Various promotional and educational Programmes are conducted by the field personnel

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under the able guidance of Area/State/Zonal Agronomists, Some of the programmes undertaken are:

1. Programmes to promote balanced use of fertilisers

2.Village Adoption Programme for bringing all round socio-economic development.

3. Farmers Training at various agricultural institutes and research farms

4. Extension Education Programmes

5. Soil Testing cum Publicity vans

The farmers education programmes of IFFCO are broadly classified as under:

Demonstrations Field Programmes Seed Multiplication Village Adoption.

Total sale of fertilizers

Sales performance

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HUMAN RESOURCE DEPARTMENT INTRODUCTION

Human resource department is very important form the point of view of the organization. It plays a vital role in the organization. If the human resource is satisfied in every department then there will be improvement in the organization. It helps in the reduction of cost of production and increase the quality of production. By giving the best facility and training they become assets of the company. The human resource management is concerned with developing of human.

“Human resource management is that face of management which deals with the effective control and use of man power as distinguished from other resources of power.”

According to French “Human resource management is the recruitment, selection, development and utilization of the accommodation to human resources by organization. The human resources of an organization consist of all individual regardless of their role who are engaged in any of the organizational activities.”

CLASSIFICATION OF EMPLOYEES

› SKILLED EMPLOYEES:- The skill employee have certain kind of education qualification and they are mostly taken in company for specific purpose. Skilled employees like B.Pharm,chemical engineer,M.B.A. etc.

› UNSKILLED EMPLOYEES:-

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Unskilled employees are those who have employed only for human power they have no managerial skilled.

› SEMISKILLED EMPLOYEES:-

Semiskilled employees like B.Sc.,Diploma engineer etc.

VARIOUS OTHER FUCTIONS OF HR DEPARTMENT:-

Recruitment & selection processTraining & developmentWages & salaryPromotionDemotion & TransferLabour welfare schemeMedical assistance scheme CanteenTransport facilityGroup’s life insurance scheme

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FINANCE DEPARTMENT

INTRODUCTION

In a modern money using economy, finance may be defined as provision of money at the time it is wanted. It is undoubtly the”life blood” of the business. The ambition plans of businessman would remain drams unless, adequate money is available. In older days the labor was more important relatively than capital. Therefore capital was not of much consequence. The industrial revolution changed the requirement of capital. All these development made the industry “capital intensive”. Therefore it is necessary to have sound capital structure.

The iffco’s finance department works quiet efficiently. Its all records are systematically recorded in the books of account

Organisation Structure

Supply Section

Note Sheet Payment

Work Order

FINANCE & ACCOUNT DEPARTMENT

BOOKS/FICC CELL

FINANCIAL CONCURRENCE

BILL SECTION

PAYROLL SECTION

PSL SECTION

Work contract

Imported supply

Indigenous supply

Service contract

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Line of Control in Finance & Account Department

Account Officers Junior Account officers Senior Accountant Junior Accountant

HOD/ C.M. (F & A)

Senior Manager (F& A)

Manager (Account)

Deputy Account Manager

Senior Account Officers

Senior Manager (F& A)

Manager (Account)

Manager (Account)

Manager (Account)

Deputy Account Manager

Deputy Account Manager

Deputy Account Manager

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PURCHASE PROCESS

The purchase process can be expressed as following:

INDENTOR

Material Purchase Requirement (MPR)Single stage

Enquiry Two stage

E- Procurement Manual (15 days) (21 days)

Opening

Quotation Comparative Statement (QCS)

Technically Acceptable L-1 Bidder

Order (With approval of competent authority)

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. OTHER ACTIVITIES OF IFFCO

(1) Oman India Fertiliser Project(2) IFFCO Kisan Sewa Trust (IKST)(3) IFFCO - Tokio General Insurance Company Limited (ITGI)(4) Indian Farm Forestry Development Cooperative (IFFDC)

MAJOR AWARDS RECEIVED

(1) Twelve Safety Awards from National Safety Council Bombay,Goi (2) Twenty four Safety Awards from Gujarat Safety Council, Baroda (3) Nineteen Awards for safety from National Safety Council, USA (4) Letter of Appreciation from GEB for Energy Conservation (5) Raj Bhasha Award for promoting Hindi and Shreshtra Shatabdi Shield by Rashtriya Hindi Academy (6) Six Awards for Best Overall Performance from FAI (7) Certificate of Honour from Gujarat Safety Council for 3 million man hours without accident (8) Four Awards for productivity from NPC (9) Six National Safety Awards from GOI(10)Three Awards for Best overall Performance from FAI(11) Two Awards for Technical Innovation from FAI(12) Award for Best Production Performance in Nitrogenous Fertiliser(13) Five National Energy Conservation Awards(14) Three Awards for Best Environmental Protection from FAI(15) TERI Corporate Environment Award(16) Best Environmental Excellence Award from Indo-German Genentech Foundation(17) Best Technical Paper Award by FAI

ENVIRONMENT - THE PRIME CONCERN

Harmonious living with the nature is the call for the day as environmental degradation is sounding catastrophic alarms for all the living things on the earth. The message is crisp and clear. Gifts of nature needs to be preserved for our well being and for the survival of our progeny. This was and has remained the guiding principle of IFFCO. As a part of concern for environment , a number of pollution control equipment and systems were installed along with the main plant at the time of inception.

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Further, in keeping pace with the changing trends, IFFCO have implemented new schemes and technology to combat pollution. Quality of liquid effluent is continuously monitored before it is used for gardening within the plant as well as for irrigation by the farmers of nearby villages. Flamingoes, the migratory birds with fiery wings have found safe abode at solar evaporation lagoons during winter season.

This conveys the quality of Environment Management system at IFFCO-Kalol. Ambient air quality is also monitored periodically at different locations of the factory premises. Green belt has been developed in and around the plant to keep the environment clean and one can feel that IFFCO-Kalol plant is in the garden.

ENVIRONMENTAL MANAGEMENT SYSTEM AT IFFCO KALOL

IFFCO-Kalol unit has sound environment management system comprising of following features:

1. Facilities for effluent treatment

2. Monitoring of environmental quality

3. Implementation of waste minimization / pollution abatement schemes

4. Well equipped laboratory and EPC cell

5. Green belt development

6. ISO 14001 Accreditation both for plant and township

7. Development of all around awareness regarding environmental issues.

INVESTMENTS OUTSIDE IFFCO

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› Godavari Fertilisers and Chemicals Ltd (GFCL) Paid up share capital : Rs. 32 Crore IFFCO’s Equity : Rs. 8 Crore Percentage of Equity held : 25.8 % Plant Site : Kakinada Product : DAP

› Indian Potash Ltd (IPL) IFFCO’s Equity : Rs. 2.68 Crore Percentage of Equity held : 34% Activity : Marketing of Potash and imported fertilisers

› Industries Chimiques du Senegal (ICS) I & II IFFCO’s Equity : US$ 43.4 Million Percentage of Equity held : 19.47 % Plant Site : Darou, Senegal Product : Phosphoric Acid, NPK Fertilisers

› IFFCO - TOKIO General Insurance Company Ltd. (ITGI) IFFCO’s Equity : Rs. 51.00 Crore Percentage of Equity held : 51% Activity : General Insurance

› Oman India Fertiliser Company (OMIFCO) IFFCO’s Equity : US$ 80 Million Percentage of Equity held : 25% Plant Site : Sur, Oman Product : Ammonia, Urea

› National Commodity and Derivative Exchange (NCDEX) IFFCO’s Equity : Rs. 3.6 Crore Percentage of Equity held : 12% Activity : On Line Trading in commodity futures

BIBLOGRAPHY

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I get information through internet facility. WWW.IFFCO.NIC.CO. WWW.GOOGLE.COM

I also get information from Book late of iffco industry and other information from Business Magazine.

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