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Transcript of Summer Internship Report Gourav Kumar Pandit 121234
A
SUMMER INTERNSHIP PROJECT REPORT
AT
Gujarat Narmada Valley Fertilizers & Chemicals Ahmedabad
A Project Report Submitted In Partial Fulfilment of the Requirements
For The Award of the
POST GRADUATE DIPLOMA IN MANAGEMENT
TO
M.S.RAMAIAH INSTITUTE OF MANAGEMENT
BY
Gourav Kumar Pandit
121234
PGDM (AUTONOMOUS) BATCH
2012-2014
Under the guidance of
Prof. Jamuna A.S
M.S.RAMAIAH INSTITUTE of MANAGEMENT
NEW BEL ROAD, BANGALORE-560054
Gujarat Narmada Valley Fertilizer & Chemical LTD
Promoted By Government of Gujarat
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Gujarat Narmada Valley Fertilizer & Chemical LTD
Promoted By Government of Gujarat
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STUDENT’S DECLARATION
I hereby declare that the Project Report titles ―A Study on E-Procurement and Vendor
Management at GNFC‖ conducted at Gujarat Narmada Valley Fertilizers and
Chemical LTD, BHARUCH. Under the guidance of Mr Ranjan Bhatt (Project
Manager) and Miss. Sarashar Khan (Executive E-Procurement) Submitted in Partial
fulfilment of the requirements for the degree of
POST GRADUATE DIPLOMA IN MANAGEMENT (AUTONOMOUS)
TO
M.S.RAMAIAH INSTITUTE OF MANAGEMENT
It is my original work and the same has not been submitted for the award of any other
Degree/Diploma/Fellowship or other similar titles or prizes.
Place: Bangalore GOURAV KUMAR PANDIT
Date: Reg. No: 121234
Gujarat Narmada Valley Fertilizer & Chemical LTD
Promoted By Government of Gujarat
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CERTIFICATE
This is to certify that the Project Report titled “A Study on E-Procurement and
Vendor Management at GNFC‖ conducted at Gujarat Narmada Valley Fertilizers
and Chemical LTD, BHARUCH, Submitted in partial fulfilment of the
requirements for the award of the degree of
POST GRADUATE DIPLOMA IN MANAGEMENT (AUTONOMOUS)
To
M.S.RAMAIAH INSTITUTE OF MANAGEMENT
Is a record of bonafide Training carried out under my supervision and guidance
and that no part of this report has been submitted for the award of any other
degree/diploma/fellowship or similar titles or prizes.
GUIDE:- Prof. Jamuna A.S
Signature:
Name: - Jamuna A.S
Qualifications: - M.A, MBA (HRD), M.Phil.
Gujarat Narmada Valley Fertilizer & Chemical LTD
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ACKNOWLEDGEMENT
I extend my special gratitude to our beloved Dean Shri Prof. H.Muralidharan &
Academic Head, Prof. Purnima Ramaswamy & Programme Head, Prof. Savita
Rani for inspiring me to take up this project.
I wish to acknowledge my sincere gratitude and indebtedness to my project guide
Prof. Jamuna A.S of M.S. RAMAIAH INSTITUTE OF MANAGEMENT
Bangalore for his valuable guidance and constructive suggestions in the preparation of
project report.
Gujarat Narmada Valley Fertilizer & Chemical LTD
Promoted By Government of Gujarat
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EXECUTIVE SUMMARY
Gujarat Narmada Valley Fertilizers and Chemical (GNFC) is promoted by
Government of Gujarat through GIIC(Gujarat Industrial Investment Corporation)
and were established in the year 1976, which is one of the ―NAVRATNA‖ companies
of Gujarat State. GNFC established itself firmly with diversified product portfolio
from its initial Fertilizer business to Chemical and then on to Information Technology.
The project is about ―A Study of E-Procurement and Vendor Management applied by
GNFC.‖ The reason for choosing these topic is to study how new technologies are
helping companies in their operations and making their business profitable.
Now a day‘s company is looking forward to use new technologies and expand their
business. Systematized study requires proper planning and implementation of the
same, this report explains the process of Vendor Management and their evaluation /
selection process, GNFC is a large scale industry so it‘s requires large quantity raw
materials and requires a good vendors or dealer so the product is reached to the end
user on time.
E-Procurement makes it possible to automate buying and selling over the internet.
Typically an e-Procurement-enabled website will have product comparisons across
vendors and various processes like tendering, auctioning, vendor management, and
catalogue and contract management. High-end e-procurement solutions allow
organizations to define their own processes in the form of workflows - thus utilizing
concepts of business process modelling.
And understanding how the E-procurement process is adopted by GNFC. And E-
procurement is very useful for each and every Government and Companies. It helps to
provide a transparency, using of proper technologies.
Gujarat Narmada Valley Fertilizer & Chemical LTD
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TABLE OF CONTENTS
CHAPTER I - INDUSTRY ANALYSIS
Agriculture sector in India
Fertilizers sectors in India
Information Technology sector in India
Nasscom Review of IT Sector in India
Porter‘s Five Force Model of Fertilizer
Porter‘s Five Force Model of Information Technology
CHAPTER II – COMPANY ANALYSIS
About The Company
Vision and Mission
Product & Services
Certificates and Policy
Awards and Achievement‘s
Distribution & Network
Competitors
Human Resource
Finance
Operation
5 S models at GNGC
SWOT Analysis
Corporate & Social Responsibility
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Chapter III - Discussion on Training
Roles and responsibilities
Description of tasks handled
Contribution to organization
Chapter IV – Analysis of Task/ Research Undertaken
Introduction and Background
Research Design
Statement of the Problem
Objective of research problem
Scope of the Study
Methodology (Flow charts)
Findings
Suggestions
Conclusions
Gujarat Narmada Valley Fertilizer & Chemical LTD
Promoted By Government of Gujarat
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CHAPTER-1
INDUSTRY ANALYSIS
Gujarat Narmada Valley Fertilizer & Chemical LTD
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INDIAN AGRICULTURE SECTOR
Indian Agriculture is one of the most important sectors in the economy of the country. Agriculture
in itself contributes more than 18.5 per cent of the Gross Domestic Product of the country and
around 60 per cent people of India are dependent on this sector.
The monsoon also has a very significant impact on the Indian agriculture. Because of the shortage
of irrigation system in Indian agriculture most of the farmers depend highly on rainfalls which is
uncertain. The amount of rain determines the nature of the crops and also the production. Indian
agriculture in the majority of the state is looked after by the State Governments rather than the
Central Government. Indian farmers don‘t get a sufficient supply of chemical fertilizer for
agriculture. The main objective of the fertilizer industry is to ensure the supply of primary and
secondary nutrients in the required quantities.
Indian Fertilizer Industry:-
India is primarily an agriculture based economy. The agricultural sector and its other associated
spheres provide employment to a large section of the country's population and contribute about 25%
to the GDP.
The Indian Fertilizer Industry is one of the allied sectors of the agricultural sphere. India has
emerged as the third largest producer of nitrogenous fertilizers. The adoption of back to back Five
Year plans has paved the way for self-sufficiency in the production of food grains. In fact
production has gone up to an extent that there is scope for the export of food grains. This surplus
has been facilitated by the use of chemical fertilizers.
Today, India stands as the third largest fertilizer consumer and producer of the world. It has been
observed that the subsidies on Indian fertilizer have been rising at a constant rate. This is due to the
rise in the cost of production and the inability of the government to raise the maximum retail price
of the fertilizers.
The increase in the production of fertilizers and its consumption acts as a major contributor to
overall agricultural development.
Contribution of Fertilizer industry in the Indian Economy:
Fertilizer industry has a significant good impact on the development of the Indian agriculture
sector. The following points may reflect its contribution.
1. Agricultural development:
With the development of fertilizer industry, Indian agricultural development has been made
possible. It has played a vital role in the green revolution.
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2. Capital Investment:
Fertilizer industry today has more than Rs. 5700 Cr investment and has become one of the
important industries of the economy.
3. Corporate Development:
In the last 30-40 years this industry has become a structured industry. It has made many joint
ventures, multinationals and co-operatives which is one of the unique characteristic of this industry
development in the nation.
4. Regional development:
Gujarat, Maharashtra, Punjab, Uttar Pradesh, Andhra, Assam, Bengal, Rajasthan, Bihar are the
states who have many plants of fertilizers. [These states‘ economy has a high impact of fertilizer
units.]
5. Employments:
This industry has provided shelter to 3.5 lakh families in the last fifty years directly and a number
of supporting industry during the last three decades.
Investment in the fertilizer sector:-
The fertilizer sector attracted huge investment in the past, particularly between mid-70‘s and 90‘s.
However, there was hardly any investment during the 10th Plan. The total investment in the
fertilizer sector by the end of 2005-06 was Rs.25, 923 crores. With the accelerated growth in the
Indian economy, other sectors have high rates of return on investment, but the fertilizer sector has
failed to attract more investment due to low returns.
To increase the capacity of urea by about 12 million tonnes to a total of 31.5 million tonnes by
2011-12, India will need to invest at least Rs.36, 000 crores in the sector at current capital costs.
Fertilizer Industry in India has mainly five sick units. They are badly in need of Coal /Gas/LPG. If
these units get raw material they will contribute to the agricultural sector of the nation. These sick
units include HFC, FCI, MFL, FACT and PPCL. Which are located in the Eastern Region of the
country [will result in some parity in the creation of production capacity of urea in the states of
Bihar, West Bengal, Chhattisgarh, Jharkhand and Orissa, which do not have any urea plant at
present]. It is envisaged that revival of these closed urea units in Eastern India will add an
additional urea capacity of 50 LMT per annum.
The reasons for the sickness of FACT are mainly that out-dated technology of the plant, high
energy consumption norms, large manpower and high fixed costs of the new ammonia plant (900
MTPD)
Gujarat Narmada Valley Fertilizer & Chemical LTD
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INDIAN INFORMATION TECHNOLOGY SECTOR
The Indian information technology sector continues to be one of the sunshine sectors of the Indian
economy showing rapid growth and promise. The information technology industry in India has
gained a brand identity as a knowledge economy due to its IT and ITES (IT Enabled Services)
sector. The information technology industry has become the most robust industries in the world. IT,
more than any other industry or economic fact, has an increased productivity, particularly in the
developed world, and therefore is a key driver of global economic growth.
Economies of scale and insatiable demand from both consumers and enterprises characterize this
rapidly growing sector. Economies of scale for the information technology industry are high. Unlike
other common industries, the IT sector is knowledge –based. Efficient utilization of skilled labour
forces in the It sector can help an economy achieve a rapid pace of economic growth. The IT
industry helps many other sectors in the growth process of the economy including the services and
manufacturing sectors.
The major segments of the industry are IT Services, Engineering Services, R&D Products, and
BPO Services. Much of the activity is centred on service offerings in Banking, Financial Services
and Insurance (BFSI), Hi-Tech and Telecom, Manufacturing, and Retail.
―India's top IT service providers‖ are Tata Consultancy Services, Infosys, Cognizant, Wipro, and
HCL Technologies. These IT service providers are readying plans to gain a bigger share of their
largest market, US, by aggressively chasing contracts being served by multinationals rivals. The
Indian top IT city is as Bangalore, Chennai, Hyderabad, Delhi, Mumbai, and Ahmedabad. Bangalore
is considered as Silicon Valley of India because it is leading IT exporter
Information technology and the Hardware and Software associated with the IT industry, are an
integral part of nearly every major global industry. Both software development and the hardware
involved in the IT industry include everything from computer systems and, to the design,
implementation, study and development of IT and management systems. Owing to its easy
accessibility and the wide range of IT products available, the demand for the IT services has
increased substantially over the years.
The IT sector has emerged as a major global source of both growth and
employment.
The IT industry can serve as a medium of E-governance, as it assures easy accessibility to
information. The use of information in the services sector improves operational efficiency and adds
to transparency.it also serves as a medium of skill formation. Information technology (IT) is defined
as the design, development, implementation and management of computer-based information
systems, particularly software application and computer hardware Today, it has grown to cover most
aspects of computing and technology.
Gujarat Narmada Valley Fertilizer & Chemical LTD
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IT professionals perform a variety of duties ranging from data management, networking, engineering
computer hardware, databases design, to the management and administration of entire systems. With
the already high penetration of conventional personal computer and network technology, coupled
with the growing convergence of information, communication and entertainment, the industry is now
keenly focused on the integration with other technologies such as mobile phones, automobile and
televisions etc., thereby increasing the demand for such jobs. The largest firms globally include
IBM, HP, DELL, and MICROSOFT.
The strong demand for electronics hardware and software in India has been fuelled by a variety of
drivers including the high growth rate of the economy, emergence of a vast domestic market catering
to the new generation of young consumers, a thriving middleclass populace with increasing
disposable incomes and a relatively low cost work force having advanced technical skills.
Indeed, the government has also identified growth of this sector as a thrust area as there remains
great expectation for significant growth. The Indian IT sector has also built a strong reputation for its
high standards of software development ability, service quality and information security in the
foreign market which has been acknowledged globally and has helped enhance buyer confidence.
The industry continues its drive to set global benchmarks in quality and information security through
a combination of provider and industry level initiatives and strengthening the overall frame works,
creating awareness wider adoption of standards and beat practice.
According to National Association of Software and Services Companies
(NASSCOM)
―IT industry has played a key role in putting India on the global map. The IT –BPO sector has
become one of the most significant growth catalysts for the Indian economy. In addition to fuelling
India‘s economy, this industry is also positively influencing the lives of its people through an active
direct and indirect contribution to various socio-economic parameters such as employment, standard
of living and diversity. The industry has played a significant role in transforming India‘s image from
a slow moving bureaucratic economy to a land of innovative entrepreneurs and a global player in
providing world class technology solutions and business services‖.
India is preferred for companies looking off shore their IT and back office functions .it also retains
its low-cost advantage and is financially attractive location when viewed in combination with the
business environment it offers and the availability of skilled people.
.
Gujarat Narmada Valley Fertilizer & Chemical LTD
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Porter’s Five Forces Model
Assessing the Balance of Power in a Business Situation:-
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Porter’s 5 Force Model Analysis
Porter’s Five Force Model for Fertilizer Industry
Bargaining Power of Suppliers:-
Threat of New Entrants (Moderate)
Potential (Reliance, Adani, Laxmi Niwas Mittal etc.) Potential entrants are retailers like GODREJ ADHAR and HARAYALI.
Processing of the raw material requires very large machinery & high processing cost, so it is
not easy for new entrant to cope up with this high investment.
Present co-operative fertilizer (like KRIBHCO and IFFCO) industries captured almost full
rural market getting fertilizer subsidies from government so it is difficult for new entrants to
maintain low price with high production cost.
India does not have potential rock phosphate reserve; it is completely dependent on import of
either rock phosphate or phosphoric acid or Di Ammonium Phosphate.
Bargaining Power of Customers (Medium):-
Spectrum of substitutes available to the farmers is large
Farmers can impose pressure on the government to provide more subsidies.
India is having different climatic conditions over different areas, so all over the year there is
high demand for fertilizers from different localities.
Very high demand & low productivity.
Lack of infrastructure & supply chain for rural India.
Threat of Substitutes(Medium):-
Bio-fertilizers
Manures
E.g. FYM, cattle dung
Organic Fertilizer
Green Manure
E.g. Vegetable and Household waste
Vermin-compost
E.g. Roundworms
Fertilizers given through leaves provided by pesticides, herbicides companies.
Gujarat Narmada Valley Fertilizer & Chemical LTD
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Power of Suppliers (Low) :-
Main source of the raw material for fertilizers production are the natural products.
For production of phosphatic fertilizers, in India there are very few sources of rock
phosphate & phosphoric acid available so this production completely dependent on
import of rock phosphate. Production of fertilizers requires lot of energy supply so it is completely dependent
on the private energy suppliers.
For production of MOP, there is no raw material available within the country so it
has to import completely.
Competitive Rivalry (High):-
Major market captured by public & co-operative companies.
Private companies trying to capture rural market.
Incentive competitiveness between private and public players.
Different suppliers of raw material used by different companies‟ leads to cost
competitiveness.
Companies come up with different products such as completely water soluble
fertilizers, fertilizers applied through drip and micro sprinkler, fertilizers with
micro nutrients so by use these fertilizers less wastage & more efficiency of
fertilizers increases.
Improved techniques & high yielding varieties which require less fertilizers used
by farmers so high competition for sale between different companies.
Gujarat Narmada Valley Fertilizer & Chemical LTD
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Porter’s Five Force Model for IT Sector
Power of Buyers:-
The Indian IT sector has a large numbers of players and few entry barriers for new entrants, Thus,
the buyer has many options to choose from and can clearly articulate their needs. However, the
bigger companies also enjoy the advantage of switching costs. It means that once a particular client
selects a particular company as its partner, it becomes dependent on the company for all its upgrades
and technology requirements making it difficult for the client to switch. Thus, the buyers have a
Medium bargaining leverage.
Power of Supplier:-
Knowledgeable human resource is the largest requirement for the IT sector. Large supply of this
human resource, at low cost is available from around the world. Also, a lot of matured education and
training is easily available. As there exist many competitive suppliers in the market the supplier has
very Low or No power in IT sector.
Competitive Rivalry:-
No huge capital investment is required to start a new company, leading to very large numbers of
small and medium size companies. It is becoming increasing difficult for players to differentiate
which has led to a decrease in margins. However, a few top niche players still enjoy pricing power.
Thus the competition in the sector is High.
Availability of Substitutes:-
Certain countries e.g. China, Korea, Taiwan, Israel have started to develop an environment for
growth of IT sector and emerging as suppliers of these products and services. Indian companies need
to continuously innovate to have an edge over the others. Thus availability of substitutes is Medium.
Threat of New Entrant:-
Set up cost is almost negligible. Further the government policies also promote the entrepreneurs by
providing benefits in terms of tax holidays and building software technology parks. Apart from this
there are many venture capitalists that are ready to fund new starts ups enabling them to scale up
with increased demand and higher margins the threat of new entrant is High.
Gujarat Narmada Valley Fertilizer & Chemical LTD
Promoted By Government of Gujarat
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CHAPTER-2
COMPANY PROFILE
(Gujarat Narmada Valley Fertilizers &
Chemicals LTD.)
Promoted By Government of Gujarat
Gujarat Narmada Valley Fertilizer & Chemical LTD
Promoted By Government of Gujarat
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ABOUT THE COMPANY
Gujarat Narmada Valley Fertilizers & Chemicals
Limited. (GNFC), is a joint sector enterprise promoted
by the Government of Gujarat and the Gujarat State
Fertilizers & Chemicals Ltd. (GSFC). It was set up in
Bharuch, Gujarat in 1976. Located at Bharuch in an
extremely prosperous industrial belt, GNFC draws on the
resources of the natural wealth of the land as well as the
industrially rich reserves of the area.
GNFC started its manufacturing and marketing operations by setting up in 1982, one of
the world's largest single-stream ammonia-urea fertilizer complexes. Over the next few
years, GNFC successfully commissioned different projects - in fields as diverse as
chemicals, fertilizers and electronics.
Since inception, GNFC has worked towards an extensive growth as a corporation. A
growth which respects the environment and springs from the progressive vision of
GNFC.
GNFC today has extended its profile much beyond fertilizers through a process of
horizontal integration. Chemicals/Petrochemicals, Energy Sector,
Electronics/Telecommunications and Information Technology form ambitious and
challenging additions to its corporate portfolio. GNFC has an enterprising, strategic
view towards expansion and diversification.
GNFC is further classified into 3 divisions :-
Fertilizers.
Chemical.
Information Technology.
Gujarat Narmada Valley Fertilizer & Chemical LTD
Promoted By Government of Gujarat
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COMPANY PROFILE
Name of the company: - GUJARAT NARMADA VALLEY FERTILISERS AND
CHMEICAL LIMITED.
(An ISO 140001 & OHSAS 18001 Company)
Promoted by Government of Gujarat
Registered Office:-
P.O.Narmadanagar -392015
Dist. Bharuch , Gujarat India
Phone - +91-2642-247015
Fax - +91-2642-247057
Website – www.gnfc.in
(n)CODE SOLUTIONS.
301, GNFC Info tower, bodakdev, Ahmedabad -380054
Tel :-+91-7940007300
Fax :-+917926857321
Website – www.ncode.in
Size Of the organization: - LARGE SCALE.
Bankers:-
BANK OF BARODA
STATE BANK OF INDIA
STATE BANK OF SAURASHTRA
Company Chairman :
DR. Varesh Sinha
IAS Chief Secretary
Government of Gujarat
Chairman, GNFC.
Gujarat Narmada Valley Fertilizer & Chemical LTD
Promoted By Government of Gujarat
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Business Profile
Fertilisers: 0.9 million MTPA – Urea Ammonia Nitro- phosphates and Calcium Ammonium
Nitrate.
Chemicals: 1.5 million MTPA – Ammonia, Methanol, Acetic Acid, Formic Acid, Methyl For mate,
Nitric Acid, Ammonium Nitrate Melt, Ethyl Acetate, Aniline, Toluene Di- Isocyanate (TDI) and
Hydro Chloric Acid (HCL).
Imports / Exports : Single Super Phosphate, Muriate of Potash, Urea, Di-Ammonia Phosphate,
Water Soluble Fertilizers, Seeds, Methanol, Acetic Acid.
Agri Services: Agri- Marts, Tissue Culture Plants, Soils Testing, Demonstration Farm etc.
Information Technology: Info-Tower, PKI (Public Key Infrastructure) and Digital Signature
Certificates, e-Procurement, Data Centres, Security and Surveillance Projects and e- Governance
Projects.
(n)Code is a leading & established information technology services provider, engaged in consulting,
services, IT Infrastructure Building and Management, electronic procurement and is a Certifying
Authority licensed by Government of India to issue legally valid Digital Certificates as per the Indian
Information Technology Act, 2000. (n)Code offers an entire gamut of IT Infrastructure Services like
Designing and Building of high technology secure Data Centres.
It is a 360-degree business approach covering process, delivery, business and technology Innovations
that help (n)Code to work collaboratively with clients for cost take-outs, speed to market and new
business opportunities.
Gujarat Narmada Valley Fertilizer & Chemical LTD
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VISION AND MISION STATEMENT
VISION:-
To be technology driven, environmentally responsible joint sector company
manufacturing fertilizers and commodity and specialty chemicals; maintaining highest
standards of operational excellence and innovation for creating sustainable value for all
stakeholders.
MISSION STATEMENT ( COMMITMENT AND EXCELLENCE AT
EVERY STEP ):-
To be the leading provider of chemicals and agriculture inputs through adoption
of state of art technologies and business process.
To have affirm commitment to quality, environment, health and safety.
To empower individuals and organization to manage integrity and accountability
over the net and revolutionize the way security is enabled and trust is established.
To enrich human resources and promote teamwork, innovativeness and integrity.
VALUES:-
A hybrid model that combines the time tested policies and procedures of a government
controlled organization and the essence of corporate culture is being implemented for
GNFC.
The specially trained team of professionals and handpicked top management who had
proven themselves in this field constitute by GNFC.
Gujarat Narmada Valley Fertilizer & Chemical LTD
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GOVERNANCE:-
We are stewards of our shareholders‘ investment and we take that responsibility very
seriously. We are accountable and responsible for delivering superior results that make
a difference in the lives of the people we touch. In 2012 GNFC was listed at 232
positions amongst fortune Indian companies. Gujarat fertilizers and agro sector stands
at 8th position amongst 16 fortune 500 Indian companies
RESPECT:-
We value the unique contribution of each individual. We believe in respect for human
dignity and we respect the need to preserve the environment around us.
EXELLENCE:-
We are committed to deliver and demonstrate excellence in whatever we do. Our main
objective of company is to working together comes to success. GNFC has been from
grassroots of agriculture to the core of chemicals and information technology.
COMMITMENT:-
We set high performance standards for ourselves as individual and our teams. We honor
our commitments in a timely manner. And maintain our quality.
INNOVATION:-
We constantly support development of newer technologies, products, improved
products, better service and management service. We are using the latest technologies
for production more and more so that we can meet the future demand.
Gujarat Narmada Valley Fertilizer & Chemical LTD
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GNFC SUSTAINABILITY THROUGH LEADERSHIP
Started by setting up a mega, world‘s largest, single stream fuel-oil based Ammonia Urea
complex in 1981.
Currently produces 3 popular fertilizers and 12 industrial products.
GNFC is the only manufacture of calcium Ammonia nitrate, a specialty fertilizer, in the
country.
GNFC is the only manufacture of Toluene Di-isocyanate in the entire South-East Asia Region.
GNFC is the largest producer of Formic Acid, Acetic Acid, and Methanol & Aniline.
GNFC has successfully executed 28 projects and 17 revamp schemes at a total cost of Rs.2270
crore.
Profit making company from the first year of commencement of its commercial operations in
the 1982.
Started its Information Technology division in 1999. This is named as ncode a solution which
works on the 4 basic objectives. Privacy, Integrity, Authenticity and Non-Repudiation.
GNFC (IT) division has working on 21 projects and its main project is Gujarat e-Procurement
which works for Gujarat Government for online E-tendering and other services, PKI based.
Present EPS of Rs.18.26 favorably compares with other fertilizer companies.
Infrastructure The Backbone Of Success:-
Materials handling facilities include 1500 MTPD of fuel oil, 2000 MTDP coal and 3000
MTPD of fertilizers.
Facilities for handling 130 million liters per day water.
Self- sufficient in power requirement with power plant of 90.9 MW capacities and 21 MW
capacity Wind Turbo Generators.
Natural Gas Pipeline connectivity from GAIL & Gujarat State Petro net LTD.
Four boilers each having a stream generation capacity of 180 MTPH.
Gujarat Narmada Valley Fertilizer & Chemical LTD
Promoted By Government of Gujarat
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MAJOR RAW MATERIAL USED BY GNFC
Basic Raw Material:-
Fuel.
Oil.
Natural Gas.
Rock Phosphate.
Sulphuric Acid.
Utilities:-
Coal.
Water.
Electricity.
Catalysts:-
M.S. Tor steel CTD & TMT-bars of diff. sizes from 8mm to 32mm dia.
Ordinary Portland cement.
HCL.
Aluminum.
Mild Steel Plates.
Packaging:-
HDPE Bags.
HDPE Carboys.
M.S.Welded Barrels.
All types of Packaging are done in 50 kg bags.
Gujarat Narmada Valley Fertilizer & Chemical LTD
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PRODUCTS & SERVICES OFFERED BY GNFC
PRODUCTS:-
AMMONIA
UREA
NITRO-PHOSPHATE
AMMONIA NITRATE
AMMONIA NITRATE MELT
METHANOL
ACETIC ACID
FORMIC ACID
METHYL FORMATE
WEAK NITTIC ACID
ANILINE
NITROBENZENE
TOLUENCE DI – ISOCYANATE
SERVICES:-
AGRI – SERVICES
AGRI – MART
COMMERICAL CERTIFICATE AUTHORITY
e-PROCUREMENT
DATA CENTRE
e- GOVERNANCE
SECURITY & SURVEILLANCE
CLOUD COMPUTING.
Gujarat Narmada Valley Fertilizer & Chemical LTD
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QUALITY & ENVIRONMENT POLICY
Gujarat Narmada Valley Fertilizer & Chemical LTD
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QUALITY STANDARDS CERTIFICATE
OHSAS MANAGEMENT SYSTEM
18001:2007 14001:2004
8 Lead Auditor 12 Lead Auditor
20 Internal Auditor 28 Lead Auditor
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ISO 9001-2008 CERTIFICATE 2013-2015
Gujarat Narmada Valley Fertilizer & Chemical LTD
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Quality Standards Certifications:-
CMMI-SVC Level 3 Certification for
Electronic Certificate Issuance
Electronic procurement related support
Maintenance & facility management
e-Governance system integration project
activities
Datacenter operation & support services
Cloud solution based services.
ISO 27001:2005 Certification for
Information Security Management
System (ISMS) Datacenter
Operations including business continuity
planning
Digital Signature Certificate issuance
PKI Enabled services like e-
procurement
other IT hosting applications‖
ISO 9001:2008 Certification for
PKI
Security Solutions.
IT-SMS as per ISO/IEC 20000 Certification
for
PKI
Procurement
Datacenter operations
Gujarat Narmada Valley Fertilizer & Chemical LTD
Promoted By Government of Gujarat
31
Board of Directors
Board Of Directors
Dr. Varesh Sinha
IAS
Chairman
Dr. Rajiv Kumar
Gupta IAS Managing Director
Shri D. J. Pandian IAS Director
Shri G. C. Murmu IAS Director
Dr. Hasmukh Adhia IAS Director
Shri Atanu
Chakraborty IAS Director
Dr. TT Ram Mohan Director
Shri D. C. Anjaria Director
Dr. Ashok Shah Director
Executive Directors
Shri J. S.
Kochar
Executive Director - IT
Shri R. T.
Bhargava
Executive Director
Shri P. K.
Masare
Executive Director
Shri A. T.
Patadia
Executive Director
Shri R. A. Shah
Executive Director & Chief Finance Officer
Shri J. C. Bhatt
Executive Director
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Promoted By Government of Gujarat
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AWARDS ACHIEVED BY GNFC
National Safety Council, USA: Good Safety Performance.
National Productivity Council: Best Productivity - First, Second & Third Prizes, Best
Productivity for Nitrogenous Fertilizers.
Ministry of Labour, GOI: Good Safety Performance (Thrice)
Federation of Indian Chamber of Commerce & Industry (FICCI) : Best Environment
Preservation & Pollution Control
Indian Chemicals Manufacturers Association (ICMA): Environmental Control & Safety
Fertilizer Association of India (FAI) : For research paper
Best Technical Innovation - pure CO2 enhancement scheme in Ammonia plant
Best Technical Innovation implemented in fertilizer industry (twice)
Best Overall Performance of an operating unit for P2O5 in complex fertilizers
All India Organization of Employers: Outstanding Contribution in the field of Industrial
Relations
National Energy Conservation Award, Dept. of Energy, Government of India: Energy
Conservation Award, Second Prize
Government of India: Award for Energy Conservation
Jawaharlal Nehru Memorial National Award: Effective Energy Conservation Award
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National Suggestion Scheme: Two awards for the company, one for the employee
Indian National Suggestion Scheme (INSAAN): Prizes in different years (thrice), Excellence in
Suggestion Scheme for the Company, Second Prize to the employee (twice)
Texaco Development Corporation (TDC), USA: Licensee of the year for operating gassifier on
more than rated capacity for over a decade
Labour & Employment Dept., Government of Gujarat: Shram Bhushan Award & Rajya Shram
Ratna Award to the employees
Indian Institute of Chemical Engineers (IICE): ICI Award for Excellence in Process / Product
Development
Dept. of Scientific & Industrial Research, Ministry of Science & Technology, GOI FICCI:
National Award for R&D efforts
World Environment Foundation: Golden Peacock Eco Innovation Award
Fertilizers Association of India: Transfer of Improved Farm Technology Award at the national
level
Computer Society of India: CSI-Nihilent e-Governance Award for the best technology
implementation for e-Governance projects
The Government of Gujarat Project e-Procurement handled by (n)Code Solutions – A Division
of GNFC Ltd. has won the CSI-Nihilent e-Governance Awards 2006-2007 in the category of
Government to Business. Award ceremony held at Bangalore on December 1, 2007 at 42nd
Computer Society of India (CSI).
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Achievements of GNFC
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.
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.
GNFC Where Growth is a Way of Life
Other Project Under Development:-
Methylene Diphenyl Di-isocyanate with annual capacity of 100,000 in MT.
Aniline with annual capacity of 70,000 in MT.
Brown Field Ammonia / Urea Complex with annual capacity of 7, 26,600 in MT.
Poly Aluminum chloride with annual capacity of 50,000 in MT.
Dicalcium Phosphate with annual capacity of 25,000 in MT.
Ammonia Sky Gas Plant with annual capacity of 1, 23,700 which is equivalent to 6, 36,000
MT.
Ethyl Acetate with annual capacity of 50,000 in MT.
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DISTRIBUTION NETWORK OF GNFC
GNFC GLOBAL MARKETING NETWORK
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MARKET SEGMENTATION
Whenever the products are in liquid form the segmentation of market area id decided such as a way
that the customers are near to the main complex of GNFC. The products like Urea, Acetic Acid,
Formic Acid, Phosphate are of hazardous nature & hence though sufficient care for it safe handling are
taken, it is preferred to hence sales as near as possible.
Chemicals that GNFC manufactures are being supplied to the global customers also. To increase the
availability GNFC has kept on its list of customer & the parties all over India & therefore GNFC
products are available in any comer of India. GNFC market segmentation is done on the basis of
"Geographical Segmentation" where the market is divided into zones & regions. GNFC have major
market in west zone & commonly in north, south & east region.
GNFC has increased the direction by having mutual understanding with the manufacturers of other
company so that the supply of raw material is supplied in less time & at cheaper cost.
PRICING POLICY
Price of a commodity means the exchange value, which we get through exchange of that commodity in
terms of monetary basis.
The prices of products determine the volume of sale & the amount of profit. Manufactures decide price
on the basis of three factors, they are
The cost of production.
The demand for the product the nature of the competition for the products.
The product price is governed by different polices & the main aim of it is to fetch maximum returns
i.e. best price of its products. Many times it happens that one product may not yield managerial profit
but in view of its demand in present market situation, the prices have to be kept lower than its cost of
production.
CHANNELS OF DISTRIBUTION
Distribution channel means a set of interdependent organization involved in the process of marketing a
product or services available for use or consumption by the following.
In the field of marketing channels of distribution indicates routes as pathways through which goods
and services moves from producers to customers.
The route of channel includes the manufacturer and the ultimate cumulative as well as all intermediaries GNFC has been getting all the three channels of distribution.
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For large consumers/public sectors like IPCL, GSFC, IFFCO, GACL, etc. The
Company has adopted the zero level channel of distribution, where the manufactures goods are
sold directly from manufacturer to customer.
For medium scale consumer where price negotiation, transformation arrangements,
payments follows up are regularly requisites and the quantity requested is not very large.
GNFC has adopted first level of channel of distribution, dealer/ trader/consumers.
Also to top consumers having very small quantity requirement, where price and
availability plays main side in buying decision. GACL has been operating through second level
channel of distribution as follows.
In GNFC the products are sold in two ways:-
DIRECT CONTACT:-
The company also enters into direct contact with other large companies like GSFC, GACL, IPCL,
IOC, IFFCO etc. both the parties, negotiate with each other directly and the terms and conditions of
contract are accepted mutually.
THROUGH DEALERS:-
The company appoints same dealers to sell its products. Such dealers work for the company, discover
customers, negotiate with them and try to expand the market. They charge some commission for their
duty. The company has appointed dealers for the domestic market.
GNFC DISTRIBUTION CHANNELS OF FERTILISERS AND CHEMICAL IS
SAME
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COMPETITORS AND VALUED CUSTOMERS OF GNFC
GNFC MAJOR COMPETITORS
National Fertilizers Limited
Fertilizers & Chemicals Travancore Limited
Rashtriya Chemicals & Fertilizers Limited
Madras Fertilizers Limited
Steel Authority Of India Limited
Neyveli Lignite Corporation Limited
Pyrites, Phosphates & Chemicals Limited
Hindustan Fertilizer Corporation Limited
Chambal Fertilizers & Chemicals Limited
Balaji Fertilizers Private Limited
IFFCO
Gujarat Alkalizes and Chemical Limited
Deepak Fertilizer and Petrochemicals Corporation Limited
Bharat Fertilizer Industries Limited
Coromandal Fertilizers Limited
Gujarat Narmada Valley Fertilizer Co. Limited
Karnataka Agro Chemicals
Godavari Fertilizers & Chemical Limited
Gujarat State Fertilizers & Chemicals Limited
Southern Petro Chemical Industries Corporation Limited
Maharashtra Agro Industrial Development Corporation
Zuari Industries Limited- Fertilizer Limited
Mangalore Chemicals & Fertilizers Limited
COMPETITOR OF (n) CODE SOLUTION IT DIVISION
Tata Consultancy Services.
Sify
E-mudra
National Informatics Centre
BSNL
MTNL.
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CUSTOMERS FERTILIZER:-
Gujarat State Fertilizer Corporation
Gujarat National Fertilizer Corporation
IFFCO
Deepak Nitrite
Deepak Fertilizer
Gujarat Alkalizes and Chemical limited
PHARMACUTICALS:-
Dr. Reddy's
Torrent
Ranbaxy
Sun Pharmacy
Lupine Laboratory
TEXTILE:-
Arvind Mills Limited
Ashima Industries Limited
AGRO-CHEMICALS:-
Gujarat Agro Chemicals Limited.
Bildg Chemicals
Arti Industries
Meghamani Organics
REFINERY:-
IOC
IPCL
Reliance Hajira&Jamanagar
HLL
PAPERS:-
BILT
Rama New Print
JK Paper.
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Product and Service Portfolio
Products:-
Ammonia – Ammonia Plant is the largest fuel-oil-based plant in which was commissioned in the
year 1982, with technology partners like Linde and BARF from Germany, Texaco. With considerable
de-bottlenecking and in- house improvements. Ammonia plant has been able to achieve an annual
production capacity of 549,502 MT.
Urea – Urea Plant is the largest fuel-oil-based single stream plant in India which was commissioned
in the year 1982, with technology Partner from Italy. The annual capacity of plant is 636,900 MT.
Nitro-Phosphate – Ammonia Nitro-Phosphate was commissioned in September 1990 with
technology partner BASF Germany. This Plant has an annual capacity of 142,500 MT. GNFC market
its Ammonia Nitro-Phosphate fertilizer under the brand name of‖ NARMADA PHOS‖.
Calcium Ammonia Nitrate – Calcium Ammonia Nitrate is widely used as a fertilizer for all
upland crops, especially commercial and cash crops, to avoid soil acidity or alkalinity. This Plant has
an annual capacity of 142,500 MT.
Ammonia Nitrate Melt – Ammonia Nitrate Melt is widely used in the manufacturing of
fertilizers like Calcium Ammonia Nitrate, Ammonia Nitro –Phosphate and also in explosives,
pharmaceutical, pyrotechnics, herbicides.
Methanol – GNFC through its 3 Methanol plants has the country‘s largest annual capacity of
268,700 MT. Its technology partners are Linde and ICI from Germany and UK.
Acetic Acid – with an annual capacity of 100,000MT, GNFC has the largest capacity of
manufacturing Acetic Acid in the country. Acetic Acid is useful in diverse applications in Textile
Industry.
Formic Acid – commissioned in February 1989, Formic Acid plant has an annual capacity of
10,000 MT, which is largest in the country. Formic Acid is extensively used as a coagulant for
obtaining rubber from Latex.
Methyl Formate – plant was commissioned in the year 1989 with technology support from
Kemira OY Finland. These plants have annual capacity of 22,800 MT.
Nitric Acid – weak Nitric Acid is used in the manufacturing of fertilizers, Ammonia Nitrate and
other explosives. It is also used in making Chemical Salts also.
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Concentrated Nitric Acid – Concentrated Nitric Acid is used as a raw material in the
manufacturing of Aniline and TDI. Three concentrated nitric Acid Plants have a total capacity of
116,600 MT. the technology is supplies by Plinke, Germany.
Aniline – GNFC has the country‘s largest capacity of 35,000MTPA for manufacturing Aniline. The
Aniline Plant was commissioned in the year 1995 and emloys technology from DuPont USA.
Nitrobenzene – Commissioned in the year 1995, Nitrobenzene plant has an annual capacity of
47,250 MT. The technology partner is Chematur, Sweden.
Toluene Di- Isocyanate – plant was commissioned in the year 1998 and has annual capacity of
14,000 MT. GNFC is the only producer of Toluene Di- Isocyanate in the entire South East Asia. The
technology partner is Chematur, Sweden.
UREA FILE PHOTO
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Services Offered by GNFC
Agri – Services – GNFC offers a comprehensive range of products and services to the Farmers.
Field demonstration
Crop seminars
Agriculture exhibition
Retailer training program
Soil testing and promotion of farm and manure and vermin compost
Agri – Mart - Is the one- stop solution to farmers for their entire agricultural requirement. It
proposes to establish three tier retail Agri – Market structure named ―Narmada Agri – Mart.
GNFC IT Division Services:-
Info- Tower – GNFC Info-Tower is a unique idea of providing ready to use infrastructure, with
electrical and air- conditioning, required by IT companies. Under one roof it is a hub for major BPO
and ITeS.
Commercial Certifying Authority – (n) Code Solutions has established its position as a market leader
in Digital Signature Certificates (DSC) issuance and PKI technology in India. It tissue DSCs for many
application like E-filling for MCA 21, Income Tax, DGFT, IRCTC, IFFCO and many more
Approximately 900,000 has been issued till 31 March 2013.
E-Procurement:-
(n)Code Solution‘s portal www.nprocure.com, facilitates and manages all facets of e-Tendering and e-
Auctions. It caters to all the Gujarat State Governments Departments, Boards and Corporation and
several others PSUs. More than 92,000 tenders worth over Rs.1, 60,000 crore have been completed
successfully on this portal. And Approximately 35,000 thousand e- Tenders are handled till 31st March
2013.
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Data Centre’s:-
(n)Code Solutions provides services like Consulting, Designing construction and management of
secure Data Centre‘s. It has executed 22 Data Centre‘s. Projects on turnkey basis for Government of
Gujarat, ONGC, GUVNL, SSNNL, MDL Mumbai, MPMKVVCL Bhopal, PSPCL Punjab.
Data Centre’s at Info- Tower Ahmedabad
E-Governance:-
(n)Code Solutions provides several e-Governance solutions making innovative use of Information
Technology. The solution thus provided ease administrative tasks or help Government offer better,
cheaper and more transparent services to its citizens. It has implemented a mineral Administration
solution for the Mining Department of Government of Gujarat and Karnataka. It has also implemented
a card-based Solution for Department of Health for providing cashless medical to 35 lakh BPL
families in Gujarat.
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Security & Surveillance:-
(n)Code Solution high tech security and surveillance Solution Based on CCTV & Video analytics
including setting up of control centres. It‘s implementing several high profits for security of critical
establishments based on these technologies.
Cloud Computing:-
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HUMAN RESOURCE MANAGEMENT
The Company believes that its human resources have been pivotal force to accelerate the growth of the
organization right from its inception and it has been the Company‘s continuous endeavor to create an
environment where people excel and feel a sense of belongingness to the organization. The Company
makes continuous and concerted efforts not only to groom its human resources to meet with the
present and future challenges in the field of Technology and Management functions but also focuses
on providing an environment conducive for growth of employees and organization in the rapidly
changing Industrial scenario. To support the growing and expanding business needs, talent acquisition
and development at all levels has remained a focus area of the Company. The employees have been
regularly groomed through need based training & development programs organized by inviting expert
faculties from outside as well as with the help of internal faculties in addition to deputing the
employees to attend specialized training programs organized by the reputed training institutes in the
country.
The Company has always remained conscious about the importance of safety, environment and health
aspects and accordingly, training programs on safety awareness, environmental aspects, health
awareness, etc. were organized in-house during the year.
The Company is continuously endeavoring to improve industrial relations by proactive initiatives /
actions and as a result very harmonious, cordial and healthy industrial relations through-out the year
led to an atmosphere conducive for the sustenance of growth and enrichment of value for the
shareholders.
The total strength of the human asset of the Company as on 31st March, 2013 was 3,660.
Employee Qualification Chart:-
Engineers
14% Post-
Graduates
8%
Doctors and
Professional
s
2%
Graduates
28%Diplomasan
d it is
36%
Other
Including
Unskilled
12%
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TRAINING CENTRE (EMPOWERING FOR SUCCESS)
Various Training Programs
Training & Development of prospective employees.
Knowledge & skills updation of existing employees.
Training for new projects / revamps and new technology / systems.
Mandatory training for safety, health & environment.
Training for statutory compliances.
Re-deployment training.
Career development.
Vocational training for college students.
Training imparted to personnel of other organization.
400 technical training programs are carried out.
Around 9000 participants have taken part in trainings.
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DEPARTMENTS AT GNFC
Technical Department:
Production Department.
Engineering Department.
Quality Control Department.
Safety & Environmental Department.
Research & Development Department.
Operation Department.
Logistic Department.
Non- Technical Department:-
Marketing Department.
Purchase Department.
Export Department.
Dispatch Department.
Finance Department.
HR Department.
Personnel Department.
Security Department.
Administration Department.
Secretary Department.
MS Department (Management System).
IT DIVISION DEPARTMENTS:-
Digital Signature Certificate.
Marketing Department.
Human Resource.
Finance.
Research & Development.
Training Department.
E-Procurement Department.
Data Centers.
Operation Department
Networking Department.
Software Department.
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Organizational Hierarchy of Fertilizer and Chemical Department at
GNFC
Chairman
Managing Director
ED
(MARKETING)
ED
(HR & ADMIN)
ED
(OPERATION)
ED
(FINANCE)
ED
(R&D)
GM
AGM
GM
(HR)
GM
(A)
GM
(PURCHASE)
DGM
AGM
(T &D)
AREA
HEAD
GM (Material Procurement)
AGM (S &
Logistic) AGM (ENGG
Services
GM
(Quality)
CFO
Company
Secretary
GM
(R & D)
AGM
AGM
(ACCOUNTS)
SM
CM
AGM
(IR)
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Organizational Hierarchy at IT Department
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Finance Department GNFC 2012-2013
SHARE HOLDING PATTERN:-
INVESTMENT LOCATIONS IN GUJARAT:-
VADODARA.
GANDHINAGAR.
BHAVNAGAR.
BHARUCH.
DAHEJ.
Indian Public25% Bodies
Corporate 3%
NRI / Overseas
2%Foreign Insitutional
9%
Financial Insitutes /
Banks16%
Gujarat State Investment
LTD21%
Gujarat State Fertilizer
Chemical LTD20%
Mutual Funds & UTI
4%
SHARE HOLDING
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GNFC EPITOME OF PROFITABLE GROWTH
NET SALES &PBT:-
RESERVES AND SURPLUS:-
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
2009-2010 2010-2011 2011-2012 2012-2013
Gujarat Narmada Valley Fertilizer & Chemical LTD
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GROSS FIXED ASSET:-
SEGMENT WISE PROFITABILITY 2012-2013:-
CHEMICAL24%
FERTILIZER60%
INFORMATION TECHNOLOGY
16%
PROFIT
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OPERATIONS:
Production performance of GNFC:-
The overall production performance remained very good during the year. 300 MTD WNA-II plants,
150 MTD CNA-III plants and 33 MW CPSU plant were commissioned.
ANP production increased in spite of problems of availability of rock phosphate due to political
problems at Jordan. Alternate source was developed to maintain production.
CAN production was planned according to ANP production /sale of A melt and cost economics.
Due to unfavorable cost economics, Methanol -I and Methanol-II plants could not be operated at
their full capacity and Methanol Synthesis Unit (MSU) was not operated.
Production of other products viz. Acetic Acid, Formic Acid, Methyl Formate and TDI were adjusted
to maximize contribution based on availability of carbon monoxide.
Concentrated efforts are put during day to day operation for higher productivity and reducing
specific energy consumption. Emphasis is put for continual improvement in safety and environment.
Plant Installed
Capacity Technical Collaborator
Ammonia 4,45,500 MTA
Air separation, Rectisol and Nitrogen
wash units as well as total engineering of
the integrated plant - Linde AG,
Germany
- Fuel Oil Gasification - Texaco, USA
- CO Shift Conversion-BASF, Germany.
- Ammonia Synthesis - Haldor Topsoe,
Denmark.
Urea 6,36,900 MTA Snamprogetti, Italy
Ammonium
Nitrophosphate 1,42,500 MTA BASF - Germany
Calcium-
Ammonium
Nitrate
1,42,500 MTA UHDE, Germany
Methanol-I 50,000 MTA ICI, UK & Linde AG, Germany
Formic Acid 10,000 MTA Kemira OY, Finland
Methanol-II 1,88,100 MTA ICI, UK & Toyo Engg., Japan
Msu 30,600 MTA In-House
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Weak Nitric Acid 2,47,500 MTA UHDE, Germany
Concentrated-
Nitric Acid I & II 66,000 MTA Plinke, Germany
Acetic Acid 1,00,000 MTA BP Chemicals, UK
Synthesis Gas
Generation Unit
201.960
Million NM3
per annum
Jacob, UK and H & G
Captive Power
Plant I & II
3,96,000
MWH per
annum
BHEL, India
Nitrobenzene (NB) 47250 MTPA Chematur Engineering AB, Sweden
Aniline 35000 MTPA Chematur Engineering AB, Sweden
Toluene Di-
isocynate (TDI) 14000 MTPA Chematur Engineering AB, Sweden
Di Nitro Toluene
(DNT) 18356 MTPA Chematur Engineering AB, Sweden
Meta Toluene Di-
amine (MTD) 11804 MTPA Chematur Engineering AB, Sweden
DESPATCH/SALE PERFORMANCE OF GNFC PLANTS FOR THE
YEAR 2012-2013
DESPATCH / SALE ACTUAL 2012-13
Urea 710000
ANP 200406
CAN 106020
TDI 17227
ANILINE 41459
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AN MELT 88493
ACETIC ACID 147153
METHANOL 55529
METHYL FORMATE 1012
FORMIC ACID 20367
WNA 100% 89142
CAN 55551
CALCIUM CARBONATE 73233
NITROBENZENE 2900
HCL 47983
DRY FLY ASH 116114
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THE 5 “S” MODEL OF GNFC
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IMPLIMENTATION OF 5 “S” CONCEPTS
RESULTS INTO:-
A Neat and Clean Factory
Higher Productivity
Reliable Deliveries
Improved Safety
Higher Quality
Meet Deadlines
Lower cost
Constant Growth
Profit Maximization
Higher Availability.
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.SWOT ANALYSIS OF GNFC
STRENGHTS:-
Boasts of setting up, one of the largest ammonia-urea fertilizer manufacturing complexes at
Bharuch, Gujarat.
Ideal location of Bharuch as an industrial hub of the country with an access to rich natural
resources suitable as raw materials for ammonia and other chemicals‘ production.
International business going strong with year-on-year growth, especially in the chemicals and
petrochemicals division of the company.
Under the brand name Narmada, the company has achieved tremendous sales
IT division (n) Code solution‘s www.nprocure.com, facilitates and manages all facets of e-
Tendering, e-Auctions. It caters to all the Gujarat State Departments, boards and Corporation,
and several PSUs.
(n)Code solution provides high tech security and surveillance solutions.
(n)Code solution has established its position as a market leader in Digital Signature
Certificates. More than 8, 51,194 certificates have been issued.
WEAKNESS:-
Exports haven‘t boomed due to focus on domestic expansions and business fortifications
Mergers and acquisitions have not been looked into as a possibility of future growth.
Production do not satisfies sometime Demand in Urea production.
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OPPORTUNITY:-
The Narmada Command Area, due to its strong irrigational facilities has become a huge
potential for sustained agriculture and therefore demands good quality fertilizer products
Social programs like schools, colleges and hospitals in the Narmadanagar region have
brought upon more customer loyalty towards the company and also results in customer
growth and awareness.
International marketing to ASEAN countries would help in establishing long-term
relationships and viable markets for future growth.
Collaborations with International countries could have increased more production due to
their new technology implementation.
Its Brand name is very popular in the northern states and huge demand is there. So, GNFC
should maintain its Production and Quality.
THREAT:-
Environmental regulations are severely affecting all fertilizer companies including GNFC.
Labor strikes have resulted in management transformations
Seasonal demand for fertilizers is affecting cash inflows.
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CORPORATE SOCIAL RESPONSIBILITIES
Beyond Business: Social Perspectives
It is absolutely important for businesses and business people to have a social perspective, And to be
engaged in social issues beyond business. GNFC has a commendable record of
Corporate social responsibility and it ear marks a substantial portion of its profits regularly
For such Activities. The company is presently running a 32 bed hospital with the help of
21 qualified doctors. It is also running an English medium school for 3,000 students and
One of the best post graduate colleges in the region. Majority of the students of these
Institutions are from the local community.
GNFC helps needy people through vocational training, eye camps, health camps, assistance
To handicaps, old age education, book bank, help to the victims of natural calamities, village
Adoption, etc. through its NGO Narmadanagar Rural Development Society (NARDES)
In addition to this, GNFC provides a very strong technical support to the farmers by having
A state of art soil testing laboratory, a model tissue culture laboratory which provides
Approximately one million disease-free, high quality banana saplings and a popular organic
Fertilizers program me for farmers, besides its other activities.
GNFC part of its CSR policy for the next five years, GNFC is planning to consolidate its
Activities and to focus exclusively on few core activities which will be meaningful for the
Region and where it can make some impact.
Thus successful business organizations have some influence in society. Thus it is an
Obligation for us who are in this fortunate position, to use our influence to do the right
Thing, to try and contribute as much as we can, to help improve society by undertaking
Certain CSR Activities.
GNFC’s CSR Policy:-
GNFC has passed the Board Resolution of 30th meeting of Board Directors held at Chamber
of Chief Secretary, GOG on 27th Dec.011. The Company established itself firmly with
Diversified product portfolio from its initial Fertilizers business to Chemicals and then to
Electronics, Information Technology business etc. Apart from excelling in its core business,
The company has been dedicating itself to social commitments in and around Bharuch in
Particular and the State of Gujarat in general.
To carry out its social commitments, the Company has established two Non-governments
Organizations (NGOs) viz. (i) Narmadanagar Rural Development society (NARDES) and (ii)
Narmada Education & Scientific Research Society (NEST)
(I) NARDES – An NGO sponsored by the company and promoted by its employees
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And their families undertake several Rural Development activities in the field of
Health and Hygiene, Education, Employment, Rehabilitation of physically
Challenged People etc.
(II) NEST – An NGO established by the company run Educational Institutes to impart
Graduate and Post Graduate level of education in Science, Commerce ,Management and Computer
Applications. Moreover part time courses are also Conducted for the employee professionals, in the
field of management and Industrial Safety and Environment.
The company has recently established GNFC Education Society for setting up a Polytechnic
College under the Public Private Partnership Model.
The company undertook Agriculture Extension Services for the benefit of farming.
Thalassemia Project:-
Overview: GNFC has contributed to Indian Red Cross Society (IRCS) for doing blood Tests for
Thalassemia and Sickle cell amongst the 1500 schools and college going Students of Bharuch
district.
Mobile Dispensary:-
Overview: A total of 9000 patients have been treated through mobile dispensary. This covers 6
villages every week and treats patients at nominal rates.
Eye camps and Eye ball collection activity:-
Overview: Eye camps are held regularly to identify and operate patients with Cataract. Also to
help visually challenged people, awareness campaigns for eye Donation is done and eye ball
collection activity is carried out. Till now around 450 People have been given eyeballs to the needy.
Handicap camps and Blood donation camps:-
Overview: To extend helping hand to differently able people, handicap camps is Held every year
where distribution of artificial limbs, tricycle, hearing aid and other Aids are done. Blood donation
camps are also organized twice in a year where 50 to 60 unit bloods are collected.
Model Village:-
Overview: District Development Authority, Bharuch has identified 8 villages, one in Each Taluka
of Bharuch District.
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Potable Drinking water & Swajaldhara Scheme:-
Overview: Water and sanitation management organization (WASMO) have surveyed 73 villages
in 7 talikas and have found fluoride, chloride and nitrate level. Significantly higher than permissible
limit for drinking purpose, Installation of RO plants. Of the total estimate of Rs.2.93 Crores for
providing RO plants in 63 villages, Rs.2.0 crores contributed by GNFC.
Primary Education Assistance under Aaganwadis:-
Overview: The literacy rate of Bharuch district is 74.41% which is approximately 2.7 Less than
the literacy rate in Gujarat.
a. Electrification in 472 class rooms of 169 schools
b. Requirement of 3293 fans
c. Provision of 128 PVC water tank
d. Construction of compound wall in 204 schools
e. Development of model schools
f. Installation or RO units
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Chapter -3
Discussion on Training
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Roles and Responsibilities
The training was imparted in all the departments:-
E-Procurement
Information Technology
Supply Chain Management(Production Planning and Schedule)
Production
Maintenance
Networking
Human Resource
Marketing
The role and responsibility given in each department was
To learn, supervise and monitor the work being held over there.
To give training to the bidder those who want to participate in the E-tendering and E-
auctioning process.
Verify all the details and forms of the customer those who want to publish their respective
government tenders (Government employees).
To evaluate each and every supplier performance and maintain their records and update in
the software known as ASP base.
Description of tasks handled
The task which I handled was how to maintain the proper information of the suppliers and their
previous record and the performance in the separate data base. And my job was to facilitate the
bidder and the customer those have problem in participating the tender, and submitting their form
online. Verification of the form checking the proper details in the form and matching it with the
requirement, and then providing the digital signature certificate.
Then the task which I handled in the supply chain department was to keep the record in the online
system and then have to evaluate the supplier‘s performance for the raw materials requirement.
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Contribution to the Organization
After understanding the whole working of ‗E-procurement and vendor management evaluation‘ the
study has been analysed between the manual process and the electronic process, and analysing the
performance of the suppliers and how much the electronic process is beneficial to the organization
In terms of
Technology
Efficiency
Transparancy
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Chapter -4
Analysis of Task/ Research undertaken
And process
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Introduction and Background
Reason for choosing this topic:-
There is increase in the technology day by day. E-procurement is the internet based technology
which helps in participating and evaluating the performance and helping in the online process. The
process now a day is changing manually too electronically and is very much beneficial for the
organization, government and for the customer. It‘s a new technology in the production sector that is
why I have chosen this topic to have a detailed study and each and every process of the system.
E-Procurement and Vendor Management
What is E-Procurement?
E-Procurement is a word which is made from two words, E stands for Electronic and 2 words is
Procurement.
Procurement is the acquisition of goods, services or works from an external source. It is favourable
that the goods, services or works are appropriate and that they are procured at the best
possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location.
Corporations and public bodies often define processes intended to promote fair and open
competition for their business while minimizing exposure to fraud and collusion.
Direct Procurement and Indirect Procurement
TYPES
Direct
procurement
Indirect
procurement
Raw material
and production
goods
Maintenance,
repair, and
operating supplies
Capital
goods
and
services
FEATURES
Quantity Large Low Low
Frequency High Relatively high Low
Value Industry
specific Low High
Nature Operational Tactical Strategic
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Examples
Crude oil in
petroleum
industry
Lubricants, spare
parts
Crude
oil
storage
facilities
Procurement Systems
Another common procurement issue is the timing of purchases. Just-in-time is a system of timing the
purchases of consumables so as to keep inventory costs low. Just-in-time is commonly used by
Japanese companies but widely adopted by many global manufacturers from the 1990s onwards.
Typically a framework agreement setting terms and price is created between a supplier and
purchaser, and specific orders are then called-off as required.
Public Key Infrastructure
Scope And Meaning of PKI
A public-key infrastructure (PKI) is a set of hardware, software, people, policies, and procedures
needed to create, manage, distribute, use, store, and revoke digital certificates.
A public-key infrastructure (PKI) is a system for the creation, storage, and distribution of digital
certificates which are used to verify that a particular public key belongs to a certain entity. The PKI
creates digital certificates which map public keys to entities, securely stores these certificates in a
central repository, and revokes them if needed.
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A PKI consists of
A certificate authority (CA) that both issues and verifies the digital certificates.
A registration authority which verifies the identity of users requesting information from the
CA
A central directory—i.e. a secure location in which to store and index keys.
A certificate management system
A certificate policy.
As licensed Certifying Authority, (n)Code Solutions issues Digital Certificates to individuals and
organizations to ensure Privacy and Integrity as well as establish Authenticity over the net for any
transactions like e mail, e tendering, e commerce, e governance and scores of others
E-Procurement
E-Procurement is the electronic B2B (or B2C or B2G) sale and purchase of goods and services. The
medium used might be the Internet or any other media like EDI (Electronic Data Interchange) and
Enterprise Integrations (formerly known as EAI).
E-procurement (electronic procurement ), sometimes also known as supplier exchange) is the
business-to-business or business-to-consumer or business-to-government purchase and sale of
supplies, work, and services through the Internet as well as other information and networking
systems, such as electronic data interchange and enterprise resource planning.
The e-procurement value chain consists of indent management, E-Tendering, E-Auctioning, vendor
management, catalogue management, Purchase Order Integration, Order Status, Ship Notice, E-
Invoicing, E-Payment, and contract management. Indent management is the workflow involved in
the preparation of tenders. This part of the value chain is optional, with individual procuring
departments defining their indenting process. In works procurement, administrative approval and
technical sanction are obtained in electronic format. In goods procurement, indent generation activity
is done online.
Indent
Managemente-Tendering
e-AuctionsContract
Management
Catalogue
based
ProcurementVendor Management
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E-Procurement Cycle
GNFC is Providing E-Procurement services like E-Tendering and E-Auctioning
Who needs this solution?
Many businesses turn to e-Procurement systems to control, simplify and automate the purchase of
goods and services from multiple suppliers. Companies deploying e-procurement are able to control
inventories more effectively, reduce purchasing overheads, reduce or remove brokerage costs as well
as improve manufacturing cycles.
The key is to find the right products from the right supplier, at the right time and at the most
competitive price, as well as to ensure the appropriate responsiveness and service levels for your
business purchasing needs. Often a company might find itself a niche with a proven set of customers
and encourage others in
a similar field to join them on-line as the business case is proven. Concurrently they may find their
client base grows with more customers keen to capitalize on the benefits as savings and efficiencies
become obvious. Medium to large sized organizations and government departments that regularly
purchase the same products from a limited number of companies are ideal candidates for e-
Procurement.
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Types of products and services:-
There are several approaches to e-Procurement taken by different vendors to manage supplier
relationships. Some of these are catalogue and transaction-based e-Procurement products and that
support supplier-relationship management strategies, which require strategic partnerships and
integration with third-party products.
The service can also be approached from an asset-management angle geared for maintenance and
repair operations. This establishes proper schedules and creates in-house availability of products and
assets that can be tracked. Over a period of time, this helps the enterprise‘s e-Procurement
capabilities to evolve.
In an environment where e-Procurement becomes an integral part of the supply chain a lot more
commitment from the involved partners is required. This is due to the more complex nature ofB2B
relationships that need to be managed along with additional technology and capabilities .Best of
breed e-Procurement systems should have the ability to locate suppliers, evaluate their offerings, and
make comparisons. They also need to ensure that the proper contractual terms are applied to each
order.
Procurement in the Indian context:-
The purpose of e-Procurement is to reduce costs as well as improve operational efficiency in the
procurement process. While this has happened to a large extent in the US and in European markets,
e-Procurement still has a long way to go in developing nations like India. Some of the challenges
faced here are
The lack of IT infrastructure.
Sourcing goods through online (internet/website) channels is relatively unheard of despite
relatively high levels of computerization; many organizations find it easier to do business
over the telephone.
Limited Internet and broadband penetration especially in rural areas, where companies need
to ensure an uninterrupted connection.
These are some of the areas of opportunities for e-Procurement facilitator companies to offer their
solutions over channels other than the Internet – perhaps using telecom or as technology evolve, over
television networks.
Several companies in India have stepped in to make e-Procurement easier, an example being NIIT
Technologies. Their product Procure Easy is, in their words - ―a unique end-to-end web based
solution that enables enterprises to streamline their procurement processes through the entire value
chain of the sourcing process.‖
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E-Procurement for the Indian Government:-
Over the last few years, several State Governments and Public Sector Undertakings in India have
begun to aggressively campaign for e-Procurement. Some state governments like those of Andhra
Pradesh and Gujarat have already initiated e-Procurement under a larger umbrella program of e-
Governance.
Using e-Procurement these governments have been able to save on procurement of goods and
services. There is also a goodwill factor involved and a definite improvement in the governments
‗image and transparency. Included in these benefits are cost reduction, improved decision making,
process efficiency, price and supplier-behavior forecasting, and supplier-performance monitoring
which ultimately leads to Vendor rationalization and standardization.
Certain Public Sector Undertakings (PSUs) like the Oil and Natural Gas Commission (ONGC),
Indian Oil Corporation (IOC), Bharat Heavy Electricals Limited (BHEL) have all taken up e-
Procurement initiatives to rationalize the $30 - $40 billion purchases they make every year.
The Future of e-Procurement
E-Procurement has been in existence for a substantial period. To achieve cost and time
Efficiency, several enterprises and governments now consider it a crucial cog in the wheel of their
procurement processes. With recessionary winds blowing across the globe and a growing need to
rationalize spends while sustaining optimum levels of productivity, enterprises big and small will
further leverage the e-Procurement model to achieve greater savings and deliver enhanced value.
Advances in Internet and media technologies, now require a revisit of the traditional methods of e-
Procurement. As the current market conditions tighten, e-Procurement facilitator companies need to
reinvent them and devise newer methods, so as to achieve far greater reach with greater process
simplicity and usability.
How the e-Procurement proved to be the best in the world of Globalization?
Enhanced transparency in Procurement lifecycles
Anytime Availability
Better administration and operations.
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Examples of good procurement practices and support from e-tendering
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Vendor Management
A vendor management system (VMS) is an Internet-enabled, often Web-based application that acts
as a mechanism for business to manage and procure staffing services – temporary, and, in some
cases, permanent placement services – as well as outside contract or contingent labour. Typical
features of a VMS application include order distribution, consolidated billing and significant
enhancements in reporting capability that outperforms manual systems and processes
GNFC is using a management software provider which is working on SAP which is known SAP
(Vendor Management System is working DOT NET) language which is having all the information
about the vendor from last 8 years and tracks all the records of the department from these software
all the vendor has been selected and according to their performance they are selected.
Supplier Evaluation Methods:-
The measure of a supplier's value is expressed in its performance record.
In recent years buyers have emphasized the setting of objective standards and procedures for
evaluating and comparing existing suppliers.
The least precise evaluation technique is the categorical method.
It relies heavily on the experience and ability of the individual buyer1
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The Categorical Method:-
Basically, it is a procedure whereby the buyer relies on a historical record of supplier
performance.
Initially, a list of evaluation criteria is identified.
The buyer then assigns a grade to each supplier, for each criterion, based on past experience.
A simple marking system of plus, minus, and neutral grades may be used.
Evaluation lists are often provided to other departments involved, such as quality control,
engineering, production, and receiving.
The Categorical Method:-
Vendors with composite high or low ratings are noted, and future supply decisions are
influenced by them.
Although this system is non-quantitative, it is a means of keeping systematic records of
performance.
It is also inexpensive and requires a minimum of performance data.
However, the process relies heavily on the memory and judgment of the individuals
providing the ratings, and the ratings may become routinely performed without much critical
thought
The Weighted Point Method
Weighted-point method quantifies the evaluation criteria.
A number of evaluation factors can be included, and their relative weights can be expressed
in numerical terms so that a composite performance index can be determined and supplier
comparisons made.
For example, following evaluation criteria have been chosen: quality of shipments, accuracy
of delivery, and price.
Assuming that quality and delivery are the most significant, a point rating system such as the
following might be used: quality, 40 points; delivery, 40 points, and price, 20 points.
Weighted Point Method
The advantage of the weighted-point plan is that a number of evaluation factors can be used
with relative weights corresponding to the needs of the firm, thereby minimizing subjective
evaluation.
If this individually assigned plan is used in conjunction with the categorical method,
suppliers can be evaluated on a quantifiable basis and many of the intangible aspects of
service can still be considered.
The Cost-Ratio Method
The cost-ratio method relates all identifiable purchasing costs to the value of the shipments
received from the respective suppliers.
The higher the ratio of costs to shipments, the lower the rating for that supplier.
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What cost categories are used depends on the products involved.
Quality, delivery, service, and price are the overall categories, and respective costs are
accumulated for each.
For example, costs associated with quality normally include:-
The costs of unusual visits to a vendor's plants,
Unusual inspection costs of incoming shipments, and
GNFC is using weighted average method for vendor selection and based on that they select their
vendors, vendors play an important key role for GNFC both as purchasing and distributing. Based on
the 3 criteria
The vendor management system is an online system which includes so many features and also
reduced the work time and the process is well systematic and design according to the department
needs and customer wants.
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Research Design
Statement of the problem:-
Study and analysing the proper E-Procurement system and its advantages, and the
vendor participating in the Tendering and measuring their performances
Objective of the study:-
To understand the various process and step for E-procurement
To understand the mechanism used under Vendor management system
To understand the advantages of E-procurement
To understand the merits of the E-procurement and vendor management system
Scope of the study:-
Reduction in cycle time for tender process,
Reduction in the operational expenses,
Reduction in corruption,
More transparent system
Methodology:-
Flow charts
Manual Tendering Process
To know and understand the process of Manual Procurement and E-Procurement using the following
process and with the help of flow charts
Before E-Tendering came into existence, the entire process was manual and it used to involve lot of
people bureaucrats, tedious process and inefficient utilization. The following process Flow Chart
shows manual tendering process
Manual tendering process in
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Communication
Internal
Bidder side
Specify the requirement Bidder
Eligibility, Technical and
Financial Criteria
Tender planning preparation of
tender documents and market
analysis
Tender notice Publication of
notice in the newspaper
Tender question and answer and
sale of tender documents
Preparation of bids and
manual delivery of bid
documents
Receipt and accounting of
tender documents
Opening, comparison and
evaluation of bids
Awarding of contract to the
bidder
Administration of contract
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Objective of E-Tendering
To act as the catalyst for procurement reforms
To enhance transparency, monitoring and control in tendering process
To reduce the cost of doing business for both government and suppliers
Current E-Tendering Process
.
Communication
Internal
Bidder side
E-Tendering
Specify the requirement Bidder
Eligibility, Technical and
Financial Criteria
Tender planning preparation of
tender documents and market
analysis
Tender notice Publication of
notice in the newspaper,
Posting of tender on the website
Downloading the documents
from the website
Preparation of bids and upload
of bid documents on the website
Receipts and accounting of
tender documents
Opening, comparison and
evaluation of bids
Awarding of tender on the
evaluated bidder
Administration of contract
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Key Features of e tendering:-
Time stamping
Digital Signature based encryption
Time based access
Role based Access
SSL usage
E-Tendering Implementation Methodology:-
Core Team Building Up
Buyer Log-in Creation
Digital Signature Certificate
Tender Notice as per e-Tendering
Tender Document as per e-Tendering
Buyer Side process for first 5 e tenders with the help of (n)Procure executive
E tendering is a part of e procurement which involves awarding contracts for the government
undertaking work. The work could be construction and procurement.
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The end to end flow of the e tendering process
The tendering process involves the following eight main processes, which are described in detail
along with their sub process and activities. Each process is explained by flow diagram using process
mapping tools and suggestions for improvement are given wherever required.
1. Buyer Registration
2. New Tender Creation which includes sub processes like (Tender stages can be independently
entered and BOQ can also be independently entered once NIT is created) –
Tender Stages
BOQ
3. Approve Tender
4. Vendor Registration
5. Bidding Process
6. Vendor Stage Fill up
7. Tender Opening Process
8. Bid Evaluation
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Buyer Registration Process - sub processes
Buyer
Registration
ProcurementPre-bid
meeting
Bid
Evaluation
Dynamic
FormsTender
Meeting
Schedule
Bid Evaluation
Activity
Bid Evaluation
Report
Create new
forms
Add and
scrap forms
Create New
Tender
Tender
Summary
Create Offline
Tender
Procurement
Request
My
Procurements
Tenders Under
Creation
Upload
Documents
Approve Tender
Assign Tender
Activities
ApproveCorrigendum
Edit Tender
Tender
Opening
Process
The following are the main processes –
Procurement
Tender
Dynamic forms
Bid Evaluation
Pre Bid Meeting
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.Vendor Process and sub processes
Vendor
Process
Vendor Registration and DSC
issuance
Annual Charge paid -
Online/OfflineDepartment wise
Tender Viewing
Bidding Process
Vendor Process –
The main processes and activities are –
Vendor Registration and DSC issuance –
If the vendor wants to participate in the bidding process, it has to get itself registered with
any certifying authority to procure a DSC and get a username and password to access and log
in to the www.nprocure.com site.
The vendor ones logs in it has to fill in the following information –
Primary Contact Information
Business Information
Activate my account – here the user id and password is entered to select a certificate. There could be
multiple certificate issued to one vendor hence the user has to choose from the list and hit the
activate button.
Annual charge paid online/offline – the vendor pays a fee of usage which is for a time frame.
Department wise Tender Viewing – the vendor can select the department for which it wants
to view the tenders like police, health, medical store, livestock, industrial development etc.
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Vendor Bidding Process
Bidding Process and sub processes –
Bidding
Process
Vendor
Login
New Tender
Search Tender
Submitting bid
stage wise
Joint Venture
Bid Submission
View Notice
Inviting Tender
(NIT)
Accepting Terms
and Conditions
Submit Bids
Download
Documents
Open/limited
Tender
Tender In
process
Document
Library
Past Tender
Profile
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Findings
Security- one of the major reasons for transfer to the new regime of E-tendering is the
higher degree of security it provides. The maintenance and even enhancement of the system
to make it as fool proof as possible is necessary. And the same time, such enhancements
should be communicated to the stakeholders.
Transparency- E-tendering is seen as a step to remove underhanded activities like
cartelization, false non-serious bidders etc. Therefore it is very important that the process
remains transparent.
Corruption- The process has reduced around 80 % corruption in the Gujarat state. All the
state governments are in process to adopt the process. Reduction in the corruption in the
government offices
Economic cost- with increasing competition, prices have to be competitive. And these
would decrease the cost also.
Usage of latest technologies- The government is using latest technologies which are
helpful for customer in many ways. The better transparency has been created with these new
systems.
Ease of Operations- The system has to be easy to operate. This is because we are talking
of government departments, which generally have inertia to change. A difficult to operate
system would increase this inertia further.
Suggestions
Make the online payment process easy
Possible automation of technical evaluation
Technology Audit should be done Every month with an External auditors
Continuous improvements at software and process level from time to time
Availability of tender Formatting Features
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Conclusion
GNFC is the Gujarat Government promoted company as is widely famous in North-
West region and has a Great brand name and GNFC has also maintains a very good
relation with their dealer. And they have maintain their quality, delivery and price,
GNFC pricing is one of the most important factor to maintain its position in the
market as there are many competitors in the market. For any company whether it is
large scale or small or medium scale the most important thing is to maintain a good
relation with their vendors / suppliers because of their efforts business becomes
strong.
(n)code solutions (IT division of GNFC) offers a unique solution to overcome the
operational cost of procurement with effective use of Information Security services
and products. It is licensed from Government of India as a certifying authority under
the IT act 2000 for the issuance of Digital Signature Certificates for the Indian public,
companies and other organizations. (n)code solutions also offers most important
services of E-Procurement.
The portal of e-Procurement services is enabled with end e-Procurement software. The
portal can handles all the activities from the notice of inviting tender to the publishing
of the tender in the electronic form to corrigendum to filling, encryption for security,
and digital signature of online tenders, to multistage evaluation and final conclusion.
And this service is very beneficial for all the government if they start the E-
Procurement services
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References
www.gnfc.in
www.nprocure.com
www.ncode.in
www.gog.com
www.e-procurement.com
CSR report 2012-2013 GNFC
Indian fertilizer .com
Indian IT industry
Vendor Management Doc slide share
Local Government Improvement and Development –
(http://www.idea.gov.uk/idk/core/page.do?pageId=82667)
Program Head Academic Head Dean