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Training & Development at Rashtriya Chemicals & Fertilizers Limited

INDUSTRY PROFILE

India is an Agricultural Nation. Fertilizer Sector is very crucial for the Indian Economy
because it provides an important input for the Agriculture. It has played a pivotal role in
achieving self sufficiency in the food grains. India is the Third largest producer and consumer
of Fertilizers in the world after China and the United States. The growth of the Indian Fertilizer
industry has been largely determined by the policies pursued by the Government. The Industry is
capital intensive and the Production process energy intensive.

Agriculture the backbone of Indian Economy still holds its relative importance for more
than a billion peoples. The Government Of India from time to time has taken considerable steps
for the upliftment of Agriculture Sector. Here we have analyzed the performance of Fertilizer
Industry being one of the vital parts in agricultural production and Government's policy
initiatives for the same.

India fertilizer industry is one industry with immense scopes in the future. India is
primarily agriculture oriented country and its economy is highly dependent on the agrarian
produce. The majority of the populace of India lives in rural areas and the foremost occupation in
the villages is agriculture. Developments pertaining to different industries are being made on a
massive scale to change the country's economy from an agrarian one to a industrial one. It is
extremely important for the fertilizer industry India to have development in terms
of technologically advance manufacturing process and innovative new-age products. 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.

Future Prospective

The Fertilizer Sector had shown an upward trend in the recent months due to the
expectation that the Government may come up with the policies favorable to the Companies in
the sector. The Sector becomes attractive due to the unlimited opportunities to increase the

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volume to fulfill the gap between the Supply and Demand. The Companies with huge investment
plans are waiting for the approval of the DFO. So the sector can outperform in the coming years.

Present Status of Fertilizer Industry

Indian being the third largest producer & consumer of fertilizers in the world with an
installed capacity of Nitrogen (N) and Phosphate (P) nutrients at 14 million tones p.a.
Urea, a nitrogenous type of fertilizer, is most widely consumed in India. Currently the
urea capacity is 20.2 million tonnes while consumption is 21.7 million tones.
Fertilizer production is highly energy intensive with cost of feedstock and fuel alone
accounting for between 55 to 80 per cent of the cost of production. Plants in India are
based primarily on three feedstock – naphtha, fuel oil and natural gas with a significant
proportion of domestic capacity of urea plants based on naphtha or fuel oil which cost
more than natural gas. High cost feedstock and increased production / consumption have
caused a steady increase in fertilizer subsidy.
Installed capacity is 20.8 million MT in the year 2003-04

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COMPANY PROFILE

Background and Inception of the Company:

An ISO 14001:1996 and ISO 9001:2000 certified Rashtriya Chemicals & Fertilizers Limited
(RCF) was incorporated on 6th March 1978 as chemical manufacturer. The Company
operates in two segments includes fertilizers and industrial products, With 20 operating
plants at Trombay and 5 large plants at its Thal Fertilizer Unit.

Nature of the Business Carried :

The company is engaged in Production & Marketing of nitrogenous & complex fertilizers &
industrial chemicals with its manufacturing units at Trombay & Thal & marketing offices in
most of the States of India.

Vision, Mission & Company Policy:

o Vision
To be the number one leader in the Fertilizer Industry by the year 2010 and a major
player in global market.

o Mission
The Company’s mission is :
 To produce fertilizers and chemicals efficiently, economically and in
environment friendly manner.
 To serve the farmers and other customers with quality products along with
support services.
 To join hands in the growth of National economy.

o Company Policy
 Fraud Prevention Policy of RCF- 2010
This policy applies to any fraud, or suspected fraud, involving employees
of RCF (all full time, part time or employees appointed on adhoc / temporary /
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contract basis, probationers and trainees) as well as representatives of vendors,
suppliers, contractors, consultants, service providers or any outside
agency(ies) doing any type of business with RCF.
The policy will ensure and provide for the following:-

1. To ensure that management is aware of its responsibilities for detection
and prevention of fraud and for establishing procedures for preventing
fraud and/or detecting fraud when it occurs.
2. To provide a clear guidance to employees and others dealing with RCF,
forbidding them from involvement in any fraudulent activity and the
action to be taken by them where they suspect any fraudulent activity.
3. To conduct investigations into fraudulent activities.
4. To provide assurances that any and all suspected fraudulent activity will
be fully investigated.

Products & Services

RCF is one of the leading producers of Fertilizers in India. Sujala, Suphala 15:15:15, Suphala
20:20:0, Ujjwala, Microla and Biola are its major fertilizers.All the products can be used with
different soil types and in various climatic conditions.

RCF pioneered the manufacture of basic chemicals such as Methanol, Sodium Nitrate, Sodium
Nitrite, Ammonium bicarbonate, Methylamines, Dimethyl Formamide, Dimethylacetamide in
India. Today R.C.F is the only manufacture of DMF in India. Product characteristics, consumer
needs , economy to the consumers and safety are the primary considerations in determining the
type of packaging and modes of transportation for each of the products.

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Area of Operation

o Marketing Offices
 Andhra Pradesh
 Bihar
 Gujarat
 Karnataka
 Madhya Pradesh
 Chhatisgarh
 Tamilnadu
 West Bengal
 Delhi, Punjab, Hariyana, HP & Chandigarh
 Maharashtra
 Uttar Pradesh, Uttaranchal

o Corporate Office
Priyadarshini Building,
Eastern Express Highway
Sion,
Mumbai-400 022

o Administrative Office
Administrative Building,
Mahul Road,
Chembur,
Mumbai-400 074

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Ownership Pattern

o Shri. R. G. Rajan (Chairman & Managing director)
o Shri. Gautam Sen (Director – Finance)
o Shri. C. M. T. Brotto (Director – Technical)
o Dr. V. Rajagopalan (IAS, Director)
o Shri. Sham Lal Goyal (IAS, Director)

Competitors Information

Company Name Market Capital
(Rs. Cr)
Coromandel International 7255.13
National Fertilizers 3971.23
Gujarat State Fertilizers Limited 3234.04
Rashtriya Chemicals & Fertilizers 3150.14
Limited
Chambal Fertilizers & Chemicals 3044.56
Fertilizers & Chemicals Travancore 1789.15

Gujarat Narmada Valley Fertilizers 1272.88
Company
Deepak Fertilizers And 1141.37
Petrochemicals Corporation
Mangalore Chemicals & Fertilizers 533.32
Zuari Industries 381.11
Southern Petrochemical Industries 263.55
Corporation
Khaitan Chemicals & Fertilizers 140.15
Liberty Phosphate 130.67
Rama Phosphate 109.87

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Basant Agro Tech (India) 37.52
Bharat Fertilizers 25.93
Shiva Global Agro Industries 17.51
Dharamsi Morarji Chemical 15.94
Company
Teesta Agro Industries 6.04

Achievements & Awards

2000-2001
o ‘The Jawaharlal Nehru Memorial National Award – Best Pollution Control
Implementation’, instituted by M/s International Greenland Soc.
o ‘National Energy Conservation Award’, instituted by Ministry of Power,
Government of India.
2003-2004
o ‘Excellence in Safety Award’ – by Fertilizers Association of India (FAI)
o ‘The Jawaharlal Nehru Memorial National Gold Award – Excellent Energy
Conservation Implementation’ – by M/s Greenland Soc.
2005
o ‘Best Quality Circle Concept operation and Propagating Company’ – NMDC
trophy for public section for Quality Circle forum of India
2007-2008
o Golden Peacock Environment Management award launched by Institute of
Director
2009
o Rashtriya Chemicals & Fertilizers (RCF) bagged the MoU Excellence Award
for 2006-07 and 2007-08.
2010-2011
o Rashtriya Chemicals and Fertilizers Limited (RCF) bags “Performance
Excellence Award 2011”

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2012
o Rashtriya Chemicals and Fertilizers Limited (RCF) bagged “Award for
Innovation in Learning” for excellence in learning and Development category
out of 400 companies and institutes.
o “Golden Peacock Environment Management Excellence Award 2012”
o Rashtriya Chemicals and Fertilizers Limited has been awarded with the
prestigious “BHARAT EXCELLENCE AWARD” GOLD MEDAL
(Certificate of Excellence) (Certificate of Felicitation)

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Work Flow Model

RCF Work Flow Model

CMD

EXECUTIVE
DIRECTOR

DGM (HR) GM (HR)
DGM (HRD)
THAL UNIT CORPORATE

SENIOR
MANAGER
(HRD)

MANAGER
HRD

MANAGER (HR)
MANAGER (HR)
CORPORATE

ASST .
SENIOR
DY. MANAGER MANAGER
OFFICER
(HR) (HR-
(HR)
CORPORATE)

SR.OFFICER
ASST. OFFICER
OFFICER (HR) (HR-
(HR)
CORPORATE)

OFFICER HR -
CORPORATE

ASST. OFFICER
(HR-
CORPORATE)

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Work Flow Model – Recruitment

Receipt of requisition by the concerned
Dept

Proposal for obtaining approval of the
competent authority for recruitment.

Estimate from Public Relation Dept. to
release Press Advt.

Publishing Press Advt.

Requisition to be sent to Employment
exchange. Prescribed time limit for
receipt of application

Scrutiny of applications and data entry
of all the applicants / candidates
sponsored by Employment Exchange

Sending Call letters to eligible candidates
and first day of interview

Conducting interview

Selection of candidates

Medical test, issuing Appointment Letter

Caste, Character, Qualification
Verification of Candidates

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Work Flow Model – Promotion

Proposal for obtaining approval of the competent authority for conducting promotion interview.

Checking eligibility for promotion according to the specifications.

Checking prescribed roster to determine the no of vacancies reserved for SC & ST

Checking Extra Ordinary Leave & Medical Leave frequency record from time office availed by the
candidate during specification period.

Preparing Confidential Ratings for last 3 years. Obtaining CMD’s approval in case of Outstanding
Marks or Adverse Marks

Sending CR folders, Property Return and vigilance clearance report to vigilance dept for scrutiny.

Constitution of departmental promotion committee.

Preparing Service Particulars, selection sheet for committee members containing required details of
candidates.

Sending Call Letters to the eligible candidates.

Obtaining approval of proceedings

SAP entries and Pay fixation of promoted employees.

Issuing common orders as well as individual orders of the promoted employees.

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MCKINSY’S 7S FRAMEWORK OF RCF

1. Structure:
o Company has well defined organized structure in terms of distribution of functions
and hierarchy to ensure power of authority, responsibility, unity of command and
overall organizational effectiveness.
o Organizational structure is dynamic in nature at present hierarchy is tall.
o Every department has their own head and these head / managers handle the work.
Work assigned is allocated to the officers who work under the manager.
o Flow of authority & responsibility is top to bottom i.e RCF follows top-down
approach.
o Committee meetings and informal discussions also contribute to open communication
system.
o Being processed industry the nature of work is largely team work, shift wise, plant
wise teams and terms are formed with shift in charge as a leader of respective teams.

2. Strategy:
o For being competitive in the market RCF works out their business strategies in line with
its vision, mission & corporate plan of organization.
o Market intelligence, customer satisfaction survey and demand forecasting techniques are
used to focus customer demands.
o Benchmarking of performance parameters and analysis of business enrollment of
competitors analysis is done on continual basis.
o Government policies and technological changes assessed on continual basis.

3. Skills:
o Managers, directors, chairman & all the trainers at Training Institute are highly
capable & educated.
o With the help of such highly skillful people they introduced various new & simple
systems in the organization, like they started numbering the files, introduction of 5 S,
suggestion scheme, kaizen, so on.

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o Gap in skill set is analyzed at initial stage by effective performance management
system.
o Development of skills is done by imparting training to each and every employee
understanding their KPA.

4. Style:
o Management process is largely participative and total employee involvement is
ensured through various ways.
o They ensure participation of workers at plant through suggestion schemes.
o total employee involvement is ensured through varies productivity improvement,
interventions such as integrated management system, Quality Circle suggestion
schemes, 5S Model, 6 Sigma Model, Kaizen, Safety committee meetings, meetings
with unions, associations, etc.

5. System:
o In RCF they have started using SAP from the year 2006. Sap made their various tasks
easier.
o For communication purpose they send written letters across the internal organization.
They have intranet facility then also they use mode of written communication. As
being the government organization they need acknowledgement of everything so they
need to communicate through letters.
o They are now in the process of digitalization. It clearly defines that now they are
making use of automation & technology.

6. Staff:
o Staff at Rashtriya Chemicals & Fertilizers Limited is very co-operative.
o Their staff is trained on various new things like technology innovation & much other
training are given to them.
o Employees at RCF are capable enough to do the work allocated to them

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7. Shared Values:
o To improve the environment and minimize the harmful emissions, atmospheric
discharges and effluents.
o In terms of shared values they arrange various CSR programs which ultimately guide
employees as well as outside people towards “valued” behavior.
o Also they are implementing “kaizen”.
o They make use of 5’s at their workplace. These 5 primary phases are:

Seiri
• Sorting
Seiton
• Orderliness
Seiso
• Cleanliness
Seiketsu
• Standardization
Shitsuke
• Discipline

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SWOT ANALYSIS

Strengths:

The RCF’s strength lies in its skilled manpower, high Brand Equity for the Products
manufactured such as Ujjwala, Suphala, Microla, Biola, Sujala. The wide spread marketing
network ensures that your company reaches the products to all parts of the country. The
Farmer's Training Institute and R&D Centre ensure that quality services are provided to the
farmers/ dealers by educating them and providing inputs for better crop realization. The
Company has a wide portfolio of chemical products and can withstand difficult economic
situations by adopting optimal mix of production. The well maintained plants and equipment
ensure uninterrupted production and distribution of goods.

Weaknesses:

The Plants have been in operation for a very long time, some of them since 1965 by carrying
out regular upkeep, maintenance and up gradation. The company's working capital is
dependent on the receipt of subsidy payments from government; any delays would force the
company to borrow and incur interest burden. The complex fertilizers are based on imported
raw materials which can face severe volatility in raw material prices and foreign currency
exchange rate affecting the profitability of the company.

Opportunities:

The increased availability of feed stock gas would permit for undertaking major expansion at
Thal. Alternate feedstock like Coal gasification gives an opportunity for undertaking
Fertilizer Projects in other parts of the country. CDM activities enable realization of Carbon
Credits (CER). Due to your Company's good reputation, several opportunities exist for
Collaborations / Diversification in manufacturing, mining and marketing of varieties of
products. Experienced & Skilled Manpower of your company .has been in demand for
rendering O&M service in India and abroad in Countries such as Australia, Bangladesh,
Bahrain, China, Saudi Arabia etc.

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Threats:

Manufacturing and marketing of Fertilizers is the core business of Company. Agro-climatic
conditions have a large effect on the performance of the Company. The chemicals business is
highly susceptible to cut throat global market competition.

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ANALYSIS OF FINANCIAL INFORMATION

The company has maintained proper records showing particulars including quantitative
details & situation of fixed assets with original cost and depreciation written off.
During the year, the Company has not disposed of a substantial part of its fixed assets.
The company is maintaining proper records of inventory. In my opinion, discrepancies
noticed on physical verification of stocks were not material in relation to the operations of
the Company.
As per the information furnished, the company has not granted or taken any loans, secured or
unsecured, to / from companies, firms or other parties.
There is adequate control with regard to purchase of inventories & fixed assets and for sale of
goods.
According to the information the Company has not accepted any deposit during the year from
public.
According to the information, no undisputed amounts payable in respect of provident funds,
investor education, employees state insurance, income tax, wealth tax, service tax, sales tax,
excise duty, cess and other undisputed statutory dues were outstanding, at the year end, for a
period of more than 6 months from the date they became payable.
The company has no accumulated losses at the end of the financial year and it has not cash
losses in the current year.
The company has not issued any debentures and has not obtained any loan from Financial
Institution.
Company has not granted loans & advances on the basis of security by way of pledge of
shares, debentures and other securities.

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LEARNING EXPERIENCE

As a part of my curriculum I spent my 45 days in Rashtriya Chemicals & Fertilizers Limited.
These 45 days of my training was really valuable. I feel I am one who got a chance to work for
HR – Unit as well as for Training Institute which is situated at plant.

Employees in the Rashtriya Chemicals & Fertilizers Limited are very helpful in nature. I found
the work environment is good. I interacted with all those with whom I worked; therefore I have
developed ability of working in a team and also a sense of co-operation.

In starting days I was assigned the work of observing and studying the files of retired employees.
In that I came to know the documents required from the day an employee joins an organization
till the day he retires from his service.

After this I done the work of tagging in that all the documents of retired employees were sorted
on a computer and made computerized file of documents of each employees.

I also worked on Confidential Reports with are the appraisal forms of employees. This document
is highly confidential for the organization as well as for the employee also. I have seen the
reports for workers wherein workers are ranked on 10-pointer scale. There are 150 marks
allocated to them.

For the other half of the day I used to visit training institute of RCF. There I used to sit in library
for long hours. There I read articles & magazines on fertilizer sector in India.

I took interviews of high level authority at training institute and therefore I come to know the
various things followed at RCF at the time of training. And also I have developed on my
communication skills little bit.

Overall the experience at Rashtriya Chemicals and Fertilizers Limited was memorable for me. In
future if I would get a chance to work there I will definitely accept it as working in a Public
Sector and that to as a HR is a challenging task because the manpower strength is very strong.

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