PURPOSE OF STUDY
To understand the working environment of different
To study and analyze the policies and practices
regarding production adopted by the Aonla unit.
To observe the effectiveness of company’s
To analysis the level of investment in production of
fertilizer by IFFCO
The following is an organizational structure study of Indian Farmers
Fertilizer Cooperative Limited with special analysis of the IFFCO Aonla
Indian Farmers Fertilizer Cooperative Limited (IFFCO), a Multi-unit Co-operative
Society established on November 3, 1967.
Aonla project of IFFCO is one of the six natural gas based fertilizer
plants set up in 1988, 28 km south west of Bareilly on Bareilly Aonla
This project has been designed to produce 7.26 lake tons of Urea per
The project consists of main plants, Ammonia plant, urea plant, steam
generator & power generator plant, other offsite facilities like water
supply and treatment system storage for spares consumables &
products, bagging plant laboratory, Inert gas plant, instrument air
INDUSTRY PROFILE OF FERTILIZERS
International Fertilizer Industry Association or IFA is a trade association that
represents the global fertilizer industry. IFA has some 540 members in about 85
countries. IFA member companies represent all activities related to the production, trade,
transport and distribution of every type of fertilizer, their raw materials and intermediates.
The global fertilizer industry produces some 170 million tonnes of fertilizer
is a crucial input contributing to about 40 per cent of the productivity of
the crop. India is one among the most dynamic generic pesticides manufacturing
countries with a total market size of Rs 89 billion per annum.
The fertilizer industry in India consists of three major players; The Government
owned Public Sector under takings, Cooperative Societies like IFFCO, KRIBHCO
from Private sector. There are about 33 major producers producing N and NP/NPK
fertilizers in the country at present.
COMPANY PROFILE OF IFFCO
Indian Farmers Fertilizer Co-operative Limited
Founded November 3, 1967
Headquarters New Delhi, India
Area served India
Key people Natwarlal Pitambardas Patel, Chairman
Dr. Udai Shanker Awasthi, CEO
Revenue 211.9 billion (US$ 3.84 billion)(2010-11)
Net income 7.914 billion (US$ 143.24 million)(2010-11)
VISION & MISSION OF THE IFFCO
VISION – 2015
In pursuit of its growth and development, IFFCO had embarked upon and
successfully implemented its Corporate Plans, ‘Mission 2005’ and ‘Vision 2010’.
IFFCO has now visualized a comprehensive plan titled ‘Vision-2015’ which will be
guided by the following objectives:-
a) Production of fertilizers through expansion of existing units.
b) Setting up of fertilizer production facilities in India and outside the country
through joint ventures.
c) Diversification into other Profitable Sectors.
d) Strengthening its raw material sourcing through Strategic Joint Ventures in
India and abroad.
e) Achieve Fertilizers Production / Marketing target of 15 million Tonne per
annum with an annual turnover of Rs. 30,000 crores.
To provide to farmers high quality fertilizers in right time and in adequate qualities
with an objective to increase crop productivity.
b. To make plants energy efficient and continually review various schemes to conserve
c. Commitment to health, safety, environment and forestry development to enrich the
quality of community life.
d. Commitment to social responsibility for a strong social fabric.
e. A true commitment to transparency, accountability and integrity in principle and
f. Building a value driven organization with an improved and responsive
g. To acquire, assimilate and adopt reliable, efficient and cost effective technologies.
FINANCE AND ACCOUNT DEPARTMENT:-
The department co-operative with all division and complies the organization
financial result such a profit and loss account and balance sheet, budgeting etc.
PERSONAL & ADMINISTRATION DEPARTMENT:-
It is responsible for formulation policies procedures in personal and
administration as whole under this all personal function, welfare, time-office, security
and hospital related functioning are dealt.
Under this department the maintenance of all of mechanical, electrical maintenance,
telephone and mechanical services are included.
Here under the production and all other related of production of Ammonia and Urea
All materials, purchasing included under this department and are managed according to
the need of the hour.
It looks after the facility to employee and their families for organization on construct for the
MARKETING & DISTRIBUTION:-
IFFCO urea is moved from factory to field warehouse by both road and rail. Movement
through rail is resorted to on a need basis to distant locations at the shortest time.
Consumption of urea is seasonal thereby rendering transportation, storage and
distribution is very important.
distribution channel process:-
IFFOCO PRODUCTION AREA OFFICE SUB AREA OFFICE
FARMERS SOCIETIES WAREHOUSE
PRODUCT PROFILE OF IFFCO
NPK- The two grades of NPK produced by IFFCO, 10:26:26 and 12:32:16, indicating
the content of N, P, K proportion, is tailor made to supply the exact composition
required for replenishment of the soil.
DAP(DI-AMMONIUM PHOSPHATE)-It is the most popular phosphate fertilizer because
of its high analysis and good physical properties. The composition of pure salt of DAP
is N-21.19% and P210 -53.76%.Fertilizer grade DAP is 18:46:0.
UREA-Urea is the most important nitrogenous fertilizer in the country because of its
high N content (46%N). Besides its use in the crops, it is used as a cattle feed
supplement to replace a part of protein requirements.
Fertilizer is the basic raw material for agriculture production. Government can not dare to
make policies which are not conducive to the farmers.
Demand of fertilizer is more in the country than the production capacity therefore whatever is
produced will be sold.
Government ensures the availability of raw material (NG/NAPHTHA) at reasonable price as it
has at subsidy of fertilizer is subsidizing product.
IFFCO is a co-operative organization and selling its product through co-operative channel.
All plants are of latest technology of art and are in healthy condition.
As per by law of the company it can fallows the co-operative channel only for sale of its
product. In case demand fall short in the channel company end up with higher stock inventory.
Price of the product cannot be raised and government pay the subsidies as per its calculation
of fertilizers cost.
IFFCO can cut on cost by reducing energy consumption for per MT of UREA, thereby
enhancing its profitability.
IFFCO can also reduce its fixed cost per MT of UREA by enhancing its production capacity &
thereby increase in production and profitability.
IFFCO has also entered into a long term of take and supply agreement with international
holdings of AUSTRALIA for supplying phosphate to insure raw material supply NPK/DAP
NG supply in the country is not sufficient to meet present country requirement. However NG
in liquid form is imported from various gulf countries and rigidified at petro net in Gujrat to
meet demand of fertilizers units.
If supplies of NG suffer due to an region. It will be reflected in production of IFFCO.
Supply of Rock phosphate is also a threat to the production NPK/DAP. It rate are not stable in
the international market.
Majority of the farmers are using IFFCO product and rest are using other including Tata,
Narmada & others.
60% of the farmers are waiting for a particular brand of fertilizers.
Most of the farmers are selecting the fertilizers on brand basis and second major criteria to
select the fertilizers are availability.
90% of the farmers desired for the plastic bag and only 10%for the jute bag.
70% of farmer’s desire 50kg pack & rest 30% prefer 25kg pack.
In a village about 60% farmers meetings,15% Field Day,10% Socioeconomic &15% Other
Promotional Programmed were organized by IFFCO.
I found that farmers are satisfied with the IFFCO fertilizers even in un adopted villages.
There are a number of reasons to prefer the plastic bag:
Reusable and strong.
INDIAN FARMERS FERTILIZER COOPERATIVE LIMTED is the
one of the biggest and the most popular company in India.
IFFCO manufactured fertilizer products like UREA, NPK, DAP
IFFCO provide both quantities & qualities products at good
price for farmers.