A Report on
INDIAN FARMERS FERTILISER COOPERATIVE LTD.
Submitted in partial fulfillment of the Requirements for the degree of
REG NO. (11PGDM055)
UNDER THE GUIDANCE OF
INTERNAL GUIDE EXTERNAL GUIDE
Prof. PUNEETA GOEL Mr. D.KALIA
(FACULTY OF AAMS) Chief Manager (TRG)
ACHARYA ACADEMY OF MANAGEMENT STUDIES
#3, Lingadheeranhalli,Off Magadi Road, Bangalore-91
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This is to state the training report conducted an organizational study on INDIAN
FARMERS FERTILISER COOPERATIVE LTD (IFFCO), is based on the organizational
work carried out by me under the super vision of my project guide Prof.
PUNEETA GOEL towards the partial fulfillment of requirement for the A.I.C.T.E
approved P.G.D.M. program. This report has not been submitted to any other
university for the award of and degree/diploma.
PLACE: BANGLORE Signature of Student
DATE: SATYA PAL
ACHARYA ACADEMY OF MANAGEMENT STUDIES BANGALORE Page 2
Acharya Academy of Management Studies
(Recognized by AICTE, Ministry of HRD, New Delhi)
#3, LINGADHEERANAHALLI, MAGADI ROAD, BANGALORE-560 091
Tel: +91-80-23245515/16/17/18, Fax: +91-8023245519
CERTIFICATE FROM GUIDE
This is to certify that internship training titled “An organizational study carried out
by Mr. SATYA PAL has been prepared under my guidance and supervision. The
work has been satisfactory and is recommended for consideration towards award
of P.G.D.M. diploma.
Place: Bangalore Signature of Guide
Date: Prof. PUNEETA GOEL
ACHARYA ACADEMY OF MANAGEMENT STUDIES BANGALORE Page 3
Acharya Academy of Management Studies
(Recognized by AICTE, Ministry of HRD, New Delhi)
#3, LINGADHEERANAHALLI, MAGADI ROAD, BANGALORE-560 091
Tel: +91-80-23245515/16/17/18, Fax: +91-8023245519
This is to certify that SATYA PAL, Reg no: 11PGDM055 a student of Acharya
Academy of Management studies during the academic year 2011-2013 has
successfully completed the internship training under the guidance of Prof.
PUNEETA GOEL in partial fulfillment of the requirements for the award of Post
Graduate diploma in Management.
Place: Bangalore Director
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I was advised and guided by a lot of persons, during the course of this
project work, and indeed grateful to all the persons for enabling the successful
completion of this project.
I am highly indebted and grateful to the Director DR. H.R. VENKATESHA
Acharya Academy of Management Studies, for their encouragement and support.
I am indebted to Prof. PUNEETA GOEL Faculty of Acharya Academy of
Management Studies for this valuable advices and kind cooperation, being my
guide and motivator.
I sincerely thanks to Mr. D.KALIA Chief Manager (Training & Development
deptt.) IFFCO AONLA, for their kind cooperation and valuable guidance towards
the successful completion of this project work.
PLACE: BANGALORE SATYA PAL
ACHARYA ACADEMY OF MANAGEMENT STUDIES BANGALORE Page 5
LIST OF CONTENTS
SL. NO. CONTENTS
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8. FINDINGS & SUGGESTIONS
LIST OF CHART:- PAGE NO.
HIERARCHY OF IFFCO 31
FACTORY CHART OF IFFCO AONLA 34
MARKETING CHART 39
UREA DISTRIBUTION CHANNEL PROCESS 40
FINANCE & ACCOUNTS 41
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The Indian fertilizer industry has been supplying a substantial portion of the
growing demand of fertilizers within the country. India is the third largest producer of
fertilizers in the world. There are 60 large size fertilizer plants in the country, manufacturing a
wide range of nitrogenous, phosphates and complex fertilizers. Besides, there are 81 medium and
small scale single superphosphate units.
The cooperative sector has come to play a significant role in the Indian fertilizer industry. In
terms of nutrients, the share of cooperative sector in the installed capacity is 19.7 % for nitrogen
and 10.2 %for phosphate. Indian Farmers Fertilizer Cooperative Limited (IFFCO), a Multi-unit
Co-operative Society established on November 3, 1967 accounts for 64% of the installed
capacity of Nitrogen and the total of the Phosphate capacity in the cooperative sector. In the last
IFFCO has emerged as the pioneer venture in the cooperative sector. It has witnessed a meteoric
rise and has blossomed into the largest manufacturer and marketer of fertilizers in the
country. The success of IFFCO has encouraged the growth of the cooperative movement in
INDIA. The following is an organizational structure study of Indian Farmers Fertilizer
Cooperative Limited with special analysis of the IFFCO Aonla plant.
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The International Fertilizer Industry Association or IFA is a not-for-profit trade association
that represents the global fertilizer industry, on issues related to the promotion of plant nutrients,
improvement of the operating environment of the member companies and the collection and
compilation of industry information.
IFA has some 540 members in about 85 countries. About half of the membership is based in
developing 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 nutrients annually.
These are used in every corner of the globe to support agricultural production. There is no
substitute for the nutrients absorbed by crops. As a major source of these, fertilizers therefore
represent an essential ingredient in the drive towards sustainable agriculture and world food
IFA's membership also includes organizations involved in construction, engineering, consulting,
agronomic research and training.
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Fertilizers have played a vital role in the success of India’s green revolution and consequent self-reliance
in food grains production. The increase in fertilizer consumption has contributed
significantly to sustainable production in food grains in the country. Fertilizer is generally
defined as “any material, organic or inorganic, one or more of the chemical elements required for
India is the third largest fertilizer producer in the world. Fertilizer is a crucial input contributing
to about 40 per cent of the productivity of the crop. With expanding agricultural production,
improvement in technology and growing awareness among farmer, the consumption of
agrochemicals has been on the upswing. The agrochemicals industry is made up of insecticides
(74%), herbicides (20%) and fungicides (6%). India is one among the most dynamic generic
pesticides manufacturing countries with a total market size of Rs 89 billion per annum. And yet,
India’s own average consumption of pesticides is very low at 480gms per hectare which results
in crops worth about Rs 120 billion being annually destroyed by pests. Crop protection has
assumed special importance since food grains demand in the country is supposed to reach an
estimated 343 million tonne by 2020.
The agrochemical industry is spread over around 20 large manufacturers and 600 formulators.
While the organized sector contributes 55% to the industry’s output, the small scale sector makes
up for the balance. The Indian industry has been focusing sharply on integrated crop
management (ICM), increasing exports of genuine pesticides and concentrating on farmer
The pesticide industry is targeting a 10% share of global pesticides market and has been working
on the ICM programmed to introduce safer applications, spray devices and crop protection
through balanced use of biological and chemical pesticide. The exports cover pesticide
intermediates. Pesticides export from India was growing at the rate of 15% and is expected to
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witness a more accelerated growth. Spurious chemicals are growing at rates varying from 10% to
12% and have cornered a large chunk of the market.
The generic pesticide players include Excel Industries, Cheminova India, United Phosphorus,
Rallis India, Aimco Pesticides, Bharat Rasayan, Bayer (India), Aventis, Meghmain Organics etc.
producing a range of products like urea, DAP,MOP, Nitrogenous fertilizer(N), Phosphatic
fertilizer(P), Potassic fertilizer(K) and NPK etc.
To conclude, fertilizer is a key ingredient in ensuring the food security of the country, as it
increases the production and productivity of the soil. The domestic food grain production target
has been set at 320 million tonns by 2011-2012. This target can be achieved by higher
productivity through improved farming practices, expansion of irrigation, better seeds and
extensive and balanced use of fertilizers. Towards this end, the government of India is now
planning to raise the production of urea by the end of 11th Five Year Plan by taking concrete
steps to boost production and productivity. All these things show the definite growth of fertilizer
industry in India.
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Indian Farmers Fertilizer Co-operative Limited
Founded November 3, 1967
Headquarters New Delhi, India
Area served India
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Natwarlal Pitambardas Patel, Chairman
Dr. Udai Shanker Awasthi, CEO
211.9 billion (US$3.84 billion)(2010-11)
Net income 7.914 billion (US$143.24 million)(2010-11)
INTRODUCTION ABOUT IFFCO
The fertilizer industry in India consists of three major players; The Government
owned Public Sector undertakings, Cooperative Societies like IFFCO, KRIBHCO and units
from Private sector. There are about 33 major producers producing N and NP/NPK fertilizers in
the country at present. The fertilizer industry of India had made constructive use of the fertilizer
provided by the Government of India to ensure that the country achieved reasonable self-sufficiency
in food grain production. The fertilizer industry has organized itself through S
Fertilizer Association of India (FAI) to coordinate with the Government of India to achieve the
macro-economic objective related to agriculture sector and to provide other services.
During mid- sixties the co-operative sector in India was responsible for distribution
of 70 per cent of fertilizers consumed in the country. This sector had adequate infrastructure to
distribute fertilizers but had no production facilities of its own and hence dependent on
public/private sectors for supplies. To overcome this lacuna and to bridge
the demand - supply gap in the count ry, a new coope ra t ive soc ie ty wa s
conceived to specifically cater to the requirements of farmers. Thus was born
IFFCO , the world’s largest fertilizer cooperative.
It was a unique venture in which the farmers of the country through their own co-operative
societies created this new institution to safeguard their interests.
Indian Farmers Fertilizer Cooperative limited, a multi- state Cooperative has emerged
as a role model for cooperatives Over 44 years of its inception; IFFCO has turned into a true
Cooperative – Of the Farmers, By the Farmers and For the Farmers. IFFCO has
steadily grown in strength and stature from a modest membership of 57 soc ie t ie s in 1967 -
68 to 39564 soc ie t ie s a s on 31 St March,2011. The initial equity capital of Rs.6
lakh contributed by the cooperatives in 1967-68 has also gone up to a paid-up capital of Rs.426
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crore. Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered
on November 3, 1967 as a Multi-unit Co-operative Society. On the enactment of
the Multistate Cooperative Societies Act 1984 which was amended in 2002, the Society is
deemed to be registered as a Multi state Cooperative Society. The Society is primarily engaged
in production and distribution of fertilizers. The bye laws of the Society provide a
broad framework for the activities of IFFCO as a Cooperative Society. A pioneer in this field,
IFFCO’s growth reflects its belief in the strength of the farmer. Several prestigious awards stand
testimony to the fact that IFFCO is driven by its values and the dedication of its people.
This is an organization that believes in fair play and has always followed transparent
and professional practices in corporate governance.
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The Indian Farmers Fertilizer Co-operative Limited (IFFCO) is a national level multi-unit
cooperative society engaged in manufacturing and marketing of chemical fertilizers. The Society
was registered in 1987 and presently having a membership of over 37,000 cooperatives as
shareholders. IFFCO is presently operating four factories located at Aonla and Phulpur in Uttar
Pradesh and Kalol and Kandla in Gujarat. IFFCO produced over 6 million tones of fertilizers in
2004-05 and contributed about 18% to the total Nitrogen and 24% to the total P205 produced in
India. IFFCO markets its fertilizers through Cooperative Agencies and Member Cooperative
Societies. Aonla project of IFFCO is one of the six natural gas based fertilizer plants set up in the
country on the H.J.B. pipe line which runs through four statuses. This project has been designed
to produce 7.26 lake tons of Urea per year with plant capacity of 1350 TPD Ammonia and 2200
TPD of urea .The site is 28 km south west of Bareilly on Bareilly Aonla Road .
The total land acquired by IFFCO Aonla unit is 1273 acres for factory and township.
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 compressor
etc. In addition to these infrastructures facilities such a railway station siding etc. are also
AONLA PLANT (evening view)
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PLANTS OF AONLA UNIT:
There are mainly four plants in the unit namely:
There are two streams of Ammonia Plant having the capacity to produce 2x1520 MTPD
of liquid ammonia. The technology is based on Holder Topside, Denmark process with natural gas and
naphtha as main raw material.
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There are four streams of Urea Plant having the capacity to produce 2x1310 MTPD of urea
fertilizers. The technology is based on Snamprogetti, Italyon ammonia stripping process.
PRODUCT HANDLING PLANT:
Product handling plant is composed of Urea storage known as Silo and packing and transport
activities. Two silos of 45,000and 30,000MT capacity have been provided to Urea
product to ensure continuous urea production even if it is not taken off due to non-availability
of rail wagons or seasonal demand fluctuations.
STEAM AND POWER GENERATION PLANT:
To me e t the cont inuous power supply needs of the main plants, captive power plant and
stem generation facilities have been provided. In this plant, two gas turbines each
having the capacity of 18MWalong with heat recovery steam generation unit has
been provided to cater to the plant needs of power and steam. Additionally, HRU unit of
Ammonia –II add to the steam supply of the complex.
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OBJECTIVES OF IFFCO:-
The main objectives of the Society are as follows: -
o IFFCO is a cooperative institution of the farmers by the farmers.
o Strengthening cooperation distribution system.
o Educating and guiding the farmers.
o Promoting nations growth through modern farming techniques.
o Improving agriculture productivity, through balance fertilizer applications.
o To promote the activity for enriching the life of rural.
o To achieve self reliant and self generated economy.
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MAJOR AWARDS RECEIVED BY IFFCO
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Seven awards for all performance from FAI.
Two awards for industrial safety from GOI.
Awards technical innovation from FAI.
Two Rajya Bhasha shields for promoting Hindi.
Awards for safety from National safety council, Chicago.
Four awards for productivity from NPC.
Six national safety awards for GOI.
Two awards for overall performance from FAI.
Two awards for technical innovation from FAI.
Three national energy conservation awards.
There awards for west environment protection from FAI.
Awards for west implemented project (II nd prize) from GOI.
Awards for conservation of energy from GOI.
Aonla wins CII Environmental Best PracticesAward-2011.
IFFCO Aonla Unit has been awarded the 'EDGE' winner prize.
IFFCO Aonla & Paradeep Unit have won the prestigious FAI awards presented on 3rd
IFFCO Aonla Wins "Gold Award“10th Annual Green tech Environment Excellence
IFFCO Aonla Unit Wins National Safety Council of India Safety Award-2004
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Ten safety awards from National Council, Bombay GOI.
Twenty one-safety awards from Gujarat Safety Council, Baroda.
Nineteen awards for safety from National safety council, USA.
Five awards for overall performance from FAI.
Rajya Sabha awards for promoting Hindi.
Best productivity awards from NPC.
LOGO OF IFFCO
The Logo any organizations is very important by which the company is known to everyone or
that is identity of the company. After one year of establishment in 1968 the organization has
decide to make Logo of IFFCO. The executive of the company said that which can be easily fit
any place or easily changeable according to the place & made by simple geometrical method. So
the Logo is made by at last Mr. M.R.Gupta chief visualize developer is like that
Logo’s green color shows the faith of the farmers, they believe that after Using the urea
their fields will always be green, the remaining white color shows that the quality of the IFFCO’s
product is very good & oval shape is meant for prosperity.
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BUSINESS PRINCIPLES OF THE COMPANY
The principles of the company are as follows:
o Appreciation of national need of generation up to optimum return of investment.
o To fair price of the product manufactured by the company is subsidy to the
o Total consumer satisfaction as a quality of product, price of the product and better
service after selling the product.
o Effective management information system.
o To increase the efficiency to maintain better human relation and discipline among
all the employees.
o To maintain better human relation and discipline among all the employees.
o To develop good relation with customers.
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KEY RESULT AREAS OF IFFCO
1. FERTILIZER PRODUCTION: The main aim of IFFCO is to remove the
dependence of the Indian Fertilizer sector on Foreign Imports. For achieving
this goal IFFCO runs and maintains its Five Production plants and also aims
to increase its production capacity by adopting new technology and acquiring new
2. PROMOTION OF AGRICULTURAL AND RURAL DEVELOPMENT: To
achieve this target IFFCO undertakes production, processing and manufacture of
insecticides, pesticides, seeds, agriculture machinery and implements and other
agricultural production requisites by setting up or taking on lease manufacturing units
either directly or in collaboration with or as a joint venture with othe r
C o o p e r a t ive I ns t it ut io n. A ls o I F F C O ’ s C O RD ET is a ma j o r endeavor in
3. DEVELOPMENT OF AGRICULTURAL COOPERATIVES: IFFCO aims to
undertake, promote, assist and encourage development of cooperatives with special
thrust on sustainable agriculture and tries to provide for social, economic and culture
development of the members through cooperative bodies, voluntary institutions
and other entities. IFFCO also promotes re se a rch and t ra ining on the
applic a t ion of mode rn management , te chnology and globa l experience
for cooperative development
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VISION & MISSION OF THE IFFCO
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VISION - 2015
In pursuit of its growth and development, IFFCO had embarked upon and successfully
implemented its Corporate Plans, ‘Mission 2005’ and ‘Vision 2010’. These plans have resulted
in IFFCO becoming one of the largest producer and marketer of Chemical Fertilizers by
expansion of its existing Units, setting up Joint Venture Companies Overseas and Diversification
into new Sectors.
IFFCO has now visualized a comprehensive plan titled ‘Vision-2015’ which 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
c) Diversification into other Profitable Sectors.
d) Strengthening its raw material sourcing through Strategic Joint Ventures in India and abroad.
e) Strategic Alliances through IFFCO Consortium.
The salient features of the ‘Vision-2015’ document are as under:
a) To stand as a Global Leader in Fertilizers Production to cater to the food security need of the
b) Maximizing the synergies of the Core Business through Downstream Value Additions and
Forward/ Backward Integrations.
c) Enhancing presence in International Markets through Strategic Joint Ventures and Synergistic
d) Diversification into other profitable businesses to maximize returns to our stakeholders.
e) Leveraging State of the Art Technologies and Global best practices to retain its global
f) Promoting Integrated Nutrient Management to improve efficiency of Fertilizer use and
promoting location specific research on efficient fertilizer practices.
g) To bring in Sustainability and Strategies to prevent Climate Change by reducing Energy
Consumption, better Resources Management and promoting Renewable Energy sources.
h) To help the Cooperative Societies become economically strong, professionally managed and
to equip the Farming Community with advanced agricultural practices for improved
Productivity, to ensure an Empowered Rural India.
i) Achieve Fertilizers Production / Marketing target of 15 million Tonne per annum with an
annual turnover of Rs. 30,000 crores.
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To provide to farmers high quality fertilizers in right time and in adequate qualities with
an objective to increase crop productivity.
To make plants energy efficient and continually review various schemes to conserve
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Commitment to health, safety, environment and forestry development to enrich the
quality of community life.
Commitment to social responsibility for a strong social fabric.
To institutionalize core values and create a culture of team building, empowerment and
innovation which would help in incremental growth of employees and enable
achievement of strategic objectives.
Foster a culture of trust, openness and mutual concern to make working a stimulating and
challenging experience for stake holders.
Building a value driven organization with an improved and responsive customer focus.
A true commitment to transparency, accountability and integrity in principle and
To acquire, assimilate and adopt reliable, efficient and cost effective technologies.
Sourcing raw material for production of phosphates fertilizers at economical cost by
entering into joint ventures outside India.
To ensure growth in core and non-core sectors.
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As far as Indian farmer is concerned, IFFCO's NPK/DAP is not
just a source of crucial nutrients N, P, K for the crops, but is an
integral part of his/her quest for nurturing mother earth. The
bountiful crop that results from this care is an enough reason for
the graceful bags of IFFCO NPK/DAP bags to be an integral
part of the farmer’s family. 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. The Indian farmer's confidence and trust stems from the
fact that IFFCO's NPK/DAP are merely a part of a complete package of services, ably supported
by a dedicated team of qualified personnel. More importantly, they are aware, IFFCO is a
cooperative society owned by farmers cooperatives.
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.
NPK COMPLEX GRADES
NPK complex fertilizers produced at Kandla are DAP based grades. At present two grades Grade
I - 10:26:26 and Grade II - 12:32:16 are produced. Granular NPK complexes are free flowing
and do not pose any problem during handling and storage. However, exposure of material for
long period to very high humidity may cause caking. Therefore, NPK complexes are bagged in
quality tested HDPE bags to prevent ingress of moisture.
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IFFCO's Urea is not merely a source of 46% of nutrient nitrogen for crops, but it is
an integral part of millions of farmers in India. A bag of IFFCO's urea is a constant
source of confidence and is a trusted companion for Indian farmer.
When farmers buy IFFCO's urea, they know that what they get is not just a product
but a complete package of services, ably supported by a dedicated team of qualified
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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. It has also numerous industrial uses notably for production of plastics. Hat
it is their own urea produced and supplied by a cooperative society owned by the iffco.
BIO – FERTILISERS
A bio fertilizer unit was established at Cooperative Rural Development Trust, Phulpur (Uttar
Pradesh) in 1996 - 97 and other at Kalol (Gujarat) in 2008-09 with an annual capacity of 75 MT
and 165 MT respectively of different cultures such as Rhizobium, Azotobacter, PSM,
Azospirillium and Acetobacter
PHOSPHATE SOLUBILISING MICRO ORGANISM - Several soil bacteria and fungi possess
the ability to bring insoluble phosphates into soluble forms by secreting organic acids. They can
be applied to and recommended for all crops
RHIZOBIUM - It is the most important nitrogen fixing organism. It live symbiotically in the
root nodules of leguminous plants and supply nitrogen to the plant through nitrogen fixation.
Besides, supplying nitrogen to the crop, nitrogen fixed by legume - Rhizobia association would
also leave residual nitrogen for the succeeding crops. The beneficiary crops are Groundnut,
Soybean, Red-gram, Green-gram, Black-gram, Lentil, Cow pea, Bengal-gram and Fodder
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AZOTOBACTER - It is non symbiotic nitrogen fixing bacteria recommended for non
leguminous crops like Paddy, Wheat, Millets, Cotton, Tomato, Cabbage, Mustard, Safflower and
Sunflower. The AZOTOBACTER performs well if the soil organic matter content is high.
ACETOBACTER - It is a symbiotic bacteria capable of fixing atmospheric nitrogen by living
within the sugar plant. They are found in all parts of plant body. It is suitable for sugarcane
AZOSPIRILLIUM - It is an associative micro Europhilic nitrogen fixer is commonly found in
association with the roots of cereals and forage grasses. The beneficiary crop includes
Sugarcane, Vegetables, and Maize, Pearl millet, Rice, Wheat, Fodders and Oil seeds.
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IFFCO Aonla Unit is committed to achieve satisfaction of its co-operative society, farming
community and customer by manufacturing and supplying specified quality product, by
Improvement of enhancing / maintaining productivity and growth.
Creating safe and healthy working condition and eco-friendly environment.
Co-operation and team sprite.
Development of Human Resources.
Continual improvement of effectiveness of its quality management system.
Aonla Unit is committed for continual improvement and protection of environment by setting
and renewing its objects and targets through environmental management system focusing at:
Compliance of legislation related to stack emissions, efficient discharge, and ambient air
and water quality.
Conservation of water resources.
Emergency preparedness for safety of plant and concerned personnel.
Effluent and waste minimization.
Development of all round awareness and competence on environmental issues.
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Any operating organization should have its own structure in order to operate efficiently. For an
organization, the organizational structure is a hierarchy of people and its functions.
The organizational structure of an organization tells you the character of an organization and the
values it believes in. Therefore, when you do business with an organization or getting into a new
job in an organization, it is always a great idea to get to know and understand their organizational
Depending on the organizational values and the nature of the business, organizations tend to
adopt one of the following structures for management purposes.
Although the organization follows a particular structure, there can be departments and teams
following some other organizational structure in exceptional cases.
Sometimes, some organizations may follow a combination of the following organizational
structures as well.
Bureaucratic structures maintain strict hierarchies when it comes to people management. There
are three types of bureaucratic structures:
The organization is divided into segments based on the functions when managing. This allows
the organization to enhance the efficiencies of these functional groups.
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These types of organizations divide the functional areas of the organization to divisions. Each
division is equipped with its own resources in order to function independently. There can be
many bases to define divisions. Divisions can be defined based on the geographical basis,
products / services basis, or any other measurement.
When it comes to matrix structure, the organization places the employees based on the function
and the product. The matrix structure gives the best of the both worlds of functional and
divisional structures. In this type of an organization, the company uses teams to complete tasks.
The teams are formed based on the functions.
Every organization needs a structure in order to operate systematically. The organizational
structures can be used by any organization if the structure fits into the nature and the maturity of
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HIERARCHY OF IFFCO
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BOARD OF DIRECTORS
ORGANISATION STRUTURE OF IFFCO
The organization structure of IFFCO is such as to provide a high degree of collaboration among
the managerial personal. This help in attaining staff effectiveness. The structures consist of both
line & staff managers but there is clear demarcation in their authorities & responsibility. Through
the structure provides unlimited power to the manager yet most of the manager believes in
benevolent leadership. This is the main reason behind the new record made by IFFCO.
The Head Office of IFFCO is situated at New Delhi. It has cooperative staff that plays a link pin
role between cooperating units of Kalol, Kandla, Phulpur & Aonla units. There are five zones.
Each zone has its own headquarter of each zone is as follows;
North zone Chandigarh
East zone Kolkata
West zone Bhopal
North Central zone Lucknow
South zone Bangalore
Each headquarter has certain no. of neighboring states under it & the functioning of those states
is controlled by the particular headquarter; each state has a State Office under each zone. Under
each state office there is Area Office & under each Area office there are Service sectors.
The organization Structure of IFFCO consists of Board of Director. The government of India
nominates two member of the board. The member of cooperatives societies nominates rest of
the members. A chairman is the functional Head of his organization since he has an elected
member. There is also a vice chairman elected by the member of the Board of director. Once of
the members of Board of directors is the Managing Director. The MD is the Executive Head
since he is an appointed member. The MD is responsible for carrying out all the function of the
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The MD controls the function of the following;
Executive Director (Personal & Administration)
Executive Director (Technical)
Executive Director (Technical service Deptt. / Planning & Development)
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FACTORY CHART OF IFFCO AONLA
Sr. General Manager
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F & A
NPK & DAP
F & A
IFFCO cons is ts of both line and s ta ff manage r but the re is c le a r is
demarcation among their authorities and responsibility. The theme of Organization Effectiveness
is to have a high degree of collaboration among the managerial personal through the structure
provides unlimited. Power to the manager yet of the manager believe in benevolent it leadership.
This is the main reason behind the new records made by this unit.
GENERAL MANAGER OF OFFCO:-
Gene ra l Manage r ha s the highe s t authority of IFFCO Aonla whose decision is final and
followed by whole organization.
FINANCE AND ACCOUNT DEPARTMENT:-
The department co-operative with all division and complies the organization
financia l result such a profit and loss account and balance sheet, budgeting etc.
PERSONAL & ADMINISTRATION DEPARTMENT:-
It isresponsible for formulation policies procedures in personal andadministration as whole under
this all personal function, welfare, t ime - office, security and hospital related functioning are
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 are
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The department of Utilities performs the function of stream, power and in offsite
purification of water of recycling.
Here under technical services and engineering service of fire and safety training research
development, energy conversion scheme, safety and population appliances take place and
All materials, purchasing included under this department and are managed according to the
need of the hour.
Planning documentation civil factory, civil engineering working and all changes regarding
these to are controlled and managed by this department.
Those is planned to considerable consolidation and integrates the data base and further provide
service beyond the operation level requirements in application for material
management, production reporting, financial management, personal management etc.
It looks after the facility t o employee and their families for organization on construct for the
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MARKETING & DISTRIBUTION
A strong marketing team and a sound distribution network make the bottom line secure. Backed
by this belief, IFFCO has gone all out to extend its reach, resulting in the highest-ever sales of
fertilizer material this year. With the completion of Kalol Expansion Project, IFFCO is all set to
realize the objective of producing 100 lake tone of fertilizers, thereby attaining the distinction of
world leader in fertilizer production. Every fourth bag of fertilizer produced and every third bag
of fertilizer sold in the country belongs to IFFCO. Around 40,000 cooperative societies and 158
Farmers Service Centers spread cross 29 states and union territories in India make
sure that IFFCO’s products- NPK/ NP/DAP/UREA- are easily available to farmers.
These impressive figures have been made possible largely because of the fact that IFFCO
distributes its products through cooperative channels. Though the cooperative
structure may differ from state to state, the goal is to reach out to each district, taluka and village
and hence sell more. This year, IFFCO has dispatched around 86 lake tone of fertilizer material
from its plants and ports by rail and road. With the aim of delivering to the
doorstep of the farmer in all parts of the country, the organization hired storage space at more
than 1,700 locations.
IFFCO’s Farmers Service Centers not only supply material less than one roof, they are used as
contact points for providing technical know-how to farmers. These Centers also
organize promotional programmed such as soil test campaigns and farmers’ meetings.. During
2009-10, IFFCO has notched up a record sale of 93.24 lake tone of fertilizer material
comprising of 54.29 lake tone of urea and 38.95 lake tone of NPK/ DAP /NP witnessing a
growth of 8.3% as against 86.10 lake tones in the previous year. Best ever marketing
productivity also sprang to 6158 tone/head.
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DISTRIBUTION & WAREHOUSHING
Distribution of Urea and inter-state movement is under government controlled and is regulated
under the Essentia l Commodit ies Act (ECA) 1956. Under ECA, supply plan for
Urea is formulated by the government in consultation with the State Department Of
Agriculture and Fertilizer industry. IFFCO urea is moved from factory to field warehouse
by both road and rail. Movement through rail is resorted to on a ne ed ba s is to
dis tant loc a t ions at the shor te s t t ime . Consumption of urea is seasonal thereby
rendering transportation, storage and distribution is very important.
Urea Distribution Channel Process:-
IFFCO PRODUCTION AREA OFFICE
S O C I E T I E S WARE-H O U S I N SUB AREA OFFICE
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F A R M E R S
Fertilizer distribution Both by Rail (90%) and Road (10%).
300 Km. Distance by Road.
For warehousing following services are uses:-
Federations & Cooperative Godown.
Central Warehousing Corporation (CWC)
State Warehousing Corporation (SWC)
FINANCE & ACCOUNTS
FINANCE & ACCOUNTS DEPARTMENT
In spite of constraints in availability of raw materials, and inordinate delays in receipt of large
subsidy amounts from Government of India, IFFCO has yet again delivered an impressive
financial performance in all its major parameters, namely, Revenue Growth, Operating Margins
and Resource Utilization testifying to robustness of its Corporate Strategy of creating multiple
drivers of growth. This was possible due to higher production, sales volume and improvement in
operating efficiencies. The Society achieved the highest ever.
Sales turnover of Rs211.9 billion in 2010-11 . This represents an increase of 18 per cent over the
previous year. It was brought out by higher volume of Sales of Fertilizer materials, which
increased to 93.24 Lakh tone fertilizer during 2009-10 as against 86.10 lakh tone in the previous
year. The performance is even more satisfying when viewed in the light of challenging business
environment of fertilizer industry.
The various area covering under the preview of 3 subsections are as follows:
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P & L
This section basically deals with accounting function, maintenance and keeping of records.
The various functions include:
Books: Preparing and maintaining balance sheets.
FICC (Fertilizer Industries Coordination committee)
Costing & Pricing Cells
PAY ROLL SECTION:-
Aonla Unit undertakes processing of salary and other staff related payments of all employees
through Human Resource Management System (HRMS). It is an integra ted
pa ckage ba sed on Ora c le DBMS. The Sys tem integra te s Pe r sonne l &
Administration Department and Finance & Accounts Department.
Simultaneously, Financial Accounting System (FAS) which is also based on Ora c le DBMS
ha s be en launched in F&A DEPARTMENT through which Gene ra l Ledger
Sub Ledger of Employees are maintained and Trial Balance and Financial Accounts
are generated. There is also inter- relation of HRMS and FAS so that cash payment/receipt
vouchers, Bank Payment Vouchers and Journal Vouchers generated in HRM are
automatica lly posted online to Payroll Section of Finance & Accounts Department.
As per the status and operation of the society, it deals with the following Taxes-
Central Excise Duty.
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HUMAN RESOURCE DEPARTMENT
No vision, however grand, can be fulfilled without the cooperation of its people. Recognizing
this fact, IFFCO has made a sustained investment in its people, creating an environment
that attracts the best talent. At IFFCO, we see teamwork at its best. Employees at all levels
share a common dream, a dream that is understood in IFFCO ’s Vision 2015. Hence,
enhancing skills is of great significance for the organization. Other initiatives to help the
growth of its people included workshops on human values, leadership and work
ethics. There were also many technical activities that led to development and skill up
gradation. Employees were sponsored for participation I prestigious both in India and abroad.
With the firm belief that Information and Communication Technology (ICT) helps the people
and the organization to grow together, IFFCO has augmented its work flow
applications. The Corporate Data Centre in New Delhi has been refurbished with the latest
technology. A new VPN was created to provide round-the-clock connectivity in the plants, zonal
office and head office. IFFCO has, over the years, successfully showcased its image in India and
overseas. Its achievements and its contributions to the farming community are highlighted in
The HRD Ce ll ensure s adequa te supply prope r quantity and quality as well as
effective of human resources. The Human resources Management refers to the
approach to the problem of selecting t r a ining, mo t iva t ing a nd r e t a ining,
p e r s o nne l in a ny o r ga niz a t io n. An organiza t ion will de te rmine its man
powe r ne eds and the ir find out the sources from the requirement will be met.
It carries out following activities:-
For recruitme nt and se lec t ing bot h internal as we ll a s external sources are used.
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Promotion of workers from the lower to upper rank according to the eligibility
In IFFCO the External Recruitment is restored it is happen only when
internal sources dry up. Here is no agency and the vacancies are not field in employment
exchange not by advertisement in news paper is also given in –
External Sources 40%
Internal Sources 60%
As regardless selection process the company has laid the criteria for screening
the application are screen out and the application are called for psychological and personality.
Selection is done by a selection committee consisting of head of concern department
and external specialist and their decision.
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Most of the employees are then required to undergo extensive off the job
and on the job training in various disciplines.
POSTING & TRANSPER:-
Regardless of the post to which the employee is initially appointed and the station where
he is posted IFFCO reserves the right to transfer from one post to another post and from one
station to anothe r anywhe re in INDIA inc luding t rans fe r in new Establishment
that might be started in future.
IFFCO has fixed and written promotion policy. The policy is based seniority and merit.
Usually IFFCO give the promotion to the employee according their qualification and Grade wise.
Generally merit is given weight age.
An employee service may be terminated at any time on one month (but not less than 30
days) notice on either site or by the employee.
I N D U S T R I A L R E L A T I O N : -
I F F C O h a s s e t u p h e a l t h y relationship with other industry and it
encourages this type of relationship industry feel the proud with dealing IFFCO. The main
function of IR section is as follows:-
o Complianc e of Sta tutory provis io n.
o De a l in g wi t h unio n.
o P a r t ic ip a t e d Dis p ut e .
IFFCO deals with various welfare activities (like sport and cultural programs
for employee’s canteens etc.)
IFFCO keep track of employee’s attendance. Employees are electronic cards which are to
be electronically punched at the time entering and leaving the office.
IFFCO has its own board of employee’s providence fund as per EFP and Mice. Provision
Act 1952 and PF benefits shall be as IFFCO EPS rules.
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I n t he I F F C O t he r e t i r eme nt a nd s up e r annulations shall be at the age of 58
Inventories encompass finished goods produced or work in process being produced by the
enterprise and include materials, maintenance supplies, consumables, loose tools awaiting use in the
Types of inventory:
Inventory of raw materials
Inventory of stores and spare parts
Inventory of work-in-progress
Inventory of finished goods
The largest producer of fertilizers in the country, IFFCO has five state-of-the-art
plants that ensure its special position. These are considered to be among the best professionally
managed fertilizer plants in the world.
IFFCO had set up the KALOL plant for manufacture of Nitrogenous Fertilizer and KANDLA
plant for manufacture of Phosphoric fertilizer. These plants commenced commercial production
in the year 1974-75. Ammonia - urea complex was setup at Phulpur in the state of Uttar Pradesh
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The ammonia - urea unit at Aonla was commissioned in 1988. As part of the new vision and in
order to augment its complex fertilizer manufacturing capacity, IFFCO
acquired DAP/NPK/NP plant in Paradeep, Orissa in September 2005. This was a historic
moment, for it was the first private sector unit to be acquired by any Indian cooperative.
The Paradeep unit was expected to achieve an optimal production load during 2008-09. During
2007-08, IFFCO’s plants rolled out 68.47 lake tonne of fertilizer material comprising 39.63 lake
tone of urea and 28.84 lake tonne of NPK/ DAP / NP which
be a r s ample te s t imony to its supe r la t ive pe r formanc e . IFFCO market share in
‘N’ production is 20 percent and 25 percent in P2O5 Produced in the country. IFFCO has
initiated energy saving schemes in all its five ammonia plants at a cost of Rs. 410 crore.
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CORPORATE SOCIAL RESPONSIBILITIES
In line with its vision and mission statement, IFFCO has undertaken several social
activities in the areas of education, community development, environment protection and horticu
lture, health care/medical facilities etc, all with the intent of reaching out to those in need and
improving the quality of their lives. Adopting a villages of paramount importance to IFFCO. The
programmed started with an objective to bring about overall development in the living standards
of rural community through integrated rural development with particular
emphasis on agriculture development, creation of drinking water facilities, medical and veterinar
y check up.
IFFCO ha s adopted 439villages, thus empowering many lives. Another scheme that
benefits the farmers is Sank at Haran Bima Yojana, launched by IFFCO’s subsidiary, IFFCO-Tokio
General Insurance Company Limited (ITGI). Here, farmers are provided insurance against
accidents with the purchase of a 50 kilogram bag of IFFCO fertilizer. This reaches out to
member cooperative societies. The policy has helped over 7,000 people since its inception
in September 2001.
ITGI also offers customized policies for farmers such as Barish Bima Yojana, Mausam Bima
Yojana and Janta Bima Yojana. IFFCO has initiated several promotional projects to provide
greater opportunities to the farmer by organizing field days, farmers meetings, sales point
personnel training, crop seminars, special agriculture campaigns to effect transfer of
mode rn fa rming t rends . Besides, kits containing seeds, fertilizers, bio-fertilizers and
agrochemicals along with Booklets/ literature were distributed to farmers. The aim: enhancing
crop productivity and thus improving lives. In keeping with its intent of empowering the weaker
sections of society, including women, IFFCO presents monthly scholarships to deserving
students and also organize straining programmed for women. The organization has instituted 17
IFFCO Chairs at agricultural universities and cooperatives. The emphasis is on current topics in
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agriculture. IFFCO uses its 12 storage-cum-community Centers for helping people come together
and share their experiences.
The environment is a major concern with IFFCO. Its units and townships comprise beautiful
landscapes, surrounded by trees. IFFCO is also committed to improving the safety, health and
environment of its manufacturing units, in line with international norms. The Kalol, Phulpur,
Aonla and Kandla units have been awarded the ISO- 14001 certificate for Environment
Management System. Further, the Kalol, Phulpur and Aonla plants have received the ISO-9001
certification for Quality Management. IFFCO has contributed Rs 10 crore to set up the IFFCO
Kisan Sewa Trust. This Trust assists farmers in getting medical treatment. Employees also
contribute regularly to it. The Kisan Sewa Trust organizes cancer detection and eye camps and
arranges for blood through the Red Cross Society. The IFFCO Foundation has been promoted as
the think tank of the organization. Its objective is to focus on strengthening village level
cooperatives in harmony with the law and culture of the country. Indian Farm Forestry
Development Cooperative Limited (IFFDC), promoted by IFFCO, was given a certificate of
appreciation by the Tata Energy Research Institute for its efforts towards good corporate
citizenship. The Cooperative Rural Development Trust provides practical training to farmers
and has organized 229 programmed in 2008, benefiting 22,221 farmers.
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IFFCO OPERATING PLANTS
IFFCO’s four modern fertilizer plants in operation Kandla & Kalol in Gujrat, Phulpur & Aonla
in Uttar Pradesh have a total production capacity of about 27 lack tones of bulk fertilizer
annually the kalol plants has an annual production capacity of three lake tones of ammonia and
3.99 lake tone of urea. The Kandla plant has annual production capacity of 3.09 lake tones of
P2O5. Aonla project of IFFCO is one of the six natural gas based fertilizer plants set up in the
country on the H.J.B. pipe line which runs through four statuses. This project has been designed
to produce 7.26 lake tone of Urea per year with plant capacity of 1350 TPD Ammonia and 2200
TPD of UREA. The site is 28 km south west of Bareilly on Bareilly Aonla Road . The total land
acquired by IFFCO Aonla unit is 1273 acres for factory and township.
( AONLA TOWNSHIP GATE)
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SWOT analysis is a technique through which managers create a quit overview of a company’s
strategic situation. It is based on the assumption that an effective strategy derives from a sound
fit between firms internal resources (strength & weakness) and its external situation
(opportunities & threats). A good fit maximizes a firm’s strength and opportunities and
minimizes its weakness and threats.
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1. Fertilizer is the basic raw material for agriculture production NO GOVT. can dare to
make policies which are not conducive to the farmers.
2. Demand of fertilizer is more in the country than the production capacity therefore
whatever is produced will be sold.
3. Government ensures the availability of raw material (NG/NAPHTHA) at reasonable price
as it has at subsidy of fertilizer is subsidizing product.
4. IFFCO is a co-operative organization and selling its product through co-operative
channel. There are only to organization IFFCO & KRIBCO. It means not much
competition in the channel.
5. All plants are of latest technology of art and are in healthy condition.
1. 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
2. Price of the product cannot be raised and government pay the subsidies as per its
calculation of fertilizers cost.
1. IFFCO can cut on cost by reducing energy consumption for per MT of UREA, thereby
enhancing its profitability. IFFCO has taken up energy saving product in all its five
AMMONIA plants at the cost of Rs 410 corer.
2. IFFCO can also reduce its fixed cost per MT of UREA by enhancing its production
capacity & thereby increase in production and profitability. IFFCO has taken up capacity
enhancement project for all its Ammonia & Urea plants.
3. IFFC O also taken up power project at Chhattisgarh.
4. IFFCO has also contributed 25% Equity in OMAN India fertilizers company (OMIFCO).
5. IFFCO is also perusing a multiproduct KISSAN SEZ at NELLORE in A.P.
6. IFFCO has also entered into a long term of take and supply agreement with international
holdings of AUSTRALIA for supplying rock phosphate to insure raw material supply
NPK/DAP fertilizers plants.
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1. 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.
2. If supplies of NG suffer due to an region. It will be reflected in production of IFFCO.
3. NAPHTHA is also imported Gulf countries. Its rates are not stable in the international
market & it availability is also affected by its international demand.
4. Rock phosphate is also imported to produce NPK/DAP at IFFCO’s Kandla & Paradeep
unit. Supply of Rock phosphate is also a threat to the production NPK/DAP. It rate are
not stable in the international market.
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With the finding of NG at KG basin of RIL most of requirement of fertilizers units will be meet
for the countries on resources and dependability on the import will be reduce thereby ensuring
the raw material supply to the fertilizer unit at reasonable price. Further IFFCO has made long
term agreement for procurement of Rock phosphate with various countries to overcome. It major
threats of raw materials for the production of NPK/DAP therefore it can be said that IFFCO is on
sound footing to protect it stability and enhance it profitability by cutting on cost and increasing
production in years to come.
1. IFFCO is doing its best to conserve energy & keeps it consumption at lowest label.
2. Enhance its production by enhancing the capacity of the existing plants & constructing
3. Reducing cost by low energy consumption & increasing production to enhance it
4. Ensure supply of raw material by entering into agreement nationally or international with
5. IFFCO also care for the community. This commitment is reflected in many ways on day-to-
day bases. IFFCO believes in the welfare of society. It has embarked on much
corporate social responsibility (CSR) project. These projects cover education community
development environment & health.
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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:
o Moisture control.
o Reusable and strong.
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1. The organiza t ion should e s tablish a na t iona l leve l commit te e which
c an familia r ize the government with the ground realities in the Fertilizer sector and
also advise the government in forma t ion of Polic ie s rega rding dis t r ibut ion
of fe r t il i ze r s , impor t of fe r t il ize r s and subsidies.
2. The re should an Ent repreneur ship Deve lopment Ce ll a t a ll plants
which should encourage innovation amongst employees. This would infuse some
of the positives of an organic design in to the organizational environment. This cell
should lay new business ideas and innovations in front of the top levels of management.
3. Unnecessary sub-divisions in departments should be eliminated to promote
efficiency. In the Personnel & Administration department one sub-division can handle
both Legal Matters and Contract Laws.
4. The Inspections & Plant Health Department can be dissolved. The
Maintenance Department can have an additional sub-division for Inspections & Plant
Health. This will streamline the organizational structure and also increase the efficiency
of overall maintenance.
5. The Co - ope ra t ion should not be r igid in its approa ch and should be
re ady to fa c e sudden variations in business environments. Managers
should not limit themselves to following regulations blindly but should proactively
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The organizational study of the IFFCO Aonla Plant and also the analyses of IFFCO
in general demonstrate that a bureaucratic organizational structure is not always inefficient. In
fact if properly applied it has many positive aspects especially in large and complex
organizations. For example some types of rules and regulations are required to avoid
unpredictability and arbitrary action. Some sort of hierarchal arrangement is necessary to manage
the large number of people in an organization. Therefore the key is to utilize the characters of a
bureaucratic structure but not to over emphasize on them as those results in rigidity in the
structure. In a bureaucratic organizational structure an efficient business environment may be
created by having the right mix of mechanistic and organic models. IFFCO's experience has
also shown that cooperative sector can succeed even in high investment high
technology areas like fertilizer production. The large scale extension activities and cooperative
development programmed have strengthened the bond between IFFCO and the Indian
farmers who are the consumers as well as members of the village level cooperative
societies. The confidence generated by this success has paved way for a vigorous
growth programmed to expand its existing units as we ll as e s tablish new units .
This will enable IFFCO to eme rge as a globa l le ade r in production and marketing
of chemical fertilizers located in a single country.
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IFFCO Company’s Annual Report 2010-11
Kotler Philip ‘MARKETING MANAGEMENT’ 13TH EDITION. “MARKETING DEPARTMENT”
GREEN BERG & BARON: “BEHAVIOR IN ORGANIZATION”, 2003, PRENTICE –
HALL OF INDIA PVT. LTD.
Dr. D.KALIYA CHIEF MANAGER (TRAINING & DEVELOPMENT) IFFCO, AONLA.
P.MATHUR MANAGER (TRAINING & DEVELOPMENT) IFFCO AONLA.