1. RAJESH SAMANTA
PGDM- II
Roll No- DM14B31
MADRAS FERTILIZERS
LIMITED
PROJECTREPORT
(A Government of India Undertaking)
Regd Office: Post Bag No.2, Manali, Chennai – 600 068. Tel :
25942281 / 25945203 Fax : 25943613
Website : www.madrasfert.nic.in email : cs@madrasfert.co.in
BATCH- 2014-2016

2. 1
DECLARATION
We hereby declare that the work presented in this
Project entitled “Analysis of Madras Fertilizers ltd”
submitted to mentor.
At Pune Institute of Business Management, Pune is an
authentic record of our original work.
Signature of Mentor Signature of Candidates

3. 2
ACKNOWLEDGEMENT
The satisfaction and joy that accompanies the successful
completion of a task is incomplete without mentioning
the name of the person who extended his help and
support in making it a success.
We are greatly indebted to my Project Guide and Mentor
for devoting his valuable time and efforts towards my
project.
We thank him for being a constant source of knowledge,
inspiration and help during this period of making
project.
RAJESH SAMANTA
PGDM II
Roll No: - DM14B31

4. 3
CONTENT
Page No.
Introduction 4
CompanyProfile 5
Objectives 6
Performance 7
Promoters 9
Products 11
Services 14
Competitors Analysis 16
Company’s History 17
MarketingStrategy 24
Business Finance 29
Human Resource Management 31
Future Plan 36
Achievements 37
Conclusion 38
Bibliography 39
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5. 4
INTRODUCTION
India is basicallyan agricultural country which economy
depends largelyupon its agrarian produce. Agricultural sphere
contributes about25% to the country’s GDP. Indian fertilizer
industry has a tremendous scopein and outside the country as
it is one of the allied parts of agriculture.
Today,Indian fertilizer industry is developingin terms of
technology.Indian manufacturers are adoptingadvanced
manufacturingprocess to prepare innovative new products for
Indian agriculture.India has entitled as the third largest
producer and exporter on nitrogenous fertilizer.
Growth of Fertilizer Industry in India
Fertilizer industry in India is meetingall the requirements of
agricultural industrysince the sale of its inception in 1906.The
plant for fertilizers manufactures was set up in the same year
in RanipetChennai.Then established the first two large-sized
fertilizer plants one was the fertilizer and chemicals Travancore
of India Ltd. (FACT)in Cochin,Kerala and the one was
Fertilizer Corporation ofIndia (FCI) in Sindri, Bihar.
These two were establishedas pedestal fertilizers units to have
self-stuffiness in the production of food grains. Afterwards the
industry gained impetus in its growth due to green revolution
in late sixties followed by seventies and eighties when fertilizer
industry witnessed an incredible boom in the production.The
tremendous demand of fertilizers had led the country to invest
huge in the public, corporative and in private sectors.
At presentIndia has more than 57 large sized plants on
fertilizers, manufacturingwide assortmentof fertilizers
includingnitrogenous,phosphate,Ammonium Sulphate(AS),
Calcium Ammonium Nitrate (CAN) urea, DAP and complex
fertilizers. Apart from it, there are other 64 small and medium
scale Indian manufacturers producingfertilizers.

6. 5
COMPANY PROFILE
MFL was incorporated on December 8, 1966 as a joint venture
between GOIand AMOCOIndiaincorporated ofU.S.A (AMOCO)
in accordance with the FertilizerFormation Agreementexecuted
on 14.5.1966 with equity contributions of 51% and 49%
respectively. In accordance with the participation agreement
between GOI, AMOCO and National Iranian Oil Company
(NIOC), an undertaking of Government of Iran, NIOC acquired
50% of the shareholdingofAMOCO in MFL on 22.11.1972.With
this acquisition, shareholding of AMOCO and NIOC were at
24.5% each, with the balance 51% being held by GOI.
Subsequently, on 22.7.1985, the shareholding of AMOCO was
proportionately purchased by GOI and NIOC. As a result, GOI
and NIOC shareholding was revised to 67.55% and 32.45%
respectively.Subsequentto the issue of rights shares in 1994 for
part-financingthe project, the holdingofGOI and NIOC stood at
69.78% and 30.22% respectively. MFL had an initial public
offering of its shares in May 1997.
MFL Chairman and ManagingDirectoris I Vijaykumar.Market
Capitalization6.3% to GDP. MFL is engagedin the manufacture
of Ammonia, Urea, Complex Fertilizers and Bio fertilizers.
MFL's activities include marketing of these fertilizers and
trading in Agro Chemicals in accordance with the corporate
objective. MFL has been striving to develop and maintain an
Organizational environment, that motivates the individual,
encourages personal initiative, innovation and creativity. MFL
has its plant facilities and headquarters located on 329 acres of
freehold land at Manali, about 20 km north of Chennai city.

7. 6
OBJECTIVES
MISSION
Mission is to achieve all round excellence in the spheres of
manufacture and marketing of Chemical Fertilizers, Bio
fertilizers, Agrochemicals pavingway for increased Agricultural
production and productivity, maximizing Shareholders value
and guarding interest of all Stake-holders of the Company.
VALUES
Carry out functions and duty with utmost Sincerity, Speed,
Equity, Integrity and Transparency and without any fear or
favor.
STANDARDS
Have setupon the standards forall transactions.Undertake that
in case of likely or inevitable delay, promptly communicate the
same to the party concerned.
COMMITMENTS
 Produce and distribute qualityfertilizers conformingto the
specifications.
 Timely distribution of our fertilizers to ensure consumer
satisfaction
 Continual up gradation of Technologyand Developmentof
Human Resources
 All officers who deal with the public will carry an Identity
Card.
 Keep the Personal and Business information disclosed to
us confidential.

8. 7
PERFORMANCE
In 2010 the Company’s operations for the year ended with a
profit of Rs.6.88 Cr against loss of Rs.145.38 Cr in the previous
year mainly on account of implementation of New Pricing
Scheme (NPS)-Stage III amendment by GOI restricting the
reduction in fixed cost to 10% for 2009-10.
In 2011 the Company’s operations for the year ended with a
profit of 169.86 Cr (Previous Year 6.88 Cr) mainly on account of
better production performance and lowerenergyconsumption in
Urea operations coupled with One Time Settlementbenefit from
Financial Institutions.
In 2012 the Company’s operations for the year ended with a
profit of 111.99 Cr (Previous Year169.86 Cr). This is the highest
ever operating profit made in any year since inception if
extraordinaryitems (OTS benefit)is nottaken into account.This
could be possible mainly because of 100% capacity utilization of
Urea achieved for the first time in the history of the Company.
0 50 100 150 200 250 300 350 400 450
2014
2013
2012
2011
2010
362.08
424.12
319.82
270.07
210.66
105.8
24.44
111.99
169.86
6.88
Growth/DEgrowth
Profit After Tax Net Sales
In Cr.

9. 8
In 2013 the Company’s operations for the year ended with a
profit of 24.44 Cr (Previous Year 111.99 Cr). Sales is increase
424.12 (Previous Year 319.82)this is because the productivity is
increases and PAT decreases because long term debt and short
term debt is taken higher.
In 2014 the Company’s operations for the year ended with a
profit of 100.04 Cr (Previous Year 24.44 Cr). The total
accumulated loss as of 31.3.2014 was 380.72 Cr. (Previous Year
480.76 Cr).
PORTER’S FIVE FORCES MODEL
Competitive
Rivalry
Threat of
New Entity
Buyer
Power
Threat of
Substitution
Supplier
Power
The amount of interest
paid in terms of Section 18
along with the amounts of
the payment made to the
supplier.
Claims for liquidated
damages against suppliers
are accounted for on
recovery of the same from
their bills and adjusted to
the cost of assets or to the
materials / works as the
case may be.
Benefits derived as a result of the above efforts,
e.g. product improvement, cost reduction,
product development, import substitution, etc.
Continuous losses have arisen due to cost and
time over run during revamp of Ammonia and
Urea Plants.
Efforts for streamlining logistics
operations on cost effective basis
continued this year also and 87% of
the products were directly delivered
to the dealers and dealer to buyers.
Finished products are valued at lower
of cost or net realizable value
including final / estimated subsidy.
Top competitors are Coromandel Int,
GSFC, Rashtriya Chem etc
Close competitors are SPIC, Zuari
Global, Oswal ChemandFe etc
As the value in use could not
be assessed with reasonable
accuracy, the Company has
considered net selling price
for ascertaining impairment
loss.
Due to Dematerialization- No
risk of loss / misplacement /
theft / damage of share
certificates.

10. 9
PROMOTERS
SHRI K.M. GUPTA, IES
Economic Advisor, DOF
SHRI RAJIV YADAV, IAS Additional
Secretary and Financial Advisor, DOF
SHRI MOHAMMED
HASSAN GHODSI
NICO Director
SHRI AHMAD AZMOODEH NICO
Director
SHRI MOHAMMAD ALI
AHMADI
NICO Director
Dr. I VIJAYAKUMAR, IRS CHAIRMAN
AND MANAGING DIRECTOR
SHRI C.M.T. BRITTO
Director - Technical (Additional
Charge)
CA. MUKESH MOHAN GUPTA
BIFR Nominee Director

11. 10

12. 11
PRODUCTS
CHEMICAL FERTILIZERS
 UREA
 NPK - Complex(17:17:17)
 (14:28:14)
 (19:19:19)
 (20:20:0:13)
 NK Mixture (20:0:10)
 MOP (Imported)
 DAP (Imported)
VIJAY Urea
VIJAY Urea with 46% Nitrogen is an economical Nitrogenous
fertilizer suitable for all crops and all soil types. It can be used
separatelyas a top dressingfertilizer or in combinationwith
other fertilizers also. It is suitable for foliar application also.
VIJAY Complexes
VIJAY complexes are granulated fertilizers containing
Nitrogen, Phosphorousand Potash.As the nutrients are
presentin balanced proportion,they are ideal for application as
basal fertilizers to all the major crops.
VIJAY 17:17:17,which was introduced in 1970,is our flagship
product, which enjoys high farmer preference,on accountof its
excellentperformance leadingto bumperyields. It was the first
balanced complexfertilizer to be introduced in Indian market,
with all the three nutrients availablein equal proportion.The
nitrogen in VIJAY17:17:17 is in Amide and Ammonical forms,
making it ideallysuited for early growth and vegetative phases
of all crops.

13. 12
BIO FERTILIZERS
 Azospirillum (Paddy)
 Azospirillum (Othercrops)
 Azospirillum (PlantationCrops)
 Rhizobium (Groundnut)
 Rhizobium (Pulses)
 PhosphorBacteria (All Crops)
 NP Bio (All Crops)
A healthy soil alone can utilize the applied chemical fertilizers
efficiently and lead to high yields. The health of the soil is
maintainedby various factors, the most importantbeingthe soil
microbes.Continuouscultivation results in microbial population
being depleted. Inoculation of Bio fertilizers in cultivated soil
results in multiplication of the microbial population. MFL, with
a view to maintain good health and fertilityofthe soil,introduced
Bio fertilizers under the brand name "VIJAY BIO".
VIJAYBio-fertilizers come in two categories,viz.,Nitrogen fixers
and Phosphate Solubilizes. The Bio fertilizer range is wide and
covers the requirements of all crops under all soil / climatic
conditions.
AGRO CHEMICALS - NEEM BASED
 VIJAYNeem - 300 ppm
 VIJAYNeem - 1500 ppm
MFL markets Neem based Pesticides, under the brand
name VIJAY NEEM. Of late, biological and botanical pesticides
have gained importance, as they are environment friendly and
highly effective with negligible residual content in agricultural

14. 13
produce. Neem based products occupy an important place in
botanical pesticides. VIJAY Neem is based on neem kernel
extract and has a wide spectrum of activity against majorpests,
which infest both commercial and food crops.
VIJAY NEEM is presented in 300 ppm
and 1500 ppm, in packing’s of 100 ml to 20 liters, to
suit the needs of all categories of farmers.
VIJAYNEEM can be used as a 'standalone' pesticide.Theunique
feature of VIJAY NEEM is that pests do not develop resistance
to it. This enables farmers to repeatedlyuse the productwith the
same effectiveness for a long period of time.

15. 14
SERVICES
Conductingbusiness with social responsibilitypresupposes
contributions to the community development. Based on this
objective, MFL has taken keen interest in fulfilling the needs of
the community in Manali area. MFL’s contribution to the
community include Rs.75 lakhs for the construction of an over
bridge across the railway line in the link road to Manali and a
modern community centre at Manali. MFL has also constructed
class rooms for about 400 school children in the Government
High School,Manali.In the same school,MFL has constructed a
library building and equipped it with books and provided with
furniture, fans and electrical, MFL has also provided annual
scholarships to meritorious SC/ST students. MFL has also
organized health checkups for school children and provided
drinking water facilities and provided tri-cycles to physically
handicap in and around the Manali Town. MFL has provided a
Computer for Manali Town Panchayat Office. MFL has also
provided Sodium vapor lamps for street lights in Manali Town
Panchayat area.
Providingvocational trainingto Diploma in Commercial Practice
/ Graduate Engineer Apprentices / Trade Apprentices (ITI).
There are 25 Diploma Commercial Practice Trainees, 50
Graduate Engineers Apprentices and 70 Trade Apprentices.
Renovated and Repaired 70 noon meal centers in Kancheepuram
District. Deputed one Sr Officer for National Literacy Campaign
for 2 years.
SERVICE TO FARMERS
 MFL Inspection Team has well-qualified and experienced
Mechanical Engineers.
 MFL Inspection Team has in-house facilities for carrying
out condition monitoring of Process Plant Static
Equipment, Pipelines and Rotating Equipment and Non-
Destructive Testing Inspection,for our own requirements.

16. 15
 Additionally, to share the experience gained, MFL
Inspection Team is taking up third party services to other
Fertilizer Plants, Refineries and Petrochemical Plants
throughout India for the last 25 years.

17. 16
COMPETITORS ANALYSIS
Name Last Price Market Cap. Sales Turnover Net Profit Total Assets
Coromandel Int 321.05 9,177.21 9,380.52 344.85 3,626.38
GSFC 108.7 4,331.45 5,412.49 342.17 4,939.45
Rashtriya Chem 68.45 3,776.31 6,587.60 249.89 4,175.48
Chambal Fert 65.25 2,715.76 7,981.89 303.07 6,506.29
Fert and Chem 32.35 2,093.28 2,220.73 -264.96 561.15
NFL 37.1 1,820.05 8,029.09 -89.71 11,702.20
GNFC 89.5 1,391.00 4,847.19 292.27 7,479.35
Deepak Fert 138.4 1,220.76 3,816.28 243.88 2,312.83
Zuari Agro Chem 283 1,190.24 5,197.05 26.16 3,419.42
Mangalore Chem 81.7 968.27 3,310.26 70.93 2,140.16
Oswal ChemandFe 31.6 811.52 108.03 71.63 2,223.33
SPIC 24.6 500.96 1,345.47 65.86 628.66
Madras Fert 18.1 291.59 2,593.47 100.04 258.69
Zuari Global 97.3 286.46 175.85 26.14 730.39
Agri-Tech 6.65 3.95 0.07 0.23 20.3

18. 17
COMPANY’S HISTORY
YEAR EVENTS 1966 - Madras Fertilizers Ltd. was
incorporated on 8th December,as a JointVenture between GOI
and Amoco India Incorporated of USA in accordance with the
Fertilizer Formation Agreementexecuted on 14th May with
equity contributionsof 51% and 49% respectively.
- The Companyis engaged in the manufacture of ammonia,
urea and complex fertilizers at Manali,Chennai,MFL is also
engaged in manufacturingbio-fertilizers and marketing
fertilizers and agrochemicals underthe brand name `Vijay'.
1968 - The Companyhas entered into a Purchase Agreementon
March 21, for an annual requirementof 250,000 MT with
Madras Refineries Limited,a companyheld by GOI & NIOC,
with relevantclauses for quality and quantity determination.
1975 - The Companyhas the unique distinction in plant safety
record of continuous 3190 accidentfree days (8 years and 9
months)from 10.02.75 to 05.11.83amountto 19.8 million man-
hours of operations withoutanydisablinginjury.
- MFL has entered into a long term agreementwith TNEB on
August23, for supplyof Maximum Demand 22,000KVA.
1991 - The Companyreceived an award from Fertilizer
Association of India for `outstandingperformancein the
performance in the production of phosphatic' fertilizers during
the year.
1992 - MFL commissioned a Hydrolyzer Stripper plant for
treating effluents from ammoniaand urea plants.The

19. 18
Companyhas also developed a green belt in the plant campus
covering about30 acres.
- Farmers Service Award for the year instituted by Gandhi
Gram Rural Institute,Tamil Nadu.
- The Companyhas established about150 upcountry
warehouses through the State/Central Warehousing
Corporations and otherprivate warehousingagencies.
1993 - The Companyreceived the Jawaharlal Nehru Memorial
National Award by International Greenland Society,
Hyderabad for effective implementation ofpollution control
methods.
- The Companygot the Second prize in National Energy
Conservation for the year.
- MFL was also successful in getting a $3 million Technical
Managementcontract from the State Fertilizer Manufacturing
Corporation in Sri Lanka.
- The Companyincreasedthe capacity of the Ammonia Plantby
40% from 750 tons per day to 1050 TPD. The Company
increased the capacity of the Urea Plantby 66% from 885 TPD
to 1475 TPD.
- The companyhas entered into long term purchase contract on
October, 18th, with M/s. Indian Ocean Fertilizer,South Africa
for the supply of phosphoricacid.
1994 - MFL has entered into a purchase agreementfor an
annual requirementof 2,50,000MT of Naphtha with M/s.
Madras Refineries Ltd. a PSU situated close to MFL.
- MFL has entered into a long term supplycontract with M/s.

20. 19
Indian Ocean Fertilizer, South Africa for supplyof phosphoric
acid.
- The Companyinstalled dual pipe reactor system in NPK `B'
train to enhance production rate,reduce fuel consumption and
replacement of product cooler in the NPK Plant.
1995 - The Companyhas been enteringinto a Memorandum of
Understandingwith the Departmentof Fertilizers, Ministry of
Chemicals & Fertilizers,GOI for the past 4 years. The
Companywas awarded "Excellent"rating for the year 1995-96.
- The Companyis the first PSU in the Fertilizerindustry to get
the ISO 9002 certification effective 1st November.
1996 -The companyhas set up a Reverse Osmosis Plant to take
care of any future water shortages.
1997 - The companyis enteringthe capital market for the first
time with an initial public offering (IPO) of Rs.42.95-crores in
286.30 lakh shares is Rs 10.00 each at a premium of Rs 5.00, to
raise Rs 42.95-crore from the public.
- Since April 1996,COL has entered into an agency agreement
with anotherMumbai-based,closelyheld, Ventron Chemicals
Ltd (VCL), for marketingthe latter products.
- The Rs 660-crore Madras Fertilizers Ltd (MFL) plans to set up
a sulphuricacid plant, with a 400 ton per annum capacity at its
Manali plant nearChennai.
- The drop in production of NPK was due to the shutdown of the
ammonia and urea plants from early March this year till the
end of September.The shutdown was in connection with the
hookingup of the old plants with the new plants constructed at
a outlayof Rs.573-crores.

21. 20
- The Madras Fertilizers plant located at Manali nearChennai
was closed down on November30 amidst speculationthat it
was due to a gas leak. The gas, identified as ammonia,has
reportedlycaused some irritation and breathingproblems in
nearbyvillages and the matter was reported to company
officials and the Pollution Control Board (PCB).
1998 - MFL had been assigned an MA-ratingin August1993 by
the InvestmentInformationand Credit Rating Agency on its
fixed depositprogramme.
- Though the revamped Ammonia/Urea Plants were
commissioned duringSeptember1997,owingto initial teething
problems and the steam limitation,commencementof
commercial production of Urea was delayed to March 3, when
steam was available from the new PC Boiler for regular use.
- The Companyalso commenced marketingof an eco-friendly
neem based pesticide viz. "Vijay Neem" during the year under
arrangementwith M/s. Fortune Biotech Ltd (FBL), Hyderabad,
who commissioned their "The State of Art" plant for the
manufacture of Azadirachtin.
- The MoU for the year 1998-99was signed with GOI during
April.
- The Companywas selected for the prestigious "Energy
Conservation Award" for the year 1996-97 by the Ministry of
Power,Govt. of India for implementingvarious energy
conservation schemes.
- The Companyreceived "Best Environmental and Ecological
ImplementationGold Award" from International Greenland
Society for the year 1997-98.

22. 21
- The Companyalso received "Best Tax Payer Award" in the
category of Employerfor the year 1995-96 which was presented
by the Hon'ble Union Ministerfor Finance.
1999 - The governmentwas proposingto reduce its stake to
eight per cent from 58 per cent for which the second largest
shareholder,the National Iranian Oil Companyrecentlygave
an in-principle approval.
- Biwater Plc, which has been awarded the Bangalore water
supply project, has entered the race for the construction of a
$100 million effluentre-use plant for Madras Fertilizers and
Refineries industries complexnearChennai.
- A Memorandum of Understanding(MoU) was signed between
the MFL and the Departmentof Fertilizers, Ministry of
Chemicals and Fertilizers.
- MFL signed an MoU with Monsanto Enviro Chem System Inc.
(MECSI) in June,underwhich MECSI will rectify the problems
afflicting the prill tower.
- The governmentalso proposes to convert Rs 80-crore of loans
into preference shares.
- MADRAS Fertilizers Ltd (MFL) is likely to face the threat of
zero inventoryand consequentlymayshut down its plant
"temporarilyfor maintenance",apart from pressingin other
options,if the truck strike continues for the next few days.
- MADRAS Fertilizers Ltd (MFL) will switch over from naphtha
to LNG for feedstock. The State-owned entityhas also made the
necessaryarrangements to tie up with Dakshin BharatEnergy
Consortium which is headed by Siemens for feedstock supplyto
the project.

23. 22
- MFL also proposes to set up a 25 MW captive power plant. Of
this 18 MW would be used by MFL while the balance would be
sold to the grid. Ideally,MFL is lookingto set up this plant on a
BOT basis with a lifespan of at least 10 years.
- MFL has also entered into an agreementwith Madras
Refineries Ltd. Under the agreement,MRL's current overdue of
Rs. 55 crores would be converted into a term loan repayable in
four years.
- MFL plans to reintroduce a voluntaryretirementscheme
(VRS) in 2000.
2001 - Madras Fertilizers Ltd has signed Memorandum of
Understandingwith the Departmentof Fertilizers, Government
of India for the year 2001-02.
2002 - Governmentof India approves for the financial
restructuring of Madras Fertilizers.
-Mr. Pawan KumarWadhwaand Mr. Suresh Chandra are
ceased to be the Directors and Mr. M R Sharma is being
appointed as the Directors on the Board of the company.
-Mr SukumarN Oommen appointed as the Chairman and MD
of the company.
2003
-National Iranian Oil Companygrants No Objection Certificate
to the governmentfor the selloff of Madras Fertilizers Ltd.
-Mr. VijaySingh and Mr. S M Mortazavi are ceased to be the
Directors of the company.Mr. Suman Swarup and Mr.
Malmood vaezi are appointed as Directors.

24. 23
-Financial restructuringpackage as follows:
a. Waiverof outstandinginterestamountingto Rs 706.5 million
as on March 31, 2003 on the outstandingloan of Rs 2199.7
million,drawn from GOI by MFL. b. Moratorium on principle
repaymentof the GOI loan of Rs 2199.7 million drawn by MFL
up to March 31, 2004.c. Waiverof penal interest for past
defaults in repaymentof principle and interest of GOI loan up
to March 31, 2003.
-The stock leaps 9.8% on account of financial restructuring.
-MFL gets Union governmentpermission for second round of
Financial Assistanceand Capital Restructuring.
-As part of restructuring programme the governmentapproves
for the reduction in interestfrom 15.10% to 7% on outstanding
GOI loan.
-Shri P S Prasad, Nominee Director(ICICI Bank)has been
appointed in place of Shri P M Kale, Nominee Director(ICICI
Bank).
-ING Vysya Life signed an agreementwith public sector
Madras Fertilizer Ltd (MFL) to sell its life insurance policies to
farmers, using the fertilizer company's dealernetworkin rural
sector
2005
- Madras Fertilizers Ltd enters into one-time settlement
agreementwith ICICI Bank, which will benefitthe MFL to the
tune of Rs 18.95 crore as of March 31, 2005.
2007 -Companyhas created Email ID of the Grievance
Redressal Division/Compliance Officer for this purpose -

25. 24
cs@madrasfert.com and also a website called
www.madrasfert.nic.in.
2008
-Madras Fertilizers Ltd has informed that "The Governmentof
India vide its letter No. 84/2/2007-HR-I dated July 21, 2008 has
appointed Shri S Muralidharan,as Chairman & Managing
Director in place of Shri G S Mangat,CMD.

26. 25
MARKETING STRATEGY
SWOT ANALYSIS
Strength
i. Technical competence ofthe organization
ii. Fully committed and motivated employees
iii. High inter-group and inter departmentco-ordination
iv. Good knowledge of South India market with respect
to agriculture Inputs
Weakness
i. Stringent Governmentpolicies
ii. Availabilityof limited range of products
iii. Strict adherence to the policies and procedures
iv. Free market economywhere publicsector has to
compete with private sector
Opportunity
i. Agricultural to be more open market oriented
ii. Easieraccess to world’s best technology
iii. Higher focus on Productivity and efficiency in
agriculture
iv. Strategic alliance for marketing

27. 26
Threats
i. Increased competition
ii. Overrun carrying cost
iii. Switching over from seller market to buyer market
iv. Delayin Government’s efforts to bail out loss making
v. PublicSector Undertaking
STP
SEGMENTATION: - The Company is engaged in providing and
selling its products in single economicenvironmentin India i.e.,
there is a single geographical segment.
The field marketingactivities are coordinated througha network
of Regional Offices located in 11 strategic centers of the 5
Southern States, viz., Andhra Pradesh, Karnataka, Tamilnadu,
Kerala and Pondicherry. MFL has a team of well experienced,
dedicated and professionally qualified marketing officers, who
market the VIJAY products thru well networked Dealers,
numberingaround 6500,Co-operative MarketingFederations of
respective States, Agro Industries Corporations and other
Institutions. Thus, MFL has well spread retail outlets
encompassingprivate,co-operativesand Agro Kendras forwider
reach and better market penetration of its products.
TARGETING:-Farmers are the targeting customerof the
company. MFL provides an ideal platform for an expanded
presence in complexfertilizers market.
POSITIONING:-Safetyis a way of life at MFL. The Company
has a unique distinction of achievinga plantSafety Record of
3190 days. MFL has a creditable record of success in
production,energy conservation,and promotional activities and
as a responsible corporate citizen.

28. 27
BCG MATRIX
This company lies on question marks because
businessoperatingin a high marketgrowth,but
having a low market share. They are a starting
pointfor most businesses.Question marks have
a potential to gain market share and become
stars, and eventually cash cows when market growth slows. If
companydo not succeed in becominga market leader,then after
perhaps years of cash consumption, they will degenerate into
dogs when market growth declines. Question marks must be
analyzed carefullyin order to determine whethertheyare worth
the investment required to grow market share.

29. 28
PLC
The company is on the starting stage of decline stage, at this
point, there is a downturn in the market. For example, more
innovative products are introduced or consumer tastes have
changed.There is intense price cutting,and manymore products
are withdrawn from the market. Profits can be improved by
reducing marketing spending and cost cutting.
PROMOTIONAL STRATEGY
Recastingof roster effective July 02, 1997 was completed during
April 2013.27 SC employees benefiteddue to recastingof roster,
by way of promotion / pre-ponement of promotions. Recasting of
post based rosters is beingdone by a consultant from Integrated
Trainingand PolicyResearch, New Delhi for Direct Recruitment
and Promotions carried outby the Company.During2010-11,64
promotional programs were conducted benefiting 22,492
farmers.

30. 29
BUSINESS FINANCE
GROSS PROFIT AND NET PROFIT MARGIN
DIRECT AND INDIRECT COSTS
FIXED ASSETS ADDED DURING THE YEAR
The Companyis maintainingproperrecords showingparticulars
includingquantitative details and situation offixed assets,other
than location details in respect of furniture and fixtures and
2014 2013 2012 2011 2010
Direct Cost 2236.26 2093.46 1892.4 1410.66 1166.84
Indirect Cost 263.91 237.08 215.66 177.94 158
Operating Cost 4514.17 4343.54 4120.06 3599.6 3334.84
2013-14 2012-13 2011-12 2010-11
% Change 3.92% 5.42% 14.45% 7.93%
2014 2013 2012 2011 2010
Purchase of Fixed Assets 7.91 31.08 38.57 11.57 2.29
2014 2013 2012 2011 2010
Gross Profit 1220.88 967.55 1063.53 776.86 622.48
Net Profit 105.8 24.44 111.99 169.86 6.88
Margin 1115.08 943.11 951.54 607 615.6
2014 2013 2012 2011 2010
Total Revenue 2605.97 2355.11 2218.74 1,622.83 1,302.84
COGS 1385.09 1387.56 1155.21 845.97 680.36
Gross Profit 1220.88 967.55 1063.53 776.86 622.48
In Cr.
In Cr.
In Cr.

31. 30
office equipments. There are adequate internal control
procedures commensurate with the size of the Company and
nature of its businesswith regard to purchase of inventories and
fixed assets and for the sale of goods and services.
WORKING CAPITAL
In 2014,2013,2011,2010 (accept2012)is negative working
capital. Negative working capital is when a company's current
liabilities exceed its current assets. This means that the
liabilities that need to pay within one year exceed the current
assets that are converted to cash over the same period.
DEBT EQUITY RATIO
A high debt/equity ratio generally means that a company has
been aggressivein financingits growth with debt.This can result
in volatile earnings as a resultofthe additional interestexpense.
2014 2013 2012 2011 2010
Current Assets 1507.09 654.43 538.86 367.12 210.69
Current Liabilities 1694.5 938.6 338.43 406.05 369.07
Working Capital -187.41 -284.17 200.43 -38.93 -158.38
2014 2013 2012 2011 2010
Share Capital 162.14 162.14 162.14 162.14 162.14
Reserve & Surplus -368.33 -468.37 -492.81 -604.8 12.39
Total Equity -206.19 -306.23 -330.67 -442.66 174.53
Long Term Borrowings 229.22 261.91 773.54 651.48 366.57
Other long term liabilities 0 0 5.09 5.44 542.62
Long Term Provisions 18.03 19.53 23.19 17.1 0
Total Debt 247.25 281.44 801.82 674.02 909.19
Debt/Equity Ratio -1.19914 -0.91905 -2.42483 -1.52266 5.209362

32. 31
Shr i C M T B r i tto
Di rector (Tec hni c al )
Director
(Technical)
HUMAN RESOURCE
MANAGEMENT
Overview– Recruitment– TrainingAnd Development–
Performance Appraisal–Designation/ Grade System– Man
Power– Pay Scale–Personnel Department& Its Functions–
Office Time–Personal Protective Equipment
OVERVIEW
This department is mainly responsible for the recruitment,
selection, training, development, promotion, etc, all that is
related to the employees. The department maintains all the
details regarding its employees for their reference in future
and as and whenever required.
ORGANIZATION STRUCTURE HIERARCHY
THE HUMAN RESOURCE as on 31.10.2014
Supervisors 504
Non-Supervisors 200
Total Manpower 704
Dr. I. VIJAYAKUMAR, IRS
Chairman & Managing
Director
Shri K M Gupta,
IES
Economic Advisor
Shri D
Sundarasekaran
General Manager -
Plant
Shri H
Gunasekaran
General Manager -
P&A
Shri Rajiv Yadav, IAS
Additional Secretary
and Financial Advisor
Shri V Muralidharan
General Manager-
F&A & Company Secretary

33. 32
JOB DESCRIPTION
1. Post Name: Medical Assistant
No. of Vacancy:01 Posts.
Pay Scale:Rs.9830/-
Eligibility Criteria:
Educational Qualification: Passed SeniorSecondary(10 + 2) or
equivalentexamination from a recognized Board.B.Sc.,
(Nursing). Must have their names registered in the State
Nursing Council.Must have 3 years’ experience as Medical
Assistant/ Nursing Assistantin a reputed Hospital.(Fresh
Candidate will also be considered as Trainee).
2. Post Name: General Manager(Plant)
No. of Vacancy:01 Posts.
Pay Scale:Rs.51300-3%-73000/-
Eligibility Criteria:
Educational Qualification: Degree in Engineering(Chemical
/Petrochemical/Mechanical/Electrical/EEE/Production/
Instrumentation).
Experience: Minimum 20 Years of Post-Qualification experience
in Chemical Process Industries with 2 years in the immediate
lower position.
Nationality:Indian
Age Limit: 30 Years
Application Fee : DemandDraft drawn in favor of “Madras
Fertilizers Ltd.,” payable at Chennai,for Rs.500/-in the case of
Sl. Nos. 1 & 2 and Rs.250/-for Sl. Nos.3, 4, 5 & 6.

34. 33
How to Apply : Applicants are advised to download the
application format and send the same duly filled so as to reach
the General Manager(Personnel & Administration),Madras
Fertilizers Limited, Manali,Chennai 600 068 on or before 27-
10-2014.
Important Dates to Remember:
Last Date to Apply:27/10/2014.
Important Links:
Detail Advertisement & Application Form Link:
http://www.madrasfert.nic.in/pdf/mflrecruit.pdf
Register for Gov. Job Alert:Click Here
RECRUITMENT
The recruitment process started with Identification of
vacancies to be filled up it is basically concerned with the
identification of sources from where the personnel can be
employed and motivating them to offer for the employment.
As MFL is a GOI undertaking organization, it gives more
importance in selection process of employees. By conducting
Technical and non-technical entrance exams and follow up ofthe
next stages of interview itself selection process carried out in
MFL. Recommendationsofjob are completelyavoided and pure
performance, knowledge and experience based employees are
appointed here in MFL.
It is process of searching for prospective employees,
stimulation and encouraging them to apply for job in an
organization.

35. 34
Recruitment and Training (2013-14)
TRAINING NEEDS
Training in MFL is provided for trainers of both technical and
non-technical candidates. Efficient training is given to the
trainers,so as to filter qualityemployees from them.Promotional
based top management training also given to the executives of
MFL. Here new employees for executives are rarely recruited,
normally promotion based vacancy filling is followed.
PERFORMANCE APPRAISAL
While on the job, performance reviews of every employee are
done every quarter. The reviews are done with a view to helping
the individual excel at his/herworkplace.In case there are any
training requirements,these are noted and acted upon in the
coming quarter. Also, the goals and objectives for the
employee are revised for the performance appraisal
mechanism is carried out at MFL for promotional purpose.
These are done so as to motivate the employee and improve
his performance level.
a) Establishmentof performance standards with the
employees.
b) The goals are set mutuallyas per measurable
standards.
c) The actual performance is hence measured.

36. 35
d) After measuringof the actual performance,the same is
compared with the standards set.
e) The appraisal is then discussed with the employee.
f) And finally, if need arises corrective action is initiated.
For this purpose the corrective action is actually
identified through brainstorming exercise initiated by
the department heads .It is then measured as a tool
to evaluate the past performances of the employees.

37. 36
FUTURE PLANS
Switching over to Liquefied Natural Gas (LNG) feed stock from
naphtha MFL Plants are designed to use R-LNG as part of
Revamping Project and hence switchover to R-LNG can be done
with minimum capital expenditure in a short time. The quantity
of LNG required for replacement of existing fuel is around 1.2
MMSCM per day.
The fertilizers complex of MFL is presently using Naphtha for
the process and fuel requirements of Ammonia Plant, FO in
boilers, HSD in Captive Power Plants (Gas Turbine Generators
and Diesel Genets) and LPG for auxiliary firing in the Boilers,
heaters and flares.
Detailed in-house assessment of the changes required for the
conversion has been carried out. Information from external
sources,engineeringconsultants and supplierofboilers has been
gathered and analyzed.

38. 37
ACHIEVEMENTS
 MFL has a creditable record of success in production,
energy conservation,and promotional activities and as a
responsiblecorporate citizen.
 MFL bagged the prestigious award from Fertilizer
Association of India for “Outstanding performance in
Production of PhosphateFertilizers”during 1991-92.
 Received the Best Farmers Service Award for 1992
instituted by Gandhi Gram Rural Institute, Tamil Nadu.
 Jawaharlal Nehru Memorial National Award for
“Effective Implementation of Pollution Control”1992-93
and 1993-94.
 Video Film on the use of Bio-fertilizers was judged as the
best entry by the Fertilizer Association ofIndia in 1993.
In 1994-95 also anotherfilm on Bio-fertilizers was judged
as the best entry for the second time.
 Video Films on Paddyand Balanced
Fertilizer Application were judged as the best entries for
the year 1988 and 1994.A certificate of merit was
awarded for the video film on Banana in 1991.
 MFL was conferred with Best Tax Payer Award for the
year 1995-96.
 MFL received Official Language implementation Award
for the year 2003-04.

39. 38
CONCLUSION
Thus the organisational structure process, functions and
managementactivities ofM/S Madras Fertilizers Limited (MFL)
are discussed in this report. The Human Resource and Welfare
Department has provided needed information and statistical
data about the organisation’s several departments and
functional areas.From the pastyears statistics ofMFL,it is been
experiencinggrowth in production and managementareas ofthe
organisation. In MFL the employees are well treated by
providing hygienic food for low cost and low cost transport
facilities. The environment of the organisation is planted and
maintained by recycled water. Smoke is liberated at a specific
heightso that it cannotaffect the purity of the environment.The
bio-hazardous waste is disposed in such a way to ensure the
safety. The technical employees of MFL are provided medical
facilities and safety equipments inside the production process.
The managementsecures confidential and theirbusiness secrets
by not allowing the outsiders to gain access to the Management
Information System.
MFL concentrates on satisfying the need of the farmers and
providing quality fertilizers by research on chemical and bio-
fertilizers. Several tests are made with the MFL products before
marketingto the customers.VIJAY brand name has a vastreach
amongthe farmers and still the brand captures the market with
its highly competition global market.
Still MFL sustain in the market with high production of
fertilizers which has foreign investments and public shares.The
Governmentof India has the control over MFL as it captures the
majorityshares.MFL Exports their products to several places in
India and other countries through shipping and other transport
facilities available.

40. 39
BIBLIOGRAPHY
 Annual Reportof 2013-14,2012-13,2011-12,2010-11,
2009-10
 http://economictimes.indiatimes.com/madras-fertilizers
 http://money.rediff.com/companies/Madras-Fertilizers
 http://money.livemint.com/
 http://madrasfert.nic.in/
 http://fert.nic.in/page/madras-fertilizers-limited-mfl
 http://www.divest.nic.in/pimmfl1.asp
 http://www.sarkarinaukrisarch.in/mfl-recruitment/