Summer internship Project Mangalore Chemicals and Fertilizers ltd Panambur Mangalore

Submitted by Aditya Bhat SA1101 Submitted to Prof Sivadas Nambiar

WEEKLY TIME TABLE

WEEK 1 Week
st

DATE 04-06-2012 to 09-06-2012

PARTICULARS
Confirmation of internship in Mangalore chemicals &fertilizer, panambur and observation of the company

11-06-2012 to 16-06-2102 2nd Week 18-06-2012 to 23-06-2012 3rd Week 25-06-2012 to 30-06-2012 4th Week 02-07-2012 to 07-07-2012 5th Week 09-07-2012 to 14-07-2012 6th Week 16-07-2012 to 21-07-2012 7th Week 23-07-2012 to 28-07-2012 8th Week

Plant and department visits

Interaction manager

with

the

training

Personal observation of the finance department Personal observation of the human resource department Personal observation of the

production unit Obtaining primary data and other information from the company Clarification of project and visit to marketing department in bangalore

EXECUTIVE SUMMARY This report is based on the study which was conducted at MCF Mangalore chemical and fertilizer in Mangalore In this report it contains the information of 4 major departments essential for the working and continued existence of the company for the smooth functioning of these departments and very essential for the success of the company . It is a 24hr process for producing fertilizer and the equipments which are used are advanced so that they are of high quality. Since the production is continuous the marketing team does not have a specific amount of fertilizers to sell, as and when the product is finished it has to be sold to farmers The marketing team uses the distribution channel for selling the product by using the information on climate condition and since this is subsidised industry advertising is banned which makes the job even more complicated The financial position of MCF, since its inception has not been very stable but they are striving hard to achieve financial prospective in the years to come. The company believes in social service and assistance to the people in need. They also conducted educational programs for farmers to educate them on the right type of fertilizer for the right type of soil and crop. MCF has a unique way of managing finance which is done through a inbuilt software SAP which is built in all the systems. This report contains all the workings of the four departments and my observations of the departments.MCF strives for quality and farmer prosperity always and this has made MCF an important player in the fertilizer and chemical industry.

Industry Profile The fertilizer industry presents one of the most energy intensive sectors within the Indian economy and is therefore of particular interest in the context of both local and global environmental discussions. Increases in productivity through the adoption of more efficient and cleaner technologies in the manufacturing sector will be most effective in merging economic, environmental, and social development objectives. A historical examination of productivity growth in Indias industries embedded into a broader analysis of structural composition and policy changes will help identify potential future development strategies that lead towards a more sustainable development path. Man's use of fertilizer dates back to the Neolithic Era but chemical fertilizer is, by historical standards, quite new. They were developed to replenish soils depleted by harvesting and primarily consist of three types, called NPK fertilizers (N for nitrogen, P for phosphorus and K for potassium). Origin The first chemical fertilizer was phosphorus-based and was invented in the early 19th century. It was composed of superphosphate made by treating bones with sulphuric acid. Early Formulation and Development The bone material in phosphorous (P) fertilizer was quickly replaced with phosphate rock and coprolites (fossilized animal focal matter). Potassium (K) fertilizers were first developed in Germany in 1861 and in North America between 1914 and 1919. Use of K fertilizers expanded when potassium deposits were discovered in New Mexico in 1931 and again in the Saskatchewan territory in 1958. The first N fertilizer, Calcium Nitrate was formulated in 1903. Use and Advancement The use of NPK fertilizers (particularly nitrogen and phosphorus) had been steadily rising since 1945. The federally owned Tennessee Valley Authority (TVA) was formed in 1933 and was given the responsibility of improving the manufacturing and use of fertilizer nationwide. Today, over 75 percent of the chemical fertilizers manufactured in the United States are made using processes developed by the TVA. Pricing Policy of Government To encourage balanced fertilizer use and make fertilizers available to farmers at affordable prices , the Central Government determines and notifies the selling price of urea as well as decontrolled P & K fertilizers such as Di-ammonium Phosphate (DAP), Muriate of Potash(MOP), Single Super Phosphate(SSP) and complexes. The current selling prices of

Urea and P & K fertilizers are less than the cost of production, the difference between selling price and the cost of production as assessed by the Government is borne as subsidy. The subsidy on Urea is Rs. 22,661.89 per tonne, on complex fertilizer 20:20:00:13 is Rs.5,640.20 per tonne and on DAP is Rs. 15,183.24 per tonne, the total subsidy accounted for the year ended 2010-11 was Rs.1,614 Cr. The New Pricing Scheme (NPS) for Urea announced by the Government of India in March 2007 expired by 31-03-2010. The policy specifies that all Naphtha/Furnace Oil/LSHS based units should convert to gas by 31-03-2010. Despite readiness of the Company for, nonavailability of gas within this deadline is a concern. The policy on Phosphatic fertilizers has been recently announced based on the recommendation of the Tariff Commission effective from 01-04-2008 with some deviations. The concession for the indigenous Di-ammonium Phosphate (DAP) is restricted at the same level of imported DAP, as against higher rate of concession given in the past. Under the new policy, concession for Complex fertilizers will be unit based which amounts to rolling back to unit based pricing policy. Global fertilizer prices Urea prices have been hardening from US$ 229.3 in June 2010 and US$ 327.8 per tonne in March 2011 to US$ 485.90 per tonne in June 2011, but eased marginally there from to US$ 474.8 in July 2011. The prices were 35% higher in April 2011, but the rise surged to 73% higher in May 2011 and ascended further to 112% higher in June 2011, on y-o-y basis, before decelerating to 90% spike in July 2011. Table showing global Urea, DAP & MOP prices in US $ per tonne

DAP prices sizzled from US$ 277.8 per tonne in June 2010 to US$ 650.6 by July 2011. DAP prices were 32% higher in April and May 2011, but the growth increased to 40% higher in June 2011 and 41% higher in July 2011, on y-o-y basis. Likewise, MOP prices flared up from US$ 312.50 in March 2011 to US$ 461.3 per tonne in July 2011. MOP prices were 32% higher in April 2011, 33% higher in May 2011, 37% higher in June 2011 and 44% higher in July 2011, on y-o-y basis.

Indian Scenario
The Indian Fertilizer Industry is one of the allied sectors of the agricultural sphere. India has emerged as the third largest producer of nitrogenous fertilizers. The adoption of back to back Five Year plans has paved the way for self sufficiency in the production of food grains. In fact production has gone up to an extent that there is scope for the export of food grains. This surplus has been facilitated by the use of chemical fertilizers. The large scale use of chemical fertilizers has been instrumental in bringing about the green revolution in India. The fertilizer industry in India began its journey way back in 1906. During this period the first Single Super Phosphate (SSP) factory was established in Ranipet in Chennai. It had a capacity of producing 6000 MT annually. In the pre and post independence era a couple of large scale fertilizer units were established namely the Fertilizer Corporation of India in Sindri, Bihar and the Fertilizer & Chemicals Travancore of India Ltd in Cochin, Kerala. The fertilizer industry is one of the most energy intensive sectors within Indian economy and is therefore of particular interest in the context of both local and global environment discussions. Increase in productivity of this good with the use of cleaner and more efficient technologies in the manufacturing sector will be most effective immerging economic, environment and social development objectives. Being the backbone of agricultural productivity, the role of fertilizers will always remain crucial in developing countries like India, with increase in demand for food the demand for fertilizer supply has experienced an upward shift. There is little doubt that improved productivity can only be attained through better management of inputs, including fertilizers. The Indian Government has devised policies conducive to the manufacture and consumption of fertilizers. Numerous committees have been formed by the Indian government to formulate and determine fertilizer policies. The dramatic development of the fertilizer industry and the rise in its production capacity has largely been attributed to the favourable policies. This has

resulted in large scale investments in all three sectors viz. public, private and co-operative. At present there are 57 large scale fertilizer units. These manufacture an extensive range of phosphatic, nitrogenous and complex fertilizers. The Department of Fertilizers is responsible for the planning, promotion and development of the Fertilizer industry. It also takes into account the import and distribution of fertilizers and also the financial aspect. There are four main divisions of the department. These include Fertilizer Imports, Movement and Distribution, Finance and Accounts, Fertilizers Projects and Planning and Administration and Vigilance. It makes an assessment of the individual requirements of the states and union territories and then lays out an elaborate supply plan. Though the soil in India is rich in silt, it lacks chief plant nutrients like potassium, nitrogen and phosphate. The increase in the production of fertilizers and its consumption acts as a major contributor to overall agricultural development. Agriculture accounts for about one fifth of Indian GDP and provides livelihood to nearly two third of the population. Hence, the government has always been focusing on self-reliance in food grain production and this has resulted in substantial increase in agriculture production and yield. Chemical fertilizers have played a vital role in this regard. The government has consistently been pursuing policies to increase the availability and consumption of fertilizers in the country. Fertilizers production in India is nutrient wise. The three main nutrients- Phosphate, Potash and Nitrogen (Urea) are used for fertilizers creation. Urea, ammonium sulphate, calcium ammonium nitrate (CAN) and ammonium chloride are the nitrogenous fertilizers produced in India and single superphosphate (SSP) is the only phosphatic fertilizer that is produced in India. Additionally, nutrients are combined to produce several complex fertilizers. Production of complex fertilizers include DAP (Diammonium Phosphate), several grades of nitro phosphates and NPK complexes. Urea, DAP, SSP and Muriate of Potash (MOP) are the most commonly used fertilizers. Among these, urea and DAP are the main fertilizers that are produced indigenously. Due to the lack of viable resources or reserves of potash in India, the entire feedstock requirement for potassic fertilizers are imported. Thus, Potash based fertilizer demand is entirely met by imports, for Phosphate fertilizer raw materials are imported and lastly Natural Gas and LNG is being imported for Urea fertilizer production. In India, technical problems, power shortages and stringent Government policies lead to

problems in production expansion and high import prices is a matter of concern especially for farmers. Fertilizer in the agricultural process is an important area of concern. An impetus to the growth of fertilizer industry in India was given by Green revolution in Sixties. Further a significant addition to the production was witnessed in seventies and eighties. The fertilizer industry has played a pivotal role in achieving self-sufficiency in food grains as well as in rapid and sustained agricultural growth. India is third largest producer and consumer in the world after China and the United States. The growth of Indian fertilizer has been largely determined by the policies pursued by the government which mainly confine to controls on the pricing, distribution and movement of fertilizers. However, fertilizer consumption also depends on various agriculture related factors such as soil quality, farming methods, cropping pattern, rainfall and irrigation patterns, different geographical aspects, calamities, availability of technology and information, varieties and quality of seeds as well as access to capital and credit and other inputs. The average annual growth of fertilizer consumption achieved at the end of the Tenth Plan was about 4%. During the start of the Tenth Plan Period the country was drought affected, and therefore, its consumption of fertilizers fell by about 7.30% over the previous year. However, the growth in consumption started picking up during the following years. In fact, the increase in consumption was higher than the growth in production and the balance was met with imports. Indian fertilizer sector has been caught unawares of spike in global fertilizer prices on the one hand, and factoring in lower prices in the nutrient based subsidy scheme. After hard posturing for couple of quarters, finally the Indian fertilizer industry inked deals on import of Muriate of Potash (MOP) in US$ 490 500 per tonne levels, on an average. India is dependent on imports for its entire MOP requirements as there are no known potash resources in the country.

Table showing retail prices of fertilizers

Name of the Fertilizer Maximum retail price (Rs. Per tonne ) 2010-11 Urea DAP Complex Fertilizer 20:20:00:13 Ammonium Bicarbonate 5,130 9,802 6,974 10,161

Name of the Concrete mixture SNF liquid SNF powder 18,998 49,000

Because of this type of fertilizer pricing policy and control on the raw material the production of the fertilizer is shrunken. The pricing policy of the Government will affect the profitability of the company. According to the employees of the company the government pricing policy should be removed, so that the company can fix its own sales price for its products. . Table showing Fertilizer Subsidy Provided in India Year 2008-09 2009-10 2010-11 2011-12 (B.E.) Figures in Rs crores Source: Ministry of Chemicals and Fertilizers The budgeted fertilizer subsidy has been coming down from Rs 99494.71 crore in FY 200809 to Rs 64032.29 crore in FY 2009-10, which marginally increased to Rs 65836.68 crore in FY 2010-11. For FY 2011-12, the budgeted fertilizer subsidy has been scaled down further to Rs 53589.87 crore. P&K fertilizers 65554.79 39452.06 41500 29706.87 Urea 33939.92 24580.23 24336.68 23883 Total for all fertilizers 99494.71 64032.29 65836.68 53589.87

Company Profile History of the Company

Mangalore Chemicals & Fertilizers (MCF) is the only fertilizer in the state of Karnataka. It is an ISO 14001 and OHSAS certified company. The Company is a part of the UB Group with Group shareholding of 30%. Dr. Vijay Mallya is Chairman of the Board of Directors. The operations are managed by a team of highly dedicated and experienced professionals. Mangalore Chemicals and Fertilizers Limited (MCF), with a turnover of over Rs. 2523Crore (FY 2010-2011). The factory is strategically located at Panambur, 9 km north of Mangalore City, on the banks of the Gurpur River, in front of the New Mangalore Port. The plant is well connected, both by rail and road. The West Coast National Highway (NH-l7) from Kochi to Mumbai separates MCF from the New Mangalore Port. The New Mangalore Port is an allweather port capable of handling ships up to 30 feet draft. Naphtha, Fuel Oil, Ammonia and Phosphoric Acid - the main raw material are obtained through the port. The design and engineering of the Ammonia/Urea plants was done by Humphreys & Glasgow Limited, London, a leading international firm in the fertilizer field and their associates, Humphreys & Glasgow Consultants Pvt. Ltd., Bombay. (The firm is now merged with Jacobs Engineering, USA). The Phosphoric plant is designed and engineered by Toyo Engineering Corporation, Japan. PDIL and Furnace Fabrica the Indian firms were involved in the construction of ABC and SAP respectively. Manufacturing both nitrogenous and phosphoric fertilizers, MCF has an annual manufacturing capacity of more than 2 million metric tons of ammonia an 3 million metric tons of urea. The company sells its products (including specialty fertilizers) under the Mangala brand. UB Group owns about 30% of the company with smaller stakes held by the Karnataka government and various financial institutions. VISION Turnover of Rs.3000 cores by the year 2012

MISSION To create value for the farmers, consumers and other stakeholders by providing integrated agri solutions and leveraging our competencies to develop strategic business VALUE (1) integrity (2) customer focus (3) innovation (4) team work (5) agility (6) excellence

The plant management and consultancy services offered by MCFIL include:

Erection & Commissioning Operation & Maintenance including turnaround activities Condition Monitoring Civil Engineering Services Technical Training using Simulators and on the job training Safety Practices & Training Environment and Quality Control Services Human Resources- HR Training & Placement Services.

Logistics Handling, Warehousing, Transportation and C & F Services for hazardous chemicals and bulk cargo. INFRASTRUCTURAL FACILITIES Product Handling There are in all, four streams for Urea and three streams for Ammonia for bagging and dispatch. Urea

Di Ammonium Phosphate (DAP)

Ammonia (an intermediate product for urea production)

ChemCF NL and ChemCF NP

Sulphuric Acid and Utilies

Auxiliary Boiler The Ammonia and Urea plants are supplemented with an auxiliary boiler of 60MT /hr steam capacity at 75 kg/cm2 pressure and 480oC. Captive Power Plant (CPP)

To overcome the frequent interruptions in power supply, resulting in equipment failure and wastage of energy during shutdown and start ups of the plants, a Captive Power Plant with eight Wartsila Diesel Engines was commissioned.

Imported Ammonia & Phosphoric Acid Terminal (IAT)

The terminal facilitates direct unloading from a ship. Ammonia is stored in a 10,000 MT atmospheric pressure storage tank. Phosphoric Acid is unloaded into two tanks of 8,000 MT each capacity. Imported fertilizer handling facility

MCFL has installed Imported Fertilizer handling facility. The fertilizer imported through ships will be brought from the port by trucks/tippers and discharged inside the Bulk Storage

Silo or to a receiving Hopper outside the silo for bagging and dispatch. The Silo capacity is 20,000 MT. Water Reservoir

The entire complex requires 2 Million Gallons (MG) per day of clarified water which is supplied by the Mangalore City Corporation from the Netravathi River. In order to overcome the problem of water shortages, especially during summer months, two reservoirs of 6 MG and 18 MG capacity were constructed within the factory premises. Bulk Storage (Silo): There are two separate silos to store 30,000 MT and 10,000 MT of Urea and Phosphatic fertilizers respectively.

Ownership Pattern Table showing ownership Pattern as at 2010-11

Category No. of Shareholders UB Group- Promoter Central Government/State Government Financial Institutions/Banks Mutual Funds Insurance Companies Bodies Corporate Foreign Institutional Investors Public 85482 52572431 44.36 315 6 6 1226 5 402756 142875 105140 19342309 1463000 0.34 0.12 0.09 16.32 1.23 3 12 No. of Shares 36076775 3759884 % to Total Capital 30.44 3.17

Others(Clearing Members, Foreign Nationals, HUfs NRIs, Societies,& Trusts) Total 118515150 100.00 1903 4649980 3.93

Some of the major fertilizers producers are : There are some very tough competitors for MCF Ltd in the field of fertilizer industry. for example the major competitors for MCF are Rashtriya Chemicals & Fertilizers Ltd, Coromandel Fertilizers Limited, Chambal Fertilizers and Chemicals Limited, Gujarat Narmada Valley Fertilizer(GNFC), Deepak Fertilizer and Petrochemicals Corporation Limited, Gujarat State Fertilizers and Chemicals Limited, Nagarjuna Fertilizers and Chemicals Limited, Zuari Industries Limited.

Area of Operation
Mangalore Chemicals and Fertilizers Limited (MCF), with a turnover of over Rs. 2,520 Cr (FY 2010-2011), is the only manufacturer of chemical fertilizers in the state of Karnataka. The factory is strategically located at Panambur, 9 km north of Mangalore City, on the banks of the Gurpur River, in front of the New Mangalore Port. The plant is well connected, both by rail and road. The West Coast National Highway (NH-l7) from Kochi to Mumbai separates MCF from the New Mangalore Port. The New Mangalore Port is an all-weather port capable of handling ships up to 30 feet draft. Naphtha, Fuel Oil, Ammonia and Phosphoric Acid - the main raw material are obtained through the port. The design and engineering of the Ammonia/Urea plants was done by Humphreys & Glasgow Limited, London, a leading international firm in the fertilizer field and their associates, Humphreys & Glasgow Consultants Pvt. Ltd., Bombay. (The firm is now merged with Jacobs Engineering, USA). The Phosphatic plant is designed and engineered by Toyo Engineering Corporation, Japan. PDIL and Furnace Fabrica the Indian firms were involved in the construction of ABC and SAP respectively. Manufacturing both nitrogenous and phosphatic fertilizers, MCF has an annual manufacturing capacity of more than 2 million metric tons of ammonia and 3 million metric tons of urea. The Company sells its products under the Mangala brand. UB Group owns about 30% of the company with smaller stakes held by the Karnataka government and various financial institutions.

Nature of Business Carried out: Mangalore Chemicals & Fertilizers (MCF) is a big part of India's growing agricultural industry. It manufactures the chemical fertilizers such as Mangala Urea, Mangala DAP, Ammonium Bi Carbonate, Mangala 20:20:20:13, Sulphuric Acid etc and also imports some trading products from outside and being sold here in India. And also from August 2010, it produces SNF liquid and powder used in the construction, chemical industry for manufacture of super plasticizer.

Product Profile of MCF Ltd. The main products produced by Mangalore Chemicals and Fertilizers Limited here are as follows:

Mangala Urea

it is a synthetic organic compound containing 46% nitrogen in amide form which is available in the form of white solid prills free flowing for easy application. Urea is packed in moisture proof high density poly ethylene bag which is 50kg. It is the cheapest nitrogenous fertilizer and being less acidified, it is suitable for P soils.

Mangala DAP

DAP contains the second most important primary nutrient element, phosphorous besides nitrogen,which is available in free flow granular form for differentiation with other low analysis compound fertilizers, DAP granules are coloured with black. Granules are stronger, harder and of uniform size. it is packed in 50kg HDPE bag. Ammonium Bi Carbonate-

It is a food product with 99.8% purity on dry weight basis. It is white crystalline product. Being very hygroscopic, it is packed in a air tight, laminated HDPE bags of 25kgs. It is used as ingredient for fire extinguishers, dyes and pigments, degreasing of textiles, cooling baths, pharmaceutical industry etc

Mangala 20:20:00:13

It contains 20% Nitrogen & 20% P2O5. It also contains 13 % Sulphur, a Major Secondary plant nutrient. Granules are uniform and light grey in colour and it is packed in a 50kg HDPE bag.

Sulphuric acid

It is colorless, nonflammable liquid.Sulphuric acid (H2SO4) monohydrate is very hygroscopic. Used as an intermediate for manufacturing of phosphatic fertilizer. It is Transport by road tank truck. ChemCF NL - Sulphonated Naphthalene Formaldehyde Liquid- ChemCF NL is an aqueous solution of Sulphonated Naphthalene Formaldehyde, Sodium salt polymer. It is an excellent dispersing agent. It is a powerful water reducing element in Concrete Admixtures. Engineered & designed to offer wider tolerances in formations of admixture manufacturing. Compatible with most of the additives used in admixture formulations which helps in producing versatile applications. Supplied in Bulk Tankers of 10 t, 16 t & 20 t capacity. It can also be supplied in customized pack size in HDPE barrels or jerry cans. ChemCF NP

Sulphonated Naphthalene Formaldehyde Powder- ChemCF NP is a Sulphonated Naphthalene Formaldehyde (SNF) poly - Condensate product. It is a powerful water reducing agent used for concrete and cement grouts. This is an excellent dispersing agent. Designed to offer wider tolerances in formulations for concrete admixture manufacturers. It is compatible with most of the additives used in admixture formulations. It helps in producing concrete with various unique properties. Packing Supplied in customized pack sizes of 25 kg and 40 kg HDPE bags. Some other products are as follows Mangala MOP-

Contains 60% Potash (K). Till now the most widely used K fertilizer available in white and reddish crystalline form which is packed in 50 Kg HDPE Bag. Speciality fertilizer - Speciality fertilizers are high analysis totally water soluble fertilizers. These are available in mono, double and multi nutrient combinations. They are available in liquid and crystalline forms and can be applied to plants through soil application (broadcasting), fertigation or foliar application to maximize fertilizer use efficiency and crop productivity, minimize production cost and to improve quality of crop and its produce Mangala Bio20 & Mangala 3X is a highly concentrated emulsion containing macro and chelated micro elements suitable for foliar spray and fertigation. Mangala Calmax - Mangala Calmax is a fully water soluble fluid emulsion product containing high level of calcium and balanced range of micro nutrients. Mangala Sulphomex - Mangala Sulphomex is a clear solution containing water soluble sulphur and nitrogen. Fertigation Products - This comprehensive range of powder formulations is manufactured only from technical grade raw material and blended to exacting quality standards. These ranges of products may be used in all fertigation systems to provide a balanced nutrient programme containing NPK, magnesium and essential microelements.

The products are fully water soluble. Mangala 18-18-18+2Mgo+TE

18:18:18 has immediate beneficial effect on plant growth. Mangala 19-19-19

19:19:19 application stimulates with immediate effect plant growth and development.

Soil Conditioners - In the changing agriculture scenario, where the fertile and productive land area is shrinking due to unscientific and surfeit use of chemicals and fertilizers, there is an urgency to correct the soil condition to suit for modern agriculture.

Soil conditioners are termed as materials which when added to the soil help in improving or maintaining its physical conditions with improved physical and chemical health of soil that resultantly improve biological health. In the Integrated Nutrient Management approach, soil conditioners are integral part of the agronomic package.

Mangala Setright for Alkaline Soils - Mangala Setright for Alkaline Soils brings down the pH of alkaline soils and neutralizes the adverse p. Mangala Setright for Acidic Soils brings increases the pH of acidic soils and neutralizes the toxicities.It improves physical and chemical health of the soil.

Organic Products - The productivity of Indian soils has drastically come down. This has
necessitated increasing the productivity per unit area per unit time. This is becoming difficult as the soil health has deteriorated alarmingly. One of the main reasons of this is the ever reducing soil organic matter content. Improving the soil organic carbon content by application of suitable organic matter and manures is the only option. For realising the benefit of application of organic matter, the product should be well decomposed and of good quality. Moreover, if the product can offer more benefits to the farmer than a mere organic manurial value, it is then the farmer realised more value for money.

1. Product Range : Bulky Organic Manure Mangala Bio Gold

Mangala BioGold is a well decomposed organic matter fortified with neem cake, castor cake, pongamia cake and vermicompost. Mangala Gold

Mangala Gold is an organic product containing humic substances in the form of humic acid, fulvic acid and humin. Mangala Neem Organic Manur

Mangala Neem Organic Manure is a good quality neem product in the form of cake, pellets and powder. Mangala Organic Granules - Mangala Organic Granules is an organic product containing bio-available amino acids, carbohydrates, seaweed extracts, herbal extracts and nutrient elements with bentonite material as the carrier. Product range - concentrated organic nutrient product Mangala Megacal - Mangala Megacal (G) is a gluconate product produced by fermentation process and contains high levels of calcium, magnesium, boron with other nutrient elements and is available in granular as well as liquid forms.

Plant Protection Chemicals - As part of its diversification and growth strategy and in order to offer a wider range of agri inputs, the Company introduced Plant Protection (PP) Chemicals in July 2010. During the first 9 months of operations, the business registered an impressive turnover of Rs. 12 Cr. In the current financial year 2011-2012, in addition to the above arrangement, the Company also plans to launch its own brand of PP products for a few select molecules. Safety, Health, Environment and Pollution Control: The company has obtained Occupational Health and Safety Management System Certification OHSAS 18001 as a part of its commitment to continual improvement. Det Norske Veritas, the certification agency has recertified the companys OHSAS 18001 system, conforming to the latest 2007 version. As an ISO 14001 certified Company, the company installed waste water recovery facility to treat, recycle and reuse the entire quantity of sewage and process effluents, thereby achieving zero liquid effluent discharge. It has also implemented a rain water harvesting system and sewage treatment plant at its township. The treated sewage water is used for gardening purpose. Continuing with its green initiative, the company planted an additional 5000 saplings in the green belt area in its factory in Mangalore in the year 2010. Awards and recognitions: From the year 1996-97, the companys performance dramatically improved with higher levels of production in all the plants. In fact, the rated capacity of Urea was manufactured for the first time in 1996-97 since commissioning in 1976, a singular achievement. The company has received the following awards: FAI Award for 'Improvement in overall performance of a Company for three consecutive years 1996-97, 1997-98 and 1998-99. Letter of recognition in 1997 from Directorate General of Factory advisory Services and Labour Institutes (DGFASLI) for maintaining good safety and occupational health standards. MCF received the Honest Taxpaying businessmen award from Commercial Taxes Department, Mangalore Division, a unique initiative taken by Government of Karnataka to honor the prompt Tax payers. Mr. P. C. Jain, Senior Vice President (Works), MCF,

Mangalore, received the award in a felicitation function held at Mangalore on 18th March 2005. MCF has been awarded the prestigious certificates on 1. Environment Management System conforming to ISO 14001:2000 in 2003 which was updated to latest version ISO 14001:2004 in 2005 and 2. Occupational Health & Safety Management System conforming to OHSAS 18001:1999 standard in 2005 which was updated to latest version OHSAS 18001:2007 in 2008. The certificates were awarded by DET NORSKE VERITAS (DNV), the Netherlands, a global certifying agency FAI Environmental Protection Award in NP/NPK Fertilizer Plants for the year 2009-2010. Social Responsibility Initiatives The company has undertaken its Social Responsibility obligation in its true spirit and has always been actively engaged in the up-liftment/ development of the communities in its operating territory. In this direction, MCF has formulated a comprehensive Corporate Social Responsibility (CSR) policy under which Rural Health and Rural Education have been the areas of specific focus during the year. In line with this philosophy, MCF formulated two schemes viz. Project Eye Care intended to prevent/eradicate eye related ailments in identified rural areas and Mangala Akshara Mitra intended to provide basic facilities and infrastructure to rural schools to promote education and to make schooling a pleasant experience. These schemes were implemented in rural and remote locations in the Companys operating territory for the benefit of the poor and needy. Under Project Eye Care free eye camps are conducted in which the needy are recommended for eye surgery, to be carried out free of cost by the associated hospital and free spectacles are provided. Under its Mangala Akshara Mitra program, the basic infrastructure that is required, but is lacking in identified schools in remote locations, is provided by the company. Those include, desks, tables, chairs, green boards, racks, cupboards, school bags, lunch plates, water glasses and computers

Chart showing the Organization Structure of the Company

BOARD OF DIRECTORS 1. 2. 3. 4. 5. 6. 7. 8. Dr VIJAYA MALLAYA CHAIRMAN S.R.GUPTE -UB GROUP NOMINEE DEEPAK ANAND -MANAGING DIRECTOR SHRIKANT G RUPAREL -INDEPENDENT DIRECTOR PRATAP NARAYAN -INDEPENDENT DIRECTOR N.SUNDER RAJAN -INDEPENDENT DIRECTOR B.S.PATIL - INDEPENDENT DIRECTOR K. PRABHAKAR RAO -DIRECTOR(WORKS) MANAGEMENT COMMITTEE

MANAGING DIRECTOR

SENIOR VICE PRESIDENT MARKETING

SENIOR VICE PRESIDENT HR, LEGAL AND COMPANY SECRETARY

SENIOR VICE PRESIDENT FINANCE

DIRECTOR WORKS

Marketing Analysis The Senior Vice President Marketing is the main person responsible for planning and organizing of marketing team whereas he must be able to calculate the demand of the product offered and monitor, analyze and for caste. The main job of senior vice president marketing is to see to it that he ensures profit and to market the product they chose a unique way they are: Position Uniqueness Day in the Life Education

Market size (current and future) Market growth rate Market profitability Industry cost structure Distribution channels Market trends

MARKETING DEPARTMENT

SENIOR VICE PRESIDENT MARKETING

GENERAL MANAGER SALES

GENERAL MANAGER AGRI BUSINESS

DEPUTY GENERAL MANAGER (MIS) MARKETING INFO SYSTEM EXECUTIVE (MIS)

MANAGER

OFFICER QUALITY CONTROL

DEPUTY GENERAL MANAGER HUBLI

DEPUTY GENERAL MANAGER RAICHUR

DEPUTY GENERAL MANAGER COIMBATORE AREA MARKETING MANAGER

DEPUTY GENERAL MANAGER HASSAN AREA MARKETING MANAGER MARKETING EXECUTIVE

AREA MARKETING MANAGER

AREA MARKETING MANAGER

MARKETING EXECUTIVE

MARKETING EXECUTIVE

MARKETING EXECUTIVE

HUMAN RESOURCE DEPARTMENT

SENIOR VICE PRESIDENT HUMAN RESOURCE, LEGAL & COMPANY SECRETARY

GENERAL MANAGER HUMAN RESOURCES

SENIOR MANAGER LEGAL AND COMPANY SECRETARY

SENIOR MANAGER HUMAN RESOURCES

DGM ADMINISTRATION & PUBLIC RELATION DEPUTY MANAGER ADMINISTRATION

MANAGER HR

MANAGER RECRUITMENT OFFICER HR

MANAGER TRAINING

OFFICER HR

OFFICER SUPPORT SERVICE

Human Resource Analysis human resource department also plays a major role in the company. this department assists in evaluating the performance of the employees, helps in training, payment of wages, welfare of the employees and in resolving employee disputes. it focus more on the relationship between the organization and the employees. objectives of the human resource department training career development responsibility and authority promotional policy performance appraisal

suggestion scheme job description development and revision labour market research to develop and revise salary grids resume screening exercise and coaching interview and evaluation of candidates through mock interview with peers workshop and training session development coaching on dealing with difficult h.r. situations and application of laws related to h.r. duties

Financial Analysis
Financial Analysis of a company consists of evaluation or analysis of the companys performance in terms of cost, sales, profit, assets & liabilities and the overall financials by analysing the Profit & Loss account and Balance Sheet of the company for the years. This financial analysis is based on the financial statement of Mangalore Chemicals and Fertilisers Ltd for the year 2010-11. The financial analysis consists of the overall analysis of the Profit & Loss account and Balance Sheet and Ratio Analysis. Sales: Sales is the major source of revenue for the company. Company is engaged with the production and sale of Urea, Di Ammonium Phosphate, and Ammonium Bi-carbonate along with some other trading Table showing sales of the MCF Ltd. for the year 2010-11 Year Sales (Rs in lakhs)
.

2010-11

252319.86

In the year 2010-11 the sales of the company grew by 21.49 percent from the previous year. This indicates that the company is gradually recovering from its previous fall in sales. The companys sales are steadily and continuously growing over the years. Thus the company is doing well by utilising its resources.

some of the functions of the finance department are as follows: Dealing with banks and financial institutions To monitor the budget and budgetary control Monitoring the funds, collections and payments Controlling the inflow and outflow of the cash To monitor the funds , collections and payment To protect the financial interest of the company

FINANCE DEPARTMENT

SENIOR VP FINANCE

SENIOR MANAGER FINANCE (HEAD OFFICE)

GM FINANCE

DGM FINANCE

MANAGER FINANCE

DEPUTY MANAGER

EXECUTIVE MANAGER

OFFICER

DIRECTOR WORKS

GM PRODUCTION

GM MAINTENANCE

GM PROJECT

GM PROCUREMENT

DGM (SHS) SAFETY HEALTH AND SECURITY

DGM LOGISTICS

DGM LOGISTICS

DEPUTY MANAGER LOGISTICS EXECUTIVE LOGISTICS

OFFICER LOGISTICS

GENERAL MANAGER PRODUCTION

MANAGER AMONIA DEPUTY MANAGER PRODUCTION

MANAGER UREA DEPUTY MANAGER PRODUCTI ON

MANAGER SNP DEPUTY MANAGER PRODUCTI ON ASSISTANT MANAGER

MANAGER SAP EXECUTIVE

MANAGER UTILITIES DEPUTY MANAGER PRODUCTION ASSISTANT MANAGER EXECUTIVE

MANAGER IAT EXECUTIVE

OFFICER

OFFICER

ASSISTANT MANAGER

ASSISTANT MANAGER

EXECUTIVE

EXECUTIVE

EXECUTIVE OFFICER

OFFICER

OFFICER

OFFICER JUNIOR OFFICER JUNIOR OFFICER GM MAINTANENCE

JUNIOR OFFICER

JUNIOR OFFICER

(1) DGM PLANT MAINTANANCE

(2) DGM CPP &

ELETRICAL

(3) DGM ENGINEERING & INSPECTION

(4) DGM INSTRUMENTS

(5) DGM RELIABILITY

(1) DGM MAINTENANCE

ZONE 1 (AMONI)

ZONE 2 (UREA & UTILTIE

ZONE 3 DAP SAP SNF)

ZONE 4 (BAGGING IAT)

MANAGER

MANAGER

MANAGER

MANAGER

DEPUTY MANAGER

DEPUTY MANAGER

DEPUTY MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

ASSISTANT MANAGER

ASSISTANT MANAGER

ASSISTANT MANAGER

EXECUTIVE

EXECUTIVE

EXECUTIVE EXECUTIVE

OFFICER OFFICER

OFFICER

OFFICER

(2) DGM CPP & ELETRICAL

MANAGER ELECTRICAL

MANAGER CPP MECHANICAL

DEPUTY MANAGER CPP ELECTRICAL

DEPUTY MANAGER ASSISTANT MANAGER EXECUTIVE OFFICER

EXECUTIVE

EXECUTIVE

OFFICER

OFFICER

(3) DGM ENGINEERING & INSPECTION

(4) DGM INSTRUMENTS

(5) DGM RELIABILITY

ASSISTANT MANAGER ENGINEERING & INSPECTION

MANAGER INSTRUMENT S DEPUTY MANAGER INSTRUMENT EXECUTIVE INSTRUMENTS

EXECUTIVE RELIABILITY

EXECUTIVE ENGINEERING & INSPECTION

OFFICER INSTRUMENTS

GM PROJECT

DGM SPECIALITY FERTILIZERS

SENIOR MANAGER PROJECT MANAGER PROJECT ASSISTANT MANAGER PROJECT

MANAGER SPECIALITY FERTILIZERS

OFFICER SPECIALITY FERTILIZERS

GM PROCUREMENT

DGM PROCUREMENT

DEPUTY MANAGER STORES

DEPUTY MANAGER PURCHASE

OFFICER STORES

ASSISTANT MANAGER PURCHASE

EXECUTIVE PURCHASE

DGM SHS( SAFETY HEALTH & SECURITY)

SENIOR MANAGER SAFETY

SENIOR MANAGER MEDICAL SREVICE

SENIOR MANAGER SECURITY DEPUTY MANAGER SECURITY

FIRE OFFICER

MANAGER SAFETY ASSISTANT MANAGER SAFETY OFFICER SAFETY

NURSE

ASSISTANT MANAGER SECURITY

SECURITY GUARD

ASSESSMENT OF THE INTERNSHIP I am thankful for the opportunity given by SBS (Swiss Business School) to apply my knowledge in obtaining maximum information from MCF Mangalore chemical and fertilizer. I have gained more practical knowledge and I have learnt what the major functional areas in the organization are. The company has to work day in and out to make sure there are no errors. For the organization to function at its best all the functional areas of the organization must be functioning at their optimum level and MCF has succeeded in doing so. My experiences in MCF in these months have been very informative. The most creative part of this company is how the company creates awareness and makes sure that the product reaches in the best possible manner to the end consumer. While observing I found that every functional department in the firm gave me knowledge of the chemical and fertilizer department. I would conclude by saying that the months of internship and organizational study in MCF was a benefit to me because now I have the knowledge of management and practical experience from the company.

CONCLUSION The overall study of the organization reveals that the company has 4 departments and each department is functioning to the best of its capacity to improve and achieve its targets. The financial department has implemented SAP software for efficient collection of data, the turnover of MCF is Rs 2,523.83cr for the year 2010-2011 and it is the only chemical and fertilizer manufacturing company in Karnataka. It has been certified by ISO 14001 and OHSAS 18001. It has grown tremendously since it started in 1966. Here we come to know that marketing department plays a very important role in educating the farmers and informing them about the usage of fertilizers which helps in selling the product.The Human Resource department is involved in taking care of the needs of the employees and in training the employees. The works department is involved in the day to day running of the plant and for the maintenance of the plant.