Table of Contents

GENERAL INDUSTRY ANALYSIS .................................................................................................... 1

SUPPLY CHAIN ANALYSIS OF THE INDUSTRY ........................................................................... 2
SUPPLY STRUCTURE ..................................................................................................................... 2
SUPPLY CHAIN DESIGN AND SUPPLY CHAIN OPERARTION ............................................... 3
SUPPLY CHAIN PERFORMANCE.................................................................................................. 5
SUPPLY CHAIN CHALLENGES ..................................................................................................... 6
OPPURTUNITIES FOR IMPROVEMENT ....................................................................................... 6
COROMANDEL INTERNATIONAL LIMITED .................................................................................. 8
INTRODUCTION .............................................................................................................................. 8
COMPETITORS OF COROMANDEL INTERNATIONAL LIMITED ........................................... 8
COMPETITIVE STRATEGY ............................................................................................................ 9
SUPPLY CHAIN STRATEGY OF COROMANDEL ..................................................................... 10
SUPPLY CHAIN DESIGN, PLANNING AND OPERATIONS OF COROMANDEL
INTERNATIONAL .......................................................................................................................... 11
SCOR MODEL ................................................................................................................................. 13
BENCHMARKING FINANCIAL DATA OF COROMANDEL .................................................... 16
GUJARAT STATE FERTILIZERS AND CEMICALS LIMITED ..................................................... 19
INTRODUCTION ............................................................................................................................ 19
COMPETITIVE STRATEGY .......................................................................................................... 19
GNFC SUPPLY CHAIN .................................................................................................................. 20
SUPPLY CHAIN DESIGN, PLANNING AND OPERATIONS OF GUJRAT STATE
FERTILIZER .................................................................................................................................... 21

1
GENERAL INDUSTRY ANALYSIS

The actual production of all the Fertilizers during the year 2016-17 was 414.41 LMT. The
estimated production of all the Fertilizers during the year 2017-18 is expected to be 462.20
LMT showing an increase of more than 11% in comparison with the previous year. The rapid
build-up of fertilizer production in the country has been achieved as a result of a favourable
policy environment facilitating investments in the public, co-operative and private sectors.

Market Dynamics

The increasing population growth has led to food security concern and increased awareness
among the farmers about the uses of fertilizers. Some of the other factors driving the growth of
the market are high government subsidies and growing investments in the fertilizer
industry. There is a shortage of raw materials in the country and the consequent dependency
on imports is leading to volatile prices in the fertilizer industry. However, the new policies will
help in stabilizing the raw material prices during the coming years.

Major companies in the sector include:

 Chemical Co. Limited

 Coromandel International Limited
 Deepak Fertilizers
 Gujarat State Fertilizers
 Indian Farmers Fertilizer Co-operative Ltd
 Nagarjuna Fertilizers and Chemical Limited
 National Fertilizer Limited

SUPPLY CHAIN ANALYSIS OF THE INDUSTRY

SUPPLY STRUCTURE

Supply chain structure in the chemical industry is difficult because of the complexities
associated with this industry.

Conventional manufacturing (discrete manufacturing) uses bills of materials that specify the
parts that go in the final product, assembles the products, and produces lots consisting of
distinct units.

Process manufacturing is different. Process manufacturers use formulas and manufacturing

recipes. They produce goods in batches or a continuous stream. SCP is based on modelling
constraints and key parameters. Chemical industry models are very complex.

2
In the supply chain planning market, the chemical industry often seems like an afterthought.
Certainly, most of the writing on supply chain planning has a distinctly discrete manufacturing
industry flavour to it.

Complex manufacturing is a hallmark of the chemical industry. Typical factories include many
tightly interconnected operating units for blending, separating, reacting and packaging of final
products.

Tanks are used everywhere, within operating units, between units to balance operations, and
for temporarily storing materials, work-in-process, and finished goods inventory. Production
planning solutions must reflect a deep understanding of the product and the manufacturing
processes to ensure that plans are realistic and support stable product transitions. Planning
requires an explicit understanding of the complex, non-linear chemical processes occurring
within process units. Complex relationships between raw material variability, operating units
and constraints on product changes must still be thoroughly modelled to develop optimal
schedules.

Most SCP suppliers can’t begin to produce high fidelity models of process manufacturing
plants. But in addition to modelling manufacturing, a good supply chain solution needs to also
model demand and inventory. This is important because the central process in supply chain
management is sales & operations planning (S&OP), which is increasingly being referred to as
“integrated business planning” (IBP). IBP balances supply and demand in a manner that
optimizes an organization’s key financial goals. Running demand-supply simulations is
incredibly clunky and time consuming at best. But it can be all but impossible for complex
chemical supply chains unless demand, inventory, and manufacturing parameters and
constraints are in one model.

SUPPLY CHAIN DESIGN AND SUPPLY CHAIN OPERARTION

Process industries such as steelmaking and chemicals are increasingly focused on customer
service, but their supply chain practices are designed for low-cost, efficient operations. To align
with today's corporate strategies, they need to match their supply chains to the markets they
serve while improving their demand forecasting capabilities.

1. What is our actual cost-to-serve for each product to each customer?

Different customers, products, service levels and distribution channels contribute
different margins; by identifying the unprofitable and low-margin product/customer
combinations and high-cost processes, you can develop action plans for each in order
to improve your business’ profitability or determine where to send products in periods
of shortage and excess. Cost-to-serve optimization analyses and quantifies all the
activities and costs incurred to fulfil customer demand for a product through the end-
to-end supply chain. It evaluates the thousands of activity-based costing options to
identify the optimal network design, structure and flow to achieve the lowest total cost-
to-serve based on all end-to-end trade-offs.

3
2. How can we optimize for tax and duties?
For chemical companies, taxes and duties expenses can meet or even exceed total
transportation cost. Companies incorporate tax and duty as cost factors along with the
traditional transportation, facility, labour and inventory costs, enabling true global
network optimization. This will include calculating tax and duties based on the selected
make site, zone and ownership of the product, as well as the transfer price and taxable
income.
3. Should we start delivering certain customers factory-direct?
Network optimization can help identify strategies for improving sourcing and
transportation strategy based on required service constraints. Understand how to
manage channels such as retail, wholesale distribution, e-commerce, OEM and third-
party channels in order to minimize overall costs while meeting unique demands in
each channel. In addition, supply chain inventory optimization can provide a full
inventory plan that includes optimal safety stock, cycle stock and pre-build inventory.
4. How should we flow each product through the network?
The process of moving products from supply through production and eventually
distributing them out to customers or stores presents myriad choices. The collective set
of these choices make up a product’s flow-path through the supply chain. Using Supply
Chain Design, companies can model these flows to identify total landed cost or total
cost-to-serve for each product, and then model all the alternative flow options using
smart algorithms to determine the best choice.
5. To meet seasonal demand, what products do we pre-build?
Long-term capacity planning can help companies manage seasonality, economic
fluctuations and other influences on product demand that place stress on production
schedules and overall capacity. Using production modelling, companies can regularly
review demand forecasts as the information becomes available so that they can best
balance limited production capacity with demand volumes that often exceed this
capacity. This requires production strategies such as pre-building of goods or pre-
positioning of inventory for certain products so that capacity remains available for the
most critical items.
6. How do we balance production lines?
Even if a company has a manufacturing strategy in place, including location and
quantity for each product produced, there are still many tactical decisions that can drive
significant cost savings and operational improvements. Detailed models of the entire
production capacity as a function of the end-to-end supply chain can help a business
determine the production location, timing and quantity of each product throughout the
network to best utilize capacity at the lowest total cost. Modelling results can also
determine lot sizing, labour shift allocation, working hours or best utilization of
changeovers.
7. Where should we position inventory to achieve desired service levels?
By leveraging inventory modelling and policy design technology, companies can
analyse and properly categorize demand, factor all aspects of inventory for both existing
and new supply chain structures and simulate real-world behaviour to enable true what-

4
 if capabilities. The result is a prescription for the right levels of working capital across
continuously-changing businesses.
8. How do we minimize costs for unplanned shutdowns and transportation asset
shortages?
Supply chain risk management and contingency planning is a key application of supply
chain design. Modelling technology enables companies to create living models of the
end-to-end supply chain to mitigate risks by visualizing current inefficiencies, analyse
the impact of changes to the supply chain through scenario analysis, and be able to react
quickly and intelligently to unplanned events such as fires or floods. Variety of global
risk indices to help companies understand and predict the likelihood of supply chain
disturbances.
9. How do we rationalize our supply chain as a result of a merger or acquisition?
Mergers and acquisitions (M&A) introduce an incomparable number of options for the
design of new organization’s future supply chain. Expanded and sometimes redundant
facilities, assets, suppliers, customers and products make the analysis “pre” or “post”
merger difficult. Companies must utilize models that include all the inter-related
operations and incorporate time and variability to determine the best strategy for
combining multiple organizations.
SUPPLY CHAIN PERFORMANCE
 Manufacturing activities of the chemical industries are slowly moving to low cost
regions like Eastern Europe and Asia
 Increased in plant capacity in low cost product have made competition (on the price
front) severe
 There are high operating costs due to security measures for wars.
 Also, the demand is down after the economic downturn hit the Asian region in
1997(This will affect all the stages of the supply chain like retailer, distributor etc)

5
 How should the performance be given current trends?

SUPPLY CHAIN CHALLENGES

Complex manufacturing process:
There are many tightly interconnected operating units for blending, separating, reacting and
packaging of final products

Fluctuating cost:
The prices of commodities like crude oil are constantly fluctuating. This is a major challenge
for chemical industry.

High stakes in quality control:

The chemical industry is highly regulated with strict compliance requirements. Regulatory
body: Global harmonised System of Classification and Labelling of Chemicals.
OPPURTUNITIES FOR IMPROVEMENT

Digitalisation

Digitalization can improve chemical industry maintenance performance and give companies
who embrace technology a decided advantage in today’s globally competitive environment.
According to a recent MarketResearch.com blog on megatrends in the chemical industry,
digital technology can help chemical companies in many ways

6
This shows how much of progress can be got with digitalization.

Other areas that need to be improved:

Human error:
Many industrial accidents that occur every year are a result of human error. As of
2009, a major portion of the injuries (74.8%) happened in the industry, according to
the Bureau of Labour Statistics.
Manufacturing defects:
Accidents that occur in a chemical plant can also be the result of a manufacturing
defect. These defects can be present in a piece of equipment or in the materials used

Improper training:

During 2009, 4.3 out of every 100 workers in the industry were involved in
accidents. A large portion of these accidents occurred as a result of improper
training of personnel.

7
COROMANDEL INTERNATIONAL LIMITED

INTRODUCTION
Coromandel International Limited is an Indian corporation founded in the early 1960s by
IMC and Chevron Companies of USA. Originally named Coromandel Fertilisers, the
company is in the business of fertilizers, pesticides and specialty nutrients. The company is
also in rural retail business in the state of Andhra Pradesh through its Mana Gromor Centres.
Coromandel International is a subsidiary of both the Muruguppa group and EID Parry, which
holds 62.82% of the equity in the company. The company has eight manufacturing units
located in the states of Andhra Pradesh, Tamil Nadu, Maharashtra, Gujarat and Jammu and
Kashmir. Its product line includes Gromor, Godavari, Paramfos, Parry Gold and Parry Super.
The company produces and sells phosphatic fertilisers of various grades,
including Diammonium phosphate and Single Super Phosphate.
Coromandel was ranked #16 of Business Todays’ 2009 list of the Best Companies to work
for in India. The company confers Borlaug Award for outstanding Indian scientist in the field
of agriculture and environment

COMPETITORS OF COROMANDEL INTERNATIONAL LIMITED

Agronomy Company of Canada is perceived as one of Coromandel's biggest rivals. Agronomy

Company of Canada was founded in null, and is headquartered in Thorndale, Ontario.
Agronomy Company of Canada is in the Agricultural Products industry. Agronomy Company
of Canada generates $1.7B less revenue vs. Coromandel.

Loveland Products is a top competitor of Coromandel. Loveland Products is a Private company

that was founded in 1970 in Loveland, Colorado. Loveland Products operates in the
Agricultural Products industry. Compared to Coromandel, Loveland Products has 4,240 fewer
employees.

8
 Agria is Coromandel's #3 rival. Agria is headquartered in Shenzhen, Hong Kong Special
Administrative Region, and was founded in 2000. Agria competes in the Agricultural Products
industry. Agria generates 47% the revenue of Coromandel.

COMPETITIVE STRATEGY
 ‘Make in India’ policy to incentivize domestic fertiliser manufacturing and improve plant
capacity utilization
 Digitization of the Fertiliser Supply chain under Direct Benefit Transfer to improve stock
visibility and bring transparency in operations
 Agri infrastructure development – Strengthening of Irrigation, cold chain, rural electrification
and digital connectivity to bring structural reforms in rural India
 Doubling farm income by 2022 - Higher Minimum Support Price, price discovery through
electronic markets and agriculture insurance to improve disposable income for the farmers and
support higher agri inputs usage
 By 2022, ~26 Crop Protection molecules are going off patent, which provides significant
growth opportunities for generic manufacturers
 Policy change in SSP mandating marketers to print brand name of the manufacturers on the
bags to promote quality consciousness among consumers
 Entry into bio pesticide business to provide access to US and European markets
Strengths
 Amongst the pioneers and market leaders in Organic Fertiliser, Specialty Nutrients, Phosphatic
fertilisers in India
 Significant presence and brand equity in high agri inputs consuming South, West and East India
markets
 Diversified product portfolio with non-subsidy businesses contributing significant share in
Company’s profitability
 Differentiated crop solutions provider with nearly one-third of domestic sales coming from
unique products
 Direct consumer connect through 800 Retail Centers in Andhra Pradesh, Telangana, Karnataka
and Maharashtra offering products and services to around 3 million farmers
 Captive Phosphoric Acid and Sulphuric Acid manufacturing capacity improving the cost
structure of Phosphatic products
 State of the Art R&D facilities for new product development in Nutrient and Crop Protection
space
 ‘Make in India’ policy to incentivize domestic fertiliser manufacturing and improve plant
capacity utilization
 Tax reforms introduced under GST to help in eliminating spurious players, bringing
transparency in operations and benefiting organized players
 Digitization of the Fertiliser Supply chain under Direct Benefit Transfer to improve stock
visibility and bring transparency in operations
 Agri infrastructure development – Strengthening of Irrigation, cold chain, rural electrification
and digital connectivity to bring structural reforms in rural India.

9
The table below shows the risks associated with the company and how it handles the risk using
a mitigation plan.

SUPPLY CHAIN STRATEGY OF COROMANDEL

All imported solid raw materials are transported through trucks and dedicated pipelines are
used for transportation of liquid raw materials (phosphoric acid, Ammonia and Sulfuric acid).
All the solid raw materials are stored in a closed type dedicated storage area whereas the
liquid raw materials are stored in storage tanks.
Functional Areas: Coromandel International limited comprises of four functional areas. They
are:
1. Manufacturing and production
2. Marketing
3. Finance
4. Human Resources
Manufacturing and Production: The main objectives of manufacturing unit of Coromandel
International Limited are
1 To be a low-cost Fertilizer manufacturer
2 Emphasis on safety and environment improvement
3 Trust on energy conservation.

10
 The plant has planned to undertake manufacturing of single super phosphate with estimated
production volume of 0.7 lakh tonnes per annum. The basic raw materials used for
manufacturing are phosphoric acid, urea and ammonia. They buy naphtha to make ammonia
from HPCL. Rock phosphate is imported from USA and Sulphur is imported from USA and
gulf countries.
Human Resource Department: This department deals with the matters pertaining to
managerial staff and is headed by Asst. General Manager & Regional Head - HR who looks
after the matters like recruitment, career planning, training and development, performance
appraisal and smooth administration of remuneration and policies of all categories of
employees of Visakhapatnam Plant as well as Marketing Branches of in the States Le.,
Andhra Pradesh, Assam, West Bengal, Orissa, Madhya Pradesh, and Chhattisgarh.
In addition to this the company has maintained a green supply chain system, keeping the
environmental protection in mind.
SUPPLY CHAIN DESIGN, PLANNING AND OPERATIONS OF COROMANDEL
INTERNATIONAL
1. Facilities- Coromandel is a flagship company of the Murugappa Group and is a
subsidiary of E.I.D Parry (India) Limited which holds 60.59% of the equity share
capital in the Company. The Company operates through two major segments: Nutrients
& other allied business and Crop Protection, offering farming solutions comprising of
Fertilisers, Crop Protection, Specialty Nutrients and Organic compost. The Company
also operates a network of around 800 rural retail outlets under its retail business across
Andhra Pradesh, Telangana, Karnataka and Maharashtra. The Company has 15
manufacturing facilities located in Andhra Pradesh, Tamil Nadu, Karnataka,
Maharashtra, Madhya Pradesh, Uttar Pradesh, Rajasthan, Gujarat and Jammu &
Kashmir. The Company’s products are marketed all over the country through an
extensive network of dealers and its own retail centers. The crop protection products
are exported to various countries. During the year, Coromandel acquired the Bio
pesticide business from E.I.D Parry (India) Limited which would enable the Company
to gain entry in high growth bio pesticide segment in Indian, North American and
European markets.
The coromandel retail outlets which operates around 800 stores in Andra Pradesh,
Telangana, Karnataka and Maharashtra offering the entire range of agri-product and
Fservices to three million farmers .

2. Inventory-The company owns channel inventory and strengthened business processes,

Coromandel expects to sustain its growth momentum for 2018-19. Going forward,
Company plans to strengthen its existing operations and capture new opportunities
through expanding its markets, product & services, business adjacencies and agri
technologies. The assets of the Company, including its plant and machinery, work in
process inventory and finished stocks are adequately insured against loss or destruction
by fire and allied perils.

11
3. Transportation and Logistics
Optimisation of rail road transportation-Operations optimisation is the main business
of railways. Both train operators and infrastructure managers create the best solutions
for activities within a given context of infrastructure and rolling stock. Quality is
measured by punctuality and the number of trains running at peak times. Company will
focus on primary markets to reduce logistics cost, improve customer centricity and
create quality awareness through extensive quick test campaigns. To improve
efficiency and throughput in its plants, Business will complete technology upgradation
and debottlenecking the capacities.

4. Sourcing
Long term tie up with Foskor, south Africa and Tunisia supply agreement for ammonia
and sulphur with Mitsui Potash from Canpotex Ammonia from QAFCO, Joint venture
with SQM Chile, a global player in specialty plant nutrition, improving Coromandel’s
sourcing capability, manufacturing and technical knowledge in Water Soluble Fertiliser
Strategic investment in Tifert (in Tunisia) and Foskor (in South Africa) for upstream
integration for Phosphoric Acid sourcing

5. Distribution Network- we have set up our own distribution network in key states and
are steadily enhancing our reach. Direct consumer connects through 800 Retail Centers
in Andhra Pradesh, Telangana, Karnataka and Maharashtra offering products and
services to around 3 million farmers. he Company has its own corporate internal audit
function to monitor and assess the adequacy and effectiveness of the Internal Controls
and System across all key processes covering various locations.
Coromandel has 4 Fertiliser plants and 4 Crop Protection plants across 5 states in India.

Fertiliser plants at: Kakinada & Visakhapatnam in Andhra Pradesh, Ennore & Ranipet
in Tamil Nadu, Ennore & Ranipet in Tamil Nadu.

Crop Protection plants at: Ranipet in Tamil Nadu, Navi Mumbai in Maharashtra,
Ankleshwar in Gujarat and Jammu in J&K.

Coromandel's marketing branches servicing the farming community across India

are located at:

Hyderabad, Kurnool, Vijayawada and Visakhapatnam in Andhra Pradesh, Bangalore

and Raichur in Karnataka, Trichy in Tamil Nadu, Aurangabad in Maharashtra,
Ahmedabad in Gujarat, Indore in Madhya Pradesh, Raipur in Chhattisgarh and
Bhubaneswar in Orissa, Kolkata in West Bengal, Ghaziabad in Uttar Pradesh.

12
SCOR MODEL

The Supply chain operations reference (SCOR Model) model provides a unique framework
that provides a unique framework that links the performance, processes best practices and
people into a unified structure. The frame work supports between supply chain partners and
enhances the effectiveness of supply chain management, technology and related supply chain
improvement activities.

SCOR solves the supply chain challenges

 Superior customer service: The SCOR model provides a framework for measuring
and understanding the current supply chain conditions and performance and creates a
foundation for improvement
 Cost control: SCOR metrics provides the basis of an organization to measure hoe
successful it is in achieving its desired objectives. SCOR metrics are supposed to be
used in the supply chain performance attributes, making it easier to compare different
supply chains and different supply chain strategies
 Planning and risk management: SCOR helps users establish rules and strategies,
assign responsibilities, coordinate responses and monitor current conditions.
 Supplier/ Partner relationship management: SCOR provides a common language
for supply chain classification and analysis. Using a common language and framework
makes it easier for teams to communicate, spends benchmarking efforts and enhances
the evaluation of best practices
 Talent: The SCOR skills management framework complements process reference,
metrics reference and practice reference components with baseline skills, experience,
aptitude and training

13
SCOR Model in Coromandel Corporation

14
SCOR framework model

 Level 1: It defines the scope and content of the supply chain

 Level 2: Here companies will implement operational strategies
 Level 3: It defines the ability to compete successfully in the market
The above process involves raw materials, suppliers, manufacturer, distributor and consumer.
Level 1 to 3 includes the schedule of product delivery, return of material, product verification
and transportation of product.

15
The SCOR Model Attributes

Performance attributes Strategic metrics

Customer Reliability Addresses the ability to

perform tasks as expected. It
is a customer focused
attribute

Responsiveness It describes the speed at

which the tasks are
performed

Agility This describes the ability to

respond to external
influences and abilities to
change

Internal Cost It describes the cost of

operating the process. It is
internally focused attribute

Assets It describes the ability to

efficiently utilize the assets.

BENCHMARKING FINANCIAL DATA OF COROMANDEL

Industry Fertiliser Sales (in Lakh tons)

Year' Urea Phosphatics MOP
FY 2015-16 320 186 24
FY 2016-17 296 171 28
FY 2017-18 303 175 32

16
 Industry Fertiliser Sales (in Lakh tons)
600
500 24 32
28
400 186 171 175
300
200
320 296 303
100
0
FY 2015-16 FY 2016-17 FY 2017-18

Urea Phosphatics MOP

Industry Phosphatic Performance (in Lakh tons)

Year' Production Imports Sales
FY 2015-16 112 66 186
FY 2016-17 123 49 171
FY 2017-18 129 47 175

Industry Phosphatic Performance (in

Lakh tons)
200
186
171 175
150 66 49 47

100

123 129
50 112

0
FY 2015-16 FY 2016-17 FY 2017-18

Production Imports Sales

Gross Revenue (Rs. in crore)

Year' Rs in crore
2009 9668
2010 6527
2011 7719
2012 9940
2013 8627
2014 9442

17
 2015 11341
2016 11690
2017 10239
2018 11044

Gross Revenue (Rs. in crore)

14000

12000 11341 11690 11044

9940 10239
9668 9442
10000 8627
7719
8000
6527
6000

4000

2000

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Profitability Trend (Rs. in crore)

Profit after Profit before
Year tax tax
FY 2013-14 345 494
FY 2014-15 403 592
FY 2015-16 358 529
FY 2016-17 477 712
FY 2017-18 659 1003

Profitability Trend (Rs. in crore)

1200
1003
1000
800 712
659
592
600 494 529
477
403 358
400 345

200
0
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18

Profit after tax Profit before tax

18
GUJARAT STATE FERTILIZERS AND CEMICALS LIMITED

INTRODUCTION
Originally conceived and started as a Fertilizer company with an objective of providing
agricultural boost to the farmers in the State of Gujarat and at the same time making Gujarat
self-sufficient in fertilizers. Visualising the market pulse well in time, the Company, as a
structured diversification strategy, ventured into the foray of industrial chemicals segment.
Having this objective in mind, Company's integrated complex at Vadodara has been so
designed and structured that it shall be more or less self-sustained by using the by-products
generated by its fertilizer group of plants.

COMPETITOTRS:

COMPETITIVE STRATEGY

1. GSFC could achieve consistent profitability record and it has touched its highest profits
during the period 2001-02 to 2012-13. Its net profit touched ever highest level
of Rs.759 Crores during 2011-12 and the total profit after tax during 2001-02 to 2012-
13 was Rs.3594 Crores, as compared to total profit after tax of Rs. 1166 Crores earned
during the period 1988-89 to 1999-2000.

19
 2. Significantly, GSFC, which was under loss in the year 2001-02 and 2002-03 on account
of various factors, not only turned around but also earned its highest ever profit. Turn-
over per share increased from Rs.255/- to Rs.665/- per share.
3. During this period, GSFC diversified into new chemicals like MEK-Oxime and other
raw materials such as Phosphoric Acid, Potassic Acid, etc. It also diversified and
increased significantly its Fertilizers portfolio. Its Fertilizers manufacturing capacity
today stands at 1.7 Million Tons. It also added significantly to its wind energy portfolio
which stands at over 150 MW. The total projects invested by GSFC during the period
of Hon'ble Chief Minister is Rs. 8340 Crores.
4. This performance of the company is brought out amply by investments made
by domestic institutional investors as well as foreign institutional investors which
stands at close to 40% of its total paid up capital.

STRENGTHS
• Zero Debt Company.
• Fully integrated Production Facilities.
• Better & efficient Management of Utilities viz. Power & Gas.
• Proper & timely plant Maintenance Schedule.
• Strong Brand Image and Market Network.

OPPURTUNITIES
• Argo products consolidation.

• Exploring tie-ups with countries like Togo, Uganda, Senegal, Canada etc. for consistent
supply of raw material.
• Capacity addition in complex fertilizers.
• Expanding fertilizer business reach through franchise network.
• Trading of fertilizers & techno products to tap growing demands.

GNFC SUPPLY CHAIN

The supply chain of the company has these four processes:

 Production and Sales

GNFC has drawn on the world’s leading technologies and systems for its various
production culmination of enterprise and initiative, resourcefulness and resolve,
technology at GNFC common vision for continuous growth. GNFC has always shown a

20
 dedication to standards of production and environment safeguards, qualified research
acumen, and 100% capacity utilisation for more than two decades

 Marketing and Distribution

 Material management

GNFC has developed an integrated Materials Management approach adopting latest

management tools. All the related departments are connected through a Local Area
Network, resulting in paperless environment to the extent possible.
The various plants are set up with various foreign technologies and hence we have
substantial imports of machinery and spares. Our goal is to make right quality of
goods available in right quantities at right time and right price from right source.

 Research and Development

Research and Development centre at GNFC was formally set up in 1986. The R&D
centre is recognised by DSIR, Ministry of Science and Technology, Government of
India as an in-house R&D Centre. The R&D centre is spearheaded by highly
qualified, experienced engineers and scientists delivering solutions that are timely,
cost effective and market focused. Creativity & ingenuity are highly emphasized.

GNFC used established community structures in rural India to build linkages within its
supply chain network for neem seed collection (used in fertilisers). Since its inception three
years ago, by collecting over 45,000MT of Neem seeds, more than INR 45 crore income has
been generated for around 4.5 lakh women across 5 states of India
SUPPLY CHAIN DESIGN, PLANNING AND OPERATIONS OF GUJRAT STATE
FERTILIZER
1. Facilities- With a market presence exceeding 45 years GSFC has carved out an
irreplaceable image for itself on the Indian marketing scene. Integration of
technologies and brilliant innovative research ensures that the products touch all
walks of life. From household consumer to core industrial consumer, GSFC
continuously fulfils multi-fold needs of the market. GSFC's incessant strive for
product diversification and value addition has created a product mix ranging from
more than 24 brands of fertilizers to petrochemicals, chemicals, industrial gases,
plastics, fibers and other products. GSFC has Customer Service Centers both in
Agriculture Field (AD&AS) and Industrial Field (ADC) to disseminate the latest
technical knowledge for efficient use of the Products. Dedicated chemical trading
terminal having storage capacity of 15000+ mts at Sikka (Jamnagar) under
renovation
2. Inventory- Concentrated effort are initiated to economize the cost, especially
logistic & Inventory management of the company product. With a view to remain
More market centric and large access to the market the effect of inventory
performance on profitability of the firm. It also investigates the impact of gross
margin, capital intensity, firm’s size and growth on inventory performance.

21
3. Transportation & logistics- GSFC intends to invite expression of interest from
reputed & professional Transport Contractors to enlist “Registration” for execution
of transport related works handled by Marketing Department at Rozy Port,
Jamnagar (inside, outside port Limit, & from nearby WH at Rozy/ Jamnagar near
wind mill godown) for Transportation of Neem coated Urea/ Other fertilizers to
Various destinations (depots & WH) at all districts of Gujarat and the state of
Rajasthan & MP. “The list of approved transport contractors” of GSFC for
submission of tender immediately and the rates shall have to be quoted for all the
destinations (depots & WH) without any choice for all the districts of Gujarat and
separately for state of Rajasthan & Madhya Pradesh. Evaluation and empanelment
of transporters shall be carried out on the basis of the details submitted in the
application
4. Sourcing-Sourcing and large amount of inputs as most of the raw materials are
sourced directly from large scale manufacturers in India and outside India Sourcing
of Jatropha selections from 4-5 different Argo-climatic Zones sourcing of different
integrated pest management inputs cuttings as planting material & transplantation
parameters
5. Distribution Network-
Unit-wise Plant locations
The company units are as follows
Baroda Unit Fertilizernagar, Nandesari Vadodara, fibre unit at Kuwarda and sikka
unit moti khawdi
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Nagercoil, Nasik,
New Delhi and pune

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