Ashraf Project

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Several people have, either directly or indirectly, contributed to

the development of this project . I have great pleasure an
presenting this report “Rural Marketing Practices & Social
Development Programme of IFFCO”
I express my deep sense of gratitude and indebtedness to Mr.

Yogendra Kumar, Chief Area manager who suggested me to
work on this topic and who gave me his valuable time and
guidance throughout my internship. I benefited a great deal
from his comments.
I would also like thanks to Mr. V.K. Singh sir, Field Manager,
IFFCO, Lucknow for his support .
I would like to thank all my colleagues and friends who

contributed and helped me in completion of this Project .
I will be failing in my duty if I do not thank to my parents and

God who acted as catalyst in getting me to prepare this project.
(SYED
ASHRAF ABBAS RIZVI)
Aryakul college of management, 1

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PREFACE
Today businesses need to constantly adopt and reconfigure
business operations to meet customers demand. In the fertilizer
industry where there is no product differentiation, in order to
woo the customers to make a purchase decision, there is an
immediate need to sense, understand and respond to changes,
threats and opportunities by harnessing the power of real-time
services.
To make marketing successful, every firm formulates marketing

strategies that are necessary to carry out the marketing
programme. The executive summary contains the brief of the
entire project. In the introduction a brief of fertilizer industry
and its contribution to the Indian economy is given. Situation
analysis deals with the current situation of the fertilizer
industry, geographic spread, production& capacity. Fertilizer
market present condition deals with current market conditions
like government policies, problem faced by customers etc.
SWOT analysis of IFFCO is done to know its internal and
external environment. Various aspects concerned with fertilizer
business is discussed which includes subsidies, procurement,
transportation, warehousing etc. Fertilizer key issues deals with
the problem faced by IFFCO which needs to be improved to
foster growth in this industry. Marketing strategies consists of
all such practices and strategies used by IFFCO to maintain its
market position. Marketing mix consist of 4P’s that is price,

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product, promotion, and place. Financial strategy will deal with
the financial ratios. Micro level planning deals with the initial
level of planning’s. contingency planning is also important as
now a day’s market is very uncertain; it changes with the
changes in time .
Table of contents

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Srl No. Topic Page no.

13 Marketing Mix 53-59
1 Executive Summary 5
14 Micro level Planning 60-62
2 Introduction 6-11
15 Contingency Planning 63
3 Objective of project 12
16 Social Development schemes 64-74
4 13-14
RESEARCH METHODLOGY
5 Situation
DATA Analysis
ANALYSIS 15-25
17 LIMITATION 75
6 Target Market 26-28
Suggestions
76
7 Fertilizer Industry Structure 29-30
19 Conclusion 77
8 Fertilizer Market Present 31-34
Condition
20 78
9 SWOT Analysis 35-38
20 ANNEXURE-I
10 Fertilizer Business concern 39-45
Questionairre
11 Fertilizer key Issues 46-47
Bibliography
21
12 Marketing Strategy 48-52
22

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EXECUTIVE
SUMMARY
 Mission
 To keep pace with IFFCO’s mission, IFFCO shall remain the

market leader in the fertilizer industry.
 To maintain its brand loyalty among the farmers.
 Objective of “Marketing strategy of IFFCO”.
 To provide quality product and services by following bets

practices.
 Making fertilizers available to farmers when and wherever

required.
 To strengthen cooperatives in order to enable them to

withstand competition.
 Methodology adopted
 Studying the performance of fertilizer industry by means of

secondary data.
 Studying the previous performance of IFFCO by means of

secondary data.

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 Studying the current environment, trends, problems,

strategy nee etc. of the market by analyzing the facts and
figures provided by IFFCO.
 After collecting the data it was analyzed and the

interpretations are shown in the form of graphs, tables and
written format.
 Summary of the project

My project deals with various aspects of fertilizer business
and its market like its current situation, market needs and
trends, fertilizer industry structure and its key issues, SWOT
analysis, social welfare etc. which are necessary for the firm
to analyze it before forming the marketing strategies.
INTRODUCTION
Indian Farmers fertilizer cooperative (IFFCO) was registered as
a multi- unit cooperative society on November 3, 1967 with an
initial membership of 57 societies, which contributed a sum of
Rs. 0.549million to its share capital. In the last over three
decades the cooperatives have contributed immensely to the
growth of IFFCO and their membership has steadily increased
to 38155 with a share capital of Rs. 1422.69crore.
IFFCO is engaged in the production of urea at Kalol (Gujarat),

Phulpur and Aonla (Uttar Pradesh) and DAP/NPK grades
(10:26:26 and 12:32:16) at Kandla (Gujarat), NP and DAP at
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Pradeep (Orissa). Production was started in 1974-75 at its Kalol
unit for urea followed by Kandla unit for DAP/NPK grades. Urea
production at Phulpur and Aonla was started in 1981 and 1988,
respectively. The production capacity were enhanced and this
work was completed during 1996 for Aonla, 1997 (Kalol and
Phulpur ) and 1999 (Kandla). Further, IFFCO acquired DAP/NPK
plant at Pradeep, Orissa in September 2005.
A biofertilizer was established at CORDET, Phulpur in 1996-97

and Kalol in 2003-04 with annual production capacity of 75mt
and 165mt , respectively, of different cultures viz. Rhizobium,
Azotobacter, PSB, Azospirillium and Acetobacter. The
biofertilizers are sold through IFFCO’s farmers Service Centre’s
and Cooperative Societies and also distributed to the farmers
as one of the component of critical input package (CIP) to
promote integrated use of nutrients.
In 1993, IFFCO had drawn up a major expansion programme of

all the four plants except Pradeep plant under overall aegis of
IFFCO VISION 2000. The expansion projects at Aonla, Kalol and
Phulpur have been completed on schedule. As a result of these
expansion projects IFFCO’s annual capacity has been increased
to 3.69 million tons of urea and NPK/DAP equivalent to 825
thousand tone of phosphates.
With the successful realization of all the objectives of Vision

2000, IFFCO has emerged as a pioneer in international
cooperative movement . A new path has been chalked out to
realize newer dreams and greater heights through Vision 2010
which is presently under implementation.
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The distribution of IFFCO’s fertilizers is undertaken through over
38155 cooperative societies. The entire activities of
distribution, sales and promotion are coordinated by Marketing
Central Office (MKCO) at New Delhi assisted by the marketing
offices in the field. In addition, essential agro-inputs for crop
production are made available to the farmers through a chain
of 158 Farmers Service Centers (FSC), IFFCO obsessively
nurtures its relations with farmers and undertakes a large
number of agriculture extension activities for their benefit
every year. IFFCO engaged in the production and distribution of
fertilizers to farmers through cooperative channel, has always
believed in reaching the farmers and cooperatives through its
various promotional programmes since inception in 1967.
Dissemination of agro-technology from lab to land for its wide
adoption and through feedback through farmers For further
improvement is important to bring in changes in their
practices . in this direction the promotional and other
developmental programmes organized by IFFCO for the benefit
of farmers and cooperatives in the last three decades have
been quite effective and have provided strength and
confidence to farmers. It is a fact that every 5th and 6th bag of
fertilizer produced and used in the country, respectively is that
of IFFCO. It has contributed towards the
service of farmer’s community and various other activities like

collaborative work with national/international organizations,
value addition to fertilizes, IFFCO chair, training and publicity

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programme, ICT initiatives (Information and communication
Technology) and other social/community oriented activities .
Through these programs have provided platforms for
interaction between the farmers, cooperatives, IFFCO and the
officials from various departments/institutes associated with
agriculture development in general and fertilizer use in
particular. The thrust through these programmes has always
been on maintaining soil health for sustained better crop
yields .
 IFFCO MISSION
IFFCO’s missions is “To enable Indian farmers to prosper

through timely supply of reliable, high quality agricultural
inputs and services in an environmentally sustainable
manner and to undertaken other activities for their welfare.”
 VISION
To augment the incremental incomes of framers by helping

them to increase their crop productivity through balanced
use of energy efficient fertilizers; maintain the environment
health; and to make cooperative societies economically and
democratically strong for professionalized services to the
farming community to ensure an empowered rural India .
 VISION 2010
In order to maintain the sustained pace of remarkable

growth being

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achieved under the “MISSION 2005”, the society is in the

process of formulating another growth plan “VISION 2010”.
The following main objectives have been kept in view while
formulating the “VISION 2010”:
 Attaining an annual turnover of Rs. 15, 000 crore by 2010.
 Installation of ammonia and urea plants including acquisition

of fertilizers units.
 Backward integration to meet feed stock requirement such

as phosphoric acid etc.
 Generation of Power .
 Exploration/Distribution of hydro-carbons .
 Production and Marketing of micro-nutrients , seeds, bio-

fertilizers, pesticides.
 Value addition to agri-products and marketing .
 Manufacturing of petro-chemicals.
 Banking in financial services.
 Information Technology and I.T enables services .
 VISION 2015:-

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In pursuit of its growth and development, IFFCO had

embarked upon and successfully implemented its Corporate
Plans, ‘Mission 2005’ and ‘Vision 2010’.These plans have
resulted in IFFCO becoming one of the largest producer and
marketer of Chemical Fertilizers by expansion of its existing
Units, setting up Joint Venture Companies Overseas and
Diversification into new Sectors.
IFFCO has now visualized a comprehensive plan titled ‘Vision-

2015’ which will be guided by the following objectives:
 Production of fertilizers through expansion of existing units.
 Setting up of fertilizer production facilities in India and

outside the country through joint ventures.
 Diversification into other Profitable Sectors.
 Strengthening its raw material sourcing through Strategic

Joint Ventures in India and abroad.
 Strategic Alliances through IFFCO Consortium.
The salient features of the ‘Vision-2015’ are

as under:

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 Maximizing the synergies o f the core business through

Downstream Value Additions and Forward/Backward
Integrations.
 To Stand as a Global Leader in Fertilizers production to cater

to the food security need of the nation.
 Enhancing Presence in International Markets through

Strategic Joint Ventures and Synergistic Acquisitions.
 Diversification into other profitable businesses to maximize

returns to our stakeholders.
 Leveraging State of the Art Technologies and Global best

practices to retain its global competitiveness.
 Promoting integrated Nutrient management to improve

efficiency of fertilizer use and promoting location specific
research on efficient fertilizer practices.
 To bring in Sustainability and Strategies to prevent Climate

Change by Reducing Energy Consumption, better resources
Management and Promoting Renewable Energy sources.
 To help the Cooperative Societies become economically

strong, professionally managed and to equip the Farming
community with advanced agricultural practices for improved
Productivity, to ensure an Empowered Rural India.

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 Achieve Fertilizers Production/ Marketing target of 15 million

tonne per annum with an annual turnover of Rs. 30,000
crores.
 IFFCO Approach
To achieve the mission, IFFCO as a cooperative society,

undertake several activities covering a broad spectrum of areas
to promote welfare of member’s cooperatives and farmers.
 IFFCO Commitment
Our thirst for ever improving the services to farmers and

member cooperative is instable, commitment to quality is
insurmountable and harnessing of mother earth’s bounty to
drive hunger away from India in an ecologically sustainable
manner is the prime mission. All that IFFCO cherishes in
exchange is the everlasting smile on the face of Indian farmers
to form the moving spirit behind this mission.

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OBJECTIVE OF THE
PROJECT
The consumption of fertilizer has an inextricable link with the

growth of agriculture. The slow pace of growth experienced was
due to a variety of reasons, including – vagaries of the weather,
an uncertain policy environment for fertilizers, inadequate
credit availability, weakness of the extension machinery , etc.
This project that deals with “The Rural Marketing Strategies

Of IFFCO” describes all the activities and strategies necessary
to achieve the businesses’ strategic objectives.
Following are the objectives of the project :
 To know the marketing needs and trends.
 To know the targeted markets and their present conditions

.
 To know the promotional activities carried out by the

organization.
 To know the financial strategy followed by the

organization.

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 To know the activities adopted by the firm for

incrementing its market growth and to maintain its market
leadership position.
 To know its main business concerns and issues.
 To know about the social development schemes runs by

IFFCO.

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RESEAECH
METHODOLOGY
A detailed survey of farmers was carried out to find out their

preferences for IFFCO fertilizer .
The details of the methodology are stated below:
AREA :
unnao

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Major Highlights of
IFFCO(2009-10)
KALOL
Production highest ever 5.45 lakh MT of urea with capacity

utilization of 110%. Achieved lowest specific energy
consumption of 5.796 Gcal/MT of Urea during 2009-10.
PHULPUR

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Highest ever yearly production of 17.23 lakh MT of Urea with
capacity utilization of 101%. Previous best was 14.56 lakh MT
in 2006-07.
Phulpur-I operated with lowest specific energy consumption of

6.687 Gcal/MT of Urea. Phulpur-II operated with specific energy
consumption of 5.666 Gcal/MT Urea.
AONLA
Highest ever yearly production of 20.01 lakh MT of Urea with

capacity utilization of 100% . Previous best was 20.05 lakh MT
of Urea in 2008-09.
Aonla-1 and Aonla -11 operated with specific energy

consumption of 5.690 Gcal/MT and 5.544 Gcal/MT of Urea ,
respectively .
KANDLA

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The unit produced 23.74 lakh MT of NPK/DAP/MAP. Best

production was 26.86 lakh MT of NPK/DAP in 2005-06.
The plant operated with specific energy consumption of 0.244

Gcal/MT of P2O5. Best was 0.222 Gcal/MT of P2O5 in 2005-06 .
Achieved P2O5 efficiency of 73.2% during 2007-08 as

compared to best of 99.51% in2002-03.
PARADEEP
Unit produced highest ever 15.00 lakh MT of NP/DAP during the
year 2009-10 registering a rise of 14.9% over last year .

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 IFFCO Composition
Membership 38155 cooperative societies
Share capital Rs. 1000.00 crore (Authorized)
Rs. 423.93 crore (Subscribed and

Paid up Capital )
All share Capital wholly owned by

Cooperatives only .
Net sales 1032.496 Lakh MT
Net worth Rs. 3688.66 crore
Organization Chart of
IFFCO
Hea
d
offic
e
Kandl Kalol Parad Mark Aonla Phulp

a Plant eep etin Plant ur
Plant Plant Plant
g
Offic
e

Lucknow Punja AP, Gujar Assa
b, T.N, at, m,
Harya Kar M.P. Oriss
na,Ra . Mah, a,
jastha Keral Chhat W.
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North Nort Sout West East

Centr h h Zon Zone
al Zon Zone e ( (Kolka
zone e (Bangl Bhopa ta)
(Luckno (chand ooru) l)
U.P,
Bihar,
Jharka
nd,
Uttara
nc
SITUATION ANALYSIS
India is 3rd largest consumer of fertilizer though its
consumption per hectare is much lower. IFFCO, the industry
leader, which is having a good hold over the
state market, is looking forward to maintain its position by
catering the needs
of the farmers. Providing fertilizer to the right customer at the
right time and at the right place is the motto for which
situation analysis is important.
Population : Largest population in India is in Uttar Pradesh

and has the lowest literacy rate. (2006-07)

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Divisions, Districts, Tehsils, Blocks and Villages in U.P.
Parameters U.P (2006-

07)
Total population (lakh) 1662
Rural Population (lakh) 1317
Urban Population (lakh) 345
% Rural population 79
Literacy rate (%) 57
 No. of Divisions - 19
 No. of Districts - 83
 No. of Tehsils - 345
 No. of Blocks - 90
 No. of Villages - 123950
Area:

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Srl.No Parameters Area
(000 IFF
ha) CO
1 Reporting area 24201 O
2 Net cropped 16750
area(NCA)
3 Gross cropped 24600
area(GCA)
4 Net irrigated area 12966

(NIA)
Number 5 Gross irrigated 17643
area(GIA)
of 6 % of NIA to NCA 77
operational holdings by major size groups.(2006-07)
Srl.N Parameters Holding
o s
(000
nos.)
1 Marginal (<1 ha.) 16659
2 Small (1 to 3087
2ha.)
3 Semi-medium (2 to 4ha.) 1427
4 Medium (4 to 436
10ha.)
5 Large 32
(>10ha.)
Total holdings 21668
 Area operated by major size groups. (2006-07)

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Nutrient Consumption Consumption

(000 tones) (kg/ha)
N 2717 112
P 847 35
 Fertilizer K 162 7
NPK 3726 153
Consumption in the state in the year 2006-07 (000 tones).
Urea 5168
DAP 1321
MOP 124
 Nutrient consumption in the state in the year 2006-07 (000

tones).
Srl.N Parameters Area

o. (000
ha)
1 Marginal 6648
(<1ha.)
2 Small ( 1to 4366
2ha.)
3 Semi-medium (2 to 3906
4ha.)
4 Medium (4 to 2580
10ha.)
5 Large Aryakul college of management,
484 25
Lucknow (>10ha.)
Total holdings 21668
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 NPK ratio 16:5:1, same as previous year .
 There are about 51900 sale points in U.P.
 Projected Fertilizer requirement in India.
 Major source of irrigation: Tube wells and other wells are

mainly used for irrigation purpose in the state. 76% of
irrigation is done by tube wells.
 Demand and Supply: With assumption of 100% capacity

utilization in existing fertilizer plants.
Demand Supply of ‘N’, ‘P’, ‘K’ (In Lakh Metric

Tonnes)

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Year Demand Supply
N P K N P
2002- 123.00 55.05 18.64 120.5 52.31

03 8
2003- 127.18 59.07 19.48 121.7 52.31
04 4
2004- 131.16 62.77 20.26 121.7 52.31
05 4
2005- 135.14 66.46 21.04 121.7 52.31
06 4
2006- 139.23 70.27 21.83 129.2 52.31
07 8
 Prices: price at which the government is buying fertilizers

and the price at which it is made available to farmers. (2008-
09)
(Rs. Per ton)

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Indigenou Import Pricr of

s Price Farmer
Price s
UREA 13,017 31,166 4,830
DAP 58,584 58,584 9,350
UREA
MOP DAP
Not MOP35,563 NPK 4,455 SSP
Subsidy 11,200 49,234 31,108 36,722 8,134
produced
NPK 43,274 Not 6,552
imported
SSP 9,277 14,919 3,400
 Taxes on fertilizers are charged at the rate of 4% of “N”
content.
 Subsidies on fertilizers: the amount of subsidy given by the

government to make these fertilizers available to the farmers
at a low price. (2008-09)
(Rs. Per ton)
 There are about 10,94.378 central Warehousing Corporation

(CWC) and about 27,02,900 State warehousing Corporation
(SWC) in the state.
 Problems of fertilizer industry.
 Majority of Indian farmers are small and marginal.
 Majority of farmers do subsistence farming , therefore

consumption of fertilizers is low.
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 Price hikes result in reduction in fertilizer demand.

 Farmers do not have the paying capacity to adopt best
farm practices.
 Production of fertilizer is continuous but still it cannot
bridge the gap between demand and supply.
 Lack of efficient infrastructural facilities like
transportation, storages, godowns, etc.
 Ultimate consumer is very large in number.
 Multimode/multi channel distribution.
 High cost and high volume material.
 Product hygroscopic in nature.
 Performance Highlights of IFFCO in Lakh MT. (2009-

10)

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HIGHLIGHTS OF 2009-10
Profit Before Tax

USD 119.63 Milion.
(Previous best USD 167.21 million MT in 2008-09)
Profit After Tax

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(Best USD 115.44 million in 2002-03)
USD 84.58 Million.
Highest Sales Turnover

USD 3544.62 Million
(Previous best USD 6945.02million in 2008-09)
Production of Fertilizers
8.20 Million MT
(Best 1669 MT/Employee in 2005-06)
Highest Sales of Urea & NPK/DA

11.83 Million MT
(Previous best 11.23 million MT in 2008-09
TARGET
MARKET
Rural areas of U.P where the land is used for
agriculture purposes are the targeted markets of
IFFCO.
 Market demographic:
The targeted market is further segmented by
studying the demographic of that place. This
includes age wise, income wise and acreage
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wise segmentation. All offering are to be
necessarily planned after a careful
segmentation of the farmers. The farmers are
selected not merely on the basis of their land
holding and assets but more importantly on
their attitude to accept that IFFCO is there to
help them to improve their farming and help
them earn more, thus ensuring that various
segments of farmers are satisfied. The selection
process of farmers starts with identification of
districts with reasonable IFFCO presence and
further cascading down to Tehsil and villages
with the help of channel partners and thus
locating individual farmers desiring to be part of
IFFCO (customers).
 Market Need:
 Indian farmers consider nitrogen as the primary
fertilizer and there is considerably less usage of
complex fertilizers and micronutrients.
 Timely supply of fertilizers to meet demand and
supply.
 Need for aggressive, intuitive, timely, proactive
and synergy market strategy as the fertilizer
market environment is highly dynamic and
challenging.

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 Need to simply product registration process to

facilitate industry to bring new products for
better fertilizer use efficiency.
 Certain policies should be proposed by the

government which can be accepted and
appreciated both by the farmers as well as the
fertilizer companies.
 To adopt and equip to the ever changing market
conditions, the market personnel requires a
wider exposure to the various aspects of a
fertilizer industry and also through orientation
to the system.
 Market Trend:
It includes growth trends, trends in consumer
preferences, and trends in product development.
 Fertilizer consumption is directly proportional to
food grain production in India. This trend of
positive relationship is across the state and
responds very positively in both irrigated and
non-irrigated areas.
 There is hardly any fertilizer product
improvement during last one decade in India.
One of the main reasons behind this is the
cumbersome, expensive and long process of
product registration.

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 Implementation of minimum support price is

mostly for wheat and rice only which distorts
the market in favor of these crops and therefore
Indian farming has become wheat-rice centric.
This narrows the fertilizer consumption window
in the state and thereby higher material holding
cost and risk for fertilizer industry.
 Fertilizer is a seasonal product. Its consumption

increases during monsoon and remains in much
demand during Kharif and Rabi season.
Generally the nutrient consumption is more in
Rabi season as compared to Kharif season.
 Demand and supply imbalances are continuous
which hinders the growth of fertilizer industry
and also the impact of which can be seen on the
fields.
 Unstable policy environment coupled with
market uncertainties.
 Lack of collaborative effort from government,
industry and research.
 Continuous increase in the price of fertilizers
and the subsidy given by government in the last
four years.
 Last but not the least, the poor purchasing
power of the farmers.
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FERTILIZER
INDUSTRY STRUCTURE
 Capacity and Production

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10.495 million 10.477 million

tonnes tonnes
Capacit Productio
y n
 Geographical spread

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 Major players
 Public Sector
 NFL – Bhatinda, Nangal, Panipat, Vijaipur.
 Rashtriya Chemicals & fertilizers, Trombay,
Thane.
 Gujarat Narmada Fertilizers Corporation,
Bharuch.
 Gujarat state Fertilizers Corporation,
Vadodara.
 Co-operative Sector
 IFFCO, Kalol and Kandla, Phulpur, Aonla,
Paradeep.
 Kribhco, Hazira & Gorakhpur.
 Private Sector
Zone No. of Capacity Productio
plants (‘000 tones) n
(‘000
tones)
East 13 1049.9 416.3
West 14 3399.5 3655.6
North 15 1968.5 1965.4
South 21 4077.3 4340.0

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 Chambal Fertilizers, Katedan.

 Indo Gulf Corporation, Jagdishpur.
 KSFL, Shahjahanpur.
FERTILIZER MARKET
PRESENT CONDITION
 Fertilizers plan in the State
No. of Plants Capacity

(lakh MT)
IFFCO 2 26.73
Private 4 28.69

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 Fertilizer consumption is maximum in the state
because of soil infertility. Urea is in great
demand in the state as the soil lack nitrogen
content which is very essential for the growth of
crops . DAP and SSP are good source of
Phosphorus and DAP is the second fertilizer
which remains in the demand in the state. Soils
in this region have good potash content which is
required in very less amount.
 Total nutrient consumption in the state is

37,26,078 tones. The consumption is more in
Kharif season with maximum nitrogen
consumption in Rabi season. District wise
nutrient consumption is given in ANNEXURE-II.

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 Overall market share of UREA in the state of
Uttar Pradesh in%.
 The share of NPK and DAP is 70% in the state as

few company in the state is supplying NPK and
DAP.
 The two plants of IFFCO in U.P. are the major
plants urea and supplying it all over U.P. and
other state. The production is highest in the
Aonla plant 1770.1 (000 tonnes) with an annual
capacity of 1729.2 which is much higher than
the annual capacity of Phulpur plant 1415.7.
The production of urea is throughout the year
and more than its capacity.
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 Consumption is very large in volume .
 Consumption highly sensitive to monsoon.
 Limited Number of customers (dealers) in a
given territory.
 Transportation of fertilizers is mainly through
rail and roads
 Major source of irrigation is tube well in U.P.

Canals and other wells are also used for
irrigation purpose.
 Prices of Complex Fertilizers have been

reduced by 19% (average) since 18.06.2008.
 Total subsidy given by the government on

fertilizers in the last four years has continuously

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increased. The government has not increased
the price of fertilizers in the last four years
whereas the subsidies by the government on
fertilizers have increased from Rs. 15,779 crore
to Rs. 1,19,772 crore in last four years.
 Distribution channels
 Primary Agriculture Credit Society
 Cane Cooperative Society
 U P AGRO
 Total working sale points in the state.
 IFFCO’s sale points are located in all over the
U.P.
 IFFCO has 62 FSC’s spread all over state.
 Warehousing: In order to make fertilizers
available at door of farmers, the Central

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Warehousing Corporation, State Warehousing
Corporation and U.P. Cooperative Federation
godowns.

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 STRENGTHS:
 Well established brand identity amongst

farmers.
 Wide range of products (UREA, NPK, GR.I,
NPK GR.II &DAP) which suits to the need of
various crops.
 Availability of maximum number of rake
points. Out of 83 districts 52 districts have
rake points.
 Well established storage facility. Almost each
distrist godowns for storing fertilizer. In some
of the districts godowns of PCF/SWC/CWC are
located even at tehsil/block level, village
societies are also having their own godowns.
 Two strategically located IFFCO urea plants in
the state- one in western part of U.P. which is
highly potential and productive and another
in eastern part of the state.
 Sale is supported by promotional
programmes. IFFCO is in close touch with
farmers through promotional activities since
1970.
 Large number of qualified field force. IFFCO

has 100 field officers working an almost each
and every districts of the state. There are 13

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area offices. Own distribution channel of
FSC’s . There are 62 farmers service centre’s
in U.P.
 Wide spread network of cooperatives.
 Beside cooperative societies, cane unions are
also engaged In fertilizers distribution and U.P.
Agro also dsitributing IFFCO fertilizers through
its own centre’s and enterpreneurs.
 Availability of cooperative credit.
 Direct supply to societies.
 Being in cooperative sector IFFCO is getting
proper support from government.
 For cooperatives, CANE and U.P. Agro of Urea is
given to other manufacturers except IFFCO and
KRIBHCO.
 WEAKNESS:
 Shrinking distribution channel- Number of
coperative societies are getting defunct every
year due to poor recovery. Cane unions are
also becoming defunct.
 Cooperatives do not owe to IFFCO.
 More political and government interference.
 Inadequate and ineffective transport system.
 Weak and corrupt cooperative leadership and
beurocracy.

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 Lack of dedicated, trained and honest

cooperative staff.
 Delayed decisions and time taking
procedures.
 Lack of infrastructure for improving roa
supplies to cooperative to face competetion-
Poor road supplies.
 Improper handling and storage of the
fertilizer by SWC/PCF.
 More departmetnalism and lack of supporting
attitude between different departments of
the organisation.
 OPPORTUNITIES:
 Ability to meet supply demand of urea due to

location of Aonla and Phulpur plants in the
state.
 Availability of cooperative godowns in rural
area which can be utilized in case of any
emergency.
 Wide scope pf increasing road movement
covering large number of districts in the state
due to strategic location of 2 urea plants that
is eastern and another in western part of the
state resulting fresh availability of urea to the
farmers.

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 U.P. government is restructing panchayat

system which can be utilized for fertilizer
distribution.
 Somr NGO’s, horticultural societies and
NAFED etc. are also interested in fertilizer
distribution.
 THREATS:
 Three urea plants of KSFL, TATA, and
INDOGULF are located in the state. These
organizations have better road transport
facilities ensuring timely supply of fresh
material at cheaper rates. Other
manufactures are trying
to enter in cooperative sector and adopting
all tactics.
 Fast decisions and underhand dealing by

other manufactures.
 Ever falling recovery of cooperative credit
and no plan to revitalization of defunct
societies.
 Declining water resources and water table.
 No major irrigation project and political
interference.
 Increasing government and political
interference.

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 Decontrol and decimalization of urea in near

future. Due to high cost of production of
indigenous urea tough competition is likely to
face.
FERTILIZERS
BUSSINESS CONCERN

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 Subsidies: Government of India is focusing

on continuous increase in the subsidy and
decrease in the prices of fertilizers. Although
these subsidies increased the use of fertilizer,
the costs are still more according to small and
marginal farmers. Govt. is granting 55-70%
subsidy on the fertilizers and due to high
subsidy the private companies are unable to
carry out the production process as the
procurement cost is much more then the selling
cost. The present scene is that there are billions
of rupees pending on the government and for
private companies it is very difficult to survive
without it.
 Procurement of raw material and

imported fertilizers: Effective
procurement can reduce excessive peaks in
deliveries, but the unloading facilities must be
sufficient to deal smoothly and efficiently with
the expected rates of delivery. Where delays
have become endemics, consideration should
be given to using additional parts for fertilizer
imports. Mechanical offloading for fertilizers in
bags or in bulk may have to be installed or
improved.

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 Rising cost of raw material: Besides

high cost of finished fertilizers, the prices of raw
material and intermediates continued to record
sharp increase. Prices of raw material including
transportation have been rising in the
international market. Due to hike in the prices
of phosphorus, naptha,
natural gas as well as the cost of the fuel has
hiked extremely which directly and indirectly is
increasing in the prices of raw materials.
Natural gas is the most efficient and economical
feed stock for urea. Most urea plants are based
on natural gas as feed stock followed by
naphtha. Shortage of natural gas is compelling
even the existing gas based fertilizer plants to
shift towards the use of naphtha thereby
increasing the cost of production.
 Transportation: The first criterion of

effectiveness in fertilizer distribution is that the
product be available in adequate quantities
when and where it is needed. This depends on
the existence of suitable transport modes and
storage facilities. It also reflects managerial
capacity in ordering; stock movement and sales
territory allocation.

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Two modes of transportation that is through Rail
and Roads are used for distributing the
finished fertilizers to various locations in U.P.
Approx.
Rail
74%
Road
26%
Rail: Rail is usually preferred for haulage over

long distances if the cost per tone is lower than by
road. The important factor is the reduction of the
turnaround period of the rail wagon. This is
possible through movement in a full trainload to a
single destination. A prerequisite of this is the
establishment of central railway heads at various
points in the country that can receive and
handle the necessary trainloads with in the
specific period. In India, more than 100 of these
so-called nodal points have been identified for this
purpose. Then develop them in such a manner as
to make them capable of handling full trainloads
within five to six hours. Since a number of
trainloads are expected to
arrive each week, a transit storage point will also
have to be developed at each nodal point.

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Road: Transport by road is economical on short

distances because it is generally quicker, there is
less handling, losses in transit are lower and there
are better possibilities for return loads and
competitive pricing. To obtain the maximum
benefits from road transport, petrol costs per
tonne kilogram can be reduced by proper route
planning and by ensuring return loads. In many
instances, vehicles travel only partly laden or
make long detours to deliver only small quantities,
thereby adding unnecessarily to the unit cost.
Major transportation constraints are

due to following reasons:
Transpo
rtation
constrai
nts
Wagon
Govern
Unavail Truck Poor
ment Sharp
ability Unavail Infrastru
Regulati season
open ability cture
on
Wagons

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 Inventory and logistics: Minimum

inventory should be maintained so as to
mobilize the finances in the proper direction and
in time.
Factories generally have a warehousing

capacity equivalent to four to five weeks of
production. In times of product scarcity, stocks
move quickly into distribution channels. In the
time of product glut, the owners o warehousing
tend to shift to the manufacturer or the
wholesale trader. Successive stages in the
distribution chain must share the responsibility
of inventory holding, the expenses of storage,
interest on capital tied up and handling charges.
Safety movement to avoid pilferage or damage
from rain etc. mini rakes or 2 point rakes are
used to coverall the sale points of the state.
 Storage: The seasonal demand for fertilizer

means that the need to hold considerable
quantities in primary or secondary storage for
subsequent more dispersed distribution is
difficult to avoid storage facilities must be clean
and dry and there must be sufficient space to
keep the different products separate and to

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permit easy removal from store. Where fertilizer
is imported in bulk and bagged either at the
port or at inland centers, adequate controls are
needed to ensure that the quality and weight of
the bagged fertilizer conform to the desired
specifications. Storage time at port must be
minimized if conditions are humid.
Nevertheless, there must be sufficient space to
permit quick reception of the ship’s cargo. Port
storage is generally in the hands of the port
authority of a rail company and rather
expensive because of competition for space
from other incoming goods.
 Supply chain and distribution

channels: Fertilizer distribution of urea and
its interstate movement is under government
control and is regulated under the Essential
Commodity Act (ECA). Under ECA, supply plan
for urea is formulated by the Government in
consultation with the State Departments of
Agriculture and Fertilizers Industry during “
Zonal Conferences” held twice a year. The
objectives of such exercises have been to

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minimize transportation cost by avoiding criss-
cross movement of material and to ensure
availability as per requirement all over the
country.
Fertilizers
Distribution Channels

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 Co-Operative Society.
(PACS) Primary Agriculture Credit Society.
 IFFDC.
 Cane Unions .
 IFFCO FSC’s.
 PCF own center.
 UPSS.
 Bhumi Suvidha Nigam.
 158 IFFCO Farmers Service Centers.
IFFCO is channelizing its entire production

through the cooperative channel and
institutional agencies such as State Agro
Industries Development Corporations,
Commodity Federations etc. They operate
through their own sale depots.
The cooperative structure differs from state to
state and societies at different levels
(districts/taluka/village) perform different
functions in different states. Generally, the
cooperative network operates through a 3 tier
system. At the state level, Apex Cooperative
Marketing Federations act as wholesalers;
marketing societies at districts/taluka level as
sub-wholesalers while PACS, PAMS (Primary
agriculture Marketing Societies) at grass root

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level act as retailers. The function of State level
Apex Cooperative
Marketing Federations differ from state to

state. In Uttar Pradesh (U.P.), they are not
directly involved in the fertilizer business and do
the job of
liaison and coordination only for suppliers.
In U.P., the State Federation is also doing
warehousing as well as transportation job
both for IFFCO and KRIBHCO (The only
manufacturers in the cooperative sector ).
IFFCO has its own retail outlets called Farmers
Service Centers or Service Centers or Farm
Information Centers etc. In these outlets,
agricultural inputs like fertilizers, seeds, agro-
chemicals and agricultural implements etc are
made available to the farmers under one roof
along with agricultural production technology
literature.
 Environment Challenges: Maintaining

ecology is a big challenge for the fertilizer
industry. In the current scenario fertilizer firms
are encouraged to use eco-friendly technologies
to enrich the quality of human life. The firms
have to take initiatives for acquiring,

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assimilation and adoption of reliable, efficient
and cost- effective technologies.
ISO 14001 Certification, treatment of

effluent/sewage water, rain water
harvesting, implementation of various schemes
to reduce energy consumption for production of
Ammonia & Urea, reduction of CO2 emission
etc. should be taken to promote greater
environmental responsibility.
FERTILIZER
KEY ISSUES
 Demand-supply gap: Due to the increasing

demand there is a gap between the supply
side. The reason behind this is the increase is
subsidies and decrease in the cost of
fertilizer. Due to this the consumption of

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fertilizers has been increased. The gap
between demand and domestic supply is met
through imports. Though the production is
continuous and beyond capacity still the
firms are not able to bridge the gap between
demand and supply and the imported
fertilizers are highly expensive.
 High capital investment for plant

establishment: The fertilizer industry,
particularly the manufacture of ammonia and
urea, which has progressively developed over
the years is a highly capital and energy
intensive industry. These plants require
special technologies to transport ammonia,
LNG, Naphtha etc. which requires crore of
rupees. Not only this energy saving is the
commitment made by the firms but this also
requires high investment. To increase the
production capacities fertilizer firms tends to
expand the plant capacities by investing
huge amounts. Sometimes the firms which
are unable to do such investments suffer loss
and ultimately shut down their projects.

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 Frozen freight charges: Inadequate

reimbursement of transport cost may lead to
regional imbalances and shortages. High
transport costs due
to fuel costs, labor costs; truck depreciation,

maintenance and repair; insurance; taxes
and duties had made fertilizer firms to face
various challenges as the government in
continuously increasing the subsidies and
decreasing the cost of fertilizer, but no such
policies are made by the government of
production. The firms have to pay heavily for
transporting its raw material and finished
fertilizer.

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MARKETING
STRATEGIES
 Market leadership strategies: The aim

of IFFCO is to become market leader by
marketing highest quantity of quality fertilizers
and promoting environment friendly-sustainable
agriculture. IFFCO’s publicity strategies on
harmony with achieving the organizational goal
are always in its full swing which gears to create
an atmosphere of goodwill amongst internal and
external publics.
IFFCO has solution oriented approach of

providing products and services to its
customers. The cooperative does strategic
planning according to its available resources.

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IFFCO’s plan are devised on the basis of
customers needs and requirements. Solution
oriented approach is financially viable in high
potential and mature markets like Uttar
Pradesh.
To identify the farmers needs through market

research is conducted and based on the market
survey the product and service portfolio is
devised. It constantly educate its target
customers about its product and services.
 Strategies for growth: IFFCO’s activity

on rural and agricultural development continue
to focus primarily on restoring the imbalance in
the N:P:K consumption ratio to preserve soil
health, increase crop productivity and for
promoting sustainable agriculture. The society
makes continuous efforts to educate farmers
and cooperatives to enhance crop productivity
through balanced use of nutrients. Various field
programmes are organized which highlights soil
infertility due to imbalance use of nutrients,
resulting

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in multi-nutrient deficiencies. IFFCO organizes

need of nutrients, resulting in multi- nutrient
deficiencies. IFFCO organizes need based
special projects with emphasis on improving the
productivity. Community based
programmes such as women training,
medical/veterinary checkups, creating drinking
facilities are also undertaken in the interest of
farming community. Various promotional
programmes also create a path which leads the
firm towards growth.
Though there has always been some change in

the attitude of farming community towards use
of fertilizer by and large majority of farmers of
country are still steeped in old age beliefs,
traditions and social moves. To break these
inhibitions, communication an integral part of
public relations is adopted by IFFCO which is
very effective and easily comprehensible. Each
and every member of the dedicated field force
works as PR practitioner for creating a climate
of mutual understanding and goodwill.
Personalized contact with the rural consumers is

undoubtedly an important segment of public
relations. In this sphere the field staff at the
grass root level makes painstaking efforts in
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establishing a durable reputation with the
farming community.
 Strategies for forming a profitable

cooperative: In order to improve the
economic viability of cooperative societies,
IFFCO has been developing some of the adopted
societies by giving them the business of rake
handling, transportation and warehousing of
IFFCO fertilizers as these jobs involve large
finances and technical know-how.
IFFCO’s strategic imports by forming joint

ventures in the countries which are rich in raw
materials like Oman, Senegal etc.
Apart from production of fertilizers IFFCO has

diversified itself into General Insurance due to
tremendous potential available, low gestation
period and to serve the insurance needs of the
farmers.
 Public Relation strategy: Public relation

has become a channel through which support is
sought for institution, product and services. The
basic objective of any public relation
programme is to promote mutual understanding

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between an organization, to project its image
and remove all sources of misunderstanding.
Public relation is the management function
which evaluates or an organization and
executes the programme of action, to earn
public understanding and acceptance.
Concerted efforts are made to convince the

farmers that efficient and judicious use of
quality farm inputs like fertilizers, seeds, plant,
protection chemicals etc. coupled with
adaptation of latest agriculture technology is
certain to enhance the yield in their grain kitty.
In addition, if balanced dose of fertilizer is
applied, the soil fertility shall also be
maintained.
 Distribution strategy
 There is an urgent need to attend micro level

problems relating transportation, storage etc.
 Road transportation to from all plants to buffer

or sale points to be increased in volume of
demand within 250 kms.
 Road transportation from plant to society will go

up based on cost matrix.

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 Buffer stocking at strategic locations to avoid

stock out situations.
 Warehousing in the consuming point to

maximize sales.
 Minimizing handling operations by shifting

material directly from rail head to warehouses.
 Adopt cooperative societies and franchises.
 Entrusting the work of handling and

transportation and warehousing to the
cooperative societies for their financial
improvement.
 Identification and improvement of potential

areas having low consumption and low
cooperative share by evolving a suitable
strategy.
 Strategic Imports: Meeting hands with the

companies in countries (e.g. Senegal, Morocco,
Oman) having feedstock and raw material
advantages by forming Joint Ventures.

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 Remittance of bank money: Cheques

and liquid money collected should be timely
deposited in the bank to earn maximum profit
and to safeguard loss of revenues.
 Minimum warehousing costs:

Warehousing capacity should be according to
the consumption. Fertilizers should be timely
disposed off or sold so that space occupied is
lea. This increases the turnover with less
maintenance cost incurred in maintaining the
inventory and warehouse.
 Conservation of energy: As energy

contributes more than 80% of cost of production
and sharp rise in energy cost, energy
conservation receives top priority at IFFCO.
Ammonia & Urea manufacturing is highly
energy intensive and it contributes more than
80% of the total cost of production. Therefore, a
slight change in energy consumptions affects
the cost of production in a big way. Apart from
cost of production reduction in energy saves the
valuable fast depleting natural resources such

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as Naphtha & Coal. Therefore, the Energy
conservation is a major corporate objective at
IFFCO and it is a continuous process at its units.
MARKETING
MIX
The targeted markets are targeted with a
marketing mix which is unique blend of product,
pricing, distribution(place) and communication

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strategies (promotion), created to produce
mutually satisfying exchanges with a target
market.
 Product: IFFCO applies a product

differentiation strategy that makes a product
stand apart from competitive offering, to give it
a distinct and valued place in the customers
mind. It provides a product with differentiated
feature like two grades of NPK and also
biofertilizers.

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o UREA(N 46%): IFFCO’s urea is not merely a

source of 46% of nutrient nitrogen for crops but
it is an integral part of millions of farmers in
India. A bag of IFFCO’s urea is a constant source
of confidence and is a trusted companion for
Indian farmers. When farmers buy IFFCO’s urea,
they know that what they get is not just a

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product but a complete package of services,
ably supported by dedicated team of qualified
personnel’s. More importantly, they are aware
that it is own urea, produced and supplied by a
cooperatives society owned by themselves.
o NPK: As far as Indian farmers are concerned,

IFFCO’s NPK is not just a source of crucial
nutrients N, P, K for the crops , but it is an
integral part of their quest for nurturing mother
earth. The beautiful crop that result from this
care is an enough reason for the graceful bags
of IFFCO’s NPK/DAP bags to be an integral part
of the farmers family.
Three grades of NPK produced by IFFCO i.e.
-NPK-I (10:26:26)
-NPK-II (12:32:16)
-NP (20:20:0:13)
Indicating the content of N, P, K proportion, are

tailor made replenishment of the soil.
o DAP (18:46:0) : Diammonium Phosphate is

the most famous phosphatic fertilizer because

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of its high analysis and good physical
properties. The composition of pure salt of DAP
is N-21.19% and P2O5- 53.76% fertilizer grade.
o BIO-FERTILIZERS: Biofertilizers are capable

of fixing atmospheric nitrogen when suitable
crops are inoculated with them. Biofertilizers
are low cost, effective, environment friendly and
renewable source of plant nutrients to
supplement fertilizers. Integration of chemical,
organic and biological sources of
plant nutrients and their
management is necessary for
maintaining soil health for
sustainable agriculture.
The bacterial organisms present in

the biofertilizer either fix
atmospheric nitrogen or solubilize insoluble
forms of soil phosphate.
Different cultures used are :
• Rhizobium
• Azotobacter
• PSB (Phosphorus Solubilize Bacteria)

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• Azospirillium
• Acetobacter
 Price: The prices of IFFCO’s products are fixed

by Government of India which is applicable only
with in India.
(Indian rupee per tonne

w.e.f 01-04-2010)
UREA NPK DAP MOP

N-46% 10:26:26 18:46: K-60%
12:32:16 0
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MRP 5310 7897 9950 4455

8337
Local Taxes Extra, where ever applicable
Where fertilizer is imported in bulk and bagged

either at the port at inland centers, adequate
controls are needed to ensure that the quality
and weight of the bagged fertilizer conform to
the desired specifications. This applies
particularly to the weight of individual bags. The
practice of filling bags manually and weighing a
complete rail wagon or lorry load, or a tonne at
a time, often gives rise to complaints and may
even result in farmers being unwilling to accept
certain types of imported fertilizer. The sealed
bags ought to be universally recognized as a
guarantee of correct weight and quality.
Alternatively, a system must be devised by
which individual bags are weighed
and those outside the permitted tolerance limits

are either rejected or labeled and priced
accordingly. The rate of bagging at the port
should not become a new bottleneck in fertilizer
movement.

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 Place: The physical distribution adversely

affects the service as well as the cost aspect.
The existent market structure consists of
primary rural market and retail sales outlet. The
structure involves stock points in feeder terms
to service these retail outlets at the village
levels but, it becomes difficult to
maintain the required service level in the

delivery of the product at the retail level. One
way could be using company delivery vans
which can serve two purposes- it can take the
products to the customers in every nook and
corner of the market, and it also enables the
firm to establish direct contact with them
thereby facilitating sales promotion.
 Promotion: IFFCO focuses on its agriculture

extension activities to educate the farmers on
the concept of balanced fertilizer use for
sustainable agriculture through its dedicated
field team at grassroots level. It always gives
priority to all the basis aspects of rural
development by organizing educational and
promotional programmes like field days,
Farmers Meeting, cooperative conferences,
farm women trainings, soil testing campaigns,

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biofertilizer campaigns, two plot and block
demonstration for the benefit of farmers. IFFCO
conducts a large number of soil testing
campaigns. Since inception, IFFCO has
developed over 3,300 villages under Village
Adoption Scheme. It has also set up 157
Storage-cum-centers throughout the country for
storing fertilizers and agri-inputs. IFFCO’s
special campaigns, consistently proves to be an
effective mode in transfer of technology to the
farmers.
Critical Input package Kits (CIP) containing

seeds, fertilizers, agro-chemicals
are distributed free of cost to the small

farmers . There are 62 FSC’s spreads over
length and breadth of the state providing
technical guidance and making available all
vital agro-inputs under one roof especially for
small and marginal farmers.
IFFCO has 2 Mobile Soil Testing Vans for U.P.

which moves with the prefixed destination
almost 8 months in a year in different remote
villages and analyzing soil samples of the
farmers at their door step. Till date vans have

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analyzed 13458 soil samples and covered 371
villages. Based on soil tests fertilizer
recommendation reports are given to the
farmers for the different crops.
Product advertisement techniques used by

IFFCO to promote its products are :
 Radio: In a state like U.P. where a large

number of people are illiterate and circulation of
newspaper is also not sizeable, broadcasting
having a wider reach is a powerful vehicle of
communication. AIR, which covers about 90% of
population, is also utilized for popularizing its
activities and brand name.
 Television: A combination of sight and

sound can be suitable medium of
communication to familiarize the public with
functions and services of any institution.
Presently, many regional private T.V channels
have entered in the fray. Some of them are
most popular with the rural masses and brings
in immediate effects.

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 Films : Being an audio-visual medium it makes

a direct impact on the captive audiences. IFFCO
produced a few educative crop films which
remained quite effective for promoting its
product and services.
 Exhibition/Fairs : To promote the sales or

to project the services and progress or
corporate image of the institution or to build up
personalized relationship with the target
audience, exhibition/fairs plays a vital role in
communicating its values.
 Posters/Charts/Stickers/Crop Folders:
Paper posters/ rexin charts / folders depicting
structure, services of IFFCO, information on
cropping pattern, method and time of fertilizer
application etc. are being prepared at corporate
level and distributed to its field offices.
 Printed Media: IFFCO quarterly house

journal “IFFCO NEWS” and other publications
serve as organs of communication that create
positive and favorable image in totality.

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MICROLEVEL
PLANNING
 Consumption and demand in various

districts:
 Assessments of demand are worked out for

each state.
 Plant wise, state wise allocation are made every

season.
 Each state is linked with a multiple number of

plants.
 Imported fertilizer bridge between the gap in

demand and supply.
 On the basis of projected monthly requirement

of each state, estimated opening stock of each

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month and estimated monthly production from
each unit. A 6 monthly supply plan is drawn to
see that production and consequent supply
remain in consonance with estimated
consumption pattern of the state.
 District wise cropping pattern: Here

potatoes are as important as cereal crops
(which are mainly maize, wheat and rice) and
the tree-fruits from a large part of agriculture
production. Paddy and sugarcane are generally
grown under assured irrigated conditions. Other
crops like Jowar, Bajra, Arhar, Groundnut, Maize
are grown under rain fed conditions. The district
wise area, production and yield of different
crops are given in the ANNEXURE III.
 Number of sale points: In U.P. there are

about 8235 working sale points of IFFCO for
easy distribution of fertilizers and for the
comfort of farmers.

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 Channel of sale: At the state level, Apex

Cooperative Marketing Federation act as
wholesalers; marketing societies at
district/taluka level as sub-wholesalers while
PACS( Primary Agricultural Credit Societies) at
grass root level act as retailers.
 Distance of warehouses: Warehouses

should be locate near the market instead of far
flung areas so that the transportation cost
remains low and good margins are earned by
the firms.
 Recommendation based on soil tests:

The practice of application of fertilizers that are
crop and soil specific is becoming responsible
for increased farm productivity and maintaining
the soil in pink health. To ameliorate any
nutrient deficiency in soil it has become
necessary to test the soil and accordingly
recommend corrective doses.
Nutrigation is a system where crops plants are

spoon-fed for their plants food requirement as
per their time lapse need so that the highest

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yield potential is achievable. The practice is
economically sound and environmentally safe.
 Balanced use of fertilizer: Balanced

fertilizer use is a prerequisite to sustainable
agriculture. It is a practice, which help maintain
the soil health, realize full potential from
available crop varieties and protects
environment. Its importance assumes even
greater importance with the
occurrence of multiple nutrient deficiencies in

soils due to intensive agriculture practiced by
farmers. So the balanced fertilizers use is now
expected and designed to take care of
secondary and micronutrient deficiencies along
with NPK macronutrients.
 Encouraging use of compost and bio-

fertilizers: Too much fertilizer application
results in deterioration of soil health.
Biofertilizers are capable of fixing atmospheric
nitrogen when suitable crops are inoculated

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with them. Biofertilizers are low cost, effective,
environmental friendly and renewable source of
plant nutrients to supplement fertilizers.
Integration of chemical, organic and biological
sources of plant nutrients and their
management is necessary for maintaining soil
health for sustainable agriculture. The bacterial
organisms present in the biofertilizers either fix
atmospheric nitrogen or solubilise forms of soil
phosphate. Therefore in order to maintain soil
health use of biofertilizers should be
encouraged along with chemical fertilizers.
CONTINGENCY
PLANNING

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 Maintaining Buffer Stock: Due to short

falls in domestic production or variations in
farmers aggregate demand, Government of
India judges it advisable to hold a buffer stock
of 20 percent of annual consumption and
provides storage for this. However, they are
also vulnerable to price- and supply fluctuations
and to supply shortfalls arising from higher
than expected demand. Some buffer stocks are
therefore advisable.
 Shortage of Warehouses and stores:

Utilization of storage space when not used for
other purposes, for example, grain storage;
contracting warehousing out to private or public
warehousing companies to reduce capital
overheads. Adequate margins for wholesale and
retail distributors to enable them to assume the
burden as storing fertilizers outside peak times.
 Alternate Product: IFFCO NPS ( Nitrogen,

Phosphorus, Potash, Sulphur ) 20:20:0:13 which
are rich in Sulphur can be supplied as an
alternate fertilizers during the time of crisis.
Various other soluble and liquid fertilizers are
also supplied which are manufactured by other

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companies. IFFCO should also look forward for
manufacturing such fertilizers.
SOCIAL
DEVELOPMENT SCHEMES
Social security is the protection given by society to

its members against contingencies of modern life
such as sickness, Unemployment, old age,
invalidity, Industrial accidents, etc. the basis
purpose of social security is to protect people of
small means from risks which impair a person’s
ability to support himself & his family. The security
measures generally specified by LAW.
They offer some kind of cash payment to

individuals to replace at least a part of lost
income that occurs due to mishaps such as
sickness, injuries, death, etc. during periods of
economic & physical distress, the poor workers
can at least survive on compensatory payments
offered by the state or employers.
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Social security is “an attack on five giants that
affect workers- wants, disease, ignorance, squalor
& idleness. It is not a burden but a kind of wise
investment that offers good social dividends in the
long runs.”
CONTRIBUTION TO
LABOUR WELFARE
IFFCO as a most successful Cooperative
society in the country has involved certain
welfare schemes with an view to create
sense of security among the employees.
Welfare measures in IFFCO are more or less
equal for its all unit ie. Plants, head office &
marketing division.

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Employment Opportunities to
weaker sections:
IFFCO continuous to follow reservation of
posts for SCs, STs & OBSs. As on March 31st
2005 the society had 516 SC, 32 ST & OBCs
employees on its rolls. In all Recruitment
Boards & Departments Promotional
committees, representatives of SCs/STs are
invariably associated to take care of their
interest. The society has continued its
efforts to help SC/ST students by awarding
monthly scholarship to enable them to
pursue degree courses in Engineering & for
undertaking Article ship to qualifying in the
chartered accountancy. In order to
encourage them to take up Cooperative
Education, a scheme has been introduced
under which scholarship are granted to SC
and ST students pursuing PGDBM from
VAMINICOM, Pune.

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EMPLOYEMENT
FOR WOMEN
IFFCO has been giving due representations
to women in employment at various levels of
the society out of the total strength of 5752
employees as on march 31st, 2005, the
society had 169 women employees out of
which 96 were in the Executive cadre and
the remaining in Non Executive cadre. The
female executives are placed an
Engineering, Chartered Accountancy,
Medical & other fields in all the units of the
society. During the year 2004-2005, four
professionally qualified women candidates
were recruited as Management trainees in
different disciplines.

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SOCIETY WELFARE
PROGRAMMES
As IFFCO moves ahead with its expansion
initiatives, it always remembers its
responsibilities to its people, their families &
society. Over the years, the organization has
embarked on many Corporate Social
Responsibility (CSR) projects, all with the
intent of reaching out to those in need &
improving the quality of their lives. These
projects cover education, community
development, the environment and health.

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Adopting a village is of paramount
importance to IFFCO. This involves going to
the rural areas of Indian & helping villagers,
with special emphasis on agriculture &
better farm management.
IFFCO has adopted 439 villages, thus
empowering many lives.
SOME MOST
SUCCESSFUL SOCIAL
ACTIVITIES
OF IFFCO
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 Soil testing
 Farmers Training programme.
 Farmers Education Tours.
 Demonstration on balanced
fertilizer use.
 Distribution of Literature.
 Seed multiplication programme.
 Production of Biofertilizers.
FARMERS
WELFARE SCHEMES
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SANKAT HARAN BIMA YOGNA -
It benefits the farmers launched by IFFCO’s
subsidiary, IFFCO- Tokio General Insurance
Company Limited (ITGI). Here, farmers are
provided insurance against accidents with
the purchase of a 50 kilogram bag of IFFCO
fertilizers. This reaches out to member
cooperative societies. The policy has helped
over 7000 people since its inception in
September 2001. ITGI also offers customized
policies for farmers such as Barish Bima
Yogna & Janta Bima Yogna.
KISAN SEWA FUND –
A Charitable trust known as “KISAN SEWA
FUND” (KSF) has been established to
provide relief & rehabilitation to the victims
in the wake of natural calamities like flood,
earthquake, fires, landslides and droughts

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etc. & with the immediate objective of
providing succor to earthquake victims of
Gujarat.
The fund would also undertake programmes
for the welfare & critical medical attention of
needy farmers including programmes &
projects aimed at improving the quality of
life of affected farmers, IFFCO has
contributed Rs. 10 crore to KSF while its
employees have donated an amount of Rs. 1
crore.
IFFCO is exploring the
possibilities of taking the benefits of
information technology to the door steps of
the farmers by launching a portal to provide
information on agriculture & allied matter of
their interest. IFFCO has plans to set up
cyber dhabas at feasible locations so that

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farmers could know related relevant
information at the press of button.
IFFCO KISAN SEWA TRUST –
It under takes variety of activities to assist
needy farmers in getting medical assistance,
organizing Eye Camps, Health camps ,
Cancer detection Camps, providing medical
equipments, arranging for blood through
Red Cross Society & Financial assistance to
various hospitals for the treatment of
farmers. During the year, the Trust spent Rs.
60 lakh towards its activities for providing
medical relief to needy ones.
IFFDC –
IFFDC is implementing Livelihood
Improvement through Integrated Rural

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Development (LIRD) project since April 2006
in 30 villages of 5 clusters in Orissa. IFFDC
has done afforestation in 26,190 hectare
wasteland by promoting 145 village level
Primary Farm Forestry Cooperative
Societies. IFFDC has also undertaken
Integrated Watershed Development Projects
in the year under report in Madhya Pradesh
covering 12700 hectare area under National
Rural Employment Guarantee Scheme of the
State Government. Another such project has
also been undertaken in Chhattisgarh on
3000 hectare area with support from
NABARD. Work on the ongoing projects by
IFFDC in various States continued in the
current year viz. Indus Child Labor Project in
district Sagar (MP).
IFFCO FOUNDATION –
IFFCO foundation has been promoted as the
think tank of the organization. Its objectives

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is to focus on strengthening village level
cooperatives in harmony with the Law &
culture of the country. An international
conference
was held in March 2008 on Science – based
Agricultural Transformation towards
Alleviation of Hunger and Poverty in SAARC
Countries in New Delhi. The conference
proved to be highly successful & several
action plans were suggested. Another
conference on India- Africa cooperation for
Sustainable Food Security was held in
November 2008.

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SOME
SPECIAL PROJECTS
IFFCO has taken up these divers projects to
help farmers in need. These include
watershed management , agricultural
development and micro enterprises where
self – help groups are offered assistance.
Aiding farmers for better
connectivity & hence enhancing their

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efficiency , IFFCO has provided computers &
internet accessibility to them. IFFCO uses its
12 storage- cum- community centers for
helping people came together & share their
experiences.
The environment is a major concern
with IFFCO. Its units & townships comprise
beautiful landscapes, surrounded by trees.
IFFCO is also committed to improving the
safety, health & environment of its
manufacturing units, in line with
international norms. The Kalol, Phulpur,
Aonla & Kandla units have been awarded the
ISO- 14001 certificate for Environment
Management System.
MAJOR PROJECTS
IN HAND
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• IFFCO CHHATTISGARH POWER LIMITED.
(ICPL)
• JORDAN INDIA FERTILIZER COMPANY.
(JIFCO)
• LEGEND INTERNATIONAL HOLDINGS INC.
AUSTRALIA
• AMERICAS PETROGAS INC., CANADA
• IFFCO KISAN SEZ (IKSEZ)

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CONCLUSIO
N
Since the period of its existence IFFCO has

made an effort to intervene at different
stages of a farmer and his farming cycle
which include soil, water, plant and animals
as well as human health, post-harvest
technology, animal husbandry practices, etc.
It is time now to think beyond the legacy of
green revolution and transcend the process
to an evergreen revolution. This will not be
possible unless the benefit of technology is
transferred to masses across the
geographical expanse, crops and sections of
farmers.
In India, the focus of agriculture has changed

from subsistence pattern to generation of
surplus in the production of agricultural
commodities like food grains, sugar, cotton,
oilseeds, fruits and vegetables etc. For good
quality and high yield balanced use of
fertilizer is required. For this IFFCO makes an
effort in the production of fertilizer. After
production the fertilizer has to reach the
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farmer whenever it is required by them.
Therefore, a good and effective marketing
strategy is required by the firm that will aim
at providing remunerative prices to farmers
for their crop produce and incremental
incomes to cooperative societies.
SUGGESSTIONS
 Small farmers constituting major portions are

highly brand loyal and thus if a company with
strong brand equity introduces a range of
agri- inputs like fertilizers, agrichemical, farm
equipment etc. and promote them
thoroughly, there is bright chance that the
purchase and usage will increase. As the first
mover, the company will enjoy an extended
customer base, gain market share and
maximize revenue.
 Outlets/Societies should be provided with
store plans, partly “free” capital and partly
soft loans to build their own stores.

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 Careful planning of location and size of

regional stores.
 Adequate margins for wholesale and retail
distributors to enable them to reduce capital
overheads.
 Government role should be as a facilitator
rather than as an administrator.
 Our today’s fertilizer marketing approach is
to increase crop yield. However there is an
urgent need to shift the focus on farmer’s
bottom line. Use of fertilizers and farming as
business and not only as a last option to earn
livelihood.
 Half of the fertilizers is used during crop
growth period and therefore the high tech
tools like GIS (Geographical information
system) and GPS (Geographical positioning
system) may help to plan better marketing
strategy to sell fertilizers in standing crops.
LIMITATIO
NS

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 Agriculture and fertilizer is viewed from the

angle of available statistics and the desired
conclusions are derived. The statistics is
collected and compiled physically by ground
level staff of government. It travels a long
chain to complete its readiness for users.
There is very high probability of accuracy of
data getting with human error factor which is
quite natural.
 The base on which the company forms its

strategies may not be true. The agribusiness
professionals in other parts of the world have
started adopting high tech tools like GIS and
GPS for mapping the area, production,
nutritional status and crop conditions. We
also need to think in this direction.

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QUESTIO
NNAIRE
1. Name ……………………………………
2. Gender –
MALE
FEMALE
3. ADDRESS …………………………………..
4. ANY OTHER ………………………
5. AGE :
15-20
21-35
36-45
46-55
55
AND ABOVE
6.About IFFCO what do you like the

most?
BRAND NAME
EASY AVAILABILITY
PACKAGING
PRICE
QUALITY
ANY OTHER (PLEASE SPECIFY)
7. Have you seen any advertisement

of ANY IFFCO fertilizer?
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Yes
No
8. Advertisement of which cold drinks

do you remembers the most?
10. What attracted you in the

advertisement?
CREATIVITY
BRAND AMBASSADOR
IDEA OF DELIVIRING THE MESSAGE
FREQUENTLY OF ADD
LOGICAL REASON
11. Have you decided to purchase any

fertilizer after watching the
advertisement?
YES
NO

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BIBLIOGRA
PHY
 Annual report published by IFFCO.
 Indian Journal of Fertilizers.
 The project Reports Prepared by
the students.
 The Official Data provided by the
Industrial Guide.
 www.iffco.nic.in
 www.fert.nic.in
 www.thetribuneonline.com

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Sampling size : 50
Sampling Area : Unnao
Sampling technique
Random sampling

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Data interpretation
Q1. About IFFCO what do you like the

most?
BRAND NAME 11
EASY AVAILABILITY 12
PACKAGING 9
PRICE 8
QUALITY 10
CONTENT NO. OF PEOPLES PERCETNTAGE

BRAND NAME 11 22%
EASY 12 24%
AVAILABILITY
PACKAGING 9 18%
PRICE 8 16%
QUALITY 10 20%

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DATA ANALYSIS
SURVEY PERSONS
AGE:
Age (Years) No %
20-30 15 30%
30-40 13 26%
40-50 14 28%
>50 8 16%
Total 50 100.00
12.50% 19.17%
20-30
30-40
28.33% 40-50
40.00% >50
Description:
 Most of the respondents (40%) are in the age group of 30-

40 years.
 Least no. of respondents are in the age group of more
than 50 years.

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Sex:
Male No %
MALE 45 90%
FEMALE 5 10%
Total 50 100.00
21.70%
Male
Female
78.30%
Description:
 Majority of the respondents are male (about 78%).

 About 22% are female No. of female investors are quite
less than that of male.

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Profession:
Profession No %
Govt. Service 23 19.17
Private Service 45 37.50
Self Employed 52 43.33
Total 120 100.00
19.17%
Govt. Service
43.33%
Private Service
37.50% Self Employed
Description:
 Majority of the respondents are self employed i.e. 43% of

the sample size.
 Govt. servant constitute only about 19% lesser than
private service holder (about 37%).
 More of the person are from self employed which
determine from the concern report.

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Q.1 Which Income bracket best describe your annual
income?
Income (Rs. in No %
lakh)
Up to One 08 7
1 to 2.5 36 30
2.5 to 5 54 45
>5 22 18
Total 120 100.00
18.00% 7.00% Up to One lakh

30.00% One lakh to 2.5
2.5 to 5 lakh
45.00% >5 lakh
Description:
 Majority of the investors comes under the income 2.5 to 5

lakh.
 About 18% respondents come under the income more
than 5 lakh.
 Least %age (7%) respondents come under the income up
to 1 lakh.

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Q.2 What % of your income do you invest?
Investment (in %) Number %
<15 32 27
15-30 41 34
30-50 29 24
>50 18 15
Total 120 100.00
15.00% 27.00% <15

15 to 30
24.00% 30 to 50
>50
34.00%
Description:
 34% of the respondents invest 15 to 30% of their income

where as 27% respondent invest less than 15% of their
income.
 24% invest 30-50% income of their income.
 Only 15% respondents invest greater than half of their
total income.

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Q.3 How much of total investment do you invest in mutual
fund?
Investment (in %) Number %
<10 43 36
10-20 37 31
20-40 28 23
>40 12 10
Total 120 100.00
10.00%
<10
36.00%
23.00% 10 to 20
20 to 40
>40
31.00%
Description:
 36% of the respondents invest less than 10% in mutual

fund out of their total investment compare to 31% who
invest their 10-20% of their total investment.
 23% respondents invest 20-40% of their total investment
where as respondent greater than 40% invest of their
total investment in mutual fund.

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Q.4 What is the Primary objective of your investment?
Objectives Number %
Tax benefits 38 32
Capital appreciation 42 34
Dividend 09 08
Liquidity 31 26
Total 120 100.00
Tax Benefit
26.00% 32.00% Capital

Appreciation
Divident
8.00%
34.00%
Liquidity
Description:
 About 34% of the respondent’s primary objective is

capital appreciation. Tax benefit is the second objective of
the respondent (31%).
 Liquidity as a primary objective constitute only 26%. 8%
invest for the objective of dividend.

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Q.5 Which of the following types of Mutual Fund do you
invest in?
Types of Mutual Number %

Fund
Open Ended 47 39
Close Ended 12 10
Both 61 51
Total 120 100.00
39.00% Open Ended

Close Ended
51.00%
Both
10.00%
Description:
 Open ended schemes constitute 39% of the total

respondents. Where as only 10% constitute close ended
schemes.
 Both open ended and close ended constitute about half of
the respondent (51%).

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Q.6 What is your preference of investment among the following
schemes?
Schemes Number %
Equity 49 41
Debt 23 19
Sectoral 35 29
Others 13 11
Total 120 100.00
11.00% Equity
41.00%
Debt
29.00% Sectoral
Others
19.00%
Description:
 Equity schemes are the most preferred (41%), then

sectoral schemes (29%).
 Debt schemes constitute 19% and others constitute only
11%.

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Q.7 Which of the following AMC’S (Mutual Fund) did you
make maximum investment in?
AMC’S (Mutual Number %

Fund)
Reliance 29 24
ICICI Prudential 07 06
LIC 43 36
Karvy 25 21
Others 16 13
Total 120 100.00
Reliance
13.00% 24.00%
ICICI
21.00%
6.00% LIC
Karvy
36.00%
Others
Description:
 Reliance mutual fund is widely expected (second

position0 just sfter LIC which constitute 36% of the
respondents. Karvy on 3rd (21%).
 ICICI Prudential is least popular (only6%).
 Others mutual funds constitute 13% of the respondents.

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Q.8 Do you think that the performance of AMC effect the
criteria of Investment?
Opinion Number %
Yes 97 80
No 14 12
Can’t Say 09 08
Total 120 100.00
8.00%
12.00% Yes
No
Can's Say
80.00%
Description:
 Maximum of the respondents (80%) think that the

performance of AMC effect the criteria of investment
whereas 12% don’t believe so.
 8% are unable to say anything.

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Q.9 Are you satisfy with the return or your present
investment?
Opinion Number %
Highly Satisfied 11 09
Satisfied 57 47
Unsatisfied 38 32
Highly Unsatisfied 14 12
Total 120 100.00
Highly Satisfied
12.00% 9.00% Satisfied
32.00% Un Satisfied
47.00%
Highly Un
Satisfied
Description:
 About half of the respondents (47%) are satisfied with

return of their present investment. On the other hand
32% are unsatisfied also.
 9% of the respondents are highly satisfied compare to
12% who are highly unsatisfied.

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Q.10 Do you think that mandatory of permanent account
number (PAN) effect the investment?
Opinion Number %
Yes 93 77
No 21 18
Can’t Say 06 05
Total 120 100.00
5.00%
18.00%
Yes
No
Can't Say
77.00%
Description:
 77% of the respondents think that mandatory PAN effect
the investment. On the other hand, 18% don’t believe so.
 5% are unable to say anything.

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SUGGESSION /RECOMENDATION
ON THE BASIS OF ANALYSIS
 Special care should be given to advertising, as
there was lack of awareness among the people.
 The company should attract the market more
vigorously and go in for trapping more and new
customers.
 The company should provide special schemes for
customers with more information to motivate them.
 The company should also try their best to make the
customer aware of the technical aspect of the schemes
so that the customers do not feel that they are ignorant of
any fact.
 More advertisement at local level is required.
 Since most of the people are unaware about the
share khan the broking company. The company can
make them aware by educating them about it with the
help of road shows and canopies.

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Lucknow

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IFF

Several people have, either directly or indirectly, contributed to

I express my deep sense of gratitude and indebtedness to Mr.

I would like to thank all my colleagues and friends who

I will be failing in my duty if I do not thank to my parents and

Aryakul college of management, 1

To make marketing successful, every firm formulates marketing

Aryakul college of management, 2

Aryakul college of management, 3

Srl No. Topic Page no.

Aryakul college of management, 4

Aryakul college of management, 5

 To keep pace with IFFCO’s mission, IFFCO shall remain the

 To maintain its brand loyalty among the farmers.

 Objective of “Marketing strategy of IFFCO”.

 To provide quality product and services by following bets

 Making fertilizers available to farmers when and wherever

 To strengthen cooperatives in order to enable them to

 Studying the performance of fertilizer industry by means of

 Studying the previous performance of IFFCO by means of

Aryakul college of management, 6

 Studying the current environment, trends, problems,

 After collecting the data it was analyzed and the

 Summary of the project

IFFCO is engaged in the production of urea at Kalol (Gujarat),

A biofertilizer was established at CORDET, Phulpur in 1996-97

In 1993, IFFCO had drawn up a major expansion programme of

With the successful realization of all the objectives of Vision

service of farmer’s community and various other activities like

Aryakul college of management, 9

IFFCO’s missions is “To enable Indian farmers to prosper

To augment the incremental incomes of framers by helping

In order to maintain the sustained pace of remarkable

Aryakul college of management, 10

achieved under the “MISSION 2005”, the society is in the

 Attaining an annual turnover of Rs. 15, 000 crore by 2010.

 Installation of ammonia and urea plants including acquisition

 Backward integration to meet feed stock requirement such

 Production and Marketing of micro-nutrients , seeds, bio-

 Value addition to agri-products and marketing .

 Banking in financial services.

 Information Technology and I.T enables services .

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In pursuit of its growth and development, IFFCO had

IFFCO has now visualized a comprehensive plan titled ‘Vision-

 Production of fertilizers through expansion of existing units.

 Setting up of fertilizer production facilities in India and

 Diversification into other Profitable Sectors.

 Strengthening its raw material sourcing through Strategic

 Strategic Alliances through IFFCO Consortium.

The salient features of the ‘Vision-2015’ are

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 Maximizing the synergies o f the core business through

 To Stand as a Global Leader in Fertilizers production to cater

 Enhancing Presence in International Markets through

 Diversification into other profitable businesses to maximize

 Leveraging State of the Art Technologies and Global best

 Promoting integrated Nutrient management to improve

 To bring in Sustainability and Strategies to prevent Climate

 To help the Cooperative Societies become economically

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 Achieve Fertilizers Production/ Marketing target of 15 million

To achieve the mission, IFFCO as a cooperative society,