A Report On INDIAN FARMER FERTILIZER CO-OPERATIVE LIMITED

Submitted to: SOM-LALIT INSTITUTE OF BUSINESS ADMINISTRATION Towards Partial Fulfillment of S.Y.B.B.A By Dave.Manan.L Roll no: 19, Div: c

CERTIFICATE

THIS IS TO CERTIFY THAT A REPORT ON INDIA FARMER FERTILIZER CO-OPERATIVE LIMITED HAS BEEN SUBMITTED BY MR. DAVE.MANAN.L, ROLL NO:19 OF C DIVISION OF S.Y.B.B.A, TO SOM-LALIT INSTITUTE OF BUSINESS ADMINISTRATION AFFLIATED TO THE GUJARAT UNIVERSITY IN PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR COMPLETION OF PRACTICAL SUDIES AT THE S.Y.B.B.A PROGRAMME.

EXTERNAL EVALUATOR Date:-__________

PROF-IN-CHARGE (MR.JAYRAJ.PANDYA)

ACKNOWLEDGEMENT

I am highly thankful to INDIAN FARMER FETILIZER CO-OP. LTD., situated at KALOL, IKAI and to Mr.Mahendra chavda, who is mechanical engineer and gave us complete information about the company. Mr. N.C.Patel and Mr. B.A.Shah who have arranged this programme for us to visit their industry which was a good learning experience. Mr. S.K.chaudry accompanied us around the plants and provided necessary information about the production process. I take this opportunity to thank our Director Prof. R.H.Vyas for allowing us to visit the plant and Prof.-in-charge Mr. Jayraj Pandya for accompany us to the visit and his guidance in completing this report. Date: __________ Mr. Dave.Manan.L. Roll no.19, Div: C S.Y.B.B.A

EXECUTIVE SUMMARY
Indian Farmer Fertilizers Co-operative Limited (IFFCO) is one of the largest fertilizer manufacturing co-operative in Asia, owned by the farmers. IFFCO produces nearly 2.6 million tones of fertilizer every year. It has five plants namely Kalol, Kandla, Phulphur, Aonla and Paradeep. Kandla plant produces NPk and DAP complex fertilizer while other plant mainly produce Ammonia and Urea. The success of the IFFCO depends upon its employees. To make the employees more resourceful it is desirable that they know more about IFFCO and its commitments. Keeping this in view, the booklet named KNOW YOUR ORGANIZATION has been prepared. It gives in brief the products manufactured at each unit, activities carried out by the marketing. IFFCOs contribution in the growth of co-operative movement and fertilizer industry in particularly increased. Efforts have also been made to include in brief the data pertaining to other facilities available at various plants, so that a comprehensive document is available for all to know the operation of the plants as well as services offered to the farmers. This report gives the complete information about the Human Resource management and Marketing Management done by the IFFCO.

TABLE OF CONTENT NO.OF CHAPTER CH.1 CH.2 CH.3 NAME OF CHAPTER COMPANY PROFILE PRODUCTION DEPARTMENT H.R.DEPARTMENT
3.1 H.R.Planning 3.2 Recruitment & selection 3.3 Induction 3.4 Performance Appraisal 3.5 Training & Development 3.6 Promotion & Transfer 3.7 Incentives & Welfare Programme 3.8 Fringe Benefit 3.9 Health & Safety Measures 3.10 Executive Remuneration

PAGE NO.

CH.4 CH.5

MARKETING DEPARTMENT FINANCE DEPARTMENT

CHAPTER 1 COMPANY PROFILE

The Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered as a multi unit co-operative society, under the co-operative societies Act on Nov, 3, 1967. IFFCO, a pioneer in the co-operative sector, has been making a steady progress in the realms of fertilizer production, capacity utilization and rendering services to the farming community. IFFCO has the next largest manpower available after than china in cooperative sector. Initially the staff at Kalol was 950 workers but now it has reduce to 710 workers because the workers were sent to Aonla and Paradeep. IFFCO is the federation of about 37000 co-operative societies from national to primary level spread over approx. seventeen states and three union territories. At the beginning the Government has invested 85% in the IFFCO but due to the DE-INVESTMENT Policy IFFCO unit has paid back to the Govt. and now there is no interference of Govt. in it. IFFCO is going to invest around 800 million dollars for phosphoric acid in Egypt and Kachchh and also going to invest 200 million dollars for Energy saving project in existing units. IFFCO has achieved awards which are as follows: 1. HEWITT ASSOCIATION & C.N.B.C TELEVISION AWARDS FOR:

BEST MANAGED WORK FORCE

2. INSTITUTIONAL GARDEN AWARD FOR: PLANT IN GARDEN AND GARDEN IN PLANTS

IFFCO also provide the various safety measures to their workers and they treat safety as their first prayer and also given the motto for safety. i.e. SAFETY IS FIRST PRAYER IN INDUSTRY IFFCO has Authorized Capital around 1000 crores. Its Paid-up Capital is 428.59 crores. The total investment for the plant before some year is around 1150 crores. The Net Worth as on 31/3/05 was 5401.15 crores. Its turnover is around 7224 crores.

PRODUCTION DEPARTMENT
TYPES OF PRODUCT PRODUCTION PROCESS

TYPES OF PRODUCT
IFFCO unit at Kalol produces following products. 1. 2. 3. 4. AMMONIA UREA DRY ICE LIQUID CO2

Production capacity of these four products is as follows: Product AMMONIA TPD TPA 110 3,63,000 0 UREA 165 5,44,500 0 DRY ICE 06* LIQUID CO2 12* 3860

PRODUCTION PROCESS
Following are the production process of various product produce by IFFCO. 1. AMMONIA The plant is designed to produce 1100 tonnes of ammonia per day based on MW Kellogg steam reforming process. Original name plant capacity of the Plant was 910 tpa, which is upgraded to 1100 tpa in the year 1997 after Kalol expansion. Naphtha as well as natural gas is used as feedstock. Naphtha is prereformed in Pre reformer mainly to methane, hydrogen and CO2 and is further reformed in Primary reformer after mixing with natural gas. Natural gas is purified in the Desulphuriser and then mixed with steam and partially reformed in Primary reformer. The primary reformer is supplied with associated gas and naphtha as process fuel. A mixture of gases, coming out from Primary Reformer, enters Secondary Reformer where stoichiometric quantity of air is introduced. The gases leaving the Secondary Reformer contain nitrogen, hydrogen, carbon monoxide and carbon dioxide. These gases are passed through Shift Converters where most of the carbon monoxide gets converted to carbon dioxide. This converted gas is purified in an Absorber where carbon dioxide is absorbed in an aqueous MDEA (methyl diethyl amine) solution. The MDEA (methyl diethyl amine) solution is regenerated in Strippers where carbon dioxide is stripped off and sent to urea plant. The gases are again purified in the Methanator where the remaining small quantities of carbon oxides are converted to methane. The gas after purification is a mixture of mainly nitrogen and hydrogen in 1:3 proportions. It is compressed and sent to Ammonia Synthesis Converter along with recycle gases. Synthesis Converter is a single piece reactor. In Synthesis Converter nitrogen and hydrogen combine to form ammonia. The gases from the Synthesis Converter are cooled and recycled back to the compressor. The discharge stream of the compressor is passed through a train of coolers and chillers where ammonia is condensed over chillers and the unconverted

10

gases from the Separator are sent to the Synthesis Converter which is of 3.19 m dia, 27.4 m high and weighs 255 t. A small stream of gases being purged from the synthesis loop is sent to the Purge Gas Recovery Plant where hydrogen is recovered by cryogenic process. This hydrogen is recycled to the synthesis loop. The separated liquid ammonia is purified by further flashing and it is then sent to Urea plant or to an Atmospheric storage tank, having 10,000 or 5,000 tonnes capacity. 2. UREA The 1200 tonnes per day Urea plant based on Stamicarbon Stripping Process, engineered by Humphreys & Glassgow, UK. was commissioned in January 1975. Urea plant was revamped to uprate its capacity to 1650 tpd in the year 1997. The main raw materials required for urea process namely, ammonia and carbon dioxide, are obtained from the adjacent ammonia plant. Carbon dioxide first enters a Stripper in which it counter currently contacts the liquid product from the Autoclave. The liquid product from the bottom of the Stripper which is mainly urea solution passes to the recovery section. Gases from the top of the Stripper enter Carbamate Condenser where ammonia and carbamate solution are also introduced The ammonium carbamate solution, uncondensed carbon dioxide, ammonia and water vapours are introduced into the Autoclave bottom. In the Autoclave, conversion of ammonium carbamate in to urea is achieved at 150 kg/cm2 pressure. Product from Stripper is let down to the Rectifying Column for recovery of small amount of unconverted ammonium carbamate. An additional LP condenser is installed in the plant for uprated capacity. To unload the evaporators, Pre-evaporator is installed down stream of the Flash tank to concentrate urea solution to 82.6 %. The product urea solution is further concentrated in two Evaporators installed in series to produce molten urea which is pumped to the top of a Prill Tower having a total height of 71 meters, from where it is passed into a rotation Prill Bucket. Prills, formed in the Prill Tower, are collected at the base by Prill Tower
11

Scrapper which transfers urea to a conveyor to Prill Cooling System. In Fluidised Bed Prill Cooling System urea is fluidised on perforated plate, heat of hot prills is taken away by air and cooled to 55 deg C (max.). From here it is conveyed to Bagging Plant or to Urea Silo. 3. DRY ICE / LIQUID CO2 IFFCO Kalol unit has 6t/d dry-ice plant designed by Borsig, Germany. Liquid CO2 can be produced in dry-ice plant by liquifying gaseous CO2 received from ammonia/urea plants. Plant has capacity to liquify 12 t/d CO2. The saturated CO2 gas from ammonia plant at about 0.16 bars and 60 deg C is cooled by washing in a direct contact cooler to condense the water vapours and washing off odour-forming organic impurities etc. The CO2 gas after washing in CO2 contact cooler is compressed dry cylinder compresor from 0.06 bar g to 40 bar g. Alternatively provision is made to supply HP CO2 gas from final discharge of urea plant CO2 compresor at a pressure of 153 kg/cm2g and 120 deg C. HP CO2 gas is let down to a pressure of 41 kg/cm2g and temperature of 35 deg C. The CO2 gas from compressor discharge is saturated at 40 bar g and 40 deg C. Water vapour is removed from gas by passing the CO2 gas over an adsorbent bed of silica gel/amumina balls to dew point of -50 deg C. The trace quantities of odour forming organic materials from the dry CO2 gas are removed by passing it through the activated charcoal bed. The pure and dry CO2 gas is cooled and condensed by evaporating ammonia on the shell side of condenser. CO2 at 40 bar g and 0 deg C flows down to CO2 liquid storage tanks. The non condensable such as H2, N2 and CH4 are vented to atmosphere. There is one 40 bar g CO2 liquid storage tank of 4.5 t capacity and two no. 22 bar g storage tank each of 17.5 t capacity. For sale of liquid CO2, liquid is letdown from 40 bar g tank to 22 bar g tank. Dry-ice is a solid form of CO2 liquid. Liquid CO2 at 0 deg C is flashed into
12

the top of snow tower, through expansion valve. CO2 liquid is cooled in the U tube of revert gas heat exchanger by flashed CO2 from snow tower to increase the "yield of snow" per pass. The snow formed inside the snow tower drops into the pressing chamber. piston presses the snow in the pressing chamber to make cylindrical dry-ice block of about 185 mm diameter and length 200 to 375 mm. the dry-ice blocks weigh about 8 to 15 kg depending on the length of the blocks. The blocks are wrapped in craft paper and stored in an insulated storage to minimize the loss by evaporation during storage. CO2 gas formed in the snow tower passes to the shell of the revert gas exchanger and recycled for producing liquid CO2.

13

H. R. DEPARTMENT

14

3.1

H. R. Planning:

Iffco, kalol unit does not employee people by its own but from Iffcos head office at Delhi. It is also done from the internet recruitment basis. They employees people through untralized process on permanent basis. The head officer if says give promotion, transfer up gradate to the employee of all the four units. The Iffco was total rationalized man power of more than 9000 workers and at kalol unit it was around 3510 workers. The person working in the units are well trained in their respective field. The expert knowledge of technical personnel working at kalol is being utilized for own missioning if fertilizer plant in India or abroad. To train persons, the unit gives training under provides rigorous class room and on the job training for new entrants to met man power needs of the plant fertilizer plant in India and aboard and their own personal for training in different field at training under at kalol. The training center at kalol is well equipped with all training facilities.

15

3.2 Recruitment and selection: From the external sources they have recruited 11 engineers and 3 finance trainer. As for the recruitment they give advertise on internet and the person gives their bio data on it. After that they invite prospective candidate for written test who are eligible. In the written test they ask general question related to the general knowledge etc. After this a merit list is taken out from the test and the good securing person in called for interview. They also do the apprentice recruitment in which they give training for one year when it is over they are not taken into the organization.

16

3.3 Induction: In Iffco the engineers as a expertise person is selected for orientation or induction they give one weak orientation about marketing strategy, service rule, factory act and other act. They major field of information is that they give complete information about the Iffco. After giving the necessary information about the relative field they give training familiar with recruitment about silent feature, safety etc. They give lectures in the morning and in the afternoon they are taken to the production department and given complete information about machineries for 2 hours. After the training duration over then they are called for interview. If the candidate is not technically inducted than they are sent for apprentice.

17

3.4 Performance appraisal: In Iffco at kalol they are using two types of form: 1. Non-supervisory. 2. Supervisory and manager. 1) Non-supervisory: In non supervisory performance appraisal they give various scheme, punctuality, initiative to do work, inter personal relation ship, level of absenteeism. If the person is absent then the person will lose on yard for promotion. 2) Supervisory and manager: The performance done by the supervisory are done on departmental at head office. Better ranking or extra ordinary or poor cases are reported to managing director. The managing director gives the various decisions about their performance.

18

3.5 Training and development: In Iffco various training and development they gives various class rooms and on the job training for the new entrance. They appoint various expertises for the training. They fix various training program for general man in order to improve communication skills. They also give skilled development program to the workers.

19

3.6 Promotion and transfer: In Iffco they give promotion on the performance in last 3 years. They give promotion every four and half years. If the person founds any stability or anything new which is affected in saving money then he is promoted. Only 5% of the person are promoted and hardly promote 4 to 5 persons.

20

3.7 Incentives and welfare program: Iffco gives a monthly salary to their employees. As the incentives are based on the extra ordinary work done by the employees. The wage for the workers is based on per shift. They are given daily wages and it is around Rs 125 for skilled workers, Rs 110 for semi skilled workers and Rs 95 for unskilled workers i.e. per shift. They provide various welfare activity that is they provide walnuts 70 the every worker as they treat safety as their first prayer.

21

3.8 Fringed benefits: In Iffco the fringed benefit are given to the employer which are as follows: 1. 2. 3. 4. 5. They give clubs facilities. They provide town ship. They provide house building loan. They give loans on purchase of vehicles. It is on the grade base. They give medical expenses not only of their workers but also their family members. 6. They give insurance scheme such as group insurance scheme and accident group insurance scheme. 7. If any accident takes place they give compensation of his leave. 8. If any major accident or operation of employees or his family member contributes 100% caner.

22

3.9 Health and safety measures: Iffco are educating the farmers. They give safety training at regular interview. They give the safety training every two years. They give personal protection measures every 2 years. They are also giving sankat Haran vima yojna policy. They give complete plant safety program and give case study of accident. One of the achievements made by the Iffco is that they have not met any accidents since 1030 days.

23

3.10 Executive remuneration: The Iffco unit at kalol gives minimum remuneration of Rs. 50, 000 to 55, 000 to their top level executive. They give various facilities to their executive. The executive remuneration is fixed by the board of directors etc.

24

4. MARKETING DEPARTMENT

25

Types of products: Iffco unit at kalol produces following products: 1. 2. 3. 4. Ammonia. Urea. Dry ice. Liquid Co2.

Target customers: They sale their total production of the various products to the co-operative societies which are their own share holders. There is no agent i.e. seller or wholesaler between them 50 to 60% are sold in Gujarat and Maharashtra according to the government rule. Price: The price of the various products is decided by the government. There is no difference in price all over in India i.e. the price is same all over in India. Major competition: The major competition of the Iffco is the GNFC, REF, GRIFFCO, and GSFC.

26

5. Finance department.

27

Iffco Company is one of the largest co-operative societies in Asia. The members of the Iffco i.e. their share holders are the other co-operative society. Approxily 37000 co-operative societies has been registered as a share holders of Iffco It has following capital invested during the establishment and current year are as follows: Authorized capital Paid up Share holders Iffco turn over Gross profit Net profit Net worth Accumulated reserve 1000 cr. 428.59 cr. 37381cr 7224 cr. 471 cr. 320 cr. 5401.15 cr. 2879.84 cr.

By purchasing oswal chemical and fertilizer of Para deep on 16 th September 2005, worth Rs. 2100.00 cr. This has changes the whole scenario. At the beginning of Iffco the government has invested around 85%. But as a de-investment policy came into account the Iffco repaid the entire amount to the government. At present there is not a single rupee of government in Iffco. In the year 2004-05 the turn over of Iffco has rise up to 12% The initial cost of Iffco at kalol unit was around 71.23 cr. And the expansion cost in the year 1998 was around 149.70 cr.

28