Summer internship project

On

Supply Chain & Marketing System Of

IFFCO
Executed at

IFFCO Aonla Unit Bareilly (U.P.)

Under the guidance of Submitted By
Mr. Ravi Jaiswal pawan Kr. Kushawaha
(Dy. Manager TPT) M.B.A. (E-Business)
Mr. Avanish Saxena Sem. III
(Asst. Manager TPT) Roll No. 901113033
 OBJECTIVE OF STUDY
The study was conducted in IFFCO Aonla, Bareilly in keeping the following
objectives in view:

Provide the information of distribution channel of products at different parts

of country.

To know the Supply Chain System of IFFCO.

To know Marketing strategies of IFFCO and various promotional activities.

To know various scheme for farmers provided by IFFCO through FSC

“farmer service centre”.

 WAREHOUSING
The warehouses for storage of fertilizer are provided by Central Warehousing
Corporation (CWC), State Warehousing Corporation (SWC), cooperatives and
private agencies. The total storage capacity available with CWC, SWC and the
cooperatives during the year 1996-97 was about 32 million ton
FUTURE STRATGIES OF WAREHOUSING
IFFCO’S sales volume is going up and it is expected to be 120 lakh tons in
2010-11. Therefore, warehousing planning assumes great importance. Micro-
level exercises are, therefore, being carried out, State wise, district wise, and
rake point-wise.
Feeder Warehouses
Buffer Warehousing
TYPES OF TRANSPORT USED BY IFFCO
The main objective of transportation is to make right type of fertilizer available
at right place at right time and in right quantities for this IFFCO use three types
of transport for dispatching their material from production unit to final
destination. The three types of transport used by IFFCO for dispatching their
material are as follows.

1. By Road
2. By Rail
3. Inland and Coastal Water Transport
 DISTRIBUTION CHANNELS
As a matter of philosophy, principle and policy, IFFCO has provided in its
Bye-laws channelizing its entire production through the cooperative system.
However, in exceptional circumstances, other institutional agencies could
also be involved. IFFCO is, however, not proposing to route its production
through private trade.

Primary Agricultural Credit Societies (PACS).

National Cooperative Development Corporation (NCDC)
IFFCO Farmers Service Centers (FSCs)
State level Distribution Channel
 PROMOTION AND EXTENSION ACTIVITES
In order to popularize its products and to create a ready market for them before
its plants went in to production, IFFCO took upon itself the responsibility of
undertaking systematic promotional and educational programmes, through a
well conceived approach. Some of the programmes are as following.

Seeding Programme
Farmer’s Educational Programmes
Two-plot Demonstrations
Block Demonstrations
Critical Input Package Demonstration
Field Programmes
Soil Testing
Seed Multiplication
Village Adoption
PROMOTIONAL AND PUBLICITY ACTIVITES
Fertilizer promotion is one of the important components in fertilizer
marketing. The objective is to create awareness about fertilizers and
provide technical information on improved agricultural practices and
fertilizer use so as to increase productivity and fertilizer use efficiency. Mass
media approach is followed in fertilizer promotion.

AIR, Doordarshan and Press

Fairs and Exhibitions
Technical Literature
Hoardings and Roadside Sign Boards
Crop Films
 Quality Approach

Continue to provide quality fertilizers, marketing support to cooperatives

and extension services to farmers and bring about quality improvements.

Educate farmers in maintaining soil health and to enhance crop

productivity through balanced and efficient fertilizer use.

Bring about continuous improvements in all marketing operations.

Maintain and develop “Organization Culture” based on team work,

harmonious relationships and collective decision-making.

Upgrade the human resources with the latest technical and managerial
skills through regular training.
 Pricing Policy

Urea price is statutorily controlled by the Govt. of India. For the statutorily
controlled commodity, farm gate price exclusive of local taxes and
distribution margin etc., are fixed uniformly for all the States and Union
Territories by the Govt. of India.
In case of phosphatic and potashic fertilizers, manufacturers/suppliers are
free to fix farm gate prices and terms of sale.
 On account of the reimbursement of ad-hoc subsidy on these fertilizers,
Govt. of India continues to regulate their farm gate prices and the distribution
margins. From 1st April, 1996, GOI has been fixing uniform prices (MRP) all
over the country.
 Corporate Social Responsibility
(CSR)
COOPERATIVE RURAL DEVELOPMENT TRUST

IFFCO promoted Cooperative Rural Development Trust (CORDET) in the year

1979 in order to provide education and training to farmers on various aspects of
crop production, horticulture, animal husbandry and farm machinery etc. The
Trust is operating at two places, Phulpur (Uttar Pradesh) and Kalol (Gujarat).

RESEARCH AND DEVELOPMENT

The Agricultural Universities and research institution has played a
commendable role in developing location specific crop production technology
and its dissemination at the farmer’s level.
 Suggestions & Recommendations

With its roots in cooperative, IFFCO’s production is supply driven and not
demand driven. Therefore, the warehouses have to be prepared for unexpected
supply of fertilizers in terms of micro-planning for the storage and the
distribution.
IFFCO wanted a communication solution which is cost effective and
completely automated. Since the warehouses do not have any IT system in place,
it also needed a solution which uses mobile channel for delivering the
information.

IFFCO is already covering almost the entire country with respect to sales and
no new State is likely to be added to its marketing areas. However, some
additional Area Offices need to be opened in a few States.
Contd….
Contd….

Sometime IFFCO use open wagons due shortage of wagons, so its

essential to purchase more covered wagons.
It is the time for IFFCO to focus more on its promotional programmes,
because promotional activities of IFFCO are declines.
Make their presence at those places where demand of fertiliser is high
but supply is not effective.
The market scenario is changing fast. While there is a shortage of
phosphatic and potashic fertilisers in the market mainly due to uncertainty
in state level demand.
Thank
You