PROJECT REPORT ON :

“MARKRTING OF IFFCO PRODUCTS THROUGH

CO-OPERATIVES”

SUBMITTED BY –

SUNITA BESRA

Admission No:- 03 ABM/12

(AGRI-BUSINESS MANAGEMENT)

ORISSA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY (O.U.A.T)

CENTRE FOR POST GRADUATE STUDIES

submitted to :-
Dr.S.Mohapatra
(Head Of The Department)
(Agri-Business Management)
 DECLARATION

I , the undersigned hereby declare the project report entitled , “MARKETING OF IFFCO

PRODUCT THROUGH CO-OPERATIVE”submitted by me to the university of “CENTRE

FOR POST GRADUATE STUDIES, O.U.A.T” in partial fulfillment of the required for the

award of degree of Agri-business Management under the guidance of professor Dr.

B.PARASAR, is my original work and the conclusion drawn therein are based on the material

collected by myself.

The report submitted is my own work and has not been duplicated from any other

sources.I shall be responsible for any unpleasure moment –situation.

Place :-Bhubaneswar Name -

Date:26-6-2014 Sunita Besra

03AMB/12
CONTENTS

 Introduction
 Research Methodology
 Sample Metod
 Objective of Reasearch
 Corporate Profile
 Production
 Marketing
 Financial Performance
 IFFCO Associate
 Brands
 Types of Brands
 Needs of Branding
 Brand Promotion
 Need of brand promotion
 Promotion Strategies
 Promotional activities by IFFCO
 Channel Management
 Needs and benifit of Channel Management
 Data Analysis and interpretation
 Suggestion
 Conclusion
 Bibliography
 ACKNOWLEDGEMENT

I owe a sense of gratitude to the intelligence and co-operation of those people who had been so

easy to let me understsnd what I needed from time to time for completion of this exclusive

project.I would like to extend my deepest gratitude to IFFCO for giving me the opportunity to

work as a trainee in their organization.I got the opportunity to understand their business and have

an enriching experience and learning.I am greatly indebted to Mr. S. CHATTOPADHYA (State

Marketing Manager),Mr. G.C. BASTIA (Manager Agriculture Services) , and Mr.SHANTI

RANJAN NAYAK & Mr. SUKUMAR TUDU (Field Officers), Khurda for their constant

guidance , advice and help which enabled me to finish this project report properly in time.I am

also greatful to my Head Of The Department (Agri-Business Management), Dr. S.

MOHAPATRA and my project guide Dr.B. PARASAR (Prof. Head of extention Dept.) for

permitting me to undertake this project study and for their moral support.Last but not the least , I

would like to forward my gratitude to my friends and other faculty members who always

endured me and stood with me and without whom I could not have completed the project.
 INTRODUCTION

This research project has conducted to discover the answer from the farmer and other
institutional organization about “marketing of IFFCO products through co-operative
societies”.The main object of research is to find out that how the marketing channel works,how
the channel management is done,what are the promotional activities are done in that area,from
which source the farmers are getting information about the new and advanced technology and
their media preference from getting information.In the end ,the study has revealed a numbers of
information in different aspects regarding distribution,promotion,channel of distribution and
people involved in it,which may be helpful for the organization to take necessary steps for
achieving it’s marketing objectives.

The primary objective of the study is to analyze existing marketing and distribution channel of
the organization and to know the popularity of the brand IFFCO in the prescribed areas.The
secondary objective of the study is to find out the constraints and facilities available for channel
development and to study the sales promotional activities done in assigned places.Another vital
objective is to find out the satisfaction level of farmers of assigned area.

There are beneficiaries of IFFCO products who can be available for dissemination
information.The study will provide chance to know about the marketing strategies and .This
study will also provide the chance to understand farmer’s problems.The study will expose the
difficulties in brand and channel development.Time alloted for the study is very limited The
study requires adequate time.As the study covers the vast area ,it becomes a herculean task for an
individual to to get all related data.The study could have been better if it would have been done
in a group.Some farmers are seems to be reluctant to give information as they are only
concerned about the ground realities.It is their perception that they have nothing to do
with study.
IFFCO:Indian farmer’s success story
During mid - sixties the co-operative sectors in India was responsible for distribution of 70% of
fertilizer consumed in the country.This sector had adequate infrastructure to distribute fertilizer
but had no production facilities of its own and hence dependent on public/private sectors for
supply.To overcome this lacuna and bridge to demand supply gap in the country ,a new co-
operative society was concieved to specifically cater to the requirements of the farmers.It was an
unique venture in which the farmers of the country through their own Co-operative societies
created this new institution to safeguard their interests.The number of Co-operative societies
associated with IFFCO have risen from 57 in 1967 to 39.824 at present.

Indian Farmers Fertilizer Co-operative Limited(IFFCO) was registered on November 3,1967 as

amulti unit co-operative society.On the inactment of the multistate co-operative societies act
1984 &2002,the society is deemed to be registered as amultistate Co-operative society.The
society is primarily engaged in production and distribution of fertiliser.

IFFCO comissioned an ammonia-urea complex at Kalol and the NPK/DAP plant at Kandla
both in state of Gujrat in 1975.Another ammonia-urea complex was set up in Phulpur in the state
of Uttar Pradesh in1981.The ammonia-urea unit at Aonla was commissioned in 1988.

The distribution of IFFCO’s fertiliser is undertaken through over 39824 co-operative

societies.The entire activity of distribution,sales and promotion are co-ordinated by Marketing
Central Office (MKCO) at New Delhi assisted by the markting offices in the field.In addition
,essential agro-input for crop production are made available to the farmers through the chain of
158 Farmers Service Centre(FSC).IFFCO had promoted several institutions and organizations to
work for the welfare of the farmers,srtenghtening co-operative movements ,improve Indian
agriculture.Indian Farm Forestry development Co-operative Ltd.(IFFDC),Co-operative Rural
Development Trust (CORDET),IFFCO Foundation Kisan Sewa Trust belong to this category.

IFFCO,today is a leading player in India’s fertiliser industry and is making substantial

contribution to the effort of Indian government to increase foodgrain production in the country.
 EXECUTIVE SUMMERY

This research project has been conducted to discover the answer from the farmers and other
institutional organization about distribution channel management , promotional activities and
sales of the products by IFFCO.The main objective of the research is to find out :

 What type of problems the farmers are facing at the time of fertiliser , from where they
prefer to take it and why?
 What are the strengths and weaknesses in distribution of fertiliser?
 What are the promotional activities are done in that area?
 From which source they are getting the information about the new and advanced
technology and their media preference from getting information.

In the end , the study has revealed a number of information in different aspects
regarding

 distribution ,
 promotion ,
 channel of distribution and
 People involved in it , which may be helpful for the organization to take necessary steps
for achieving its marketing objects.
PROJECT PROFILE
 Project summery

Title of the study: Marketing of IFFCO products through co-operative societies.

STATEMENT OF THE PROBLEM

 Brand quality-Price ,quality.
 Brand expansion to target customer market.
 Brand management for increasing the long term brand equity.
 Channel management.

Objective of the study

 To study the existing distribution channel of organization.
 To study the present popularity of the brand IFFCO in the prescribed areas.
 To study the constraints and facilities available for channel development
 To study sales promotion activities done in assigned places.
 To find out the satisfaction level of assigned areas.

Scope of the study

 There are beneficiaries of IFFCO product who can be available for dissamination
information
 The study will provide chance to understand the marketing processan will also help to
understand the farmer’s peoblems.
 The study will expose the difficulties in brand and channel development .
 Farmer’s feedback will be usefull for further development of strategies to improve brand
image and channel.
 The study will incourage the marketing officials and dealers to take sufficient measure to
overcome the limitation of the channel distribution.
COMPANY PROFILE
 COMPANY PROFILE

About IFFCO:

Indian Farmers Fertilizer Co-operative Limited (IFFCO) is the worlds largest fertilizer co-
operative based in India.Incorporated in 3 rd November 1967,IFFCO has grown an Indian
multinational over the years.IFFCO has set records of excellent performance in the field of
production,marketing and service to the farmers.The society has although been doing its best to
achieve its prime role of providing quality fertilizers and service to farming community.

IFFCO has steadily growth in srength and stature from a modest menbership of 57 societies in
1967-68 to more then 39,800 societies.The initial equity capital of Rs.600000 contributed by the
co-operative in 1967-68 has also risen to Rs.430 crore in 2009-10.IFFCO commissioned Kalol
and Kandla plant in Gujrat in early 1975.Subsequently the society expanded its wing by setting
up two more plants in Phulpur and Aonla In U.P in the year 1982 and 1988.

Frtilisers marketed through 39824 Co-operative societies and 158 Farmers Service
Centres.IFFCO service to the farmers through a variety of programmes.

With the enactment of Multi state Co-operative Society Act 2002,the Society is deemed to be
registered as a Multi state Co-operative Society.the Society is fully owned by Co-operatives.
 PLANTS OF IFFCO

Plants Location Commisioned Expanded Annual Production

in in capacity
(In Thousand MT)

Kalol Gujrat 1975 1997 Urea 545

DAP/NPK
Kandla Gujrat 1975 1981 & 1999 (Bulk) 2415

Phulpur U.P 1981 1997 & 2008 Urea 1698

Aonla U.P 1988 1996 & 2008 Urea 2000

Paradeep Odisha Aquired in’05 DAP/NPK 1920

- (Bulk)
 PLANT LOCATION

KALOL UNIT P.O.Kasturinagar

District-gandhinagar-382423

(Gujrat)

KANDLA UNIT P.O.Kandla-370210

Kandla (Kachchh)

(Gujrat)

PHULPUT UNIT P.O.Ghiyanagar

District-Allahabad-212404

(Uttar Pradesh)

AONLA UNIT P.O.IFFCO Township

Paul Pothen nagar

Bareilly-243403(U.P)

PARADEEP UNIT Village Musadia

P.O.Paradeep

Surinder Jakhar Nagar

District-Jagatsinghpur-

754142 (Odisha)
PARADEEP PLANT AONLA PLANT

PHULPUR PLANT KANDLA PLANT

KALOL PLANT
 IFFCO SUBSIDIARIES

 IFFCO TOKIYO GENERAL INSURANCE COMPANY LTD. (ITGI)

 OMAN INDIA FERTILISER COMPANY S.A.O.C. (OMIFCO)
 JORDAN INDIA FERTILISER COMPANY LLC (JIFCO)
 IFFCO CHHATTISGARH POWER LTD. (IPCL)
 IFFCO KISAN SANCHAR LTD. (IKSL)
 IFFCO KISAN SEZ LTD. (IKSEZ)
 INDUSTRIES CHIMIQUES SENEGAL (ICS)
 KISAN INTERNATIONAL TRADING FZE (KIT)
 NATIONAL COMMODITY AND DERIVATIVES EXCHANGE LTD. (NCDEX)

IFFCO ASSOCIATES

 NATIONAL COLLATERAL MANAGEMENT SERVICES LTD. (NCMSL)

 INDIAN POTASH LTD. (IPL)
 IFFCO KISAN BAZAR LIMITED (IKBL)
 IFFCO FARM FORESTRY DEVELOPMENT COOP.LTD.(IFFDC)
 IFFCO FOUNDATION
 COOPERATIVE RURAL DEVELOPMENT TRUST (CORDET)
 IFFCO KISAN SEWA TRUST (IKST)
 FREEPLAY ENERGY INDIA PVT.LTD.(FEIPL)
 ARIA CHEMICALS(ODISHA)LTD.(ACL)
 IFFCO SUBSIDIARIES

IFFCO TOKIYO GENERAL INSURANCE OMIFCO IFFCO CHHATTISGARH POWER LTD

KISAN INTERNATIONAL TRADING FZE IFFCO KISAN SANCHAR LTD.

NATIONAL COMMODITY AND DERIVATIVR EXCHANGE

 IFFCO ASSOCIATES

NATIONAL COLLATERAL COOPERATIVE RURAL DEVELOPMENT TRUST

MANAGEMENT SERVICES

INDIAN FARM FORESTRY DEVELOPMENT CO-OPERATIVE LIMITED

 IFFCO PRODUCTS

Sl no. Name of fertilizer Trade name/Brand

name

1. Urea(46%N) IFFCO UREA

2. DAP(18:46:0) IFFCO DAP
3. NP(20:20:0:13) IFFCO 20:20:0:13
4. NPK(10:26:26) IFFCO 10:26:26
5. NPK (19:19:19)WSF IFFCO 19:19:19
6. NPK(18:18:18)WSF IFFCO 18:18:18
7. Urea Phosphate(17:44) IFFCO Urea Phosphate
8. SOP(50%) IFFCO SOP
 IFFCO PRODUCTS

UREA 46% N NPK (12-32-16)

NP (20-20-00-13) water soluble fertilizer

Urea phosphate (17-44-0) potassium sulphate (0-0-50)
CHANNEL MANAGEMENT
 MARKETING CHANNELS

 Distribution of fertilizers mainly through the co-operative system:

 State level cooperative Marketing Federation acts as wholesaler.

 Direct supply to societies in some states.

 IFFCO-NCDC Cooperative society

 Small quantities to institutional agencies like Agro Industries Corporation etc.

 158 IFFCO Farmers service Centres.

 CHANNEL

The Organisation of the ways in which company reach and satisfy their customers.Cannel
involves more then just distribution and has been described as management of how and where a
product is used and how the customer and the product interact.

CHANNEL MANAGEMENT
Channel management covers process for identifying key customer,communicating with them and
continuing to create the value after first contact.

Channel management, yet another sales and marketing phrase that is thrown around like
everyone knows what is means.but few companies really comprihenced channel management in
a way that really helps them.

Channel management as a pocess by which a company creates formalized programs for selling
ang servicing customers within a specific channel,can really impact their business in a positive
way.The channel management program that includes:

1.GOALS: Define the specific goals you have for each channel segment.Consider your goals for
the channel as a whole as individual accounts and remember to consider your goals for depth
acquisition and retention.

2.POLICIES: Construct well defined policies for administrating the account within this
channel.Be sure to keep the unique characteristics of each segment in mind when defining
policies for account set up., order management , product fulfillment etc.

3.PRODUCT: Identify which product in your offering are most suited for each segment and
create appropriate messaging.Also determine where you are up sell opportunity lies.

4.SALES/MARKETING PROGRAMS: Design report programs for your channel that

meet their needs , not what your idea of their needs are.To do this,you should start by asking
your customers within this segment.
 NEEDS AND BENEFITS OF CHANNEL MANAGEMENT:
 Benefits of working with channel partners , channel management helps to regulate the
action of its partners.
 Reduced cost channel programs.
 Relationship with your partners become clearer and you have a better understanding of
how each of you works with one another.
 Channel management is able to do its part to keep everything organized and in working
order.
 It works to improve business of each partner.
PROPER CHANNEL IS VERY CRUCIAL AND IMPORTANT DECISION
,IF A COMPANY WANTS TO BE A MARKET LEADER

CHANNEL MANAGEMENT BY IFFCO

MANUFACTURER
(IFFCO)

WHOLESALER/DEALER

RETAILER

CUSTOMER
(FARMERS)
 CHANNEL MANAGEMENT BY IFFCO:

 IFFCO is the biggest co-operative organization which distributes its fertilizer.The sales of
IFFCO fertilizers are done through co-operatives i.e. State level marketing federation.

 District and village level societies also called as primary Agriculture Co-operative
societies (PACS).These are the backbone of the co-operative system having direct access
to the farmers for supply of fertilizer in village and remote areas.

 In business of fertiliser,hiring of warehousing facilities and gives preference to them for

handling and transportation of IFFCO fertiliser,thus improved accusingly fertiliser to
farmers.
 TEN YEARS FINANCIAL HIGHLIGHTS
OPERATING 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05
RESULTS

sales 10,111.86 11,003.58 11,135.17 8,524.94 7,247.30 7,387.70 5,968.47 5,554.53 5,358.19 4,097.60

Subsidy on 10,733.67 10,669.78 14,463.80 12,670.22 9,561.27 25,545.60 6,194.35 4,775.58 4,584.74 4,097.60
fertiliser

TURNOVER 20,845.53 21,673.36 25,598.97 21,195.16 16,808.57 32,933.30 12,162.82 10,330.11 9,942,93 7,396.98

Other 536.60 537.42 551.69 751.24 841.55 499.00 354.77 244.66 71.45 85.03
Revenue
TOTAL 21,382.13 22,210.78 26,150.66 21,946.40 17,650.12 33,432.30 12,517.59 10,574.77 10,014.38 7,482.01
INCOME
Cost of sales 19,598.17 19,825.80 23,853.73 19,728.79 15,859.92 31,496.75 11,336.77 9,578.09 9,166.48 6,809.48
(PBDIT) 1,783.96 2,384.96 2,296.93 2,217.61 1,790.20 1,935.55 1,180.82 996.68 847.91 672.53

Finance cost 861.26 789.52 805.20 727.12 764.98 1,023.20 389.37 353.94 123.70 34.02
Depreciation 514.92 488.02 473.95 464.71 457.94 470.40 410.93 391.49 242.31 167.59
PBT 407.78 1,107.43 1,017.78 1,025,78 567.28 441.95 380.52 251.25 481.90 470.92
Tax 88.97 378.71 245.60 234.29 166.18 81.94 122.93 76.23 140.55 151.28
PAT 318.81 728.72 772.18 791.49 401.10 360.01 257.59 175.02 341.35 319.64
Dividend 85.15 85.16 85.16 85.18 85.18 85.10 84.53 84.45 84.36 83.92
Cooperative 3.19 7.29 7.71 7.90 4.01 3.59 2.57 1.75 3.41 2.98
education
fund
Donations 1.50 0.50 1.50 0.50 0.50 1.75 0.75 0.25 1.00 0.25
RETAINED 228.97 635.77 677.81 697.91 311.41 269.57 169.74 88.57 252.58 232.49
PROFIT
SOURCES
AND
APPLICATIO
N OF FUNDS

SOURCES OF FUNDS
Equity share 425.78 425.88 425.80 425.95 426.24 426.28 423.93 422.92 422.73 421.31
capital
Reserve and 6,084.34 5,855.31 5,219.57 4,542.09 3,844.26 3,532.59 3,264.73 3,218.92 3,132.66 2,879.84
surplus
NET WORTH 6,510.12 6,281.19 5,645.37 4,968.04 4,270.50 3,958.87 3,688.66 3,641.84 3,55539 3,301.15
Borrowing – 267.76 267.94 262.49 297.79 1,243.59 1,419,16 1,781.83 1,935.80 2,504.43 -
Long Term
Borrowing 9.154,26 1,0244.96 1,2523.59 1,0345.45 1,0164.42 1,1249.70 4,850.68 4,403.09 2,400.92 533.10
Short-term
Borrowing- 74.72 85.89 91.64 97.08 124.16 133.92 143.13 147.23 130.04 113.99
diferred
trade Tax
Diferred Tax 400.22 485.47 447.14 416.33 516.78 542.12 534.19 534.02 458.39 421.25
Liability
TOTAL 16,407.08 17,365.45 18,970.23 16,124.69 16,319.45 17,303.77 10,998.49 10,661.98 9,049.16 4,369.49

Application
of funds
Net fixed 4,833.49 5,023.62 4,894.46 4,953.68 5,15728 5,256.82 5,16979 5,039.01 4,869.92 2,160.62
Assets
Inc.capital-
work-in-
progress
Investment 2,642.78 2,421.62 2,251.41 5,157.19 7,531.28 7,552.95 1,416.73 740.46 776.16 690.73

Other assets 10,965.27 12,640.17 13,399.13 7,989.01 5,822.51 7,672.99 5,775.74 6,071.97 4,748.98 2,603.98
loans &
advances
Liabilities & 2,034.46 2,719.96 1,574.77 1,975.19 2,191.62 3,182.89 1,371.57 1,201.23 1,361.60 1,104.84
provisions
Net other 8,930.81 9,920.21 11,824.36 6,013.82 3,630.89 4,490.10 4,404.17 4,870.74 3,387.38 1,499.14
assets loans
& advances
Miscellaneou 3.90 7.80 11.77 15.70 19.00
s Expenditure - - - - -
TOTAL 16,407.08 17,365.45 18,970.23 16,124.69 16,319.45 17,303.77 10,998.49 10,661.98 9,049.16 4,369.49
 PERFORMANCE HIGHLIGHT S FOR THE YEAR 2013-2014

Production of fertiliser 75.86 lakh MT

(Best 85.83 lakh MT in 2010-2011)

Urea production 43.80 Lakh MT

(Best 45.10 Lakh MT in 2012-2013)

DAP production 14.32 Lakh MT

(Best 19.43 Lakh MT in 2012-13)

Production of NP/NPK/DAP/WSFs 32.06 Lakh MT

(Best 41.81 Lakh MT in 2010-2011)

Sales of fertilises 96.42 Lakh MT

(Best 125.68 Lakh MT in2010-2011)

Sales of Urea 65.60 Lakh MT

(Best 57.65 Lakh MT in 2010-2011)

Sales of NP/NPK/DAP/WSFs 30.82Lakh MT

(Best 57.65 Lakh MT in 2010-2011)

Fertilise Despatches 99.14 Lakh MT

(Best 126.55 Lakh MT in 2010-2011)

Profit Before Tax Rs.407.78 Crore

(Best PBT Rs.1,107.43 Crore in 2012-2013)

Profit After Tax Rs.318.81 Crore

(Best PAT Rs.791.49 crore in 2010-2011)

Turn Over Rs.20,464 Crore

(Best Rs.32,933 Crore in 2008-09)

Plant Productivity 1,647 MT per Employee

(Best 1,724 MT in 2010-2011)

Marketing Productivity 7,349 MT per Employee

(best 8,622 MT in 2010-2011)

Copmposite Specific Energy Consumption 5,797 Gcal/MT of Urea

(Lowest 5.764 Gcal/MT of Urea in 2012-2013
 PRODUCTION PERFORMANCE DURING 2013-14 vis-à-vis 2012-13

2013-14 2012-13

Production Capacity Utilisation

Plant Production Production Capacity (Lakh MT) (%)
(Lakh MT) utilization
(%)
UREA
Kalol 6.00 110.3 6.00 110.3
Phulpur-1 6.52 9.34 6.73 96.4
Phulpur-2 9.51 95.1 9.22 92.2
Aonla-1 11.03 110.3 10.92 109.2
Aonla-2 10.74 107.4 11.53 115.3
TOTAL UREA 43.80 103.3 45.10 106.3
NP/NPK/DAP

Kandla- 16.17 65.7 19.12 77.7

NPK/DAP/WSFs
Zinc Sulphate
Paradeep-
NP/NPK/DAP 15.89 82.8 14.80 77.1
Total- 32.06 73.2 33.92 77.4
NP/NPK/DAP
TOTAL FERTILISERS 75.86 88.0 79.02 91.6
PRODUCTION IN
TERMS
OF-
‘N’ 24.98 94.9 26.13 99.3

P2O5 11.45 66.6 12.89 75.0

 SALES OF FERTILISER MATERIAL

MATERIAL 2013-14 2012-13

Urea own 47.27 45.48

Imported 22.33 16.84

Sub total 65.60 62.32

NP/NPK* 16.59 16.28

DAR own** 27.78 19.71

Imported 1.34 2.15

Sub total 14.12 21.86

Total (NPK/DAP) 30.71 38.14

Total 96.31 100.46

(UREA+NP/NPK+DAP)

Zinc Sulphate (Mono/Hecta) 0.05 0.02

Phospho Zypsum 0.06 0.06

GRAND TOTAL 96.42 100.54

*includes 1005 water soluble imported NPK 19:19:19/18:18:18 Sulphur Bentonite and
SOP
**includes 100% water soluble Urea Phostate (17:44:00) produced at Kandla.
 SALES OF 100% WATER SOLUBLE FERTILISERS

2013-14 2012-13

Urea Phosphate (17:44:00) 3,275.80 4,544.60

NPK (18:18:18) 2,597.10 941.50

NPK (19:19:19) 0.10 227.50

SOP (00:00:50) 1,073.40 825.10

TOTAL 6,986.40 6,538.70

SALES OF SECONDARY NUTRIENTS , MICRO NUTRIENTS AND PHOSPHO GYPSUM

2013-14 2012-13

Sulphur Bentonite 1,551.50 979.78

Zinc Sulphate mono(33% 5,260.80 1,864.54

Zn)

Zinc Sulphate Hepta (21% 5.00 167.04

Zn)

Phospho Gypsum 5,706.90 5,871.65

TOTAL 12,524.20 8,883.01

BUSINESS AND FINANCIAL REVIEW OF SUBSIDIARIES AND ASSOCIATES

MATERIAL 2014 2013

Investment in joint 1,615.53 1,408.93

venture/subsidiaries

Investment in business 76.00 61.44

associates

TOTAL 1,691.53 1,470.37

 NET WORTH
7,000 6,510
6,281
6,000 5,645
4,968
5,000
4,270
Rs. In Crore

4,000

3,000

2,000

1,000

0
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
 CASH PROFIT
1400
1,256 1,246 1,217
1200

1000
858 835
Rs.in Crore

800

600

400

200

0
2009-2010 2010-2011 2011-2012 2012-2013
 PRODUCTION OF FERTILISERS
(Lakh MT)
90
79.02
80 75.86

70

60

50 45.1

40 33.92 32.06
30

20

10

0
2012-13 2013-14
 SALES ORF FERTILISERS
( Lakh MT)
120
100.54
100

80
62.32 65.6
60

38.22
40 30.42

20
2
0
2012-13 2013-14
 PRICE OF IFFCO PRODUCTS

(Rs.per MT)

UREA – 5412.63

NPK-1 (10:26:26) – 20900

NPK-2 (12:32:16) – 21000

APS (20:20:0:13) – 18000

NP (28:28:0) – 22000

DAP (18:46:00) – 22500

DAP (Imp) (18:46:00) – 22500

 MARKETING OF IFFCO PRODUCTS
Marketing of IFFCO products are done through state the level co-operative societies and village
level co-operative societies.Here State level co-operative societies act as the wholesaler.Some of
the State level co-operative societies does both wholesaling as well as warehousing.For
example-RCMS Bhubaneswar acts both as wholesaler an at the same time warehousing.Village
level co-operative societies (PACS) acts as a retailer.

Primery Agriculture Co-operative Society (PACS) –

The PACS/LAMPS/FSCS are the bottom-tier of the Short Term Cooperative Credit Structure
functioning at the grassroots (Gram Panchayat) level. These are Primary Societies owned by
farmers, rural artisans etc. and intended to promote thrift and mutual help among the members;
cater to their credit requirements and provide credit-linked services like input supply, storage and
marketing of agricultural produce etc. These Cooperative Credit Institutions with their wide out-
reach in the rural areas and accessibility to the small and marginal farmers and the other
marginalized populations have been playing a vital role in dispensation of agricultural credit.

Objectives
 To cater to the credit need, mostly, farm credit and income generation activities of farmers,
artisans and other members.
 To extend selected banking services to members.
 To implement Kissan Credit Card Scheme for providing timely and adequate farm credit to
members.
 To take up marketing of agricultural produce of member farmers.
 To cater to the consumer needs, mostly, essential commodities of members.
 To create awareness among farmers to adopt improved farming practices.
 To reach upto the unprivileged section of the community through SHGs, JLGs and TFGs.
There are about 149 PACS in Khurda district of Odisha ,214 PACS in Puri
district and 143 PACS in Nayagad district.

Following are some of the Field Offices in Khurda district wholesaler which acts as a party-
cum-warehouse :-

1.Bhubaneswar RCMS Ltd.

2.Baligaon RCMS Ltd.

3.Odisha State Co-operative Marketing Federation Ltd. (OSCMF), BBSR.

4. Odisha State Co-operative Marketing Federation Ltd. (OSCMF),Jatni.

5.Bhubaneswar RCMS Ltd.at Jatani

6.Odisha Agro Industries Corporation Ltd. (OAIC), Bhubaneswar.

Following are the field offices in Khurda district which acts only as a party :-

1.Integrated Development SHCL,Kuhudi

2.Badkul State Co-operative Society Ltd.

There are about 214 PACS in Puri district.Following are the Field Offices in Puri district :-

1.Pancha Padma Women MPCS Ltd.,Kanas.

2.Maa Uttarayani MPCS Ltd.Nayahat

3.Mahavir SCS,Nayahat.

4.OAIC,Pipili

5.Chandrakote SCS.
6.OSCMF Ltd. Nimapada

7.OSCMF Ltd.Sakhigopal.

8.OSCMF Ltd. Khajuria

9.Maa Jageswari women MPCS,Siula.

There are about 143 PACS in Nayagad district.Following are the field offices in Nayagad
district-

1.OSCMF Ltd. Nayagad.

2.Nandighore SCS Ltd. at Bahadajhola.

3.Nandighore SCS Ltd.

4.OAIC Ltd. Nayagad.

HYPOTHESIS : Odisha farmers are not seriously brand loyal.

STUDY AREA : RCMS,Bhubaneswar of khuda district and cuttuck district.

UNIVERSE OF THE STUDY : All the farmers , Co-operatives and dealers/retailers of

IFFCO products of Pahada SCS,RCMS , Bhubaneswar of Khurda district.

SAMPLE SIZE : The study has addressed 60 samples from the Universe.
Farmers – 50

Co-operatives/Retailers – 10

TOOLS OF DATA COLLECTION : Structured interview schedule had been

administered for collecting information from the respondents.

LIMITATIONS :
 Time allotted for such a study is very limited.
 As the study covers the vast area , it becomes a herculean task for an individual to get all
the related data.the study could have been better if it would have been done in a group.
 Some farmers are seen to be reluctant to give information as they are only concerned
about the ground realities.It is their perception that they have nothing to do with study.
STEPS TAKEN BY IFFCO TO STRENGTHEN THE CO-OPERATIVES

 Selection of Co-operative societies under various schemes of IFFCO.

 The societies acts as franchaisee to undertake various jobs like rake handling ,
transportation , wharehousing etc. and sales of IFFCO products through co-
operatives.

 Renders benefits to the farmers through SHBY (Sankat Haran Bima Yojna).

 20% dividend is paid to the member society for share contribution to IFFCO.

 Financial assistance for construction of godowns under cooperative development

program of godown consutation scheme.

 Implimentation of IFFCO Kisan Sanchar Ltd. (IKSL), NCDEX and NCMESL

schemes through co-operative societies.
 PROMOTIONAL ACTIVITIES DONE BY IFFCO

Need of Brand promotion :

Though the rural market offer big attracktion o the marketers , one of the most important
questions frequently asked is , “how do we reach the large rural population through different
media and methods”?

Hence to increase the sale and improve the marketing of the products,their should be a proper
promotional activities should be carried out.

Following are the different type of promotional activities which includes three types of
promotional programs comprises marketing of fertiliser , co-operative development and
agriculture development done by the IFFCO for better marketing and selling of the products :

 Soil health rejuvenation and crop productivity Enhancement Project.

 Farmers meeting.Sail Point Personal Training Programm (SPPT).
 2-Plot demonstration.
 Field Day.
 Village adoption.
 IFFCO Sankat Haran Bima Yojna.
 Veterinary Check up camp.
 Medical check up camp.
 District Co-operative Confference.
 Sale campaign.
 PSN compost pit.
 Road Side Sign (RSS) Board.
 Wall Paintings-PACS.
 Social Schemes.
 Women Training Programms.
 Vermicompost Pit.
 Gobar Gas Plant.Special project.
 Critical Input Package.(CIP).
Following are different types of campaign done by IFFCO :-

 Biofertiliser campaign.

 Seed treatment campaign.

 Plant Protection Campaign.

 Soil test Campaign.

 BRAND PROMOTION PROGRAMME

PROMOTION BUDGET PURPOSE

PROGRAMMES

1.Farmers meeting Rs. 1000/- Direct interaction

2.Seed treatment campaign Rs. 1000/- To protect seed burn

diseases
Properly Bio use
3.Bio fertilizer campaign Rs. 1000/-

4.two plot demonstration Rs. 1000/- Seeing is believing

5.Soil testing campaign Rs. 2500/- Mother of plant

6.S.P.P.T Rs. 6000/- To educate

7.Dist. Coope. Conference Rs. 7500/- SCS Formation

8.Medical check up Rs. 10,000/- Extream rural check up

9.Mega health campaign Rs. 10,000.000/- Coverage 10-15000 at large

10.Veterinary check up Rs. 5,000/- Cows and goats

 IFFCO DISTRIBUTION CHANNEL IN KHURDA DISTRICT

The marketing of IFFCO products – NPK , NP , DAP , Urea is channelized through 39,456
members of co-operative societies,Marketing Federation and 158 Farmer Service centres spread
over 30 states/union territories across the country.

MARKETING CHANNELS

 Distribution of fertilizers is done mainly through the co-operative system.

 State level apex Co-operative Marketing Federation acts as a wholesaler.

 Direct supply to societies in some states.

 Small quantities to agro Industries co-operation etc.

IFFCO PRODUCTS

THE ODISHA AGRO-

STATE LEVEL APEX CO- INDUSTRIES
OPERATIVE MARKETING CO-OPERATIVE
SOCIETIES COOPERATION LTD.
FEDERATION
(OAIC)
The fertiliser business is not of throughout the year.Its consumption is seasonal and its
storage and handling is more important to minimize the markrting cost.

Distribution of Urea and interstate movement is under Government contolled

and is regulated under the essential commodities Act (ECA) 1956.Under ECA, supply of
Urea is formulated by the Government in consultation with the state department of
Agriculture and fertiliser industry.IFFCO urea is moved from factory to field warehouse
by both road and rail.Movement through rail is resorted to on a need basis of distance
location at the shortest time.Consumption of Urea is seasonal..Thereby ,rendering ,
transportation , storage and distribution is very important.Distribution is aimed to cover
the maxium area of the district so as to make it available to the maximum consumer at the
same time.

WAREHOUSING

 State Level federation godowns.

 Agro industries.

 SHG and MPC societies godowns.

 SCS (State Co-operative society) goeowns.

 DISTRIBUTION CHANNEL PROCESS

By Road

IFFCO PRODUCTS FEEDER WAREHOUSE

From Plant

Rake point

Rake point W/H SCS Consumers

(State co-operative Society) (farmers)

Retail Dealers (SCS)

Consumers Consumers
RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

 TYPE OF RESEARCH

 It is one kind of Exporative research conducted to find out farmers view regard to the
subject.
 Here I tried to understand and study various factors and ideas for getting information
which can be applied for further development of the concept.

 RESEARCH APPROACH

 The research include both quantitative and qualitative approach as it involves both
numerical data about the sale and production and less tangible subjects like
value,views,perception of the farmers about the products.

 UNIVERSE

 Here the universe for the study comprises all the farmers , co-operatives and
dealers/retailers of IFFCO products of RCMS, Bhubaneswar and Pahada SCS.

 SAMPLE DESIGN
Sample Unit – 1. Farmer

2. co-operative

3. Retailer

Sample Unit – The study will address 60 samples from the Universe.

1. Farmers - 50

2. Co-operatives and Retailers – 10

 SAMPLING METOD

 Here I have followed stratified random sampling method.

 Under this sampling method I have selected one district out of the state.
 Then I have choosen two Blocks out of the seven blocks of the district at random and
sixty samples belonging two blocks where IFFCO beneficiaries were available for
disseminating information.

 DATA COLLECTION
Primery source :
 A structured interview schedule was prepared for conducting interviews.
 Then data was collected based on the question of the interview schedule through
interviews and discussion with the farmers ,society members and staffs .

 Secondary source :

 Economic servey report of Odisha Govt. of India.

 Information gathered from block office.
 Data from IFFCO.

DATA FINDINGS

 The result is to be critically analysed and every aspects of the objectives to be

deal with great detail.
 The findings are to be reported with the helps of suitable graphs , diagrams
wherever required.
 The comparative analytical findings are to be reported for most aspects of the
objectives.
 There is huge demand of demonstration , but it cannot take place due to staff
shortage.
 Here the loan being provided is recovered timely.
 CONCLUSION

IFFCO is the biggest Co-operative Organisation which distributes its fertiliser.The sales
of IFFCO fertilizers are done through the co-operatives i.e State level co-operative
Marketing Federation.district and village level societies also called as Primery agriculture
Co-operative Societies (PACS) are the backbone of the co-operative system having direct
access to the farmers to supply of fertiliser in village and remote areas.
In business of fertiliser , hiring of warehouse facilities and gives preference to them
for handling and transportation of IFFCO fertilizers , thus improved accusingly fertiliser
to farmers.

The distribution channel is appropriate for marketing and supply of their

products still it can be enhanced by making designing a better channel for supply.
More promotional activities can be implemented for increase in sales and brand
equity.
 SUGGESTIONS AND RECOMMENDATION

After complishing the servey and after analyzing the result , I can suggest the following
remedies for the betterment of the organization in those prescribed areas a :-

 More and more awareness should be done.

 Farmers meeting should be frequently arranged.
 Make the farmers aware about the composition of fertilizers in the soil.
 Company should contact the SHG nearby and have a discussion with them
regarding the farmers problems.
 BIBLIOGRAPHY

MARKETING HEAD (IFFCO) – Mr. G.C.Bastia

FIELD OFFICER (IFFCO) – Mr.Sukumar Tudu

Www.google.co.in

www.IFFCO.nic.in