Present By- Satya Pal

INTRODUCTION
The following is an organizational structure study of Indian Farmers

Fertilizer Cooperative Limited with special analysis of the IFFCO Aonla plant. Indian Farmers Fertilizer Cooperative Limited (IFFCO), a Multi-unit Co-operative Society established on November 3, 1967.
It is largest manufacturer and marketer of fertilizers in the country.
India is the third largest producer of fertilizers in the world. There are

60 large size fertilizer plants in the country, 81 medium and small scale plant in the country. The success of IFFCO has encouraged the growth of the cooperative movement in INDIA.

INDUSTRY PROFILE OF FERTILIZERS

GLOBAL INDUSTRYThe International Fertilizer Industry Association or IFA is a trade association that represents the global fertilizer industry. IFA has some 540 members in about 85 countries. The global fertilizer industry produces some 170 million tonnes of fertilizer nutrients annually. IFA's membership also includes organizations involved in construction, engineering, consulting, agronomic research and training. INDIAN INDUSTRYFertilizers have played a vital role in the success of Indias green revolution and consequent self-reliance in food grains production Fertilizer is generally defined as any material, organic or inorganic, one or more of the chemical elements required for plant growth Fertilizer is a crucial input contributing to about 40 per cent of the productivity of the crop.

India is one among the most dynamic generic pesticides manufacturing countries with a total market size of Rs 89 billion per annum.

The agrochemical industry is spread over around 20 large manufacturers and 600 formulators. While the organized sector contributes 55% to the industrys output, the small scale sector makes up for the balance.
The Indian industry has been focusing sharply on integrated crop management (ICM), increasing exports of genuine pesticides and concentrating on farmer friendly activities. The fertilizer industry in India consists of three major players; The Government owned Public Sector undertakings, Cooperative Societies like IFFCO, KRIBHCO from Private sector. There are about 33 major producers producing N and NP/NPK fertilizers in the country at present.

COMPANY PROFILE OF IFFCO

Indian Farmers Fertilizer Co-operative Limited
Type Founded Headquarters Area served Key people Cooperative November 3, 1967 New Delhi, India India Natwarlal Pitambardas Patel, Chairman Dr. Udai Shanker Awasthi, CEO Fertilizers

Products Revenue Net income

211.9 billion (US$ 3.84 billion)(2010-11)

7.914 billion (US$ 143.24 million)(2010-11)

ABOUT IFFCO
During mid- sixties the co-operative sector in India IFFCO was born the worlds largest fertilizer cooperative. IFFCO has steadily grown in strength and stature from a modest membership of 57 societies in 1967-68 to 39564 societies as on 31 St March,2011. Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on November 3, 1967 as a Multi-unit Co-operative Society. IFFCO is presently operating five factories located at Aonla and Phulpur in Uttar Pradesh and Kalol and Kandla in Gujarat & Pradeep in Orisa. AONLA UNITAonla project of IFFCO is one of the six natural gas based fertilizer plants set up in the site is 28 km south west of Bareilly on Bareilly Aonla Road UP. This project has been designed to produce 7.26 lake tons of Urea per year. The project consists of main plants, Ammonia plant, urea plant, steam generator & power generator plant, other offsite facilities like water supply and treatment system storage for spares consumables & products, bagging plant laboratory, Inert gas plant, instrument air compressor etc.

OBJECTIVES OF IFFCO
The main objectives of the Society are as follows: Promoting nations growth through modern farming techniques. Improving agriculture productivity, through balance fertilizer applications. To promote the activity for enriching the life of rural. To achieve self reliant and self generated economy.

Educating and guiding the farmers. Strengthening cooperation distribution system. IFFCO is a cooperative institution of the farmers by the farmers.

BUSINESS PRINCIPLES OF THE COMPANY

The principles of the company are as follows:
To fair price of the product manufactured by the company is subsidy to the farmers. Total consumer satisfaction as a quality of product, price of the product and better service after selling the product. Effective management information system To increase the efficiency to maintain better human relation and discipline among all the employees

To maintain better human relation and discipline among all the employees
To develop good relation with customers

VISION & MISSION OF THE IFFCO

VISION 2015 In pursuit of its growth and development, IFFCO had embarked upon and successfully implemented its Corporate Plans, Mission 2005 and Vision 2010. IFFCO has now visualized a comprehensive plan titled Vision-2015 which will be guided by the following objectives:a) Production of fertilizers through expansion of existing units. b) Setting up of fertilizer production facilities in India and outside the country through joint ventures. c) Diversification into other Profitable Sectors. d) Strengthening its raw material sourcing through Strategic Joint Ventures in India and abroad. e) Strategic Alliances through IFFCO Consortium. f) Achieve Fertilizers Production / Marketing target of 15 million Tonne per annum with an annual turnover of Rs. 30,000 crores. g) To help the Cooperative Societies become economically strong, professionally managed and to equip the Farming Community with advanced agricultural practices for improved.

MISSIONa. To provide to farmers high quality fertilizers in right time and in adequate qualities with an objective to increase crop productivity. b. To make plants energy efficient and continually review various schemes to conserve energy. c. Commitment to health, safety, environment and forestry development to enrich the quality of community life.

d. Commitment to social responsibility for a strong social fabric.

e. A true commitment to transparency, accountability and integrity in principle and practice.

f. Building a value driven organization with an improved and responsive customer focus.
g. To acquire, assimilate and adopt reliable, efficient and cost effective technologies.

PRODUCT PROFILE OF IFFCO

NPK- The two grades of NPK produced by IFFCO, 10:26:26 and 12:32:16, indicating the content of N, P, K proportion, is tailor made to supply the exact composition required for replenishment of the soil.

DAP(DI-AMMONIUM PHOSPHATE)-It is the most popular phosphate fertilizer because of its high analysis and good physical properties. The composition of pure salt of DAP is N-21.19% and P210 -53.76%.Fertilizer grade DAP is 18:46:0. UREA-Urea is the most important nitrogenous fertilizer in the country because of its high N content (46%N). Besides its use in the crops, it is used as a cattle feed supplement to replace a part of protein requirements.

ORGANIZATION STRUCTURE
The organization Structure of IFFCO consists of Board of Director. The government of India nominates two member of the board. The member of cooperatives societies nominates rest of the members. A chairman is the functional Head of his organization since he has an elected member. There is also a vice chairman elected by the member of the Board of director. Once of the members of Board of directors is the Managing Director. The MD is the Executive Head since he is an appointed member. The MD is responsible for carrying out all the function of the organization. IFFCO consists of both line and staff manager but there is clear is demarcation among their authorities and responsibility. The theme of Organization Effectiveness is to have a high degree of collaboration among the managerial personal through the structure provides unlimited. Power to the manager yet of the manager believe in benevolent it leadership. This is the main reason behind the new records made by this unit. General Manager has the highest authority of IFFCO Aonla whose decision is final and followed by whole organization.

FUNCTIONAL DEPARTMENTS
MARKETING & DISTRIBUTION FINANCE AND ACCOUNT DEPARTMENT PERSONAL & ADMINISTRATION DEPARTMENT

MAINTENACE DEPARTMENT
PRODUCTION DEPARTMENT TACHNICAL DEPARTMENT MATARIAL DEPARTMENT TRANSPORT DEPARTMENT

SWOT ANALYSIS
SWOT analysis is a technique through which managers create a quit overview of a companys strategic situation. It is based on the assumption that an effective strategy derives from a sound fit between firms internal resources (strength & weakness) and its external situation (opportunities & threats). A good fit maximizes a firms strength and opportunities and minimizes its weakness and threats. STRENGTH:Fertilizer is the basic raw material for agriculture production NO GOVT. can dare to make policies which are not conducive to the farmers. Demand of fertilizer is more in the country than the production capacity therefore whatever is produced will be sold. Government ensures the availability of raw material (NG/NAPHTHA) at reasonable price as it has at subsidy of fertilizer is subsidizing product. IFFCO is a co-operative organization and selling its product through co-operative channel. There are only to organization IFFCO & KRIBCO. It means not much competition in the channel. All plants are of latest technology of art and are in healthy condition.

WEAKNESS:-

As per by law of the company it can fallows the co-operative channel only for sale of its product. In case demand fall short in the channel company end up with higher stock inventory. Price of the product cannot be raised and government pay the subsidies as per its calculation of fertilizers cost.
OPPORTUNITY:IFFCO can cut on cost by reducing energy consumption for per MT of UREA, thereby enhancing its profitability. IFFCO can also reduce its fixed cost per MT of UREA by enhancing its production capacity & thereby increase in production and profitability. IFFCO is also perusing a multiproduct KISSAN SEZ at NELLORE in A.P. IFFCO has also entered into a long term of take and supply agreement with international holdings of AUSTRALIA for supplying phosphate to insure raw material supply NPK/DAP fertilizers plants.

THREATS:NG supply in the country is not sufficient to meet present country requirement. However NG in liquid form is imported from various gulf countries and rigidified at petro net in Gujrat to meet demand of fertilizers units. If supplies of NG suffer due to an region. It will be reflected in production of IFFCO. NAPHTHA is also imported Gulf countries. Its rates are not stable in the international market & it availability is also affected by its international demand. Rock phosphate is also imported to produce NPK/DAP at IFFCOs Kandla & Paradeep unit. Supply of Rock phosphate is also a threat to the production NPK/DAP. It rate are not stable in the international market. ANALYSIS:With the finding of NG at KG basin of RIL most of requirement of fertilizers units will be meet for the countries on resources and dependability on the import will be reduce thereby ensuring the raw material supply to the fertilizer unit at reasonable price. Further IFFCO has made long term agreement for procurement of Rock phosphate with various countries to overcome. It major threats of raw materials for the production of NPK/DAP therefore it can be said that IFFCO is on sound footing to protect it stability and enhance it profitability by cutting on cost and increasing production in years to come.

FINDINGS
Majority of the farmers are using IFFCO product and rest are using other including Tata, Narmada & others.

60% of the farmers are waiting for a particular brand of fertilizers.

Most of the farmers are selecting the fertilizers on brand basis and second major criteria to select the fertilizers are availability. 90% of the farmers desired for the plastic bag and only 10%for the jute bag. 70% of farmers desire 50kg pack & rest 30% prefer 25kg pack. In a village about 60% farmers meetings,15% Field Day,10% Socioeconomic &15% Other Promotional Programmed were organized by IFFCO.

I found that farmers are satisfied with the IFFCO fertilizers even in un adopted villages.
There are a number of reasons to prefer the plastic bag: Moisture control. Reusable and strong.

CONCLUSION
The organizational study of the IFFCO Aonla Plant and also the analyses of IFFCO in general demonstrate that a bureaucratic organizational structure is not always inefficient. In fact if properly applied it has many positive aspects especially in large and complex organizations. IFFCO's experience has also shown that cooperative sector can succeed even in high investment high technology areas like fertilizer production. The large scale extension activities and cooperative development programmed have strengthened the bond between IFFCO and the Indian farmers who are the consumers as well as members of the village level cooperative societies. The confidence generated by this success has paved way for a vigorous growth programmed to expand its existing units as well as establish new units. This will enable IFFCO to emerge as a global leader in production and marketing of chemical fertilizers located in a single country.

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