SUMMER TRAINING PROJECT REPORTON MARKETING OF KISAN UREAPRODUCED
BY NFL WITH SPECIAL REFERENCE TO BATHINDA &MUKTSAR
DISTRICTSUBMITTED TONATIONAL FERTILIZERS LIMITEDIN PARTIAL
FULLFILMENT OF THE REQUIREMENT FOR THE DEGREEOF MASTER OF BUSINESS
ADMINISTRATION (200!200"#SUBMITTED BY$NAMAN
DHAWANACKNOWLEDGEMENTFirst of all and the foremost I willlike to
thank the ALMIGHTY GODfor giving me the strength and knowledge to
do whatever I have doneduring and my summer trainingI would also
like to thank Miss. Shivanifor giving his precious andvaluable time
to me and guiding me in the preparation of the report ,without
their help which could had not been possible.I would also like to
thank my %&'()*+ & all my friends who supportedme and
helped me in the preparation of the report.FORMAT N, TH
-TF!./NATIONAL FERTILIZERS LIMITEDHRD DEPARTMENTD&*(0
$1111111C('*2324&*( -456 R(72(82)9 O'0('The following students
of !!!!!!!!!!!!!!!year , "egree"iplomaM#$ in !!!!!!!!. From
!!!!!!!!!!!!!!!!!!!%oined&F'(n!!!!!!!!!!!!For
!!!!!!!!vocational trainingfrom !!!!!!!!!!!!! to !!!!!!!!!!!!!!..
vide our earlierMemo "ated !!!!!!!!!!!!!!!and is are hereby
released, aftersuccessful completion of the training on !!!!!!!..
afternoon.Sr. &o &ame ) SShri* +oll &o, !!!!!!!!!!!!!!.
!!!!!!!!!!!- !!!!!!!!!!!!!!. !!!!!!!!!!!. !!!!!!!!!!!!!!.
!!!!!!!!!!!/ !!!!!!!!!!!!!!. !!!!!!!!!!!0 !!!!!!!!!!!!!!.
!!!!!!!!!!!)1hushwinder Singh MI2* Manager 3+"To concerned 4Ts55
To6,. 5hief Mgr. )F & $* 7 with the re8uest to release security
of +s. 09 to the above4ocational Trainees.-. :rincipal Training
& :lacement
officer.!!!!!!!!!!!!!!!!!!!.!!!!!!!!!!!!!!!!!!!.!!!!!!!!!!!!!!!!!!!.DECLARATIONI
under signed&aman"hawanherebydeclarethat thepro%ect
reportprepared and submitted by me is my original work. The
practical findingsand suggestions in this report are based on the
data collected by me duringmy summer training in the organi;ation
of &F'.Thanking you,CONTENTS2I&T+("=5TI(&&F' ? $
:+(FI'2(#@25TI42S+2S2$+53 M2T3("('(A>"$T$ $&$'>SIS &
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FI&"I&AS5(&5'=SI(&S=AA2STI(&S &
+25(MM2&"$TI(&S $&&2GG. .T'()0+ 2) 4,)+56%*2,)M)
*,) N P K T,*&7,GF9?F, 9.- 9., 9..,GI9?I, ,.0 9.0 9.-
-.-,GH9?H, ..I ,.- 9.F 0.0,GG9?G, H ..- ,.. ,-.0,GG0?GF G.H -.H ,.,
,..I,GGF?GI ,9.. -.G ,.9 ,/.-,GGI?GH ,,., ..G ,.. ,F..,GGH?GG ,,..
/.9 ,.. ,F.FP',054*2,) I6%,'*+Mn to & : &K:K1,GF9?F, GH 0-
/,G,GI9?I, H.9 --G F-G,GH9?H, -,F/ H/, -I0G,GG9?G, FGG. -90-
-I0H,GG0?GF HIII -00H /99H,GGF?GI H0GG -00F -9,/,GGI?GH ,99HF -GIF
.-/F,GGH?GG ,9/II .,FG ,0G/$gainst anall?Indiaaverageconsumptionof
G9kghectare, stateslike:un%ab and $ndhra :radesh consume over ,.0
kg hectare, whileeconomically underdeveloped states like Madhya
:radesh and (rissaconsume about .9 kghectare.C,5)*'<
4,)+56%*2,)kghectareIndia G95hina .I9.I2gypt ./0./#angladesh
,.0./:akistan ,,..,=S$ ,9I.,Thecumulativeproductionof
fertili;ernutrientsduringthefirst ,,?monthperiod )$prilFebruary* of
,GGG?-999 was ,..,mn tons, which is anincrease of 0J over last
year. 5urrently, the urea capacity is about -9.-mntons while
consumption is about -,.I mn tons. In future, demand iseBpected
togrow ata 5$A+of/Jupto F>9-'e thedemand forureawould grow to
around -. mn tons while the estimated production would beabout -9.H
mn tons.I ndia and 5hina are net importers of fertili;ers )both
urea and "$:*due to their domestic demand and hence influence
prices. 3owever, sinceboth these countries are currently out of the
marDet, the prices aresubdued. 5urrently, urea prices are about
L,F/ ton and "$: is L,./ton.TYPES OF
FERTILIZERS$gricultureaccounDsfor athirdof IndiaMsnational income.
It providesemploymentto over I9J of the population. Fertili;ers
playa key role in 6improving the crop yield and hence are integral
to m(dern farming. The main nutrients that deplete with successive
cropping are nitrogen)&*, phosphorus ):* a.nd potassium )1*.
Fertili;ers supplement the naturaldeficiency as well as the
depletion of nutrients. (rganic manure )such ascow dung* fulfils a
small part of total nutrient re8uirement.For optimum yield, a
combination of fertili;ers depending on the stateof soil, seed,
crop, climaticconditions, etcisused. 2BcessiveandN orimbalanced use
of fertili;ers can adversely affect soil., Indian farmers, whoare
generally uneducated, are not able to take a scientific decision on
thefertili;ermiBfrom along?term point of view. Theyusethecheapest
miB.This hasM resulted in damage of soil 8uality due to eBcessive
use of urea,which is cheaper than : or 1 fertili;ers. The key
fertili;ers used in India are6U'(&which supplies around H.Jof
the total nitrogen re8uirementL. It ismanufactured from ammonia in
ao enDf-rgy intensive process. &atural
gasisthepreferredfeedstockasit resultsinlowvariablecost
comparedtonaphtha. $t present, only 09J of the total domestic
capacity is gas based,about .9J is based on naphtha and rest on
fuel, oil and coal.S2)97( +5%(' %=,+%=&*(Supplies ,GJof
thetotal phosphatic nutrients. It is manufacturedbytreating rock
phosphate with sulphuric acid and calcium. #oth rockphosphate and
sulphur are imported.D2!&66,)256 %=,+%=&*(meets 09J of
phospDatic and HJ of nitrogenous nutrients. +ock phosphateis the
mairiM feedstock. :hosphoric acid is manufactured by , treating
rockphosphateC with sulphuric acid. It is then reacted
withammoniatomanufacture"$:.Theintegratedmanufacturershavetheir
ownammonia, phosphoricacidand sulphuric acid plants, while sulphur
and rock phosphate are imported.P,*&++256 3('*272>('+arenot
manufacturedinIndiaduetothenon?availabilityof thebasicfeedstock.
Muriate of potash )M(:* is imported from countries like
5anada,@ordan and Aermany.ThedomDsticfertili;er demandwasmet
largelybyimportstill themid?,GI9s. Toreduceimport dependence,
thegovernment implementeda+etention :ricing Scheme )+:S* in ,GII to
encourage domestic capacitycreation. 2arlier, all fertili;ers were
under government control. 3owever, in,GG-?G., potassium and
phosphatic fertili;ers were deregulated.T=( ,*=(' 4,6%&)2(+
%'(8&7()* 2) P5)?&@ 2) *=2+ +(4*,' &'($COMPANYNAME
A77,4&*2,) U)0(' ECA53$M#$' F2+TI'IO2+S,.9999 TonnesFF5( aonla
,99999 TonnesT$T$ 532MI5$'S .9999 Tonnes1+I#35( -0999
TonnesA&4F5 -,999 Tonnes(SP$' 532MI5$'S ,0999 Tonnes"=&
5$&S I&"=ST+I2S,9999 TonnesS+I+$M F2+TI'IO2+S,9999
TonnesASF5 ,9999 Tonnes+5F thaiH999 Tonnes(ne the reason for strong
presence of kisan urea in :un%ab is that it has,the highest
allocation under the 2SS2&TI$' 5(MM("IT> $5T ) 25$ *.Then
chambal fertili;ers have the - highest allocation I then comes, C
iffcoand? others followintheorder givenabove, 25$inaway puts
a.restriction on the competition between the companies. #athinda
plant beinglocated in :un%ab and near the market its product is
cheaper in the market.the transportation cost is the ma%or factor
in the reason for theM low price ofthe kisan urea produced by
&F'.NFL - A PROFILECOMPANY PROFILEPLANTSPRODUCTSMARKETING
STRUCTUREFINANCIAL PERFORMANCENFL - A PROFILE&ational
Fertili;ers 'imited, )&F'*, a leading producer of
&itrogenousFertili;ers in India, was incorporated on -.rd
$ugust, ,GI/ with twomanufacturing =nits at #athinda and :anipat.
Subse8uently, on thereorgani;ation of Fertili;er group of 5ompanies
in ,GIH, the &angal =nit ofFertili;er 5orporationof
Indiacameunder the&F'fold. The5ompanyeBpanded its installed
capacity I.-F lakh Mts. I installing andcommissioning its 4i%aipur
Aas based :lant in Madhya :radesh.The 4i%aipur :lant was a land
mark achievement in pro%ect management inIndia. The :lant was
completed well within time and approved pro%ect cost,in recognition
of which it was awarded the ,st price in 2Bcellence in
:ro%ectManagement by Aovt. of India. Subse8uently the plant doubled
its capacityto ,/.0- lakh Mts by commissioning 4i%aipurC 2Bpansion
=nit in ,GGI.&F', a profitable public sector undertaking
operates administrative controlof the "eptt. of Fertili;ers in the
Ministry of 5hemicals & Fertili;ers .&F',aMini
+atna65ategory?I5ompany,isamarketleaderinthefertli;erindustrywithamarket
shareof12.6%.The5ompanyMsstrengthliesinitssi;eablepresence,
professional marketingteamanditsstrongdistribution network
nationwide.=reaisanessential commodityunder the2ssential
5ommodities$ct,,G00.The"eptt. of
Fertili;ersplansandmonitorstheproduction, import anddistributionof
fertili;ersandmanagement of subsidyfor indigenousandimported
fertili;ers.&F'entersintoaMemorandumof =nderstanding)Mo=*
withtheAovt. under whichtheAovt. undertakestoassist
&F'withregardtoavailability of inputs, eBpeditious processingof
pro%ects proposals andclearance by environmental authorities, and
in obtaining of 25$ allocations,commensurate with the availability
of fertili;ers from &F' plants. &F' on itspart, undertakes
to adhere to its production and movement plans, achieveits
2ssential 5ommodities $ct allocation and provide regular feed back
tothe controlling department.&F'Ms leading product is 1isan
=rea. The 5ompany alsomanufacturesandmarkets1isan1had)5$&*,
bio?fertili;ersandawiderangeof Industrial :roducts. Inaddition,
&F'withalarge&eBcellenttechnical manpower
basehasmadeamarkineBportingitsspecialisedservices in
india,andabroad.NANGAL PLANTN&*2,)&7 F('*272>('+
L262*(0N&