Project Report

ATRAINING REPORT

ONMANAGEMENT INFORMATION SYSTEM

ATNATIONAL FERTILIZERS LIMITED

NANGAL UNIT, NAYA NANGAL

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF

MASTER OF BUSINESS ADMINISTRATION(2003-2005)

ORGANIZATION:- N.F.L. NAYA NANGALSUBMITTED TO :- SHAHIBZADA INSTITUTE OF INFORMATION & TECHNOLOGY, PHASE-7 IND. AREA, MOHALI SUBMITTED BY :- SHIVANI RANA

ROLL NO. 1407MBA-3RD SEM.

Contents

Title Page No.

PREFACE 2ACKNOWLEDGEMENT 3

CHAPTER-1

NFL-A PROFILE 4PLANTS OF NFL AND LOCATION 5

NFL – NANGAL UNIT 8PRODUCTS OF NFL 15

CHAPTER-2

HISTORY OF THE COMPANY 17RESEARCH METHODOLOGY WITHIN NFL 26

CHAPTER-3

INTRODUCTION TO MISREQUISITES OF AN EFFECTIVE INFO.SYSTEM

CHAPTER-4

MIS AT NFL NANGAL UNIT 48

MONTHLY RETURNS 51QUARTERLY RETURN 59HALF YEARLY RETURN 62ANNUAL RETURN 66

LIMITATIONS OF MIS 86

BIBLIOGRAPHY 87

Preface

In any organization, human resources plays the most

important basic function in any aspect of management.

Libralisation, deregulation and competition have irreversibly

altered the face of tradition area of personnel management. Once

relegated to the background as a stiff function, today Human

Resource Management is probably the most crucial step in

achange process. Libralisation and the resulting competitive

pressures have created huge demand for a skilled workforce and

competent managers. But more importantly, organisation changes

have themselves demanded transformations in the ways in which

people are selected, trained, evaluated and rewarded in

organisations. Most change efforts are unlikely to succeed unless

human resource practices create a supportive climate for change.

Why are human ressource practices crucial to

successful change? Jeffrey, a professor at the stanford graduate

school of business, argues that people are the principal source of

competitive advantage for organisations in the current

environment. This is because the traditional sources through

which business firms achieved a competitive advantage are less

important in the current dynamic environment. In past firms

achieved superiority over their rivals through product and process

technology, protected or regulated markets, access to financial

resources and economies of scale. These are less important now

compared to how an organisation manages its people.

In the current scenario - productivity, efficiency and

profitability are the key words. As a result of incorporating

solutions like restructuring, downsizing, one factor gets effected

employee loyalty towards the organisation. When victims leave

organisation, challenge remains in handling those left behind the

survivors. One of the pressing problems today is to identify the

measures to keep the morale of the survivors high. Phychological

health of the employees should be taken care of to ensure future

productivity and success of the organisation. Opportunity for

handling various assignments, multi-skill would enable survivors

to work efficiently along with contributing to their own

development and future employability. Attitudinal reaction of

survivors is normally expected to take negative course but

survivors also enjoy their new position and look towards the

future.

Acknowledgement

In any undertaking there are many individuals

who help keep things on track. It would be impossible to

single out all the people who contributed so generously to this

project and with their comments and suggestions, and ideas.

Sincere thanks are due to the officers, Mr. S.K.KAUSHAL,

CHIEF MANAGER (HRD), Sh. RADHEY SHYAM,

TRAINING OFFICER and staff of Personnel Department Mr.

S.K. BHATT, DY. MANAGER (pers.), MR. TULSI DASS that

extended their wholehearted support in helping me to make my

project. I am grateful and convey my gratitude to

Mr.S.K.SHARMA, his thinking helped form may of my ideas

and his tireless efforts helped me focused on course. Their

insights and guidance talents are dearly appreciated.

I am indebted to all the other members of Personnel

Department, N.F.L. NAYA NANGAL whose timely incredible

support & co-operation went a long way in making it possible to

make an in-depth study the design of the project.

Finally, I thank my parents who have been the

source of Love and Support throughout the project. Without

them the project would never had happened.

Naveen Sharma

CHAPTER-1

National Fertilizers Limited-A Profile

Introduction

National Fertilizers Limited (NFL)- a multi unit, multi product

company is one of India’s largest producers of Nitrogenous

fertilizers with a market share of (2003-04), NFL a schedule-A

and a Mini Ratna Category-1 company has the distinction of

being a profitable public sector undertaking.

Incorporated in 1974, to set up two fertilizer plants at bathinda

(Punjab) and panipat (Haryana), NFL has Emerged as an

industrial giant in the fertilizer sector. Over the years company

has expanded into a multi unit company with four manufacturing

units with varied technology. Three of these units are

strategically located in the high consumption areas of Punjab and

Haryana. The company has an installed capacity of 35.49 lack

Mts of Nitrogenous Fertilizers and has recorded an annual sales

turnover of During 2003-2004.

At present, N.F.L. is operating at:

Nangal (Punjab)

Bathinda (Punjab)

Panipat (Haryana)

Vijaypur (Madhya Pradesh)

The plants at Nangal, Bathinda and Panipat are based on partial

oxidation of fuel oil/high petroleum stock, where as Vijaypur unit

is based on natural gas as feedstock/ raw material. All the plants

are running at more than their rated capacities.

PLANTS OF NFL AND LOCATION

Vijaipur Plant

National Fertilizers

Limited,

Vijaypur,

Distt. Guan

Madhya Pradesh-

473111.

E-mail : [email protected]

Fax    : 07544 - 273089,

273109

Tel.    : 91- 7544 -

273101, 273090

Panipat Plant

National Fertilizers

Limited,

Goanna Road,

Panipat,

Haryana-132106.

E-

mail : [email protected].

in

Fax    : 01742- 2652515

Tel.    : 01742- 2652481

to 485, &

01742- 2655570

Bathinda Plant

National Fertilizers

Limited,

Sabina Road,

Bathinda,

Punjab-151003.

E-mail:  [email protected]

Fax    : 0164- 2270463; 

0164- 2271270

Tel.    : 0164-

2270220/2271200 

Nangal Expansion Plant 

National Fertilizers

Limited,

Naya Nangal,

Distt. Ropar,

Punjab-140126.

Email:   [email protected]

Fax:  01887-220541

Tel.    :  01887-220543

Strategically Located - Urea Plants

Leading Producer of Nitrogenous Fertilizers in the Country.

FERTILIZERS, INDUSTRIAL PRODUCTS &

SPECIALISED SERVICES

Kisan Urea and Kisan Khad - NFL’s Popular Brands

are sold over a large marketing territory spanning the length and

breadth of the country. The Company also manufactures and

markets Bio-Fertilizers and a wide range of Industrial Products,

like Methanol, Nitric Acid, Sulfur, Liquid Oxygen, and Liquid

Nitrogen etc.

NFL has over the years developed a team of

dedicated professionals in the areas of production, maintenance,

Project management, safety and environment control. It’s

professionals are the most sought after in the industry for their

Specialized Services.

NFL is known in the industry for its work culture,

value added human resources, safe working environment,

concern for ecology and its commitment to social up-liftmen. All

NFL units have been certified for ISO-9002 for conforming

international quality standards, and certified as conforming to

international environmental standard i.e. ISO-14001.

NATIONAL FERTILIZERS LIMITED - NANGAL UNIT

As you cross the Sutlej barrages west end, you start

breathing a different air - an air of hope. Your eyes certainly

can’t miss a prosperous township on the right and a gigantic

fertilizer factory of National Fertilizer Limited on the left, which

are the sign of progress that India has achieved since

independence.

With coming up of Bhakra dam and surplus power

available from the project, it was decided by the government of

India to set up a fertilizer factory at Naya Nangal, which went

into production in 1961. The plant was envisaged to produce

calcium ammonium nitrate (CAN)- a nitrogenous fertilizer with

20.5% Nitrogen with 164 MW power consumption. This product

was subsequently upgraded to 25% nitrogen. Initially production

route was power intensive electrolysis process for the generation

of hydrogen followed by high-pressure ammonia synthesis.

Subsequently in 1978, went on stream, another Ammonia Plant

based on fuel oil gasification, which added urea - a nitrogenous

fertilizer with 46% nitrogen to its range of production. In 1984, a

Methanol plant with capacity of 50 MTPD was added, which was

later on raised to 67 MTPD. In 1990, Electrolysis plant was

replaced with Front-end Hydrogen Plant (NMP-1) based upon

reforming of naphtha for production of hydrogen thus reducing

the electrical power consumption.

NFL, Nangal Unit Installed Capacity

Calcium Ammonium Nitrate 3,18,160 MT

Urea 4,78,500 MT

Methanol 22,110 MT

Project Cost Area (including revamp) Rs. 283.11 Crores

Foreign Exchange Component Rs. 118.49 Crores

(Including revamp)

Commissioned (Urea Revamp) 1.2.2001

2001-02

Installed Capacity 2.20 lacks MT

Actual Production 2.11 lacks MT

Journey towards excellence

The Nangal unit of NFL acted as paragon of excellence in the

field of development of Fertilizers industry in India after being

commissioned in1961. The luxuriant growth of NFL Nangal Unit

begins with the commissioning of first fuel oil based fertilizer

plant in India with rated capacity of 900MTPD Ammonia &

1000MTPD urea. A unique synthesis of technologies from M/S

SHELL, M/S LURGI(Germany) & M/S TECHNIMONT (Italy)

give Nangal unit an edge over the contemporary technologies.

The adoption of versatile technologies and desire for related

diversification led to the manufacture of various industrial

products and byproducts like Nitric Acid, Ammonium Nitrate,

Liquid Nitrogen, Liquid Oxygen, Industrial gases etc.

ENVIRONMENT

NFL has a long tradition of nurturing the

environment in and around its manufacturing Units. At NFL, we

believe in sustainable development without degrading the

environment and are fully committed to our responsibility to the

Society. In line with our commitment to this object, we have

installed with state of art effluent treatment facilities at all our

Units. At NFL Vijaypur the Company has adopted cleaner

technology to minimized generation of pollutants.

All the pollutants generated in the manufacturing

process are treated at source and pollution control schemes

have been incorporated at the

inception stage itself.

NFL meets the standards prescribed by the Central

and State Pollution Control boards and ensures that our Pollution

Control measures and upgraded from time to time. The major

facilities available at NFL's operating Units are:

a) Installation of NOX Abatement Scheme along with associated

 sodium nitrite/nitrate plants for    Nitric Acid Plant at Nangal.

b) Provision of Thermal Urea Hydrolyser at Nangal.

c) Facilities for cyanide and chromate treatment of effluent from

 carbon recovery and cooling towers sections at Nangal.

d) Provision of acoustic granulators for reducing dust emissions

 from periling towers at Panipat & Bathinda.

e) Provision of additional electrostatic precipitators on all the

coal

fired boilers at Panipat, Bathinda and Nangal.

The Company has also adopted an extensive Forestations

programmed and has planted more than 1.5 lakes trees of

different species. The once barren stretch of land around NFL

Vijaypur Unit in Madhya Pradesh is now a lush green belt with

about 1.5 lakes trees-which stands testimony to the Company's

Commitment to environment preservation.

SALIENT FEATURES OF NANGAL UNIT

Nangal Fertilizer Factory, with the capacity to produce

3,18,160 tones of Calcium Ammonium Nitrate (CAN) per annum

is the second largest factory in the chain of fertilizers factories set

up by the government of India during the second decade of

planning. Fertilizers production committee in its report submitted

in 1954 recommended the location of this factory along with

heavy water plant at Nangal. The heavy water plant has been

presently dismantled and transferred to Kota in Rajyasthan

To administer this project a company known as Nangal Fertilizers

and Chemical Pvt. Ltd

PLANT AT NANGAL UNIT

There are two types of plants in the Nangal unit: -

Unit Plants

Expansion Plants

Unit Plants: -

Water Treatment Plant

NMP (Nangal Modernization Plant)

Ammonia – I

All these plants are under one head i.e. Deputy Manager.

Nitric Acid Plant

CAN plant

Bagging plant

Heavy Water plant

Expansion Plant: -

Gradual reduction in the power supply to the

fertilizer plant badly effects the production, as also to augment

the fertilizer production at Nangal. The Govt. of India decided to

establish a new fertilizer plant, which came to be known as

Nangal expansion project with an additional annual Nitrogen

Capacity of 152000 tones by using fuel oil as a feedstock. This

plant not only increased the production capacity from to 232000

tones of nitrogen per annum, but also reduced the dependence on

bulk supply of electric power.

Steam Generation Plant

Ammonia – II

Urea Group of Plants

Urea Plant

BEW Plant

HWP

Hydrolyser Plant

Ammonia Storage

Chromate and HCN Treatment Plant

Cooling Towers

POLLUATION CONTROL

On environment and pollution control, NFL has

been taking adequate measure so as to control the emission level

within the standards prescribed by the State Governments and

Minimal National Standards (MINAS). Right from the

beginning, special care has been taken by the Nangal Unit in this

connection. The Unit has the following Affluent Treatments

Plants, the expenses of which are directly allocated to the cost

center:

HCN Chromate Treatment Plant

NOX Abatement Plant

Urea Hydrolyser Plant

Electrostatic Precipitator Plant

Affluent Plants.

Sulphur Recovery Plant.

The NOX emission from Nitric Acid Plant has been

controlled by setting of a small NOX Plant, which is not only

controlling the NOX emission to the atmosphere but also

providing Sodium Nitrate/ Nitrite products, which are the

valuable industrial Product.

MEN POWER IN NANGAL UNIT AS ON 31ST MAY, 2004

Category Men in

position

Officers 262

Workers 1366

Total 1628

Future expansion

To meet the challenges of the ensuing millennium,

the goal of achieving a group turnover of Rs. 10,000 crores from

diverse businesses and a net profit of Rs. 1200 crores has been

projected. NFL has revamped its Urea Plant at Nangal for raising

the annual with installed capacity from 330000 MT to 495000

MT per annum with the additional Capital cost of Rs. 167 crores.

Significant feature of this project would be towards optimum

utilization of Ammonia available within plants besides

enhancement in Product Quality & Environment improvement.

As Revamp of Nangal Urea Plant has already started and plans

are in the pipeline to revamp, replace the existing fuel oil based

plants with change in feedstock to LNG/Naphtha. To retain the

loyalty of the customers and to add value to their brand, NFL has

been planned to setup single window outlets for the farmers to

carry out one stop shopping for supply of total input to the

farmer.

National Fertilizers LimitedNangal Unit Production Records

Ever Best Production / Despatch Record

Ever Best Production Records

Period Production ( MT )

Ammonia Plant Urea Plant

Daily 1,045(7.01.2000) 1,654(8.11.2001)

Monthly 30,117(Dec`1998) 49171(Oct`2002)

Yearly 3,00,840(200304) 4,78,500( 2002-3)

Ever-Best Dispatch Records

PeriodDispatch ( MT )

UREA CAN

Daily 3,440.400( 13.11.1997) 2,364.700(31.01.1984)

Monthly 51,868.350(June`2002) 38364.250( Sep`1975)

Yearly 4,78,514( 2001-02 ) 3,33,147.055( 1976-77)

Nangal Unit awarded ISO-9001:2000 certification Nangal Unit

awarded ISO-9001:2000 certification  Nangal Unit has been

accredited with ISO-9001:2000 the latest version of quality

certification by M/s. KPMG. NFL, Nangal Unit is the first

fertilizer plant in the country to be awarded ISO-9001:2000

certification

PRODUCTS

Kisan Khad and Kisan Urea are two main brand products of NFL

Kisan Khad is produced at the

Nangal Unit in Punjab, NFL's.

Kisan Khad is Calcium

Ammonia Nitrate (CAN)

Nitrogenous fertilizer, contains

25% nitrogen, half Zof that is

Ammonia form and half in

Nitrate form. Availability of

nitrogen in two forms in Kisan

Khad help crops to meet its

initial and long-term Nitrogen

requirements and is unique

feature.

NFL also produces and markets various products like Liquid

Oxygen, Liquid Nitrogen

Nitric Acid, Ammonium Nitrate, Methanol, industrial Sulphur,

Sodium Nitrate, Argon, carbon, Carbon dioxide and technical

Grade Urea (Prills). The company is also producing neem coated

urea:-

NFL DEVELOPS NEEM-COATED UREA

National Fertilizers Limited (NFL) has made strides in

developing a process for manufacture of Neem-Coated Urea on

commercial scale.

NFL has made efforts to harness unique properties of Neem is

regulating release of Nitrogen to crops when mixed into soil and

making available to farmers a more efficient Nitrogenous

fertilizers in the form of its Neem-coated urea primarily based

upon research work conducted by scientists of Indian

Agricultural Research Institute, New Delhi.

After carrying out extensive laboratory as well as field studies.

NFL has found out that Neem-Coated urea produced with a thin

film of Neem oil-water emulsion of specified concentration has

resulted in enhanced shelf life. Reducing caking of material

during storage and increased nitrogen availability to corps at the

time of their growth and hence significantly contributing towards

better crops yields. It has further been reported that the process

developed by NFL in producing Neem-coated urea involves

marginally higher cost.

Process of coating urea with neem

 The process is based on the use of neem in the form of neem-oil

water emulsion, which is prepared in suit and used as such for

spraying over urea Prills

. Neem oil used in the preparation of emulsion is in very small

quantity. The coating of neem oil on the urea prills is in the ratio

of 500 ppm (0.5 Kg. Neem oil per 1000 Kgs. of urea prills i.e.

0.05%). The urea produced by this process has better shelf life in

respect of tendency to cake during storage. Thin layer of neem oil

formed on the urea prills imparts slow dissolution in water

properly. This makes neem-coated urea to release nitrogen to the

plants slowly and over longer period.

In order to test the efficiency of Neem-coated

urea so developed, under the field conditions. NFL has laid 50

field Demonstrations on paddy crop kharif – 2002 season,

covering extensive area spreading up to Panipat, Rothak and

Karnal in the state of Haryana, Meerut and Muzaffarnagar in U.P.

and Bathinda in Punjab. At Meerut / Muzaffarnagar, Panipat and

Bathinda demonstrations were laid under the expert guidance and

supervision of extension wing / KSKs of respective Agricultures

Universities. The results obtained under the general parameters,

including increase in yield, insect pest control and general crops

stand have been very encouraging with an average savings to the

farmers to the extent of around Rs. 700/- per Acre by way of

increased yields and reduction in expenses towards use of

insecticides in paddy crop.

CHAPTER-2

HISTORY OF THE COMPANY

The idea of producing fertilizers was conceived at end of famine in

Bengal & Bihar in 1943 a committee was set under the

chairmanship of Mr.G.S.GOWING in 1944 to suggest a site for

setting up a fertilizer factory. This committee suggested place in

U.P. but this was not found suitable by the govt. Sindri was

finally selected as the site .

The main consideration regarding its location was as follows: -

-To increase the food production

-To raise the economic life of population by providing the decent

employment opportunities

-The basic raw material coke was available locally.

The paper work on the project was started in 1945. Construction

work, however, started in 1947. The factory was commissioned

into production 1951 & was able to attain its full production

capacity within three years. Originally it was started as a

departmental undertaking. In 1956, it was registered under the

companies act named Sindri fertilizer chemicals ltd. (SFCL)

In 1954, the Govt. of India appointed a committee called “The

fertilizer production committee” under the chairmanship of shri

B.C.MUKHRJEE (FCI’Exchairman & Managing Director) to

suggest ways for further expansion of fertilizer production in

India. The govt. however simultaneously issued a directive to the

committee that one of the proposed fertilizer units should be

located near the Bhakra Dam.

The main consideration for setting up a plant in Nangal (PUNJAB)

was that there would not be enough demand for Bhakra Dam. As

such Nangal plant was electrolysis of water.

Heavy water, a bye product in this process could be produced for

the use in these atomic reactors as moderator.

On February 17, 1956 the proposed Nangal factory was

incorporated under the name of NANGAL (fertilizers &

chemicals ltd.)(NFCL) with its registered at Nangal having an

authorized of 31 corers. The name of (NFCL) was changed to

“Hindustan chemicals and fertilizers ltd.”(HFCL) with effect

from July 15,1959.

The FCL Ltd. Was incorporated on Jan 1st, 1961 by

proclamation of the fertilizers & chemicals companies

amalgamation order 1960, having a authorized capital of 75

corers.

With the re-organization fertilizers co-operation of India

with effect from 1st April 1978, The Nangal unit becomes a

constituent unit of the National Fert. Ltd., which has already two

units under it, located at Bathinda (PUNJAB) & Panipat

(HARYANA). 4th plant of national fertilizers ltd., at Vijaypur

(M.P. was commissioned in 1987).

PLANT AT GLANCE

PLANT/PRODUCTS INSTALLED CAPACITY

NANGAL

AMMONIA (UNIT) 66000MT

AMMONIA (EXPN.) 297000MT

C.A.N.(25% NITROGEN) 318160MT

UREA (46% NITROGEN) 495000MT

BHATHINDA

AMMONIA 297000MT

UREA (46% NITROGEN) 511500MT

PANIPAT

AMMONIA 297000MT

UREA (46% NITROGEN) 11500MT

VIJAYPUR

AMMONIA 891000MT

UREA (46% NITROGEN) 1452000MT

CAPITAL COST

NANGAL (UNIT) Rs.98.26 CRORES

NANGAL EXPEN. Rs.302.50 CRORES

PANIPAT Rs.223.50 CRORES

BATHINDA Rs.239.30 CRORES

VIJAYPUR (UNIT + EXPN.) Rs.1520.00 CRORES

SALIENT FEATURES OF THE COMPANY

The company has an excellent track record & high profits,

with highly motivated & dedicated Workers & officers- no

industrial relation problem.

N.F.L. was given the “Mini Ratna Category-1” by govt. of

India in 1998 based on the company’s overall performance

during the preceding years.

The company was ranked 27th in terms of sales according

to business indis super-100 in1998.

A panel of judges for economic times-Harvard Business

School Association of India. Corporate performance award has

selected NFL for 1994, among 213 public sector companies in

the country.

International Greenland society, Hyderabad awarded

N.F.L. “Best environment & ecological implementation award

for the year 1995-96”

CORPORATE OBJECTIVES

N.F.L. is an instrument of society. It has been to serve the

needs of people with scope of its basic objectives.

To achieve this NFL must :

Select capable people to improve their knowledge &

skills on organized basis.

Motivate an enthuse the employees to achieve higher

productivity with team spirit.

Lay down integrated objectives, define individual goals &

maintain an atmosphere conductive to achievement of these

goals.

BASIC OBJECTIVES

In terms of memorandum of association, NFL was setup to

manufacture & market chemical fertilizers, other chemicals and

bye products as well as to provide the allied services. In order to

achieve & maintain a leading position in the production &

marketing of fertilizers, the following micro objectives have been

identified.

MICRO OBJECTIVES

1) Productivity

To achieve the best possible levels of production &

economy in the use of inputs while ensuring safety & proper

maintenance of plant & machinery & pollution control. More

specifically to strive to raise the capacity utilization. To improve

upon consumption norms consistent

2) Research & development

To carry out R&D activities for:

Increasing plant availability.

Saving use of energy in different forms.

Better recovery of salable products.

Process improvements /development.

Increasing utilization efficiency on sustained basis in the

application of chemical fertilizers in combination with other

agriculture inputs.

3) Profitability

To maintain the assets, man & material in most effective &

efficient manner, ensuring reasonable return on investment

commensurate with the principles laid down by the govt. from

time to time, & Generation of increasing internal resources.

4) Marketing& consumption services

To provide to the farmers high quality products in the right

time& in adequate quantities& with a package of modern

agricultural.

Practices at the same time maintaining reputation for fair

business practices.

To further intensify promotional efforts for increased use of

fertilizer & to maximize distribution of company’s products

within the area covered by the company, consistent with

govt. policy.

5) Organization

To develop & maintain an organizational environment &

group initiative, innovation & productivity also sustained fair

deal of & human approach.

6) Growth

To achieve reasonable & consistent growth in the business

of manufacturing & marketing of fertilizer & compatible with

needs of the market.

7) Obligation to society

To conduct the business of N.F.L. in accordance with

ethical & legal standards & to undertake socio – economic

activities, consistent with govt. policies in order to generate good

environment in which co. operates.

INFORMATION TO BE PRECENTED

On the basis of nature of information to be presented before the

management the report can be divided into four groups:-

REPORTS TO PRODUCTION DIVISION

Statement showing actual output achieved against the standard out

put.

Machine and lob our utilization report.

Statement making a comparison of actual capacity worked

against budgeted capacity.

Analysis of idle man-hours.

Analysis of the lost machine hours.

Report showing labor turnover and absenteeism.

Effect on cost productivity of overtime and shift working.

Analysis of cost variances.

Cost of each department or product duly analyzed by

component of cost.

Analysis of stock of raw materials, work in progress and

finished goods.

Analysis maintenance cost.

Analysis of power consumption and cost.

Analysis of ratio of indirect labor cost direct labor cost.

REPORTS TO SALES DIVISION

Statement showing comparison actual sales against

budgeted sales.

Analysis of order on hand, order received and orders

executed.

Product and area wise analysis of sales.

Analysis of sales promotion campaigns.

Analysis of outstanding debtors.

Market survey report on sales trends and the expected

demands for the company’s products in future.

Analysis of gross profit earned in each area on each

product.

Comparing actual selling and distribution expenses with

the budgeted expenses.

REPORTS ON FINANCE DIVISION

Summary of cost receipt and payments are compared with

the cash budget.

Analysis of capital expenditure.

Analysis of working capital.

Analysis of outstanding debtor and creditors.

Statement showing actual profit against the standard profit.

Cash flow statement and funds flow statement

Statement of financial position.

REPORTS ON PURCHASE DIVISION

Analysis of purchase expenses.

Statements comparing actual purchases, consumption and

inventories with standards or budget.

Change in material prices.

Raw materials balances and information when minimum

level or maximum level reaches.

Material price and usage variance reports.

OBJECTIVE OF THIS REPORT

The main objective of this report is to set

the information about the management information system

(Marketing Research) of the NFL’S Manufacturing units through

which the urea is

Dispatched, sold & marketed to the

various states for the fulfillment of their requirements.

Secondly we will also see the market share

of NFL as compared to its competitors in states of Harayana,

Punjab, Himachal Parades, J&K& Union territory of Chandigarh.

Research Methodology Within N.F.L.

Information gathered for the formulation of this project report is

mainly based on the secondary data. It is through discussions

with the different departments such logistics, personnel,

marketing research & others; various information about the

project is gathered. The various data regarding the sales made by

NFL &Urea manufacturing companies was also provided under

the supervision of the marketing department.

LEAD FERTILIZER SUPPLIERS SCHEME

ROLE IN THE LIKELY CHANGED ENVIRONMENT

There is likely to be a situation of partial of

total de –control of fertilizer following with drawl of fertilizer

subsidy as is being discussed lately. Most probably the partial de-

control of prices may prevail for sometime because subsidy

cannot be eliminated entirely. Under the total or partial de-

control situation the L.F.S.may have to play a very vital role in

coordinating various activities of industry with the state

agriculture departments. In the likely changed scenario lead

fertilizer suppliers might be entrusted with the responsibility of

maintaining quality control of fertilizer. The govt. might delegate

many of its functions to the lead fertilizer suppliers in future to

meet the challenging future task.

L.F.S. scheme will have to be strengthened by better infrastructure

facilities, resources& technology.

It will therefore, be appropriate that the lead

fertilizer supplier scheme should not be considered as an

obligatory organization to provide information to the state govt.

but also an important body with official status for coordinating

various functions in the fertilizer development programmers.

SALES PROCEDURE

Introductory portion

National Fertilizers Limited, A Government of INDIA

undertaking, is regarded in the manufacturing & marketing of

fertilizers & various industrial products in the country. At present

it has operating units.

Marketing division of NFL was set up with the following

objectives

1) To arrange fertilizers at the right time, at the right place &

at the right price to the farmer.

2) To evolve modern technology for efficient & judicious use

of fertilizers.

3) To educate the farmers on efficient use of inputs

particularly fertilizers for increasing crop production.

4) To study the demand forecast & to provide after sales

service.

THE MARKET

The state of Punjab, Haryana, Rajasthan, H.P., J&K, UP, MP&

union territories of Delhi & Chandigarh presently from the

marketing area of operation of the company.

Among the state of Punjab has the highest fertilizer consumption

of 170 kg per hectare. In view of the high rate of irrigation

coupled with progressive attitude of the farmers, the state still has

a large potential for fertilizer consumption.

The states of Haryana & U.P. also making

rapid development in agriculture. The state of Haryana is still at a

development stagehand it is expected the rate of fertilizer

consumption shall further increase of irrigation. The U.P. on the

other hand has a good potential for fertilizer consumption as

account of its witness.

The states of Rajasthan & M.P. though

geographically very large remained agriculturally backward due

to a variety of reasons. But the agricultural scene in these states is

fast changing especially with the launching of various minor

irrigation projects in both the states Minor irrigation Schemes

will help in widening the base of fertilizer consumption & thus

the states will offer a great potential in fertilizer consumption

which will be in NFL’s interest in the long run.

The growth in fertilizer consumption in the

states of H.P.&J&K remained quite low owing to inadequate

infrastructure backwardness of the farmers, logistics problem etc.

Both the states have a temperate climate, which is conductive for

fruit crops.

MARKETING INFRASTRUCTURE

As per GOI’S directive 50% of the production is required to be

canalized through the cooperative institutional agencies as such it

was decided to have a twin channel of distribution viz.

1)co-operative /Institutional buyers

2)Private trade.

The cooperative channels comprise of the following agencies.

1) State Marketing federations

2) State agro industries co operations

3) State land development & reclamation cooperation

4) Local points

5) Khad udhyog etc.

The company also has a well knet private dealers network, which

comprise of the dealers appointed under dealer development

scheme.

NFL (Plants)

Cooperative/Institution Private dealers NFL Agro

Services

Buyers

Centers

Societies/Focal Retailers

Retailers

Points

Consumers

(Farmers)

Key Roles of NFL.

Sales Procedure

Generally co-ordination with regard to procurement of orders from

the institutional Agencies Viz., Markfed, Agro etc. is being done

at the zonal officer but the execution of the DI’S procured is done

by the Field Officers. Suppliers to the institutional Agencies are

effected from all the 3 Sources viz., direct by Road from the

plants, from the rake points as also from the warehouses. So far

as suppliers direct by road from the plants are concerned, the

DI’S are placed with the concerned units for execution.

In certain cases even procurement of order is also being done by

the Field Officer’s from the respective district officers of the

concerned institutional Agencies, In the present day difficult

market situation, since the availability of fertilizers has out

stopped demand, a close liaison with the concerned institutional

Agency is required. This helps in effecting dispatches Smoothly.

Sales to private trade

NFL has a well-knit dealer network & the

concerned field officer is required to have a proper liaison with

the dealers of his area. The field officer should make frequent

visits to the dealers for their development, which is important for

the company’s worth. As soon as a rake is placed for loading, the

concerned D & C Section at the unit is sending a telegram to the

concerned field officer regarding placement of the rake. It is the

duty of the field officer to drawn up the dealer wise plan for

disposal of the rake so that the movement the rake arrives,

dispatches can be effected smoothly as per pre-arranged dispatch

plan.

WORKING OF SALES SECTION

Sales section deals with imposing sales tax,

excise duty, freight etc. on the sale of: fertilizers ,industrial

products ,CAN & urea.

Through marketing department the co. get the demand for the

products &it sends DI to production department &the sales

section prepares the invoice for the sold products along with the

sales tax, excise, freight etc. At present excise duty is imposed

@16%. The rate of sales tax varies with the co.

PROCEDURE OF SALES TAX

-FOR REGISTERED COMPANIES(outside Punjab)

If the co. is outside Punjab & is a private co.

then 4% sales tax is imposed & co. have to present C-FORM (it

is a document stating the concession in tax rate).But if it is a

govt. co. then the rate is same but D-FORM is to be given.

-FOR UNREGISTERED COMPANIES(outside Punjab)

If the co. is unregistered then full sales tax is

imposed & the rate depends on the items it may be 10% or 12%.

-FOR REGISTERED COMPANIES (within Punjab)

If the co. is registered within Punjab then no

sales tax isimposed on the items sold to that co.

-FOR UNREGISTERED COMPANIES(within Punjab)

If the co. is unregistered & is within Punjab

then the tax rate differs depending upon the items to be sold

Generally the rate is 8.8% or 10%+surcharge

Industrial products - The marketing department is responsible for

the sale of the products of the co.& the accounting of sales is

done at the sales section .the co. at present is selling two main

industrial products i.e.sodium nitrite& sodium nitrate other

intermediate products such as lumps,methanol,urea &CAN are

also sold .

Three copies of gate pass are required to take the delivery of the

products from the plant

-Original copy& second copy are kept by the buyer

-Triplicate copy is kept by the company

The second copy is very important as it ensures the

convent

Finance department at Delhi fixes the prices of the products for

future on the basis of the record of the marketing department

&the checked consultations by the sales section.

Two types of rebates are given in prices i.e. distance rebate &

quantity rebate to attract the consumers at distant places.

The sales department checks the rates of sales tax ,excise

etc.before sending the information to marketing department

&finally the details of the data are send to Delhi.

UREA:

The same procedure is followed for urea but no sales tax or

excise is imposed on urea& the prices are determined by ministry

of fertilizers at delhi& the prices of urea are same everywhere.

The unit at Nangal is concerned with production of urea

&determination of cost of urea. The rate of urea is (RS 46.50

+RS150 dealer margin).

To cover the difference between cost price & market price subsidy

is provided by ministry of fertilizers.

Except urea all other industrial products are sold throughout the

country but urea can be produced & sold only in sorrounding

areas i.e. J& K, Himachal, Haryana, Punjab, U.P.,Rajasthan.

Organization Chart of Material Department NFL, Nangal Unit

(

S

EXECUTIVE (Purchase)

CHIEF MANAGER(Material)

SR. MANAGER(Stores)

MANAGER(Purchase)

Sr. MANAGER(Purchase)

Dy. MANAGER(Stores)

Asst. MANAGER( Stores)

Dy.MANAGER(Purchase)

Asst. MANAGER (Purchase)

OFFICER(Stores)

EXECUTIVESr. OFFICER

Purchase)

Sr.OFFICER(Stores)

EXECUTIV (Stores)

EXECUTIVE(Purchase)

OFFICER(Purchase)

Organization Chart of Material Department NFL, Nangal Unit

(

S

EXECUTIVE (Purchase)

CHIEF MANAGER(Material)

SR. MANAGER(Stores)

MANAGER(Purchase)

Sr. MANAGER(Purchase)

Dy. MANAGER(Stores)

Asst. MANAGER( Stores)

Dy.MANAGER(Purchase)

Asst. MANAGER (Purchase)

OFFICER(Stores)

EXECUTIVESr. OFFICER

Purchase)

Sr.OFFICER(Stores)

EXECUTIV (Stores)

EXECUTIVE(Purchase)

OFFICER(Purchase)

ATRAINING REPORT

ONEvaluation of satisfaction level of employees with regard to

Personnel policiesAT

NATIONAL FERTILIZERS LIMITEDNANGAL UNIT, NAYA NANGAL

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF

MASTER OF BUSINESS ADMINISTRATION(2003-2005)

ORGANIZATION: - N.F.L. NAYA NANGAL

SUBMITTED TO: - GURU NANAK INSTITUTE OF MANAGEMENT & TECHNOLOGY, MODEL TOWN, LUDHIANA SUBMITTED BY: - Navneet Kaur

ROLL NO. 1403MBA-3RD SEM.