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 & I&T2+:+2T$TI(&+2S='TS $&" FI&"I&AS5(&5'=SI(&S=AA2STI(&S & +25(MM2&"$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&