nks fertiliser mktg.,port operation&tpt 5-1-2011

7/31/2019 Nks Fertiliser Mktg.,Port Operation&Tpt 5-1-2011

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MARKETING AND

TRANSPORTATION OF IFFCOFERTILISERS

N.K.SALHOTRACHIEF MANAGER (Mktg.)


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SALIENT FEATURES : INDIA

Agriculture continues to be the mainstayof Indias economy.

Agriculture Contribution to GDP is 16%.

Two Third of population lives in thevillages.

57% of population depends onAgriculture Sector.

With growing population, land man ratiois declining.


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2007-08 : 114 crore

2008-09 : 116 crore2009-10 : 118 crore2010-11 : 121 crore2011-12 : 123 crore

2006-07 : 217.3 mill te.

2007-08 : 230.8 mill te.

2008-09 : 234.5 mill te.2009-10 : 218.2 mill te.2010-11 : 244..8 mill te2011-12 : 250.0 mill te.

POPULATION ( Number)

FOODGRAIN PRODUCTION


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2006-07 : 217 Lakh te.2007-08 : 226 Lakh te2008-09 : 249 Lakh te2009-10 : 265 Lakh te2010-11 : 281 Lakh te2011-12 : 290 Lakh te.

With growing population, land man ratio is declining. Chances of bringing additional land under Cultivation are remote.

Future increase in agricultural production has to come by way ofincreasing productivity of land already under cultivation.

FERTILISER CONSUMPTION (N+P+K)


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SALIENT FEATURE : INDIA(Contd..)

Future increase in agricultural productionhas to come by way of increasingproductivity of land already under cultivation.

Vital role of fertilizers for increasingagricultural productivity is universallyrecognised.

Share of fertilizers for increasing foodgrain

production is 50%.


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SALIENT FEATURES : INDIA

Geographical Area : 329 mill ha.

Number of Villages : 6 lakh

Agricultural Holding : 120 million

Small & Marginal Farmers < 2ha : 81 %

Farmers Having Land < 2ha : 39 %

Net cropped Area : 141 mill ha.

Gross Cropped Area : 196mill ha.

Cropping Intensity : 139

Gross Irrigated Area : 87 mill. Ha

Share of Gross Irri. Area : 45%


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FERTILISER PRICING - INDIA

Presently, urea is under control and assuch its production, distribution and pricesare controlled by GOI.

Phosphatic and Potassic fertilisers havebeen decontrolled w.e.f. 25th August,92.

GOI is giving fixed subsidy on Phosphaticand Potassic fertilisers and manufacturershave the freedom to fix prices of thesefertilisers.


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YEAR Fertiliser Cons. (000 te) Annual Growth Rate over

previous Period (%)N P K TOTAL N P K TOTAL

1951-52 59 7 0 66

1971-72 1798 558 301 2657 21.8 24.9 26.5 22.9

1991-92 8046 3321 1361 12728 7.1 9.7 7.3 7.7

1992-93 8427 2844 884 12155 4.7 -14.4 -35.0 -4.5

2002-03 10474 4019 1601 16094 2.8 4.1 7.3 3.5

2004-05 11714 4624 2061 18398 5.7 7.3 13.5 6.9

2005-06 12723 5204 2413 20340 8.6 12.5 17.1 10.6

2006-07 13773 5543 2335 21651 8.3 6.5 -3.3 6.4

2007-08 14419 5515 2636 22570 4.7 -0.5 12.9 4.2

2008-09 15090 6506 3313 24909 4.7 18.0 25.7 10.4

2009-10 15580 7274 3632 26486 3.2 11.8 9.6 6.3

FERTILISER CONSUMPTION IN INDIA


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CONSUMPTION (Kg./ha) Consumption RatioYEAR

N P K TOTAL N P K

1951-52 0.4 0.1 0.1 0.5 7.9 0.9 1.0

1971-72 10.9 3.4 1.8 16.1 6.0 1.9 1.0

1991-92 44.2 18.2 7.5 69.8 5.9 2.4 1.0

1992-93 45.4 15.3 4.8 65.5 9.5 3.2 1.0

2002-03 55.1 21.1 8.4 84.6 6.5 2.5 1.0

2004-05 61.6 24.3 10.8 96.7 5.7 2.2 1.0

2005-06 66.0 27.0 12.5 105.5 5.3 2.2 1.0

2006-07 71.1 28.6 12.1 111.8 5.9 2.4 1.0

2007-08 73.6 28.2 13.5 115.3 5.5 2.1 1.0

2008-09 77.1 33.2 16.9 127.2 4.6 2.0 1.0

2009-10 79.6 37.1 18.5 135.2 4.3 2.0 1.0

PER HECTARE CONS. IN INDIA


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ALL INDIA PRODUCTION, CONSUMPTION,

GAP & IMPORTUREA

YEAR CONS. PROD. GAP IMP.

2000-01 192 196 -4 -

2001-02 199 190 9 2.2

2002-03 185 186 -1 1.22003-04 197 190 7 1.4

2004-05 207 202 5 6.4

2005-06 223 201 22 20.6

2006-07 243 203 40 47.2

2007-08 260 199 61 69.3

2008-09 266 199 67 56.7

2009-10 267 211 56 52.1

LAKH MT


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ALL INDIA PRODUCTION, CONSUMPTION,

GAP & IMPORTDAP

YEAR CONS. PROD. GAP IMP.2000-01 59 49 10 8.6

2001-02 62 51 11 9.3

2002-03 55 53 2 3.82003-04 56 47 9 7.3

2004-05 63 52 11 6.4

2005-06 68 46 22 24

2006-07 74 47 27 29

2007-08 75 42 33 27

2008-09 92 30 62 62

2009-10 105 42 63 59

Lakh MT


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ALL INDIA PRODUCTION, CONSUMPTION,GAP & IMPORTMOP

YEAR IMPORTS CONSUMPTION2000-01 26.5 18.3

2001-02 28.1 20.0

2002-03 26.0 19.1

2003-04 25.8 18.4

2004-05 34.1 24.1

2005-06 45.8 27.3

2006-07 34.5 25.9

2007-08 44.2 28.8

2008-09 56.7 40.8

2009-10 52.9 46.3

Lakh MT


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Plants LocationYear of

ProductionExpand

ed in

Annual Production

Capacity(in Lakh MT)

Kalol Gujarat 1975 1997 Urea 5.45

Phulpur U.P. 1981 1997 Urea 14.16

Aonla U.P. 1988 1996 Urea 17.29

Kandla Gujarat 19751981 &1999

DAP/NPK(in bulk) 24.15

Paradeep OrissaAcquired inSept 2005

- DAP/NPK 19.2

IFFCO PLANTS


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IFFCOs PRODUCTS

KANDLA NPK 10:26:26 ( GR-I )NPK 12: 32:16 ( GRII )

DAP 18: 46 : 00

Urea Phos. 17: 44 : 0

PARADEEP

KALOL

NPK 10: 26: 26NPK 20:20:0:13

DAP

UREA

PHULPURI & II UREA

AONLAI & II UREA


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27.17

37.18

64.35

32.26

37.86

70.12

28.84

39.63

68.47

31

40.68

71.68

38.74

43.24

81.98

41.79

44.02

85.81

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

COMPLEX UREA TOTAL

IFFCO PRODUCTWISE PRODUCTION

PERFORMANCE

(Lakh MT)


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SHARE OF COOPERATIVES IN

FERTILISER PRODUCTION

(000 Tonnes)

ITEM 2008-2009

N P2O5

2009-2010

N P2O5

ALL-INDIA 10900 3417 11924 4374

IFFCO 2329 918 2585 1194

OTHERS

COOP.

802 - 819 -

TOTAL COOP. 3131 918 3404 1194

IFFCO (%) 21.4 26.9 21.7 27.5

COOP. (%) 28.7 26.9 28.5 27.5


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GROWTH IN PRODUCTION CAPACITIES

(in lakh MT)

3.96

8.91 8.91

16.17

23.4324.91

32.18 32.18

36.89 36.89 36.89 36.89

42.42

4.16 4.16

8.81 8.81 8.81

21.91

24.15

43.35

43.35

4.16

8.81

19.74

8.81

16.00

0

5

10

15

20

25

30

35

40

45

50

Jan.'75

Apr.'75

Mar.'81

Sep.'81

Jul.'88

Dec.'96

Aug.'97

Dec.'97

Aug.'99

Apr.'01

Apr.'02

Apr.'04

Oct'05

Dec'08

Urea

NPK/DAP


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DEFINITION OF MARKETING

MARKETING IS THE PROCESS OF PRODUCTION ANDEXCHANGE THAT IS CONCERNED WITH FLOW OF

GOODS AND SERVICES FROM PRODUCERS TO

CONSUMERS.

IN POPULAR USAGE, IT IS DEFINED AS DISTRIBUTION

AND SALE OF GOODS. HOWEVER, SELLING IS ONLY

THE TIP OF THE MARKETING ICEBERG.

SOME DEFINED IT AS THE COMMERCIAL FUNCTIONINVOLVED IN TRANSFERRING GOODS FROM

PRODUCER TO CONSUMER.


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AS PER PHILIPS KOTLER

Marketing is defined as a task of creating,promoting, and delivering goods & services to theconsumers and business.

Also marketing deals with identifying and meetinghuman and social needs.

Meeting needs profitably.


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DEFINITION OF MARKETING

INBROADER SENSEMARKETING INCLUDES THE ACTIVITES OFALL THOSE ENGAGED IN THE TRANSFER OFGOODS FROM PRODUCER TO CONSUMER i.e.

NOT ONLY THOSE WHO BUY AND SELLDIRECTLY, WHOLESALE AND RETAIL, BUT ALLTHOSE WHO DEVELOP, WAREHOUSE,TRANSPORT, INSURE, FINANCE, ORPROMOTE THE PRODUCT, OTHERWISE HAVEA HAND IN THE PROCESS OF TRANSFER.


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SET-UP OF IFFCO MARKETING DIVISION

MARKETING DIVISION IS HEADED BYMARKETING DIRECTOR.

SUPPORTED BY SR. EXEC. DIR. (TPTN),GMs/ Jt. GMs IN VARIOUS DISCIPLINES ATMKCO.

THERE ARE DISTN., TPTN, MKTG. SEVICES,AGRI. SERVICES, MKTG. ACCOUNTS,HANDLING & TPTN, P&A, COMMERCIAL,PUBLIC RELAION, TRAINING AND SYSTEM

DEPARTMENTS.


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SET-UP OF MARKETING DIVISION

IFFCO IS OPERATING IN 29 STATES & UTs. TOTAL MARKETING AREA HAS BEEN DIVIDED INTO 5

ZONES NAMELY: NORTH - PUNJAB, HARYANA, RAJ., J&K,H.P.

WEST - GUJARAT, M.P., MAH, CHHATISGARH NORTHCENTRAL U.P., UTTARANCHAL,

BIHAR & JHARKAHND EAST - WEST BENGAL, ASSAM & ORISSA SOUTH - A.P., KAR., TAMIL NADU & KERALA

EACH STATE IS HEADED BY STATE MARKETINGMANAGER SUPPORTED BY ACCOUNTS, P&A,SYSTEM AND AGRI. SERVICES, HANDLING & TPTNAND PUBLIC RELATION DEPTTS.


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EACH STATE HAS BEEN DIVIDED INTONUMBER OF AREA OFFICES RANGINGFROM 1 TO 12 DEPENDING UPON THE

POTENTIAL AS WELL AS MKTG. TERRITORY

STATES OF H.P., J&K, JHARKHAND, ASSAMAND KERALA HAVE NO AREA OFFICES.

U.P. STATE HAVE 12 AREA OFFICES.


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AREA OFFICE IS HEADED BY AREA MANAGER &SUPPORTED BY DY. AREA MANAGER/ FIELDOFFICERS & OTHER RELATED STAFF.

NUMBER OF FIELD OFFICERS DEPENDS UPONTHE POTENTIAL OF THE AREA.

IN SOME DISTRICTS, THERE MAY BE TWO ORMORE FIELD OFFICERS.

A FIELD OFFICERS MAY BE LOOKING TWO ORMORE DISTRICTS ALSO.


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5389

633557645869 5492

6823

60546464

8191

8610

9323

1125811827

12587

23522794

3181 336938943702 3670

5010 52415429

1500

2500

35004500

5500

6500

7500

8500

9500

10500

11500

12500

13500

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

COMPLEX UREA TOTAL

IFFCO SALES PERFORMANCE(000 MT)


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IFFCO & INDUSTRY SALES

YEAR UREA NPK DAP/MAP TOTAL

IFFCO

YEAR 2008-09 5869 2447 2942 11258

YEAR 2009-10 6335 2795 2697 11827

INDUSTRY

YEAR 2008-09 26651 7122 9903 43676

YEAR 2009-10 26448 8203 10392 45043

IFFCO SHARE IN INDUSTRY( % )

YEAR 2008-09 22 34 30 25.8

YEAR 2009-10 24 34 26 26.3


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MANUFACTURER-WISE RANKING IN SALES

( ) PER CENT SHARE

2009-10Rank UREA DAP* NPK

I IFFCO (24) IPL(29) IFFCO (35)

II NFL (13) IFFCO(26) CFL (24)

III KRIBHCO (11) GSFC (9) FACT (9)

IV RCF (11) PPL (9) RCF (6)

V NFCL (8) CFL (6) ZIL (5)

*Including MAP & TSP


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MARKETING CHANNEL

Every manufacturer need a link with thecustomers to sell his products.

The set of intermediates forming this

important link is called themarketing/distribution channel.

Selecting the right channel is the most

important, complex and challenging task forevery business organisation.


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MARKETING CHANNELMarketing Channel in India for Fertilisers can

broadly classified into three categories :

Institutional Agencies

Private Trade

Company owned outletsPrivate trade accounts for 60%.

Institutional agencies including cooperativesaccounts for 35%.

Manufacturers own 5%

As a matter of Policy, IFFCO is channelisingits products thru the Cooperative Channels.


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Cooperative Channels

State Level Federations : 29 District Level Mktg. Soc. : 171

PACS : 86,500

Dealing in Fert. : 41,650 Primary Agricultural Cooperative Societies

(PACS) are the backbone of the coop. mktg.System.

PACS are well spread and cover about 97%of the villages and 95% of the farmingfamilies.


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FERTILISER SALEPOINTSIN INDIA AS ON 31.3.2010

Total Salepoints - 276,313

Private - 215,666 (78%)

Instit. Agencies - 60,647 (22%)


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CHANNEL-WISE DISTRIBUTION OF IFFCO FERTILISERS

IFFCO PLANT

APEX MKT.FEDERATION

Distt./Block

Level Mktg.

Societies

Distt./Block Level

Societies

Village Level Coop

Mktg. Soc. (PACS)

FARMERS

Institutional

Agencies

RETAIL

OUTLETS

FARMERS

SERVICE

CENTRES

32% 60% 4% 4%


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Distribution of fertilisers mainly through the Cooperative

System:

State level Apex Cooperative Marketing Federation

acts as wholesaler

Direct supplies to Societies in some States

IFFCO-NCDC Cooperative Societies

Small quantities to institutional agencies like AgroIndustries Corporation etc

158 IFFCO Farmers Service Centres

MARKETING CHANNELS


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COOPERATIVE STRUCTURE Coop. Structure differs from state to state and

societies at different levels (district/ taluka/village) perform different functions in differentstates.

Generally, the coop. network operates through

a 3 tier system. However, in some statessuch as Haryana, the coop. marketing systemoperate on 2 tier basis, while in some otherslike Gujarat a 3 tier system exists.

At the State Level, Apex CooperativeMarketing Federations act as wholesalers;Marketing Societies at district/taluka level asSub-Wholesalers while PACS, PAMS at grass

root level act as Retailers.


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FARMER SERVICE CENTRES (FSC)

The basic idea of opening FSCs is to provideall inputs under one roof i.e. fertilisers,seeds, agro-chemicals etc.

These Centres also provide technical know-how to the farmers.

At present, there are about 158 FSCs.

The total sales thru FSCs during 2009-10was 5.49 lakh MT ( 4.7% of total sale )with turnover of Rs. 377 crore.


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FERTILISER DISTRIBUTION Fertilisers are produced at 139 locations in the country.

Volume of fertiliser ( indigenous and imported) despatchedin the country during 2009-10 was 53 million MT.

Volume of IFFCO fertilisers despatched during 2009-10was 11.77 million MT(22 % of Industry).

Av. Daily despatch of IFFCO is 15 Rakes.

Distribution of above quantities to the Farmers scatteredin about 6 lakh villages in the country is a Herculean Task.

Fertiliser is further scattered in each nook & Corner of theField.

This is more so due to the fact that fertiliser production isa continuous process whereas consumption is highlyseasonal and confined to 3-4 months in a year and thattoo split into two seasons namely Kharif and Rabi.

Fertiliser being a bulk commodity, its logistics is complexactivity.


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TRANSPORTATION Fertilisers are moved by Rail (73%) & Road

(27%) only. IFFCO RAIL share is 90%. Rail transport is suited for larger volume and

economical for longer distances.

Fertiliser Movement is done by rakes only i.e. BG

Rake - 2500 to 2700 MT for covered wagons andupto 3000 MT for open wagons & MG rake -700

to 800MT

Number of Fertiliser rakepoint : 730out of which used by the Industry is 400-500.

Coastal Movement share is negligible. However,IFFCO has despatched some quantity fromParadeep unit thru coastal movement .


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WAREHOUSING

Warehousing is essential as consumption offert. is highly seasonal.

IFFCO utilizes the services of Central/ State

Warehousing Corporations and CooperativesGodown.

CWC/SWCs Godown are hired mostly at the

Rakepoint.Cooperative Godowns are located mostly atVillage Level.

STORAGE SPACE RESERVED BY


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Agency No ofWarehouses

Space(MT/ Month)

CWC 63 77000 (9%)

SWC 141 162000 (19%)

COOPERATIVES 2180 607000 (72%)

TOTAL 2384 702200

STORAGE SPACE RESERVED BYIFFCO 2009-10


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IMPORT OF FERTILISERS BY IFFCO

IFFCO is handling three types of import:

OMIFCO Urea ( H&T at Port Rs. 939 per tonne).

Imported Urea on GOI A/c

New Mangalore - Rs. 983 per tonne

Pipavav - Rs. 1063 per tonne

Kakindada Deep Water - Rs. 891 per tonne

Krishnapatnam - Rs. 870 per tonne

Plus Transportation as per Statewise per tonne Rates

Imported DAP


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PORTS UNDER OPERATION

1. KANDLA

2. MUNDRA

3. PIPAVAV

4. NEW MANGLORE5. KAKINADA DEEP WATER PORT

6. KRISHNAPATNAM

7. VIZAG

8. TUTICORIN


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IMPORTS BY IFFCO

PRODUCT 2006-07 2007-08 2008-09 2009-10 2010-11

UREA 13.65 15.12 17.36 20.52 24.51

DAP/MAP 7.16 2.19 21.83 15.88 16.11

TOTAL 20.81 17.31 39.19 36.40 40.62

Lakh Tonne

* Including 1.36 lakh MT imported NPK


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DISCHARGE OPERATION


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DISCHARGE OPERATION


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Loading into Trucks


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Bagging & Weighment


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THANK YOU

nks fertiliser mktg.,port operation&tpt 5-1-2011

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