project 14

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CHAPTER I

INTRODUCTION

Advanced Management College

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INTRODUCTION

Marketing is a human activity directed at satisfying needs and wants through

exchange process. It has been reviewed as an on going process involving a set of

interacting activities dealing with a market, adoring the product and services to

consumers on the bases of reliable market anticipation.

Marketing involves a large number of activities such as market research, produce

development, distribution, pricing, advertising and personal selling. Marketing combines

several activities designed to sense, serve and satisfy consumer needs while meeting the

goals of the organization.

“Marketing is so basic that it can’t be considered a separate function. It is the

whole business seen from the point of view of its final result; that is from the customer’s

point of view”. -Peter Druckers

Marketing starts with identification of specific need on the part of consumer and

ends with the satisfaction of that need. The consumer is found both at the beginning and

at the end of the marketing process.

Marketing is a societal process by which individuals and groups obtain what

they need and want through creating, offering and freely exchanging products and

services of value with others. For managerial definition marketing has often been

described as “the art of selling products”, but people are surprised when they hear that the

most important part of marketing is not selling! Selling is only the tip of the marketing

iceberg.


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Peter Drucker, a leading management theorist, puts it this way:

There will always, one can assume, be need for some selling. But the aim of

marketing is to make selling superfluous. The aim of marketing is to know and

understand the customer so well that the product or service fits him and sells itself.

Ideally, marketing should result in a customer who is ready to buy. All that should be

needed then is to make the product or service available.

The American Marketing Association offers the following definition: Marketing is

the process of planning and executing the conception, pricing, promotion and distribution

of ideas, goods and services to create exchanges that satisfy individual and organization

goals. Coping with exchanges processes calls for a considerable amount of work and

skill. Marketing management takes place when at least one party to a potential exchange

thinks about the means of achieving desired responses from other parties. Marketing

management as the art and science of choosing target markets and getting, keeping and

growing customers through creating, delivering and communicating superior customer

value.

The marketing concept emerged in the mid-1950s and challenged the preceding

concepts. Instead of a product-centered, “make-and-sell” philosophy we shift to a

customer-centered, “sense-and-respond” philosophy. Instead of “hunting”, marketing is

gardening”. The job is not to find right customers for your product, but the right products

for your customers.

The marketing concept holds that the key to achieving its organizational goals

consists of the company being more effective than competitors in creating, delivering and

communicating superior customer value to its chosen target markets.


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Theodore Levitt of Harvard drew a perceptive contrast between the selling and

marketing concepts:

Selling focuses on the needs of the seller; marketing on the needs of the buyer.

Selling is preoccupied with the seller’s need to convert his product into cash; marketing

with the idea of satisfying the needs of the customer by means of the product and the

whole cluster of things associated with creating, delivering and finally consuming it.

The marketing concept rests on four pillars: target market, customer needs,

integrated marketing and profits through customer satisfaction. The selling concept takes

an inside-out perspective. It starts with the factory, focuses on existing products and calls

for heavy selling promoting to produce profitable sales. The marketing concept takes an

outside-in perspective. It starts with a well-defined market, focuses on customer needs,

coordinates all the activities that will affect customers and produces profits by satisfying

customers.

MARKETING CONCEPT

The marketing concept emerged in the mid-1950s and challenged the preceding

concepts. Instead of a product-centered, “make-and-sell” philosophy we shift to a

customer-centered, “sense-and-respond” philosophy. Instead of “hunting”, marketing is

gardening”. The job is not to find right customers for your product, but the right products

for your customers.

The marketing concept holds that the key to achieving its organizational goals

consists of the company being more effective than competitors in creating, delivering and

communicating superior customer value to its chosen target markets.


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Theodore Levitt of Harvard drew a perceptive contrast between the selling and

marketing concepts:

Selling focuses on the needs of the seller; marketing on the needs of the buyer.

Selling is preoccupied with the seller’s need to convert his product into cash; marketing

with the idea of satisfying the needs of the customer by means of the product and the

whole cluster of things associated with creating, delivering and finally consuming it.

The marketing concept rests on four pillars: target market, customer needs,

integrated marketing and profits through customer satisfaction. The selling concept takes

an inside-out perspective. It starts with the factory, focuses on existing products and calls

for heavy selling promoting to produce profitable sales. The marketing concept takes an

outside-in perspective. It starts with a well-defined market, focuses on customer needs,

coordinates all the activities that will affect customers and produces profits by satisfying

customers.


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MARKETING LOGISTICS

“Logistic is the process of planning implementing and controlling the efficient,

effective flow and storage of goods , services and related information from the point of

origin to the point t of consumption for the purpose of conforming to consumer

requirements”

.

Logistic is not a new area of marketing management. it has been around since

the beginning of civilization. It describes the the entire process of materials and products

moving in to ,through and out of the company. The actual work of logistics is support you

in nature. It, involves the integration of transportation, inventory, warehousing, materials

handling, packaging, and information technology.

Logistics helps the inflow of materials in the manufacturing process. It also

helps in the distribution of products to consumers through various marketing channels.

Hence, logistical support is a must for marketing and manufacturing operations ,and

materials handling cannot be avoided in the performance of the logistics .

Logistical management includes the design and administration of the systems to

control the flow of material , work-in-process and finished inventory to support business

unit strategy.

Logistic management is the frame work of 7’R’s-Right quantity of the Right

product or service to the Right place in the Right conditions at the Right cost and the

Right time with Right impression.


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FUNCTIONAL AREA OF LOGISTICS

There are seven important functional areas of logistics.

Network design

Manufacturing plants ,warehouses ,material handling ,distribution and after sale

services are typical logistic facilities. Network design is one of the prime responsibilities

of logistical management .It is required to determine the number and location of all types

of facilities required to perform logistics task. Logistical efficiency directly depends on

the proper design of network and infrastructure.

Information technology

Two major areas that depend on information are

Sales forecasting : It is done to estimate the future requirements of logistics. It

helps inventory management to satisfy anticipated customer requirements.

Order management : Customers order is very important in logistic. Logistic

service are required for external and internal customers.externl customers are those

that consume the products or services and any trading partners that purchase

products or service for resale. Internal customers are organizational unit with in a

company.

Inventory management

The interest of management in better inventory management is much more than it

was a few years back.managemnt knows the need important and practicably of scientific

inventory management. The conflicting objectives of inventory control are reflected in

the seemingly conflicting demands which are made on an inventory manager from tiem

to time.


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Warehousing

Warehouses provide a key link in the physical distribution chain and ,like other

stages of distribution , they are being cutinized by today’s marketing managers. The

location size and capabilities of warehouses can profoundly affect a companies ability to

satisfy its customers and deliver products and services profitably.

Materials handling equipments

Material handling is such an important activity that it cannot be avoided in the

performance of logistics.Materail handling activities should be minimized us it requires a

very high capital investment and direct labor cost. The network of facility forms a

structure from which logistical operation are performed with in a network design frame

work as per the requirement of customers.

Packaging

Packaging includes handling and storage of finished goods. It also emphasizes on

protection from loss and damage.

Transportation

Transportation is an essential feature for any business activity. Goods need to be

transported from one place to another. They are manufactured in the factory and

afterwards they are sent to various destinations and then to the actual user or consumer.


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Transportation system in an organization should be

Efficient

Economic

Reliable

Meeting customer needs in a timely manner

Experienced

Capable of meeting emergencies, special needs


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Transportation

Packaging

Material Handling

EquipmentWarehousing

Inventory Management

Information Technology

Network Design

Functional Areas of Logistics

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TRANSPORTATION

Transport or transportation is the movement of people and goods from one

location to another. Transport is performed by various modes, such as air, rail, road,

water, cable, pipeline and space. The field can be divided into infrastructure, vehicles,

and operations.

Infrastructure consists of the fixed installations necessary for transport, and

may be roads, railways, airways, waterways, canals and pipelines, and terminals such as

airports, railway stations, bus stations, warehouses, trucking terminals, refueling depots

(including fueling docks and fuel stations) and seaports. Terminals may both be used for

interchange of passengers and cargo, and for maintenance.

Vehicles traveling on these networks include vehicles of appropriate types

such as automobiles, bicycles, buses, trains, trucks people, helicopters and aircraft.

Operations deal with the way the vehicles are operated, and the procedures set for this

purpose including financing, legalities and policies. In the transport industry, operations

and ownership of infrastructure can be either public or private, depending on the country

and mode.

Passenger transport may be public, where operators provide scheduled services,

or private. Freight transport has become focused on containerization, although bulk

transport is used for large volumes of durable items. Transport plays an important part in

economic growth and globalization, but has a deteriorating impact on the environment.

While it is heavily subsidized by governments, good planning of transport is essential to

make traffic flow, and restrain urban sprawl.

A mode of transport is a technological solution that makes use of a particular

type of vehicle, infrastructure and operation. The transport of a person or of cargo may

involve one mode or several modes, with the latter case being called intermodal or


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multimodal transport. Each mode has its advantages and disadvantages, and will be

chosen for a trip on the basis of cost, capability, route and speed.

Human-powered

Human-powered transport is the transport of people and/or goods using

human muscle-power. Like animal-powered transport, human-powered transport has

existed since the beginning: It has existed in the form of walking, running and swimming.

Modern technology has allowed machines to enhance human-power. Many forms of

human-powered transport remain popular for reasons of cost-saving, leisure, physical

exercise and environmentalism. Human-powered transport is sometimes the only type

available, especially in underdeveloped or inaccessible regions. It is considered an ideal

form of sustainable transportation.

Although humans are able to walk without infrastructure, the transport can be

enhanced through the use of roads, especially when enforcing the human power with

vehicles, such as bicycles and inline skates. Human-powered vehicles have also been

developed for highly encumbering environments, such as snow and water, by watercraft,

rowing and skiing; even the air can be entered with human-powered aircraft.

Animal-powered

Animal-powered transport is the use of working animals for the movement of

people and goods. Humans may ride some of the animals directly, use them as pack

animals for carrying goods, or harness them, alone or in teams, to pull sleds or wheeled

vehicles. Animals are superior to people in their speed, endurance and carrying capacity;

prior to the Industrial Revolution they were used for all land transport impracticable for

people, and they remain an important mode of transport in less developed areas of the

world.

Air

A fixed-wing aircraft, commonly called airplane, is a heavier-than-air craft

where movement of the air in relation to the wings is used to generate lift. The term is


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used to distinguish from rotary-wing aircraft, where the movement of the lift surfaces

relative to the air generates lift. A gyroplane is both fixed-wing and rotary-wing. Fixed-

wing aircraft range from small trainers and recreational aircraft to large airliners and

military cargo aircraft.

Two necessities for aircraft are air flow over the wings for lift, and an area for

landing. The majority of aircraft also need an airport with the infrastructure to receive

maintenance, 13 unloading of the cargo. Since the 1960s, container trains have become

the dominant solution for general freight, while large quantities of bulk are transported by

dedicated trains.

Road

A road is an identifiable route, way or path between two or more places. Roads

are typically smoothed, paved, or otherwise prepared to allow easy travel; though they

need not be, and historically many roads were simply recognizable routes without any

formal construction or maintenance In urban areas, roads may pass through a city or

village and be named as streets, serving a dual function as urban space easement and

route.

The most common road vehicle is the automobile; a wheeled passenger vehicle

that carries its own motor. Other users of roads include buses, trucks, motorcycles,

bicycles and pedestrians. As of 2002, there were 590 million automobiles worldwide.

Automobiles offer high flexibility and with low capacity, but are deemed with

high energy and area use, and the main source of noise and air pollution in cities; buses

allow for more efficient travel at the cost of reduced flexibility. Road transport by truck is

often the initial and final stage of freight transport.

Water

Water transport is the process of transport a watercraft, such as a barge, boat,

ship or sailboat, makes over a body of water, such as a sea, ocean, lake, canal or river.

The need for buoyancy unites watercraft, and makes the hull a dominant aspect of its

construction, maintenance and appearance.


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In the 1800s the first steam ships were developed, using a steam engine to drive

a paddle wheel or propeller to move the ship. The steam was produced using wood or

coal. Now most ships have an engine using a slightly refined type of petroleum called

bunker fuel. Some specialized ships, such as submarines, use nuclear power to produce

the steam. Recreational or educational craft still use wind power, while some smaller

craft use internal combustion engines to drive one or more propellers, or in the case of jet

boats, an inboard water jet. In shallow draft areas, hovercraft is propelled by large

pusher-prop fans.

Although slow, modern sea transport is a highly effective method of

transporting large quantities of non-perishable goods. Transport by water is significantly

less costly than air transport for trans-continental shipping short sea shipping and ferries

remain viable in coastal areas.

Others

Pipeline transport sends goods through a pipe, most commonly liquid and gases

are sent, but pneumatic tubes can send solid capsules using compressed air. Any

chemically stable liquid or gas can be sent through a pipeline. Short-distance systems

exist for sewage, slurry, water and beer, while long-distance networks are used for

petroleum and natural gas.

Cable transport is a broad mode where vehicles are pulled by cables instead of

an internal power source. It is most commonly used at steep gradient. Typical solutions

include aerial tramway, elevators, escalator and ski lifts some of these are also

categorized as conveyor transport.

Spaceflight is transport out of Earth's atmosphere into outer space by means of a

spacecraft. While large amounts of research have gone into technology, it is rarely used

except to put satellites into orbit, and conduct scientific experiments. However, man has

landed on the moon, and probes have been send to all the planets of the Solar System.


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CHAPTER II

RESEARCH DESIGN


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RESEARCH DESIGN

Research in common parlance refers to a search for knowledge. In fact

research is an art of scientific investigation. The Advanced Learner’s Dictionary of

current English lays down the meaning of research as “a careful investigation or inquiry

especially through search for new facts in any branch of knowledge”.

Research design is the conceptual structure within which research is conducted; it

constitutes the blueprint for the collection, measurement and analysis of data. It is a plan

for selecting of type of information used to answer the research question. It is a

framework for specifying the relationship among the different influencing variables.

For the preparation of the project report several method were used to collect data and

pertinent information. The data required for the studies were collected is primary source.

Detailed questionnaire were prepared for the different departments covering as many

variables as possible

STATEMENT OF THE PROBLEMS

Statement of the problem is to understand the problems facing in transportation with

reference to MCF. Mainly transportation in MCF is mainly controlling by the transport

contractors in this organization. They are responsible for the distribution of trucks needed

in this organization. So this study aims to bring out the problems faced by MCF and by

the contractors in getting sufficient number of trucks.

SCOPE OF THE STUDY

The study based on the transportation with reference to Mangalore chemicals and

fertilizers (MCF) ie; the problems facing in the transportation with reference to MCF.

The scope of the study is a nutshell ie; to give much needed information to the company,

the transport contractors as well as the researchers from the present study.


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OBJECTIVES OF THE STUDY

The main purpose of the project is to identify the strength and weaknesses of

transportation facilities in the organization and plan for improvement in those areas.

1) To study and understand the major problems faced by the truck contractors of

the Mangalore Chemical and Fertilizers.

2) To understand the transport system used by the MCF.

3) To understand the efficiency of transport system.

4) To understand the working system of transport contractors.

LIMITATIONS OF THE STUDY

The following are some of the limitations of the study:

1) The project work was required to be completed within a short period of time. So

time constraint was one of the main limitations of the study.

2) This is an academic effort and it is limited to cost, time and geographical area.

3) As the data is collected form 50 respondents only, generalization to other investors

is inevitable.

4) An interpretation of this study is based on the assumption that the respondents

have given correct information.


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RESEARCH DESIGN OF THE STUDY

The research design constitutes the blue print for the collection, measurement and

analysis of data. The research design is the plan and structure of an investigation so as to

obtain answers to research questions.

The researcher has adopted descriptive research. It is been used to describe what

existed in the field/ market outside where the project study was conducted.

SAMPLING DESIGN

Sampling is simply the process of learning about the population on basis of a sample.

Thus, sampling technique instead of every unit of the universe. Only a part of the

universe is studied and conclusion is drawn on that basis for the entire universe. A sample

is subset of population units. The researcher adopted the simple random sampling

technique for the study.

SIMPLE RANDOM SAMPLING

Simple random sampling refers to that sampling technique in which each and every

unit of the population has an equal opportunity of being selected in the sample. The

researcher has adopted simple random sampling because population is known.

SAMPLE SIZE

The researcher’s main concentration is to reduce the cost substantially. Now if the

researcher surveyed relatively smaller number of units would mean relatively high cost

per interview, hence a sample size consists of 50 for this research


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SOURCES OF DATA

Data is the fact or an event. This data or information is needed for every research

work. The data can be classified into two types: that is

1) PRIMARY DATA

2) SECONDARY DATA

1) PRIMARY DATA

Data originally collected for an investigation are known as primary data. Such data

are originally in character and are generated in large number of survey conducted by

individual researcher on research bodies. For example data collected by the researcher

from the customer in retail outlet. The source of collection of primary data was

questionnaire. The primary data was collected by interviewing the respondents. It was in

the form of survey at different places.

2) SECONDARY DATA

Data which are actually collected for some earlier research work and are

applicable or usable in future research and which already have been passed through the

satisfied process. The secondary data can be divided into two types.

a) Sources internal to the firm, such as company records.

b) Source external to the firm, such as internet, transportation journals.

Secondary data for this study was obtained from company with which the project is

associated, that is MCF, and from journals, Magazines and website.

TOOLS AND TECHNIQUES

The communication method has been done by the researcher by having the

structured non disguised questionnaire. A structured non disguised questionnaire is one

where the lists of questions is in a pre-arranged order where the object of the enquiry is

revealed to the respondent most marketing research studies use this type of


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questionnaire. It may be mentioned in large majority of cases, it is felt that the respondent

should be taken into confidence and clearly told why these survey is being undertaken.

So that the respondent would relies its relevance and give desired information accurately.

The structure questionnaire consists of multiple choices of questions and closed end

questions.

DATA COLLECTION

The researcher has collected the actual data through personal survey with the help

of a structured and non-disguised questionnaire. The researcher has to exercise great care

in choosing the method on the basis of the couple of criteria or consideration, which he

thinks are important for the survey. So within the given short span of time, if the

researcher would like to go ahead with mail survey or e-mail survey or personal

observation never

Be cost effective. So in order to over come from all the issues the researcher has done the

actual fieldwork by personal survey. In this process the researcher has submitted a well-

structured questionnaire to the respondent by meeting them personally.

SOFTWARE USED FOR DATA ANALYSIS

For the data analysis, and the subsequent interpretation the researcher has adopted

advanced version of MS-EXCEL 2003. This software has facilitated the researcher to

construct the frequency table, various kinds of graphs and to find out the average

responses from the sample. By this automated data analysis it has minimized the

researcher’s time constraint and reduced human errors and accurate outlay of

information.


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CHAPTER III

COMPANY PROFILE


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COMPANY PROFILE

Mangalore Chemicals and Fertilizers Limited (MCF), with a turnover of over

Rs .1625 Crores, is the only manufacture of chemical fertilizers in the State of Karnataka.

The factory is strategically located at Panambur, 9 km north of Mangalore City, on the

banks of the Gurpur River, in front of the New Mangalore Port. The plant is well

connected both by rail and road. The West Coast National Highway (NH-17) from Kochi

to Mumbai separates MCF from the New Mangalore port

The Company is a part of the UB Group with shareholding of 30%. Dr, Vijay

Mallya is Chairman of the Board of Directors. The operations are managed by a team of

highly dedicated and experienced professionals.

The Company has capacity to manufacture 2, 17,800 MT Ammonia (intermediate

products), 3,80,000 MT Urea, 2,60,000 MT Phosphates Fertilizers (DAP & NP

20:20:00:13), 13860 MT Ammonium Bi-carbonate (ABC) and 33,000 MT Sulphuric

Acid annually. The design and engineering of the Ammonia / Urea plants was done by

Humphreys & Glasgow Limited London, a leading international firm in the fertilizer field

and their associates, Humphreys & Glasgow Consultants pvt. Lvt. Bombay. (The firm is

now merged with Jacobs Engineering, USA) The phosphatic plant is designed and

engineered by Toyo Engineering Corporation, Japan. PDIL, and Furnace Fabrica the

Indian firms were involved in the construction of ABC and Sulphuric Acid plant

respectively.

Mangalore Chemicals and Fertilizers Limited (MCF), with a turnover of over Rs.1625

Crore, is the only manufacturer of chemical fertilizers in the state of Karnataka. The

factory is strategically located at Panambur, 9 km north of Mangalore City, on the banks


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of the Gurpur River, in front of the New Mangalore Port. The plant is well connected,

both by rail and road. The West Coast National Highway (NH-l7) from Kochi to Mumbai

separate MCF from the new Mangalore port situated near to Mangalore Town.

The Company is a part of the UB Group with Group shareholding of 30%.

Dr. Vijay Mallya is Chairman of the Board of Directors. The operations are managed by

a team of highly dedicated and experienced professionals. The New Mangalore Port is an

all-weather port capable of handling ships up to 30 feet draft. Naphtha, Fuel Oil,

Ammonia and Phosphoric Acid - the main raw material are obtained through the port.

The Company has capacity to manufacture 2,17,800 MT Ammonia

(intermediate product), 3,80,000 MT Urea, 2,60,000 MT Phosphatic Fertilizers (DAP &

NP 20:20:00:13), 13,860 MT Ammonium Bi-Carbonate (ABC) and 33,000 MT Sulphuric

Acid (SAP) annually. The design and engineering of the Ammonia/Urea plants was done

by Humphreys & Glasgow Limited, London, a leading international firm in the fertilizer

field and their associates, Humphreys & Glasgow Consultants Pvt. Ltd., Bombay. (The

firm is now merged with Jacobs Engineering, USA). The Phosphatic plant is designed

and engineered by Toyo Engineering Corporation, Japan. PDIL and Furnace Fabrica the

Indian firms were involved in the construction of ABC and SAP respectively.


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MCF MISSION,VISION AND VALUES

MISSION

To create value for farmers, consumers and other stake holders by providing integrated

Agri-Solutions and leveraging our competencies to develop synergistic businesses.

VISION

1. Turnover of Rs 3000 crores by 2012.

2. PAT of Rs 250 crores by 2012.

VALUES

1. Integrity

2. Customer focus

3. Innovation

4. Teamwork

5. Agility

6. Excellence


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PRODUCTS

The main products manufactured are

AMMONIA

Produced only for the captive Consumption as an intermediate used in the

manufacture of Urea.

UREA

Nitrogenous fertilizer, suitable for most crops and soils. It is in prill form, free

flowing, easy to apply and completely soluble in water

DI-AMMONIUM PHOSPHATE(DAP)

Complex Fertilizer with nitrogen and phosphorous. Black in colour and granular

form. It is free flowing, soluble in water, suitable for most crops and soil

conditions and is used for basal application.

COMPLEX FERTILIZERS

20:20:0, offered in granular form suitable for a range of crops and soils.

GRANULATED FERTILIZER (N:P:K)

Granulated fertilizers supplies three major plants nutrients, namely nitrogen,

phosphorus and potash. Granulated fertilizers are in granular/free flowing,

soluble in water and are suitable for specific crop and soils.

Grades of granulated fertilizers are

1. 17:17:17- General grade suitable for all Crops and soils.

2. 20:20:0- This is a general grade.

3. 16:12:16- It is a Crop specific granulated fertilizer for Coffee. This is

manufactured according to the recommendation of the Coffee Board.

4. 14:6:21-It is also a Crop specific granulated fertilizers for Arecanut.

5. 10:20:10- This is a General grade


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6. 18:18:18- This is a General grade

AMMONIUM BI-CARBONATE(ABC)

A food grade product used as a leavening agent , mainly used in the food

industry. Products extensions have successfully been made in the leather

industry and in making of jaggery. This is a white crystalline product.

MURIATE OF POTASH

It is an imported Fertilizer containing Potash.

SULPHRIC ACID

Produced mainly for augmenting the requirements for manufacture of

DAP/20:20.

Apart from Manufacturing the above Products MCF also trade in the allied

products like.

Micronutrient like Zinc Sulphate, Copper Sulphate, Magnesium Sulphate

and Micronutrient mix in the Brand name of Mangala.

Soil amendments like Mangala Setright

Specialty fertilizers like Mangala Bio-20, Mangala 3X,Mangala Calmax,

Mangala 19:19:19.


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Apart from marketing Fertilizer products MCF undertakes other Social Service

activities. Some of them are described below:

COMMUNITY CARE

UK-MCF-TGB Gram Vikas Project

Some of the developmental activities undertaken by the Trust are:

Adopting Sangankal village in Bellary District, Herur village in Raichur District,

Kulinje village of Kundapur Taluk and Lingappayyana Kadu village in Dakshina

Kannada District for a period of three years for overall development.

The projects undertaken include construction of Community bath and toilets,

providing better infrastructure to the schools, improving their libraries,

construction of community halls and hostels and providing water distribution

systems.

Formation of a Mangala Farm Club in the villages and organizing sports activities,

free health check-up, eye camps, etc. in association with the Lions Club.

Participation in the construction of a 'Mangala Bhavan' Auditorium in the Rotary

School, Moodabidri, Dakshina Kannada District, by giving financial assistance.

Providing Sewing Machines to Mahila Mandals, plant protection equipment to

Yuvaka Mandals, Swasthic Chulhas under the non-conventional Energy Resource

Scheme, community TV sets, etc. in different villages.

Extending financial assistance for surgeries and intra-ocular lens implants to the

disabled in association with reputed eye hospitals.


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HEALTH, SAFETY & ENVIRONMENT

Health

The company is committed to conserve, promote and maintain health and safety in the

work place and encourage attitudes and methods which will lead to improve physical and

mental health of employees.

Safety

Highest priority is accorded to maintain high safety standards. Apart from holding

weekly fire drills, periodical emergency mock drills are conducted onsite. Safety audits

are regularly undertaken by external experts and their recommendations are meticulously

implemented. Gas monitoring and detection systems have been installed at toxic gas

handling areas. Approved personal protective equipment of international standards are

utilized for safe working. The Plant Safety Committee and the

Central Safety Committee are very active. There is a widely publicized" Safety, Health &

Environment Policy" being diligently followed.

Environment Management

The need for a safe and healthy environment is stressed. An effluent treatment and

disposal system was provided in the design stage of the plant itself. Thereafter, advanced

pollution control measures have been regularly incorporated.


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POLLUTION CONTROL MEASURES

Effluent Treatment and Disposal

With the aim of ensuring minimum disturbance to the ecology, all possible precautions

have been taken to avoid pollution. Effluent treatment and disposal systems in a number

of chemical plants in India and abroad have been studied and a suitable system has been

designed and built in consultation with specialists in effluent treatment and allied

engineering activities. The Karnataka State Pollution Control Board has accorded formal

approval after studying the effluent treatment system installed. There is zero liquid

effluent discharge. Suitable modifications have also been made in the Urea plant to

substantially bring down the noise and air pollution levels during plant start-ups and

upsets.


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MARKETING

The MCF fertilizers are sold in five states of peninsular India, viz, Karnataka,

Kerala, Tamil Nadu, Andhra Pradesh, Maharashtra, under the very popular

"MANGALA" brand. Nine Area offices are strategically located and are responsible for

the entire marketing operations (Fig.III).

During the year 2007-08, company has sold 3.76 lakhs MT Urea, 2.50 lakhs MT

DAP/complex, 1.03 lakhs MT of MOP and 1.77 lakhs MT Granulated fertilizers

throughout its marketing territory. Apart from selling its own production, MCF also

outsource and sells allied fertilizers products like Zinc Sulphate, Soil conditioners, liquid

fertilizers etc for the benefit of the farming community.

In order to ensure timely availability of fertilizers to the farmers, an efficient and

extensive network of over 1300 dealers has been built over the years. In addition,

"MANGALA" products are also made available through a chain of co-operative

institutions and agro Kendras.

Being the principle fertilizer manufacturing unit in Karnataka, there is a

commitment to educate the farmers by disseminating the latest agricultural techniques

and modern crop management practices, through the "Mangala Farm Services". Market

development activities are focused towards promoting balanced use of fertilizers with a

view to maintaining good soil health and high productivity so the farmer can get

sustained production.


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LOGISTICS DEPARTMENT

"Logistics is a part of a supply chain which plans, implements and controls the

efficiency, effective forward and reverse flow of storage of goods, service related

information between the points of origins to the point of consumption in order to meet

consumer requirements".

AIM OF LOGISTICS DEPARTMENT

Conveyance of the right product in right time in right quantity and at right place.

Synchronies the movement of Urea with the ECA/NECA allocation programs

enunciated for different District/State.

Reducing the marketing cost.

Since, Fertilizers classifieds under Essential Commodities Act, GOI indicates the

district wise, State wise distribution pattern. Based on the GOI District allocation, the

products are dispatched either by road or rail depending upon the cost and the quantity to

be moved. The field force of MCF has to indent for product based on the allocation

through MCFL connects. These indents are approved by the concerned Area Marketing

Managers and flows into Logistic Department. These indents are allocated to MCF

Contractors through Systems. There are seven Transport Contractors appointed by MCF

to transport the product by road. These Contractors are to provide trucks for the road

movement according to the allotment of indents on day to day basis. The flow of truck is

shown in Fig 1. The Flow of road/rail indent is shown in Fig2.


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ROAD MOVEMENT

OBD ALLOTMENT TO CONTRACTOR

TRUCK ENTRY SLIP

SECURITY CHECKS

WEIGH BRIDGE

LOADING POINT

WEIGH BRIDGE

DOCUMENTATION

TRUCK OUT

(Fig 1)


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FLOW OF DISPATCHES

Marketing Executive Key indent

Area Marketing Manager Approve

indent

Logistic department/ Indent allotment to

contractors

Contractor Allow trucks

Bagging Section loading by Road/Rail

Logistic Department/ Document preparation

Dealers/Godown

Farmers

(Fig 2)


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MOVEMENT BY ROAD

About 40 percent of the production is dispatched by road. The contractors

prepare a Truck Entry Form and get approved by the MCF officials with regards to the

allocation of those districts. On approval of the truck form, the contractor allows the

trucks inside the factory premises. While entering the trucks following points are checked

by the security to ensure safety

Driving license

Ensure that the drivers and conductors foots are protected.

To drive and maintain at a speed of 15 Kms per Hr.

All the trucks entering for loading or unloading are weighed. Weighing of both empty

trucks and the loaded trucks is done to ensure correctness in weight. Empty trucks thus

weighed are sent for loading at product Bagging plant. Any discrepancy noticed in net

weight is sent back for verification at loading point.

Loaded trucks without any discrepancies are provided with documents prepared based on

the Truck Entry Form for reaching their destination.

The documents provided are

Two copies of Gate Pass cum Material Delivery Advice

Two copies of VAT 515.


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1. Truck Entry Request

Basic Truck Entry Request document is given by the Transport Contractor to

the trucks authorizing them for the entry inside the factory premises for loading.

Truck entry request slip contains information such as,

Truck number

Name of the driver and the conductor

Date

Entry number

Quantity

Destination

Product name

Name of the Transport Contractor

Out Bound Delivery Number

Shipment number

ECA/NECA

Time in

Time out

Tare weight

Gross weight

Net weight

Colored Truck Entry Slip are prepared for each product for easy identification.


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2. Gate Pass cum Material Delivery Advice (GPMDA)

GPMDA is a valid document for trucks to move the material from loading

station to destination. It is preprinted stationary. Three copies of GPMDA is prepared and

signed. First two copies are handed over to the driver of the truck. Truck Driver after

delivering the material is advised to get second copy duly acknowledged by the

consignee for having delivered the material. This also forms the document for claiming

transportation cost by the Transport Contractor. For each product separate GPMDA is

prepared. The third Copy forms the office copy.

It Consists information such as,

Product name

Out Bound Number and Date

Value of the product

Consignee name, address, code

Company's name and address

VAT/CST Numbers

Contractors Name

Vehicle Number

Signature of the official in charge

Signature of the driver.

Destination

Bag type

Bag code

Number of bags

Quantity (MT)


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3. FORM VAT 515

Value Added Tax form 515 is an obligatory document for sale of goods

connected with Sales Tax Department. For each product separate VAT 515 is prepared.

It is used as Sales Tax purpose. It should be produced in places like check post etc.

It consists of information's such as

LVO Name, address, TIN of the issuing dealer

Jurisdiction/SVO of the issuing dealer

1. Date of issue of the delivery note by the dealer (consignor).

2. Full address of the place

From which they are consigned

To whom they are consigned

3. Name, address and TIN/CST registration certificate number of the consignee

including his relationship with the consignor, if the consignee is different

from the consignor.

4. Description of the goods

Name or class of goods consigned

Quantity or Weight

Value of the goods.


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5. Name and Address of the owner of the goods vehicle or vessel by which the

goods are consigned.

Registration number of the goods vehicle or vessel.

LR/GC Note number and date.

6. (a) Purpose of transport of goods for sale/ for line sale/ for delivery to the

buyer/ transfer to (shop/ head office/ branch/godown/ deport/principal

after purchase/ stock transfer to (depot/ godown/ branch head office/

commission agent)/ for job work/ return after job work)

(b) Serial number, date and nature of other documents Accompanying the

goods (tax invoice/ (self) Purchase bill/ consignment note/ stock

transfer Memo/ labour charges voucher etc.

(c) Name and signature of the person to whom the goods were delivered

for transporting with status of the person signing.

(d) Name and Signature of the consignor/ his agent/ his manager.

As the Logistic Department works round the clock, working day is divided into

three shifts. The official incharge of these shifts are maintaining Log Sheets for each day.

The Log Sheets indicate the information such as Truck/Wagon supplied or loaded and

balance to be loaded for the subsequent shift. Narration is also made regarding

mechanical failure of any equipment connected with the dispatch. Official incharge will

affix signature at the end of the shift. Day to day record is maintained and updated to

monitor and maintain the district wise allocation.


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METHOD OF PAYMENT TO THE TRANSPORTER

The transport contractor submits bills along with the acknowledged

copies of the GPMDA for having delivered the material to the Logistic Department

officer who is in charge will verify the bills in accordance with the systems and clears the

bills to finance department who in turn makes the payment to the contractor.

The transportation cost is based on the per ton per kilometer basis or slab basis

which are mutually agreed by the Company and the Transport Contractors.

While scrutinizing the bills following points are verified for

Product is delivered to the correct consignee.

Acknowledgement from the consignee having received the material in good

condition.

Any storage is recorded

Delivery within the stipulated period of 7 days.

If any short delivery/cut or torn bags/delay in delivery, corresponding amount is

deducted from the contractor's bill.


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PROBLEMS FACING BY TRANSPORT CONTRACTORS

At present MCF products are dispatched by Rail and Road in the ratio of 60:40.

Since Railway dispatches are controlled by Railway authorities MCF is bound to follow

the rules and regulations of railways in dispatching their products.

Regarding road dispatches MCF have appointed seven contractors for supply of

trucks. MCF has entered into a contract with these transporters. The rates are finalized

on per KM per tonne basis for a specific period. Depending upon revision of diesel

prices accordingly the rates are revised either upward or downward.

Since 40% of their products being moved by road, especially to rural areas MCF

faces a lots of problems in getting trucks through these contractors. Though there are

penalty classes in the agreement the problem persists.

The study aims to bring out the problems faced by MCF and by the contractors in

getting sufficient number of trucks.

Data were obtained from the MCF Transport contractors and their chain of

contractors in and around Panambur through pretested questionnaire, prepared for the

purpose (Appendix-I).

The Study aimed to asses the problem faced in supply of sufficient number of

trucks to MCF for their Road Dispatches.

The Data Collected was analyzed using random sampling method and major

problems faced by them are ranked and focused here below.

Mangalore Port is just opposite to MCF. Since all weather port, there are heavy

imports of fertilizers. All the importers and MCF dispatches their products mostly

to the State of Karnataka by road. So there is heavy demand for trucks.

Poor road condition leading to poor incoming of trucks to Mangalore.


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High freight expected by the truck owners.

Poor inward of ore material for export.

Penalty imposed by Transport officials.

Diversion of trucks due to high freight offered by the competitors.

To Destination where no return loads.

Hilly destination like plantation belts of Coorg and Chickmagalur District.

Most of the “to destinations” are in rural areas.


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CHAPTER IV

ANALYSIS AND INTERPRETATION


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Table-1

Are you a MCF Transport Contractor?

Status No. of respondents Percentage

Yes 30 60%

No 20 40%

Total 50 100%

Interpretation

The above table shows that most of the respondents ie, 60% of the respondents

are MCF transport contractors whereas the rest of the 40% of the respondents are not

MCF transport contractors.


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Chart-1

Are you a MCF Transport Contractor?

Percentage of respondents

60%

40%

Yes

No


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Table – 2

Are you happy in working with MCF


Yes 40 80%

No 10 20%

Total 50 100%

Interpretation

The above table shows that majority of the respondents ie, 80% are happy in working

with MCF whereas we can also see that minority (10%) are still not happy in working

with MCF or they are not still satisfied with the working conditions provided by the

company.


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Chart – 2

Are you happy in working with MCF


80%

20%

Yes

No


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Table – 3

Do you meet the truck requirement of MCF without problem


Yes 35 70%

No 15 30%

Total 50 100%

Interpretation

h

The above table shows majority of the respondents (70%) of the truck contractors thinks

that they meets the truck requirements without any problem to MCF whereas still there

exists a minority group(30%) which thinks that they are not meeting the truck

requirements for MCF.


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Chart – 3

Do you meet the truck requirement of MCF without any problem?


70%

30%

Yes

No


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Table – 4

Do MCF release the monthly allocation of products by adjusting rail

movement


Yes 40 80%

No 10 20%

Total 50 100

Interpretation

The above table shows that majority of the respondents (80%) thinks that MCF release

the monthly allocation of products by adjusting the rail movement whereas a minority ie,

20% of the respondents thinks that the MCF fails to release the monthly allocation of

products by adjusting the rail movement.


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Chart – 4

Do MCF release the monthly allocation of products by adjusting rail

movement


80%

20%

Yes

No


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Table-5

Are you happy with MCF payment


Yes 45 90%

No 5 10%

Total 50 100%

Interpretation

The above table shows that majority of the respondents (90%) thinks that they are

satisfied with the payment of MCF. Where as a minority ie;10% of the respondents think

that they are not at all satisfied with the payment of MCF.


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Chart-5

Are you happy with MCF payment

percentage of respondents

90%

10%

Yes

No


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Table – 6

Since MCF is opposite to Port and all importers have godown in and

around Panambur, Do you think it is one of the main reason to get

trucks


Yes 46 92%

No 4 8%

Total 50 100%

Interpretation

The above table show that the majority(92%) of the respondents thinks that since MCF is

opposite to port and all importers have godown in and around Panambur, and it is one of

the main reason to get trucks. where as a minority (4%) is still exists that it is not the

reason for get the trucks.


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Table – 6

Since MCF is opposite to Port and all importers have godown in and

around Panambur, Do you think it is one of the main reason to get

trucks


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percentage of respondents

92%

8%

Yes

No

Table – 7

Do your trucks deliver the quantity to the consignee within the

stipulated time


Yes 38 76%

No 12 24%


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Total 50 100

Interpretation

The above table shows that majority of the respondents (76%) thinks that the trucks

deliver the quantity to the consignee within the stipulated time. Whereas there exists a

minority having 24% thinks that the truck is not deliver the quantity to the consignee

within the stipulated time.

Chart – 7

Do your trucks deliver the quantity to the consignee within the

stipulated time?


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76%

24%

Yes

No

Table-8

Do you get loading round the year at MCF



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Yes 10 20%

No 40 80%

Total 50 100%

Interpretation

The above table shows that the majority of the respondents (80%) thinks that they are not

getting the load round the year in MCF, whereas still there exits a minority (20%)thinks

that they are getting the load round the year at MCF.

Chart-8

Do you get loading round the year at MCF


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20%

80%

Yes

No


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CHAPTER V

SUMMARY OF FINDINGS RECOMMENDATION AND

CONCLUSIONS

FINDINGS

1. Majority of the respondents (67%) are MCF Transport contractor.

2. Majority of the respondents (87%) are happy in working with MCF

3. Majority of the respondents (67%) are of the opinion that transport contractors are

meeting the MCF’s truck requirements without any problem.


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4. Majority of the respondents (80%) are of the opinion that MCF releases the

monthly allocation of products by adjusting through rail.

5. Majority of the respondents are happy with the current payment system adopted by

the management.

6. Majority of the respondents thinks that Since MCF is opposite to Port and all

importers have godown in and around Panambur is one of the main reason to get

trucks.

7. Majority of the respondents (76%) thinks that the trucks deliver the quantity to the

consignee within the stipulated time.

8. Since the orders are seasonal there won’t be loading through out the year.

SUGGESTIONS

1. Company should focus to increase the number of transport contractors.

2. The company should maintain the correct time of delivery.

3. The company should try to take necessary steps inorder to make sure that all the

transport contractors of the organization are satisfied with the current payment

system adopted by the firm.


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4. Since all respondents are not satisfied with the present working conditions

prevailing in the organization company should take necessary steps so that all the

respondents will be satisfied with the working conditions of the company.

CONCLUSION

The study conducted at Mangalore chemicals and fertilizers limited unveils a

true picture of the problems facing of transportation at MCF. Transportation is an

essential feature for any business activities. Here transport contractors are playing a vital

role in handling the problems in transportation, facing by MCF. Most of the problems

faced by MCF transport contractors are of Universal in the Transportation Trade. MCF


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transports Contractors are glad in their work with MCF. As they cannot increase the

inflow of trucks they have to make use of the best period / time where imports are

minimum and other importers have no loading by road. It’s also concluded that the

Transporters have a long association in the MCF indicates that the Transport contract is

in workable proposition.

BIBLIOGRAPHY

REFERENCE BOOKS

1. PHILIP KOTLER ;Principles of marketing

2. Bardi, Edward, John Coyle and Robert Novacle (2006); management of

transportation, Thomson south western.

3. Chopra, Sunil and Peter meindi (2007) supply chain management, Pearson.


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4. Lay, Maxwell G (1992) Ways of the world; A history of the world’s road

and of the vehicle that used them. Rutgers university press.

5. Stopford Martin (1997) Maritime Economics London; Routledge.

WEBSITES

1. www.manglorechemicals.com

2. www.answers.com

ANNEXURE

1. Name of the Transport Contractor :

2. Are you a MCF Transport Contractor : YES NO

If YES,

since how long you are with MCF : _______ years


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3. Are you happy in working with MCF : YES NO

4. Do you meet the truck requirement

of MCF without problem : YES NO

5. If no, reason :

1)

2)

3)

4)

5)

6. Do MCF release your monthly

allocation by adjusting rail movement : YES NO

7. Do the truck get loaded in

normal time : YES NO

8. Are you happy with MCF payment : YES NO

9. How many trucks you own : ______ Nos.

10. What are the external problems

faced in getting trucks to MCF :

1)

2)

3)

4)

5)


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11. Since MCF is opposite to Port and

all importers have godown in and

around Panambur, Do you think it

is one of the main reason to get trucks : YES NO

12. Are your trucks deliver the quantity

to the consignee within the stipulated

time : YES NO

13. Do you get loading round the year

at MCF : YES NO

14. Any Suggestions :

1)

2)


project 14

Documents

marketing management

marketing process

marketing concepts

seller marketing

aim of marketing

integrated marketing

cash marketing

marketing iceberg