summer internship report gourav kumar pandit 121234

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A SUMMER INTERNSHIP PROJECT REPORT AT Gujarat Narmada Valley Fertilizers & Chemicals Ahmedabad A Project Report Submitted In Partial Fulfilment of the Requirements For The Award of the POST GRADUATE DIPLOMA IN MANAGEMENT TO M.S.RAMAIAH INSTITUTE OF MANAGEMENT BY Gourav Kumar Pandit 121234 PGDM (AUTONOMOUS) BATCH 2012-2014 Under the guidance of Prof. Jamuna A.S M.S.RAMAIAH INSTITUTE of MANAGEMENT NEW BEL ROAD, BANGALORE-560054

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Page 1: Summer Internship Report Gourav Kumar Pandit 121234

A

SUMMER INTERNSHIP PROJECT REPORT

AT

Gujarat Narmada Valley Fertilizers & Chemicals Ahmedabad

A Project Report Submitted In Partial Fulfilment of the Requirements

For The Award of the

POST GRADUATE DIPLOMA IN MANAGEMENT

TO

M.S.RAMAIAH INSTITUTE OF MANAGEMENT

BY

Gourav Kumar Pandit

121234

PGDM (AUTONOMOUS) BATCH

2012-2014

Under the guidance of

Prof. Jamuna A.S

M.S.RAMAIAH INSTITUTE of MANAGEMENT

NEW BEL ROAD, BANGALORE-560054

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Gujarat Narmada Valley Fertilizer & Chemical LTD

Promoted By Government of Gujarat

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STUDENT’S DECLARATION

I hereby declare that the Project Report titles ―A Study on E-Procurement and Vendor

Management at GNFC‖ conducted at Gujarat Narmada Valley Fertilizers and

Chemical LTD, BHARUCH. Under the guidance of Mr Ranjan Bhatt (Project

Manager) and Miss. Sarashar Khan (Executive E-Procurement) Submitted in Partial

fulfilment of the requirements for the degree of

POST GRADUATE DIPLOMA IN MANAGEMENT (AUTONOMOUS)

TO

M.S.RAMAIAH INSTITUTE OF MANAGEMENT

It is my original work and the same has not been submitted for the award of any other

Degree/Diploma/Fellowship or other similar titles or prizes.

Place: Bangalore GOURAV KUMAR PANDIT

Date: Reg. No: 121234

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Gujarat Narmada Valley Fertilizer & Chemical LTD

Promoted By Government of Gujarat

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CERTIFICATE

This is to certify that the Project Report titled “A Study on E-Procurement and

Vendor Management at GNFC‖ conducted at Gujarat Narmada Valley Fertilizers

and Chemical LTD, BHARUCH, Submitted in partial fulfilment of the

requirements for the award of the degree of

POST GRADUATE DIPLOMA IN MANAGEMENT (AUTONOMOUS)

To

M.S.RAMAIAH INSTITUTE OF MANAGEMENT

Is a record of bonafide Training carried out under my supervision and guidance

and that no part of this report has been submitted for the award of any other

degree/diploma/fellowship or similar titles or prizes.

GUIDE:- Prof. Jamuna A.S

Signature:

Name: - Jamuna A.S

Qualifications: - M.A, MBA (HRD), M.Phil.

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Gujarat Narmada Valley Fertilizer & Chemical LTD

Promoted By Government of Gujarat

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ACKNOWLEDGEMENT

I extend my special gratitude to our beloved Dean Shri Prof. H.Muralidharan &

Academic Head, Prof. Purnima Ramaswamy & Programme Head, Prof. Savita

Rani for inspiring me to take up this project.

I wish to acknowledge my sincere gratitude and indebtedness to my project guide

Prof. Jamuna A.S of M.S. RAMAIAH INSTITUTE OF MANAGEMENT

Bangalore for his valuable guidance and constructive suggestions in the preparation of

project report.

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Gujarat Narmada Valley Fertilizer & Chemical LTD

Promoted By Government of Gujarat

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EXECUTIVE SUMMARY

Gujarat Narmada Valley Fertilizers and Chemical (GNFC) is promoted by

Government of Gujarat through GIIC(Gujarat Industrial Investment Corporation)

and were established in the year 1976, which is one of the ―NAVRATNA‖ companies

of Gujarat State. GNFC established itself firmly with diversified product portfolio

from its initial Fertilizer business to Chemical and then on to Information Technology.

The project is about ―A Study of E-Procurement and Vendor Management applied by

GNFC.‖ The reason for choosing these topic is to study how new technologies are

helping companies in their operations and making their business profitable.

Now a day‘s company is looking forward to use new technologies and expand their

business. Systematized study requires proper planning and implementation of the

same, this report explains the process of Vendor Management and their evaluation /

selection process, GNFC is a large scale industry so it‘s requires large quantity raw

materials and requires a good vendors or dealer so the product is reached to the end

user on time.

E-Procurement makes it possible to automate buying and selling over the internet.

Typically an e-Procurement-enabled website will have product comparisons across

vendors and various processes like tendering, auctioning, vendor management, and

catalogue and contract management. High-end e-procurement solutions allow

organizations to define their own processes in the form of workflows - thus utilizing

concepts of business process modelling.

And understanding how the E-procurement process is adopted by GNFC. And E-

procurement is very useful for each and every Government and Companies. It helps to

provide a transparency, using of proper technologies.

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TABLE OF CONTENTS

CHAPTER I - INDUSTRY ANALYSIS

Agriculture sector in India

Fertilizers sectors in India

Information Technology sector in India

Nasscom Review of IT Sector in India

Porter‘s Five Force Model of Fertilizer

Porter‘s Five Force Model of Information Technology

CHAPTER II – COMPANY ANALYSIS

About The Company

Vision and Mission

Product & Services

Certificates and Policy

Awards and Achievement‘s

Distribution & Network

Competitors

Human Resource

Finance

Operation

5 S models at GNGC

SWOT Analysis

Corporate & Social Responsibility

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Chapter III - Discussion on Training

Roles and responsibilities

Description of tasks handled

Contribution to organization

Chapter IV – Analysis of Task/ Research Undertaken

Introduction and Background

Research Design

Statement of the Problem

Objective of research problem

Scope of the Study

Methodology (Flow charts)

Findings

Suggestions

Conclusions

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CHAPTER-1

INDUSTRY ANALYSIS

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INDIAN AGRICULTURE SECTOR

Indian Agriculture is one of the most important sectors in the economy of the country. Agriculture

in itself contributes more than 18.5 per cent of the Gross Domestic Product of the country and

around 60 per cent people of India are dependent on this sector.

The monsoon also has a very significant impact on the Indian agriculture. Because of the shortage

of irrigation system in Indian agriculture most of the farmers depend highly on rainfalls which is

uncertain. The amount of rain determines the nature of the crops and also the production. Indian

agriculture in the majority of the state is looked after by the State Governments rather than the

Central Government. Indian farmers don‘t get a sufficient supply of chemical fertilizer for

agriculture. The main objective of the fertilizer industry is to ensure the supply of primary and

secondary nutrients in the required quantities.

Indian Fertilizer Industry:-

India is primarily an agriculture based economy. The agricultural sector and its other associated

spheres provide employment to a large section of the country's population and contribute about 25%

to the GDP.

The Indian Fertilizer Industry is one of the allied sectors of the agricultural sphere. India has

emerged as the third largest producer of nitrogenous fertilizers. The adoption of back to back Five

Year plans has paved the way for self-sufficiency in the production of food grains. In fact

production has gone up to an extent that there is scope for the export of food grains. This surplus

has been facilitated by the use of chemical fertilizers.

Today, India stands as the third largest fertilizer consumer and producer of the world. It has been

observed that the subsidies on Indian fertilizer have been rising at a constant rate. This is due to the

rise in the cost of production and the inability of the government to raise the maximum retail price

of the fertilizers.

The increase in the production of fertilizers and its consumption acts as a major contributor to

overall agricultural development.

Contribution of Fertilizer industry in the Indian Economy:

Fertilizer industry has a significant good impact on the development of the Indian agriculture

sector. The following points may reflect its contribution.

1. Agricultural development:

With the development of fertilizer industry, Indian agricultural development has been made

possible. It has played a vital role in the green revolution.

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2. Capital Investment:

Fertilizer industry today has more than Rs. 5700 Cr investment and has become one of the

important industries of the economy.

3. Corporate Development:

In the last 30-40 years this industry has become a structured industry. It has made many joint

ventures, multinationals and co-operatives which is one of the unique characteristic of this industry

development in the nation.

4. Regional development:

Gujarat, Maharashtra, Punjab, Uttar Pradesh, Andhra, Assam, Bengal, Rajasthan, Bihar are the

states who have many plants of fertilizers. [These states‘ economy has a high impact of fertilizer

units.]

5. Employments:

This industry has provided shelter to 3.5 lakh families in the last fifty years directly and a number

of supporting industry during the last three decades.

Investment in the fertilizer sector:-

The fertilizer sector attracted huge investment in the past, particularly between mid-70‘s and 90‘s.

However, there was hardly any investment during the 10th Plan. The total investment in the

fertilizer sector by the end of 2005-06 was Rs.25, 923 crores. With the accelerated growth in the

Indian economy, other sectors have high rates of return on investment, but the fertilizer sector has

failed to attract more investment due to low returns.

To increase the capacity of urea by about 12 million tonnes to a total of 31.5 million tonnes by

2011-12, India will need to invest at least Rs.36, 000 crores in the sector at current capital costs.

Fertilizer Industry in India has mainly five sick units. They are badly in need of Coal /Gas/LPG. If

these units get raw material they will contribute to the agricultural sector of the nation. These sick

units include HFC, FCI, MFL, FACT and PPCL. Which are located in the Eastern Region of the

country [will result in some parity in the creation of production capacity of urea in the states of

Bihar, West Bengal, Chhattisgarh, Jharkhand and Orissa, which do not have any urea plant at

present]. It is envisaged that revival of these closed urea units in Eastern India will add an

additional urea capacity of 50 LMT per annum.

The reasons for the sickness of FACT are mainly that out-dated technology of the plant, high

energy consumption norms, large manpower and high fixed costs of the new ammonia plant (900

MTPD)

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INDIAN INFORMATION TECHNOLOGY SECTOR

The Indian information technology sector continues to be one of the sunshine sectors of the Indian

economy showing rapid growth and promise. The information technology industry in India has

gained a brand identity as a knowledge economy due to its IT and ITES (IT Enabled Services)

sector. The information technology industry has become the most robust industries in the world. IT,

more than any other industry or economic fact, has an increased productivity, particularly in the

developed world, and therefore is a key driver of global economic growth.

Economies of scale and insatiable demand from both consumers and enterprises characterize this

rapidly growing sector. Economies of scale for the information technology industry are high. Unlike

other common industries, the IT sector is knowledge –based. Efficient utilization of skilled labour

forces in the It sector can help an economy achieve a rapid pace of economic growth. The IT

industry helps many other sectors in the growth process of the economy including the services and

manufacturing sectors.

The major segments of the industry are IT Services, Engineering Services, R&D Products, and

BPO Services. Much of the activity is centred on service offerings in Banking, Financial Services

and Insurance (BFSI), Hi-Tech and Telecom, Manufacturing, and Retail.

―India's top IT service providers‖ are Tata Consultancy Services, Infosys, Cognizant, Wipro, and

HCL Technologies. These IT service providers are readying plans to gain a bigger share of their

largest market, US, by aggressively chasing contracts being served by multinationals rivals. The

Indian top IT city is as Bangalore, Chennai, Hyderabad, Delhi, Mumbai, and Ahmedabad. Bangalore

is considered as Silicon Valley of India because it is leading IT exporter

Information technology and the Hardware and Software associated with the IT industry, are an

integral part of nearly every major global industry. Both software development and the hardware

involved in the IT industry include everything from computer systems and, to the design,

implementation, study and development of IT and management systems. Owing to its easy

accessibility and the wide range of IT products available, the demand for the IT services has

increased substantially over the years.

The IT sector has emerged as a major global source of both growth and

employment.

The IT industry can serve as a medium of E-governance, as it assures easy accessibility to

information. The use of information in the services sector improves operational efficiency and adds

to transparency.it also serves as a medium of skill formation. Information technology (IT) is defined

as the design, development, implementation and management of computer-based information

systems, particularly software application and computer hardware Today, it has grown to cover most

aspects of computing and technology.

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IT professionals perform a variety of duties ranging from data management, networking, engineering

computer hardware, databases design, to the management and administration of entire systems. With

the already high penetration of conventional personal computer and network technology, coupled

with the growing convergence of information, communication and entertainment, the industry is now

keenly focused on the integration with other technologies such as mobile phones, automobile and

televisions etc., thereby increasing the demand for such jobs. The largest firms globally include

IBM, HP, DELL, and MICROSOFT.

The strong demand for electronics hardware and software in India has been fuelled by a variety of

drivers including the high growth rate of the economy, emergence of a vast domestic market catering

to the new generation of young consumers, a thriving middleclass populace with increasing

disposable incomes and a relatively low cost work force having advanced technical skills.

Indeed, the government has also identified growth of this sector as a thrust area as there remains

great expectation for significant growth. The Indian IT sector has also built a strong reputation for its

high standards of software development ability, service quality and information security in the

foreign market which has been acknowledged globally and has helped enhance buyer confidence.

The industry continues its drive to set global benchmarks in quality and information security through

a combination of provider and industry level initiatives and strengthening the overall frame works,

creating awareness wider adoption of standards and beat practice.

According to National Association of Software and Services Companies

(NASSCOM)

―IT industry has played a key role in putting India on the global map. The IT –BPO sector has

become one of the most significant growth catalysts for the Indian economy. In addition to fuelling

India‘s economy, this industry is also positively influencing the lives of its people through an active

direct and indirect contribution to various socio-economic parameters such as employment, standard

of living and diversity. The industry has played a significant role in transforming India‘s image from

a slow moving bureaucratic economy to a land of innovative entrepreneurs and a global player in

providing world class technology solutions and business services‖.

India is preferred for companies looking off shore their IT and back office functions .it also retains

its low-cost advantage and is financially attractive location when viewed in combination with the

business environment it offers and the availability of skilled people.

.

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Porter’s Five Forces Model

Assessing the Balance of Power in a Business Situation:-

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Porter’s 5 Force Model Analysis

Porter’s Five Force Model for Fertilizer Industry

Bargaining Power of Suppliers:-

Threat of New Entrants (Moderate)

Potential (Reliance, Adani, Laxmi Niwas Mittal etc.) Potential entrants are retailers like GODREJ ADHAR and HARAYALI.

Processing of the raw material requires very large machinery & high processing cost, so it is

not easy for new entrant to cope up with this high investment.

Present co-operative fertilizer (like KRIBHCO and IFFCO) industries captured almost full

rural market getting fertilizer subsidies from government so it is difficult for new entrants to

maintain low price with high production cost.

India does not have potential rock phosphate reserve; it is completely dependent on import of

either rock phosphate or phosphoric acid or Di Ammonium Phosphate.

Bargaining Power of Customers (Medium):-

Spectrum of substitutes available to the farmers is large

Farmers can impose pressure on the government to provide more subsidies.

India is having different climatic conditions over different areas, so all over the year there is

high demand for fertilizers from different localities.

Very high demand & low productivity.

Lack of infrastructure & supply chain for rural India.

Threat of Substitutes(Medium):-

Bio-fertilizers

Manures

E.g. FYM, cattle dung

Organic Fertilizer

Green Manure

E.g. Vegetable and Household waste

Vermin-compost

E.g. Roundworms

Fertilizers given through leaves provided by pesticides, herbicides companies.

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Power of Suppliers (Low) :-

Main source of the raw material for fertilizers production are the natural products.

For production of phosphatic fertilizers, in India there are very few sources of rock

phosphate & phosphoric acid available so this production completely dependent on

import of rock phosphate. Production of fertilizers requires lot of energy supply so it is completely dependent

on the private energy suppliers.

For production of MOP, there is no raw material available within the country so it

has to import completely.

Competitive Rivalry (High):-

Major market captured by public & co-operative companies.

Private companies trying to capture rural market.

Incentive competitiveness between private and public players.

Different suppliers of raw material used by different companies‟ leads to cost

competitiveness.

Companies come up with different products such as completely water soluble

fertilizers, fertilizers applied through drip and micro sprinkler, fertilizers with

micro nutrients so by use these fertilizers less wastage & more efficiency of

fertilizers increases.

Improved techniques & high yielding varieties which require less fertilizers used

by farmers so high competition for sale between different companies.

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Porter’s Five Force Model for IT Sector

Power of Buyers:-

The Indian IT sector has a large numbers of players and few entry barriers for new entrants, Thus,

the buyer has many options to choose from and can clearly articulate their needs. However, the

bigger companies also enjoy the advantage of switching costs. It means that once a particular client

selects a particular company as its partner, it becomes dependent on the company for all its upgrades

and technology requirements making it difficult for the client to switch. Thus, the buyers have a

Medium bargaining leverage.

Power of Supplier:-

Knowledgeable human resource is the largest requirement for the IT sector. Large supply of this

human resource, at low cost is available from around the world. Also, a lot of matured education and

training is easily available. As there exist many competitive suppliers in the market the supplier has

very Low or No power in IT sector.

Competitive Rivalry:-

No huge capital investment is required to start a new company, leading to very large numbers of

small and medium size companies. It is becoming increasing difficult for players to differentiate

which has led to a decrease in margins. However, a few top niche players still enjoy pricing power.

Thus the competition in the sector is High.

Availability of Substitutes:-

Certain countries e.g. China, Korea, Taiwan, Israel have started to develop an environment for

growth of IT sector and emerging as suppliers of these products and services. Indian companies need

to continuously innovate to have an edge over the others. Thus availability of substitutes is Medium.

Threat of New Entrant:-

Set up cost is almost negligible. Further the government policies also promote the entrepreneurs by

providing benefits in terms of tax holidays and building software technology parks. Apart from this

there are many venture capitalists that are ready to fund new starts ups enabling them to scale up

with increased demand and higher margins the threat of new entrant is High.

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CHAPTER-2

COMPANY PROFILE

(Gujarat Narmada Valley Fertilizers &

Chemicals LTD.)

Promoted By Government of Gujarat

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ABOUT THE COMPANY

Gujarat Narmada Valley Fertilizers & Chemicals

Limited. (GNFC), is a joint sector enterprise promoted

by the Government of Gujarat and the Gujarat State

Fertilizers & Chemicals Ltd. (GSFC). It was set up in

Bharuch, Gujarat in 1976. Located at Bharuch in an

extremely prosperous industrial belt, GNFC draws on the

resources of the natural wealth of the land as well as the

industrially rich reserves of the area.

GNFC started its manufacturing and marketing operations by setting up in 1982, one of

the world's largest single-stream ammonia-urea fertilizer complexes. Over the next few

years, GNFC successfully commissioned different projects - in fields as diverse as

chemicals, fertilizers and electronics.

Since inception, GNFC has worked towards an extensive growth as a corporation. A

growth which respects the environment and springs from the progressive vision of

GNFC.

GNFC today has extended its profile much beyond fertilizers through a process of

horizontal integration. Chemicals/Petrochemicals, Energy Sector,

Electronics/Telecommunications and Information Technology form ambitious and

challenging additions to its corporate portfolio. GNFC has an enterprising, strategic

view towards expansion and diversification.

GNFC is further classified into 3 divisions :-

Fertilizers.

Chemical.

Information Technology.

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COMPANY PROFILE

Name of the company: - GUJARAT NARMADA VALLEY FERTILISERS AND

CHMEICAL LIMITED.

(An ISO 140001 & OHSAS 18001 Company)

Promoted by Government of Gujarat

Registered Office:-

P.O.Narmadanagar -392015

Dist. Bharuch , Gujarat India

Phone - +91-2642-247015

Fax - +91-2642-247057

Website – www.gnfc.in

(n)CODE SOLUTIONS.

301, GNFC Info tower, bodakdev, Ahmedabad -380054

Tel :-+91-7940007300

Fax :-+917926857321

Website – www.ncode.in

Size Of the organization: - LARGE SCALE.

Bankers:-

BANK OF BARODA

STATE BANK OF INDIA

STATE BANK OF SAURASHTRA

Company Chairman :

DR. Varesh Sinha

IAS Chief Secretary

Government of Gujarat

Chairman, GNFC.

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Business Profile

Fertilisers: 0.9 million MTPA – Urea Ammonia Nitro- phosphates and Calcium Ammonium

Nitrate.

Chemicals: 1.5 million MTPA – Ammonia, Methanol, Acetic Acid, Formic Acid, Methyl For mate,

Nitric Acid, Ammonium Nitrate Melt, Ethyl Acetate, Aniline, Toluene Di- Isocyanate (TDI) and

Hydro Chloric Acid (HCL).

Imports / Exports : Single Super Phosphate, Muriate of Potash, Urea, Di-Ammonia Phosphate,

Water Soluble Fertilizers, Seeds, Methanol, Acetic Acid.

Agri Services: Agri- Marts, Tissue Culture Plants, Soils Testing, Demonstration Farm etc.

Information Technology: Info-Tower, PKI (Public Key Infrastructure) and Digital Signature

Certificates, e-Procurement, Data Centres, Security and Surveillance Projects and e- Governance

Projects.

(n)Code is a leading & established information technology services provider, engaged in consulting,

services, IT Infrastructure Building and Management, electronic procurement and is a Certifying

Authority licensed by Government of India to issue legally valid Digital Certificates as per the Indian

Information Technology Act, 2000. (n)Code offers an entire gamut of IT Infrastructure Services like

Designing and Building of high technology secure Data Centres.

It is a 360-degree business approach covering process, delivery, business and technology Innovations

that help (n)Code to work collaboratively with clients for cost take-outs, speed to market and new

business opportunities.

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VISION AND MISION STATEMENT

VISION:-

To be technology driven, environmentally responsible joint sector company

manufacturing fertilizers and commodity and specialty chemicals; maintaining highest

standards of operational excellence and innovation for creating sustainable value for all

stakeholders.

MISSION STATEMENT ( COMMITMENT AND EXCELLENCE AT

EVERY STEP ):-

To be the leading provider of chemicals and agriculture inputs through adoption

of state of art technologies and business process.

To have affirm commitment to quality, environment, health and safety.

To empower individuals and organization to manage integrity and accountability

over the net and revolutionize the way security is enabled and trust is established.

To enrich human resources and promote teamwork, innovativeness and integrity.

VALUES:-

A hybrid model that combines the time tested policies and procedures of a government

controlled organization and the essence of corporate culture is being implemented for

GNFC.

The specially trained team of professionals and handpicked top management who had

proven themselves in this field constitute by GNFC.

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GOVERNANCE:-

We are stewards of our shareholders‘ investment and we take that responsibility very

seriously. We are accountable and responsible for delivering superior results that make

a difference in the lives of the people we touch. In 2012 GNFC was listed at 232

positions amongst fortune Indian companies. Gujarat fertilizers and agro sector stands

at 8th position amongst 16 fortune 500 Indian companies

RESPECT:-

We value the unique contribution of each individual. We believe in respect for human

dignity and we respect the need to preserve the environment around us.

EXELLENCE:-

We are committed to deliver and demonstrate excellence in whatever we do. Our main

objective of company is to working together comes to success. GNFC has been from

grassroots of agriculture to the core of chemicals and information technology.

COMMITMENT:-

We set high performance standards for ourselves as individual and our teams. We honor

our commitments in a timely manner. And maintain our quality.

INNOVATION:-

We constantly support development of newer technologies, products, improved

products, better service and management service. We are using the latest technologies

for production more and more so that we can meet the future demand.

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GNFC SUSTAINABILITY THROUGH LEADERSHIP

Started by setting up a mega, world‘s largest, single stream fuel-oil based Ammonia Urea

complex in 1981.

Currently produces 3 popular fertilizers and 12 industrial products.

GNFC is the only manufacture of calcium Ammonia nitrate, a specialty fertilizer, in the

country.

GNFC is the only manufacture of Toluene Di-isocyanate in the entire South-East Asia Region.

GNFC is the largest producer of Formic Acid, Acetic Acid, and Methanol & Aniline.

GNFC has successfully executed 28 projects and 17 revamp schemes at a total cost of Rs.2270

crore.

Profit making company from the first year of commencement of its commercial operations in

the 1982.

Started its Information Technology division in 1999. This is named as ncode a solution which

works on the 4 basic objectives. Privacy, Integrity, Authenticity and Non-Repudiation.

GNFC (IT) division has working on 21 projects and its main project is Gujarat e-Procurement

which works for Gujarat Government for online E-tendering and other services, PKI based.

Present EPS of Rs.18.26 favorably compares with other fertilizer companies.

Infrastructure The Backbone Of Success:-

Materials handling facilities include 1500 MTPD of fuel oil, 2000 MTDP coal and 3000

MTPD of fertilizers.

Facilities for handling 130 million liters per day water.

Self- sufficient in power requirement with power plant of 90.9 MW capacities and 21 MW

capacity Wind Turbo Generators.

Natural Gas Pipeline connectivity from GAIL & Gujarat State Petro net LTD.

Four boilers each having a stream generation capacity of 180 MTPH.

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MAJOR RAW MATERIAL USED BY GNFC

Basic Raw Material:-

Fuel.

Oil.

Natural Gas.

Rock Phosphate.

Sulphuric Acid.

Utilities:-

Coal.

Water.

Electricity.

Catalysts:-

M.S. Tor steel CTD & TMT-bars of diff. sizes from 8mm to 32mm dia.

Ordinary Portland cement.

HCL.

Aluminum.

Mild Steel Plates.

Packaging:-

HDPE Bags.

HDPE Carboys.

M.S.Welded Barrels.

All types of Packaging are done in 50 kg bags.

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Gujarat Narmada Valley Fertilizer & Chemical LTD

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PRODUCTS & SERVICES OFFERED BY GNFC

PRODUCTS:-

AMMONIA

UREA

NITRO-PHOSPHATE

AMMONIA NITRATE

AMMONIA NITRATE MELT

METHANOL

ACETIC ACID

FORMIC ACID

METHYL FORMATE

WEAK NITTIC ACID

ANILINE

NITROBENZENE

TOLUENCE DI – ISOCYANATE

SERVICES:-

AGRI – SERVICES

AGRI – MART

COMMERICAL CERTIFICATE AUTHORITY

e-PROCUREMENT

DATA CENTRE

e- GOVERNANCE

SECURITY & SURVEILLANCE

CLOUD COMPUTING.

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QUALITY & ENVIRONMENT POLICY

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QUALITY STANDARDS CERTIFICATE

OHSAS MANAGEMENT SYSTEM

18001:2007 14001:2004

8 Lead Auditor 12 Lead Auditor

20 Internal Auditor 28 Lead Auditor

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ISO 9001-2008 CERTIFICATE 2013-2015

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Quality Standards Certifications:-

CMMI-SVC Level 3 Certification for

Electronic Certificate Issuance

Electronic procurement related support

Maintenance & facility management

e-Governance system integration project

activities

Datacenter operation & support services

Cloud solution based services.

ISO 27001:2005 Certification for

Information Security Management

System (ISMS) Datacenter

Operations including business continuity

planning

Digital Signature Certificate issuance

PKI Enabled services like e-

procurement

other IT hosting applications‖

ISO 9001:2008 Certification for

PKI

Security Solutions.

IT-SMS as per ISO/IEC 20000 Certification

for

PKI

Procurement

Datacenter operations

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Board of Directors

Board Of Directors

Dr. Varesh Sinha

IAS

Chairman

Dr. Rajiv Kumar

Gupta IAS Managing Director

Shri D. J. Pandian IAS Director

Shri G. C. Murmu IAS Director

Dr. Hasmukh Adhia IAS Director

Shri Atanu

Chakraborty IAS Director

Dr. TT Ram Mohan Director

Shri D. C. Anjaria Director

Dr. Ashok Shah Director

Executive Directors

Shri J. S.

Kochar

Executive Director - IT

Shri R. T.

Bhargava

Executive Director

Shri P. K.

Masare

Executive Director

Shri A. T.

Patadia

Executive Director

Shri R. A. Shah

Executive Director & Chief Finance Officer

Shri J. C. Bhatt

Executive Director

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AWARDS ACHIEVED BY GNFC

National Safety Council, USA: Good Safety Performance.

National Productivity Council: Best Productivity - First, Second & Third Prizes, Best

Productivity for Nitrogenous Fertilizers.

Ministry of Labour, GOI: Good Safety Performance (Thrice)

Federation of Indian Chamber of Commerce & Industry (FICCI) : Best Environment

Preservation & Pollution Control

Indian Chemicals Manufacturers Association (ICMA): Environmental Control & Safety

Fertilizer Association of India (FAI) : For research paper

Best Technical Innovation - pure CO2 enhancement scheme in Ammonia plant

Best Technical Innovation implemented in fertilizer industry (twice)

Best Overall Performance of an operating unit for P2O5 in complex fertilizers

All India Organization of Employers: Outstanding Contribution in the field of Industrial

Relations

National Energy Conservation Award, Dept. of Energy, Government of India: Energy

Conservation Award, Second Prize

Government of India: Award for Energy Conservation

Jawaharlal Nehru Memorial National Award: Effective Energy Conservation Award

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National Suggestion Scheme: Two awards for the company, one for the employee

Indian National Suggestion Scheme (INSAAN): Prizes in different years (thrice), Excellence in

Suggestion Scheme for the Company, Second Prize to the employee (twice)

Texaco Development Corporation (TDC), USA: Licensee of the year for operating gassifier on

more than rated capacity for over a decade

Labour & Employment Dept., Government of Gujarat: Shram Bhushan Award & Rajya Shram

Ratna Award to the employees

Indian Institute of Chemical Engineers (IICE): ICI Award for Excellence in Process / Product

Development

Dept. of Scientific & Industrial Research, Ministry of Science & Technology, GOI FICCI:

National Award for R&D efforts

World Environment Foundation: Golden Peacock Eco Innovation Award

Fertilizers Association of India: Transfer of Improved Farm Technology Award at the national

level

Computer Society of India: CSI-Nihilent e-Governance Award for the best technology

implementation for e-Governance projects

The Government of Gujarat Project e-Procurement handled by (n)Code Solutions – A Division

of GNFC Ltd. has won the CSI-Nihilent e-Governance Awards 2006-2007 in the category of

Government to Business. Award ceremony held at Bangalore on December 1, 2007 at 42nd

Computer Society of India (CSI).

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Achievements of GNFC

Set up the world's largest single stream, fuel oil based Ammonia - Urea plant.

All fertilizers under the brand name of Narmada, along with extensive support activities, have

been well accepted by the country's farmer community.

India's largest producer of Formic Acid, Acetic acid and Methanol.

India's only manufacturer of Glacial Acetic Acid through the cutting-edge Methanol route

India's largest single stream plant of Aniline.

The only manufacturer of Toluene Di-isocyanate in South East Asia.

Record capacity utilizations in all plants, defying the vintage through ingeniously innovative

maintenance measures.

Development of the first indigenous, eco-friendly technology for H2S removal, CATSOL, a

much awarded product of the Company's R&D labs.

GNFC Where Growth is a Way of Life

Other Project Under Development:-

Methylene Diphenyl Di-isocyanate with annual capacity of 100,000 in MT.

Aniline with annual capacity of 70,000 in MT.

Brown Field Ammonia / Urea Complex with annual capacity of 7, 26,600 in MT.

Poly Aluminum chloride with annual capacity of 50,000 in MT.

Dicalcium Phosphate with annual capacity of 25,000 in MT.

Ammonia Sky Gas Plant with annual capacity of 1, 23,700 which is equivalent to 6, 36,000

MT.

Ethyl Acetate with annual capacity of 50,000 in MT.

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DISTRIBUTION NETWORK OF GNFC

GNFC GLOBAL MARKETING NETWORK

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MARKET SEGMENTATION

Whenever the products are in liquid form the segmentation of market area id decided such as a way

that the customers are near to the main complex of GNFC. The products like Urea, Acetic Acid,

Formic Acid, Phosphate are of hazardous nature & hence though sufficient care for it safe handling are

taken, it is preferred to hence sales as near as possible.

Chemicals that GNFC manufactures are being supplied to the global customers also. To increase the

availability GNFC has kept on its list of customer & the parties all over India & therefore GNFC

products are available in any comer of India. GNFC market segmentation is done on the basis of

"Geographical Segmentation" where the market is divided into zones & regions. GNFC have major

market in west zone & commonly in north, south & east region.

GNFC has increased the direction by having mutual understanding with the manufacturers of other

company so that the supply of raw material is supplied in less time & at cheaper cost.

PRICING POLICY

Price of a commodity means the exchange value, which we get through exchange of that commodity in

terms of monetary basis.

The prices of products determine the volume of sale & the amount of profit. Manufactures decide price

on the basis of three factors, they are

The cost of production.

The demand for the product the nature of the competition for the products.

The product price is governed by different polices & the main aim of it is to fetch maximum returns

i.e. best price of its products. Many times it happens that one product may not yield managerial profit

but in view of its demand in present market situation, the prices have to be kept lower than its cost of

production.

CHANNELS OF DISTRIBUTION

Distribution channel means a set of interdependent organization involved in the process of marketing a

product or services available for use or consumption by the following.

In the field of marketing channels of distribution indicates routes as pathways through which goods

and services moves from producers to customers.

The route of channel includes the manufacturer and the ultimate cumulative as well as all intermediaries GNFC has been getting all the three channels of distribution.

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For large consumers/public sectors like IPCL, GSFC, IFFCO, GACL, etc. The

Company has adopted the zero level channel of distribution, where the manufactures goods are

sold directly from manufacturer to customer.

For medium scale consumer where price negotiation, transformation arrangements,

payments follows up are regularly requisites and the quantity requested is not very large.

GNFC has adopted first level of channel of distribution, dealer/ trader/consumers.

Also to top consumers having very small quantity requirement, where price and

availability plays main side in buying decision. GACL has been operating through second level

channel of distribution as follows.

In GNFC the products are sold in two ways:-

DIRECT CONTACT:-

The company also enters into direct contact with other large companies like GSFC, GACL, IPCL,

IOC, IFFCO etc. both the parties, negotiate with each other directly and the terms and conditions of

contract are accepted mutually.

THROUGH DEALERS:-

The company appoints same dealers to sell its products. Such dealers work for the company, discover

customers, negotiate with them and try to expand the market. They charge some commission for their

duty. The company has appointed dealers for the domestic market.

GNFC DISTRIBUTION CHANNELS OF FERTILISERS AND CHEMICAL IS

SAME

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COMPETITORS AND VALUED CUSTOMERS OF GNFC

GNFC MAJOR COMPETITORS

National Fertilizers Limited

Fertilizers & Chemicals Travancore Limited

Rashtriya Chemicals & Fertilizers Limited

Madras Fertilizers Limited

Steel Authority Of India Limited

Neyveli Lignite Corporation Limited

Pyrites, Phosphates & Chemicals Limited

Hindustan Fertilizer Corporation Limited

Chambal Fertilizers & Chemicals Limited

Balaji Fertilizers Private Limited

IFFCO

Gujarat Alkalizes and Chemical Limited

Deepak Fertilizer and Petrochemicals Corporation Limited

Bharat Fertilizer Industries Limited

Coromandal Fertilizers Limited

Gujarat Narmada Valley Fertilizer Co. Limited

Karnataka Agro Chemicals

Godavari Fertilizers & Chemical Limited

Gujarat State Fertilizers & Chemicals Limited

Southern Petro Chemical Industries Corporation Limited

Maharashtra Agro Industrial Development Corporation

Zuari Industries Limited- Fertilizer Limited

Mangalore Chemicals & Fertilizers Limited

COMPETITOR OF (n) CODE SOLUTION IT DIVISION

Tata Consultancy Services.

Sify

E-mudra

National Informatics Centre

BSNL

MTNL.

Page 39: Summer Internship Report Gourav Kumar Pandit 121234

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CUSTOMERS FERTILIZER:-

Gujarat State Fertilizer Corporation

Gujarat National Fertilizer Corporation

IFFCO

Deepak Nitrite

Deepak Fertilizer

Gujarat Alkalizes and Chemical limited

PHARMACUTICALS:-

Dr. Reddy's

Torrent

Ranbaxy

Sun Pharmacy

Lupine Laboratory

TEXTILE:-

Arvind Mills Limited

Ashima Industries Limited

AGRO-CHEMICALS:-

Gujarat Agro Chemicals Limited.

Bildg Chemicals

Arti Industries

Meghamani Organics

REFINERY:-

IOC

IPCL

Reliance Hajira&Jamanagar

HLL

PAPERS:-

BILT

Rama New Print

JK Paper.

Page 40: Summer Internship Report Gourav Kumar Pandit 121234

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Product and Service Portfolio

Products:-

Ammonia – Ammonia Plant is the largest fuel-oil-based plant in which was commissioned in the

year 1982, with technology partners like Linde and BARF from Germany, Texaco. With considerable

de-bottlenecking and in- house improvements. Ammonia plant has been able to achieve an annual

production capacity of 549,502 MT.

Urea – Urea Plant is the largest fuel-oil-based single stream plant in India which was commissioned

in the year 1982, with technology Partner from Italy. The annual capacity of plant is 636,900 MT.

Nitro-Phosphate – Ammonia Nitro-Phosphate was commissioned in September 1990 with

technology partner BASF Germany. This Plant has an annual capacity of 142,500 MT. GNFC market

its Ammonia Nitro-Phosphate fertilizer under the brand name of‖ NARMADA PHOS‖.

Calcium Ammonia Nitrate – Calcium Ammonia Nitrate is widely used as a fertilizer for all

upland crops, especially commercial and cash crops, to avoid soil acidity or alkalinity. This Plant has

an annual capacity of 142,500 MT.

Ammonia Nitrate Melt – Ammonia Nitrate Melt is widely used in the manufacturing of

fertilizers like Calcium Ammonia Nitrate, Ammonia Nitro –Phosphate and also in explosives,

pharmaceutical, pyrotechnics, herbicides.

Methanol – GNFC through its 3 Methanol plants has the country‘s largest annual capacity of

268,700 MT. Its technology partners are Linde and ICI from Germany and UK.

Acetic Acid – with an annual capacity of 100,000MT, GNFC has the largest capacity of

manufacturing Acetic Acid in the country. Acetic Acid is useful in diverse applications in Textile

Industry.

Formic Acid – commissioned in February 1989, Formic Acid plant has an annual capacity of

10,000 MT, which is largest in the country. Formic Acid is extensively used as a coagulant for

obtaining rubber from Latex.

Methyl Formate – plant was commissioned in the year 1989 with technology support from

Kemira OY Finland. These plants have annual capacity of 22,800 MT.

Nitric Acid – weak Nitric Acid is used in the manufacturing of fertilizers, Ammonia Nitrate and

other explosives. It is also used in making Chemical Salts also.

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Concentrated Nitric Acid – Concentrated Nitric Acid is used as a raw material in the

manufacturing of Aniline and TDI. Three concentrated nitric Acid Plants have a total capacity of

116,600 MT. the technology is supplies by Plinke, Germany.

Aniline – GNFC has the country‘s largest capacity of 35,000MTPA for manufacturing Aniline. The

Aniline Plant was commissioned in the year 1995 and emloys technology from DuPont USA.

Nitrobenzene – Commissioned in the year 1995, Nitrobenzene plant has an annual capacity of

47,250 MT. The technology partner is Chematur, Sweden.

Toluene Di- Isocyanate – plant was commissioned in the year 1998 and has annual capacity of

14,000 MT. GNFC is the only producer of Toluene Di- Isocyanate in the entire South East Asia. The

technology partner is Chematur, Sweden.

UREA FILE PHOTO

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Services Offered by GNFC

Agri – Services – GNFC offers a comprehensive range of products and services to the Farmers.

Field demonstration

Crop seminars

Agriculture exhibition

Retailer training program

Soil testing and promotion of farm and manure and vermin compost

Agri – Mart - Is the one- stop solution to farmers for their entire agricultural requirement. It

proposes to establish three tier retail Agri – Market structure named ―Narmada Agri – Mart.

GNFC IT Division Services:-

Info- Tower – GNFC Info-Tower is a unique idea of providing ready to use infrastructure, with

electrical and air- conditioning, required by IT companies. Under one roof it is a hub for major BPO

and ITeS.

Commercial Certifying Authority – (n) Code Solutions has established its position as a market leader

in Digital Signature Certificates (DSC) issuance and PKI technology in India. It tissue DSCs for many

application like E-filling for MCA 21, Income Tax, DGFT, IRCTC, IFFCO and many more

Approximately 900,000 has been issued till 31 March 2013.

E-Procurement:-

(n)Code Solution‘s portal www.nprocure.com, facilitates and manages all facets of e-Tendering and e-

Auctions. It caters to all the Gujarat State Governments Departments, Boards and Corporation and

several others PSUs. More than 92,000 tenders worth over Rs.1, 60,000 crore have been completed

successfully on this portal. And Approximately 35,000 thousand e- Tenders are handled till 31st March

2013.

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Data Centre’s:-

(n)Code Solutions provides services like Consulting, Designing construction and management of

secure Data Centre‘s. It has executed 22 Data Centre‘s. Projects on turnkey basis for Government of

Gujarat, ONGC, GUVNL, SSNNL, MDL Mumbai, MPMKVVCL Bhopal, PSPCL Punjab.

Data Centre’s at Info- Tower Ahmedabad

E-Governance:-

(n)Code Solutions provides several e-Governance solutions making innovative use of Information

Technology. The solution thus provided ease administrative tasks or help Government offer better,

cheaper and more transparent services to its citizens. It has implemented a mineral Administration

solution for the Mining Department of Government of Gujarat and Karnataka. It has also implemented

a card-based Solution for Department of Health for providing cashless medical to 35 lakh BPL

families in Gujarat.

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Security & Surveillance:-

(n)Code Solution high tech security and surveillance Solution Based on CCTV & Video analytics

including setting up of control centres. It‘s implementing several high profits for security of critical

establishments based on these technologies.

Cloud Computing:-

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HUMAN RESOURCE MANAGEMENT

The Company believes that its human resources have been pivotal force to accelerate the growth of the

organization right from its inception and it has been the Company‘s continuous endeavor to create an

environment where people excel and feel a sense of belongingness to the organization. The Company

makes continuous and concerted efforts not only to groom its human resources to meet with the

present and future challenges in the field of Technology and Management functions but also focuses

on providing an environment conducive for growth of employees and organization in the rapidly

changing Industrial scenario. To support the growing and expanding business needs, talent acquisition

and development at all levels has remained a focus area of the Company. The employees have been

regularly groomed through need based training & development programs organized by inviting expert

faculties from outside as well as with the help of internal faculties in addition to deputing the

employees to attend specialized training programs organized by the reputed training institutes in the

country.

The Company has always remained conscious about the importance of safety, environment and health

aspects and accordingly, training programs on safety awareness, environmental aspects, health

awareness, etc. were organized in-house during the year.

The Company is continuously endeavoring to improve industrial relations by proactive initiatives /

actions and as a result very harmonious, cordial and healthy industrial relations through-out the year

led to an atmosphere conducive for the sustenance of growth and enrichment of value for the

shareholders.

The total strength of the human asset of the Company as on 31st March, 2013 was 3,660.

Employee Qualification Chart:-

Engineers

14% Post-

Graduates

8%

Doctors and

Professional

s

2%

Graduates

28%Diplomasan

d it is

36%

Other

Including

Unskilled

12%

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TRAINING CENTRE (EMPOWERING FOR SUCCESS)

Various Training Programs

Training & Development of prospective employees.

Knowledge & skills updation of existing employees.

Training for new projects / revamps and new technology / systems.

Mandatory training for safety, health & environment.

Training for statutory compliances.

Re-deployment training.

Career development.

Vocational training for college students.

Training imparted to personnel of other organization.

400 technical training programs are carried out.

Around 9000 participants have taken part in trainings.

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DEPARTMENTS AT GNFC

Technical Department:

Production Department.

Engineering Department.

Quality Control Department.

Safety & Environmental Department.

Research & Development Department.

Operation Department.

Logistic Department.

Non- Technical Department:-

Marketing Department.

Purchase Department.

Export Department.

Dispatch Department.

Finance Department.

HR Department.

Personnel Department.

Security Department.

Administration Department.

Secretary Department.

MS Department (Management System).

IT DIVISION DEPARTMENTS:-

Digital Signature Certificate.

Marketing Department.

Human Resource.

Finance.

Research & Development.

Training Department.

E-Procurement Department.

Data Centers.

Operation Department

Networking Department.

Software Department.

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Organizational Hierarchy of Fertilizer and Chemical Department at

GNFC

Chairman

Managing Director

ED

(MARKETING)

ED

(HR & ADMIN)

ED

(OPERATION)

ED

(FINANCE)

ED

(R&D)

GM

AGM

GM

(HR)

GM

(A)

GM

(PURCHASE)

DGM

AGM

(T &D)

AREA

HEAD

GM (Material Procurement)

AGM (S &

Logistic) AGM (ENGG

Services

GM

(Quality)

CFO

Company

Secretary

GM

(R & D)

AGM

AGM

(ACCOUNTS)

SM

CM

AGM

(IR)

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Organizational Hierarchy at IT Department

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Finance Department GNFC 2012-2013

SHARE HOLDING PATTERN:-

INVESTMENT LOCATIONS IN GUJARAT:-

VADODARA.

GANDHINAGAR.

BHAVNAGAR.

BHARUCH.

DAHEJ.

Indian Public25% Bodies

Corporate 3%

NRI / Overseas

2%Foreign Insitutional

9%

Financial Insitutes /

Banks16%

Gujarat State Investment

LTD21%

Gujarat State Fertilizer

Chemical LTD20%

Mutual Funds & UTI

4%

SHARE HOLDING

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GNFC EPITOME OF PROFITABLE GROWTH

NET SALES &PBT:-

RESERVES AND SURPLUS:-

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

2009-2010 2010-2011 2011-2012 2012-2013

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GROSS FIXED ASSET:-

SEGMENT WISE PROFITABILITY 2012-2013:-

CHEMICAL24%

FERTILIZER60%

INFORMATION TECHNOLOGY

16%

PROFIT

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OPERATIONS:

Production performance of GNFC:-

The overall production performance remained very good during the year. 300 MTD WNA-II plants,

150 MTD CNA-III plants and 33 MW CPSU plant were commissioned.

ANP production increased in spite of problems of availability of rock phosphate due to political

problems at Jordan. Alternate source was developed to maintain production.

CAN production was planned according to ANP production /sale of A melt and cost economics.

Due to unfavorable cost economics, Methanol -I and Methanol-II plants could not be operated at

their full capacity and Methanol Synthesis Unit (MSU) was not operated.

Production of other products viz. Acetic Acid, Formic Acid, Methyl Formate and TDI were adjusted

to maximize contribution based on availability of carbon monoxide.

Concentrated efforts are put during day to day operation for higher productivity and reducing

specific energy consumption. Emphasis is put for continual improvement in safety and environment.

Plant Installed

Capacity Technical Collaborator

Ammonia 4,45,500 MTA

Air separation, Rectisol and Nitrogen

wash units as well as total engineering of

the integrated plant - Linde AG,

Germany

- Fuel Oil Gasification - Texaco, USA

- CO Shift Conversion-BASF, Germany.

- Ammonia Synthesis - Haldor Topsoe,

Denmark.

Urea 6,36,900 MTA Snamprogetti, Italy

Ammonium

Nitrophosphate 1,42,500 MTA BASF - Germany

Calcium-

Ammonium

Nitrate

1,42,500 MTA UHDE, Germany

Methanol-I 50,000 MTA ICI, UK & Linde AG, Germany

Formic Acid 10,000 MTA Kemira OY, Finland

Methanol-II 1,88,100 MTA ICI, UK & Toyo Engg., Japan

Msu 30,600 MTA In-House

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Weak Nitric Acid 2,47,500 MTA UHDE, Germany

Concentrated-

Nitric Acid I & II 66,000 MTA Plinke, Germany

Acetic Acid 1,00,000 MTA BP Chemicals, UK

Synthesis Gas

Generation Unit

201.960

Million NM3

per annum

Jacob, UK and H & G

Captive Power

Plant I & II

3,96,000

MWH per

annum

BHEL, India

Nitrobenzene (NB) 47250 MTPA Chematur Engineering AB, Sweden

Aniline 35000 MTPA Chematur Engineering AB, Sweden

Toluene Di-

isocynate (TDI) 14000 MTPA Chematur Engineering AB, Sweden

Di Nitro Toluene

(DNT) 18356 MTPA Chematur Engineering AB, Sweden

Meta Toluene Di-

amine (MTD) 11804 MTPA Chematur Engineering AB, Sweden

DESPATCH/SALE PERFORMANCE OF GNFC PLANTS FOR THE

YEAR 2012-2013

DESPATCH / SALE ACTUAL 2012-13

Urea 710000

ANP 200406

CAN 106020

TDI 17227

ANILINE 41459

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AN MELT 88493

ACETIC ACID 147153

METHANOL 55529

METHYL FORMATE 1012

FORMIC ACID 20367

WNA 100% 89142

CAN 55551

CALCIUM CARBONATE 73233

NITROBENZENE 2900

HCL 47983

DRY FLY ASH 116114

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THE 5 “S” MODEL OF GNFC

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IMPLIMENTATION OF 5 “S” CONCEPTS

RESULTS INTO:-

A Neat and Clean Factory

Higher Productivity

Reliable Deliveries

Improved Safety

Higher Quality

Meet Deadlines

Lower cost

Constant Growth

Profit Maximization

Higher Availability.

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.SWOT ANALYSIS OF GNFC

STRENGHTS:-

Boasts of setting up, one of the largest ammonia-urea fertilizer manufacturing complexes at

Bharuch, Gujarat.

Ideal location of Bharuch as an industrial hub of the country with an access to rich natural

resources suitable as raw materials for ammonia and other chemicals‘ production.

International business going strong with year-on-year growth, especially in the chemicals and

petrochemicals division of the company.

Under the brand name Narmada, the company has achieved tremendous sales

IT division (n) Code solution‘s www.nprocure.com, facilitates and manages all facets of e-

Tendering, e-Auctions. It caters to all the Gujarat State Departments, boards and Corporation,

and several PSUs.

(n)Code solution provides high tech security and surveillance solutions.

(n)Code solution has established its position as a market leader in Digital Signature

Certificates. More than 8, 51,194 certificates have been issued.

WEAKNESS:-

Exports haven‘t boomed due to focus on domestic expansions and business fortifications

Mergers and acquisitions have not been looked into as a possibility of future growth.

Production do not satisfies sometime Demand in Urea production.

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OPPORTUNITY:-

The Narmada Command Area, due to its strong irrigational facilities has become a huge

potential for sustained agriculture and therefore demands good quality fertilizer products

Social programs like schools, colleges and hospitals in the Narmadanagar region have

brought upon more customer loyalty towards the company and also results in customer

growth and awareness.

International marketing to ASEAN countries would help in establishing long-term

relationships and viable markets for future growth.

Collaborations with International countries could have increased more production due to

their new technology implementation.

Its Brand name is very popular in the northern states and huge demand is there. So, GNFC

should maintain its Production and Quality.

THREAT:-

Environmental regulations are severely affecting all fertilizer companies including GNFC.

Labor strikes have resulted in management transformations

Seasonal demand for fertilizers is affecting cash inflows.

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CORPORATE SOCIAL RESPONSIBILITIES

Beyond Business: Social Perspectives

It is absolutely important for businesses and business people to have a social perspective, And to be

engaged in social issues beyond business. GNFC has a commendable record of

Corporate social responsibility and it ear marks a substantial portion of its profits regularly

For such Activities. The company is presently running a 32 bed hospital with the help of

21 qualified doctors. It is also running an English medium school for 3,000 students and

One of the best post graduate colleges in the region. Majority of the students of these

Institutions are from the local community.

GNFC helps needy people through vocational training, eye camps, health camps, assistance

To handicaps, old age education, book bank, help to the victims of natural calamities, village

Adoption, etc. through its NGO Narmadanagar Rural Development Society (NARDES)

In addition to this, GNFC provides a very strong technical support to the farmers by having

A state of art soil testing laboratory, a model tissue culture laboratory which provides

Approximately one million disease-free, high quality banana saplings and a popular organic

Fertilizers program me for farmers, besides its other activities.

GNFC part of its CSR policy for the next five years, GNFC is planning to consolidate its

Activities and to focus exclusively on few core activities which will be meaningful for the

Region and where it can make some impact.

Thus successful business organizations have some influence in society. Thus it is an

Obligation for us who are in this fortunate position, to use our influence to do the right

Thing, to try and contribute as much as we can, to help improve society by undertaking

Certain CSR Activities.

GNFC’s CSR Policy:-

GNFC has passed the Board Resolution of 30th meeting of Board Directors held at Chamber

of Chief Secretary, GOG on 27th Dec.011. The Company established itself firmly with

Diversified product portfolio from its initial Fertilizers business to Chemicals and then to

Electronics, Information Technology business etc. Apart from excelling in its core business,

The company has been dedicating itself to social commitments in and around Bharuch in

Particular and the State of Gujarat in general.

To carry out its social commitments, the Company has established two Non-governments

Organizations (NGOs) viz. (i) Narmadanagar Rural Development society (NARDES) and (ii)

Narmada Education & Scientific Research Society (NEST)

(I) NARDES – An NGO sponsored by the company and promoted by its employees

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And their families undertake several Rural Development activities in the field of

Health and Hygiene, Education, Employment, Rehabilitation of physically

Challenged People etc.

(II) NEST – An NGO established by the company run Educational Institutes to impart

Graduate and Post Graduate level of education in Science, Commerce ,Management and Computer

Applications. Moreover part time courses are also Conducted for the employee professionals, in the

field of management and Industrial Safety and Environment.

The company has recently established GNFC Education Society for setting up a Polytechnic

College under the Public Private Partnership Model.

The company undertook Agriculture Extension Services for the benefit of farming.

Thalassemia Project:-

Overview: GNFC has contributed to Indian Red Cross Society (IRCS) for doing blood Tests for

Thalassemia and Sickle cell amongst the 1500 schools and college going Students of Bharuch

district.

Mobile Dispensary:-

Overview: A total of 9000 patients have been treated through mobile dispensary. This covers 6

villages every week and treats patients at nominal rates.

Eye camps and Eye ball collection activity:-

Overview: Eye camps are held regularly to identify and operate patients with Cataract. Also to

help visually challenged people, awareness campaigns for eye Donation is done and eye ball

collection activity is carried out. Till now around 450 People have been given eyeballs to the needy.

Handicap camps and Blood donation camps:-

Overview: To extend helping hand to differently able people, handicap camps is Held every year

where distribution of artificial limbs, tricycle, hearing aid and other Aids are done. Blood donation

camps are also organized twice in a year where 50 to 60 unit bloods are collected.

Model Village:-

Overview: District Development Authority, Bharuch has identified 8 villages, one in Each Taluka

of Bharuch District.

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Potable Drinking water & Swajaldhara Scheme:-

Overview: Water and sanitation management organization (WASMO) have surveyed 73 villages

in 7 talikas and have found fluoride, chloride and nitrate level. Significantly higher than permissible

limit for drinking purpose, Installation of RO plants. Of the total estimate of Rs.2.93 Crores for

providing RO plants in 63 villages, Rs.2.0 crores contributed by GNFC.

Primary Education Assistance under Aaganwadis:-

Overview: The literacy rate of Bharuch district is 74.41% which is approximately 2.7 Less than

the literacy rate in Gujarat.

a. Electrification in 472 class rooms of 169 schools

b. Requirement of 3293 fans

c. Provision of 128 PVC water tank

d. Construction of compound wall in 204 schools

e. Development of model schools

f. Installation or RO units

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Chapter -3

Discussion on Training

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Roles and Responsibilities

The training was imparted in all the departments:-

E-Procurement

Information Technology

Supply Chain Management(Production Planning and Schedule)

Production

Maintenance

Networking

Human Resource

Marketing

The role and responsibility given in each department was

To learn, supervise and monitor the work being held over there.

To give training to the bidder those who want to participate in the E-tendering and E-

auctioning process.

Verify all the details and forms of the customer those who want to publish their respective

government tenders (Government employees).

To evaluate each and every supplier performance and maintain their records and update in

the software known as ASP base.

Description of tasks handled

The task which I handled was how to maintain the proper information of the suppliers and their

previous record and the performance in the separate data base. And my job was to facilitate the

bidder and the customer those have problem in participating the tender, and submitting their form

online. Verification of the form checking the proper details in the form and matching it with the

requirement, and then providing the digital signature certificate.

Then the task which I handled in the supply chain department was to keep the record in the online

system and then have to evaluate the supplier‘s performance for the raw materials requirement.

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Contribution to the Organization

After understanding the whole working of ‗E-procurement and vendor management evaluation‘ the

study has been analysed between the manual process and the electronic process, and analysing the

performance of the suppliers and how much the electronic process is beneficial to the organization

In terms of

Technology

Efficiency

Transparancy

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Chapter -4

Analysis of Task/ Research undertaken

And process

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Introduction and Background

Reason for choosing this topic:-

There is increase in the technology day by day. E-procurement is the internet based technology

which helps in participating and evaluating the performance and helping in the online process. The

process now a day is changing manually too electronically and is very much beneficial for the

organization, government and for the customer. It‘s a new technology in the production sector that is

why I have chosen this topic to have a detailed study and each and every process of the system.

E-Procurement and Vendor Management

What is E-Procurement?

E-Procurement is a word which is made from two words, E stands for Electronic and 2 words is

Procurement.

Procurement is the acquisition of goods, services or works from an external source. It is favourable

that the goods, services or works are appropriate and that they are procured at the best

possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location.

Corporations and public bodies often define processes intended to promote fair and open

competition for their business while minimizing exposure to fraud and collusion.

Direct Procurement and Indirect Procurement

TYPES

Direct

procurement

Indirect

procurement

Raw material

and production

goods

Maintenance,

repair, and

operating supplies

Capital

goods

and

services

FEATURES

Quantity Large Low Low

Frequency High Relatively high Low

Value Industry

specific Low High

Nature Operational Tactical Strategic

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Examples

Crude oil in

petroleum

industry

Lubricants, spare

parts

Crude

oil

storage

facilities

Procurement Systems

Another common procurement issue is the timing of purchases. Just-in-time is a system of timing the

purchases of consumables so as to keep inventory costs low. Just-in-time is commonly used by

Japanese companies but widely adopted by many global manufacturers from the 1990s onwards.

Typically a framework agreement setting terms and price is created between a supplier and

purchaser, and specific orders are then called-off as required.

Public Key Infrastructure

Scope And Meaning of PKI

A public-key infrastructure (PKI) is a set of hardware, software, people, policies, and procedures

needed to create, manage, distribute, use, store, and revoke digital certificates.

A public-key infrastructure (PKI) is a system for the creation, storage, and distribution of digital

certificates which are used to verify that a particular public key belongs to a certain entity. The PKI

creates digital certificates which map public keys to entities, securely stores these certificates in a

central repository, and revokes them if needed.

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A PKI consists of

A certificate authority (CA) that both issues and verifies the digital certificates.

A registration authority which verifies the identity of users requesting information from the

CA

A central directory—i.e. a secure location in which to store and index keys.

A certificate management system

A certificate policy.

As licensed Certifying Authority, (n)Code Solutions issues Digital Certificates to individuals and

organizations to ensure Privacy and Integrity as well as establish Authenticity over the net for any

transactions like e mail, e tendering, e commerce, e governance and scores of others

E-Procurement

E-Procurement is the electronic B2B (or B2C or B2G) sale and purchase of goods and services. The

medium used might be the Internet or any other media like EDI (Electronic Data Interchange) and

Enterprise Integrations (formerly known as EAI).

E-procurement (electronic procurement ), sometimes also known as supplier exchange) is the

business-to-business or business-to-consumer or business-to-government purchase and sale of

supplies, work, and services through the Internet as well as other information and networking

systems, such as electronic data interchange and enterprise resource planning.

The e-procurement value chain consists of indent management, E-Tendering, E-Auctioning, vendor

management, catalogue management, Purchase Order Integration, Order Status, Ship Notice, E-

Invoicing, E-Payment, and contract management. Indent management is the workflow involved in

the preparation of tenders. This part of the value chain is optional, with individual procuring

departments defining their indenting process. In works procurement, administrative approval and

technical sanction are obtained in electronic format. In goods procurement, indent generation activity

is done online.

Indent

Managemente-Tendering

e-AuctionsContract

Management

Catalogue

based

ProcurementVendor Management

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E-Procurement Cycle

GNFC is Providing E-Procurement services like E-Tendering and E-Auctioning

Who needs this solution?

Many businesses turn to e-Procurement systems to control, simplify and automate the purchase of

goods and services from multiple suppliers. Companies deploying e-procurement are able to control

inventories more effectively, reduce purchasing overheads, reduce or remove brokerage costs as well

as improve manufacturing cycles.

The key is to find the right products from the right supplier, at the right time and at the most

competitive price, as well as to ensure the appropriate responsiveness and service levels for your

business purchasing needs. Often a company might find itself a niche with a proven set of customers

and encourage others in

a similar field to join them on-line as the business case is proven. Concurrently they may find their

client base grows with more customers keen to capitalize on the benefits as savings and efficiencies

become obvious. Medium to large sized organizations and government departments that regularly

purchase the same products from a limited number of companies are ideal candidates for e-

Procurement.

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Types of products and services:-

There are several approaches to e-Procurement taken by different vendors to manage supplier

relationships. Some of these are catalogue and transaction-based e-Procurement products and that

support supplier-relationship management strategies, which require strategic partnerships and

integration with third-party products.

The service can also be approached from an asset-management angle geared for maintenance and

repair operations. This establishes proper schedules and creates in-house availability of products and

assets that can be tracked. Over a period of time, this helps the enterprise‘s e-Procurement

capabilities to evolve.

In an environment where e-Procurement becomes an integral part of the supply chain a lot more

commitment from the involved partners is required. This is due to the more complex nature ofB2B

relationships that need to be managed along with additional technology and capabilities .Best of

breed e-Procurement systems should have the ability to locate suppliers, evaluate their offerings, and

make comparisons. They also need to ensure that the proper contractual terms are applied to each

order.

Procurement in the Indian context:-

The purpose of e-Procurement is to reduce costs as well as improve operational efficiency in the

procurement process. While this has happened to a large extent in the US and in European markets,

e-Procurement still has a long way to go in developing nations like India. Some of the challenges

faced here are

The lack of IT infrastructure.

Sourcing goods through online (internet/website) channels is relatively unheard of despite

relatively high levels of computerization; many organizations find it easier to do business

over the telephone.

Limited Internet and broadband penetration especially in rural areas, where companies need

to ensure an uninterrupted connection.

These are some of the areas of opportunities for e-Procurement facilitator companies to offer their

solutions over channels other than the Internet – perhaps using telecom or as technology evolve, over

television networks.

Several companies in India have stepped in to make e-Procurement easier, an example being NIIT

Technologies. Their product Procure Easy is, in their words - ―a unique end-to-end web based

solution that enables enterprises to streamline their procurement processes through the entire value

chain of the sourcing process.‖

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E-Procurement for the Indian Government:-

Over the last few years, several State Governments and Public Sector Undertakings in India have

begun to aggressively campaign for e-Procurement. Some state governments like those of Andhra

Pradesh and Gujarat have already initiated e-Procurement under a larger umbrella program of e-

Governance.

Using e-Procurement these governments have been able to save on procurement of goods and

services. There is also a goodwill factor involved and a definite improvement in the governments

‗image and transparency. Included in these benefits are cost reduction, improved decision making,

process efficiency, price and supplier-behavior forecasting, and supplier-performance monitoring

which ultimately leads to Vendor rationalization and standardization.

Certain Public Sector Undertakings (PSUs) like the Oil and Natural Gas Commission (ONGC),

Indian Oil Corporation (IOC), Bharat Heavy Electricals Limited (BHEL) have all taken up e-

Procurement initiatives to rationalize the $30 - $40 billion purchases they make every year.

The Future of e-Procurement

E-Procurement has been in existence for a substantial period. To achieve cost and time

Efficiency, several enterprises and governments now consider it a crucial cog in the wheel of their

procurement processes. With recessionary winds blowing across the globe and a growing need to

rationalize spends while sustaining optimum levels of productivity, enterprises big and small will

further leverage the e-Procurement model to achieve greater savings and deliver enhanced value.

Advances in Internet and media technologies, now require a revisit of the traditional methods of e-

Procurement. As the current market conditions tighten, e-Procurement facilitator companies need to

reinvent them and devise newer methods, so as to achieve far greater reach with greater process

simplicity and usability.

How the e-Procurement proved to be the best in the world of Globalization?

Enhanced transparency in Procurement lifecycles

Anytime Availability

Better administration and operations.

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Examples of good procurement practices and support from e-tendering

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Vendor Management

A vendor management system (VMS) is an Internet-enabled, often Web-based application that acts

as a mechanism for business to manage and procure staffing services – temporary, and, in some

cases, permanent placement services – as well as outside contract or contingent labour. Typical

features of a VMS application include order distribution, consolidated billing and significant

enhancements in reporting capability that outperforms manual systems and processes

GNFC is using a management software provider which is working on SAP which is known SAP

(Vendor Management System is working DOT NET) language which is having all the information

about the vendor from last 8 years and tracks all the records of the department from these software

all the vendor has been selected and according to their performance they are selected.

Supplier Evaluation Methods:-

The measure of a supplier's value is expressed in its performance record.

In recent years buyers have emphasized the setting of objective standards and procedures for

evaluating and comparing existing suppliers.

The least precise evaluation technique is the categorical method.

It relies heavily on the experience and ability of the individual buyer1

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The Categorical Method:-

Basically, it is a procedure whereby the buyer relies on a historical record of supplier

performance.

Initially, a list of evaluation criteria is identified.

The buyer then assigns a grade to each supplier, for each criterion, based on past experience.

A simple marking system of plus, minus, and neutral grades may be used.

Evaluation lists are often provided to other departments involved, such as quality control,

engineering, production, and receiving.

The Categorical Method:-

Vendors with composite high or low ratings are noted, and future supply decisions are

influenced by them.

Although this system is non-quantitative, it is a means of keeping systematic records of

performance.

It is also inexpensive and requires a minimum of performance data.

However, the process relies heavily on the memory and judgment of the individuals

providing the ratings, and the ratings may become routinely performed without much critical

thought

The Weighted Point Method

Weighted-point method quantifies the evaluation criteria.

A number of evaluation factors can be included, and their relative weights can be expressed

in numerical terms so that a composite performance index can be determined and supplier

comparisons made.

For example, following evaluation criteria have been chosen: quality of shipments, accuracy

of delivery, and price.

Assuming that quality and delivery are the most significant, a point rating system such as the

following might be used: quality, 40 points; delivery, 40 points, and price, 20 points.

Weighted Point Method

The advantage of the weighted-point plan is that a number of evaluation factors can be used

with relative weights corresponding to the needs of the firm, thereby minimizing subjective

evaluation.

If this individually assigned plan is used in conjunction with the categorical method,

suppliers can be evaluated on a quantifiable basis and many of the intangible aspects of

service can still be considered.

The Cost-Ratio Method

The cost-ratio method relates all identifiable purchasing costs to the value of the shipments

received from the respective suppliers.

The higher the ratio of costs to shipments, the lower the rating for that supplier.

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What cost categories are used depends on the products involved.

Quality, delivery, service, and price are the overall categories, and respective costs are

accumulated for each.

For example, costs associated with quality normally include:-

The costs of unusual visits to a vendor's plants,

Unusual inspection costs of incoming shipments, and

GNFC is using weighted average method for vendor selection and based on that they select their

vendors, vendors play an important key role for GNFC both as purchasing and distributing. Based on

the 3 criteria

The vendor management system is an online system which includes so many features and also

reduced the work time and the process is well systematic and design according to the department

needs and customer wants.

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Research Design

Statement of the problem:-

Study and analysing the proper E-Procurement system and its advantages, and the

vendor participating in the Tendering and measuring their performances

Objective of the study:-

To understand the various process and step for E-procurement

To understand the mechanism used under Vendor management system

To understand the advantages of E-procurement

To understand the merits of the E-procurement and vendor management system

Scope of the study:-

Reduction in cycle time for tender process,

Reduction in the operational expenses,

Reduction in corruption,

More transparent system

Methodology:-

Flow charts

Manual Tendering Process

To know and understand the process of Manual Procurement and E-Procurement using the following

process and with the help of flow charts

Before E-Tendering came into existence, the entire process was manual and it used to involve lot of

people bureaucrats, tedious process and inefficient utilization. The following process Flow Chart

shows manual tendering process

Manual tendering process in

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Communication

Internal

Bidder side

Specify the requirement Bidder

Eligibility, Technical and

Financial Criteria

Tender planning preparation of

tender documents and market

analysis

Tender notice Publication of

notice in the newspaper

Tender question and answer and

sale of tender documents

Preparation of bids and

manual delivery of bid

documents

Receipt and accounting of

tender documents

Opening, comparison and

evaluation of bids

Awarding of contract to the

bidder

Administration of contract

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Objective of E-Tendering

To act as the catalyst for procurement reforms

To enhance transparency, monitoring and control in tendering process

To reduce the cost of doing business for both government and suppliers

Current E-Tendering Process

.

Communication

Internal

Bidder side

E-Tendering

Specify the requirement Bidder

Eligibility, Technical and

Financial Criteria

Tender planning preparation of

tender documents and market

analysis

Tender notice Publication of

notice in the newspaper,

Posting of tender on the website

Downloading the documents

from the website

Preparation of bids and upload

of bid documents on the website

Receipts and accounting of

tender documents

Opening, comparison and

evaluation of bids

Awarding of tender on the

evaluated bidder

Administration of contract

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Key Features of e tendering:-

Time stamping

Digital Signature based encryption

Time based access

Role based Access

SSL usage

E-Tendering Implementation Methodology:-

Core Team Building Up

Buyer Log-in Creation

Digital Signature Certificate

Tender Notice as per e-Tendering

Tender Document as per e-Tendering

Buyer Side process for first 5 e tenders with the help of (n)Procure executive

E tendering is a part of e procurement which involves awarding contracts for the government

undertaking work. The work could be construction and procurement.

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The end to end flow of the e tendering process

The tendering process involves the following eight main processes, which are described in detail

along with their sub process and activities. Each process is explained by flow diagram using process

mapping tools and suggestions for improvement are given wherever required.

1. Buyer Registration

2. New Tender Creation which includes sub processes like (Tender stages can be independently

entered and BOQ can also be independently entered once NIT is created) –

Tender Stages

BOQ

3. Approve Tender

4. Vendor Registration

5. Bidding Process

6. Vendor Stage Fill up

7. Tender Opening Process

8. Bid Evaluation

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Buyer Registration Process - sub processes

Buyer

Registration

ProcurementPre-bid

meeting

Bid

Evaluation

Dynamic

FormsTender

Meeting

Schedule

Bid Evaluation

Activity

Bid Evaluation

Report

Create new

forms

Add and

scrap forms

Create New

Tender

Tender

Summary

Create Offline

Tender

Procurement

Request

My

Procurements

Tenders Under

Creation

Upload

Documents

Approve Tender

Assign Tender

Activities

ApproveCorrigendum

Edit Tender

Tender

Opening

Process

The following are the main processes –

Procurement

Tender

Dynamic forms

Bid Evaluation

Pre Bid Meeting

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.Vendor Process and sub processes

Vendor

Process

Vendor Registration and DSC

issuance

Annual Charge paid -

Online/OfflineDepartment wise

Tender Viewing

Bidding Process

Vendor Process –

The main processes and activities are –

Vendor Registration and DSC issuance –

If the vendor wants to participate in the bidding process, it has to get itself registered with

any certifying authority to procure a DSC and get a username and password to access and log

in to the www.nprocure.com site.

The vendor ones logs in it has to fill in the following information –

Primary Contact Information

Business Information

Activate my account – here the user id and password is entered to select a certificate. There could be

multiple certificate issued to one vendor hence the user has to choose from the list and hit the

activate button.

Annual charge paid online/offline – the vendor pays a fee of usage which is for a time frame.

Department wise Tender Viewing – the vendor can select the department for which it wants

to view the tenders like police, health, medical store, livestock, industrial development etc.

Page 84: Summer Internship Report Gourav Kumar Pandit 121234

Gujarat Narmada Valley Fertilizer & Chemical LTD

Promoted By Government of Gujarat

84

Vendor Bidding Process

Bidding Process and sub processes –

Bidding

Process

Vendor

Login

New Tender

Search Tender

Submitting bid

stage wise

Joint Venture

Bid Submission

View Notice

Inviting Tender

(NIT)

Accepting Terms

and Conditions

Submit Bids

Download

Documents

Open/limited

Tender

Tender In

process

Document

Library

Past Tender

Profile

Page 85: Summer Internship Report Gourav Kumar Pandit 121234

Gujarat Narmada Valley Fertilizer & Chemical LTD

Promoted By Government of Gujarat

85

Findings

Security- one of the major reasons for transfer to the new regime of E-tendering is the

higher degree of security it provides. The maintenance and even enhancement of the system

to make it as fool proof as possible is necessary. And the same time, such enhancements

should be communicated to the stakeholders.

Transparency- E-tendering is seen as a step to remove underhanded activities like

cartelization, false non-serious bidders etc. Therefore it is very important that the process

remains transparent.

Corruption- The process has reduced around 80 % corruption in the Gujarat state. All the

state governments are in process to adopt the process. Reduction in the corruption in the

government offices

Economic cost- with increasing competition, prices have to be competitive. And these

would decrease the cost also.

Usage of latest technologies- The government is using latest technologies which are

helpful for customer in many ways. The better transparency has been created with these new

systems.

Ease of Operations- The system has to be easy to operate. This is because we are talking

of government departments, which generally have inertia to change. A difficult to operate

system would increase this inertia further.

Suggestions

Make the online payment process easy

Possible automation of technical evaluation

Technology Audit should be done Every month with an External auditors

Continuous improvements at software and process level from time to time

Availability of tender Formatting Features

Page 86: Summer Internship Report Gourav Kumar Pandit 121234

Gujarat Narmada Valley Fertilizer & Chemical LTD

Promoted By Government of Gujarat

86

Conclusion

GNFC is the Gujarat Government promoted company as is widely famous in North-

West region and has a Great brand name and GNFC has also maintains a very good

relation with their dealer. And they have maintain their quality, delivery and price,

GNFC pricing is one of the most important factor to maintain its position in the

market as there are many competitors in the market. For any company whether it is

large scale or small or medium scale the most important thing is to maintain a good

relation with their vendors / suppliers because of their efforts business becomes

strong.

(n)code solutions (IT division of GNFC) offers a unique solution to overcome the

operational cost of procurement with effective use of Information Security services

and products. It is licensed from Government of India as a certifying authority under

the IT act 2000 for the issuance of Digital Signature Certificates for the Indian public,

companies and other organizations. (n)code solutions also offers most important

services of E-Procurement.

The portal of e-Procurement services is enabled with end e-Procurement software. The

portal can handles all the activities from the notice of inviting tender to the publishing

of the tender in the electronic form to corrigendum to filling, encryption for security,

and digital signature of online tenders, to multistage evaluation and final conclusion.

And this service is very beneficial for all the government if they start the E-

Procurement services

Page 87: Summer Internship Report Gourav Kumar Pandit 121234

Gujarat Narmada Valley Fertilizer & Chemical LTD

Promoted By Government of Gujarat

87

References

www.gnfc.in

www.nprocure.com

www.ncode.in

www.gog.com

www.e-procurement.com

CSR report 2012-2013 GNFC

Indian fertilizer .com

Indian IT industry

Vendor Management Doc slide share

Local Government Improvement and Development –

(http://www.idea.gov.uk/idk/core/page.do?pageId=82667)

Program Head Academic Head Dean