INDEX

CHAPTER.NO. CONTENT PAGE NO

Chapter 1 Introduction Objectives of the report Scope of the project Limitations Chapter 2 Company Profile Industry Profile Chapter3 Literature review Chapter 4 Research Methodology Chapter 5 Data Collection Analysis & Interpretation Chapter 6 Findings Recommendations Conclusions Biblio graphy Books / Articles referred Annexture

1 3 3 3 5 16 34 49 52

61 61 62 63 64

CHAPTER 1 INTRODUCTION

CHAPTER 1

TITLE OF THE PROJECT:

A STUDY OF MANAGEMENT INFORMATION SYSTEM OF NATIONAL FERTILIZERS LIMITED
(PUBLIC SECTOR COMPANY)

INTRODUCTION OF TITLE
MIS can be defined as a system that provides information needed to manage organizations effectively.Management information systems involve three primary resources: technology, information, and people. When we talk of MIS in terms of marketing it can be defined as a planned system of the collection, processing, storage and dissemination of data in the form of information needed to carry out the management functions. In a way, it is a documented report of the activities that were planned and executed. According to Philip Kotler "A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers." Management information systems provide decision -makers information and feedback on daily operations. Additionally, management information systems can be used strategically, often incorporating Web technology.

OBJECTIVE:

Objective of the project is to understand the working of the MANGEMENT INFORMATION SYSTEM department of a PUBLIC SECTOR COMPANY,here it is National Fertilizers Limited,as it differs from a private company.
SCOPE:

The scope of the project would be to know h ow does MIS department of a public sector company works and also to know how the targeting of the main product UREA takes place which helps in preparation of MIS reports which results in plan and execution of the plan .
LIMITATIONS: y

Company being a public sector company and working there as trainee is difficult because all you need to grab the information is on your own as the company persons are very much busy in their own schedule and routine.

Company sticks to their official timings so if any important w ork needs to completed,will not take place because of timings and delay of work takes place.

Working culture is really different from private company and is therefore hard to adopt.

CHAPTER 2

COMAPNY PROFILE INDUSTRY PROFILE

CHAPTER 2 COMPANY PROFILE:

The idea of producing fertilizers was conceived at end of famine in Bengal & Bihar in 1943 a committee was set under the chairmanship of Mr.G.S.GOWING in 1944 to suggest a site for setting up a fertilizer factory. This committee suggested place in U.P. but this was not found suitable by the govt. Sindri was finally selected as the site . The main consideration regarding its location was as follows: -To increase the food production -To raise the economic life of population by providing the decent employment opportunities. -The basic raw material coke was available locally. The paper work on the project was started in 1945. Construction work, however, started in 1947. The factory was commissioned into production 1951 & was able to attain its full production capacity within three years. Originally it was started as a departmental undertaking. In 1956, it was registered under the companies act named Sindri fertilizer chemicals ltd. (SFCL).In 1954, the Govt. of India appointed a committee called The fertilizer production committee under the chairmanship of shri B.C.MUKHRJEE (FCIExchairman & Managing Director) to suggest ways for further expansion of fertilizer production in India. The govt. however simultaneously issued a directive to the co mmittee that one of the proposed fertilizer units should be located near the Bhakra Dam.The main consideration for setting up a plant in Nangal (PUNJAB) was that there would not be enough demand for Bhakra Dam. As such Nangal plant was electrolysis of water.Heavy water, a bye product in this process could be produced for the use in these atomic reactors as moderator.

On February 17, 1956 the proposed Nangal factory was incorporated under the name of NANGAL (fertilizers & chemicals ltd.)(NFCL) with its registered at Nangal having an authorized of 31 corers. The name of (NFCL) was changed toHindustan chemicals and fertilizers ltd.(HFCL) with effect from July 15,1959. The FCL Ltd. Was incorporated on Jan 1st, 1961 by proclamation of the Fertilizers & Chemicals companies amalgamation order 1960, having a authorized capital of 75corers.With the re-organization fertilizers co-operation of India with effect from 1st April 1978, The Nangal unit becomes a constituent unit of the National Fert. Ltd., which has already two units under it, located at Bathinda (PUNJAB) & Panipat (HARYANA). 4th plant of national fertilizers ltd., at Vijaypur (M.P. was commissioned in 1987). National Fertiliser Limited was registered on 23.08.1974 with an authorised capital of 500 Crores and a capacity of 10.36 lakhs MT Nitrogen. The company is indulged in manufacturing chemicals & Bi -Products as well as to provide the allied services. The company has its units in various places like Nangal, Panipet,Bhatinda & Vijaipur. The Govern ment of India has approved the implementation of Vijaipur Expansion Project with an outlay of 987 Crores.
2001

- Mr. P.S. Grewal will take over as the new Chairman and Managing Director of the public sector urea major, National Fertilisers Ltd. - The Company has signed a memorandum of understanding with the Union Government for 32.25 lakh tonne production in 2001 -02.

2002

-NFL has been upgraded as a schedule A company because of its constant good performance. -A.V.Singh ceases to be the director of the company. Shri Vijay Singh has been co-opted as the Director on the board, Dr.B.C.Jain appointed as the director to the board by IDBI. -NFL has worked out a new process of neem -coated urea with a thin film of neem oil-water emulsion of specified concentration.
2003

-NFL has signed memorandum of association for 2003 -04 with the Department of Fertilizers - National Fertilizers Ltd, Ranbaxy Laboratories Ltd and Indo Rama Synthetics Ltd have secured the National Safet y Awards for the year 2001 and 2002. -High court has permitted National Fertilizers Employees Union to tender for stakes in the company. -Secured the National Safety Awards for the year 2001 and 2002 - Appointed three Additional Directors on the Board wef October 31, 2003. 1. Shri Hemendra Kumar 2. Shri Jawahar Nehru

3. Prof KDP Nigam

2004

-Smt. Suman Swarup has resigned as Director of the Company - Shri Satish C. Chhatwal, Director (Finance) has ceased to be a Director of the Company
2006

-National Fertilizers Ltd has informed that Shri Hemendra Kumar, Shri J Nehru & Prof K D P Nigam have ceased to be Directors of the Company w.e.f. October 21, 2006. Shri K B Sachdev has taken over as Director (Marketing) w.e.f. October 27, 2006. Earl ier to that he was Chief General Manager (Marketing) of the Company.
2007

- National Fertilizers Limited has appointed Shri Kanwal Malhotra, F.C.A.as Part-time Non-official Director on the Board of Directors of the Company w.e.f. 21.02.2007. -National Fertilizers Ltd has informed that Ms. Neeru Abrol has joined the Company as Director (Finance) on October 01, 2007.
2009

- National Fertilizers Limited has informed that Shri Sudhir Bhargava has been appointed as Part -time Official Director on the Board of the

Company w.e.f. March 16,2009.

INTRODUCTION:
NFL and Mini Ratna Company, is the second largest producer of Nitrogenous

Fertilizers in the Country with 15.8% share in domestic production of Urea achieved in the country during 2009 -10.

NFL was incorporated on 23rd August

1974 with two manufacturing Units at Bathinda and Panipat. Subsequently, on the reorganization of Fertilizer group of Companies in 1978, the Nangal Unit of Fertilizer Corporation of India came under the NFL fold. The Company expanded its installed capacity in 1988 by installing and commissioning of its Vijaipur gas based Plant in Madhya Pradesh.

The Vijaipur Plant was a landmark achievement in project management in India.

The plant was completed well within time and approved project cost. In recognition of this achievement, the project was awarded the First Prize on Excellence in Project Management by Govt. of India. Subsequently the Vijaipur plant doubled its capacity to 14.52 lakh MTs by commissioning Vijaipur Expansion Unit i.e. Vijaipur -II in 1997. The annual capacity was subsequently re -rated w.e.f. 1.4.2000 from 7.26 lakh MT of Urea to 8.64 lakh MT for Vijaipur -I & Vijaipur-II Plants each. Three of the Units Three of the Units are strategically located in the high consumption areas of Punjab and Haryana. The Company has an installed capacity of 32.31 lakh MT of Urea. The company produced 33.30 lakh tonnes of Ure a and recorded an annual sales turnover of Rs.5091 crores during 2009 -10.

10

NFL, a profitable public sector undertaking operates under the administrative control of Department of Fertilizers in the Ministry of Chemicals & Fertilizers. The Company is consistently making profits and registered a profit (PBT) of Rs.260 crores for the year 2009-10.The Companys strength lies in its sizeable presence, skilled manpower, Marketing and strong distribution network nationwide. Aiming towards further growth, NFL is already in the process of revamping its three fuel oil based plants for change over its feedstock from FO/LSHS to NG/R -LNG and Capacity Augmentation of Urea at Vijaipur Unit. Towards reduction of Green House Gases, Company has already initiated action for various CDM (Clean development Mechanism) Projects so as to earn revenue in terms of carbon credits. NFL in collaboration with M/s KRIBHCO & RCF has formed a joint venture company (JVC) named as Uravarak Videsh Limited (UVL) to explore investment opportunities abroad and within country in Nitrogenous, Phosphate & Potassic sectors and to render consultancy services for setting up Projects in India & Abroad. A brown field gas based Urea plant at Barauni in Bihar has been entru sted to the above Joint venture Company. Kisan Urea NFLs popular brand is sold over a large marketing territory spanning the length and breadth of the country. The Company also manufactures and markets Bio-fertilizers and a wide range of industrial produc ts which include Methanol, Sodium Nitrate, Sodium Nitrite, Nitric Acid, Sulphur, Liquid Oxygen, Liquid CO2, Liquid Nitrogen etc. The Company has also developed Neem coated Urea which on demonstration has shown improved results in terms of increase in yield by 4-5% and environment friendly. Accordingly Company has been manufacturing and selling Neem Coated Urea from its manufacturing plants since 2002 -03 The Company is further focusing its thrust to widen the marketing operations of Neem coated Urea. The co mpany has also taken initiative to make available other agro inputs under single window like quality seeds, Insecticides and Bio-pesticides by collaboration with other reputed organizations. R&D trials are under way for testing the efficacy of Bio -pesticides, elemental Sulphur, in collaboration with Agriculture Institutes.

11

NFL over the years has developed a team of dedicated professionals in the areas of production, maintenance, project management, safety and environment control. These professionals are sought after in the Industry both in India & abroad for their Specialized Services. NFL is known in the industry for its work culture, value added human resources, Quality Management, Safety, Environment, Concern for Ecology and its

commitment to social upliftment and to ensure their compliance, All NFL plants are certified and being maintained under ISO -9001 (2000), ISO-14001 & OSHAS-18001 by conforming to International Quality, Environmental & Occupational Safety & Hazards standards. With the certification of Corporate Office/Marketing operations under ISO -9001: 2000, NFL has become the first Fertilizer Company in the country to have its total business covered under ISO-9001 Certification. Urea is an essential commodity under the Essential Commodities Act, 1 955. The Department of Fertilizers (DoF) plans and monitors production, import and distribution of fertilizers and manage the subsidy for indigenous and imported fertilizers in the country. In this regard, DoF has set up an on line web based Fertilizers Monitoring System (FMS). Presently Fertilizer companies are allowed to market 50% of their total Urea produce outside EC allocation.

12

MARKETING AND SERVICES Soil testing services are provided free

of cost to the farmers to advocate the balanced use of fertilizers at economic levels. One mobile soil-testing unit caters to the need of the remotest of remote farmers in far areas and
Soil testing services

provides technical guidance to the farmer at field level.

Other farm services include fertilizer

demonstration on cultivators fields, field days, fertilizer/farmers Mela, pilot project, adoption of villages etc. NFL also conducts various training

programmes to educate the farmers on the balanced use of fertilizer and its timely application besides providing Educating the farmers guidance on pesticides & fungicides. NFLs Farmer Training Centre at Vijaipur caters to the training needs of small and marginal farmers, particularly those belonging to tribal areas in the State of Madhya Pradesh. The training schedules are tailor made to suit the requirement of thefarmers.

To commemorate the 50th anniversary of Indias independence, the Company has undertaken a Sustainable Integrated Rural Development Programme, titled Sulabh, National Fertilizer Development Initiative for Tribal Areas (SUNADITA). The mission of the project is to help the farming community in er adicating poverty and empowering people with self sustaining process of economic well being

13

MARKETING OBJECTIVE:

 Sell entire quantity of the fertilizers keeping minimum inventory levels.  Achieve maximum operational efficiency and keep side by side keeping all the transportation and selling expenses under control.  Create and sustain a dealer network which identifies itself with NFLs objective by proper motivation and training.  Build a vibrant marketing organisation which is responsive to changes in marketing environment.  Strengthen the brand image to emerge as market leader.  Maintain a close and supportive relationship with all department and officials.

MARKETING ORGANISATION:
Central Marketing Office
 Sales planning.  Operation of revenue and capital expenditure budget.  Promotional budget & strategy.  Co-ordination of movement and warehouse.  Recruitment and management of dealer network.  Supervision of activities of field offices  Monitoring and reporting on competitors activities.  Training of field staff and dealers.

Zonal Office
 Sales planning for the zone.  Co-ordination with the plants for the movement.  Preparation of zonal budget, follow up both in respect of orders as well as collection of payment.  Implementing promotional programmes as per approved budget.
14

 Credit control and cash flow management.  Organizing training for the staff as well as dealers as per approved budget and programme.  Getting consolidated account audited.  Close liaison with the state government, apex co -operative federation and other national agencies.  Oversee the activities of the state office.  Lining up warehouses and H & T contractors.

State Office
 Preparation of sales and warehouse plans.  Preparation and follow up of rake movement plans.  Co-ordination and supervision of marketing activities of state offices.  Management of dealer network.  Keep tracks of stocks, accounts and receivables.  Lining up warehouse and H & T contractors.

Area Office
 Preparation of sales and warehouse plans.  Development and management of dealers ne twork.  Lining up warehouse and H & T contractors.  Warehouse inspection.  Rake handling at destinations.  Reports and returns on sales, competition, promotional activities etc to state office.

District Office
 Preparation of sales plans.  Warehouse inspection.  Development of dealer network.  Procurement of sales order.

15

INDUSTRY PROFILE
There are nine public sector undertakings and two cooperative societies under the administrative control of the Department of Fertilizers. At present , there are 63 large size fertilizer units in the country, manufacturing a wide range of nitrogenous and phosphatic/ complex fertilizers. Of these, 38 units produce urea whereas medium scale units producing single superphosphate Given below is detail about the companies and their sales turnover:
NATIONAL FERTILIZERS LIMITED:

9 units

produce ammonium sulphate as a by-product. Besides, there are about 79 small and

National Fertilizers Limited (NFL) was incorporated on 23 rd August, 1974 for setting up of two nitrogenous plants, one at Bathinda (Punjab) and another at

Panipat(Haryana) with LSHS as feedstock, each having Urea production capacity of 5.11 lakh MT per annum. Consequnt upon the reorganization of the Fertilizer Corporation of India (FCI), the Nangal Unit (including Nangal Expa nsion Project) of FCI was transferred to NFL w.e.f.1.4.1978

16

Plant Location

Date of Commercial production

Fertilizer Product

Product Brand Name

Plant Capacity ('000'MTPA)

Process Name

Name of Process Licenser

Nangal

01.11.1978

Urea

Kisan Urea

478.5*

Shell Gasification of F.Oil/LSHS Montedisson total recycle process

M/s. Haldor Topsoe, Denmark, M/s Technimont, Italy/UHDE, West Germany

Panipat

01.09.1979

Urea

Kisan Urea

511.5

Shell Gasification of F.Oil/LSHS Total recycle C improved process

M/s. Haldor Topsoe, Denmark, M/s. Toyo Engg. corpn., Japan M/s. Haldor Topsoe, Denmark, M/s. Toyo Engg. corpn., Japan M/s. Haldor Topsoe, Denmark, M/s. Snam Progetti, Italy

Bhatinda

01.10.1979

Urea

Kisan Urea

511.5

Shell Gasification of F.Oil/LSHS Total recycle C improved process

VijaipurI VijaipurII

01.07.1988

Urea

Kisan Urea

864.6**

Steam reforming of N. Gas. Constant

31.03.1997

Urea

Kisan Urea

864.6 **

pressure Ammonia stripping technology

W.e.f 01.02.2001 with the commencement of commercial production of revamp (Qty. in Thousand

scheme.Sales Performance: MT

17

Plant

Product 0102 0203 0304

Sales 0405 483.0 510.3 513.5 913.8 05-06

Nangal-I Panipat Bhatinda Vijaipur-I

Urea Urea Urea Urea

498.6 467.2 487.0 519.9 494.8 507.2 557.8 545.1 526.8 497.0 528.1 566.3 837.6 925.9 929.0 926.9 934.5 891.6 885.5 915.2 942.8

Vijaipur-II Urea

18

FERTILISERS & CHEMICALS TRAVANCORE LTD. FACT.

The Fertilizers and Chemicals Travancore Limited (FACT) was incorporated in 1943. In 1947 FACT started production of Ammonium Sulphate with an installed capacity of 50,000 MT per annum at Udyogamandal, near Cochin. In the year 1960,FACT became a PSU and towards the end of 1962.Government of India became the major shareholder.From a modest beginning, FACT has grown and diversified into a multi division/multi-function organisation with basic interest in manufacture and marketing of Fertilizers and Petrochemicals,Engineering Consultancy and Design and inFabrication and Erection of Industrial Equipments .

Plant Location

Commissioning Date

Fertilizer Product

Product Brand Name

Plant Capacity

Process Name

Name of Process Licenser

('000' MTPA) Ambalamedu Cochin April 1979 Complex FACTAMFOS 485 April 1973 Urea Urea 330 Conventional Total recycle Slurry Granulation Udyogamandal, Cochin Technimont (Montedison) Well Mann Power Gas

1965

Complex

FACTAMFOS

149

Slurry Granulation

Dorr Oliver TSK, Japan Stamicarbon

October 1990

A/S

A/S

225

By-product crystallisation

October 1990

Caprolactam Petrochemical

Caprolactam

50

Raschig Route

Sales Performance :
(Qty. in Thousand MT)

Plant

Product 2004-05 2003-04

Sales
2002-03 2001-02 2000-01 271.4 250.2 846.7 52.9

Cochin & Udyogamandal

Urea A/S DAP 20:20:0:13

217.9 530.9 48.1

5.8 156.7 547.0 39.1

5.2 191.4 743.2 45.1

54.0 229.1 810.4 45.1

Petro-Chemical

Caprolactam

19

RASHTRIYA CHEMICALS & FERTILIZERS LIMITED (RCF)

Rashtriya Chemicals and Fertilizers Limited (RCF) was incorporated as a separate company on 6th March 1978 consequent to reorganization of the erstwhile Fertilizer Corporation of India Limited. At the time of its formation, the company had only one operating unit at Trombay (near Mumbai) and two major projec ts under implementation viz.;Trombay IV and Trombay V expansion. The gas based Thal-Vaishet fertilizer complex about 100 Kms from Trombay, was also later implemented by RCF and it commenced commercial production on June 1, 1985. As on 31.3.2004, the company had a subscribed/paid up capital of Rs. 551.69 crore against the authorized share capital of Rs. 800 crore.

Plant Location

Commissioning Date

Fertilizer Product

Product Brand Name

Plant Capacity ('000'MTPA)

Process Name

Name of Process Licenser

Trombay

1965

15:15:15

Suphala

300

Phosphonitric

Kemira

1965

Urea#

Ujwala

99

Total Recycle

Chemico

1978

20:20:0

Suphala

361

Odda Process

Uhde/ Stamicarbon SnamProgetti SnamProgetti

1981

Urea

Ujwala

330

Ammonia Stripping

Thal

1985

Urea

Ujwala

1485

Ammonia Stripping

# Urea-I with installed capacity of 99,000 MT was shutdown since 1.1.95 for safety and environmental reasons

20

Sales Performance:

(Qty in Thousand MT) Product 1996-97 1997-98 Sales 1998-99 1999-00 2000-01 1996-97 1997-98 Stocks 1998-99 1999-00 2000-01

Urea * 15:15:15 20:20:00 Imported DAP Imported Urea Imported MOP

1553.840 288.092 218.586 -

1588.393 400.390 293.203 67.831

1777.500 363.788 232.224 170.710

1742.747 341.791 286.738 223.751

1625.516 325.592 245.190 16.947

158.541 113.878 75.344 -

284.200 54.275 34.350 0.181

186.555 28.544 23.139 19.282

208.990 108.792 60.425 3.221

161.445 87.668 63.948 0.621

44.575

113.863

104.170

15.587

14.136

14.098

141.468

198.870

5.206

18.915

6.504

1.215

* Combined figures of Trombay and Thal.

21

MADRAS FERTILIZERS LIMITED (MFL)

Madras Fertilizers Limited (MFL) was incorporated in December 1966 as a Joint Venture between GOI and AMOCO India Incorporated of USA (AMOCO) with GOI holding 51% of the equity share capital.

Plant Location

Commissioning Date

Product

Product Brand Name

Plant Capacity

Process Name

Name of Process Licenser

('000'MTPA) Manali Chennai68 Nov 1, 1971 Ammonia VIJAY 346.50 Naphtha Reforming Ammonia Process Urea 486.75 UTI-Heat Recycle Urea Process After revamp Mar 3, 1998 & Complex 840.00 Slurry Granulation NPK Process HDO India UTI, USA HTAS, Denamrk

BioFertilizers

0.40

Sales Performance:

(Qty. in Thousand MT)

Product 199495 199596

Sales 199697 199798 199899 199495 199596

Stocks 199697 199798 199899

Urea DAP 14:28:14 17:17:17 20:20:00

Bio-Ferts

101.7 756.3 0.095

78.4 735.4 0.131

83.5 0.8 178.9 424.3 0.232

52.8 10.0 22.5 373.4 0.325

255.8 21.6 26.1 755.4 1.1

4.2 43.7 -

2.7 32.2 -

1.2 5.0 43.4 -

11.2 0.2 0.1 100.5 0.002

15.5 27.3 -

22

STEEL AUTHORITY OF INDIA LIMITED (SAIL)

Plant Location

Commissioning Date

Fertilizer Product

Product Brand Name

Plant Capacity

Process Name

Name of Process Licenser

('000'MTPA) ROURKELA 1962 Can Sona 360,000 TPY NAPHTHA REFORMING

Sales Performance:

(Qty. in Thousand MT)

Produc t

Sales

Stocks

1993 -94

1994 -95
180.05

1995 -96
173.0

1996 -97
116.83

1997 -98
95.02

1993 -94
8.224

1994 -95
44.918

1995 -96
13.903

1996 -97
4.111

1997 -98
4.212

CAN

239.22

23

PARADEEP PHOSPHATES LIMITED (PPL)

Plant Location

Commissioning Date

Product

Product Brand Name

Plant Capacity

Process Name

Name of Process Licenser

('000'MTPA) Paradeep 1.8.1986 DAP Ratna } 720 DORROCO GRANULA10:26:26 Kalyani } TION Hindustan Door-Oliver

12:32:16

Kalyani }

. Sales Performance:

(Qty. in Thousand MT)

Product 1994 -95 DAP (Manufactu red) NPK (Manufactu rede) DAP (Imported) NPK (Imported) Urea (Imported) Urea Broughtout MOP (Imported) 4.41 7 2.19 6 922. 572 0.96 4 41.4 58 0.19 5 0.09 4 496. 104 0.10 3 44.3 68 0.34 7 30.1 39 628. 098 1995 -96 549. 593

Sales 1996 -97 574. 021 1997 -98 715. 59

1998 -99 753. 783

Stocks 1994 -95 259. 012 1995 -96 281. 339 1996 -97 122. 249 1997 -98 180. 838
1998 -99 160. 649

71.5 24

53.4 27

11.4 00

1.78 9

39.1 75

38.2 41

8.12 9

63.5 22

107. 861

2.17 3 -

0.69 9 0.67 9

0.48 9 0.57 7 121. 459 0.23 1 49.0 66

0.48 8 0.57 2 27.5 12 0.23 2 3.50 2

2.78 8 0.57 2 161. 143 0.22 5 1.21 3

0.61 4 0.53 4 44.9 82 0.21 2 12.4 11

113. 481 -

356. 877 -

114. 572 -

107. 881 0.58 7

24.6 22

79.2 94

20.9 29

26.0 95

24

CO-OPERATIVE SECTOR
INDIAN FARMERS FERTILISER COOPERATIVE LIMITED (IFFCO)

Indian Farmers Fertiliser Cooperative Limited (IFFCO) was registered as a MultiStateCooperative Society on November 3, 1967. Subsequently with the enactment of M ulti-State Cooperative Societies Act, 1984, IFFCO came under the purview of the same. However, with the enactment of Multi- State Cooperative Societies Act, 2002 effective from 19th August 2002, IFFCO is presently under the purview of this Act. By the end of 1988, IFFCO had set up four plants, two in the State of Gujarat and two in the State of Uttar Pradesh with total investment of Rs.981.2 crore. Since 1993, IFFCO had undertaken expansion of all the four operating units as part of its corporate plan Vision 2000 at a cost of about Rs.2500 crore. After the expansion of all the four units, the total annual production capacity has been enhanced from 16.2 lakh tonne to 36.89 lakh tonne of urea and from 9.0 lakh tonne to 21.91 lakh tonne of NPK/DAP.
Plant Location Commissioning Date Fertilizer Product Product Brand Name Kalol, Gujarat 31.01.1975 Urea IFFCO Urea Stripping Phulpur-I, U.P. Phulpur-II, U.P. Aonla-I, U.P. Aonla-II, U.P. Kandla-I, Gujarat Kandla-II, Gujarat 10.06.1999 28.11.1974 NPK/ DAP NPK/ DAP 26.11.1996 Urea 18.05.1988 Urea 31.10.1997 Urea 15.10.1980 Urea IFFCO Urea IFFCO Urea IFFCO Urea IFFCO Urea IFFCO NPK/DAP IFFCO NPK/DAP 251.9 (P2O5) 309.1 (P2O5) 853.4 853.4 853.4 511.5 Ammonia Stripping Ammonia Stripping Ammonia Stripping Ammonia Stripping Slurry Granulation Pipe Reactor Snamprogetti PDIL Snamprogetti PDIL Snamprogetti PDIL Dorr Oliver Inc., HDOL Grands Paroise, HDOL Snamprogetti 544.5@ CO2 ReassessedCapacity ('000'MTPA) Process Name Name of Process Licenser Stamicarbon

Plant capacity increased from 396 thousand tonne of urea to 544.5 thousand tonne after commissioning of Kalol Expansion on 31.8.1997.

25

Sales Performance:

(Qty. in Thousand MT)

Plant

Product 1996-97 1997-98 390.2 651.8 1539.1 175.8 2756.9 316.8 328.5 647.3 1292.6 4049.5

Sales 1998-99 434.8 1235.9 1589.5 82.0 3342.2 310.3 288.9 682.0 1281.2 4623.4 1999-00 421.3 1459.2 1624.3 3504.8 427.3 446.2 793.7 1672.2 5172.0 2000-01 447.9 1430.5 1724.9 3603.3 348.1 461.4 1096.3 1905.8 5509.1

Kalol Phulpur Aonla Imported Total Kandla

Urea Urea Urea Urea Urea 10:26:26 12:32:16 DAP

422.1 572.3 818.5 179.1 2140.6 198.0 342.4 481.5 1021.9 3162.5

Total Total

NPK/ DAP Urea + NPK/DAP

26

KRISHAK BHARATI COOPERATIVE LIMITED (KRIBHCO)

KRIBHCO was incorporated as a Multi State Cooperative Society on 17.04.1980 to implement the Ammonia/Urea fertilizer project at Hazira , based on natural gas from Bombay High/South Bassein.The Society commissioned its Ammonia/Urea Plant in 1985. The Hazira complex has two ammonia plants and four streams of Urea. The annual reassessed capacity of Urea Plants is 17.29 lakh MT. KRIBHCO has also installed a Bio-fertilizer.

Plant Location

Commissioning Date

Fertilizer Product

Product Brand Name

Plant Capacity

Process Name

Name of Process Licenser

('000'MTPA)

Hazira, Surat, Distt. Gujarat.

Nov. 1985

Urea

KRIBHCO Urea

1452

Urea Plant: Ammonia Stripping

Snamprogetti, Italy and M.W.Kellogg, USA

Date of Commercial Production : 1.3.1986

Process & Ammonia Plant: Steam Reforming Process

-do-

Aug. 1995

Biofertilizers

KRIBHCO Biofertilizers

250

Pisces Instruments, Chennai, India (Supplier of equipment & machinery)

( Plant capacity expanded from 100 MTPA to 250 MTPA w.e.f. Dec.,98)

-do-

Expansion : December,1998

-do-

-do-

Pisces Instruments, Chennai and ICNC, Trichi. (Supplier of equiment & machinery)

27

Sales Performance:

(Qty. in Thousand MT)

Sales

Product 1998-99

199-00

2000-01

2001-02

2002-03

Urea ('000'MT)

1551

1516

1574

1721

1642

Bio- fertilizer (in MT)

189

290

354

373

363

28

ABOUT FERTILIZERS:

Fertiliser is generally defined as "any material, organic or inorganic, natural or synthetic, which supplies one or more of the chemical elements required for the plant growth". Sixteen elements listed in Table 1.1 are identified as essential elements for plant growth, of which nine are required in macro quantities and seven in micro quantities. Of the elements listed in Table 1.1, carbon, oxygen and hydrogen ar e supplies by air and water and are, therefore, not treated as nutrients by the fertiliser industry. The main aim of the industry is to provide the primary and secondary nutrients which are required in macro quantities
Table 1.1 - Essential elements for plant growth No. Name of element Nomenclature

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Carbon Oxygen Hydrogen Nitrogen Phosphorus Potassium Calcium Magnesium Sulphur Boron Chlorine Copper Secondary nutrients Primary nutrients

29

13. 14. 15. 16.

Iron Maganese Molybdenum Zinc

Micro / Macro nutrients

Note: As per the Fertiliser Control Order (FCO) 'fertiliser' means any substance used or intended to be used as a fertilisers of the soil and/ or crop and specified in part A of Schedule I and includes a mixture of fertilisers and special mixture of fertilisers. Primary nutrients are normally supplied through chemical fertilisers. They are chemical compounds containing one or more of the primary nutrients and are generally produced by chemical reactions. Whatever may be the chemical compounds, its most important ingredient for plant growth is the nutrient content. The primary nutrients are nitrogen, phosphorus and potassium; however, their concentration in a chemical fertiliser is expressed as a percentage of total nitrogen (N), available phosphate (P 2O5) and soluble (K 2O). Thus, ammonium sulphate contains 20.6 per cent N; single superphosphate 16 per cent P 2O5 and muriate of potash 60 per cent K 2O. The grade of a fertiliser is expressed as a set of three numbers in the order of per cent N, P2O5 and K 2O. If a nutrient is missing in a fertiliser, it is represented by a zero. Thus ammonium sulphate is represented as 20.6 -0-0 (since it does not contain phosphorus and potassium), sing le superphosphate as 0 -16-0 (as it does not contain nitrogen and potash), muriate of potash as 0 -0-60 (as it does not contain nitrogen or phosphorus). When a fertiliser contains more than one nutrient, for example diammonium phosphate, it is shown as 18 -46-0, indicating that it contains 18 per cent of nitrogen, 46 per cent of P 2O5 and no potash. Similarly, "Suphala", a nitro phosphate fertiliser produced by RCF, Trombay, is shown as 15-15-15 indicating that the product contains 15 per cent N, 15 per cent P 2O5 and 15 per cent K2O.
30

Fertilizer Industry in India Contributes 25 Percent to GDP

India is basically an agricultural country which economy depends largely upon its agrarian produce. Agricultural sphere contributes about 25% to the countrys GDP. As a result, Indian fertilizer industry has tremendous scope in and outside the country as it is one of the allied parts of agriculture. Today, Indian Fertilizer Industry is developing in terms of technology. Indian manufacturers are adopting advanced manufacturing processes to prepare innovative new products for Indian agriculture. India has en titled as the third largest producer and exporter of nitrogenous fertilizer.

Growth

of

Fertilizer

Industry

in

India

Fertilizer industry in India is meeting all the requirements of agricultural industry since the time of its inception in 1906. The first p lant for fertilizers manufacture was set up in the same year in Ranipet, Chennai. Then established the first two large sized fertilizer plants, one was the Fertilizer & Chemicals Tranvancore of India Ltd. (FACT) in Cochin, Kerala, and the another one was F ertilizers Corporation of India (FCI) in Sindri, Bihar. These two were established as pedestal fertilizer units to have self sufficiency in the production of foodgrains. Afterwards, the industry gained impetus in its growth due to green revolution in late sixties, followed by seventies and eighties when fertilizer industry witnessed an incredible boom in the fertilizer production. The tremendous demand of fertilizers has led the country to invest huge in the public, co-operative and in private sectors. At present, India has more than 57 large sized plants of fertilizers, manufacturing wide assortment of fertilizers including nitrogenous, phosphatic, Ammonium Sulphate (AS), Calcium Ammonium Nitrate (CAN) urea, DAP and complex fertilizers. Apart from it, there are other 64 small and medium scale Indian manufacturers producing fertilizers. Here is the list of some public sector Indian fertilizer industries; MadrasFertilizers Limited
31

 National Fertilizers Limited Hindustan Fertilizer Corporation Limited Steel Authority Of India Limited Fertilizers & Chemicals Travancore Limited Rashtriya Chemicals &Fertilizers Limited Paradeep Phosphates Limited Pyrites, Phosphates & Chemicals Limited Neyveli Lignite Corporation Limited Some of the major private sector fertilizer companies in India are: Balaji Fertilizers Private Limited Ajay Farm-Chem Private Limited Chambal Fertilizers & Chemicals Limited Bharat Fertilizer Industries Limited Gujarat Narmada Valley Fertilizer Co. Limited Southern PetroChemical Industries Corporation Limited Godavari Fertilizers & Chemical Limited Shri Amba Fertilizers (I) Private Limited Gujarat State Fertilizers & Chemicals Limited Maharashtra Agro Industrial Development Corporation Mangalore Chemicals & Fertilizers Limited
The speedy growth in the fertilizers production is swaying the Indian manufacturers to transform into Indian exporters, and helping them create a long lasting impression on global consumers

32

CHAPTER 3

LITERATURE REVIEW

33

CHAPTER 3 LITERATURE REVIEW:

Background of Management Information System:

A Management Information System (MIS) is a system or process that provides the information necessary to manage an organization effectively. MIS and the information it generates are generally considered essential components of prudent and reasonable business decisions.

The importance of maintaining a consistent approach to the develop ment, use, and review of MIS systems within the institution must be an ongoing concern of both bank management and OCC examiners. MIS should have a clearly defined framework of guidelines, policies or practices, standards, and procedures for the organization. These should be followed throughout the institution in the development, maintenance, and use of all MIS. MIS is viewed and used at many levels by management. It should be supportive of the institution's longer term strategic goals and objectives. To th e other extreme it is also those everyday financial accounting systems that are used to ensure basic control is maintained over financial recordkeeping activities. Financial accounting systems and subsystems are just one type of institutional MIS. Financial accounting systems are an important functional element or part of the total MIS structure. However, they are more narrowly focused on the internal balancing of an institution's books to the general ledger and other financial accounting subsystems. For example, accrual adjustments, reconciling and correcting entries used to reconcile the financial systems to the general ledger are not always immediately entered into other MIS systems. Accordingly, although MIS and accounting reconcilement totals for relate d listings and activities should be similar, they may not necessarily balance. An institution's MIS should be designed to achieve the following goals:

34

 Enhance communication among employees.  Deliver complex material throughout the institution.  Provide an objective system for recording and aggregating information.  Reduce expenses related to labor-intensive manual activities.  Support the organization's strategic goals and direction. Because MIS supplies decision makers with facts, it supports and enhances the overall decision making process. MIS also enhances job performance throughout an institution. At the most senior levels, it provides the data and information to help the board and management make strategic decisions. At other levels, MIS provides the means through which the institution's activities are monitored and information is distributed to management, employees, and customers. Effective MIS should ensure the appropriate presentation formats and time frames required by operations and senior managemen t is met. MIS can be maintained and developed by either manual or automated systems or a combination of both. It should always be sufficient to meet an institution's unique business goals and objectives. The effective deliveries of an institution's product s and services are supported by the MIS. These systems should be accessible and useable at all appropriate levels of the organization. MIS is a critical component of the institution's overall risk management strategy. MIS supports management's ability to p erform such reviews. MIS should be used to recognize, monitor, measure, limit, and manage risks. Risk management involves four main elements:  Policies or practices.  Operational processes.  Staff and management.  Feedback devices. Frequently, operational processes and feedback devices are intertwined and cannot easily be viewed separately. The most efficient and useable MIS should be both operational and informational. As such, management can use MIS to measure performance, manage resources, and help an institution comply with regulatory
35

requirements. One example of this would be the managing and reporting of loans to insiders. MIS can also be used by management to provide feedback on the effectiveness of risk controls. Controls are developed to support the proper management of risk through the institution's policies or practices, operational processes, and the assignment of duties and responsibilities to staff and managers. Technology advances have increased both the availability an d volume of information management and the directors have available for both planning and decision making. Correspondingly, technology also increases the potential for inaccurate reporting and flawed decision making. Because data can be extracted from many financial and transaction systems, appropriate control procedures must be set up to ensure that information is correct and relevant. In addition, since MIS often originates from multiple equipment platforms including mainframes, minicomputers, and microcomputers, controls must ensure that systems on smaller computers have processing controls that are as well defined and as effective as those commonly found on the traditionally larger mainframe systems. All institutions must set up a framework of sound fun damental principles that identify risk, establish controls, and provide for effective MIS review and monitoring systems throughout the organization. Commonly, an organization may choose to establish and express these sound principles in writing. The OCC fully endorses and supports placing these principles in writing to enhance effective communications throughout the institution. If however, management follows sound fundamental principles and governs the risk in the MIS Review area, a written policy is not required by the OCC. If sound principles are not effectively practiced, the OCC may require management to establish written MIS policies to formally communicate risk parameters and controls in this area.
Sound fundamental principles for MIS review include proper internal controls, operating procedures and safeguards, and audit coverage.

36

WHAT IS MANAGEMENT INFORMATION SYSTEM: OVERVIEW OF MIS:

Initially in businesses and other organizations, internal reporting was made manually and only periodically, as a by-product of the accounting system and with some additional statistic(s), and gave limited and delayed information on management performance. Previously, data had to be separated individually by the people as per the requirement and necessity of the organization. Later, data was distinguished from information, and so instead of the collection of mass of data, important and to the point data that is needed by the organization was stored. Earlier, business computers were mostly used for relatively simple ope rations such as tracking sales or payroll data, often without much detail. Over time, these applications became more complex and began to store increasing amount of information while also interlinking with previously separate information systems. As more and more data was stored and linked man began to analyze this information into further detail, creating entire management reports from the raw, stored data. The term "MIS" arose to describe these kinds of applications, which were developed to provide managers with information about sales, inventories, and other data that would help in managing the enterprise. Today, the term is used broadly in a number of contexts and includes Chain (but is not limited to): decision support Resource systems, resource and people Planning (ERP), Supply management applications, Enterprise

Management (SCM), Customer

Relationship

Management(CRM), project management and database retrieval applications. "The five eras are general-purpose mainframe and minicomputer computing, personal computers, client/server networks, enterprise computing, and cloud computing."(Management Information Systems: Managing the Digital Firm, 11th Edition. Prentice Hall/CourseSmart, 12/30/2008. p. 164). The first era was ruled by IBM and their mainframe computers, these computers would often take up whole rooms and require teams to run them, IBM supplied the hardware and the software. As technology advanced these computers were able to handle greater capacities
37

and therefore reduce their cost. By 196 5 microprocessors began to take the market away from mainframe computers. This technology allowed small desktop computers to do the same work that it previously would have taken a room full of computers. This also decentralized computing power from large d ata centers to smaller offices. In the late 1970's minicomputer technology gave way to personal computers, now for a relatively low cost anyone could have a computer in their own home. This allowed for businesses to give their employees access to computing power that 10 years before would have cost tens of thousands of dollars. This proliferation of computers also helped create a need to connect these computers together on a network giving birth to the internet. As technology has increased and cheapened the need to share information across a large company had also grown, this gave way to the client/sever era. With this era computers on a common network were able to access shared information on a server. This allows for large amounts of data to be accessed by thousands and even millions of people simultaneously. The latest evolution of Information Systems is cloud computing a recent development, cloud computing lets users access data stored on a server, where they can not only see the data but also edit, save , download or upload. This along with high speed networks has lead to a much more mobile view of MIS. In cloud computing the manager does not have to be at a desk to see what their employees are working on but instead can be on a laptop, tablet pc, or even smartphone. The terms MIS and information system are often confused. Information systems include systems that are not intended for decision making. The area of study called MIS is sometimes referred to, in a restrictive sense, as information technology management. That area of study should not be confused with computer science. IT service management is a practitioner-focused discipline. MIS has also some differences with ERP which incorporates elements that are not necessarily focused on decision support. The successful MIS must support a business's Five Year Plan or its equivalent. It must provide for reports based upon performance analysis in areas critical to that plan, with feedback loops that allow for titivation of every aspect of the business, including recruitment and training regimens. In effect, MIS must not only indicate

38

how things are going, but why they are not going as well as planned where that is the case. These reports would include performance relative to cost centers and projects that drive profit or loss, and do so in such a way that identifies individual accountability, and in virtual real -time. Anytime a business is looking at implementing a new business system it is very important to use a system development method such as System Development Life Cycle. The life cycle includes Analysis, Requirements, Design, Development, Testing and Implementation.
GENERAL MEANING:

Management Information System is a general name for the academic discipline covering the application of information technolo gy to business problems. As an area of study it is also referred to as Information Technology Management. The study of information systems is usually a commerce and business administration discipline, and frequently involves software engineering, but also distinguishes itself by concentrating on the integration of computer systems with the aims of the organization. The area of study should not be confused with computer science which is more theoretical in nature and deals mainly with software creation, and not with computer engineering, which focuses more on the design of computer hardware. IT service management is a practitioner-focused discipline centering on the same general domain. In business, information systems support business processes and operation s, decision-making, and competitive strategies.
DEFINITION:

MIS (management information systems) is a general term for the computer systems in an enterprise that provide information about its business operations. It's also used to refer to the people who manage these systems. Typically, in a large corporation, "MIS" or the "MIS department" refers to a central or centrally -coordinated system of computer expertise and management, often including mainframe systems but also

39

including by extension the corporation's entire network of computer resources. The MIS program is intended to be the first step in a life -long learning experience in the exciting and dynamic field of information technology. It provides a strong foundation for advancement and success in IT careers and ventures. Basically, Management Information Systems is the study of the use of computers in business. This course shows students how Information Systems are used to support critical business operations and achieve strategic objectives. The elements or corporate technology are studied and its application to specific business situations is discussed. Students develop a small information system using Microsoft Access and use Excel as a decision support tool. In the beginning, business computers were used for the practical business of computing the payroll and keeping track of accounts payable and receivable. As applications were developed that provided managers with information about sales, inventories, and other data that would help in managing the enterprise, the term
MIS arose to describe these kinds of applications. Today, the term is used broadly

in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, project management, and database retrieval applications. MIS can also be defined as is a system that provides information needed to manage organizations effectively.Management information systems involve three primary resources: technology, information, and people. It's important to recognize that while all three resources are key components when studying management information systems ... the most important resource is people. Management information systems are regarded to be a subset of the overall internal controls procedures in a business, which cover the application of people, do cuments, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are us ed to analyze other information systems applied in operational activities in the

organization. Academically, the term is commonly used to refer to the group of

40

information management methods tied to the automation or support of human decision making, e.g.Decision Support Systems, Expert systems, and Executive information systems.

Features
MIS aids the organization in effective and efficient decision making. The organizational data, like information on the processes, standard operating procedures and audit preparation methodology, are all tabulated and presented in the forms of reports. Also the internal controls for each department that list the flow of work between employees, the authority-responsibility relationships, all are listed by the MIS.

Purpose & Scope of Management Information System:

The Purpose and Scope of MIS can be defined as The combination of human and computer based resources that results in the collection, storage, retrieval, communication and use of data for the purpose of efficient management of operations and for business planning. In order to get a better grip on the activity of information processing, it is necessary to have a formal system which should take care of the following points:  Handling of a voluminous data.  Confirmation of the validity of data & transaction.  Complex processing of data and multi-dimensional analysis.  Quick search & retrieval.  Mass Storage.  Communication of the information system to the user on time.  Fulfilling the changing needs of the information. The management information system uses computers and communication technology to deal with these points of supreme importance.

41

Role of Management Information System

The role of the MIS in an organisation can be compared to the role of heart in the body. The information is the blood and MIS is the heart. In the body, the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart works faster and supplies more blood when needed. It regulates and controls the incoming pure blood, processes it and sends it to the destination in the quantity needed. It fulfills the needs of blood supply to human body in normal course and also in crisis. The MIS plays exactly the same role in the organisation. The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfill the informa tion needs of an individual, a group of individuals, the management functionaries: the managers & the top management. The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modelling Systems and Decision S upport Systems. The MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing.

42

IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

Since the MIS plays a very important role in the organisation, it creates an impact on the organisations functions, performance and productivity. The impact of MIS on the functions is in its management. With a good MIS support, the management of marketing, finance, production and personnel becomes more efficient. The tracking and monito ring of the functional target becomes easy. The MIS creates another impact in the organisation which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes. It uses a dictionary of data, entity and attributes, respectively, designed for information generation in the organisation. The MIS calls for a systemisation of the business operations for an effective system design. This leads to streamlining of the operations which complicate the sys tem design. It improves the administration of the business by bringing a discipline in its operations as everybody is required to follow and use systems & procedures. This process brings a high degree of professionalism in the business operations. Since the goals and objectives of the MIS are the products of business goals & objectives, it helps indirectly to pull the entire organisation in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organisation.

43

MANAGEMENT INFORMATION SYSTEM IN TERMS OF MARKETING:

An 'MIS' is a planned system of the collection, processing, storage and dissemination of data in the form of information needed to carry out the management functions. In a way, it is a documented report of the activities that were planned and executed. According to Philip Kotler "A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers." Management information systems provide decision -makers information and feedback on daily operations. Additionally, management information systems can be used strategically, often incorporating Web technology.

Marketing MIS: Marketing Management Information System (MIS) supports

managerial activities in product development, distribution, pricing decisions, promotional effectiveness and sales forecasting.

Overview of Marketing Management Information System (MIS)

44

Inputs to Marketing MIS

y y y

Strategic plan and corporate policies The TPS (Transaction Processing Systems) External sources:
o o

The competition The market

Marketing MIS Subsystems and Outputs

y

Marketing research
o

Web based market research

y y y

Product development Promotion and advertising Product pricing

45

MANAGEMENT INFORMATION SYSTEM IN NFL:

The primary objective of budgeting is to translate the management plans into quantitative and financial parameters and project the end results. Their after, one of the main task of the management is to monitor the performance as against the targets set and analyse the variance. A proper management information system is required to achieve the above objectives.

EFFECTIVE MIS WILL PROVIDE THE FOLLOWING:

y

Desired information, predetermined formats at agreed frequency to different levels of management.

A suitably designed report which will give comparative figures of budget, actual and an analysis of contributing factors for the variance.

Periodic review meetings at different levels to critically review the performance and decide the course of action to achieve targeted levels.

Timely corrective action to steer the results closer to budgeted levels.

ROLE OF MARKETING IN MANAGEMENT INFORMATION SYSTEM:

Budget:  Month and area wise  Sales term  Transportation  Warehousing  Sales promotion  Farm extension services  Revenue expenditure  Capital expenditure Marketing should also assist finance in preparing a month wise cash flow for the year along with the budget. The cash flow forecast should be updated every month for the

46

next three months. This is an important function of marketing in working capital management. Seasonal conditions, performance, ECA obligations, competitors activities and status of overdue constitute other information to the top management. Variance analysis: finance should work out variance analysis for each activity and report every month favourable/adverse variance in respect of quantity as well as price. This should be discussed in detail in a monthly meeting of functional heads and corrective action to be taken in course.

TARGETING:
Targeting means how target is being set,first of all availability of material at the very moment is being checked out and then cross checking is being done so that they can know the exact availability of material.all this process is being carried out in a hierarchy,means from bottom to top,from district incharge to area incharge also known as area officer then to state manager and finally to zonal manager.as each and every one come upp with tentative target finally on the whole they have tentative target.but it may vary just because of environmental f actors. And then monthly review is being carried out,here also same reaon lie that cariation may occur because of environmental factors.for example:in area A,rain takes place but not in area B,so the demand of urea will be more in area A,this is the reason review is being done. National fertilizer being a government undertaking,government intervention takes place.for example:State A has asked for 321 tonnes of urea but government will allow only 123 tonnes so they need to agree over it and another case may be State B may say that their demand is zero for this particular quarter but government may pressurise them to go for 123 tonnes. So from this we can come to the conclusion that their exist government intervention.

47

CHAPTER 4

RESEARCH METHODOLOGY

48

CHAPTER 4 RESEARCH METHODOLOGY

Research Methodology within N.F.L.
Research can be defined as a scientific and systematic research for pertinent information on a specific topic. In fact, research is an art of specific investigation. Research is an activity and as such the term be used in a technical sense. Research can be stated as the manipulation of things concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge whether that knowledge aids in construction of theory or in the practice of an art. Research methodology is considered as the nerve of the project. Without a proper well-organized research plan, it is impossible to complete the project and reach to any conclusion. Information gathered for the formulation of this project report is mainly based on the secondary data. It is through discussions with the different departments such logistics, personnel, marketing research & others; various information about the project is gathered.The various data regarding the sa les made by NFL &Urea manufacturing companies was also provided under the supervision of the marketing department. DATA SOURCE: The data was collected from the employees of the company,as it is secondary data,it was already existing in their records. SAMPLE: Sample size determination is the act of choosing the number of observations to include in a statistical sample.so here I have taken only one sample and that is MIS report given by the MIS department employee.

49

ANALYSIS TECHNIQUE: Analysis technique followed in the project for the data is OBSERVATION which is done on MIS report provided by the MIS department.

50

CHAPTER 5
DATA ANALYSIS

51

CHAPTER 5
DATA COLLECTION/ANALYSIS/INTERPRETATION

BUDGETING FOR FERTILIZERS MARKETING OPERATIONS:

Budgeting involves setting up a standard and reviewing. Planning should precede performance. For budgeting activity to be successful, people who implement the budget must make them.

i) FRAMEWORK
 Define functional responsibility.  Establish budget centers, determine centre-wise budget.  Review and corrective measures.

ii) BUDGETING FOR SALES TERM

Distribution margin based on:  Market condition  Strength of brand Cash rebates (ICC):  Cost of Capital  Credit period  Handling expense & secondary freight for delivery ex railhead. Budgeting for credit:  General credit policy for the year should be planned and got approved by the committee of functional directors. The credit policy will take into consideration.

52

Budgeting for selling cost:  Salaries & wages  Perquisites & benefits  Rents & taxes  Travel expenses  Vehicle expenses Fuel & oil  Vehicle expenses Repairs & maintenance  Communications  Utilities  Printing & stationary  General expenses

iii) SALES PROMOTION BUDGET

A paper on sales promotion budget strategy should be presented to the committee of functional directors for approval. The strategy paper will provide background information on target groups, consumption of fertilizers in the marketing area, competitors strategy and their market share, vis--vis NFLs market share. Media option available should be reviewed and appropriate media mix recommended. Based on the approval of the committee of functional directors/CMD, a detailed budget should be prepared under the following major heads:  Advertising  Outdoor publicity  Point of sales publicity material  Audio visual programme  Production of films, video on wheels  Fairs and exhibition  Dealers development

iv) BUDGETING FOR EXTENSION SERVICES

53

Differentiation between the brands is on the wave and the products are be coming generic. Extension services will be a major plank for establishing an identity in the market place. Activities under extension services can be grouped as under, with budget proposal for each:  Demonstration  Technical literature  Training programmes  Farmer training programmes  Farmer welfare programmes

v) BUDGETING FOR TRANSPORTATION COST

Transportation cost accounts for 65% to 70% of the marketing costs. This item of expenditure therefore merits meticulous planning.

BASIC INPUTS:
a) FICC recognised rates b) Maximum average lead distance for the year c) Railway tariff
y y y

Road freight to different locations Handling cost at different rake points Expected ECA allocations state wise.

d) Budget assumptions
y y y y

District/block wise sales plan Rake point wise movement plan Rail, road mix for explants despatches Estimated ex aril head deliveries and throughput ex warehouses.

54

Budget objective
y y y

Develop optimum distribution network Maximum market share in economic zone Locate economic rake points from point of view of ra il freight plus handling expenses.

y y

Maximise direct deliveries to consuming centres. Avoid crisscross movements.

Budget monitoring
y y y y

Rail/Road mix. Actual lead distance. Actual freight. Direct sale versus ex-warehouse sales.

vi) Budgeting for warehouse costs

Basic inputs
y

District wise sales plan, location of warehouse estimated direct deliveries and estimated ex-warehouse deliveries.

y y

Number of rotations that can be achieved, keeping in view seasonal factors. Availability and cost factor: Examine availability as well as cost factor in respect of private warehouse.

Annual plan and floating plan, warehouse wise throughput and reservation to be worked out annually and revised at the end of each season.

vii) Procedure for approval of sales terms

y

Prior to each season the marketing division shall develop the broad parameters for terms of sales to be operated during the season and obtain the approval of committee of functional directors.

55

The pricing proposals obtained from the zones will be processed with reference to the parameters approved and approval of DCM obtained.

Every month the marketing division will apprise CFD on terms of sale operated vis-a-vis approved parameters and the sales performance for the month.

In the event the terms of sales exceed the parameters marketing division must obtain the approval of CFD.

Here the budgeting done helps the MIS department in letting them know the actual or approximate quantity of product to be manufactured and to be distributed in the respective region and accordingly, they can prepare the MIS report SEASONALY.In the budgeting process, one more stage takes place and that is TARGETING, which has been explained earlier, targeting also helps in correct estimation of the product quantity.

56

The MIS given below is of kharif 2011 and its supply plan into particular district/state under the national fertilizers territory. The territory includes Madhya Pradesh, Chhattisgarh, Maharashtra, Orissa, Andhra Pradesh, Gujarat, Uttar Pradesh, Uttaranchal, Bihar, Jharkhand, Rajasthan, Haryana, and Punjab. This MIS helps in taking the actual quantity of supply from rake point and road of different fertilizers and cumulative supply in particular region which is helpful for marketing sales and other required offices of national fertil izers limited. This report of MIS gives us the details of the total expenditure incurred on different states of India by means of rail and road transportation. It is clearly observed that some parts of India requires more of the fertilizer than the other parts as well as the cost effectiveness is also observed .some states require less transportation cost when transported through rail and some require less on transportation through road .so it also provides the information to which transport means to be followed in order to economize the losses occurred. MIS is also useful in getting out the total supply of fertilizer into a particular state its excess and its shortage into particular season. So that the gap of demand and supply can be maintained so that the production process can continue without any hindrance. This MIS report also states the different states where the urea ,fertilizers and MOP is being supplied like Madhya pradesh,uttranchal,Orissa,gujra t,Andhra

Pradesh,maharashtra,kerela,bihaar,punja b ,Haryana etc

57

58

So from the MIS report we can conclude that it plays a vital role into an organisation by providing information as follows:
y Season wise target of the product. y Identifying for demand and supply of the product. y The cost incurred through different transportation modes which are

rail and road.

y Economising the losses by supplying product to cost effective

areas.

59

CHAPTER 6

FINDINGS RECOMMENDATION CONCLUSION

60

CHAPTER 6

FINDINGS:
NFL being a huge company has to put its target near to required in future, as there exist government existence,so here comes MIS which helps a lot. An effective MIS provides :
y

Desired information, predetermined formats at agreed frequency to different levels of management.

A suitably designed report which will give comparative figures of budget, actual and an analysis of contributing factors for the variance.

Periodic review meetings at different levels to critically review the performance and decide the course of action to achiev e targeted levels.

Timely corrective action to steer the results closer to budgeted levels.

RECOMMENDATION:
y

Motivate and enthuse the employees to achieve higher

Productivity with team spirit.

y

Lay down integrated objectives, define individual goals &

maintain an atmosphere conductive to achievement of these goals .

y

MIS reports should be refined and simplified.

61

CONCLUSION
Through the MIS, the information can be used as a strategic weapon to counter the threats to business, make businesses more competitive, and bring about the organisational transformation through integration. A good MIS also makes an organisation seamless by removing all the communication barriers. Public Sector Company is a real life experience to know how the companie s runs in real sense in India.NFL is one of the giant leaders in fertilizer manufacturing industry and runs all over the globe. So its a good company to earn experience.

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BIBLIOGRAPHY
o Marketing manual 2008, NFL o www.Nationalfertilezers.com
http://www.nationalfertilizers.com/about.htm http://www.nationalfertilizers.com/plant.htm http://www.nationalfertilizers.com/marketing.htm http://www.nationalfertilizers.com/financial_result.htm

o www.fert.nic.in
http://fert.nic.in/aboutfert/aboutfertilizers.asp http://fert.nic.in/aboutus/aboutus.asp

o www.urvarak.co.in o Grameed vikaas 2010-11 2nd edition

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ANNEXURE Daily despatch status/monthly

Annexure MIS I

SALES PATTERN

INSTITUTION

MARKETER

DEALER

CASH CREDIT

CASH CREDIT

CASH CREDIT

DEALERS MARGIN Rs/MT

INSTITUTION

MARKETER

DEALER

RAIL
CASH

ROAD
CASH

RAIL
CASH

ROAD
CASH

RAIL
CASH

ROAD
CASH

CR

CR

CR
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CR

CR

CR

DIRECT & WAREHOUSE SALES PATTERN(MT)

DIRECT DELIVERIES

THROUGHPUT/ WAREHOUSE

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ANNEXURE MIS 2 DATE ______

Area/State office _______ Product ________ Current year demand (MT) Estimated demand for ____________(MT) Existing market share ____________(%) Proposed market share ___________(%) Estimated sales for ___________(MT)

AM

SM STATE

GM/MARKTING IC

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ANNEXURE MIS 3 DATE ____________ Area office ___________ Annual budget district wise for _______ Product _____________ District Total
April May June July Aug Sept Oct Nov Dec Jan Feb Mar

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