PREFACE

This research study was conducted at BVFCL, Namrup-786623, Dist. Dibrugarh (Assam) for the partial fulfilment of the requirement for the degree of MBA (Agri Business). The main objective of the research is to study on Distribution Channel Management. This report is divided in to 4 chapters. Chapter-1 Introduction Chapter-2 Methodology Chapter-3 Findings and Discussion Chapter-4 Conclusion The author hopes this report will provide valuable information to BVFCL, Namrup. The data so provided are based on the facts which are collected during the survey.

OBJECTIVES

(i)

To study the Distribution Channel Management of BVFCL, Namrup.

(ii) To frame a strategy for developing the Distribution Channel .

(iii) To study the impact of distribution channels on the sale of the product.

(iii) To study the behaviour of the end user i.e. farmers towards the development of the Distribution Channel Management.

INTRODUCTION
Company Profile BVFCL is the first factory of its kind in India to use associated natural gas as basic raw materials for producing nitrogenous fertilizer. The Namrup Fertilizer Complex, renamed as Brahmaputra Valley Fertilizer Corporation Limited after bifurcation from erstwhile Hindustan Fertilizer Corporation Limited w.e.f. 1st April 2002 with three units located on the bank of the river Dilli in the south-western border of Dibrugarh District in Assam. It is the first factory of its kind in India to use associated natural gas as basic raw material for producing nitrogenous fertilizer. Consequent upon the recommendation of M/S. Snodgrass Associates of USA suggesting utilization of this hidden treasure to produce a large number of utilities including chemical fertilizers and electricity, then the Ministry of Mines and Fuel appointed a Committee headed by Shri S.S. Khera, ICS and based on its broad recommendation in respect of possible use of natural gas, a Technical Committee under the Chairmanship of Dr. G P Kane further studied the possibilities of setting up a fertilizer plant in Assam while the Central Water and Power Commission was entrusted to explore the scope of setting up a power project based on this resource . The Kane Committee, after making detailed techno-economic study, recommended a fertilizer factory to be located at Namrup. Needless to say that, Central Water and Power Commission too recommended favourably resulting in the setting-up of Thermal Power Plant within the striking distance from the fertilizer factory at Namrup.

BVFCLs PROFILE Business opportunities available BVFCL has the following facilities : I. Manufacturing : 1. Mukta Urea 2. Mukta Vermi compost and 3. Mukta Bio-fertilizer ( Rhizobium, Phosphobactrin, Azotobactar and Azospillum) II. Marketing and Trading : 1. Urea distribution & Sale 2.2. Trading in a) Pesticide (Hindustan Insecticide Ltd) b) Fertilizer : Di ammonium Phosphate (DAP) Single Super Phosphate (SSP) Murate of Potass (MoP) c) Paddy, Wheat & Vegetable Seed (SFCI and Nunhems India Pvt Ltd) For trading chemical fertilizers BVFCL is tied up with Rastriya Chemicals and Fertilizers (RCF) for MOP and DAP, Liberty Phosphate Ltd for Single Super Phosphate (SSP). For trading paddy and wheat seed BVFCL is tied up with State Food Corporation of India (SFCI). In 2008 BVFCL tied up with Hindustan Insecticide Ltd (HIL) for trading pesticide mainly in Assam and Tripura. In 2009 BVFCL is tied up with another multinational company Nunhems for trading vegetable seeds.

Every year BVFCL earn 18-20 crore turnover from the trading business only. Production of Bio-fertilizer and Vermi-compost in 2009-10 was 21.5MT and 62MT respectively.

BVFCLs Mission
To produce fertilizer efficiently, economically and in environment friendly manner. To established itself as profit making enterprises To work for all round improvement of the strategically important North Eastern parts of the country. To diversify into production of other industrial products. To provide balanced economic growth in the region.

Objective
BVFCL has the following objectives: To take up and implement schemes for energy savings. To continuously improve plant operation safety. To attain high level of capacity utilization. To continuously upgrade the quality of human resources of the company and promote organizational development.

FARM SERVICES
BVFCL is regularly conducting Farmers Training Programmes at village level for educating the farmers on various aspects of modern farming techniques by involving experts from Agriculture Department & Universities. BVFCL is also participating in exhibitions / melas related to Agriculture. BVFCL is not having any soil testing facility at present. During field training programme, farmers are encouraged to draw the soil-samples from their field & carryout soil-

testing at Govt. laboratories to ensure balanced use of fertilizers for improving crop yields and farmers profitability

BVFCL, Namrup consisted of 3 plants

Namrup-I, Namrup-II & Namrup-III

THE STARTING - NAMRUP -I Project planning for Namrup-I Group of plants was started in the middle of 1960 by Hindustan Chemicals and Fertilizers which was merged with Fertilizer Corporation of India on 1st January 1961. After crossing various hurdles successfully, the foundation stone could be laid on 1st January, 1966 by the then Assam Chief Minister Late B P Chaliha and the factory went into stream in the month of August, 1968. Commercial production, however, commenced from 1st January, 1969 with annual capacity of only 55000 MT of urea and 100000 MT of Ammonium Sulphate. Namrup-I was set up at a cost of Rs. 24.96 crore including foreign exchange of Rs.6.36 crore. THE EXPANSION- NAMRUP- II While operation of Namrup -I was in progress, it was found that surplus natural gas would be available in the adjoining Moran-Naharkatia oil fields of M/S. Oil India Limited. Government decided to gainfully utilize this associated natural gas by putting up the 2nd unit of Namrup Fertilizer Plant at a cost of Rs. 74.60 crore including foreign exchange of Rs.23.60 crore. Namrup -II plant went into commercial production in 1976 with annual capacity of 3,30,000 MT of urea. THE AGGRANDIZEMENT - NAMRUP III The availability of surplus natural gas in the Naharkatia-Moran and Lakwa oil fields led to the addition of the 3rd Unit of Namrup Fertilizer Plant at a cost of Rs. 285.55 crore including Rs. 58.67 crore of foreign exchange. The plant went into commercial production in 1987 with annual capacity of 3, 85,000 MT of urea.

AFTER REJUVENATION
Plant Namrup I Annual Capacity 39,600 MT of Ammonia Daily (TPD) 132

Namrup II

2,40,000 MT of Urea 1,44,000 MT of Ammonia

480 558

Namrup III

3,15,000 MT of Urea 1,67,400 MT of Ammonia

800 1050

After revamp Namrup-II plant was commissioned on 22.11.05. The following are the best capacity utilization of Namrup-II and Namrup-III plants:

Best Capacity Utilisation Plant Capacity Utilization Before Revamp Namrup-II UREA Namrup-III UREA 66% (1989-90) 93.34% (2007-08) 57% (1987-88) 64.97% (2007-08) After Revamp

PRODUCTION PERFORMANCE
After revamp plant could run at 50% load only with one stream of Urea Plant due to limitation in supply of gas to 1.72 MMSCMD against requirement of 1.95 MMSCMD. Production from Namrup-II Plant for the last four year is shown in the figure below:
(Figures in lakh Metric Tonne Urea)

0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0.78 0.61 0.28 2005-06 200607 200708 200809 0.62

Production performance of Namrup-III for the last four years is shown in the figure below:
(Figures in lakh Metric Tonne Urea)

3 2.5 2 1.5 1 0.5 0 2.47 2.52 1.29

2005-06 2006-07 2007-08 2008-09

2.07

BRIEF OUTLINE OF PROCESSES OF BVFCL, NAMRUP FERTILIZER PLANTS BVFCL is the only manufacturing public sector organisation in north east India which uses associated Natural Gas from the adjoining oil fields as chief raw material. BRIEF DESCRIPTION Natural gas coming from outside agency is measured in gas metering section. Sulphur present in N G is removed with catalyst as sulphur is harmful to the subsequent chemical reaction. Then N G is compressed in booster compressor to high pressure required for the processed and mixed with high pressure steam for the reformation reactions. NG mixed with process steam enter in to the primary reformer which is packed with catalyst and chemical reaction takes place where NG is decomposed to hydrogen and oxides of carbon. The gas mixture then enters secondary reformer .In secondary reformer, air is added. Further reformation takes place at high temperature and pressure. Along with hydrogen and oxides of carbon, nitrogen is also produced in secondary reformer. The product gases are then passed through Reformer Gas Boiler heat of reaction is utilized to produced steam. The gas mixture is then passed through two converters, where carbon monoxide part is oxidized to carbon di oxide. Carbon di oxide is srripped off from the converted gas by activated hot potassium carbonate solution in absorbing column and released in regeneration column for use in Urea plant as a raw material for producing urea. The gas mixture, stripped off carbon di oxide ,is then entered in methanator where tinces of oxides of carbon are converted to methane by reaching with hydrogen in presence of catalyst. Gas mixture of hydrogen and nitrogen in ratio 3:1, Ammonia is then compressed to high pressure in a compressor and allowed to react in synthesis reactor to produce ammonia. Ammonia produced in different phases is collected in storage tank and transferred to urea plant to produce in urea. Main reaction : 1)CH4 (NG) + H2O ________H2 + CO 10

2)CO + H2O ___________CO2 + H2 3)3H2 + N2 ___________2NH3 (Ammonia) Brief description Carbon di oxide and ammonia react in urea reactor at high pressure and temperature to produce urea solution, where approx. 30% conversion takes place, the rest being carbamate solution. Carbamate solution is then decomposed to carbon di oxide and ammonia in three stages (High pressure, Mediun pressure and low pressure) by reducing pressure and temperature. the gases are separated and concentration of urea is increased in the process. The traces of unconverted components are separated in vacuum section. In this process, urea concentration comes to almost 100%. Concentrated urea solution is then sprayed and allowed to fall freely from a height in Prilling Tower. Urea prills (crystals) are collected from the bottom of the tower in conveyers and stored /packed in bags in Bagging plant for sale. Reaction in Urea Plant: (Carbamate) 2NH3 + CO2 ___________________NH2-CO-O-NH2

NH2-CO-0-NH4___________________NH2 CO-NH2 + H20 (UREA )

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MARKETING REVIEW
On de-merger from Hindustan Fertilizer Corporation (HFC), Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) came into existence on 15-4 2002 operating mainly in North Eastern states, West Bengal and Bihar with an annual capacity of 5.5 lakh MT of urea as projected to be produced by Namrup II and III units. With a market share of more than 85% urea in North East States inclusive of Sikkim, the fortunes of farmers in these states are closely linked to the performance of BVFCL. Apart from these states BVFCL also holds an important position in West Bengal, Bihar and Jharkhand. It also exports urea to Nepal from time to time. With the implementation of new project it will have a major say in the eastern part of the country. The company has to play a major role in the socio-economic development of N.E. region. In future the company has to move & sale approx. 9 lakh MT of urea from the present proposed quantum of 5.65 lakh MT. This calls for clear conceptualization & market segment oriented marketing strategies.

Marketing objectives
Sell the entire quantity of fertilizers produced by the company, keeping minimum inventory levels. Achieve maximum operational efficiency and keep transportation & selling expenses under control. Create and sustain a dealer network, which identifies itself with BVFCL objectives by proper motivations & training. Build up a vibrant marketing organization which is responsive to changes the marketing environment. Strengthen the brand image to emerge as market leader in the entire marketing area. Maintain close and supportive relationship with all departments and officials connected with agriculture, fertilizer and related areas both at the centre as well as the states.

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Marketing Network
The marketing territory of BVFCL comprises of the states of Assam, Manipur, Mizoram, Tripura, Meghalaya, Nagaland, Arunachal Pradesh and Sikkim along with West Bengal, Bihar and Jharkhand. BVFCL markets its Urea fertilizer under the brand name of Mukta Urea. BVFCL enjoys a distinct preference among farming community all over the marketing territory based on fine quality product, compatibility with the major crops of the area. Field marketing of BVFCL is under taken by the Marketing Division of BVFCL. BVFCL is having its corporate marketing office at Namrup and regional offices situated at Guwahati for North Eastern States, Siliguri for West Bengal, and Patna for Bihar/Jharkhand to control and coordinate marketing activities and meeting the requirements of BVFCL Urea of Bihar, Jharkhand and West Bengal & NE States. With a market share of more than 85% in North Eastern states and holds an important position in the states of West Bengal and Bihar.

Dealers Network
BVFCL has its own dealers network for smooth selling of the products in their marketing territory. Dealers are selected in the potential area having good establishment/contacts with local farming community and sound financial health. Thus BVFCL has a well spread retail dealer outlets comprising of private, cooperative and Institutional buyers for wider reach and better marketing of its products. The current status of state wise dealers network is: States Assam Manipur Tripura Meghalaya Arunachal Pradesh Nagaland Mizoram Sikkim West Bengal Bihar Jharkhand Total 13 No. of dealer 177 58 20 11 15 08 8 2 96 196 14 605

Marketing Territories of BVFCL

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Marketing System Plant

Bank

Statement

Marketing HQ
Road/Rail ST RH/Field WH

Namrup

State Office

Supplier MOP/DAP/SSP/Seed s /Insecticides

Dealer

Field Official Delivery Order

Bank

Work Flow Diagram of Marketing Division, BVFCL

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Fertilizer Monitoring System (FMS)

It is system where every record related to distribution and selling of urea is recorded in district wise, state wise, block wise etc. It consists of the following: (i) Master menu where all information related to dealers are recorded; i.e. dealer code, dealer name, phone number, category etc. (ii) It gives the detailed information about the opening stock and the closing stock.

(iii) It also contains information about the total production, dispatches, receipt, field reports etc. (iv) It keeps information about sales and availability. (v) FMS also consists of supply plan.

(vi) It also consists of detailed information of the Delivery Order (DO).

Pattern of Movement
(a)

By Rail- 80% of the products are moved by rail. Here 100% of the transportation cost is bore by the Govt. of India (GOI).

(b)

By Road- Other 20% products are transported by road. Here only 75% transportation cost is bear by the GOI. Rest 25% is bore by the BVFCL. Movement through rail is resorted to on a need basis to distant locations at

the shortest time. Consumption of urea is seasonal thereby rendering transportation, storage and distribution is very important. For this Central Warehousing Corporation (CWC)/State Warehousing Corporation (SWC)s warehouses along with private warehouses are hired for storage of urea.

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Research Methodology
The objective of the project becomes imperative to gather various information about Supply Chain Management of BVFCL, the combination of various effort were followed to obtain both primary and secondary data.. It also provides us online data collection facility; data serve as the basis or raw materials for analysis. Thus the method like sampling depends on the availability of relevant data and their accuracy.

Research Design
Research design constitutes the blueprint for the collection, measurement and analysis of data. It aids the researcher in the allocation of limited resources by posing crucial choices in methodology. Research design is the plan, structure and strategy of investigation conceived so as to obtain answers to research questions. It is more or less a blueprint of research. A conclusive research method was adopted with the view of it being suitable to serve the purpose of drawing an authentic and convincing conclusion to the research and making it a success. Based on the information gathered from different respondents, suitably recommendations have been made accordingly.

Sources of data
Data has been collected from the following sources Primary data Secondary data Primary data: It is the data which is collected directly by the researcher or from firsthand experience. Secondary data: It is the data which has been collected in the past or has been published earlier and used as reference in research.

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Primary data used in this study are collected through observation and personal interview by using questionnaire. Secondary data are collected from organizations records, annual reports, magazines, manuals etc.

Sampling design
The questionnaire survey has been undertaken for the officials of marketing department of BVFCL and the other for the nearby dealers of the product of BVFCL Sample size The sample size consists of the following: Total no. of officials in the Marketing dept. of BVFCL No. of dealers taken for questionnaire : 10 : 25

The sample size of 35 persons was considered for the study. Sampling Technique The sampling technique adopted in this study is random sampling technique. This technique offers variability in sample as samples collected through this technique represent a proper cross section of population. Research tool Questionnaire Selection of sample The samples of this study are the officials of Marketing Dept. of BVFCL from 1st of june to 31st of July 2011. Tools of data analysis Questionnaire is used as the main research instrument keeping in mind the objective of the project.

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DATA ANALYSIS
Analysis
The appropriate method of data analysis depends to a large extent on the nature of information provided by the respondents in the interview. In this study, efforts have been made to erase out the problems and difficulties faced in analyzing the Marketing & distribution channels, from the data obtained from the officials in the Marketing Dept of BVFCL and from the dealers. Primary data has been the main source of information. For this purpose interview method has been used. The percentage method was adopted to evaluate the questionnaires. Apart from the primary source of information, secondary data source like Journals, Text Books, Annual reports, Websites etc. also helped for further analysis of data.

Findings
In order to make the study more reliable and valid all the statements in the questionnaire are analyzed step by step and certain conclusions were made. The percentage method was used to find out the different outcomes of the questionnaire. In certain questions the possible outcomes were predetermined and as such options were given to the respondents to make choices.

Existing Distribution Channels

BVFCL has a distribution policy of their product and both Govt. and the company jointly determine the distribution policy. It has a well-spread dealer network comprising Private, Cooperative and Institutional buyers for prompt distribution and wider reach to the consumers and for better marketing of its MUKTA brand urea in the entire North-Eastern States, West Bengal, Bihar, Jharkhand, Sikkim and Nepal.

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The present distribution channels of B.V.F.C.L are shown below:

Production Unit Urea Dispatch Godown Dealer Retailer FARMER Institutional Cooperative Retailer Dealer

1. Response of officials on the impact of distribution channels of BVFCL All marketing officials are of the same opinion on the following points. a. They agreed that the present distribution channels are successful in reaching out

the consumers in right time at right place. b. c. The present distribution channels do not affect the quality of the product The present distribution channels helps in increasing sale of product.

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100% 80% 60% 40% 20% 0% 1 100%

Chart showing opinion of marketing officials on the impact of distribution channels 2. Opinion of officials on the existing distribution channels for the distribution of the product (Urea)

11%

89%

Yes (Existing distribution channels are sufficient) No (Existing distribution channels are not sufficient)

According to 89% of the marketing officials, the existing distribution channels are sufficient for the distribution of the product. However, 11% of the marketing officials think that the existing distribution are not sufficient for the distribution of the product because sometimes the demand of the product is more and there is not sufficient distribution channels to meet the increasing demand.

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3. Opinion of officials on the role played by the distribution channels Different individuals have different opinion about the role of the present distribution channels of BVFCL product. 66% of the marketing officials think that the present distribution channels make the process of distribution easy. 26% of the officials think that the present distribution channels help in fulfilling the demand and supply. Remaining 8% of the marketing officials say that the present distribution channels are helpful in communication.0% of the marketing official say that the present distribution channels are helpful in price determination.

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Percentage showing the role of present Distribution channels of BVFCL product

70% 60% 50% 40% 30% 20% 10% 0% 1 66% 26% 8% 2 3

Makes the process of distribution easy.

Fulfills the demand and supply. Helps in communication.

4. Opinion of officials on the limitations of distribution channels Regarding the limitation of the distribution channels, 75% marketing officials opines that there is no limitation. Remaining 25% says that there is limitation such as delay in reaching the product due to transporters strike or bandh etc.

No (There are No limitations on distribution channels) Yes (There are limitations on distribution channels)

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5. Response of officials regarding export expansion plans of BVFCL In respect of export expansion planning of BVFCL, 70% the officials says that export of their product other than Nepal is under consideration, but other 30% says that due to lesser/shortage of production export expansion is not possible. But it has not been finalized yet as clearance from the central government is required.

100% 80% 60% 40% 20% 0% 1

70%

30%

Opinion of officials on export expansion plans of BVFCL Export expansion is not support

6. Response of officials regarding the Limitations in exporting BVFCL product Regarding limitations/restrictions, 75% of marketing officials think that there are limitations/restrictions in exportation of product of BVFCL. 10% officials says there are no limitations as such. But remaining 15% say that exporting of product depends on the availability and production performance at plant.

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 10% 2 15% 3 75%

Yes (There are restrictions faced in export of product of BVFCL)

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No (There are no limitations faced in export of product) Depends on availability and production performance at BVFCL plant.

7. Response of officials regarding, decreasing on the sale of Urea All of the marketing officials think that sale of urea decreases because of lesser amount of production by the plants.

8. Response of officials regarding the Export of BVFCL product In regard to export of BVFCL product (Urea), 87% marketing officials agree that present distribution channels are advantageous to export their product. Remaining 13% do not think that this is advantageous for the purpose because fertilizer distribution and movement is controlled by the Govt. of India.

100% 80% 60% 40% 20% 0% 1 13% 2 87%

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Yes (Present distribution channels are suited for product export) No (Distribution channels are not advantageous due to govt. control)

9. Response of officials on the viability of distribution channels in Present age In the age globalization, 77% of marketing officials think that present distribution channels are sufficient to increase the sale of companys product. But remaining 23% say that this is not sufficient for increasing the product sale of the company.

Yes (Present distribution channels are sufficient to increase sale of Companys product) No (Present distribution channels are not sufficient to increase sale of Companys product)

10. Factors which dealers consider while taking dealership of a company Dealers before taking the dealership analyze various factors such as price, quality, brand image, hassle free agreement etc. The bar chart below depicts the various factors the dealers look for while taking up dealership of a company. Percentages showing various factors dealers look for while taking up dealership of a company

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Analysis of data reveals that 62% of the dealers give importance to quality and 38% look for brand image while taking up the dealership of the company. Dealers do not prefer price because price is fixed by the government. As BVFCL is the only company of its kind in this region, so there are no competitors. For this, dealers have to accept the terms and conditions of the agreement and abide by all rules and regulations as stipulated by the company. 11. Role of transportation according to dealers Present mode adopted for transportation of BVFCL product is road and railways. Generally transportation cost by road is more than rail transport. The company, therefore, prefers to transport major part of the product by rail. In such situation private dealers have to wait for their requirement and due to non-availability of product at manufacturing unit (BVFCL) as a result delay occurs. 55% of the dealers say that the distributions channels are time consuming majority of the Manipur, Mizoram dealers opt for roads as their mode of transportation and transportation by roads are slower than railways which also make distribution time consuming. Other factors consist of bad road conditions, etc. and the remaining 45% say that they are not time consuming.

Diagram showing opinion of dealers on the effectiveness of distribution channels

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 Yes (Present distribution channels are time consuming) No (Present distribution channels are not time consuming)

12. Opinion of dealers on the delay faced in product supply to consumers demand In this respect, 42% of dealers agree to the above limitation and 58% are of the opinion that there are no limitations in supplying the product according to consumers requirement. LIMITATION FACED BY DEALERS

13. Opinion of dealers on the quality of product deteriorates due to present distribution channel In this respect, 15% of dealers agree to the product deterioration and 85% are of the opinion that there is no deterioration in the BVFCL products with the existing distribution channel.

15% (Yes product deteriorates) deteriorates)

85% (No product doesnt

Pattern of Movement: From the study we came to know that Movement through rail is resorted to on a need basis to distant locations at the shortest time.

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80% of the products are moved by rail. Here 100% of the transportation cost is bear by the Govt. of India (GOI). Other 20% products are transported by road. Here only 75% transportation cost is bear by the GOI. Rest 25% is bear by the BVFCL.

Movement Pattern of BVFCL Products

Factors affecting Distribution Channel From the study we have seen that the most affecting factor of reaching the BVFCL product to end user (farmers), i. e. Due to non- availability of product at manufacturing unit (BVFCL ). The figure shown below,different factors affecting the Distribution Channel.

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31

Identified marketing channels From the study we have seen that there are two types of marketing channels are prevailing in the market which can be shown in the following way-

MANUFACTUR ER

DEALER

Channel-II
RETAILER

CONSUMER

Channel-I

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FINDINGS
1. The government ensures the quality of fertilizers through Fertilizer Control Order (FCO) issued under Essential Commodities Act (ECA) to regulate the price, trade, quality and distribution of fertilizers in the country. The State Govt. is the executing agencies to implement the various provisions of FCO. The order strictly prohibits the manufacture, import and sale of any fertilizer. Since the fertilizer is a controlled product, there are limitations/restrictions for the company (BVFCL) to take up distribution strategy on their own. 2. The States of the North East including Sikkim are particularly of a disadvantage due to difficult terrain and generally inadequate rail and road infrastructure. The difficulties of movement and transportation are compounded in these States further by problems arising out of militancy, limited source of supply etc. The per tonne cost of transportation as a result, has been much higher in these States as compared to the rest of the country. These have been the major bottleneck to reaching urea supplies to these States both in time and space. 3. Considering the above and with a view to ensure timely and adequate supply of urea which would help in boosting agriculture production in the region, the Govt. of India decided to reimburse the freight for carrying urea in actual basis through a Speed Freight Reimbursement Scheme. 4. Despite of various government regulations, other limitations, most of the marketing officials are satisfied with the present distribution channels as it makes the process of distribution easy. 5. From the survey, it was found that there is a strong distribution channel of BVFCL in the North-Eastern Region. 6. It has been emerged that present distribution channels increase the sale of the product and it does not affect the quality of the product. 7. Presently the company is exporting urea to Nepal. Further planning of export to Bhutan, Bangladesh is on the pipeline. The company is expecting to execute the same in the near future, based on the availability of the product and government clearance.

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8.

Company is also doing trading business and tie-ups with different other national and international fertilizers companies to satisfy the different needs of the consumers

9.

During the survey on dealers, it was found that majority of them have taken up dealership of the product because of its quality and brand image.

10.
11.

Road and rail are the main mode of transportation of companys product. On the other hand, due to technical problems arises of running old machineries and plant, sometimes production breakdown occurs, resulting in non-availability of product thereby dealers have to suffer when buffer stock also reduced and ultimately consumers do not get the product in required quantity in required time. Despite of these difficulties, the study brought into light the attitude of the dealers towards the company which is very good.

12.

It was found that the company is facing losses because of the old and out dated plants and machineries.

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SWOT ANALYSIS
Strengths
1. It is the only producing company in the entire Assam, North eastern States, West

Bengal, Bihar & Jharkhand. 2. Natural gas availability from the nearby oilfields of upper Assam. 3. Lower transport cost of the natural gas because of location of Namrup plants near to the oilfields. 4. Large land availability for expansion and diversification.

Weaknesses
1. Old outdated technology adopted in the units. 2. Revamping has not totally offset the disadvantage of the energy intensive old technology. 3. Non-availability of skilled & trained manpower and overstaffing of unskilled labour force. 4. Average age of present employee is high -- around 50 years. 5. Low rate of fertilizer consumption in north eastern states. 6. The design capacities of Namrup-II & III plants are very low compared to the present day minimum economic size of 750 Lac tones per annum.

Opportunities
1. Scope for marketing of urea to Complex manufacturers and export. 2. Scope for diversification to produce hydro-carbon based chemicals and generation of power. 3. Scope for eco-friendly agriculture based business development.

Threats
1. Competition from other Urea manufacturing companies having lower energy consumption and lower cost of production. 2. Threat of closure of plants, due to high cost of production. 3. Disturb socio-economic scenario. 4. Uncertainity of continuation of supply of natural gas against requirement of 1.95 MMSCMD of gas .M/s OIL India has been supplying at 1.72 to 1.80 MMSCMD gas at the moment.

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CONCLUSION
The project report on the Supply Chain Management of BVFCL, Namrup is just an attempt to find out the overall marketing activities of the organisation. For a better understanding, the Supply Chain Management has been studied by me. This project will act as a comprehensive elementary guide to the management for further expansion and improvement of the distribution channels. It will also helpful to know if there is any scope of increasing the market share for urea as compared to the present reach in India. Brahmaputra Valley Fertiliser Corporation Limited, Namrup is a Public Sector Undertaking (PSU) and the only urea company in the eastern half of India. It sells its products in the states of Assam, Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Nagaland, Tripura, Sikkim, Bihar, Jharkhand and West Bengal. BVFCL has its Corporate Marketing Office at Namrup from where it controls it marketing activities. The marketing department controls the day-to-day supply as per the fixed norms of the Government so that the farmers are benefited with good quality Urea at a cheaper rate and at outlets nearer to them. Fertilizer Promotion and Agricultural Research Division (FP & ARD) helps the farmers by educating them and also by using mobile soil testing lab. Apart from Urea, the company is also producing Bio-fertiliser and Organic fertiliser. The marketing of these two has not yet started. Two more projects are under process, that of marketing of insecticides and marketing of other fertilisers like Potash and Di ammonium Phosphate. Therefore, BVFCL has a long way to go.

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REFERENCE

Research Methodology ____________ C. R. Kothari A Framework for Marketing Management ____________ Philip Kotler Annual Report BVFCL Circulars Report www.google.com

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CERTIFICATE

This is to certify that Mr. Shankarjyoti Hazarika, Regd. No. 10A(M)-79, student of MBA (Agri Business), College of AGRICULTURE, AAU JORHAT-785013 has undergone Summer Training Programme at
BRAHMAPUTRA VALLEY FERTILIZER CORPORATION LIMITED, Namrup-

786623, Dist-Dibrugarh (Assam) from 1st june to 31st july 2011 as a part of MBA (Agri Business) Programme. The report of the student has been examined and found satisfactory/unsatisfactory.

Mr. S.K. Patnaik Manager Training BVFCL,Namrup

Mr. Ashim Dutta Head Marketing & Sales BVFCL,Namrup

Dr (Mr)B.K Barooah Head Agrl. Economics & F. M.. AAU Jorhat -13

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