A Report on

Organization study of
INDIAN FARMERS FERTILISER COOPERATIVE LTD.

Submitted in partial fulfillment of the Requirements for the degree of PGDM

SUBMITTED BY: SATYA PAL REG NO. (11PGDM055) UNDER THE GUIDANCE OF
INTERNAL GUIDE Prof. PUNEETA GOEL (FACULTY OF AAMS) EXTERNAL GUIDE Mr. D.KALIA Chief Manager (TRG)

ACHARYA ACADEMY OF MANAGEMENT STUDIES #3, Lingadheeranhalli,Off Magadi Road, Bangalore-91
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STUDENT DECLARATION

This is to state the training report conducted an organizational study on INDIAN FARMERS FERTILISER COOPERATIVE LTD (IFFCO), is based on the organizational work carried out by me under the super vision of my project guide Prof.

PUNEETA GOEL towards the partial fulfillment of requirement for the A.I.C.T.E approved P.G.D.M. program. This report has not been submitted to any other university for the award of and degree/diploma.

PLACE: BANGLORE DATE:

Signature of Student SATYA PAL

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Acharya Academy of Management Studies
(Recognized by AICTE, Ministry of HRD, New Delhi)
#3, LINGADHEERANAHALLI, MAGADI ROAD, BANGALORE-560 091 Tel: +91-80-23245515/16/17/18, Fax: +91-8023245519 www.acharyaabbs.ac.in

CERTIFICATE FROM GUIDE

This is to certify that internship training titled “An organizational study carried out by Mr. SATYA PAL has been prepared under my guidance and supervision. The work has been satisfactory and is recommended for consideration towards award of P.G.D.M. diploma.

Place: Bangalore Date:

Signature of Guide Prof. PUNEETA GOEL

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Acharya Academy of Management Studies
(Recognized by AICTE, Ministry of HRD, New Delhi)
#3, LINGADHEERANAHALLI, MAGADI ROAD, BANGALORE-560 091 Tel: +91-80-23245515/16/17/18, Fax: +91-8023245519 www.acharyaabbs.ac.in

CERTIFICATE

This is to certify that SATYA PAL, Reg no: 11PGDM055 a student of Acharya Academy of Management studies during the academic year 2011-2013 has successfully completed the internship training under the guidance of Prof.

PUNEETA GOEL in partial fulfillment of the requirements for the award of Post Graduate diploma in Management.

Place: Bangalore

Director

Date:

AAMS

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ACKNOWLEDGEMENT

I was advised and guided by a lot of persons, during the course of this project work, and indeed grateful to all the persons for enabling the successful completion of this project.

I am highly indebted and grateful to the Director DR. H.R. VENKATESHA Acharya Academy of Management Studies, for their encouragement and support.

I am indebted to Prof. PUNEETA GOEL Faculty of Acharya Academy of Management Studies for this valuable advices and kind cooperation, being my guide and motivator.

I sincerely thanks to Mr. D.KALIA Chief Manager (Training & Development deptt.) IFFCO AONLA, for their kind cooperation and valuable guidance towards the successful completion of this project work.

PLACE: BANGALORE DATE:

SATYA PAL

11PGDM055

ACHARYA ACADEMY OF MANAGEMENT STUDIES BANGALORE

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LIST OF CONTENTS

SL. NO. 1. 2.

CONTENTS
INTRODUCTION

PAGE NO.
01

INDUSTRY PROFILE

02-05

3.
COMPANY PROFILE 06-21

4.

PRODUCT PROFILE

22-27

5.

ORGANIZATIONAL CHART 28-36

6.

FUNCTIONAL DEPARTMENTS

37-50

7.

SWOT ANALYSIS

51-54

8.

FINDINGS & SUGGESTIONS

55-57

9.

CONCLUSION

58-59

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10.

BIBLIOGRAPHY

60-61

LIST OF CHART: HIERARCHY OF IFFCO  FACTORY CHART OF IFFCO AONLA  MARKETING CHART  UREA DISTRIBUTION CHANNEL PROCESS

PAGE NO.
31

34

39

40

FINANCE & ACCOUNTS

41

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INTRODUCTION
The Indian fertilizer industry has been supplying a substantial portion of the growing demand of fertilizers within the country. India is the third largest producer of fertilizers in the world. There are 60 large size fertilizer plants in the country, manufacturing a wide range of nitrogenous, phosphates and complex fertilizers. Besides, there are 81 medium and small scale single superphosphate units. The cooperative sector has come to play a significant role in the Indian fertilizer industry. In terms of nutrients, the share of cooperative sector in the installed capacity is 19.7 % for nitrogen and 10.2 %for phosphate. Indian Farmers Fertilizer Cooperative Limited (IFFCO), a Multi-unit Co-operative Society established on November 3, 1967 accounts for 64% of the installed capacity of Nitrogen and the total of the Phosphate capacity in the cooperative sector. In the last 41 years IFFCO has emerged as the pioneer venture in the cooperative sector. It has witnessed a meteoric rise and has blossomed into the largest manufacturer and marketer of fertilizers in the country. The success of IFFCO has encouraged the growth of the cooperative movement in INDIA. The following is an organizational structure study of Indian Farmers Fertilizer Cooperative Limited with special analysis of the IFFCO Aonla plant.

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GLOBAL INDUSTRY
The International Fertilizer Industry Association or IFA is a not-for-profit trade association that represents the global fertilizer industry, on issues related to the promotion of plant nutrients, improvement of the operating environment of the member companies and the collection and compilation of industry information.

IFA has some 540 members in about 85 countries. About half of the membership is based in developing countries. IFA member companies represent all activities related to the production, trade, transport and distribution of every type of fertilizer, their raw materials and intermediates.

The global fertilizer industry produces some 170 million tonnes of fertilizer nutrients annually. These are used in every corner of the globe to support agricultural production. There is no substitute for the nutrients absorbed by crops. As a major source of these, fertilizers therefore represent an essential ingredient in the drive towards sustainable agriculture and world food security.

IFA's membership also includes organizations involved in construction, engineering, consulting, agronomic research and training.

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INDIAN INDUSTRY
Fertilizers have played a vital role in the success of India‟s green revolution and consequent selfreliance in food grains production. The increase in fertilizer consumption has contributed significantly to sustainable production in food grains in the country. Fertilizer is generally defined as “any material, organic or inorganic, one or more of the chemical elements required for plant growth” India is the third largest fertilizer producer in the world. Fertilizer is a crucial input contributing to about 40 per cent of the productivity of the crop. With expanding agricultural production, improvement in technology and growing awareness among farmer, the consumption of agrochemicals has been on the upswing. The agrochemicals industry is made up of insecticides (74%), herbicides (20%) and fungicides (6%). India is one among the most dynamic generic pesticides manufacturing countries with a total market size of Rs 89 billion per annum. And yet, India‟s own average consumption of pesticides is very low at 480gms per hectare which results in crops worth about Rs 120 billion being annually destroyed by pests. Crop protection has assumed special importance since food grains demand in the country is supposed to reach an estimated 343 million tonne by 2020. The agrochemical industry is spread over around 20 large manufacturers and 600 formulators. While the organized sector contributes 55% to the industry‟s output, the small scale sector makes up for the balance. The Indian industry has been focusing sharply on integrated crop management (ICM), increasing exports of genuine pesticides and concentrating on farmer friendly activities. The pesticide industry is targeting a 10% share of global pesticides market and has been working on the ICM programmed to introduce safer applications, spray devices and crop protection through balanced use of biological and chemical pesticide. The exports cover pesticide intermediates. Pesticides export from India was growing at the rate of 15% and is expected to witness a more accelerated growth. Spurious chemicals are growing at rates varying from 10% to 12% and have cornered a large chunk of the market.

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The generic pesticide players include Excel Industries, Cheminova India, United Phosphorus, Rallis India, Aimco Pesticides, Bharat Rasayan, Bayer (India), Aventis, Meghmain Organics etc. producing a range of products like urea, DAP,MOP, Nitrogenous fertilizer(N), Phosphatic fertilizer(P), Potassic fertilizer(K) and NPK etc. To conclude, fertilizer is a key ingredient in ensuring the food security of the country, as it increases the production and productivity of the soil. The domestic food grain production target has been set at 320 million tonns by 2011-2012. This target can be achieved by higher productivity through improved farming practices, expansion of irrigation, better seeds and extensive and balanced use of fertilizers. Towards this end, the government of India is now planning to raise the production of urea by the end of 11th Five Year Plan by taking concrete steps to boost production and productivity. All these things show the definite growth of fertilizer industry in India.

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Indian Farmers Fertilizer Co-operative Limited

Type

Cooperative

Founded

November 3, 1967

Headquarters

New Delhi, India

Area served

India

Natwarlal Key people

Pitambardas

Patel,

Chairman

Dr. Udai Shanker Awasthi, CEO

Fertilizers Products

211.9 billion (US$3.84 billion)(2010-11) Revenue Net income 7.914 billion (US$143.24 million)(2010-11)

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INTRODUCTION ABOUT IFFCO
The fertilizer industry in India consists of three major players; The Government

owned Public Sector undertakings, Cooperative Societies like IFFCO, KRIBHCO and units from Private sector. There are about 33 major producers producing N and NP/NPK fertilizers in the country at present. The fertilizer industry of India had made constructive use of the fertilizer provided by the Government of India to ensure that the country achieved reasonable selfsufficiency in food grain production. The fertilizer industry has organized itself through S Fertilizer Association of India (FAI) to coordinate with the Government of India to achieve the macro-economic objective related to agriculture sector and to provide other services.

During mid- sixties the co-operative sector in India was responsible for distribution of 70 per cent of fertilizers consumed in the country. This sector had adequate infrastructure to distribute fertilizers but had no production facilities of its own and hence dependent on public/private sectors for supplies. To overcome this lacuna and to bridge the demand-supply gap in the country, a new cooperative society was

conceived t o specifically cater to the requirements of farmers. Thus was born IFFCO, the world‟s largest fertilizer cooperative.

It was a unique venture in which the farmers of the country through their own cooperative societies created this new institution to safeguard their interests.

Indian Farmers Fertilizer Cooperative limited, a multi -state Cooperative has emerged as a role model for cooperatives Over 44 years of its inception; IFFCO has turned into a true Cooperative – Of the Farmers, By the Farmers and For the Farmers. IFFCO has steadily grown in strength and stature from a modest membership of 5 7 s o c i e t i e s i n 1 9 6 7 6 8 t o 3 9 5 6 4 s o c i e t i e s a s o n 3 1 St March,2011. The initial equity capital of Rs.6 lakh contributed by the cooperatives in 1967-68 has also gone up to a paid-up capital of Rs.426 crore. Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on November 3, 1967 as a Multi -unit Co-operative Society. On the enactment of

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the Multistate Cooperative Societies Act 1984 which was amended in 2002, the Society is deemed to be registered as a Multi state Cooperative Society. The Society is primarily engaged in production and distribution of fertilizers. The bye laws of the Society provide a broad framework for the activities of IFFCO as a Cooperative Society. A pioneer in this field, IFFCO‟s growth reflects its belief in the strength of the farmer. Several prestigious awards stand testimony to the fact that IFFCO is driven by its values and the dedication of its people. This is an organization that believes in fair play and has always followed transparent and professional practices in corporate governance.

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IFFCO-AONLA UNIT
The Indian Farmers Fertilizer Co-operative Limited (IFFCO) is a national level multi-unit cooperative society engaged in manufacturing and marketing of chemical fertilizers. The Society was registered in 1987 and presently having a membership of over 37,000 cooperatives as shareholders. IFFCO is presently operating four factories located at Aonla and Phulpur in Uttar Pradesh and Kalol and Kandla in Gujarat. IFFCO produced over 6 million tones of fertilizers in 2004-05 and contributed about 18% to the total Nitrogen and 24% to the total P205 produced in India. IFFCO markets its fertilizers through Cooperative Agencies and Member Cooperative Societies. Aonla project of IFFCO is one of the six natural gas based fertilizer plants set up in the country on the H.J.B. pipe line which runs through four statuses. This project has been designed to produce 7.26 lake tons of Urea per year with plant capacity of 1350 TPD Ammonia and 2200 TPD of urea .The site is 28 km south west of Bareilly on Bareilly Aonla Road .

The total land acquired by IFFCO Aonla unit is 1273 acres for factory and township. The project consists of main plants, Ammonia plant, urea plant, steam generator & power generator plant, other offsite facilities like water supply and treatment system storage for spares consumables & products, bagging plant laboratory, Inert gas plant, instrument air compressor etc. In addition to these infrastructures facilities such a railway station siding etc. are also created.

AONLA PLANT (evening view)

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(IFFCO AONLA)

PLANTS OF AONLA UNIT:
There are mainly four plants in the unit namely: 

AMMONIA PLANT:

There are two streams of Ammonia Plant having the capacity to produce 2x1520 MTPD of liquid ammonia. The technology is based on Holder Topside, Denmark process with natural gas and naphtha as main raw material.

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UREA PLANT:

There are four streams of Urea Plant having the capacity to produce 2x1310 MTPD of urea fertilizers. The technology is based on Snamprogetti, Italyon ammonia stripping process.

PRODUCT HANDLING PLANT:

Product handling plant is composed of Urea storage known as Silo and packing and transport activities. Two silos of 45,000and 30,000MT capacity have been provided to Urea product to ensure continuous urea production even if it is not taken off due to nonavailability of rail wagons or seasonal d e m a n d fluctuations. 

STEAM AND POWER GENERATION PLANT :

T o m e e t t h e c o n t i n u o u s power supply needs of the main plants, captive power plant and stem generation facilities have been provided. In this plant, two gas turbines each having the capacity of 18MWalong with heat recovery steam generation unit has been provided to cater to the plant needs of power and steam. Additionally, HRU unit of Ammonia –II add to the steam supply of the complex.

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OBJECTIVES OF IFFCO:The main objectives of the Society are as follows: o IFFCO is a cooperative institution of the farmers by the farmers. o Strengthening cooperation distribution system. o Educating and guiding the farmers. o Promoting nations growth through modern farming techniques. o Improving agriculture productivity, through balance fertilizer applications. o To promote the activity for enriching the life of rural. o To achieve self reliant and self generated economy.

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MAJOR AWARDS RECEIVED BY IFFCO

KALOL:  Seven awards for all performance from FAI.  Two awards for industrial safety from GOI.  Awards technical innovation from FAI.  Two Rajya Bhasha shields for promoting Hindi.  Awards for safety from National safety council, Chicago.

PHULPUR:  Four awards for productivity from NPC.  Six national safety awards for GOI.  Two awards for overall performance from FAI.  Two awards for technical innovation from FAI.  Three national energy conservation awards.  There awards for west environment protection from FAI.

AONLA:  Awards for west implemented project (II nd prize) from GOI.  Awards for conservation of energy from GOI.

 

Aonla wins CII Environmental Best PracticesAward-2011. IFFCO Aonla Unit has been awarded the 'EDGE' winner prize.

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 IFFCO Aonla & Paradeep Unit have won the prestigious FAI awards presented on 3rd Dec.'2009. IFFCO Aonla Wins "Gold Award“10th Annual Green tech Environment Excellence Award 2009.  IFFCO Aonla Unit Wins National Safety Council of India Safety Award-2004

KANDLA:  Ten safety awards from National Council, Bombay GOI.  Twenty one-safety awards from Gujarat Safety Council, Baroda.  Nineteen awards for safety from National safety council, USA.  Five awards for overall performance from FAI.  Rajya Sabha awards for promoting Hindi.  Best productivity awards from NPC.

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LOGO OF IFFCO
The Logo any organizations is very important by which the company is known to everyone or that is identity of the company. After one year of establishment in 1968 the organization has decide to make Logo of IFFCO. The executive of the company said that which can be easily fit any place or easily changeable according to the place & made by simple geometrical method. So the Logo is made by at last Mr. M.R.Gupta chief visualize developer is like that

Logo‟s green color shows the faith of the farmers, they believe that after Using the urea their fields will always be green, the remaining white color shows that the quality of the IFFCO‟s product is very good & oval shape is meant for prosperity.

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BUSINESS PRINCIPLES OF THE COMPANY

The principles of the company are as follows:
o Appreciation of national need of generation up to optimum return of investment. o To fair price of the product manufactured by the company is subsidy to the farmers. o Total consumer satisfaction as a quality of product, price of the product and better service after selling the product. o Effective management information system. o To increase the efficiency to maintain better human relation and discipline among all the employees. o To maintain better human relation and discipline among all the employees. o To develop good relation with customers.

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KEY RESULT AREAS OF IFFCO

1. FERTILIZER PRODUCTION: The main aim of IFFCO is to remove the dependence of the Indian Fertilizer sector on Foreign Imports. For achieving this goal IFFCO runs and maintains its Five Production plants and also aims to increase its production capacity by adopting new technology and acquiring new plants. 2.

PROMOTION OF AGRICULTURAL AND RURAL DEVELOPMENT: To
achieve this target IFFCO undertakes production, processing and manufacture of insecticides, pesticides, seeds, agriculture machinery and implements and other agricultural production requisites by setting up or taking on lease manufacturing units either directly or in collaboration with or as a j o i n t v e n t u r e w i t h o t h e r C o o p e r a t i v e I n s t i t u t i o n . A l s o I F F C O ‟ s C O R D E T i s a m a j o r endeavor in this direction.

3. DEVELOPMENT OF AGRICULTURAL COOPERATIVES: IFFCO aims to undertake, promote, assist and encourage development of cooperatives with special thrust on sustainable agriculture and tries to provide for social, economic and culture development of the members through cooperative bodies, voluntary institutions and other entities. IFFCO also promotes r e s e a r c h a n d t r a i n i n g o n t h e a p p l i c a t i o n o f m o d e r n m a n a g e m e n t , t e c h n o l o g y a n d g l o b a l experience for cooperative development

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VISION & MISSION OF THE IFFCO VISION - 2015
In pursuit of its growth and development, IFFCO had embarked upon and successfully implemented its Corporate Plans, „Mission 2005‟ and „Vision 2010‟. These plans have resulted in IFFCO becoming one of the largest producer and marketer of Chemical Fertilizers by expansion of its existing Units, setting up Joint Venture Companies Overseas and Diversification into new Sectors.

IFFCO has now visualized a comprehensive plan titled „Vision-2015‟ which will be guided by the following objectives:
a) Production of fertilizers through expansion of existing units. b) Setting up of fertilizer production facilities in India and outside the country through joint ventures. c) Diversification into other Profitable Sectors. d) Strengthening its raw material sourcing through Strategic Joint Ventures in India and abroad. e) Strategic Alliances through IFFCO Consortium.

The salient features of the ‘Vision-2015’ document are as under:
a) To stand as a Global Leader in Fertilizers Production to cater to the food security need of the nation. b) Maximizing the synergies of the Core Business through Downstream Value Additions and Forward/ Backward Integrations. c) Enhancing presence in International Markets through Strategic Joint Ventures and Synergistic Acquisitions. d) Diversification into other profitable businesses to maximize returns to our stakeholders.

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e) Leveraging State of the Art Technologies and Global best practices to retain its global competitiveness. f) Promoting Integrated Nutrient Management to improve efficiency of Fertilizer use and promoting location specific research on efficient fertilizer practices. g) To bring in Sustainability and Strategies to prevent Climate Change by reducing Energy Consumption, better Resources Management and promoting Renewable Energy sources. h) To help the Cooperative Societies become economically strong, professionally managed and to equip the Farming Community with advanced agricultural practices for improved Productivity, to ensure an Empowered Rural India. i) Achieve Fertilizers Production / Marketing target of 15 million Tonne per annum with an annual turnover of Rs. 30,000 crores.

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MISSION
     To provide to farmers high quality fertilizers in right time and in adequate qualities with an objective to increase crop productivity. To make plants energy efficient and continually review various schemes to conserve energy. Commitment to health, safety, environment and forestry development to enrich the quality of community life. Commitment to social responsibility for a strong social fabric. To institutionalize core values and create a culture of team building, empowerment and innovation       which would help in incremental growth of employees and enable

achievement of strategic objectives. Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for stake holders. Building a value driven organization with an improved and responsive customer focus. A true commitment to transparency, practice. To acquire, assimilate and adopt reliable, efficient and cost effective technologies. Sourcing raw material for production of phosphates fertilizers at economical cost by entering into joint ventures outside India. To ensure growth in core and non-core sectors. accountability and integrity in principle and

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IFFCO's NPK/DAP
As far as Indian farmer is concerned, IFFCO's NPK/DAP is not just a source of crucial nutrients N, P, K for the crops, but is an integral part of his/her quest for nurturing mother earth. The bountiful crop that results from this care is an enough reason for the graceful bags of IFFCO NPK/DAP bags to be an integral part of the farmer‟s family. The two grades of NPK produced by IFFCO, 10:26:26 and 12:32:16, indicating the content of N, P, K proportion, is tailor made to supply the exact composition required for replenishment of the soil. The Indian farmer's confidence and trust stems from the fact that IFFCO's NPK/DAP are merely a part of a complete package of services, ably supported by a dedicated team of qualified personnel. More importantly, they are aware, IFFCO is a cooperative society owned by farmers cooperatives.

ABOUT DAP/NPK DI-AMMONIUM PHOSPHATE
It is the most popular phosphate fertilizer because of its high analysis and good physical properties. The composition of pure salt of DAP is N-21.19% and P210 -53.76%.Fertilizer grade DAP is 18:46:0.

NPK COMPLEX GRADES
NPK complex fertilizers produced at Kandla are DAP based grades. At present two grades Grade I - 10:26:26 and Grade II - 12:32:16 are produced. Granular NPK complexes are free flowing and do not pose any problem during handling and storage. However, exposure of material for long period to very high humidity may cause caking. Therefore, NPK complexes are bagged in quality tested HDPE bags to prevent ingress of moisture.

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IFFCO's UREA
IFFCO's Urea is not merely a source of 46% of nutrient nitrogen for crops, but it is an integral part of millions of farmers in India. A bag of IFFCO's urea is a constant source of confidence and is a trusted companion for Indian farmer.

When farmers buy IFFCO's urea, they know that what they get is not just a product but a complete package of services, ably supported by a dedicated team of qualified personnel.

ABOUT UREA
Urea is the most important nitrogenous fertilizer in the country because of its high N content (46%N). Besides its use in the crops, it is used as a cattle feed supplement to replace a part of protein requirements. It has also numerous industrial uses notably for production of plastics. Hat it is their own urea produced and supplied by a cooperative society owned by the iffco.

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BIO – FERTILISERS
A bio fertilizer unit was established at Cooperative Rural Development Trust, Phulpur (Uttar Pradesh) in 1996 - 97 and other at Kalol (Gujarat) in 2008-09 with an annual capacity of 75 MT and 165 MT respectively of different cultures such as Rhizobium, Azotobacter, PSM, Azospirillium and Acetobacter

PHOSPHATE SOLUBILISING MICRO ORGANISM - Several soil bacteria and fungi possess
the ability to bring insoluble phosphates into soluble forms by secreting organic acids. They can be applied to and recommended for all crops

RHIZOBIUM - It is the most important nitrogen fixing organism. It live symbiotically in the
root nodules of leguminous plants and supply nitrogen to the plant through nitrogen fixation. Besides, supplying nitrogen to the crop, nitrogen fixed by legume - Rhizobia association would also leave residual nitrogen for the succeeding crops. The beneficiary crops are Groundnut, Soybean, Red-gram, Green-gram, Black-gram, Lentil, Cow pea, Bengal-gram and Fodder legumes.

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AZOTOBACTER - It is non symbiotic nitrogen fixing bacteria recommended for non
leguminous crops like Paddy, Wheat, Millets, Cotton, Tomato, Cabbage, Mustard, Safflower and Sunflower. The AZOTOBACTER performs well if the soil organic matter content is high.

ACETOBACTER - It is a symbiotic bacteria capable of fixing atmospheric nitrogen by living
within the sugar plant. They are found in all parts of plant body. It is suitable for sugarcane cultivation

AZOSPIRILLIUM - It is an associative micro Europhilic nitrogen fixer is commonly found in
association with the roots of cereals and forage grasses. The beneficiary crop includes Sugarcane, Vegetables, and Maize, Pearl millet, Rice, Wheat, Fodders and Oil seeds.

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QUALITY POLICY ISO 9001-2000
IFFCO Aonla Unit is committed to achieve satisfaction of its co-operative society, farming community and customer by manufacturing and supplying specified quality product, by pursuing:  Improvement of enhancing / maintaining productivity and growth.  Creating safe and healthy working condition and eco-friendly environment.  Co-operation and team sprite.  Development of Human Resources.  Continual improvement of effectiveness of its quality management system.

ENVIRONMENT POLICY
Aonla Unit is committed for continual improvement and protection of environment by setting and renewing its objects and targets through environmental management system focusing at:  Compliance of legislation related to stack emissions, efficient discharge, and ambient air and water quality.  Conservation of water resources.  Emergency preparedness for safety of plant and concerned personnel.  Effluent and waste minimization.  Development of all round awareness and competence on environmental issues.

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INTRODUCTION
Any operating organization should have its own structure in order to operate efficiently. For an organization, the organizational structure is a hierarchy of people and its functions. The organizational structure of an organization tells you the character of an organization and the values it believes in. Therefore, when you do business with an organization or getting into a new job in an organization, it is always a great idea to get to know and understand their organizational structure. Depending on the organizational values and the nature of the business, organizations tend to adopt one of the following structures for management purposes. Although the organization follows a particular structure, there can be departments and teams following some other organizational structure in exceptional cases. Sometimes, some organizations may follow a combination of the following organizational structures as well.

BUREAUCRATIC STRUCTURES
Bureaucratic structures maintain strict hierarchies when it comes to people management. There are three types of bureaucratic structures:

FUNCTIONAL STRUCTURE
The organization is divided into segments based on the functions when managing. This allows the organization to enhance the efficiencies of these functional groups.

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DIVISIONAL STRUCTURE
These types of organizations divide the functional areas of the organization to divisions. Each division is equipped with its own resources in order to function independently. There can be many bases to define divisions. Divisions can be defined based on the geographical basis, products / services basis, or any other measurement. MATRIX STRUCTURE When it comes to matrix structure, the organization places the employees based on the function and the product. The matrix structure gives the best of the both worlds of functional and divisional structures. In this type of an organization, the company uses teams to complete tasks. The teams are formed based on the functions. Every organization needs a structure in order to operate systematically. The organizational structures can be used by any organization if the structure fits into the nature and the maturity of the organization. .

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HIERARCHY OF IFFCO

CHAIRMANAN

BOARD OF DIRECTORS

MANAGING DIRECTOR

FINANCE DIRECTOR

MARKETING DIRECTOR

EXECUTIVE DIRECTOR (PROJECT)

EXECUTIVE DIRECTOR (GENERAL MANAGER)

TRANSPORT ADVISOR

0

GENERAL MANAGER (KALOL)

GENERAL MANAGER (KANDLA)

GENERAL MANAGER (AONLA)

GENERAL MANAGER (PHULPUR)

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ORGANISATION STRUTURE OF IFFCO

The organization structure of IFFCO is such as to provide a high degree of collaboration among the managerial personal. This help in attaining staff effectiveness. The structures consist of both line & staff managers but there is clear demarcation in their authorities & responsibility. Through the structure provides unlimited power to the manager yet most of the manager believes in benevolent leadership. This is the main reason behind the new record made by IFFCO. The Head Office of IFFCO is situated at New Delhi. It has cooperative staff that plays a link pin role between cooperating units of Kalol, Kandla, Phulpur & Aonla units. There are five zones. Each zone has its own headquarter of each zone is as follows; Zone North zone East zone West zone North Central zone South zone Headquarter Chandigarh Kolkata Bhopal Lucknow Bangalore

Each headquarter has certain no. of neighboring states under it & the functioning of those states is controlled by the particular headquarter; each state has a State Office under each zone. Under each state office there is Area Office & under each Area office there are Service sectors.

The organization Structure of IFFCO consists of Board of Director. The government of India nominates two member of the board. The member of the members. A chairman is the cooperatives societies nominates rest of

functional Head of his organization since he has an elected

member. There is also a vice chairman elected by the member of the Board of director. Once of the members of Board of directors is the Managing Director. The MD is the Executive Head since he is an appointed member. The MD is responsible for carrying out all the function of the organization.

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The MD controls the function of the following;      Director Marketing Director Finance Executive Director (Personal & Administration) Executive Director (Technical) Executive Director (Technical service Deptt. / Planning & Development)

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FACTORY CHART OF IFFCO AONLA

Sr. General Manager

General Manager

JGM Production

JGM maintenance

JGM Technical

JGM Utility

JGM commodity

JGM F&A

Amonia

Mechanical

Process

Power Plant

Purchase

F&A

Urea

Electrical

Design & Drawing Offsite

Store

NPK & DAP

Instrumental

Library &Document

Product Handling

Civil

Laboratory

Training & development

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IFFCO consists of both line and staff manager but there is clear is demarcation among their authorities and responsibility. The theme of Organization Effectiveness is to have a high degree of collaboration among the managerial personal through the structure provides unlimited. Power to the manager yet of the manager believe in benevolent it leadership. This is the main reason behind the new records made by this unit.

GENERAL MANAGER OF OFFCO:G e n e r a l M a n a g e r h a s t h e h i g h e s t authority of IFFCO Aonla whose decision is final and followed by whole organization.

FINANCE AND ACCOUNT DEPARTMENT:The department co-operative with all division and complies the organization financial result such a profit and loss account and balance sheet, budgeting etc.

PERSONAL & ADMINISTRATION DEPARTMENT:It isresponsible for formulation policies procedures in personal andadministration as whole under this all personal function, welfare, t i m e - office, security and hospital related functioning are dealt.

MAINTENACE DEPARTMENT:Under this department the maintenance of all of mechanical, electrical maintenance, telephone and mechanical services are included.

PRODUCTION DEPARTMENT:Here under the production and all other related of production of Ammonia and Urea are considered.

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UTILIY DEPARTMENT:The department of Utilities performs the function of stream, power and in offsite purification of water of recycling.

TACHNICAL DEPARTMENT:Here under technical services and engineering service of fire and safety training research development, energy conversion scheme, safety and population appliances take place and programs conducted.

MATARIAL DEPARTMENT:All materials, purchasing included under this department and are managed according to the need of the hour.

CIVIL ENGINEERING:Planning documentation civil factory, civil engineering working and all changes regarding these to are controlled and managed by this department.

SYSTEM DEPARTMENT:Those is planned to considerable consolidation and integrates the data base and further provide service beyond the operation level requirements in application for material management, production reporting, financial management, personal management etc.

TRANSPORT DEPARTMENT:It looks after the facility t o employee and their families for organization on construct for the organization

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MARKETING & DISTRIBUTION
A strong marketing team and a sound distribution network make the bottom line secure. Backed by this belief, IFFCO has gone all out to extend its reach, resulting in the highest-ever sales of fertilizer material this year. With the completion of Kalol Expansion Project, IFFCO is all set to realize the objective of producing 100 lake tone of fertilizers, thereby attaining the distinction of world leader in fertilizer production. Every fourth bag o f fertilizer produced and every third bag of fertilizer sold in the country belongs to IFFCO. Around 40,000 cooperative societies and 158 Farmers Service Centers spread cross 29 states and union territories in India sure that IFFCO‟s products- NPK/ NP/DAP/UREA- are easily available to farmers. These impressive figures have been made possible largely because of the fact that IFFCO distributes its products through cooperative channels. Though the cooperative structure may differ from state to state, the goal is to reach out to each district, taluka and village and hence sell more. This year, IFFCO has dispatched around 86 lake tone of fertilizer material from its plants and ports by rail and road. With the aim of delivering to the doorstep of the farmer in all parts of the country, the organization hired storage space at more than 1,700 locations. IFFCO‟s Farmers Service Centers not only supply material less than one roof, they are used as contact points for providing technical know -how to farmers. These Centers also organize promotional programmed such as soil test campaigns and farmers‟ meetings.. During 2009-10, IFFCO has notched up a record sale of 93.24 lake tone of fertilizer material comprising of 54.29 lake tone of urea and 38.95 lake tone of NPK/ DAP /NP witnessing a make

growth of 8.3% as against 86.10 lake tones in the previous year. Best ever marketing productivity also sprang to 6158 tone/head.

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MARKETING CHART FERTILIZER MANUFACTURER

INSTITUTIONAL AGENCIES

PRIVATE TRADE

COMPANY OWNED OUTLETS

DISTRIC/TALUKA LEVEL COOPERATIVE SOCIETIES

STATE AGRO INDUSTRIES CORPORATION/ COMMODITY FED

MARKETERS/ WHOLESALER

PRIMARY AGRICULTURE COOP, SOCIETY (PACS)

OWN RETAIL OUTLETS

PRIVATE DEALER

PRIVATE RETAIL DEALERS

FARMERS

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DISTRIBUTION & WAREHOUSHING
Distribution of Urea and inter-state movement is under government controlled and is regulated under the Essential Commodities Act (ECA) 1956. Under ECA, supply plan for Urea is formulated by the government in consultation with the State Department Of Agriculture and Fertilizer industry. IFFCO urea is moved from factory to field warehouse by both road and rail. Movement through rail is resorted t o distant locations at the shortest time. Consumption on of urea a need basis to

is seasonal

thereby

rendering transportation, storage and distribution is very important.

Urea Distribution Channel Process:IFFCO PRODUCTION A R E A O F F IC E

SOCIETIES

WARE-H O U S I N

S U B A R E A O F F IC E

FARMERS  Fertilizer distribution Both by Rail (90%) and Road (10%).

300 Km. Distance by Road.

For warehousing following services are uses: Federations & Cooperative Godown.  Central Warehousing Corporation (CWC)  State Warehousing Corporation (SWC)

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FINANCE & ACCOUNTS
FINANCE & ACCOUNTS DEPARTMENT

BILL SECTION

FINANCIAL CONCURRENCE SECTION/ BUDEGE

BOOKS SECTION

PAYROLL & TAXATION SECTION

P&L SECTION

SUPPLY SECTION

NOTE SHEET PAYMENT

WORK ORDER SECTION

In spite of constraints in availability of raw materials, and inordinate delays in receipt of large subsidy amounts from Government of India, IFFCO has yet again delivered an impressive financial performance in all its major parameters, namely, Revenue Growth, Operating Margins and Resource Utilization testifying to robustness of its Corporate Strategy of creating multiple drivers of growth. This was possible due to higher production, sales volume and improvement in operating efficiencies. The Society achieved the highest ever. Sales turnover of Rs211.9 billion in 2010-11 . This represents an increase of 18 per cent over the previous year. It was brought out by higher volume of Sales of Fertilizer materials, which increased to 93.24 Lakh tone fertilizer during 2009-10 as against 86.10 lakh tone in the previous year. The performance is even more satisfying when viewed in the light of challenging business environment of fertilizer industry.

The various area covering under the preview of 3 subsections are as follows:

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BOOKS SECTION:This section basically deals with accounting function, maintenance and keeping of records. The various functions include: Books: Preparing and maintaining balance sheets. FICC (Fertilizer Industries Coordination committee) Costing & Pricing Cells Reporting

PAY ROLL SECTION:Aonla Unit undertakes processing of salary and other staff related payments of all employees through Human Resource Management System (HRMS). It is an i n t e g r a t e d p a c k a g e b a s e d o n O r a c l e D B M S . T h e S ys t e m i n t e g r a t e s P e r s o n n e l & Administration Department and Finance & Accounts Department.

Simultaneously, Financial Accounting System (FAS) which is also based on O r a c l e D B M S h a s b e e n l a u n c h e d i n F & A D E P A R T M E N T t h r o u g h w h i c h G e n e r a l Ledger Sub Ledger of Employees are maintained and Trial Balance and Financial Accounts are generated. There is also inter- relation of HRMS and FAS so that cash payment/receipt vouchers, Bank Payment Vouchers and Journal Vouchers generated in HRM are automatically posted online to Payroll Section of Finance & Accounts Department.

TAXATION SECTION:As per the status and operation of the society, it deals with the following Taxes Central Excise Duty.  Income tax.  Service Tax.  Sales Tax.

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HUMAN RESOURCE DEPARTMENT
No vision, however grand, can be fulfilled without the cooperation of its people. Recognizing this fact, IFFCO has made a sustained investment in its people, creating an environment that attracts the best talent. At IFFCO, we see teamwork at its best. Employees at all levels share a common dream, a dream that is understood in IFFCO‟s Vision 2015. Hence, enhancing skills is of great significance for the organization. Other initiatives to help the growth of its people included workshops on human values, leadership and work ethics. There were also many technical activities that led to development and skill up gradation. Employees were sponsored for participation I prestigious both in India and abroad. With the firm belief that Information and Communication Technology (ICT) helps the people and the organization to grow together, IFFCO has augmented its work flow applications. The Corporate Data Centre in New Delhi has been refurbished with the latest technology. A new VPN was created to provide round-the-clock connectivity in the plants, zonal office and head office. IFFCO has, over the years, successfully showcased its image in India and overseas. Its achievements and its contributions to the farming community are highlighted in

various exhibitions.

T h e H R D C e l l e n s u r e s a d e q u a t e s u p p l y p r o p e r quantity and quality as well as effective of human resources. The Human resources Management refers to the approach to the problem of selecting t r a i n i n g , m o t i v a t i n g a n d r e t a i n i n g , p e r s o n n e l i n a n y o r g a n i z a t i o n . A n organization will determine its man p o w e r n e e d s a n d t h e i r f i n d o u t t h e sources from the requirement will be met.

It carries out following activities: RECRUITMENT:For recruitment and selecting both internal as well as external sources are used.

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Internal Recruitment:Promotion of workers from the lower to upper rank according to the eligibility criteria.

External Sources:In IFFCO the External Recruitment is restored it is
happen only when

internal sources dry up. Here is no agency and the vacancies are not field in employment

exchange not by advertisement in news paper is also given in –

External Sources 40%

Internal Sources 60%  SELECTION:As regardless selection process the company has
laid the criteria for screening

the application are screen out and the application are called for psychological and personality.

Selection is done by a selection committee consisting of head of concern department and external specialist and their decision.  TRAINING:Most of the employees are then required to undergo
extensive off the job

and on the job training in various disciplines.

 POSTING & TRANSPER:Regardless of the post to which the employee is initially appointed and the station where he is posted IFFCO reserves the right to transfer from one post to another post and from one station t o a n o t h e r a n y w h e r e i n I N D I A i n c l u d i n g t r a n s f e r i n n e w Establishment that might be started in future.

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 PROMOTION:IFFCO has fixed and written promotion policy. The policy is based seniority and merit.
Usually IFFCO give the promotion to the employee according their qualification

and Grade wise.

Generally merit is given weight age.  TERMINATION:An employee service may be terminated at any time on one month (but not less than 30 days) notice on either site or by the employee.

INDUSTRIAL RELATION:relationship with other industry and it

IFFCO has setup healthy

encourages this type of relationship industry feel the proud with dealing IFFCO. The main function of IR section is as follows:o Compliance of Statutory provision. o Dealing with union. o Participated Dispute.  WELFARE:IFFCO deals with various welfare activities (like sport and cultural programs for employee‟s canteens etc.)  TIME OFFICE:IFFCO keep track of employee‟s attendance. Employees are electronic cards which are to be electronically punched at the time entering and leaving the office.  PROVIDENT FUND:IFFCO has its own board of employee‟s providence fund as per EFP and Mice. Provision Act 1952 and PF benefits shall be as IFFCO EPS rules.

RETIREMENT:-

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I n t h e I F F C O t h e r e t i r e m e n t a n d s u p e r annulations shall be at the age of 58 years.

INVETORY MANAGEMENT
Inventories encompass finished goods produced or work in process being produced by the

enterprise and include materials, maintenance supplies, consumables, loose tools awaiting use in the production process.

Types of inventory:
 Inventory of raw materials  Inventory of stores and spare parts  Inventory of work-in-progress  Inventory of finished goods

PRODUCTION
The largest producer of fertilizers in the country, IFFCO has five state-of-the-art plants that ensure its special position. These are considered to be among the best professionally managed fertilizer plants in the world.

IFFCO had set up the KALOL plant for manufacture of Nitrogenous Fertilizer and KANDLA plant for manufacture of Phosphoric fertilizer. These plants commenced commercial production in the year 1974-75. Ammonia - urea complex was setup at Phulpur in the state of Uttar Pradesh in 1981.

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The ammonia - urea unit at Aonla was commissioned in 1988. As part of the new vision and in order to augment its complex fertilizer manufacturing capacity, IFFCO

acquired DAP/NPK/NP plant in Paradeep, Orissa in September 2005. This was a historic moment, for it was the first private sector unit to be acquired by any Indian cooperative.

The Paradeep unit was expected to achieve an optimal production load during 2008-09. During 2007-08, IFFCO‟s plants rolled out 68.47 lake tonne of fertilizer material comprising 39.63 lake tone of urea and 28.84 lake tonne of NPK/ DAP / NP which

b e a r s a m p l e t e s t i m o n y t o i t s s u p e r l a t i v e p e r f o r m a n c e . IFFCO market share in „N‟ production is 20 percent and 25 percent in P2O5 Produced in the country. IFFCO has initiated energy saving schemes in all its five ammonia plants at a cost of Rs. 410 crore.

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CORPORATE SOCIAL RESPONSIBILITIES
In line with its vision and mission statement, IFFCO has undertaken several social activities in the areas of education, community development, environment protection and horticu lture, health care/medical facilities etc, all with the intent o f reaching out to those in need and improving the quality of their lives. Adopting a villages of paramount importance to IFFCO. The programmed started with an objective to bring about overall development in the living standards of rural community through integrated rural development with particular

emphasis on agriculture development, creation of drinking water facilities, medical and veterinar y check up.

I F F C O h a s a d o p t e d 4 3 9 villages, thus empowering many lives. Another scheme that benefits the farmers is Sank at Haran Bima Yojana, launched by IFFCO‟s subsidiary, IFFCOTokio General Insurance Company Limited (ITGI). Here, farmers are provided insurance against accidents with the purchase of a 50 kilogram bag of IFFCO fertilizer. This reaches out to member cooperative societies. The policy has helped over 7,000 people since its inception in September 2001.

ITGI also offers customized policies for farmers such as Barish Bima Yojana, Mausam Bima Yojana and Janta Bima Yojana. IFFCO has initiated several promotional projects to provide greater opportunities to the farmer by organizing field days, farmers meetings, sales point personnel training, crop seminars, special agriculture campaigns to effect transfer of

m o d e r n f a r m i n g t r e n d s . Besides, kits containing seeds, fertilizers, bio-fertilizers and agrochemicals along with Booklets/ literature were distributed to farmers. The aim: enhancing crop productivity and thus improving lives. In keeping with its intent of empowering the weaker sections of society, including women, IFFCO presents monthly scholarships to deserving students and also organize straining programmed for women. The organization has instituted 17 IFFCO Chairs at agricultural universities and cooperatives. The emphasis is on current topics in

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agriculture. IFFCO uses its 12 storage-cum-community Centers for helping people come together and share their experiences. The environment is a major concern with IFFCO. Its units and townships comprise beautiful landscapes, surrounded by trees. IFFCO is also committed to improving the safety, health and environment of its manufacturing units, in line with international norms. The Kalol, Phulpur, Aonla and Kandla units have been awarded the ISO- 14001 certificate for Environment Management System. Further, the Kalol, Phulpur and Aonla plants have received the ISO-9001 certification for Quality Management. IFFCO has contributed Rs 10 crore to set up the IFFCO Kisan Sewa Trust. This Trust assists farmers in getting medical treatment. Employees also contribute regularly to it. The Kisan Sewa Trust organizes cancer detection and eye camps and arranges for blood through the Red Cross Society. The IFFCO Foundation has been promoted as the think tank of the organization. Its objective is to focus on strengthening village level cooperatives in harmony with the law and culture of the country. Indian Farm Forestry Development Cooperative Limited (IFFDC), promoted by IFFCO, was given a certificate of appreciation by the Tata Energy Research Institute for its efforts towards good corporate citizenship. The Cooperative Rural Development Trust provides practical training to farmers and has organized 229 programmed in 2008, benefiting 22,221 farmers.

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IFFCO OPERATING PLANTS
IFFCO‟s four modern fertilizer plants in operation Kandla & Kalol in Gujrat, Phulpur & Aonla in Uttar Pradesh have a total production capacity of about 27 lack tones of bulk fertilizer annually the kalol plants has an annual production capacity of three lake tones of ammonia and 3.99 lake tone of urea. The Kandla plant has annual production capacity of 3.09 lake tones of P2O5. Aonla project of IFFCO is one of the six natural gas based fertilizer plants set up in the country on the H.J.B. pipe line which runs through four statuses. This project has been designed to produce 7.26 lake tone of Urea per year with plant capacity of 1350 TPD Ammonia and 2200 TPD of UREA. The site is 28 km south west of Bareilly on Bareilly Aonla Road . The total land acquired by IFFCO Aonla unit is 1273 acres for factory and township.

( AONLA TOWNSHIP GATE)

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SWOT analysis is a technique through which managers create a quit overview of a company‟s strategic situation. It is based on the assumption that an effective strategy derives from a sound fit between firms internal resources (strength & weakness) and its external situation (opportunities & threats). A good fit maximizes a firm‟s strength and opportunities and minimizes its weakness and threats.

STRENGTH:-

1. Fertilizer is the basic raw material for agriculture production NO GOVT. can dare to make policies which are not conducive to the farmers. 2. Demand of fertilizer is more in the country than the production capacity therefore whatever is produced will be sold. 3. Government ensures the availability of raw material (NG/NAPHTHA) at reasonable price as it has at subsidy of fertilizer is subsidizing product. 4. IFFCO is a co-operative organization and selling its product through co-operative channel. There are only to organization IFFCO & KRIBCO. It means not much competition in the channel. 5. All plants are of latest technology of art and are in healthy condition.

WEAKNESS:-

1. As per by law of the company it can fallows the co-operative channel only for sale of its product. In case demand fall short in the channel company end up with higher stock inventory. 2. Price of the product cannot be raised and government pay the subsidies as per its calculation of fertilizers cost.

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OPPORTUNITY:-

1. IFFCO can cut on cost by reducing energy consumption for per MT of UREA, thereby enhancing its profitability. IFFCO has taken up energy saving product in all its five AMMONIA plants at the cost of Rs 410 corer. 2. IFFCO can also reduce its fixed cost per MT of UREA by enhancing its production capacity & thereby increase in production and profitability. IFFCO has taken up capacity enhancement project for all its Ammonia & Urea plants. 3. IFFC O also taken up power project at Chhattisgarh. 4. IFFCO has also contributed 25% Equity in OMAN India fertilizers company (OMIFCO). 5. IFFCO is also perusing a multiproduct KISSAN SEZ at NELLORE in A.P. 6. IFFCO has also entered into a long term of take and supply agreement with international holdings of AUSTRALIA for supplying rock phosphate to insure raw material supply NPK/DAP fertilizers plants.

THREATS:-

1. NG supply in the country is not sufficient to meet present country requirement. However NG in liquid form is imported from various gulf countries and rigidified at petro net in Gujrat to meet demand of fertilizers units. 2. If supplies of NG suffer due to an region. It will be reflected in production of IFFCO.

3. NAPHTHA is also imported Gulf countries. Its rates are not stable in the international market & it availability is also affected by its international demand. 4. Rock phosphate is also imported to produce NPK/DAP at IFFCO‟s Kandla & Paradeep unit. Supply of Rock phosphate is also a threat to the production NPK/DAP. It rate are not stable in the international market.

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ANALYSIS:With the finding of NG at KG basin of RIL most of requirement of fertilizers units will be meet for the countries on resources and dependability on the import will be reduce thereby ensuring the raw material supply to the fertilizer unit at reasonable price. Further IFFCO has made long term agreement for procurement of Rock phosphate with various countries to overcome. It major threats of raw materials for the production of NPK/DAP therefore it can be said that IFFCO is on sound footing to protect it stability and enhance it profitability by cutting on cost and increasing production in years to come.

STRATEGIES:1. IFFCO is doing its best to conserve energy & keeps it consumption at lowest label. 2. Enhance its production by enhancing the capacity of the existing plants & constructing new plant. 3. Reducing cost by low energy consumption & increasing production to enhance it profitability. 4. Ensure supply of raw material by entering into agreement nationally or international with the suppliers. 5. IFFCO also care for the community. This commitment is reflected in many ways on dayto-day bases. IFFCO believes in the welfare of society. It has embarked on much corporate social responsibility (CSR) project. These projects cover education community development environment & health.

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FINDINGS
 Majority of the farmers are using IFFCO product and rest are using other including Tata, Narmada & others.  

60% of the farmers are waiting for a particular brand of fertilizers

Most of the farmers are selecting the fertilizers on brand basis and second major criteria to select the fertilizers are availability.

  

90% of the farmers desired for the plastic bag and only 10%for the jute bag 70% of farmer‟s desire 50kg pack & rest 30% prefer 25kg pack.

In a village about 60% farmers meetings,15% Field Day,10% Socioeconomic &15% Other Promotional Programmed were organized by IFFCO.

 

I found that farmers are satisfied with the IFFCO fertilizers even in un adopted villages. There are a number of reasons to prefer the plastic bag: o Moisture control. o Reusable and strong.

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SUGGESTION
1. T h e o r g a n i z a t i o n s h o u l d e s t a b l i s h a n a t i o n a l l e v e l c o m m i t t e e w h i c h c a n f a m i l i a r i z e t h e government with the ground realities in the Fertilizer sector and also advise the government i n f o r m a t i o n o f P o l i c i e s r e g a r d i n g d i s t r i b u t i o n o f f e r t i l i z e r s , i m p o r t o f f e r t i l i z e r s a n d subsidies. 2. T h e r e s h o u l d a n E n t r e p r e n e u r s h i p D e v e l o p m e n t C e l l a t a l l p l a n t s w h i c h s h o u l d e n c o u r a g e innovation amongst employees. This would infuse some of the positives of an organic design in to the organizational environment. This cell should lay new business ideas and innovations in front of the top levels of management. 3. Unnecessary sub-divisions in departments should be eliminated to promote efficiency. In the Personnel & Administration department one sub-division can handle both Legal Matters and Contract Laws. 4. The Inspections & Plant Health Department can be dissolved. The

Maintenance Department can have an additional sub-division for Inspections & Plant Health. This will streamline the organizational structure and also increase the efficiency of overall maintenance. 5. T h e C o - o p e r a t i o n s h o u l d n o t b e r i g i d i n i t s a p p r o a c h a n d s h o u l d b e r e a d y t o f a c e s u d d e n variations in business environments. Managers should not limit themselves to following regulations blindly but should proactively analyze situations.

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CONCLUSION
The organizational study of the IFFCO Aonla Plant and also the analyses of IFFCO in general demonstrate that a bureaucratic organizational structure is not always inefficient. In fact if properly applied it has many positive aspects especially in large and complex organizations. For example some types of rules and regulations are required to avoid unpredictability and arbitrary action. Some sort of hierarchal arrangement is necessary to manage the large number of people in an organization. Therefore the key is to utilize the characters of a bureaucratic structure but not to over emphasize on them as those results in rigidity in the structure. In a bureaucratic organizational structure an efficient business environment may be created by having the right mix of mechanistic and organic models. IFFCO's experience has also shown that cooperative sector can succeed even in high investment high technology areas like fertilizer production. The large scale extension activities and cooperative development programmed have strengthened the bond between IFFCO and the Indian farmers who are the consumers as well as members of the village level cooperative societies. The confidence generated by this success has paved way for a vigorous growth programmed to expand its existing u n i t s a s w e l l a s e s t a b l i s h n e w u n i t s . T h i s w i l l e n a b l e IF F C O t o e m e r g e a s a g l o b a l l e a d e r i n production and marketing of chemical fertilizers located in a single country.

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Website

www.iffco.nic.in  Search Engine

Google
 Books

IFFCO Company‟s Annual Report 2010-11

 

Kotler Philip „MARKETING MANAGEMENT‟ 13TH EDITION. “MARKETING DEPARTMENT” 615-617. G REEN H ALL
BERG

& B ARON : “B EHAVIOR I N O RGANIZATION ”, 2003, P RENTICE – PVT. LTD.

OF I NDIA

 Dr. D.KALIYA CHIEF MANAGER (TRAINING & DEVELOPMENT) IFFCO, AONLA.  P.MATHUR MANAGER (TRAINING & DEVELOPMENT) IFFCO AONLA.

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