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MBA PROGRAMME

Nagarjuna Fertilizers Pvt.Ltd.

INTRODUCTION
Marketing is a societal. It is a process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. Marketing has often been described as the art of selling products, but people are surprised when they hear that the most important part of marketing is not selling. Selling is only the tip of the marketing ice berg. According to The American Marketing Association, marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. The essence of marketing is a state of mind. In making marketing decisions, the manager adopts the view point of the customer. Decisions therefore are driven by what the customer needs and wants. As such, a key focus of its analysis is human behavior, which is mutable, unpredictable and reactive. Marketing is also heavily context dependent. More so than most other fields of inquiry, the nature and scope of marketing can be substantially affected when one characteristics or new technologies changes. Peter Drucker stated that Every Business can be defined as serving either customers or markets or end users. The key elements of all marketing are outward. Looking and firmly center on the customer. This orientation requires marketers to look at their organization, activities and processors through their customer eyes. Communication with customers, measurement of their satisfaction levels and designing programs to improve customer satisfaction allow marketing the greatest influence within the firm. The word positioning dates back to 1972, and was coined by AL Ries and Jack Trout. According to them, positioning is not what you do to a product; rather it is what you dot to the mind of the customer. This concept soon caught the attention of marketers and advertisers who began developing positioning strategies for their products and services.

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Product position is the image that a product produces in the minds of customers in comparison to the competitors products and also in comparison to other products of the same company. Marketing of the products and services in olden days was very easy because there were few products and service available in the market. Therefore marketers did not find the necessity to differentiate their product since customers were able to distinguish easily between the products and service available in the market. As competition began to grow rapidly, it became imperative for marketers to differentiate their products and services

MARKETING The essence of marketing is a state of mind. In making marketing decisions, the manager adopts the view point of the customer. Decisions therefore are driven by what the customer needs and wants. As such, a key focus of its analysis is human behavior, which is mutable, unpredictable and reactive. Marketing is also heavily context dependent. More so than most other fields of inquiry, the nature and scope of marketing can be substantially affected when one characteristics or new technologies changes. Peter Drucker stated that Every Business can be defined as serving either customers or markets or end users. The key elements of all marketing are outward looking and firmly center on the customer. This orientation requires marketers to look at their organization, activities and processors through their customer eyes. Communication with customers, measurement of their satisfaction levels and designing programs to improve customer satisfaction allow marketing the greatest influence within the firm. A practical metaphor for marketing is a dialogue. The marketer must communicate specific exchange advantages, even though communication often takes place by such indirect means has advertising or coalition building. More importantly, though the marketer must spend a great deal of effort and time listening to the customer through marketing research. The marketer who listens to customers and understands their view points in the most effective manager.

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Nagarjuna Fertilizers Pvt.Ltd.

SCOPE OF MARKETING:
Marketing is typically seen as the task of creating, promoting and delivering goods and services to consumers and businesses. Marketers are skilled in stimulating demand for a company product, but this is too limited a view of the tasks marketers performs. Just as production and logistics professionals are responsible for supply management, marketers are responsible for demand management. Marketing managers seek to influence the level, time and composition of demand to meet the organizations objectives. Marketing people are involved in marketing are ten types of entities. Goods, services, experiences, events, persons, places, properties, organizations, information and ideas.

GOODS: Physical goods constitute the bulk of most countries production and marketing effect. Not only do companies market their goods, but thanks to the internet, even individuals can market goods.

EBay: Today eBay is the worlds largest person to person online trading community. It offers efficient one to one trading in an auction format on the web. Individuals can use eBay to sell or buy items in thousands of categories; paintings, stamps, coins, toys, dolls.

SERVICES: As economists advance, a growing proportion of their activities is focused on the production of services. Many market offerings consistent of a variable mix of goods and services. At the pure services end would be a psychiatrist listening to a patient the entire quartet performing Mozart, at another level would be the telephone call that is supported by a huge investment in a plant and equipment and at a more tangible level would be a fast-food establishment where the customer consumes both a product and a service.

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By orchestrating several services and goods, a firm can create stage and market experiences.

EVENTS: Marketers promote time-based events, such as the Olympics, company anniversaries, major trade shows, sports events and artistic performances. There is a whole profession of meeting planners who work out the details of an event and make sure it comes off perfectly.

PERSONS: Celebrity marketing is major business. Years ago, someone seeking f would hire a press agent to plan stories in newspapers and magazines. Today every major film star has an agent, a personal manager and ties to a public relations agency.

PLACES: Places-cities, states, regions and whole nations compete actively to attract tourists, factories, companies head quarters and new residents.

PROPERTIES: Properties are intangible rights of ownership of either real property or financial property. Properties are bought and sold, and this requires marketing.

ORGANIZATIONS: Organizations actively work to build a strong favorable image in the minds of their target publics. Companies spend money on corporate identity ads. Universities, museums and performing arts organizations all use marketing to boost their public images and to compete for audience and funds.

INFORMATION: Information can be produced and marketed as a product. We buy software and CDs and we visit the internet for information. The production, packaging and distribution of information are one of our societys major industries.

MBA PROGRAMME IDEAS:

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Every market offering includes a basic idea. Products and services are platforms for delivering some idea or benefit. Social marketers are busy in promoting such ideas as say no to drugs, save the rain forest, exercise daily.

MARKETING MIX Marketing mix is the set of marketing tools that the firm users to pursue its marketing objectives in the target market. -PHILIP KOTLER There are literally dozens of marketing mix tools. But the well known American professor of marketing JEROME Mc. CARTHY described the marketing mix in terms of the four Ps. They are Product Price Place Promotion

Note that the 4 Ps represent the sellers view of the marketing tools available for interviewing buyers a customer benefit ROBET LAUTHERBORN asserted that the sellers 4 Ps correspond the customers 4 Cs. 4 Ps Product Price Place Promotion 4 Cs Customers needs & wants Cost to the customer Convenience Communication

PRODUCT A product is anything that can be offered to a market for attention, acquisition use or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organizations and ideas. PHILIP KOTLER

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A product is a complex of tangible attributes including packing, color, price, manufactures prestige and manufactures and retailers services which the buyer may expect as offering satisfaction of wants or needs. WILLIAM J. STANTON

PRODUCT POSITIONING The word positioning dates back to 1972, and was coined by AL Ries and Jack Trout. According to them, positioning is not what you do to a product; rather it is what you dot to the mind of the customer. This concept soon caught the attention of marketers and advertisers who began developing positioning strategies for their products and services. Product position is the image that a product produces in the minds of customers in comparison to the competitors products and also in comparison to other products of the same company. Marketing of the products and services in olden days was very easy because there were few products and service available in the market. There fore marketers did not find the necessity to differentiate their product since customers were able to distinguish easily between the products and service available in the market. As competition began to grow rapidly, it became imperative for marketers to differentiate their products and services. Marketers must analyze the following aspects before opting foe product differentiation. Does the difference provide a relatively higher value to a sufficient number of buyers? Is it profitable for the company to introduce a new product based on differentiation? Is it delivered in a distinct way and is it superior to other ways of obtaining the same benefits. It is vulnerable to imitation by the competitor/s? Can the buyer afford to pay for the difference?

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According to Rouser Reeves, a company should develop a unique selling proposition (USP) for each of its brands. A USP can be any special attribute about a brand e.g. its quality, service, price, value, safety provisions, customization, use friendliness, technology, etc. marketers often try to promote the product on the basis of its USP. But positioning the product on the basis of a single attribute or USP is not always beneficial. Marketers use two or more attributes of the product to position it better. This type of positioning is specifically beneficial when two or more brands claim to be the best on the same attribute(s).

MBA PROGRAMME

Nagarjuna Fertilizers Pvt.Ltd. CONCEPTUAL FRAME WORK

Delivering a service to customers involves decisions about where, when, and how. The rapid growth of the internet and now also broadband mobile communication means that service marketing strategy must address issues of place, scheduling, and electronic access as to the more traditional notion of physical location.

DISTRIBUTION IN A SERVICE CONTEXT: Many people think of moving boxes to retailers and other channels for sale to end users. In a service context, we often have nothing to move, as experience are not being shipped and stored, and information transitions are increasingly conducted via electronic, not physical, channels. How, then, does distribution work in a services context. In a typical sales cycle, distribution embraces three interrelated elements. 1. Information and promotion flow: This element refers to the distribution and promotion materials relating to the service offer. The objective is to the customer interested in buying the service. 2. Negotiation flow: This element focuses on reaching an agreement on the service features and configuration and the terms of the offer so that a purchase contract can be closed. The objective is to sell the right to use a service. 3. Product flow: Many services, especially those involving people or possession processing, require physical facilities for delivery. Here, distribution strategy requires development of network of local sites .For information-processing services , such as weather forecasts, internet banking transactions, distance education by satellite, broadcast news, and entertainment, the product flow can be undertaken via electronic channels, using one or more centralized sites.

MEANING AND SIGNIFICANCE OF PERCETION: Perception may define as the process by which an individual selects, organizes and interprets stimuli in to a meaningful and coherent picture of the environment in which he lives. It is a complex cognitive process and differs from one individual. The perception of two individuals may differ even if they are exposed to the same stimuli, under the same conditions. Sometimes, people respond to situations on the basis of their perception about reality rather than the reality itself. Hence, it is important to

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recognize the difference in the perceptions of individuals to their behavior at the workplace. SUB-PROCSS OF PERCEPTION: The process of the perception includes several sub-processes, which gives rise to complexity. The sub-process consists of stimulus or situation, registration, feedback, behavior and consequence. The first sub-process, stimulus or situation, refers to an individuals conformation with an internal or external stimulus. An individual may experience an immediate sensual stimulation or the conformation may take place with the entire physical and socio-cultural environment. BUYING ROLES: For many products the buyer is the only one involved in making a decision. But some products involve a decision-making unit consisting of more than one person. Influencer: A person whose view or advice influences the decision. Decider: A person who decides on say component of buying decision. Weather to buy, what to buy, how to buy or where to buy. Buyer: The person who make the actual purchase. User: The person who consume or use the product or service. A company needs to identify these roles because they have implications for designing the products determining message of allocating the promotional budget knowing the main participants of the marketing program. Five roles that people might play in buying decision are:

TYPES OF BUYING BEHAVIOR: There are 4 types of behaviors namely, 1. Complex buying behavior 2. Dissonance-reducing buyer behavior 3. Habitual buying behavior 4. Variety seeking buying behavior

MBA PROGRAMME Complex Buying Behavior

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Consumer to through complex behavior when they are highly involved to a purchase and aware of significant differences among brands consumers are highly involved when the product is expensive, brought infrequently, risky and highly selfexpensive. Typically the consumer does not known much about the product category and has much to learn. The buyer will pass through a learning process characterized by first developing beliefs about the product, then attitudes and then making thought full purchase choice.

Dissonance-Reducing Buyer Behavior: Sometimes the consumer is highly involved in a purchase but sees little

difference in the brands. The high involvement is again based as the fact purchase is expensive, in frequent and risky. In this case buyer will shape around to learn what available but will buy fairly, quickly because brand difference are not pronounced. The buyer may respond primarily to good price or to purchase convenience. After the purchase, the consumer might experience dissonance that steins from nothing certain disquieting features of the product or hearing favorable things about other brands. The consumer will be alert to information that might justify his or her decision.

Habitual Buying Behavior: Many products are brought under conditions of flow consumer involvement and the absence of significant brand difference. For example, salt consumer have little involvement in this product category, they less brand loyalty. Generally consumers have low involvement with low cost frequency purchased products. Consumer do not search extensively for information about the brands, evaluate their acteristics and make a weighted decision on which brand to buy instead, they are positive recipients of information as watch television or see print ads.

Variety Seeking Buying Behavior: Sometimes buying situations are characterized by low consumer involvement but significant brand differences. Here consumer is often observed to do a lot of brands switching.

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Stages of Buying Process

The buying process is composed of a number of stages and is influenced by an individual psychological framework composed of the individual personality, motivations and perceptions and attitudes. The various stages of buying process are described here.

Need Recognition Need recognition means awareness of a want, a desire or a consumption problem without whose satisfaction the consumer normally builds up tension. For example, a busy house wife may feel the need for washing-aid on account of her desire for find more time to spend with her children. The recognition of the need for washing-aid might active her to search for some aid may be manual or mechanical, say a washer man or washing machine. The market at this stage needs to determine the circumstances that usually trigger consumer problem recognition. The market should research consumer to find out what kind of needs or problems arose. What brought them about and. How they led to his particular product Product Awareness In this stage, the consumer is exposed to the existence of a product that may satisfy a need. This awareness may be an account of the search carried by the consumer himself here by or because of a firm communications through advertisement or salesman ship or through social environment. This awareness may be moral because there no immediate subsequently converted in to interest.

Interest Interest may be viewed as a stage of mind that exits when a consumer perceives. A need and or aware of alternative products capable of satisfying that need. Consumer interest is indicated in the consumers willingness to seek further information about a product. At this stage the consumer is actively involved is the buying process and pays attention to the product.

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Nagarjuna Fertilizers Pvt.Ltd.

Evaluation and Invention Once interest in a product is aroused, a consumer enters the subsequent stage of evolution and invention. The evaluation stage represents the stage of mental trail of the product during stages, the consumer assigns relative value-weights to different products/brands on the basis of accumulated stock of product information and draws conclusions about their relative satisfaction giving potential. After this evaluation, the consumer develops the intention to either purchase or reject the product, The final purchase will, however depends on the strength of positive intention, that is the intention to buy.

Output Output is the end result of the inputs of consumer behavior. It energizes after the consumer duly process these inputs. Output is composed of purchases and postpurchase behavior.

Purchase Purchase is consumer commitment for a product. It is the terminal stage in the buying decision process that completes a transaction. It occurs either as a trail and adoption. If the consumer is buying something for the first time then the behavioral view point it may be regarded as a trail. The trail enables him to accumulate experience about the product purchase. If this experience may occur, otherwise not for example, when a new brand of bathing soap is introduced in the market, the consumer may buy in for the first time as a trail. However, repeat purchase will occur only when he is satisfied with its performance. But the possibility of a trail purchase is not available in all cases. In the case of consumer durables such as scooters, refrigerators and the like, a trail if not possible, because once a product is purchased it has to be adopted and repeatedly used.

Post Purchase Behavior Post-purchase behavior refers to the behavior of a consumer after commitment to a product has been made. It originates out of consumer experience regarding the use of the product and is indicated in terms of satisfaction. This behavior is reflected in repeat purchase and is indicated in terms of satisfaction. This behavior is reflected 12

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in repeat purchase or abstinence from further purchase. The environment consists of so many products. These factors could be sorted into four major Groups, with the seller or with the products, with the situation.

Buyer Characteristics First we should know several things about the buyer to understand how he came to a buying decision so we should know cultural, social, personal and psychological factors that operate social class etc., social factors include the influence of other people particulars reference groups, family and roles and statutes personal characteristics includes age and life-style, occupation, economic circumstances, life cycle position and personality finally, psychological characters include motivation, perception, attitudes and learning.

Product Characters Various characteristics of the product will influence their buying decision product features like quantity, size, shape, color and price and after sales services will include while making the decision. The marketer has control over these product attributes and can design them in a way to maximize the product appeal to the target market

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Nagarjuna Fertilizers Pvt.Ltd.

OBJECTIVES OF THE STUDY


The following are the objectives of the study

To study the profile of Nagarjuna Fertilizers and Chemicals Limited. To conduct survey among selected samples of farmers opinion towards N.F.C.L. To know the impact of brand image and packing on consumer. To find out the behavior implications of farmers on N.F.C.L. To determine the extent of awareness among farmers conserving various issues like utility of fertilizers. To depict the general purchase followed by farmers in buying fertilizers

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NEED FOR THE STUDY


This sector today provides livelihood to about 70% of labor force. In terms of gross fertilizer consumption India ranks 4th in the world. Fertilizer is the king pin for increasing agriculture productivity. For every ton of fertilizer put into the soil, there is an increase of 8.5 to 10 tons of food grains. It has been estimated that about 70% of the agriculture production can be attributed to increased fertilizer use. It contributes nearly 35% of the net national product and accounts for sizeable share of total value of countries export .As a matter of fact that large portion of farmers are illiterates, as such they may not have wide information reach. India needs to adopt the modern technology for attaining self- sufficiency in fertilizer product. A company from the Agro input was chosen for the project .This is one industry where the target is a rural base. The company N.F.C.L was selected for the project because it is an active player in the Agro input sector and also because it enjoys Home Zone advantage in Andhra Pradesh. This study is meant to find out the customers perception toward N.F.C.L products.

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SCOPE OF THE STUDY

Studying buying behavior of the farmers situated at Chebrolu, Ponnuru, Repalle .This study focuses on the behavioral implications of farmers with respect to N.F.C.L. Also an attempt has been made to study the crop pattern changes and utilization of fertilizers to improve the agricultural product. Project report is a part and parcel of the curriculum of M.B.A.Trapping the exact causes that influences the consumer buying behavior is never in simple process.

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Nagarjuna Fertilizers Pvt.Ltd.

METHODOLOGY OF THE STUDY


Nature of data: Methodology is the systematic procedure of collecting information in order to analyze and verify a phenomenon. The collection of information in done through two principal sources namely: 1. Primary Data

1. Secondary Data Primary Data Sources: The information is collected through personal interviews and direct interaction with dealers and farmers. Secondary Data Sources: This study based on secondary data which is collected from already published sources such as: 1. Annual reports and internal records of N.F.C.L. 2. Reference from text books, journals and other manuals of N.F.C.L. Source of Data: Data collected from farmers and company people, existing reports, oral discussing with other people. Sample Size: A total sample size of 200 farmers keeping in mind the limited manpower and time available. This size was selected on the basis of the discussion with the senior manager of the company.

Sampling Methodology: Marketing research is basic tool, which fertilizers decision making by considering the various elements enabling to get the right information, at the right time, at the right place and to the right persons who are involved in decision making. Research methodology which is the most vital and back bone of the study helps to determine

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the reliability strength and accuracy of the project. It is used to select the sample size data collection and various tools for data analysis. Research Design: Research design is purely a plan for a study it guides collection and analysis of the data. It is the blue prints in completing the study. Method of Technique of Data Collections: Personal interview technique was adopted to obtain data. Questionnaire Design: When the information that a research needs is not available in the secondary source a questionnaire aids in getting the information. In the study in order to avail the data for the primary objective special emphasis was given. Most of the questions were closed ended and few were open ended closed and question will enable to classify the whole industry. Tabulation of Data: The days completed questionnaires were tabulated with various tools such as graphs, diagram, averages, percentages etc., have been drawn where ever necessary to illustrate facts and figures. Period of Study: The study covers the collection of the data from various areas in GUNTUR DISTRICT and the plan of the study is based on its a course curriculum during the vacations, short span i.e., 7 weeks.

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LIMITATIONS OF THE STUDY


The following are the limitations of the study

As farmers satisfaction is in tangible and the measurement was difficult. This is study is undertaken as apart of course curriculum during vacations, a short span of 7 weeks is one of the limitation of the study. Analysis is based on the information given by farmers. Percentage is calculated by taking 200 farmers as cent. The survey span is limited to only which may not represent the total community. The study is confined to limited area. So, the limitations are projecting results to other areas. Due to illiteracy on behalf of farmers might not give accurate information.

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INDUSTRY PROFILE
The primary sector agriculture plays a dominant role in our Indian economy. Nearly 70.6% of the population depends on the agriculture for their livelihood. The agriculture contributes 30% of the national income. A mere 10% of the earth surface area is used to grow agriculture crops. The population on the earth is increasing continuously and even greater quantities of food are required. Obviously ,there is a need to increase the soil fertility as cultivated area cannot be expand. India is having agrarian economy, uses the method of agriculture still largely traditional. It is dependent on the variation weather. Only th of net swan area is irrigated from potential surface and water resources. Indias agriculture is on constant toil of the food production. Continuous cropping removes plant nutrients and depletes soil fertility. Available plant nutrients can be lost through grazing, leaching and run off of excess water and by wind version. To maintain the soil fertility and obtain the higher yields year by year, nutrients have to add in the soil. The materials generally used to add nutrients are known as Fertilizers. Fertilizers contain one or more of these essential plant nutrients, 16 elements are essential for growth and developing of all plants there are Carbon, Hydrogen and Oxygen, Phosphorus, Potassium, Sulphur, Calcium, Iron, Zinc, Manganese, Chlorine, Molybdenum. Each nutrient performs certain specific tasks in the plant and one cannot substitute for another .The defiance of particular nutrient can be correct by supplying that nutrient and by correction and other limiting factor that may be hindering its availability or absorption by the roots Whenever any nutrient is in short supply in the plants, food, the plant protests. It does not grow well, gives a sick appearance and several abnormal signs appear on its leaves, bud and other parts. These are known as Sighs of Hunger or more technically Nutrient Defiance Symptoms. Appearance of the symptoms of defiance reflects an already aggrieved situation and not the begging of the problem. Nutrients loss in the plant lead to loss in yield and this loss can be avoided only to get more yields from a given quality of fertilizer use.

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ADVANTAGES OF EFFICIENT (FERTILIZERS) USE: It results in higher yield gain per unit nutrient It pulls all investments and efforts to best possible use It reduces per unit cost of crop production It can be accomplished without major investment India is the 4th largest producer and user of fertilizers in the world. Fertilizers are being produced in a large number of factories.

TYPES OF FERTILIZERS: 1Straight Fertilizers Straight Nitrogenous Fertilizers(Urea) Straight Phosphate Fertilizers Straight Potassium Fertilizers

2. Complex Fertilizers 3. Mixed Fertilizers 4. Micro Fertilizers

NEED FOR FERTILIZERS: Fertilizers are one of the essential inputs for Agricultural production. A fertilizers refers to a material added to the soil inorder to supply a chemical element needed for plant nutrition and improving soil fertility . Fertilizer represent the most common currency used by farmers to deposit plant nutrients into their soils to ensure that adequate nutrients are available to feed the crop. Fertilizers play a crucial role in realizing the goal of self suffiency through the green revolution.

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The major factors influencing the selection of the rate and placement of fertilizer are the crop characteristics , soil characteristics and climate ,moisture supply, yield goal and the cost of the fertilizer in relation to the sale price of the crop. Fertilizers have played a key role in our countrys march towards achieving self sufficiency in food grains production. While we have achieved a great deal towards self reliance in fertilizer and food, the future is more challenging than that was in the past. The fertilizers are essential nutrients, which directly help to boost the crop yield, but application of micro nutrients like sulphur, zinc, magnesium etc. are also important for plant growth and crop yield .Fertilizer efficiency is seldom high and depends on the method of application. Another fact in support of the use of fertilizer is that fertilizer use is increasing in many countries and simulteaneously very high crop yields are being obtained. There several countries in the world whose per hectare fertilizer consumption of N+P+K is more than 400 kgs while the recent average fertilizer consumption in India about 90 kgs per hectare and there is a great scope for improvement.

FERTILIZERS INDUSTRY IN INDIA: The fertilizer Industry in India is energy deficient comparable to the rest of the world. The Indian fertilizer Industry continuous to be adversely effected by consistent practices of the retention pricing scheme. Indias fertilizer Industry has made steady progress. Its energy consumption and capacity utilization are comparable to the best in the world. The investment costs as well as conversion cost are low. However plants in India are seriously handicapped by the substantially higher cost of feed stock. The Rs.350 Billion Industries are not free from troubles. In fact there has been no new investment in the fertilizer sector in the 10 years.

THE FERTILIZER SCENARIO: The growth of Indian economy is based on consumption of food grain by 200 A.D. During the 1980-1990 food grain consumption increased by about 65% million tones tones. Over the next five years period this has to about 65 million tones which as a challenge task. Due to the population explosion in India the net per capital availability of cultivated land reduced from 0.3 to 0.14 heater by turn of the century. 22

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As the cultivating land cannot be expected, it is a must to increase the fertility of soil. Hence , there is a great demand for fertilizers in countries like India.

OPPORTUNITIES: Food consumption of the average Indian would jump up as he begins to look for nutritious foods. This would call for increased use of fertilizers.

THREATS: Consumption will flow from the gulf countries, which are planning to setup gas based fertilizer plant in their own countries.

PRODUCTION AND CONSUPTION OF FERTILIZERS: During the last 25 years so, the importance of fertilizers has grown phenomenally. With the growing demand, efforts were made to develop the domestic fertilizer industry after the beginning of the first plan period. Three decades of planning and development of the fertilizer is a key input for agricultural development. The industry was therefore accorded a prestigious place in our development strategy. The nitrogen production capacity has increased from 85,000 tons in 1951 to 53 lacks tones in 1983-1984. The phosphoric capacity has gone up from 66,000 tons in 1951 to 14, 90,000 tones in 1983-84.During 1989-90, fertilizer consumption was 11.6 metric tons. At present about 66% of the fertilizer demand is met by domestic production. The balance 34% is met from imports. There are 36 large fertilizer units producing a wide range of nitrogenous, complex and phosphoric fertilizers. Besides there are about 40 small units producing single supple phosphate and 6 units producing ammonium sulphate. By 2000, the fertilizer consumption is increase to about 20 mt to achieve the targets food grain production of 235 to 245 mt.

GOVERNMENT POLICY: The fertilizer industry is controlled by government policy in relation to production, sales and return on investment. The recent announcement of introducing two new pricing methods contrary to the expectations of anew policy as delivered the death knell to fertilizer units. The implementation of a pricing policy to set off genuine admitted claims of companies so as to sustain subside is a very harsh 23

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decision. The impact of new pricing policy on the matters of retrospective effect would lead to huge recoveries from fertilizer companies. The government of India further seems not to honor its commitment to November 1997 resolution based on which entrepreneurs and shareholders had made their investments. All these actions of the government in changing parameters would lead to crewing sickness of the Fertilizer Industry. The need of the hour is more to decontrol fertilizer all together in line with other sectors rather than merely tempering with pricing policies to contain subsidy at the risk of damaging permanently in the domestic fertilizer industries which has played significant role in food security of the Country.

DECONTROL OF FERTILIZER INDUSTRY: With the economic crisis of 1991, more emphasis was laid on reducing the fiscal deflect. One of the sectors with large subsidy payments, and was partly responsible for the fiscal deflect was the fertilizer sector. The steady increase in fertilizer subsidies over the years has largely been the cause for the increased the cost of importing the indigenous fertilizers from time to time. The cost of carious inputs such as coal, gas, naphtha, rock phosphate, Sulphur, ammonia, phosphoric acid, electricity, etc., and also the cost of Transportation went up significantly during the eighties. The gas based fertilizer units started during this period also involved higher capital investment per tone of installed capacity. Thus to meet the financial deficit, government effected an increase Of 30% in the prices of fertilizers from August 1991. However, this trice hike did not alter the consumption of fertilizers, because of the steady growth in production to meet the growing demand.

SUBSIDY ON FERTILIZERS: The sale price of the fertilizers is fixed by the government of India, Department of agriculture & co-operation under the fertilizer order, and 1985 Issued under the essential commodities Act, 1995. Act present only urea, which is the main nitrogenous fertilizer constituting about 56% of the total Fertilizer consumption in the country, is under saturator price control. Payment of subsidy in respect of controlled fertilizer is regulated earlier through the mechanism of retention price-cum-subsidy

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scheme. But now the new pricing scheme and norms for urea manufacturing units came into effect from April 1, 2003.

FOOD FOR THE GROWING WORLD: INDUSTRY AT A GLANCE: Since1883 the industry has worked to promote the advance in the development and application of fertilizers that have helped to feed hungry world. The revolutionary concept of plant nutrition was born from the discovery of the biological role of chemical elements in plant nutrition and the need to feed a growing population concentrated away from the farm in the rising industrial centers of the world. Because of modern fertilizer, world food production since 1960 has more than doubled, keeping pace with population explosion. Today, the fertilizer industry is poised to help produce the food that will be needed to feed the worlds projected 9billionpeople in 2005. The fertilizer industry is essentially concerned with the provision of three major plant nutrients-nitrogen(N),phosphorous(P) and potassium(K) in plant available form. Each nutrient is responsible for different aspects of plant growth and health.

FERTILIZERS REGULATED FOR QUALITY AND SAFETY Like other manufactured goods, fertilizers are regulated for quality and Safety at the federal and state levels. Every state in the country plus Puerto Rico has its own fertilizer regulatory program, usually administrated by the state department of agriculture.

STAE REGULATIONS: State regulation is concerned with consumer protection, labeling, the protection of human health and the environment and the proper handling and application of fertilizers. Fertilizers are regulated at the state level because soil conditions vary dramatically from state to state across the country. For example, the rocky thin soils of new England are vastly different from the deep, rich, black soils of the Midwest corn belt. A different level of fertilizer nutrients in the soil, the different crops and different weather and cropping patterns require state specific regulations.

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WHERE SCIENCE AND SAFETY COME FIRST: The modern commercial fertilizer industry was founded on the revolutionary scientific discovery in the last part of the 18th century that chemical elements play a direct role in plant nutrition. This initial concept was supported by direct scientific experiment and opened the way for industrial-scale manufacturing of fertilizers of all types in the 19th century, beginning with super phosphate in 1843. This was followed by ammonium sulphate, sodium nitrate and finally in the first two decades of the 20th century, the manufacturing of synthetic nitrogen fertilizers directly from atmospheric nitrogen. ASSESSING FERTILIZERS SAFETY: Fertilizer research and development historically have been focused on maximizing economic crop yields from given rates of nutrient application. Since the advent of modern environmental movement in the 1960, research has also been concerned with minimizing fertilizer manufacture and application. As part of its continuing commitment to safety in 1996. The fertilizer institute initiated a compressive safety assessment project to determine the risks, if any of the metals in fertilizer. Small amounts of metals are found in phosphate and potash fertilizers due to their presence in the mind or bodies. In addition to phosphate and potash products, some micrometer fertilizers which come from both mined ores and recycled wastes also contain metals.

FERTILIZERS ENRICH OUR WORLD: Improvement in agricultural efficiency through research and technology increase food output while protecting the environment and enriching our world in numerous ways. Fertilizers fed the growing world. As the worlds population continuous to climb towards an estimated 8.5 billion in 2040, experts estimated that food production must increase more than 2% annually to even maintain current diets. Commercial fertilizers will be key in the fight to feed the growing world. Because fertilizer is the most controllable source of plant nutrients, farmers, through careful selection of nutrient rates, placement and timing of fertilizer placement will be able to supply the food plants need at nearly optimum levels to achieve economical and environmental efficiency.

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Nagarjuna Fertilizers Pvt.Ltd.

Fertilizers protect the environment. The efficient use of fertilizers also helps to conserve the natural environment. With fertilizers and modern high-yield farming practices, more food produced per acre each year, so land may be conserved. Fertilizers used properly help to prevent the wide spread loss of habitat that results. Fertilizers also help to reduce global warning because they improve plant nutrition. Through enhanced photosynthesis, healthily crops give off more oxygen, helping to balance the earths atmosphere. But nitrogen(N), phosphorous(P) and potassium(k) the major ingredients of

fertilizers also from the basis for many familiar everyday products.

FERTILIZERS AT WORK IN THE INDUSTRY: A side from their benefits to agriculture, fertilizers components are central to such industrial processes as semiconductor chip making, resigns manufacture; cattle feed production, metal finishing, the manufacture of detergents, fiberglass insulation and more, even rocket fuel.

RETENTION PRICE SCHEME: The RPS was introduced in Nov. 1977 fir Nitrogenous fertilizers and on February 1979 for complex fertilizers. The main objectives of RPS were primarily twofold: To induce rapid and sustained increase in consumption by keeping the price of fertilizers at affordable levels. To facilitate required growth of domestic industry by ensuring a reasonable return on investment (ROI). Under this scheme, the government of India controlled the product pricing and movements. Every company has to submit its cost of production with the details of cost of raw materials and cost of utilities. Packing materials conversion cost capital related cost etc.. based on the data submitted by the company . FICC ( fertilizers industries co-ordination committee ) an autonomous body reviews the data and fix up the retention price for the product with guarantee 12% post tax return.This price is subject to change on quarterly basis with the escalation and de-escalation in the procurement of cost of raw material utilities and bags.

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MBA PROGRAMME PRE & POST CONTROL:

Nagarjuna Fertilizers Pvt.Ltd.

During the decades of 70s and 80s conductive policies are followed to promote rapid and sustained increase in the use of fertilizers besides ensuring their balanced application . the hallmark of these policies was the RPS. During the period 1981-82 to 1990-1991, fertilizers policy was stable, the price of both nitrogenous and phosphate fertilizers remained unuttered. But the subsidy burden to the government of India went on increasing drastically. During 1982-82 it was 375 crores. Where as in the year 1990-91, it increased to 9810 crores. The joint parliamentary committee report, 1992 suggested decontrolling phosphate and potassium fertilizers, in order to reduce the subsidy burden to the government accordingly, the4 same with effect from 24th august 1992. The consequences of decontrol are sudden increased in the selling price of the product, which resulted in the reluctance from the farmer community to procure the produce to its high price. The demand for the product has come down and whatever company could sell is at a UN remunerative price, as company could not match its production to its setting price. Under these circumstances the fertilizers industry represented to government and the government of India have sanctioned certain concessions like abolition of customs duty in import of raw materials, procurement of foreign exchange at official rate for discharging the raw materials, creditors and finally an adhoc concession of 100/- for every tone DAP sold.

Pricing: Following the JPC recommendations in august 1992 phosphate and potossic fertilizers were decontrolled. To cushion the impact of sharp increase in price , concessions at 1000/- per ton of DAP and MOP and proportionately on complex fertilizers was announced ignoring SSP. The domestic producers of DAP and other complex phosphate fertilizers have been at an disadvantage imported DAP. The disadvantage of domestic industry was further aggravated by introduction of import duty on both DAP as well as raw material and intermediates at uniform basic rate of 5%.

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TECHNOLOGICAL PROCESS: The two major fertilizer products namely Urea and DAP are expected to remain to be pivotal in providing N and P205 respectively in the foreseeable future.It is therefore , essential that the fertilizer industry devotes more and more effort and resources to improve the productivity and efficiency or the existing products and in particular Urea and DAP/NPK fertilizers.Extensive research is going on world to develop alternative energy forms from renewable natural sources, petroleum sources including natural and associated gases would be occupying the dominant position as the major in N (ammonia production).

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COMPANY PROFILE

ABOUT THE PROMOTER OF THE NAGARJUNA GROUP Late Sri Kanumuri Venkata Krishna Raja, popularly known as K.V.K was the first person to be educated in family and was highly influenced by the national spirit in the family. K.V.K realized that our country had the natural resources, which could be utilized to serve its people. Those were the days when the country when was industrially in its infancy and had to depend on imports for many things. He was graduated from Banaras University in 1949, and further specialized in Automobile Engineering from the Madras institute of technology. There after he proceeded to U.S.A for his M.S. in industrial Engineering from the Michigan stets University and later in the Mechanical Engineering from the University of Minnesota, Minneapolis. K.V.K was a visionary and professional technocrat entrepreneur who realized the of core industrial sector like agriculture, steel, Financial services to the Indian Economy. Hailing as he was from an agriculture family, his dreams towards serving farmer through industry remained alive. When there was an opportunity in the oflicense to produce fertilizers (Urea) with the Govt. of lying idle and immaterialized, K.V.K boldly took the opportunity. In recognition of his contribution to industry and Eminence in business the Jawaharlal Nehru Technological University had conferred him the title Doctorate of Science K.V.k was also awarded. Manager of the year Prof. V. Nayudamma Memorials Gold Medal Uddyog Rattan Award DR.K.L. award for Excellence K.V.Ks interest extended beyond business and industry. he laid great importance on attitudes of people. Attitudinal development and foresting positive thinking amongst people was another priority of K.V.K, His goal was to pioneer the development of management system based on Indian spiritual value s. He was a 30

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Nagarjuna Fertilizers Pvt.Ltd.

strong believer in Naturopathy and Yoga, a secret of his strength in shouldering large responsibilities.When K.V. suddenly passed away, it was a great not only for the Nagajuna Group but to many in the country and abroad who knew K.V.K as astrong personality, founder of Nagarjun a Group foll of dreams and plans for industrial growth.

ABOUT THE COMPANY The flagship company of the Nagarjuna Group, Nagarjuna Fertilizers and Chemicals Limited is a leading manufacturer and supplier of plant nutrients in India. Commencing operations in 1985, today our asset base is around Rs. 21 billion. We have the distinction of being the single largest private sector investment in Southern India. An ISO 9001:2000 certified company, our operational profits are one of the highest in the industry. We assume market leadership in the markets we operate. Our broad portfolio of products and services include: * Nutrition solutions: Macro and Micro fertilizers and Farm Management services * Micro Irrigation solutions We offer our expertise for the management of chemical process plants, which include Specialist Services and Total Project Management. Our operations and offerings have been aligned into three strategic business units: * Straight Nutrition Business * Nutrition Solutions Business * Nagarjuna Management Services To survive, grow and attain leadership position in our areas of operation it is essential for us to identify and capitalise on emerging opportunities. Preparing for the future, proactively, we are addressing the most important aspects of our organisation: Strategy Having a long term vision for the company Structure To facilitate achieve our strategy People Aligning related policies with Strategy and Structure. In turn to build the right capability, attitude and behaviour in employees. Process To enable employees to work more efficiently and effectively, to have the best in class internal business processes.Our endeavour is to unlock the full potential of our people by transforming into a performance driven organisation that attracts the 31

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best talent, nurtures a more productive and results-focused workforce and implements initiatives, which align people strategies with organisational objectives.

THE GROUP Founded in 1973 by Shri K V K Raju with a modest investment of US$ 23 million, the Nagarjuna Group today is a prominent industrial house in India with an asset base of US$ 2.5 billion. 1974: Birth of a business group that pioneered several core sector enterprises in the coming decades. Starting with manufacturing steel, Nagarjuna Steels Limited was launched. 1985: With focus on agriculture input business started plant nutrition business with Nagarjuna Fertilizers and Chemicals Limited. 1992: Forayed into the Crop Protection Business with investments in Pesticide Formulations manufacturing followed by Technical Grade Manufacturing in the year 1994. 1994: Micro irrigation business started to address the irrigation problems of farmers living in water and energy scarce regions. 1995: Ventured into Energy sector. Entered into power generation by setting up Nagarjuna Power Corporation Limited. 1997: Entered into petroleum by setting up Nagarjuna Oil Corporation Limited. Consolidating its core activities, today the Groups major operations cover Agri and Energy sectors.

FOUNDER Shri K V K Raju - An eternal source of inspiration Nagarjuna Group is a dream willed into reality by its visionary Founder Shri KVK Raju. Shri KVK Raju a first generation technopreneur was born in a humble agricultural family in Andhra Pradesh on November 28, 1928. On graduating from Banaras Hindu University and the Madras Institute of Technology he went on to complete his Master's in Mechanical and Industrial Engineering from Michigan State 32

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Nagarjuna Fertilizers Pvt.Ltd.

University and the University of Minnesota, USA. After a short stint in the American Industry he returned to India and worked for short periods at Caltex Oil Refinery, Orient General Industries and Associated Electrical Industries. Finally, he joined Union Carbide of India and worked with them for 15 years. While working with Union Carbide, KVK's deep-rooted urge to serve society through industry impelled him to start out on his own. Thus was born Nagarjuna Group in 1973 with an investment of US$ 23 million. The Group has since then come a long way to become a diversified conglomerate with an asset base of US$ 2.5 billion. A recipient of various awards for his outstanding contribution to the industry and society, KVK, was a firm believer in the adage "practice what you preach". A self-made man KVK practiced simple living and high thinking. He dreamt big and worked with an unstinted focus of mind and body to make his dreams come true. KVK was a visionary with firm belief in his mission to serve society through industry. It is this belief, which continues today to be the guiding light of Nagarjuna Group

PRODUCTS SERVICES Our aim is to help the farmer in maximizing qualitative and quantitative output. Our specific goals in order to have a pleased customer are to offer an attractive costbenefit ratio by delivering superior products and services in terms of functionality, in terms of quality, offering better prices, increasing choice of products, offering better conveniences like ease of use and availability. Efficient fertilizers and fertilization methods have become the only answer to the ever-growing demand for farm produce. Modern agriculture must supply crops with optimal rates of nutrients throughout the growth cycle in the most efficient manner and without degrading soil and water resources. This can be achieved through adoption of modern and precision practices in terms of nutrient management with Specialty Fertilizers. Specialty Fertilizers (SF) are fully water-soluble solid fertilizers having high content of primary nutrients with low salt index. They may or may not have Secondary/micro-nutrients. These water-soluble fertilizers can be advantageously utilized for foliar feeding and Nutrigation/Fertigation, thus helping in precision agriculture. The simultaneous delivery of water and fertilizers to the crop through the irrigation system ensures that plant nutrients are directed to the active root zone. 33

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Nutrigation/Fertigation amplifies the nutritional and environmental benefits of this technique by using pure plant nutrients exclusively. A well-balanced Nutrigation program will satisfy the exact needs of the plant as they change along the season. Specialty fertilizers require distinct attention as it is relatively unknown to Indian farmers and comes with a new concept of precision agriculture. The consumption of specialty fertilizers is growing and indicating the improved acceptance of the concept and products. The consumption of specialty fertilizer is expected to grow in coming years in view of greater commercialization of agriculture, mandatory provision of fertilizer tank in government projects of Micro Irrigation systems along with growing concern towards quality of output and need to achieve higher productivity from every unit of land.

I. PRODUCTS
A. MANUFACTURED PRODUCTS 1. Urea (46% N) (White free flowing) Prilled Specifications as per the Fertilizer Control Order 1985

(i) Moisture per cent by weight, maximum 1.0 (ii) Total nitrogen, per cent by weight, (on dry basis) minimum 46.00 (iii) Biuret per cent by weight, maximum 1.5 (iv) Particle size--90 per cent of the material shall pass through 2.8 mm is sieve and not less than 80 per cent by weight shall be retained on 1mm is sieve

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3. Anhydrous Ammonia 4. Specifications as per the Fertilizer Control Order 1985 (i) Ammonia per cent by weight, minimum 99.0 (ii) Water per cent by weight, maximum 1.0 (iii) Oil content by weight, maximum 20 ppm Application:

Used for production of Urea, DAP, Ammonium Sulphate and Ammonium Nitrate (for fertilizer, explosives, herbicides and insecticides)

Used for water treatment, fermentation, tanning and food additives

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MBA PROGRAMME B. Marketed Products 1. Diammonium Phosphate (18-46-0) - DAP

Nagarjuna Fertilizers Pvt.Ltd.

Specifications as per the Fertilizer Control Order 1985 (i) Moisture per cent by weight, maximum 1.5 (ii) Total nitrogen per cent by weight, minimum 18.0 (iii) Ammoniacal nitrogen form per cent by weight, minimum 15.5 (iv) Total nitrogen in the form of urea per cent by weight, maximum 2.5 (v) Neutral ammonium citrate soluble phosphates (as P 205) per cent by weight, minimum 46.0 (vi) Water soluble phosphates (as P 206) per cent by weight, minimum 41.0 (vii) Particle size -90 per cent of the material shall pass through 4 mm IS sieve and be retained on 1 mm IS sieve. Not more than 5 per cent shall be below than 1 mm size. 2. Muriate of Potash MOP (Potassium Chloride) Specifications as per the Fertilizer Control Order 1985 (i) Moisture per cent by weight, maximum 0.5. (ii) Water soluble potash content (as K20) per cent. by weight, minimum 60.0. (iii) Sodium as NaCl per cent by weight. (on dry basis) maximum 3.5. (iv) Particle size- 95 cent of the material shall pass through 1.7 mm IS sieve and be retained on 0.25 mm IS sieve. Application: Fertilizer

The largest industrial use for potash is in the manufacture of potassium hydroxide (KOH). KOH is a feedstock for other potassium chemicals used in a wide variety of industrial processes such as glass making, pharmaceuticals, food processing, and the manufacture of textiles.

As Water softener: Potash is a dietary alternative to salt. The ability of potash to reduce water hardness is virtually the same as salt

Potash is used in the preparation of hydraulic fracturing solutions for oil well drilling to control swelling in certain clay formations 36

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Food processors and pharmaceutical manufacturers use potash in various products. Potash is also used as an animal feed supplement

3. Zinc Sulphate Heptahydrate (ZnSO4 7H2O) Specifications as per the Fertilizer Control Order 1985 (i) Free flowing crystalline form (ii) Matter insoluble in water per cent by weight, maximum 1.0 (iii) Zinc (as Zn) per cent by weight, minimum 21.0 (iv) Lead (as Pb) per cent by weight, maximum 0.003 (v) Copper (as Cu) per cent by weight, maximum 0.1 (vi) Magnesium (as Mg) per cent by weight, maximum 0.5 (vii) pH not less than 4.0 4. Zinc Sulphate Mono-hydrate (ZnSO4 H2O) Specifications as per the Fertilizer Control Order 1985 (i) Free flowing powder form (ii) Matter-insoluble in water, per cent by weight, maximum 1.0 (iii) Zinc (as Zn). per cent by weight. Minimum 33.0 (iv) Lead (as Pb), per cent by weight, maximum 0.003 (v) Copper (as Cu), per cent by weight, maximum 0.1 (vi) Magnesium (as Mg), per cent by weight, maximum 0.5 (vii) Iron (as Fe), per cent by weight, maximum 0.5 (viii) pH not less than 4.0

5. Chelated Zinc as Zn-EDTA Specifications as per the Fertilizer Control Order 1985

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MBA PROGRAMME (i) Free flowing crystalline / powder form

Nagarjuna Fertilizers Pvt.Ltd.

(ii) Zinc content (Expressed as Zn), per cent by weight, minimum 12.0 in the form of Zn-EDTA (iii) Lead (as Pb), per cent by weight, maximum 0.003 (iv) pH 6.0 6.5

6. Formulation No. 4 (in Andhra Pradesh only) Nutrient contents on percentage basis (i) Iron (as Fe), per cent by weight, minimum 4.00 (ii) Manganese, per cent by weight, minimum 3.00 (iii) Zinc (as Zn). per cent by weight. minimum 6.00 (iv) Copper (as Cu), per cent by weight, minimum 1.00 (v) Molybdenum (as Mo), per cent by weight, minimum 0.05 (vi) Boron (as B), per cent by weight, minimum 2.00

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7. Di-Sodium Octa Borate Tetra Hydrate (Na2 B8O13.4H2O) Specifications as per the Fertilizer Control Order 198 (i) Boron (as B), per cent by weight, minimum 20.0 (ii) Matter insoluble in water, per cent by weight, maximum 1.0 (iii) Lead (as Pb), per cent by weight, maximum 0.003

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MBA PROGRAMME 8. Speciality Fertilizers PRODUCT

Nagarjuna Fertilizers Pvt.Ltd.

Available Nutrients % As NO3 NH4 NH2 P2O5 K2O EC @ 1% pH @ 1%

MULTI -K (13-00-46)

13.2 4

10

19 61 52

46 19 -

1.2 0.88 0.69

9.0-11.0 5.3 4.0-5.0 4.0-5.0

Poly feed: 19-19-19+MEN 5 MAP (12-61-00) MKP (00-52-34) -

12.5 -

34.5 NA

MULTI K MAP

Potassium Nitrate Mono Ammonium

13-00-46 12-61-00

Phosphate Mono Phosphate NPK Blend NPK Blend NPK Blend Sulphate of Potash Calcium Nitrate Potassium

MKP Polyfeed Polyfeed Polyfeed (Non-nominated FCO Grade) SOP Calcium Nitrate

00-52-34 19-19-19 + MEN* 13-40-13+ 2MgO + MEN* 15-15-30+ME 00-00-50 15.5-00-00-19

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MBA PROGRAMME Fertigation Products

Nagarjuna Fertilizers Pvt.Ltd.

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MBA PROGRAMME Foliar Application

Nagarjuna Fertilizers Pvt.Ltd.

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MBA PROGRAMME MANUFACTURING FACILITY: Urea manufacturing facility - Kakinada

Nagarjuna Fertilizers Pvt.Ltd.

One of the largest Urea complexes in India, the plant is spread over 1130 acres. It is strategically located at Kakinada, a seaport on the east coast of India in the state of Andhra Pradesh. The company enjoys close proximity to raw materials and a ready market at its doorstep.The Natural gas based plants operate with one of the lowest energy consumption rates in the world. Charting out an ambitious future, the plant is planning to expand its operating capacity from the current 1.2 Million Tonnes to about 1.7 Million Tonnes per annum. The expansion is being planned keeping in mind the availability of additional Natural gas from the recently found huge Natural gas reserves in the nearby KrishnaGodavari basin. We strive to adopt the global best practices in all areas of operations. The world class operations have resulted in long uninterrupted runs of plants for over 365 days with maximum availability of plant on-stream days. Minimum possible human interference and best maintenance practices keep equipment and facilities fit for intended use under safe working conditions. Process simulation software like ASPEN PLUS and drafting software like AUTOCADD is used for plant simulations / modifications and in turn to minimise energy consumption, maximise production and maximise asset utilisation.

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The plant also has an exhaustive documentation section and technical library with over 1300 Technical books and journals. The library also houses more than 1250 national and international standards. Maintenance Best maintenance practices like predictive / proactive maintenance and reliability centred maintenance are adopted in the plant to have zero equipment breakdown and zero accidents due to equipment failure. Quality Control Strict adherence to quality in every aspect of production. Laying stress on technology, the plant maintains strict quality control of products with online product sampling and product quality monitoring. This has resulted in minimal fines and biuret in the product.

Certifications & Recognitions:

NFCL has been awarded with Rashtriya Chemicals and Fertilizers 2007 Award by the FAI for the best article in Production and Technology.

NFCL has won the Best Technical Innovation Award from Fertilizer 2006 Association of India for performance excellence in the field of production technology.

Golden Peacock National Quality Award for 1995 by Institute of 1996 Directors, New Delhi.

Technical Services To consistently achieve Global Manufacturing Excellence and to meet world benchmarks in product quality, energy efficiency, production maximisation, environment control and plant safety, the plant has adopted the best practices like Total Productive Maintenance (TPM), Process Safety Management (PSM) and has also undertaken several other initiatives. To achieve all these we have specialized and dedicated teams like Process Engineering, General Engineering, Total Productive maintenance, Quality Control, Occupational Health & Safety.

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MBA PROGRAMME People:

Nagarjuna Fertilizers Pvt.Ltd.

We believe in creating a culture that encourages values, teamwork, innovation, leadership and performance. The plant site at Kakinada provides several employee friendly facilities like well managed canteen, club house with most modern recreational facilities including indoor games, swimming pool, theater etc. Several programs are regularly organised for employees and their families like sports and cultural events. A school with most modern facilities is being run for the children of employees. Talent The company has a pool of immensely talented people with wide experience in the industry. Specializing in Operation and Maintenance, Project Management, Technical Services, E H & S, the team has experience in large modern integrated process plants across the globe. Training & Development The company has recognized well in advance the need for training and development of its human resources, to help them develop their skills to adapt to the changing world business and technological scenario. The plant has world class training infrastructure facilities. Spacious classrooms congenial for learning sessions are well equipped with the latest and modern gadgets. NAGARJUNA MANAGEMENT SERVICES A strategic business unit of NFCL, Nagarjuna Management Services (NMS) offers its expertise on a long-term basis for the management of chemical process plants, especially to ammonia and urea complexes worldwide. Our team of professionals managing the Kakinada plant have acquired wide and rich experience in smooth operation, troubleshooting and emergency handling. Our engineers and operators have visited fertilizer sites in Iran, Libya and Venezuela as requisitioned by Process Licensors in the past. The NMS team has been rated excellent by all our clients. We offer our services for taking over total responsibility of operation and maintenance and other specialist services on long-term basis. Our services aim at fullest satisfaction of client in achieving pre-agreed targets on performance parameters. A comprehensive package of services include precommissioning, commissioning, guarantee run, normal operation, maintenance (routine as well as turnaround), inspection and condition monitoring, environment and 45

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safety services, laboratory and quality assurance, purchase and stores, process engineering and general engineering. In addition to O&M, we can take-up total project management services too, during project phase. We also provide class room as well as field training to clients personnel for developing competencies and enhancing skills in plant services. This would enable the clients team taking over the operations subsequently at an appropriate time. Working on the principle of core competence, we are backed by our business partners who are well known names in their respective fields. Environment: The underlying motto of the Group is We give back more to society than what we take from it. Going much beyond the statutory requirements of law for environment protection, the company has implemented a comprehensive environmental protection plan in the plant, resulting in near zero pollution of air and water through treatment of chemical pollutants, recycling and effluent control. A team was set up before commissioning of plant to look into environmental issues. Based on the Environmental Impact Assessment made by the team, utmost care was taken to incorporate the findings and create a man made forest. The green belt was the outcome of the combined wisdom and experience of the countrys best experts in such diverse disciplines as forestry, horticulture, soil chemistry, ornithology and landscaping. Creating ecology in a barren saline infested marshy land, over two-thirds of the plant complex (nearly 700 acres) was earmarked and has been completely developed into a green belt which extends over a kilometre with more than 0.35 million trees of 170 species, eleven water bodies with marine life, animals and birds. It is a favourite of nearly 70 species of migratory birds. In addition to the monitoring stations at Kakinada Plant, an ambient air monitoring mobile van is also available to monitor the quality of air outside the factory premises. The plant has the state of the art facilities for continuous monitoring of Ambient Air, Soil & Ground water quality and analyses of gaseous emissions and liquid effluents. The data is continuously analyzed and recorded in the computer situated in the central laboratory.

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MBA PROGRAMME COMPANY LOGO:

Nagarjuna Fertilizers Pvt.Ltd.

The new corporate logo of the Nagarjuna Group symbolizes a dynamic and value based organization including the concept of Trusteeship. The logo exemplifies the Groups inner strength through the circle which stands for the core values of the organization. Viz., concern, commitment, quality and integrity towards it shock holders viz., customers, employees, investors and community. The triangle represents the plant Mars. Mars, from time immemorial has symbolized prosperity, success and abundance of the energy. The triangle in the logo represents the upward flow of perennial energy towards the mission of the group Serving Society through Industry. 1982 Nagarjuna Finance Ltd 1985 Nagarjuna Fertilizers & Chemical Ltd 1991 Vijaya Lakshmi Insecticides & Pesticides Ltd 1992 Nagarjuna Investors Services Ltd 1993 Nagarjuna Agro Chemical Ltd 1994 Nagarjuna Palm India Ltd 1995 Nagarjuna Agricultural Research & Development Institute 1995 K.V.K. Raju International Leadership Academy 1995 Nagarjuna Electric Generating Company 1996 Nagarjuna Power Corporation Ltd 1997 Pennar Refineries Ltd

The central circle symbolizes the sun, the source of prime energy for the solar system. The five circles also symbolize the five elements of the universe and the spirit of continuity.

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MBA PROGRAMME MAIN FEATURES: FINANCING:

Nagarjuna Fertilizers Pvt.Ltd.

The total cost of existing complex is Rs.2156 crores (Rs.1186 corers for unit I and Rs.970 cores for unit - II). This consists of loan of Rs.1, 162 crores (Rs.515 cores for unit I and Rs.647 cores for unit - II) sanctioned by IDBI, IFCI, ICICI, UTI, LIC, GIC and also banks. The foreign exchange component of Rs.781.07 cores was met by the Indians Financial Institutions like IDBI, IFCI & ICICI and also by Italian buyers credit. The equity portion of Rs.332.12 crores was subscribed by the public and promoters. The internal reserves of Rs.323 crores were utilized for construction of unit II.

MARKETING: NFCL is operating in Andhra Pradesh, Orissa, West Bengal, Maharashtra, Karnataka and Pondicherry (Yanam territory). A professional team, with a wide range of products that include Urea, traded fertilizers (DAP, MOP, Complex Fertilizers), Micro-Nutrients, pesticides, Organic-Fertilizers and Bio-Pesticides, has taken NFCL very close to the farmer and made NAGARJUNA a household name among the farming community. Keeping pace with the change in agricultural practices NFCL has developed organic-fertilizers and bio-pesticides with support from NARDI. A new concept in fertilizers i.e., customized Fertilizer Granules (CFGS) has been developed and the product is in trials. NFCLs Development activities focus on imparting training to farmers and dealers on the latest package of practices in various crops and technology transfer. Training programs are carried out both on campus at KVK, Kakinada and off-campus at villages and towns. A well-equipped and trained development team organizes the programs using audio-visual vans, jeeps, slide projectors and literature on products crops, etc. State Government, Agriculture Universities and the farming community as a whole have acknowledged the effectiveness; of development programs being carried out by NFCL. DIVERSIFICATION: Nagarjuna Group is on the threshold of major growth phase. Nagarjunas aim is not just to meet the challenges of change, but to be the leader in all the businesses that we are in, namely, Agro Inputs/outputs, Energy sector, refining and Financial services. Nagarjuna Group will thus have significant presence in the core sectors of 48

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Nagarjuna Fertilizers Pvt.Ltd.

the economy, which will have a multiplier effect on the industrial and socio-economic development of the country. SAFETY AND HEALTH MANAGEMENT: The safety and health of all employees is of paramount concern in NFCL. The management is fully committed to maintain the highest standards of safety and health in work place. The employee participation is ensured by Departmental safety committees where the matters relating to safety are dealt with promptly. NFCL is offering itself for audit to become eligible to receive the 5-star safety award of British safety council, U.K. HUMAN RESOURCES DEVELOPMENT: It has been the constant endeavor of NFCL to attract, retain and nurture human resource by developing a culture based on human values, in order to enable the organization to become an extension of the family. Hierarchies have been blurred and teamwork is encouraged. Various facilities like Uniform, canteen and recreation are common to all employees. In order to develop all employees, both personally and professionally, a PERFORMANCE MANAGEMENT SYSTEM has been developed based on companys mission and values. AWARDS AND HONOURS: EPIC Award for anti-pollution measures taken by the industry by environment public interest committee, Kakinada in 1993.Good housekeeping Award for 1994 by national safety council, A.P. chapter.Best industrial canteen Award for 1944 by national safety council, A.P. chapter.

YEAR 1994

AWARD/HONOR WON Indian chemical Manufacturers Association(ICWA) Award

AWARDED BY Environmental Control Strategies and Safety in Chemical Plants.

Award of merit for 1994-95

National safety council; U.S.A.

1995

ISO 9002 certificate

Bureau verities quality International(BVQI), Netherlands.

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MBA PROGRAMME

Nagarjuna Fertilizers Pvt.Ltd. Institute of Directors, New Delhi. National Safety Councils

Golden peacock National quality Award

19942000 1994-96

National Safety award

Rajiv Gandhi Party Bhoomi mitra Waste land development board, Award. government of India. National safety Council, U.S.A. Award for Innovative and purposeful India chemical Manufacturers Programmed for social progress. Association; Mumbai. Royal society for prevention of accident Merit Award Andhra Pradesh Chamber of Commerce& Industry

1996

National safety award

1997&1998

Merit Award

1998

Golden peacock National Award

Environmental Management by world

1999

VANAMITRA

Govt.ofA.P.

for

Developing

andMaintaining Greenbelt. 2000 ISO 14001 EMS Certification Achieved 84% in OH&S-Audit BVQI British Safety Council, U.K. 2000-2001 Best Environment Management Plan-in A.P.pollution Vizag. National Safety award Visakhapatnam. British safety council;U.K. Control Board,

Occupational health &safety assessment BVAI series (OHSAS_18001) Certificate. Bronze Award Royal Society for the prevention of accident (ROSPA),U.K. 2001-02 Environmental Protection Award Fertilizers Association of India, New Delhi.

50

MBA PROGRAMME 10.10.2001 To 13.11.2002 Perfect Record in

Nagarjuna Fertilizers Pvt.Ltd. Occupational National Safety Council (NSC) of USA.

Safety/health Award

COMPETITORS:

STATE ANDHRA PRADESH ORISSA MAHARASTA KARNATAKA

COMPETITORS KRIBCHO,RCF,SPIC,MFL,NFL&ZACC IFFCO,TCL,NFL,OSWAL&DIL RCF,KRIBHCO,IFFCO&GSFC MFL, RCF, ZACL, KRIBHCO&SPIC.

OBJECTIVES OF NFCL: 1. To provide quality products to the customers i.e. quality service. 2. To be the leaders in all the business that they do. 3. To create a sense of belongingness that their employees. 4. To have the most satisfied employees. 5. T o serve the society through zero pollution.

NFCL CORE VALUES Concern Commitment Integrity Quality

QUALITY POLICY: The aim of NFCL is to consistently produce and market urea of required. We are committed to continually improve the quality management system and enhance customer satisfaction by: Continuous focus on the requirements of the customers. 51

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Nagarjuna Fertilizers Pvt.Ltd.

Establishing and reviewing quality objective periodically. Enhancing competency of employees through training and development. Providing and maintaining the required facilities and congenial environment work

Inculcating quality consciousness, creating awareness on

Customer requirements and communicating the effective of quality. Management system through the organization. This policy will be reviewed for continuing suitability will be Communicated to all employees. STRENGTHS: A broad and modern product range. Good corporate image especially in Andhra Pradesh. Excellent dealer network in most of other states. Open work culture/good working environment. Qualified trained and motivated team. Qualified assurance system ISO-9000. Location advantage of plant. Kakinada port. Computerized equipment.

WEAKNESS: Broad product range is not synergies yet. Some complacency about market attention

OPPORTUNITIES: Huge gap between usage outside and inside India. Expansion project (starting product in 1989) offering double the quality. New irrigation projects increases the market demands. 52

MBA PROGRAMME THREATS: Decontrol. Joint venture. International cartels. Non- availability of raw materials in future.

Nagarjuna Fertilizers Pvt.Ltd.

COMPETITORS: In Urea Market: Ujwala Urea Mangle Urea Spic Urea

In pesticides market: Rallis India Limited Ciba-Giegy Lupine Laboratory.

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Nagarjuna Fertilizers Pvt.Ltd.

FARMERS SURVEY ANALYSIS


Table 4.1: Showing percentage of Fertilizers, the farmers have bought thoroughly PARTICULARS UREA POTASH D.A.P 20-20-0 COMPLEX FERTILIZERS GRAND TOTAL NO. OF FARMERS PERCENTAGE (%)

81 14 57 23 25 200

40.5 7 28.5 11.5 12.5 100

GRAPH

PERCENTAGE (%)
COMPLEX FERTILIZERS 20-20-0 D.A.P POTASH UREA 0 10 20 30 40 7 40.5 50 12.5 11.5 28.5 PERCENTAGE (%)

Source: primary data

INTERPRETATION: It is observed from the above analysis the highest people of 40% had bought the urea the next D.A. P with 28%;the complex fertilizers had share of 13% and the 20-20-0 with the share of 12%,and finally potash with 7%.

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Nagarjuna Fertilizers Pvt.Ltd.

Table 4.2: Showing top 5 Urea companies preferred by farmers.

COMPANIES NFCL IFFCHO SPIC OSWAL VIJAYA TOTAL

NO. OF FARMERS 133 27 14 15 11 200

PERCENTAGE (%) 66.5 13.5 7 7.5 5.5 100

GRAPH

PERCENTAGE (%)
VIJAYA OSWAL SPIC IFFCHO NFCL 0 20 40 60 5.5 7.5 7 13.5 66.5 80 PERCENTAGE (%)

Source: primary data

INTERPRETATION: It is observed that from the above table the top five companies in farmers point of view NFCL Stood first with 66.5% of performance for selling as it has popularity and brand image. IFFCHO (13.5%) followed by OSWAL (7.5%), SPIC (7%) and VIJAYA (5.5%)

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MBA PROGRAMME

Nagarjuna Fertilizers Pvt.Ltd.

Table 4.3: Showing usage about NAGARJUNA UREA.

PARTICULARS YES NO GRAND TOTAL

NO. OF FARMERS 192 8 200

PERCENTAGE (%) 96 4 100

GRAPH

PERCENTAGE (%)

NO

4 PERCENTAGE (%)

YES

96

20

40

60

80

100

Source: primary data

INTERPRETATION: Out of 100%, 96% farmers used NAGARJUNA UREA only 4% never used NAGARJUNA UREA.

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Nagarjuna Fertilizers Pvt.Ltd.

Table 4.4: Showing how farmers known about your present favorite UREA brand can. PARTICULARS OTHER FARMERS RELATIVES DEALERS COMPANY AGENTS VEHICLE ADVERTISEMENT GRAND TOTAL NO. OF FARMERS PERCENTAGE (%)

79 23 28 58 12 200

39.5 11.5 14 29 06 100

GRAPH

PERCENTAGE (%)
VEHICLE ADVERTISEMENT COMPANY AGENTS DEALERS RELATIVES OTHER FARMERS 0 10 20 30 40 14 11.5 39.5 6 29 PERCENTAGE (%)

Source: primary data

INTERPRETATION: It is clear that 39.5% of the farmers are known about UREA from other farmers, 12.5% of the farmers from relatives, 14% from dealers, 29% from company agents, and 6% from vehicle advertisement.

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Nagarjuna Fertilizers Pvt.Ltd.

Table 4.5: Showing for how long the farmers used their favorite urea brand. TIME PERIOD For one year For two years For five years Above five years Total NO. OF RESPONDENTS PERCENTAGE (%)

0 19 33 148
200

0 9.5 16.5 74
100

GRAPH

Percentage (%)
Above five years For five years For two years For one year 0 0 20 40 60 80 9.5 16.5 Percentage (%) 74

SOURCE: primary data

INTERPRETATION: Out of 200 farmers 148 are being used their favorite brand for more than five years, 33 are for five years, and 19 members are for two years and nil for one year.

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Table 4.6: Showing the difference between Nagarjuna urea and other urea

PARTICULARS YES NO TOTAL

NO. OF FARMERS 140 6O 2OO

PERCENTAGE (%) 70 30 100

GRAPH

PERCENTAGE (%)

NO

30 PERCENTAGE (%)

YES

70

20

40

60

80

SOURCE: primary data

INTERPRETATION: out of 200 farmers 140 members had observed the difference between Nagarjuna urea and others by considering features. Remaining 60 members havent observed the difference.

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Nagarjuna Fertilizers Pvt.Ltd.

TABLE 4.7: Showing about the size of urea pills

SERVICES RATING Poor Less Satisfied Good Excellent Total

NO. OF RESPONDENT 0 6 61 87 46 200

PERCENTAGE (%) 0 3 30.5 43.5 23 100

GRAPH

Percentage (%)
Excellent Good Satisfied Less Poor 0 0 10 20 30 40 50 3 30.5 23 43.5 Percentage (%)

SOURCE: primary data

INTERPRETATION: As per the table above, majority 43.5% farmers said that the size of pills of Nagarjuna Urea was good, 30.5% said it was satisfied, 23.5% said excellent, 3% said less.

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Table 4.8:

Showing purchase of UREA & other brands always from known dealers.

PARTICULARS Yes No Total

NO. OF FARMERS 146 54 200

PERCENTAGE (%) 73 27 100

GRAPH

PERCENTAGE (%)

No

27

PERCENTAGE (%)

Yes

73

20

40

60

80

SOURCE: primary data

INTERPRETATION: From the above table out of 200 farmers 146


members had purchased the urea always from known dealers, the remaining 54 from different dealers basing on conditions.

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Nagarjuna Fertilizers Pvt.Ltd.

Table 4.9: Showing opinion of farmers regarding packing & quality of UREA bag.

PARTICULARS Poor Less Satisfied Good Excellent Total

NO. OF FARMERS 0 14 63 81 42 200

PERCENTAGE (%) 0 7 31.5 40.5 21 100

GRAPH

PERCENTAGE (%)
Excellent Good Satisfied Less Poor 0 0 10 20 30 40 50 7 31.5 21 40.5 PERCENTAGE (%)

SOURCE: primary data

INTERPRETATION: From the above description majority of farmers (40.5%) good at packing and quality of urea bags, 31.5% farmers are satisfied, 21% of farmers felt excellent; the remaining 7% of farmers felt it should be less in packing.

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Nagarjuna Fertilizers Pvt.Ltd.

Table 4.10: Showing opinion of farmers about the accurate weight age. PARTICULARS Poor Less Satisfied Good Excellent Total NO. OF FARMERS 0 21 102 53 24 200 PERCENTAGE (%) 0 10.5 51 26.5 12 100

GRAPH

PERCENTAGE (%)
Excellent Good Satisfied Less Poor 0 0 10 20 30 40 50 60 10.5 12 26.5 51 PERCENTAGE (%)

SOURCE: primary data

INTERPRETATION: From the above analysis 51% of people felt satisfied, in accurate in weight age of urea bags. 27% of people are felt good, 12% felt excellent the remaining 10% of people are felt less

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MBA PROGRAMME Table 4.11:

Nagarjuna Fertilizers Pvt.Ltd.

Showing the opinion of farmers regarding the brand value. PARTICULARS Poor Less Satisfied Good Excellent Total NO. OF FARMERS 0 12 33 107 48 200 PERCENTAGE (%) 0 6 16.5 53.5 24 100

GRAPH

PERCENTAGE (%)
Excellent Good Satisfied Less Poor 0 0 10 20 30 40 50 60 6 16.5 24 53.5 PERCENTAGE (%)

SOURCE: primary data

INTERPRETATION: It is clear from the above table out of 200 farmers majority of farmers i.e. 107 are good at brand value of NAGARJUNA UREA. 48 farmers are felt excellent, 33 farmers are satisfied; the remaining 12 members felt it should be less.

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Nagarjuna Fertilizers Pvt.Ltd.

Table 4.12: Showing the opinion of farmers regarding the supply of NAGARJUNA UREA PARTICULARS Poor Less Satisfied Good Excellent Total NO. OF FARMERS 21 28 87 45 19 200 PERCENTAGE (%) 10.5 14 43.5 22.5 9.5 100

GRAPH

PERCENTAGE (%)
Excellent Good Satisfied Less Poor 0 10 14 10.5 20 30 40 50 9.5 22.5 43.5 PERCENTAGE (%)

SOURCE: primary data

INTERPRETATION: From the above analysis majority 43.5% of farmers are satisfied at supply of Nagarjuna urea;23% of farmers are at good mood; 9.5% are felt excellent; 14% of farmers are at less mood;10% of farmers are felt supply of urea was in poor state.

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Nagarjuna Fertilizers Pvt.Ltd.

Table 4.13: Showing opinion of farmers regarding cost of NAGARJUNA UREA.

PARTICULARS Poor Less Satisfied Good Excellent Total GRAPH

NO. OF FARMERS 5 21 73 68 33 200

PERCENTAGE (%) 2.5 10.5 36.5 34 16.5 100

PERCENTAGE (%)
Excellent Good Satisfied Less Poor 0 2.5 10 20 30 40 10.5 16.5 34 36.5 PERCENTAGE (%)

SOURCE: primary data

INTERPRETATION: Basing upon analysis done through farmers 36.5% of farmers are satisfied with cost of Nagarjuna urea; 34% of farmers are good at cost; 16.5% of farmers at excellent mood;10.5% of farmers felt less; 2.5% of farmers are felt the cost of Nagarjuna urea was poor.

66

MBA PROGRAMME Table 4.14:

Nagarjuna Fertilizers Pvt.Ltd.

Showing opinion of farmers regarding quality of NAGARJUNA UREA PARTICULARS Poor Less Satisfied Good Excellent Total NO. OF FARMERS 11 16 25 124 24 200 PERCENTAGE (%) 5.5 8 12.5 62 12 100

GRAPH

PERCENTAGE (%)
Excellent Good Satisfied Less Poor 0 8 5.5 10 20 30 40 50 60 70 12.5 12 62 PERCENTAGE (%)

SOURCE: primary data

INTERPRETATION: Out of total farmers who had surveyed by me majority 62% of farmers are good at quality of Nagarjuna urea.12.5% are at satisfied mood; 12% are felt excellent;8% are felt less; 5% are felt poor regarding the quality of urea.

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MBA PROGRAMME

Nagarjuna Fertilizers Pvt.Ltd.

Table 4.15: Showing, the farmers who had already used NAGARJUNA UREA their decision was PARTICULERS Not at all acceptable Not acceptable No opinion Acceptable Mostly acceptable Total NO. OF FARMERS 9 15 57 76 43 200 PERCENTAGE (%) 4.5 7.5 28.5 38 21.5 100

GRAPH

PERCENTAGE (%)
Mostly acceptable Acceptable No opinion Not acceptable Not at all acceptable 0 4.5 10 20 30 40 7.5 28.5 21.5 38 PERCENTAGE (%)

SOURCE: primary data

INTERPRETATION: From the above table 38% of people are acceptable with their decision if they had already used Nagarjuna urea.22%people are mostly acceptable; 29% of people have no opinion;7% of people are not acceptable; the remaining 4% of people are not at all acceptable.

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Table 4.16: Showing the farmers advised other farmers to use NAGARJUNA UREA. PARTICULARS Yes No Total NO. OF FARMERS 133 67 200 PERCENTAGE (%) 66.5 33.5 100

GRAPH

Percentage (%)

No

33.5 Percentage (%)

Yes

66.5

20

40

60

80

SOURCE: primary data

INTERPRETATION: According to survey done through the farmers 66% of members supposed the others to use Nagarjuna urea. Remaining 33% of farmers didnt advise the others to use Nagarjuna urea.

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Nagarjuna Fertilizers Pvt.Ltd.

Table 4.17: Showing the contact of farmers for crops related issues. PARTICULARS Field demonstrators Other farmers Dealers Company agents Agricultural research centre Total NO. OF FARMERS 48 54 38 35 25 200 PERCENTAGE (%) 24 27 19 17.5 12.5 100

GRAPH

PERCENTAGE (%)
Agricultural research centre Company agents Dealers Other farmers Field demonstrators 0 5 10 15 20 24 25 30 12.5 17.5 19 27 PERCENTAGE (%)

SOURCE: primary data

INTERPRETATION: On the basis of above analysis majority of farmers contact in crop related issues i.e. 27% through other farmers; 24% farmers contact field demonstrators; 19% of farmers contact dealers;17.5% of farmers contact company agents; 12.5% of farmers contact agricultural research centers.

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MBA PROGRAMME Table 4.18:

Nagarjuna Fertilizers Pvt.Ltd.

Showing the farmers read the magazines related to Agriculture. PARTICULARS Yes No Total NO. OF FARMERS 128 72 200 PERCENTAGE (%) 64 36 100

GRAPH

PERCENTAGE (%)

No

36 PERCENTAGE (%)

Yes

64

20

40

60

80

SOURCE: primary data

INTERPRETATION: From the above description majority 64% of farmers read the magazines related to agriculture. The remaining 36% of farmers dont read any such type of magazines.

71

MBA PROGRAMME Table 4.19:

Nagarjuna Fertilizers Pvt.Ltd.

Showing whenever the farmers are purchased UREA of new brand follows the following suggestions . PARTICULARS Other farmers Family members Dealers Company agents Advertisements Others Total GRAPH NO. OF FARMERS 47 29 52 34 25 13 200 PERCENTAGE (%) 23.5 14.5 26 17 12.5 6.5 100

PERCENTAGE (%)
Others Advertisements Company agents Dealers Family members Other farmers 0 5 10 15 20 14.5 23.5 25 30 6.5 12.5 17 26 PERCENTAGE (%)

SOURCE: primary data

INTERPRETATION: By adopting information through survey, whenever the farmers purchased the new urea brand majority of them suggested the dealers i.e. 26%; the next 23% of farmers get suggestion from other farmers; 17% of farmers get from company agents; 14% of farmers get from family members; 13% of farmers get from advertisements; the remaining 7% of farmers get from others

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FINDINGS
The study attempts to analyze the satisfactory levels of farmers regarding fertilizers and their expectations for N.F.C.L. and to collect their opinions regarding the product. The following findings have been recorded. It was observed from farmers that NFCL was not supplying the urea properly in peak season. NFCL dealers give the credit the farmers at high interest rates. The farmers not satisfied with the present rates of agricultural commodities, high rates of fertilizers etc. From the farmers point of view they have good loyalty of the brand NFCL. In the year 2010-2011 the farmers had observed that the urea bags with stones and mud.

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SUGGESTIONS
After the careful analysis of customers response to the Questionnaires, the following suggestions were found to be suitable for the implementation. NFCL should respond to the complaints given by the formers more promptly. The company Field Assistants has to visit the potential areas and tell the product of the NFCL and their uses of using fertilizers. The company has not only concentrated on dealers but also concentrate on farmers is must. The company has to concentrate on all areas so that they can reach the farmers and the utilization also increases. In the competition of the fertilizers the company should also consider the prices, when compared to the other companies. As the Urea supplies are not in time with the demand and as the demand is increasing year after year the company may go for production revamp for more production. Pesticides are also in a fetching side of the company, so introduction of pesticides will also increase profits to the company. The availability of the product in the villages has also been concentrate by the company. In some areas the availability at the period is not available in the season. The company has to put the company products to the direct consumer (farmer) so that the mediation, the dealers participation is somewhat controlled. As the field demonstration plays a vital role in sales promotion the field persons should be increased more for the product awareness. Villages should be adopted and develop them which stood as example to the farmers. NFCL is one of those major companies which repeatedly not only the customer but also the public that customers satisfaction is its main objectives.

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CONCLUSION
Nagarjuna Fertilizers and Chemicals Limited are having a good name in fertilizers industry. The company has been trying its best to promote the new fertilizers. The company is promoting its products mostly through market Network that is through dealers. Customers satisfaction about Nagarjuna Urea is positive. The company is experiencing a cut throat competition from Iffco, Mfc, Oswal, Spic and kribho. Companys product quality is excellent which were mostly successful in gaining the interest of the Farmers.

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MARKET SURVEY
FARMERS FEEDBACK FORM:

Name: Field (in acres):

Place: crops:

1) Which fertilizers you had bought thoroughly. a) Urea d)Complex fertilizers b)Potash c) Super phosphate e)20-20-0

2) According to customers describe the named urea brands? a) d) b) e) c)

3) Are you ever used Nagarjuna Urea? a)yes b)no

4) How can you known about the present urea brand? a)other farmers c)dealers e) mobile advertisement 5) How long for you had used the admired urea brand? a) Since one year c) Since five years b) since two years d) above five years b)relatives d)company agents

6) Are you ever pointed out the difference in qualities and quantities of urea brands?

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MBA PROGRAMME a)Yes b)No

Nagarjuna Fertilizers Pvt.Ltd.

7)Do you always purchase urea from known dealers? a)Yes b)No

8) If you had used the Nagarjuna urea; your selection was right? a)Not at all acceptable. c)No opinion. e)Most acceptable. b)Not acceptable. d)Acceptable.

9) Suggest your opinion towards criteria for urea/company services? S.No. Criteria Suggestions Poor 1. 2. 3. 4. 5. 6. 7. 8 Size of pills Packing Quality of bag Accurate weight age Brand value Cost Supply Quality of urea Less Satisfied Good Excellent

10)Do you suggest other farmers to use Nagarjuna urea? a)Yes b)No

77

MBA PROGRAMME 11)Whom you contact for crops related issues? a)Other farmers c)Company agents b)dealers

Nagarjuna Fertilizers Pvt.Ltd.

e)Research centers

12)Do you read the magazines related to agriculture? a)Yes. b)No.

13) Whose suggestions you followed to purchase new urea brands? a)Farmers. c) Relatives. e) Advertisements. b) Family members. d) Dealers. f)Company agents.

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BIBILOGRAPHY
Reference Books: Marketing Management Research& Methodology NFCL profile & Group Profile

- Phillip Kotler. - C.R.Kothari. - Downloaded from Internet

Magazines: Business World Industry survey Report

Web Site: www.nagarjunafertilizers.com

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