MAJOR RESEARCH PROJECT

ON
A STUDY ON FINANCIAL ANALYSIS OF RAMA PHOSPHATE
PVT. LTD. COMAPANY WITH SPECIAL REFRENCE TO
INDORE BRANCH

Submitted to:-

(A Research Synopsis submitted as partial fulfillment for the

award of the Degree of Masters of Business Administration)

(2015-2017)

UNDER GUIDENCAE:
SUBMITTED BY:
Prof. NEHA CHOUHANN GANESH CHANDRA
JOSHI
MBA
3 Sem.
rd

1
 Roll
No.:52770040

DECLARATION

I hereby declare that the synopsis of my MRP entitles A Study on

Financial Analysis of Rama Phosphate Pvt. Ltd. Company with Special References
to Indore Branch Has been prepared under the valuable guidance
and supervision of Prof. Neha chouhan, faculty of MIST in partial
fulfillment for the course requirement of MBA from DAVV.

To the best of my knowledge and belief the information, facts,

figures that are presented in this report are actually based on my
own work.

Ganesh Chandra
Joshi
MBA 4th Sem.

2
 CERTIFICATE

This is to certify that Ganesh Chandra Joshi, student of MBA IV

Sem. program has here, with proposing to choose the major
research project titled A Study on Financial Analysis of Rama Phosphate
Pvt. Ltd. Company with Special References to Indore Branch and prepared
this report under my guidance and supervision.

Faculty Guide
Prof. Neha Chouhan
Faculty MIST Indore

3
 ACKNOWLEDGEMENT

Expression of feelings by words makes them less significant

when it comes to make statement of gratitude.
The most awaited moment of successful completion of an
endeavor is always a result of people involved explicitly therein
and it is impossible without the help and guidance of the people
around.
At the outset, I would take this opportunity to express my sincere
most gratitude towards Dr. MS Murthy, Director, Malwa Institute of
Science and Technology, Indore, for providing me the opportunity
to undertake and accomplish this project.
It gives me pleasure to express my most profound regards and
sense of great indebtedness and sincere gratitude to Prof .Neha
Chouhan Faculty Guide, Malwa Institute of Science and
Technology Indore, for his untiring help, valuable guidance and
kind supervision, which were the main stream to bring this work
to present shape.
I am also thankful to Dr.Mamta Vyas and all the respected
professors and my friends who helped me directly or indirectly in
giving shape to this report.

Ganesh Chandra Joshi

4
MBA IV Sem.

EXECUTIVE SUMMARY

With the increasing level of globalization of economies of all the countries, the markets
for all the goods and services have become hyper competitive. The relationship between
the values of local currencies in terms of foreign currencies and export competitiveness
of any country is very complex. In the short run, devaluation of local currency may have
the positive effect on exports but also makes the imports costly. This relationship will
become more complex if there is heavy dependence of imported resources in the exported
products. In the long run, though it is the brand and value addition which will have more
profound effect on export competitiveness rather than cost based strategies which are
easier to copy by other countries.
Now expectation and the level of satisfaction of farmers is an essential one for
withstanding a brand. The factors influencing the farmers for purchasing branded
fertilizer like quality, price, availability and advertisement.
The review of the theoretical literature on this topic indicates that there is no clear-cut
relationship between exchange rate volatility and trade flows. The presumption that trade
is adversely affected by exchange rate volatility depends on a number of specific
assumptions and does not necessarily hold in all cases, especially in a general equilibrium
setting where other variables change along with exchange rates. Today, consumer market
is flooded with various brands of fertilizers. Each branded fertilizers stands out distinctly
when grouped with other Branded fertilizer.

5
 CONTENTS

Title Page No.

Chapter 1: Introduction 8-24

1.1 Conceptual Framework 8-20
1.2 Review Of Literature 21-23

1.3 Rationale Of The Study 24

24
1.4 Objectives Of The Study
26-27
Chapter 2: Methodology 26
2.1 The Study 26
2.2 Tools For Data Collection 26

2.3 Tools For Data Analysis

29-32
Chapter 3 : Results And Interpretation
Company profile

34-38
Chapter 4 :Suggestions and Conclusion
34
4.1 Suggestions 35
4.2 Conclusion 36
4.3 Implications Of The Study 37

4.4 Limitations 6
38
4.5 Scope 38
Chapter 5: References 40-41
 Chapter 1
INTRODUCTION

INTRODUCTION

Rama Phosphate limited (RPL) , Incorporated on 3 rd September 1984 as a private limited

company was converted into a public limited company on 13 th January 1986, and
promoted by NRI investors Inc., republic of panama wholly owned by Ramsighani,the
promoters or Rama Group of companies . RPL is one of the leading fertilizer
manufacturing companies in India. It has three manufacturing plant located in Indore in
Madhya Pradesh, Pune in Maharashtra and Udaipur in Rajasthan. The companys
registered and administrative office is located in Mumbai.

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Rama has two business division, fertilizer and edible oil. The company manufactures
phosphate fertilizers such as single super phosphate (powder as well as granule), mixed
fertilizer such as NPK and chemicals such as sulphuric acid, oleum among other. The
companys total installed capacity is 1.81 lacs metric tons of single super phosphate and
1.83 lacs metric tons of sulphuric acid. The companys oil division has seed crushing
capacity of 1.65 lacs MT at an average of 600 TPD. RPL also has its own refinery plant
for refining crude soya oil of 33000 MT at 100 TPD. The products are marketed under
the brand name of Girnar and suryaphool which are the leading brands in
Maharashtra , Madhya Pradesh , and Gujarat , among others.
The company operates in two business segments, namely, fertilizer & chemicals, and
oil .the Companys revenue from fertilizer & chemicals segment decreased to 81.7% in
FY 2012 as compared to 86.5% in FY2011. On the other hand, RPLs revenue from oil
segment increased to 18.2% in FY 2012 from 13.5% in the previous year.
RPLs soya oil plant is strategically located in Madhya Pradesh, which is the major soya
cultivating state in the country. The fertilizer and chemical plant is well located in
Rajasthan from where the basic raw material rock phosphate is supplied to the entire
country. The company also has a railway siding facility at its Pune plant which helps in
the movement of raw materials and finished goods in bulk. RPL Intends to re launch its
defunct Sufla brand edible oil in the market.

India is one of the worlds largest and oldest agrarian economics. Agriculture is the
backbone of Indian economy. Agriculture contributes more than 26% of the national
income of our country. It earns about 14% of the Indias foreign exchange. It provides
employment opportunities more than 65% of the work force directly and indirectly.
The increasing number in population means higher demand for food. Threats in
agricultural production such as pests, loss of soil fertility and lack of nutrients may result
in low percentage of plants to harvest.
Fertilizer is an organic or inorganic material of natural or synthetic origin that is added to
a soil to supply one or more plant nutrients essential to the growth of plants. Fertilizer is

8
an organic or inorganic material of natural or synthetic origin that is added to a soil to
supply one or more plant nutrients essential to the growth of plants.
Now expectation and the level of satisfaction of farmers is an essential one for
withstanding a brand. The factors influencing the farmers for purchasing branded
fertilizer like quality, price, availability and advertisement.
Today, consumer market is flooded with various brands of fertilizers. Each branded
fertilizers stands out distinctly when grouped with other
Branded fertilizer. This study will take a Rama phosphate as the test company to analyze
farmer expectation towards branded fertilizer company and also analyze level of
satisfaction with their offer product.

Rama phosphate is one of the leading fertilizer manufacturing companies in India. It is

public limited company with stocks listed on stock exchange. Rama phosphates are in
existence for the last 21 year and one of its units at Pune is in existence for last 40 years
and pioneer in India. RP Is listed public limited company on the Bombay stock exchange,
National stock exchange and other stock exchanges in India.

The total installed capacity of the company is 4.63 lac MTs of single super phosphate and
1.83 lac MT of sulphuric Acid.
RPL is one of the largest manufactures in India. The products of RPL are marketed in
various states in the country under brand name of Girnar Suryaphool. Both the brands
are leading brands in the state of Maharashtra, M.P., Chhattisgarh, Rajasthan, Karnataka,
Gujarat etc.

The company oil division is situated next to its fertilizer division within the same
premises and has capacity of seed crushing of 165000 MT at an average of 600 TPD. The
company plant is fully integrated plant with all requisite facilities for storage of seeds in
silos, crushers expender, DT, Flakers, storage godown for de oiled cake and tanks for

9
storing crude oil. The main highlight of its oil plant is that it has been awarded ISO-
140001 from japan for environment protection in the factory premises.

Product range of the company include

Single super phosphate (powder as well as granule )

Mixed fertilizer namely NPK

Chemicals like sulphuric acid, oleum, etc.

Incorporated in 1984, Rama phosphates limited (RPL), a profit making company

belonging to the Ram Singhani group, Rama phosphate is engaged in phosphate fertilizer.
The company manufacturing 66000 TPA of single super phosphate (SSP) fertilizer and
33000 TPA of Sulphuric acid . During 1993 84, it doubled its manufacturing capacity.
Its capacity utilization has always been above 100% touching a high of 142% during
1989 90.
Krishi Rasayan, it loss - making subsidiary, was merged with the Indore plant.
Consequently, krishi Rasayan has become Rama krishi Rasayan, a division of Rama
phosphates. The subsidiary company was manufacturing oleum 23 and oleum 65 as
derivatives of sulphuric acid.

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The company has also ventured into manufacturing new chemicals like chlorosulphonic
acid which is used as an intermediate in the pharmaceutical industry. It has decided to set
up a single super phosphate plant at Udaipur, Rajasthan with a capacity of 400 TPA. It
already has SSP plants at Pune and Indore. The plant has started production.
The companys project for manufacturing single super phosphate (SSP) was
commissioned during 1996 97. The company has also expanded the manufacturing
facility for sulphuric acid at Indore as well as at Pune.
In the year 1997 98, Rama Krishi Rasayan was merged with the company.
During the year 1999, the company was able to increase capacity utilization of the
refinery to 83% as compared to 58% in the previous year .
The company was able to increase capacity utilization of refinery of 143.26% as
compared to 83% in the previous year.

Manufacturing facility

There are three branch of India

1. Indore division
2. Pune plant
3. Udaipur plant

Indore division :-

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 a. Fertilizer Division :-

The company has state of the art manufacturing facility for production of single
super phosphate in both Granule and powder form and sulphuric acid which is used
mainly for captive consumption and also to cater requirement of local customer in its
place of operations at Indore, Pune and Udaipur.

The companys Indore plant has installed capacity of 250000 MT of SSP and, 102000
MT of Sulphuric acid. The company has in house captive power generation facility
which is generated by exo thermic heat produced in the process of manufacturing
Sulphuric acid.

The turbo generator power generation is one of the most efficient power producing
system with all imported equipment from KKK , japan and Germany. The entire power
requirement of the units is fully met with generated power and thus there is no need for
the company to purchase power from outside agencies. In addition, company has stand by
diesel Generator system which can cater to the entire requirement of the plant at its peak
level.

The companys sulphuric acid plant is set up with DCDA technology and one of the
pioneers of sulphuric acid plant in M.P. with total capacity Grade acid .

a. Oil Division :-

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The companys oil division is situated next to its fertilizer division within the same
premises and has capacity of seed crushing of 165000 MT at an average of 600 TPD.
The companys plant is fully integrated plant with all requisite facilities for storage of
seeds in silos, crushers, expanders, DT, Flakers, storage godown for de oiled cake and
tanks for storing crude oil.

Parallel to crushing plant, company is also having its own refinery plant with alfa laval
technology for refining crude soya oil of 33000 MT at 100 TPD. The companys brand
sufla is one of the most popular brand in M.P. and other Northern parts of India and
had won several awards from SOPA.

The main highlight of our oil plant is that we have been awarded ISO 140001 from
japan for Environment protection in the factory premises .

Pune Plant

The companys Pune is one of the oldest SSP plant in India with existence of over
50 years, popularly known as Rama Krishi Rasayan. The plant is situated on the
outskirts of city of Pune in Maharashtra and is fully integrated plant with all
requisite facilities such as railway siding, sulphuric acid plant, oleum plant, SSP
plant, Granulation plant, mixed fertilizers plant, packing plants etc.

The total capacity of the plant is 165000 MT of SSP and 350 TPD of GSSP, 150
TPD of mixed fertilizers and 81600 MT of sulphuric acid & oleum.
The plant also has its own captive TG power generation system wherein
electricity is generated through exo thermic heat generated in the process of
production of sulphuric acid which partly caters to the requirement of entire plant.

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 In addition, company has its own DG set which can cater to the requirement of the
plant in case of emergency.
The availability of railway siding and strategic location of the plant has put the
company in most advantageous position as it can transport its basic raw material
rock phosphate from the mines located for away in Rajasthan as also imported
Rock phosphate from nearby ports of Mumbai and also transportation of its
finished goods by rail to strategic location situated in different parts of the country.
The company has recently launched micronutrients namely magnesium sulphate to
cater to the growing demand.

Udaipur plant

The unit is situated in Jhamar kothra which is on the head of rock phosphate
mines. Thus the availability of basic raw material, i.e. rock phosphate has made
this unit as most strategic unit of the company. The entire unit is fully integrated
with in house facilities such as rock grinding, finished goods storage including
granules as also stand by DG power sets.
The companys installed capacity is 181000 MT of SSP.

Competitor:-

SSP is one of the fertilizers which are in bulk demand in India and
There are certain few peer companies whose one of the products manufactured is SSP;
they are manufacturing other complex
Fertilizers along with manufacturing SSP. We face substantial competition for our
Domestic market. Our competition varies for our products and regions. Some of our
major competitors are:

Rama Phosphates Limited

Khaitan Chemicals & Fertilizers Limited

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 Shree Pushkar Chemicals & Fertilizers Limited

ECONOMIC AND INDUSTRY SCENARIO

The Indian fertilizer industry consists of two key segments Urea fertilizer and non-urea
(Phosphate) fertilizers, whilst Urea accounts for more than 50% of total fertilizer
consumption in the country and this industry is dominated by major players and co-operative
federations/ societies. Out of the other phosphate fertilizers viz., DAP and MOP is majorly
imported whilst SSP is produced exclusively in the country.
The overall demand for fertilizer products including Urea, DAP, MOP, NPKs and SSP has
increased by 3.03% to 64.475 million MT in 2015 as compared to 62.578 million MT in
F.Y.14. At the same time, during this F.Y.16, it was expected to increase further 3% at 66.37
million MT. It is further hoped that overall demand for fertilizer products are expected to
increase to 68.251 and 69.769 million MT respectively during F.Y.17 and F.Y.18.
With the increase in production of DAP and NP/NPK complex fertilizers in the country, the
share of SSP to total production and consumption has been going down in India over the
years. Nevertheless, India ranks third in global consumption of SSP with 9.7% of total P2O5
consumption, next to China 14.7% and the leader Brazil with 25.6%.
According to ICRA reports, Indias GDP expanded by 7.3% in F.Y. 2015 as compared to
6.9% in F.Y. 2014 though it was mildly lower than the advance estimate of 7.4% released by

15
the Central Statistical Office and its growth is expected to record a mild uptick to 7.4 7.6%
in 2015-16 and thus outpace the expansion by most countries with a comparable size.

Agriculture Scenario: For achieving desired growth, in general plants need sunlight,
water and minerals and there are only a few soils on earth which have a sufficient content and
availability of plant nutrients to achieve high yields over a longer period without fertilization.
Moreover, fertilizer also compensates the nutrient loss by harvest. Each year additional 80
million people need to be fed whilst available arable land per capita will decrease at the same
time. Thus, it is reported that 80% of future growth in crop production will come from yield
advancements driven by balanced use of fertilizers.

The production of total nutrients (N+P) increased marginally by 0.2% + 3.1% with 12.43 and
4.09 million MT during the period. The sharp increase of NP/NPK complex fertilizers by
about 12.7% contributed to higher production of fertilizer nutrients. All other major fertilizers
experienced negative growth during the year. At the same time, Import of Urea surged 11%
to 8.13 million MT in the first ten months of F.Y.16 as compared to 7.30 million MT in the
corresponding period of previous year whereas import of DAP edged higher by over 50% at
5.57 million MT as compared to 3.65 million MT in the corresponding previous year period
of 10 months.
In India, presently there are 57 large fertilizers plants producing Urea, DAP, Complex
fertilizer, Ammonium Sulphate and Calcium Ammonium Nitrate.
SSP is the oldest chemical fertilizer manufactured in India with multi-nutrient as it contains
Sulphur and Calcium as secondary nutrient with P2O5 as prime nutrient. It is more suited for
crops like oil seeds, pulses, horticulture, vegetables, sugarcane, paddy etc.

With regard to SSP, out of 99 units only 85 are in operation with installed capacity of 103.12
lac MT. Against this, production as reported by FAI up to Feb-16 stands at 35.52 lac MT.
Thus the industry is underperforming as against 38.66 lac MT achieved during the
corresponding period of (11 months) F.Y. 2015. This is mainly due to overall drought like
condition prevailed in length & width of the country during the season went by.

16
 Production of SSP increased significantly after changes in SSP policy during 2008-09 and
implementation of NBS policy from 2010-11. During 2009-10, 2010-11, 2011-12 the
production of SSP recorded high growth rate of 22%, 20%, 17%, respectively over the
previous years. Subsequently, the momentum of growth in production slowed down in 2012-
13 at 2.6% and turned negative in 2013-14 and 2014-15. Production of SSP at 4.175 million
tons in 2014-15 was marginally lower by 0.6% over the previous year. The negative growth
in SSP production was due to a variety of factors, including weak monsoon, liquidity
problem caused by delay in payment of subsidy.

Moreover, the cropping pattern in terms of acreage changes determine the demand prospects
of SSP. Subsequent to flatten paddy acreages and reduction in oilseeds and pulses acreages,
the consumption of SSP has been severely affected.

SSP Consumption: As per the FAI published data available till Feb.2016, it is reported that
approx. 36.41 lac MT SSP were dispatched. Out of this Western zone accounts for 59.27%
followed by east zone (15.18%), north zone (14.05%) and South zone (11.50%). The overall
major consuming states of SSP are given below:

RATIONALE OF THE STUDY

The scope of the study reveals the farmers brand preference towards fertilizers in
Indore district. The vital purpose of the study has been conducted to identify the
farmers attitude and evaluate their preferences towards brand and find out the
factors in which it decides the buying decisions regarding fertilizers. The outcome
of the study would suggest right solutions to the problems identified.
Scope of the study mainly highlights the company and market performance
analysis of fertilizer sector. The study is mainly concentrated on the performance
aspect of the sector. To analyze the performance of fertilizer sector, company

17
related ratios were calculated. The data has been collected for a period of 10 years,
i.e., from 1st April 2006 to 31st March 2016 This study is limited to the company
analysis of fertilizer sector.

LITRATURE OF REVIEW

Naga et al. (2013).conducted a study on effect of Foliar Application of

Micronutrients on Growth Parameters in Tomato ( Lycopersicon esculentum
Mill.).The treatments consisted of boron, zinc, molybdenum, copper, iron,
manganese and mixture. All the Micronutrients except manganese at 50 ppm were
applied at 100 ppm in three sprays at an interval of ten days starting from 30 days
after transplanting. All the treatments resulted in improvement of plant growth
characteristics viz. plant height, number of primary branches, compound leaves,
tender and mature fruits per plant in both the varieties out of which application of
micronutrients mixture showed the maximum effect. In tomato cv. Utkal Kumari,
maximum growth rate (85.7 %) was observed with application of zinc, followed
by application of micronutrients mixture (78.2 %) and boron (77.5 %). Tomato
cv. Utkal Raja, maximum increase in branches per plant was observed with the
application of manganese (148.7 %), followed by micronutrient combination
(144.1 %). In UtkalKumari, the fruit yield per plant ranged from 1.336 kg to1.867
and in Utkal.

18
 Meenakumari and Shekhar (2012) An experiment was conducted to determine
the effect of vermicompost and other fertilizers on growth, yield and fruit quality
of tomato in the field condition. The field trails were conducted using different
fertilizers having equal concentration of nutrients to determine their impact on
different growth parameters of tomato plants. Six types of experimental plots
were prepared whereT1 was kept as control and five others were treated by
different category of fertilizers (T2-Chemical fertilizers, T3-Farm Yard Manure
(FYM), T4-Vermicompost, T5 and T6- FYM supplemented with chemical
fertilizers and vermicompost supplemented with chemical fertilizer
respectively).The plots (T6) showed 73% better yield of fruits, and dry weight of
leaves, dry weight of fruits, number of branches and number of fruits per plant
than control, followed by T5.

Suge et al.(2011) reported on the effect of organic and inorganic sources of

fertilizer on growth, yield and fruit quality of eggplant (Solanum Melongena L).
The experiment aimed at evaluating the effect of combination between two levels
of the recommended mineral fertilizers(50% and 100% of research recommended
rates) with three types of organic manures on growth, fruit yield and quality of egg
plant(Solanum melongena L) var.black beauty. The experimental design was split
plot design with three replications, where two levels of mineral fertilizers
treatments (50% and 100%) were randomized in main plots while three types of
organic manures(FYM, Compost and Tithonia) and control. treatments were
randomized in the subplots. Results showed the Soil fertilized with 100%
recommended NPK combined with organic manures produced the superior growth
of plants and the highest amount of total fruit yields. The promising combination
was 100% of recommended NPK combined with farm yard manure produced the
best response.

19
 Patro et al. (2005) obtained highest total productivity of rice-wheat with Sesbania
green manure along with 180 kg N ha-1 applied to rice and 150 kg N ha-1 applied
to wheat in sequence. Similarly, Singh (2006) found that 25 or 50% of
recommended N through FYM, press mud and paddy straw and the rest of
recommended N through inorganic fertilizers gave significantly higher grain and
straw yields of both rice and wheat over 75% of recommended N through organic
sources and 25% recommended N through inorganic fertilizers.

Satheesh and Balasubramanian (2003) reported that application of FYM (10 t ha-
1) in combination with neem cake (3 t ha-1) has been found to be equally effective
for getting higher grain yield as compared to nitrogen application through
fertilizers. The significant increase in grain yield was supported by higher number
of effective tillers and 1000-grain weight. Yaduvanshi (2003) evaluated the effect
of the substitution of inorganic fertilizers with organic manures on yield of paddy
grains.

Halepyati (1991) reported that application of 50 per cent P2O5 of rice to Sesbania
rostrata and remaining 50 per cent to rice crop recorded 30 and 13 per cent higher
grain yield of rice when compared with application of all 100 per cent P2O5 to
rice and all 100 per cent P2O5 to Sesbania rostrata, respectively. Budhar et al.
(1991) recorded significantly higher grain yield of rice with the application of
green manures over control but observed no difference in productive tillers per
hill, panicles m-2, filled grains per panicle and 1000-grain weight.

Verma (1991) concluded that application of 10 t FYM ha-1 to paddy could save 50
per cent of chemical fertilizer requirement under Palampur conditions. Studies
conducted at Palampur by Sharma (1992) indicated that application of 10 t FYM
ha-1 alongwith 50 to 150 per cent recommended NPK to rice or wheat
significantly increased the grain and straw yields.
20
 Wang et al. (2006) in an experiment found that soil microbial biomass to carbon
added with organic fertilizers increased faster than added with inorganic fertilizer.
Also Yangchun et al. (2007) observed that the application of organic manures with
a reduced amount of commercial chemical fertilizer increased the content of soil
organic C, microbial biomass carbon compared to the treatment with inorganic
fertilizer alone. Masto (2006) reported that application of farmyard manure plus
NPK fertilizer significantly increased soil organic carbon and microbial biomass
compared to the treatment with NPK fertilizer alone.

Sharma (1992) reported that plant height, number of shoots and dry matter
accumulation of both rice and wheat increased consistently with increase in
fertilizer levels from 50 to 150 per cent of the recommended NPK in rice-wheat
cropping system at Palampur. Increase in fertilizer level from 50 to 100 per cent of
recommended NPK also resulted in significantly higher plant height and dry
matter accumulation in wheat (Kumar, 1996).

Tolanur and Badanur (2003) reported that available N, P and K contents increased
significantly with the application of various organic sources of nutrients in
combination with fertilizers over the fertilizers alone. Increase in organic carbon,
available N, P and K contents in soil by the application of FYM or green manure
has also been reported by various workers (Yaduvanshi, 2001; Bastia, 2002; Bisht
et al., 2002; Bajpai et al., 2002; Singh and Singh, 2003; Dutta and
Bandopadhyaya, 2003).

Arjan van Rooij has opined that a long-term perspective on R&D at the Dutch
chemical company DSM illuminates two crucial and interrelated challenges in the
management of R&D. On the one hand, companies must keep their research
focused on the technologies and markets they use and avoid research its sponsor
cannot profit from. On the other hand, companies must enable R&D to generate
21
 the options that can revitalize its current businesses and open up new ones. These
options may be risky and fall outside the framework of current markets and
technologies but at the same time promise high profits and ensure survival in
competitive, high-tech industries. To realize the full potential of R&D, companies
need to create an arena for research: a space where R&D can generate options and
where mutual commitment between R&D and the company can be nurtured.

Banu Suer in his paper, analysed the production structure of the UK manufacturing
industries by estimating a translog cost function for the period 1955-88. His aim
was to estimate technical change parametrically. In the cost function estimation of
productivity, it is statistically necessary to assume that all systematic explanatory
variables have been properly accounted for. Hence the econometric estimation
involves explicit assumptions about the error structure. There is no reason to
expect this error structure to be similar to the one assumed in the residual
derivation of total productivity growth. Several conclusions arise from his
estimation:

22
 Objective of the study

To analyses the farmers brand preference of fertilizer in

Indore district.

To find out the factors influencing the farmers to buy from

Rama Phosphate branded fertilizer company

To study the Growth of Fertilizer Industry in India .particularly in MP.

To know the sales turnover and profit performance of Rama Fertilizer

TO measure satisfaction level of farmers from Rama phosphate ltd.

company

23
 Chapter 2
Research of METHODOLOGY

24
 METHODOLOGY

Research design:
Quantitative methods will be used. Quantitative data will be applied to provide
descriptions of the outcomes.
Sampling Method: Non-Probability (Judgmental)
Sample Size: 500
Sampling: Samples will be collected from the Indore city.
Tools and Instruments: Questionnaire will be used to collect data.
Data collection:

Secondary Data Collection Method:

Journals, Articles, Newspaper, Magazines, Books, Internet and other sources have been
used as secondary data for the study.

Data analysis:
Pie Chart, Bar Graph, will be used to analyze interpret and present the data.

25
 Chapter 3
RESULT AND ANALYSIS

26
 ANALYSIS AND INTERPRETATION OF DATA

+
Rama phosphate ltd. Share holding

Category No. of share Percentage

Promoter 3220001 18.2

Foreign promoters 10049755 56.8

General public 258427 14.63

Others 1823390 10.31

Financial institute 6320 0.04

NBFC and Mutual fund 5320 0.03

27
 promoter
Foreign promoters
General public
Others
Financial institute
NBFC and Mutual fund

For analyzing the performance of fertilizer companies, financial ratios were

calculated. Financial ratios are one of the most common tools of managerial
decision making. It is the interpretation, rather than the calculation, that makes
financial ratios a useful tool for business managers. Ratios may serve as indicators,
clues, or red flags regarding net worth relationships between variables used to
measure the firm's performance in terms of profitability, asset utilization, liquidity,
leverage, or market valuation.

From the t test calculated the values found are between 1.833 at 10% significance
level. Some of the companies t-test values were not found. Therefore there is no
significance difference between performances of different companies. The average
of averages of the current ratio in the fertilizer industry is 2.029. In this context
current assets are more than the current liabilities in the fertilizer industries. From

28
the z test calculated, it is found that the values are between 1.65 at 10%
significance level. Therefore there is no significant difference between the
industries across the years for 10 years. The fertilizer industrys average current
ratio has decreased from 2.018 to 1.830. The current assets have been gradually
decreased.

Particulars Year ended Year ended Year ended Year ended

31.03.2016 31.03.2015 31.03.2014 31.03.2012
Revenue
Revenue from 2,100.87 1,759.81 1,507.11 1,305.75
Operations
Other Income 2.80 5.87 2.64 2.64
Total Revenue 2,103.67 1,765.67 1,509.75 1,312.61

Expenses
1,438.83 1,379.70 1,340.31 1,181.28
Cost of Material
Consumed/Traded
Other Expenses 223.65 185.77 119.00 64.86
Changes in 66.92 (80.89) (190.08) (62.10)
Inventories of FG
& WIP
Employee Benefit 79.73 48.02 37.58 27.54
Expenses
Depreciation and 46.44 40.53 33.88 19.11
Amortization
Finance Costs 06.20 102.80 96.23 36.08
Loss on Sale of
Assets 06.20 - - -
Total Expenses 1,961.83 1,675.94 1,436.92 1,266.76

Profit before Tax 1,961.83 89.74 72.82 72.82

29
Tax Expenses
Current Tax 28.27 18.00 16.00 9.92
MAT Credit
Entitlement 4.70 - -
availed
Deferred Tax 9.20 0.37 3.17 8.58
Tax of earlier (0.18)
years -
(MAT Credit (5.75) 0.13
Entitlement
recognized)

Profit for the 104.37 72.42 53.53 27.53

period

Discussion on Results of Operations for last 3 financial years

The following discussion on the financial operations and performance should be

read in conjunction with the audited financial results of the company for the FY
2016, 2015, 2014 and 2013 respectively.

30
 0 20 40 60 80 100 120

3 year

profit
2

2011 2012 2013 2014 2015 2016 2017

Equity statistics
Current market price RS. 45.2
52 Week high /low RS. 48.0/17.3
Market capitalization RS. Crores 80.0
Free float RS. Crores 20.9
Dividend yield % 0.0
One year Regression Time 0.3
beta
31
 BSE Volumes trend Avg. = 5.15 thousand

90

80

70

60

50
Close
40

30

20

10

0
42377 42437 42498 42559 42621 42682 42743

32
 INCOME STATEMENT

Income RPL CFCL KCFL BATL

statement

Total income 76.24 1980.64 77.92 90.66

Net sales 76.24 1908.34 77.34 90.64
EBITDA 5.26 243.96 10.36 6.94
Ordinary 1.62 140.66 .70 2.51
PAT
Adjusted PAT 1.62 140.66 .70 2.51
Per share
data (RS)
Diluted (EPS) .91 3.38 0.07 0.28
Growth (y-o-
y)
Growth in -18.58 -18.12 2.90 0.01
total income
Growth in -18.58 -18.73 3.44 0.03
net sales
Growth in 18.04 2.97 3.97 -6.04
EBITDA
Growth in 7.23 -1.24 89.67 -9.63
adjusted PAT
Growth in 7.23 -1.24 89.67 -9.63
EPS
Profitability
ratio
EBITDA 6.90 12.78 13.40 7.66
margin
Adjusted 2.12 7.10 0.90 2.76
PAT margin

33
Valuation
ration
( times)
Price/EPS 12.94 6.38 7.44 12.44

Result analysis
Rama phosphate ltd. (RPL) Total income decreased by 18.58% y-o-y to RS. 76.24
Crore in Q1FY17 AS Compare to total income of RS. 93.64 Crore in Q1FY16.
However, the EBITDA OR (RPL) Increased by 18.04% y-o-y RS. 5.26 Crore in
Q1FY17 as compare to EBITD or RS. 4.446 Crore in Q1FY16 . The company
reported a net increase to 7.23% .

1. LIQUID RATIO/QUICK RATIO From the t test calculated, it is found

that the values were between 1.833 at 10% significance level. Some of the
companies t-test values were not found. Therefore there is no significance
difference between performances of different companies. The average of
averages of the liquid ratio in the fertilizer industry is 1.329. From the z test
calculated, it is found that all the values are between 1.65 at 10%
significance level. Therefore there is no significance difference between the
industries across the years for 10 years. The average liquid ratio here has
been in same level. Therefore the liquidity of assets and liability is in the
same level.

2. INVENTORY TURNOVER RATIO From the t test calculated, it is

found that the values were between 1.833 at 10% significance level. Some
of the companies t- test values were not found. Therefore there is no
significance difference between performances of different companies. The
average of averages of the inventory turnover ratio in the fertilizer industry

34
 is 6.310. From the z test calculated, it is found that all the values are between
1.65 at 10% significance level. Therefore there is no significance difference
between the industries across the years for 10 year. The three years z test
values are 1. There is an increase in the average turnover ratio from 4.175 to
7.519 which indicates that there is high turnover.

3. DEBTORS TURNOVER RATIO From the t test calculated the values

found were between 1.833 at 10% significance level. Some of the
companies t test values were not found. Therefore there is no significance
difference between performances of different companies. The average of
averages of the Debtors turnover ratio in the fertilizer industry is 8.931.
From the z- test calculated it is found that all the values are between 1.65
at 10% significance level. Therefore there is no significance difference
between the industries across the years for 10 years. The average here has
increased from 7.966 to 11.564. This indicates that the firms in the fertilizer
industry in India have efficient management of debtors or the debtors are
more liquid.

4. RETURN ON EQUITY From the t test calculated, the values found were
between 1.833 at 10% significance level. Some of the companies t-test
values were not found. Therefore there is no significance difference
between performances of different companies. The average of averages of
the return on equity ratio in the fertilizer industry is 268.774. Zuari
industries Ltd have the highest value that is 1. From the z test calculated we
can see that all the values are between 1.65 at 10% significance level.
Therefore there is no significance difference between the industries across
the years for 10 years. The average here for the 2 years is negative. Here

35
 most of the years z value is 1. The averages of the return on equity in the
table show that there has been a huge variation from year to year on the
share holders returns.

5. GROSS PROFIT RATIO From the t test calculated we can see that all the
values are between 1.833 at 10% significance level. Therefore there is no
significance difference between performances of different companies. The
average here is negative, that is -112.75633. This indicates there is gross
loss. But still some of the companies such as Rewati minerals and
chemicals ltd, Aries agro ltd, Karnataka compost Devp. Corp. ltd, etc have
high gross profit ratio. This shows that some of the firms with in the
industries are performing well. From the z test calculated, we can see that
all the values are between 1.65 at 10% significance level. Therefore there
is no significance difference between the industries across the years for 10
years. The average here for the most of the years is negative value. Most of
the years there is no z values.

6. NET PROFIT RATIO From the t test calculated, we can see that all the
values are between 1.833 at 10% significance level. Therefore there is no
significance difference between performances of different companies. The
average here is negative that is -212.929. This indicates there is net loss.
From the z test calculated, we can see that all the values are between 1.65
at 10% significance level. Therefore there is no significance difference
between the industries across the years for 10 years. The average here for
the most of the years is negative values. Most of the years there is no z
values.

36
7.EARNINGS PER SHARE (EPS) From the t test calculated, we can see
that all the difference between performances of different companies. The
average of average of EPS is 5.077. From the z test calculated, we can see
that all the values are between 1.65 at 10% significance level. Therefore
there is no significance difference between the industries across the years for
10 years. There is no huge variation in the average EPS.

8. DIVIDEND PER SHARE (DPS) From the t test calculated, we can see
that all the values are between 1.833 at 10% significance level. Therefore
there is no significance difference between performances of different
companies. The average of average is 2.296. Here the t value of all company
is 0.001. From the z test calculated, it is seen that all the values are between
1.65 at 10% significance level. Therefore there is no significance difference
between the industries across the years for 10 years. For two years the z
values are one. The companies have fluctuations in the dividend per share
due to companies earnings from year to year.

9. PRICE EARNINGS RATIO From the t test calculated, it is found that

all the values are between 1.833 at 10% significance level. Therefore there
is no significance difference between performances of different companies.
Some of the companies P/E ratio is found to be 0.The average of average is
176.053. From the z test calculated, it is found that all the values are
between 1.65 at 10% significance level. Therefore there is no significance
difference between the industries across the years for 10 years. The P/E ratio
has gradually decreased from 776.785 to 294.537. High P/E ratios indicate
that the investors were paying more for each unit of net income, so the stock
was more expensive compared to one with lower P/E ratio.
37
10. DIVIDEND YIELD RATIO From the t test calculated, it is found that
all the values are between 1.833 at 10% significance level. Therefore there
is no significance difference between performances of different companies.
The average of average is 0.028. From the z test calculated, it is found that
all the values are between 1.65 at 10% significance level. Therefore there is
no significance difference between the industries across the years for 10
years. The dividend yield ratio has gradually decreased from 0.066 to 0.029.
The dividend paid and the market value is relatively low which results in
low dividend payout.

11. WORKING CAPITAL TO NET SALES From the t test calculated, it

is found that all the values are between 1.833 at 10% significance level.
Therefore there is no significance difference between performances of
different companies. The average of average is -1.937. There is negative
relationship between working capital and net sales. From the z test
calculated, it is found that all the values are between 1.65 at 10%
significance level. Therefore there is no significance difference between the
industries across the years for 10 years. The working capital to net sales ratio
has gradually decreased from 0.006 to -1.346. This shows that the firms in
fertilizer industry are not much efficient in managing the working capital
requirements.

12. WORKING CAPITAL TO SHARE HOLDERS EQUITY From the t

test calculated, it is found that all the values are between 1.833 at 10%
significance level. Therefore there is no significance difference between
performances of different companies. The average of average is -2.179.
38
There is negative relationship between working capital and shareholders
equity. From the z test calculated, it is found that all the values are between
1.65 at 10% significance level. Therefore there is no significance difference
between the industries across the years for 10 years. The working capital to
shareholders equity has gradually decreased from 0.805 to 0.626. This shows
that the firms in fertilizer industry are not much efficient in managing the
working capital requirements.

13. NET PROFIT TO NET WORTH From the t test calculated, it is found
that all the values are between 1.833 at 10% significance level. Therefore
there is no significance difference between performance of different
companies. The average of average is 267.737. Some companies like Shreeji
phosphate ltd and Shriniwas fertilizers ltd has high average values.
Therefore the net profit to net worth is high. From the z test calculated, it is
found that all the values are between 1.65 at 10% significance level.
Therefore there is no significance difference between the industries across
the years for 10 years. The net profit to net worth ratio has gradually
decreased from 19.078 to 17.960. The seven years z test value is 1

39
 Company profile

Rama Phosphate Limited (RPL), incorporated on 3rd September 1984 as a private

limited company was converted into a public limited company on 13th January
1986, and promoted by NRI Investors Inc., Republic of Panama, wholly owned by
Ramsinghani, the promoters of Rama Group of Companies. RPL is one of the
leading fertilizer manufacturing companies in
India. It has three manufacturing plants located in Indore in Madhya Pradesh, Pune
in Maharashtra, and Udaipur in Rajasthan. The company's registered and
administrative office is located in Mumbai. The top management of RPL consists

40
of Mr. D.J. Ramsinghani, as the Chairman & Managing Director, and Mr. J.K.
Parakh as the Chief Financial Officer, Compliance Officer and Company Secretary.
Mr. Ramsinghani has been the Managing Director of the Board since April 2005.
The companys Board consists of five directors three of whom are independent.
Mr. Deonath N. Singh is one of the non-executive independent directors. He
has over 45 years of experience in the field of Chemicals and Petrochemicals. He
has been associated with several companies such as, Synthetics and Chemicals
Ltd., Cyanides and Chemicals Co., Alkyl Amines Chemicals Ltd., among others.

Rama phosphate limited is a fertilizer manufacturing company. The companys

principal products / services include single super phosphate, sulphuric acid and
oleum, nitrogen, phosphorous, and potassium ( NPK), de oiled cake and soya oil.
It is in the business of single super phosphate ( SSP) manufacturing and also
industrial chemicals. It manufactures NPK mixed fertilizer of different grades,
which include Girnar and Soyphool. It manufactures value added fertilizer,
boronated single super phosphate from Udaipur unit. Its chemicals division is
involved in the Manufacturing of sulphuric acid and oleum is based at Indore and
Pune. Its companys soya seed crushing and refining unit division is operated
from Indore. The company also offers products, which include zincated single
super phosphate powder, linear alkyl benzene sulfonic acid ( LABSA) and
lecithin .

Rama phosphates limited are one of the leading fertilizer manufacturing companies
in India. It is a public limited company with stocks listed on stock exchange. Rama
phosphates are in existence for last 30 year and one of its units at Pune is in
existence for last 50 years and pioneer in India. RPL is listed public limited
company in Bombay stock exchange.
41
RPL has two manufacturing wings viz. single super phosphate (power as well as
granule), mixed fertilizers namely NPK of various grades, boronated single super
phosphate (powder and granule), micronutrients namely magnesium sulphuate and
chemicals like sulphuric acid, oleum etc.

The total installed capacity of the company is 5.63 lac MTs of single supper
phosphate and 1.83 lac MT of sulphuric acid. RPL is one of the largest
manufacturers in India. The products in India. The products of RPL are marketed
in various states in the country under brand name of girnar and suryaphool
both the brands are leading brands in the states of Maharashtra , M.P Chhattisgarh,
Rajasthan, Karnataka, Haryana , Gujarat, etc.

Rama phosphates is one of the leading fertilizer manufacturing companies in India.

It is a public limited company with stocks listed on stock exchanges. Rama
phosphates is in existence for the last 21 year and one of its units at Pune is in
existence for last 40 year and pioneer in India. RP is listed public limited company
on the Bombay stock exchange,
The total installed capacity of the company is 4.63 lac MTs of single super
phosphate and 1.83 lac MT of sulphuric acid.

RPL is one of the largest manufacturers in India. The products RPL are marketed in
various state in the country under brand name of Girnar and Suryaphool both
the brands are leading brands in the state of Maharashtra , M.P., Chhattisgarh,
Rajasthan, Karnataka, Haryana, Gujarat etc.

42
RPL has two business divisions, fertilizer and edible oil. The
Companymanufactures phosphatic fertilizers such as single super phosphate
(powder as well as granule), mixed fertilizers such as NPK and chemicals such as
sulphuric acid, oleum, among others. The company's total installed
capacity is 1.81 lacs metric tons of single super phosphate and 1.83 lacs metric
tons of sulphuric acid. The companys oil division has seed crushing capacity of
1.65 lacs MT at an average of 600 TPD. RPL also has its own refinery plant for
refining crude soya oil of 33,000 MT at 100 TPD. The products are marketed under
the brand name of "Girnar" and "Suryaphool"
which are the leading brands in Maharashtra, Madhya Pradesh, and
Gujarat, among others. The company operates in two business segments, namely,
Fertilizer &
Chemicals, and Oil. The company's revenue from Fertilizer & Chemicals segment
decreased to 81.7% in FY 2012 as compared to 86.5% in FY 2011. On the other
hand, RPLs revenue from Oil segment increased to 18.2% in FY 2012 from 13.5%
in the previous year. RPLs Soya Oil plant is strategically located in Madhya
Pradesh, which is the major soya cultivating state in the country. The fertilizer and
chemical plant is well located in Rajasthan from where the basic raw material Rock
Phosphate is supplied to the entire country. The company also has a
railway siding facility at its Pune plant which helps in the movement of raw
materials and finished goods in bulk. RPL intends to re-launch its defunct Sufla
brand edible oil in the market.

43
 Chapter 4
SUGGESTIONS AND CONCLUSIONS

44
 SCOPE OF STUDY

CONCLUSION

The fertilizer industry presents one of the most energy intensive sectors within the
Indian economy and is therefore of particular interest in the context of both local
and global environmental discussions. Increases in productivity through the
adoption of more efficient and cleaner technologies in the manufacturing sector
will be most effective in merging economic, environmental, and social
development objectives. A historical examination of productivity growth in Indias
industries embedded into a broader analysis of structural composition and policy
changes will help identify potential future development strategies that lead towards
a more sustainable development path. The study conducted based on the ratio
analysis, t-test and z-test which helped to analyze the performance of companies in
Indian Fertilizer Industry. Various kinds of profitability ratios suggested the
profitability positions of the companies over the years. Liquidity ratios are the best

45
measure of analyzing company liquidity position. According to the z-test and t-test
in the study it is clear that there is no significant difference between the
performances of companies across the fertilizers industry. It is also noted that the
there is insignificant difference between the industries over the period of time.
Financial performance suggests that all the companies in this sector have
performed equally well. Since fertilizer industry is one of the consistently growing
industries in India, its performance over the years is satisfactory.
The modern market is a highly competitive and transitional one. A company must
first decide what it can sell, how much it can sell and what approaches must be
used to entice the vary farmers. The farmers today do not accept any product,
which does not give them complete satisfaction, and so many products do not find
a place in the market. So it can be said that the modern market is consumer
oriented and only the consumers determine any product success or failure. One of
the products, which was very successful and had found a permanent place for itself
in the minds of the farmers, is the SPIC and IPL fertilizer. Today consumer market
with is flooded with various brands of SPIC and IPL. Each branded SPIC and IPL
fertilizer stands out distinctly when grouped with other branded fertilizer. Farmers
have specific preference or choice. Farmers analyze the price, quality,
advertisement etc. before they buy the product and hence, it is up to the different
brands of fertilizer manufacturers to concentrate on those aspects and workout
better strategy to attract more farmers for their brands. Hence, manufacturers
should feel the pulse of farmers. They should plan their production and distribution
activities as per the needs and convenient of the farmers

46
 Limitation of study

Every research is conducted under some constraints and this research is not an
exception limitations of this study are as follows;-
The share price data for all fertilizer companies were not found
For some fertilizer company financial annual data is not available for all the
10 years
In some cases financial annual data is available and there will be no
information regarding share prices and vice versa.
Averages were used to analyze the financial data, which makes lot of
assumptions, which may make the study far from reality.
Only one table showing z test and t test values for current ratio is given, due
to page

47
 constraints given by the editorial board. Similar calculations are done for the
other ratios
but the tables are not shown in the paper.

REFERENCES

48
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50
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Kothari C.R, (2005)

https://www.studydhaba.com/wp-

https://www.studydhaba.com

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http://www.india.com/

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http://www.business.mapsofindia.com/national-fertilizers/

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