1

SUMMER TRAINING REPORT

ON

MARKETING AND DISTRIBUTION STRATGIES

SUBMITTED IN PARTIAL FULFILLMENT FOR AWARD OF
DEGREE

In

MASTERS OF BUSINESS ADMINISTRATION

(2017-2019)

By

AKSHAY JASWAL
17MBA0215
MBA 3RD SEMESTER

MBA DEPARTMENT
GOVT.P.G. COLLEGE, UNA
(HIMACHAL PRADESH)
(OCTOBER 2018)
 CERTIFICATE OF ORIGINALITY

This is to certify that the project report titled "MARKETING AND DISTRIBUTION AND
COMSUMER BEHAVIOUR" Carried out by MR AKSHAY JASWAL S/O Sh. RAMESH
KUMAR JASWAL has been accomplished under my guidance and supervision as a duly
registered MBA student of the department of management, GOVT.P.G.COLLEGE UNA (H.P).
This project is being submitted by him in the partial fulfillment of the award of the MBA from
Govt. P.G. College UNA .His Project represents his original work and is worthy of consideration
for the award of degree ofMBA.

Coordinator: Internal Guide:

Prof. DEVENDRA ATLAS Ms. SHAMLI SHARMA
MBA Department (Assistant professor)
MBA Department

2
 CERTIFICATE FROM THE GUIDE

This is a bonafide work carried out by AKSHAY JASWAL University Roll No.
17MBA0215 a candidate for the MBA 3rd Semester examination of the MBA
Department, Govt. P.G College, UNA (Himachal Pradesh) under my
guidance and direction.

Dr. DEVENDER ATLAS

Coordinator (MBA)

Prof. SHAMLI SHARMA

Dept. of MBA

GPGC UNA (H.P)

3
 DECLARATION

I AKSHAY JASWAL student of M.B.A 3rd semester of GOVT. P.G. COLLEGE UNA
affiliated to Himachal Pradesh TechnicalUniversity hereby declare that the summer training
report titled "MARKETING AND DISTRIBUTIONSTRATEGIES” is a genuine
research work undertaken by me in “NATIONAL FERTILIZERS LTD. NAYA NANGAL” and
all the information, facts and finding furnished in this report is result of my hard work and are
original in nature and it has not been published anywhere earlier.

AKSHAY JASWAL
CLASS-MBA 3RD SEM
University Roll no 17MBA0215
SESSION - (2017-2019)

4
 ACKNOWLEDGEMENT

I extend my greatest thanks to all the people who helped me during the time of my Study. First of
all I express my sincerest debt of gratitude to the almighty GOD who always supports me in my
endeavors.
Then, I would like to thank to Mr T DHIMAN, Principal Govt. Post Graduate College UNA
who allowed me to join the training & Prof. DEVENDER ATLAS, Head of MBA Department
who extended his full co-operation and assistance.
I would like to appreciate the pain staking effort of MR ANIL KUMAR (MARKETING) AND
MR RAM KUMAR NFL, NANGAL UNIT for continuous guiding me at each and every stage
and providing the information related to my chosen Topic
On the home front, I want to thank all my family members who also have appreciated the hefty
time demands of this project and help me in numerous ways.

AKSHAY JASWAL
Uni. Roll. No.: 17MBA0215
Class-MBA 3rdSEM
(Student of Govt. P.G. College UNA)

5
 PREFACE

This research is major part of my summer training. Summer training is an integral part of the
M.B.A. course. It is to be complemented by practical knowledge for the management work in
organization.
MASTERS OF BUSINESS ADMINISTRATION is the course which combines both its theory
and application as its content of study in the field of management as a part of this curse, every
aspirant has to undergo at least six weeks. in the organization of repute
The training provides the opportunity to the students to them staff see the working conditions
under which they have to work in future. It gives them real feel to the corporate world. I got
opportunity at NFL LTD. In view of this, comprehensive study of MARKETING AND
DISTRIBUTION of NATIONAL FERTILIZERS LTD has been presented in this report. Efforts
have been made to present the vast & complicated aspect of the topic in clear, easy, lucid &
systematic manner.
The study is not possible without the guidance and support of all the team members of NFL.I
would, like to thank all the members of the company beside all others who have been helpful to
me for completing the study.

AKSHAY JASWAL
17MBA0215
2017-2019

6
 INDEX

Sr. no Topic Page no.

1 Introduction to Marketing and Distribution Strategies 1 -5

6-35
2 Introduction of company
37 - 41
3 RESEARCH METHODOLOGY
Need Of Study
Objective of the study
Research methodology

4 Data Analysis &Interpretation 42-55

5 Project
Findings 57

6 Suggestion& Conclusion 59

7 Limitation 61

Bibliography

Questionnaire (i-iii)

7
 ABSTRACT

The development of the fertilizers industry is of great importance to our National Company as;
the primary occupation of 70% of the Countrymen is agriculture and for a good yield, Fertilizer
plays an important role. The increase in the Fertilizer Industry shall lead to the development of
agriculture which will further lead to rise in per capita income of the people due to increased
yield and high quality. The efficiency of this industry would help the country to earn more of
foreign exchange by exporting more and high quality of grains and other agricultural products.
Fertilizer industry in our country has expanded significantly to fulfill Nation’s hopes and
aspirations for self-sufficiency in food grains by trotting path of planned industrialization. India
continues to be the third largest producer and consumer in the world.
NANGAL unit, which was taken up for this study has made enormous contribution of the
overall agricultural development in the region. Since its inception the factory has had
remarkable performance with positive finance results and sustained high level of production. The
major objective the project was to analyze working capital of the NFL, Nangal Unit.
It includes following also: -
 To study the working capital position of NFL.
 To study their cash, receivable and inventory management.
 To find out length of their working capital cycle.
 To analyze performance and position of the company.
Exploratory and descriptive research design the data is analyzed in tabular form and in
well and easy to understand manner. Both Primary and Secondary data has been used in
this study.
After analyzing the working capital of NFL, Nangal Unit, some important conclusions
are drawn about the working of this firm.
 The short-term financial position of the firm is not very satisfactory. The liquidity
position of the company is otherwise satisfactory.
 The company sells most of its products to the co-operative societies on cash basis. The
debt collection period occurs because of delay in transfer of funds.
 The Head Office raises all the equities and debts and the Head Office allocates the funds
to the different units. So the owner and outsider’s funds are not clearly known. And in
fact, the interest covered in the profit and loss account is what has been allocated by the
Head Office to this particular Unit.
 The cost of production of this company being high, it has been observed that the subsidy
enjoyed by the company is very high. The company gets advantage of the subsidy from
the Govt. of India.
 The company should follow a strict policy for depreciation, as depreciation charged by
this company is in a very lump sum amount.

8
CHAPTER 1
INTRODUCTION

9
 INTRODUCTION

MARKETING AND DISTRIBUTION STRATGIES

Marketing strategy is a business's overall game plan for reaching people and turning them into
customers of the product or service in the business

DEFINITION-
Marketing strategy is a long term, forward-looking approach to planning with fundamental goal
achieving a sustainable competitive advantages.

CONSUMER BEHAVIOUR
Consumer behavior is the study of how individual customers, groups or organizations select,
buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the
actions of the consumers in the marketplace and the underlying motives for those actions.

MARKETING NETWORK

The complete farmer satisfaction through best services in the drawing force if NFL marketing
strategy .The company has expanded its programmer from improving the crop productivity in
farm level to overall development of the farmer community
To provide to the farmers high quality products in right time,
NFL has the extensive and integrated marketing network.

10
 DETAILS OF MARKETING PROGRAMMES

The Company undertook various Agriculture extension activities during the year. Krishi melas,
exhibitions, Crop Seminars, Farmers' & Dealers' Training Programs and study tours were
organized to disseminate information regarding improved farm technology and establish direct
communication with the farmers as also to educate the farmers on the balanced use of fertilizer
and its timely application besides providing guidance on pesticides and fungicides. Under
orientation programs for dealers/retailers and farmers on balanced fertilization to optimize crop
productivity, a total of 2045 dealers/retailers and 5351 farmers were covered during the year. The
Company undertook 409 block and frontline demonstrations and 182 R&D trials on different
crops in different areas. During the year, 17520 farmers were trained and 59,970 soil samples
were tested, and analyzed. The Company participated in 42 Krishi Melas and Exhibitions.
During the year, 15 'Krishi Sewa Kendras' were set-up and 27 solar lights distributed. Company
is establishing a Soil Testing Laboratory at Balasore, Odisha at a cost of ` 70 lakhs under the
National Project on Soil Health and Fertility of Govt. of India. The Company has 4 mobile and 5
static Soil Testing Laboratories. The Laboratories are used for Soil Testing and analysis to make
balanced use of fertilizers by the farming community.

MARKETING STRATEGIES
1- Sale of other fertilizers the present market is very competitive and in view of the globalization
scenario and to exploit the opportunities in the Nutrient Based Subsidy (NBS) regime, a
dedicated team has been formed. Company intends to make use of New Fertilizer Policy by
entering into customized fertilizers. Company has been planning for imports of fertilizers like
MOP; DAP for trading through its distribution network.
Accordingly, contracts are being planned for import of other fertilizers like DAP, Complex
Fertilizers. Company is also v exploring to add Single Super Phosphate fertilizer in its product
range. Bio-fertilizers Company has been marketing special fungus based Bio-fertilizer
'Mycorrhiza' under the brand name of "KisanMycorrhiza", which increases the root growth and
improves soil structures to v provide vital nutrition to the plant.
2 Seeds Company has been producing foundation and certified seeds in a pilot projects at
selected farmer fields in adopted villages, which can pave the way for seed production on a
commercial scale. Company has already initiated action to set up its own Seed Processing Plant
at Indore to provide good quality seed of various High Yielding Variety (HYV) crops under its
own brand. Company has also taken up Seeds Multiplication Programs for Paddy and Soya bean

11
breeder/foundation seeds on agricultural land and has entered into an agreement with State
Farms Corporation of India Limited (SFCI) for supply of certified seeds i.e. Paddy, Hybrid
Paddy, Soyabean during Kharif. Company has also v entered into an agreement with Hindustan
Insecticides Limited for trading of pesticides.

The marketing strategies of many organizations can be modified by simply understanding issues
such as:
•The psychologies of how consumers think, feel, reason, and select between different options of
brands and products.
•The psychology of how the consumer is influenced by his or her environment which include the
culture, media to which the individual is exposed, family etc.
•The behaviour of consumers while shopping or making other marketing decisions.
•Restrictions in consumer knowledge or information processing abilities have the ability to
influence decisions and therefore the marketing result.
•How consumers’ motivation and decision policies change with different products that decision

SELECTION OF DISTRIBUTION CHANNEL

Selection of the middleman begins with knowledge of ultimate consumers his needs and desires
for distribution channel .the number of middleman employed will be determined by the
consumer convenience and economic of exclusive selective or exclusive distribution as
combination of these parts. the decision is taken after careful analysis of product and other
relevant factors the company must resolve channels and bring the product profitability to the
market

MAIN STEPS IN SELECTIONOF DISTRIBUTION CHANNELS;

 Formulation of channel objectives .

 Identification of channels function.
 Analysis the product characteristics
 Development of alternative channel

12
CHAPTER 2
COMPANY INTRODUCTION

13
COMPANY INTRODUCTION

NATIONAL FERTILIZERS LIMITED NAYA NANGAL

(AN ISO 9001,14001& 18001 UNIT )

14
FERTILIZER INDUSTRY

Indian economy is an agriculturist economy. Agriculture production plays a very

important role in the prosperity of the country. As the limited and the production is increasing at
a tremendous rate, it is very necessary to increase production and only way to increase the
production is to do intensive cultivation with the use of chemical fertilizers.
The development of the fertilizer industry is of great importance to our National economy
as; the primary occupation of 70% of the Countrymen is agriculture. And for a good yield,
Fertilizer play, an important role. The increase in the Fertilizer industry shall lead to the
development of agriculture which will further lead to rise in per capital income of the people due
to increased yield and high quality. The efficiency of this industry would help the country to earn
more of foreign exchange by exporting more and high quality of grains and the agricultural
products.Fertilizer industry in our country has expanded significance to fulfill Nation’s hopes
and aspirations for self-efficiency in food grains. The fertilizer industry has played a key role in
rushing an era of plenty of food grains by translating into realty “Green Revolution” in the
country from an utterly unsatisfactory situation prevailing on the food grains font India continues
to be the third largest producer and consumer of in the world. Urea production in the country for
the year 2017-2018 was 109.68 lakh tones of Nitrogen as Compare to 107.45 lakhs tones in the
previous year. The domestic production of urea is currently sufficient to meet its annual demand
in the country. At present there are 63 large size fertilizer units in the country manufacturing a
wide range of nitrogenous and phosphoric/complex fertilizer of these, 38 units produce urea

NFL National Fertilizers Ltd.

RCF NATIONAL Chemicals fertilizers ltd.
IFFCO Indian farmers Fertilizers Co-Operative Ltd.
KRIBHCO KRISHANIC BHARTI Co–Op. Ltd.
GNVFC Gujarat Narmada Valley Fertilizers Company Ltd.
IGFCC Info Gulf fertilizers & Chemicals Ltd.
CFCL Chambal fertilizers & chemical Ltd.
TCL Tata Chemical Ltd.
OCF OSWAL Chemical and Fertilizer Ltd.

15
HISTORY OF NATIONAL FERTILIZER LIMITED

HISTORY OF THE COMPANY

In 1954 the Govt. of India appointed a committee called “The fertilizer production
Committee” under the chairmanship of Sh. B.C MUKHRJEE (FCI Ex. Chairman & Managing
Director) to suggest ways for the expansion of fertilizer production in India. The Govt. however
simultaneously issued a directive to the committee that one of the proposed fertilizer units should
be located near the Bhakra Dam. The main consideration for setting up a plant in Nangal
(PUNJAB) was that there would not be enough demand of electricity from Bhakra Dam. Heavy
water a by-product in this process could be produced for the use in these atomic reactors as
moderator. On February 17, 1956 the proposed Nangal factory was incorporated under the
name of Nangal Fertilizers & Chemical Ltd. (NFCL) with its registered at Nangal having an
authorized capital of Rs. 31 crores. The FCL Ltd. was incorporated on Jan 1st, 1961 by
proclamation of the fertilizers & chemicals companies’ amalgamation order 1960, having a
authorized capital of 75 crores. With the re-organization fertilizers co-operation of India with
effect from 1st April 1978, the Nangal unit of Fertilizer Corporation of India came under the NFL
fold. The company expanded its installed capacity in 1984 by installing and commissioning of its
Vijaipur gas based Plant in Madhya Pradesh.

16
 COMPANY PROFILE

National Fertilizers Limited (N.F.L) was registered on 23.08.1974 with an authorized capital of
500 crores. NFL set up two-fertilizer plant in Bathinda (Punjab) and Panipat (Haryana), NFL has
emerged as an industrial giant in the fertilizer sector. Over the years company has expanded into
a multi unit company with four manufacturing units with varied technology. Three of these units
are strategically located in the high consumption areas of Punjab & Haryana. The company has
an installed capacity of 35.49 lack MT of Nitrogenous fertilizers.

NFL, Corporate Office, Noida

The plants at NANGAL, BATHINDA and PANIPAT are based on partial oxidation of
fuel oil/high petroleum stock and matching Urea capacity of 1550 MT per day at Bathinda and
Panipat s 1450 MT per day Urea at NANGAL while the rest is being converted to Industrial
Products as per demand.

The VijaipurPlant was a landmark achievement in project management in India. The plant was
completed well within time and approved project cost. In recognition of this achievement, the
project was awarded the First Prize on Excellence in Project Management by Govt.

17
ofindiaSubsequently the Vijaipur plant doubled its capacity to 14.52 lakh MTs by
commissioning Vijaipur Expansion Unit i.e. Vijaipur-II in 1997. The annual capacity was
subsequently re-rated w.e.f. 1.4.2000 from 7.26 lakh MT of Urea to 8.64 lakh MT for Vijaipur-I
&Vijaipur-II Plants each. Three of the Units Three of the Units are strategically located in the
high consumption areas of Punjab and Haryana. The Company has an installed capacity of 34
lakh MT of Urea. The company produced 35 lakh tonnes of Urea and recorded an annual sales
turnover of Rs.5127 crores during 2011-2012 NFL, a profitable public sector undertaking
operates under the administrative control of Department of Fertilizers in the Ministry of
Chemicals & Fertilizers The Company’s strength lies in its sizeable presence, skilled manpower,
Marketing and strong distribution network nationwide. The Company has also developed Neem
coated Urea which on demonstration has shown improved results in terms of increase in yield by
4-7% and environment friendly. The Company is future focusing its thrust to widen the
marketing operations of Neem coated Urea. NFL over the years has developed a team of
dedicated professionals in the areas of production, maintenance, project management, safety and
environment control. These professionals are sought after in the Industry both in India & abroad
for their Specialized Services. NFL is known in the industry for its work culture, value added
human resources, Quality Management, Safety, Environment, Concern for Ecology and its
commitment to social upliftment and to ensure their compliance, All NFL plants are certified
and being maintained under ISO-9001 (2000), ISO-14001 & OSHAS-18001 by conforming to
International Quality, Environmental & Occupational Safety & Hazards standards. With the
certification of Corporate Office/Marketing operations under ISO-9001: 2000.
Urea is an essential commodity under the Essential Commodities Act, 1955. NFL schedule-A &
Mini Ratna category-1 Company, is a market leader in the fertilizer industry in India with 16.1%
share in Urea production . The Company has an installed capacity of 35.49 lakhs MT
nitrogenous fertilizers and has recorded an annual sales turnover of Rs. 17.55 lakhs during 2017-
2018.
Registered office
Scope Complex, core-111, 7 – Institutional area, Lodi road,
New Delhi- 110003
Corporate office
A-11, sector –24, District Gautam Budh Nagar,

18
Noida (U.P) 201301

SALIENT FEATURES OF THE COMPANY

 The company has an excellent track record and high profits, with highly motivated and
dedicated workers and officers – no industrial relation problem.
 N.F.L. was given the “Mini Ratna Category-I” by the Govt. of India in 1998 based on the
company’s overall performance during the preceding years..
 Recently NFL has been “A” in Public Sector Undertaking because of its constant good
performance.
 National Fertilizers Limited, Ranbaxy Laboratories Limited and Indo
 NFL has signed memorandum of association for 2009-10 with the Department of
Fertilizers.
 NFL is the first company in Public Sector having the certification of ISO-9002, ISO-9001
and ISO-14001.
 NFL has linked agreement on 26th February, 2009 with Gas Authority of India Ltd. For
transportation & supply of Natural Gas to NFL’s Panipat, Bathinda and Nangal Plants.
 Nangal Unit of NFL has received “ICWAI” National Award for Excellence in Cost
Management 2008” from Institute of Cost and Works Accountants of India in
appreciation of the efforts in Cost management.

CORPORATE OBJECTIVES:
NFL is an instrument of society. It has been to serve the needs of the people within the
scope of its basic objectives. To achieve this, NFL must:

 Select capable people and improve their knowledge and skills on organized basis.
 Lay down integrated objectives, define individual goals and maintain an atmosphere
conducive to achievement of these goals.

19
 BASIC OBJECTIVES:
In terms of Memorandum of Association, NFL was set up to manufacture and market
chemical fertilizers, chemicals and by products as well as to provide the allied services. In order
to achieve and maintain a leading position in the production and marketing of fertilizers, the
following Micro Objectives have been identified:

MICRO OBJECTIVES:

1. PRODUCTIVITY -
To achieve the best possible levels of production and economy in the use of inputs while
ensuring safety and proper maintenance of plant and machinery and pollution control. More
specifically:-
(a) To strive to raise capacity utilization. And
(b) To improve upon consumption norms consistently.

2. RESEARCH&DEVELOPMENT
To carry out R&D activities for:-
(a) Increasing plant availability.
(b) Saving use of energy in different forms.
(c) Better recovery of saleable products.

3. PROFITABILITY:
To maintain the assets, men and material in most effective and efficient manner ensuring (a)
reasonable return on investment commensurate with the principles laid down by the Govt. from
time to time, and (b) generation of increasing internal resources.

20
4. MARKETING & CONSUMER SERVICES:
(a) To provide to the farmers high quality products in right time and in adequate
quantities and with a package of modern agricultural practices, at the same time maintaining
reputation for fair business practices.
(b) To future intensify promotional efforts for increased use of fertilizers and to
maximize distribution of Company’s products within the areas covered by the company,
consistent with Government Policy.
5. GROWTH

To achieve reasonable and consistent growth in the business of manufacture and

marketing of fertilizers and compatible with needs of the market.

21
PLANT LOCATION

22
 LOCATION

Chart shows the strategically location of NFL plants in the country.

National Fertilizers Limited,

Vijaipur, Distt. Guna,
Madhya Pradesh-473111.
Email :cc@nfl.co.in
Fax : 07544 - 273089,
273109
Tel. : 91- 7544 - 273101,
273090
.
Vijaipur Plant

National Fertilizers Limited,

Gohana Road,
Panipat,
Haryana-132106.
Email: nflpanipat@nfl.co.in
Fax : 0180- 2652515
Tel. : 0180- 2652481 to
485, &
0180- 2655570

Panipat Plant

23
 National Fertilizers Limited,
Sibian Road,
Bathinda,
Punjab-151003.
Email : nfladm@nfl.co.in
Fax : 0164- 2270463;
0164- 2271270
Tel. : 0164-
2270220/2271200

.
Bathinda Plant

National Fertilizers Limited,

NayaNangal,
Distt. Ropar,
Punjab-140126.
Email : nangal@nfl.co.in
Fax : 0187-220541
Tel. : 0187-220543

.
Nangal Expansion Plant

24
PLANTS AND INSTALLED CAPACITY

PLANTS INSTALLED
CAPACITY (MT)
NANGAL 478500
BATHINDA 511500
PANIPAT 511500
VIJAIPUR – I 864600
VIJAIPUR – II 864600

25
PRODUCTS OF N.F.L

KISAN UREA AND KISAN KHAD

Kisan Urea &Kisankhad NFL’s popular
brands are sold over a large marketing territory spanning the length and breadth
of the country. Kisan Urea is an essential commodit y under the Essential
Commodities Act, 1955. The Department of Fertilizer plans and monitors
production, import and distribution of fertilizer and management of subsidy for
indigenous and imported fertilizers in the country. KisanKhad is produced at the
Nangal Unit in Punjab, NFL’s. KisanKhad is Calcium Ammonia Nitrate (CAN)
Nitrogenous fertilizer, contains 25% nitrogen, half of which is Ammonical form
and half in Nitrate form. Availabilit y of nitrogen in two forms in kisankhad help
crops to meet its initial and long -term Nitro gen requirements and is unique
feature. Here below

NFL DEVELOPED NEEM-COATED UREA

In developing a process for manufacture of Neem-Coated Urea on commercial scale. The
company is focusing its thrust to widen the marketing operations of Neem coated Urea.
NFL has made efforts to harness unique properties of Neem is regulating release of Nitrogen to
crops when mixed into soil and making available to farmers a more efficient Nitrogenous
fertilizers in the form of its Neem-coated Urea primarily based upon research work conducted by
scientists of Indian Agriculture Research Institute, New Delhi. After carrying out extensive

26
laboratory as well as field studies NFL has found out that Neem-Coated urea produced with a
thin film of Neem oil-water emulsion of specified concentration has resulted in enhanced shelf
life. Reducing caking of material during storage and increased nitrogen availability to corps at
the time of their growth and hence significantly contributing towards better crops yield.

INDUSTRIAL PRODUCTS

Industrial products are certain by products, which are produced during manufacturing of
fertilizers. NFL manufactures and markets the following industrial products: -
Sr. Product Chemical Formula Used for/industry
No.

1 Methanol Formaldehyde
(CH3OH) Automotive antifreeze
Chemical Synthesis
Aviation Fuel
Rocket Fuel
Dehydrator for natural Gas
2 Nitric Acid Dilute Organic Synthesis
(HNO3) Photo engraving
Medicine
Preparation of Nitro
Refining of Silver
3 Ammonium Nitrate Explosive, Pyrotechnics
(NH4NO3) Nitrous Oxide
Absorbent for Nitrogen Oxides
Ingredient for freezing mixture
Oxidizers in solid rocket properties
Nutrient for Antibiotics
Catalyst

27
4 Sulphur (S) Sulphuric Acid
Sugar Industry
Rubber &Tyre Industry

5 Industrial Grade Urea Animal Feed

(NH2CONH2) Synthetic resins
Textile Finishes
Melamine resins
Paints and Dyes
Drugs and Pharmaceuticals
6 Liquid Oxygen (O2) Steel Manufacturing
Copper Manufacturing
Welding and Cutting
Medical purposes

7 Liquid Nitrogen (N2) Animal Husbandry for Semen

Preservation
Electronic Industry

8 Carbon Slurry(C) Rubber Industry

Ink making industry

9 Carbon dioxide Gas Aerated Water

(CO2) Dry Ice
10 Anhydrous Ammonia Nitric Acid production
(NH3) Urea production
Refrigerant Solvent
Yeast Nutrient
Rocket Fuel

28
 Reducing Agent for Ores
11 Sodium Nitrite Organic Synthesis
(NaNO2) Rubber additives
Chemical reagent
Pickling meat
Dyeing and printing of fabrics
Rust proofing and medicines etc.

12 Sodium Nitrate Oxidizing agent

(NaNO3) Oxidizer in solid rocket propellants
Fertilizers
Glass Manufacturing
Chemical reagent
Dynamites/Matches
Military Explosives
Refrigerant/Medicines

13 Liquid Argon (Ar) Arc Welding

Plasma cutting
Lamp industries
Aircraft and Missile industry
Copper refining
Metal refining

14 Liquid CO2 Aerated Water

Dry Ice

29
30
NANGAL UNIT

NANGAL UNITS -as you cross the Satluj bridge west end, you start breathing a different air – an
air of hope. Your eyes certainly can’t miss a prosperous township on the right and a gigantic
fertilizer factory of National Fertilizer Limited on the left, which are the sign of progress that
India has achieved since independence. With coming up of Bhakra Dam and surplus power
available from the project, it was decided by the government of India to set up a fertilizer factory
at Naya Nangal, which went into production in 1961. Subsequently in 1978, went on stream,
and the Ammonia Plant based on fuel oil gasification, which added urea – a nitrogenous fertilizer
with 46% nitrogen to its range of production. In 1984, Methanol plant with capacity of 50 MTPD
was added, which was later on raised to 67MTPD. In 1990, Electrolysis plant was replaced with
Front-end Hydrogen plant (NMP-1) based upon reforming of Naphtha for production of
Hydrogen thus reducing the electrical power consumption.
On February 17, 1956 the proposed Nangal Factory was incorporated under the name of “Nangal
Fertilizers and Chemicals limited” (NFCL) with its registered at Nangal having and authorized of
31 Cores. The name of changed to “Hindustan Chemicals and Fertilizers Limited”(HFCL) with
effect from July 15, 1959.
With the re-organization fertilizers co-operation of India with effect from 1st April 1978.The
Nangal Unit becomes a constituent unit of the National Fertilizers Limited, which has already
two units under it, located at Bathinda (PUNJAB) &Panipat (HARYANA). 4th plant of National
Fertilizers Limited, at Vijaipur (M.P.) was commissioned in 1987.

MISSION STATEMENT

“To produce targeted quantity of fertilizer efficiency and economically by optimum utilization of
resources with due regard to safety and production control”

31
FUTURE EXPANSION

To meet the challenges of the ensuing millennium, the goal of achieving a group turnover
of Rs. 10,000/- crores from diverse business and a net profit of Rs. 1200 crores has been
projected. Significant feature of this project would be towards optimum utilization of Ammonia
available within plants besides enhancement in Product Quality & Environment improvement.
As Revamp of Nangal Urea Plant has already started and planes are in the pipeline to revamp,
replace the existing fuel oil based plants with change in feedback to LNG. To retain the loyalty
of the customers and to add value to their brand, NFL has been planned to setup single window
outlets for the farmers to carry out one stop shopping for total input to the farmer.

CAPACITY UTILIZATION OF UREA OF NFL, NANGAL UNIT.

YEAR UREA CAPACITY

INSTALLED ACTUAL UTILIZATION
CAPACITY PRODUCTION IN % AGE
2008-09 478500 493500 103.13%
2009-10 478500 480000 100.31%
2010-11 478500 481500 100.63%
2011-12 478500 478500 100.00%
2012-13 478500 514416 107.51%

2017-2018 478500 474109 103.08%

The above table and chart indicates the capacity utilization of Urea. The Urea Plant is running on
103.13% capacity in 2008-09, 100.31% in 2009-10, 100.63% in 2010-11 which is due to the extra
production allocated by the Ministry. In 2012-13, 107.51%, and in 2017-2018 103 .08% . CAGR is
1% in 5 yrs and installed capacity remains same for 5 yrs.

32
 PRODUCTION OF UREA OF NFL, NANGAL UNIT

The above chart shows the actual production of urea during the period of study. Installed capacity
of Urea plant recognized by Ministry of Chemicals & fertilizers is 478500 MT..

33
 SWOT ANALYSIS OF NFL

STRENGTHS:
1. High capacity to produce.
2. Percentage of profits in industrial products is very high.
3. The company with an excellent track record of high profits.
4. The NFL plants are located in virgin market for some of the industrial products.
5. An easy starter more that 25 years experience in the fertilizer industries.
6. Highly situated amidst high fertilizer consumption areas in the state of Punjab,
Haryana and Madhya Pradesh.

WEAKNESSES:

1. Old and energy intensive fuel oil based Nangal, Panipat and Bathinda requiring high
maintenance.
2. High cost of production in fuel oil based plants.
3. High investments for revamp/replacement and changeover of feedstock from fuel oil/
LSHS to LNG.
4. Single nutrient product base.
5. Highly centralized system.
6. Lack of sufficient promotional and publicity activities.
7. Requirement is seasonal.

OPPORTUNITIES:
1 .Growth in fertilizers consumption in the eastern market of the country.
2. Marketing of Neem coated urea of large scale.

34
3. Marketing of seeds and pesticides.
4 Marketing of specialized services and association in joint venture in India/abroad

THREATS:

1. Decline in the consumption of nitrogenous fertilizers in predominant market areas.

2. Energy intensive i.e. fuel oil based could face closure due to new policy on fertilizer
unless technology modifications are implemented.
3. Dismantling of distribution system.
4. Availability of cheaper improved fertilizers

35
ORGANISATION STRUCTURE
Working is done under superior in stage of level to perform a specific data. As there is head
which operate the unit at higher level other than manager operate the working of the department
inside the unit .

MARKETING DIVISION AT NFL UNITS: -

36
Chapter 3

37
RESEARCH METHODOLOGY

Research methodology is a science of studying how research is to be carried out. Essentially,

the procedures by which researchers go about their work of describing, explaining and predicting
phenomena are called research methodology. A research method is a systematic plan for
conducting research. Sociologists draw on a variety of both qualitative and quantitative research
methods, including experiments, survey research, participant observation, and secondary data.
Quantitative methods aim to classify features, count them, and create statistical models to test
hypotheses and explain observations.

NEED OF STUDY

To study the marketing strategy of National fertilizers limited

1 To provide better fertilizers to farmers

2 To know about farmers needs and demands

3 To check market popularity of the product .

38
 OBJECTIVE OF THE STUDY

The main objective is to analyze the Marketing and Distribution strategy of

various industrial product of NFL unit .The other objectives of study are as
follows

1. To find out the marketing and distribution of fertilizers.

2. To study management customers relationship.

3. To assess the consumer’s consumption, pattern and perception.

4. To check the popularity of the products of the company.

5. To study about the working techniques in R&D department.

SCOPE OF STUDY

For the purpose of doing this project I had chosen the topic "MARKETING AND
DISTRIBUTION STRATEGY of NATIONAL FETILIZER LIMITED at NANGAL” as to
see a particular customer behavior while purchasing a particular brand of fertilizers. The reason
may be quality price etc. through this project I came to know about the different perception of
the sixty respondents what they need in particular brand of fertilizers or desire at the time of
procuring a bag of fertilizers.

The project will be help in understanding the requirements of the consumers’ area wise and also
helpful in rumors in market about the products. Such a study helps a company in farming an
excellent marketing strategy and to combat its competitors and increasing in network

39
 RESEARCH DESIGN

For this research study a descriptive research design was used to find marketing and distribution
of fertilizers and its common perception about product studies and the findings were described
in detail

The sample size is about 60 people nearby area.

TYPES OF SAMPLING

 NON-RANDOM SAMPLING
Non –probability sampling is that sampling procedure which does not afford any basis for
estimating the probability that each item in the population has of being included in the sample.
Non- probability sampling is also known by different name such as deliberate sampling,
purposive sampling and judgment sampling.

 JUDGEMENT SAMPLING
In judgment sampling the researcher’s judgment is used for selecting items, which he considers
as representative of the population. The researcher has used judgment sampling method for
selecting 60 respondents from different villages of HIMACHAL PRADESH Judgment sampling
used quite frequently in qualitative research when the desire happens to be, to develop
hypothesis rather than to generalize to large population

40
 DATA COLLECTION

DATA COLLECTION METHOD

 QUESTIONNARE METHOD
The researcher used a questionnaire, which was self developed so as to measure the different
marketing strategies and product development of the company. Questionnaire to be used must
be prepared very carefully so that it may prove to be effective in collecting the relevant
information.

 SAMPLING TECHNIQUE
The techniques which was used to collect the samples from the selected population
was judgmental basically people were farmers and agriculture related an ages more
than 17 years of age. Here few female were included in this technique.

UNIVERSE:
The area covered in order to conduct the market research for finding the information in villages
in Himachal Pradesh and Punjab .There are area with highest production of grains every year.

Primary data:
The data is collected as primary data. The market research is conducted and raw material is
collected through questionnaire, the various questions are asked from the respondents and then,
whatever the data collected, that is sorted out in SECONDARY DATA

Secondary data:

The supporting data is collected through various sources like internet sites and magazines as

 Nfl.com
 agriculture marketing
 Vani
 Krishi patrika
 Educational sites

41
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

DATA INTERPRETATION is an essential part of research in which data is collected on basis of
facts and statistics collected together for reference or analysis. Data in numerical format helps us
to draw conclusion by comparing the data. Interpretation is act of explaining and reframing of
your studies

DATA AND INTERPRETATION

1 Total number of respondent in this project?

 male
 female

INTERPRETATION: Male respondent is about 55 and female is 60

figure 1

42
 (2)Age of the Respondents

Valid Cumul
Frequency Percent Percent Percent

VBelow 25 years 13 21.7 21.7 21.7

a
l 25 to 40 years 17 28.3 28.3 50.0
i
40 to 60 years 17 28.3 28.3 78.3
d
above 60 years 13 21.7 21.7 100.0

Total 60 100.0 100.0

INTERPETATION : More than 20 year are present in data in figure 2

43
 (3)How many acres of fields are cultivated crop ?

Frequen Cumulative
cy Percent Valid Percent Percent

5 acres 22 36.7 36.7 36.7

10 acres 18 30.0 30.0 66.7

15 acres 12 20.0 20.0 86.7

20 & above 8 13.3 13.3 100.0

Total 60 100.0 100.0

figure 3

120

100

80
Frequency
60 Percent
Valid Percent
40
Cumulative Percent
20

0
5 acres 10 acres 15 acres 20 & Total
above

Interpretation

mainly area in 5acres is most cultivated about 36 % .

44
 (4)YEARLY INCOME OF THE RESPONDENTS

Cumulative
Frequency Percent Valid Percent Percent

Valid BELOW Rs.50000 10 16.7 16.7 16.7

Rs.50000-
21 35.0 35.0 51.7
Rs100000

Rs.100000-
19 31.7 31.7 83.3
Rs.200000

Above Rs.200000 10 16.7 16.7 100.0

Total 60 100.0 100.0

figure 4

Interpretation

This table shows the annual income of the farmers. This table shows 35% farmers have 50000 to
100000 income, 31% farmer have from100000 to 200000 income and 16% farmers have more
than 200000 Rs. Yearly income in 2017-2018.

45
 (5)DURATION OF PURCHASING

Valid
Percen Cumulative
Frequency Percent t Percent

Yearly 15 25.0 25.0 25.0

OPT Seasonal 35 58.3 58.3 83.3

Monthly 10 16.7 16.7 100.0

Total 60 100.0 100.0

figure 5

Interpretation

Farmers mostly purchase from NFL during seasonally and then doing purchase yearly.

46
 (6)DO YOU KNOW ABOUT THE NFL’S PRODUCTS

Valid Cumulative
Frequency Percent Percent Percent

Vali Yes 43 71.7 71.7 71.7

d
No 17 28.3 28.3 100.0

Tota
60 100.0 100.0
l

figure 6

Interpretation

71% farmer know about the NFL product and 39% farmers don’t not know about NFL products.

47
 (7)Level of knowledge regarding the product

Valid Cumulative
Frequency Percent Percent Percent

Vali Very good 21 35.0 35.0 35.0

d
Good 24 40.0 40.0 75.0

Low 15 25.0 25.0 100.0

Total 60 100.0 100.0

figure 7

Interpretation

This table shows the level of the knowledge of the farmers for the Urea. 36% people have the
good well known about the NFL. Knowledge about the NFL products and 40% people have good
knowledge but they are not .

48
 (8)SOURCE OF INFORMATION

Cumulati
Valid ve
Frequency Percent Percent Percent

Vali Advertisemen
12 20.0 20.0 20.0
d t

Personal visit 16 26.7 26.7 46.7

Peer neibour 14 23.3 23.3 70.0

Others 18 30.0 30.0 100.0

Total 60 100.0 100.0

Interpretation

This table shows from which source farmers collect the knowledge about the NFL. 20% people
collect knowledge through advertising, 26% people get knowledge through personal visit, 22%
people heard from their peer neighbours and 30% people get their knowledge from others
sources like T.V., Radio, News papers etc.

49
 (9)Which company's product give you more satisfaction

Frequen Valid Cumulative

cy Percent Percent Percent

Vali NFL 43 71.7 71.7 71.7

d
TATA 2 3.3 3.3 75.0

IFFCO 8 13.3 13.3 88.3

SRIRA
1 1.7 1.7 90.0
M

KRIBH
6 10.0 10.0 100.0
CO

Total 60 100.0 100.0

figure 9

Interpretation

This table shows the preference of the various fertilizer used by the farmers i.e. 72% farmers
prefer to NFL, 3% farmers prefer to TATA, 13% farmers prefers to IFFCO, 2% farmers prefer to
SRIRAM, 10% people prefer to KRIBHCO.

50
 10 Number of people satisfied ?

Cumulative
Frequency Percent Valid Percent Percent

Vali Yes 46 76.7 76.7 76.7

d
No 14 23.3 23.3 100.0

Total 60 100.0 100.0

figure 10 Interpretation
This table shows satisfaction level of the farmers for the NFL products people about 45 % are
satisfied.

51
 (11) How is the Level of satisfaction about the product

Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly
27 45.0 45.8 45.8
satisfy

Satisfy 20 33.3 33.9 79.7

Dissatisfy 7 11.7 11.9 91.5

Strongly
5 8.3 8.5 100.0
dissatisfy

Total 59 98.3 100.0

Missing System 1 1.7

Total 60 100.0

Interpretation

This table shows satisfaction level of the farmers for the NFL products. 45% farmers are strongly
satisfy from NFL, 33% farmers are only satisfy and 20% people are dissatisfy from the NFL
products.

52
 (12) Why do you purchase NFL products

Valid
Frequency Percent Percent Cumulative Percent

Valid Availability 24 40.0 40.0 40.0

Super
12 20.0 20.0 60.0
quality

Freshness 11 18.3 18.3 78.3

Good
11 18.3 18.3 96.7
services

Price 2 3.3 3.3 100.0

Total 60 100.0 100.0

Interpretation

This table shows that which factor affect the farmers to purchase from NFL. 40% people
purchase from NFL because of availability, 20%puchase for good quality 18% purchase for
freshness.

53
 (13)What do you feel about the price charged by the NFL

Cumulativ
Frequency Percent Valid Percent e Percent

Valid Low 10 16.7 16.7 16.7

High 3 5.0 5.0 21.7

Average 27 45.0 45.0 66.7

Similar to
20 33.3 33.3 100.0
others

Total 60 100.0 100.0

Interpretation

This table shows the prices charged by the NFL.45% farmers think price charged by NFL is
average, 33% think similar to others, 5% think prices are very high

54
 (14) What do you feel about quality of NFL products

Cumulative
Frequency Percent Valid Percent Percent

Vali Very good

24 40.0 40.0 40.0
d quality

Average quality 20 33.3 33.3 73.3

Poor quality 11 18.3 18.3 91.7

Similar to
5 8.3 8.3 100.0
others

Total 60 100.0 100.0

Interpretation

This table shows the quality level of the NFL’s products. 40% farmers say that quality is very
good, 33% says average quality, and 18% says bad quality.

55
CHAPTER- 5
PROJECT FINDINGS

56
 Findings of the project

 The farmer most like the NFL main product Urea. It is due to increase in the quality of
products manufactured by NFL. As NFL is paying too much attention towards the quality
of the products that are being used by the farmers.

 According to a survey conducted among the farmers of Himachal Pradesh. The farmers
liking and trusting on the product produced by NFL. Their behavior towards the use of
product in future is also optimistic.

 The stitching land the transportation has been improved from some years, which has
also reduced the wastage of goods, consecutively increased the quality of products.

 The consumer behavior has been studied properly and the promotion and advertising
activities for educating farmers for the product of NFL has been improved.

57
CHAPTER-6
CONCLUSIONS

58
 CONCLUSION

following are some conclusion and suggestion enlighten below

 From my research activity i came to know that the most the farmer is uneducated and did
not have any proper information about the crop circle, seeds, fertilizers, pesticides. They
are not updated most of them are using old techniques of agriculture.

 NFL should give stress on the publicity, sale promotion activities, advertising, and credit
facilities. 72% farmers satisfy with the NFL’s products. But mostly farmers give the
suggestion to improve the dealing services, provides credit facility, increasing in the
promotion activities, because NFL has no provide any credit facility to the farmers.

SUGGESTIONS

• Most of the respondents suggested that quantity should be increased.

• NFL has to concentrate on Kisan melas instead of other sides of advertising.

• Needs to work on research development and innovative products.

• The fertilizer monitoring system must be applied up to the block level.

• More printed literatures should be distributed in the village so more awareness must
come to the farmers about the new products and technology.

59
Chapter-7
LIMITATION

60
 LIMITATION

Every research is expected to help in formulating some of the theories in the field on the basis of
the finding. However like other researches this research also suffered from some limitations. As
such, while generalizing the result, the following limitation of the study might be undertaken
into consideration. here are some of limitation enlisted below

 Better policy for farmer.

 Not much qualified farmers.
 Need of better equipment's.
 Less time for study the aspects
 Resources were also limited.
 Less number of females in farming.
 Less income sources for farmers.

61
 BIBLIOGRAPHY

here are some of books and websites considered in report making process

1 Supervisory Development program (reading material).

2 Personal manual (Marketing Department)

3 Vani magazine March, 2018 (April To July)

4 Public Relational Office Manual

5 Marketing Management(Phillip Kotler)12 edition

WEBSITES

 www.NFL.com

DIGITAL LIBRARY

MAGAZINES-

 Krishi vaigyan,
 Kisan patrika

62
 QUESTIONNAIRE
Name: _____________________

DOB: _____/______/________

POST: _________________________

Address: _____________________

MARKETING AND DISTRIBUTION QUESTIONNAIRE

enlisted below are question present in questionnaire

1. How long you have been working in the industry?

a) Less than 3

b) 3-5 years

c) More than 5 years

2. How do you feel the working environment?

a) Excellent

b) Good

c) Satisfactory not satisfactory

3: From where do you buy fertilizers?

a) Dealers

b) Market

c) Societies

(i)

63
 4. How do you come to know about farmers 'urea?

a) News papers

b) Dealers

c) Magazines

d) Friends

5. Opinion about your Neem coated product

a) highly satisfied
b) average
c) Others (specify) …………..

d) Not satisfied

6. Are you satisfied with the knowledge provided by your management?

a) highly satisfied

b) satisfied

c)needs improvement

7. Are you satisfied with packaging of given product?

a) Highly satisfied

b) Satisfied

c) Needs improvement

(ii)

64
 8. Are you satisfied with the overall compensation package?
a) Highly satisfied

b) Satisfied

c) Needs improvement

9. How do you feel about the welfare scheme of fertilizers industry?

a) Highly satisfied

b) Satisfied

c) needs improvement

10. Have you ever observed or experienced any of the following forms of
performance of industry?
a) Positive

b) Negative

c) Predictable

11. Any bad technique in working of product development department?

a) Yes

b) No

If No, Why……

12. My manager/supervisor provides me with continuous feedback to help me achieve

a) agree

b) Disagree

(iii)

65
66