Summer internship Project

Mangalore Chemicals and Fertilizers ltd

Panambur

Mangalore

Submitted by

Aditya Bhat

SA1101

Submitted to

Prof Sivadas Nambiar

 WEEKLY TIME TABLE

DATE
WEEK PARTICULARS
04-06-2012 to 09-06-2012 Confirmation of internship in
st
1 Week Mangalore chemicals &fertilizer,
panambur and observation of the
company
11-06-2012 to 16-06-2102 Plant and department visits
2nd Week

18-06-2012 to 23-06-2012 Interaction with the training

rd
3 Week manager
25-06-2012 to 30-06-2012 Personal observation of the finance
4th Week department
02-07-2012 to 07-07-2012 Personal observation of the human
5th Week resource department
09-07-2012 to 14-07-2012 Personal observation of the
th
6 Week production unit
16-07-2012 to 21-07-2012 Obtaining primary data and other
7th Week information from the company

23-07-2012 to 28-07-2012 Clarification of project and visit to

8th Week marketing department in bangalore
EXECUTIVE SUMMARY

This report is based on the study which was conducted at MCF Mangalore chemical and
fertilizer in Mangalore

In this report it contains the information of 4 major departments essential for the working
and continued existence of the company for the smooth functioning of these departments and
very essential for the success of the company .

It is a 24hr process for producing fertilizer and the equipments which are used are advanced
so that they are of high quality. Since the production is continuous the marketing team does
not have a specific amount of fertilizers to sell, as and when the product is finished it has to
be sold to farmers

The marketing team uses the distribution channel for selling the product by using the
information on climate condition and since this is subsidised industry advertising is banned
which makes the job even more complicated

The financial position of MCF, since its inception has not been very stable but they are
striving hard to achieve financial prospective in the years to come. The company believes in
social service and assistance to the people in need. They also conducted educational programs
for farmers to educate them on the right type of fertilizer for the right type of soil and crop.

MCF has a unique way of managing finance which is done through a inbuilt software SAP
which is built in all the systems.

This report contains all the workings of the four departments and my observations of the
departments.MCF strives for quality and farmer prosperity always and this has made MCF an
important player in the fertilizer and chemical industry.
Industry Profile
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 India’s 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.
Man's use of fertilizer dates back to the Neolithic Era but chemical fertilizer is, by historical
standards, quite new. They were developed to replenish soils depleted by harvesting and
primarily consist of three types, called NPK fertilizers (N for nitrogen, P for phosphorus and
K for potassium).
Origin
The first chemical fertilizer was phosphorus-based and was invented in the early 19th
century. It was composed of superphosphate made by treating bones with sulphuric acid.
Early Formulation and Development
The bone material in phosphorous (P) fertilizer was quickly replaced with phosphate rock and
coprolites (fossilized animal focal matter). Potassium (K) fertilizers were first developed in
Germany in 1861 and in North America between 1914 and 1919. Use of K fertilizers
expanded when potassium deposits were discovered in New Mexico in 1931 and again in the
Saskatchewan territory in 1958. The first N fertilizer, Calcium Nitrate was formulated in
1903.
Use and Advancement
The use of NPK fertilizers (particularly nitrogen and phosphorus) had been steadily rising
since 1945. The federally owned Tennessee Valley Authority (TVA) was formed in 1933 and
was given the responsibility of improving the manufacturing and use of fertilizer nationwide.
Today, over 75 percent of the chemical fertilizers manufactured in the United States are made
using processes developed by the TVA.
Pricing Policy of Government
To encourage balanced fertilizer use and make fertilizers available to farmers at affordable
prices , the Central Government determines and notifies the selling price of urea as well as
decontrolled P & K fertilizers such as Di-ammonium Phosphate (DAP), Muriate of
Potash(MOP), Single Super Phosphate(SSP) and complexes. The current selling prices of
Urea and P & K fertilizers are less than the cost of production, the difference between selling
price and the cost of production as assessed by the Government is borne as subsidy. The
subsidy on Urea is Rs. 22,661.89 per tonne, on complex fertilizer 20:20:00:13 is Rs.5,640.20
per tonne and on DAP is Rs. 15,183.24 per tonne, the total subsidy accounted for the year
ended 2010-11 was Rs.1,614 Cr.
The New Pricing Scheme (NPS) for Urea announced by the Government of India in March
2007 expired by 31-03-2010. The policy specifies that all Naphtha/Furnace Oil/LSHS based
units should convert to gas by 31-03-2010. Despite readiness of the Company for, non-
availability of gas within this deadline is a concern.
The policy on Phosphatic fertilizers has been recently announced based on the
recommendation of the Tariff Commission effective from 01-04-2008 with some deviations.
The concession for the indigenous Di-ammonium Phosphate (DAP) is restricted at the same
level of imported DAP, as against higher rate of concession given in the past. Under the new
policy, concession for Complex fertilizers will be unit based which amounts to rolling back to
unit based pricing policy.

Global fertilizer prices

Urea prices have been hardening from US$ 229.3 in June 2010 and US$ 327.8 per tonne in
March 2011 to US$ 485.90 per tonne in June 2011, but eased marginally there from to US$
474.8 in July 2011. The prices were 35% higher in April 2011, but the rise surged to 73%
higher in May 2011 and ascended further to 112% higher in June 2011, on y-o-y basis, before
decelerating to 90% spike in July 2011.

Table showing global Urea, DAP & MOP prices in US $ per tonne
DAP prices sizzled from US$ 277.8 per tonne in June 2010 to US$ 650.6 by July 2011. DAP
prices were 32% higher in April and May 2011, but the growth increased to 40% higher in
June 2011 and 41% higher in July 2011, on y-o-y basis. Likewise, MOP prices flared up from
US$ 312.50 in March 2011 to US$ 461.3 per tonne in July 2011. MOP prices were 32%
higher in April 2011, 33% higher in May 2011, 37% higher in June 2011 and 44% higher in
July 2011, on y-o-y basis.

Indian Scenario
The Indian Fertilizer Industry is one of the allied sectors of the agricultural sphere. India has
emerged as the third largest producer of nitrogenous fertilizers. The adoption of back to back
Five Year plans has paved the way for self sufficiency in the production of food grains. In
fact production has gone up to an extent that there is scope for the export of food grains. This
surplus has been facilitated by the use of chemical fertilizers.

The large scale use of chemical fertilizers has been instrumental in bringing about the green
revolution in India. The fertilizer industry in India began its journey way back in 1906.
During this period the first Single Super Phosphate (SSP) factory was established in Ranipet
in Chennai. It had a capacity of producing 6000 MT annually. In the pre and post
independence era a couple of large scale fertilizer units were established namely the Fertilizer
Corporation of India in Sindri, Bihar and the Fertilizer & Chemicals Travancore of India Ltd
in Cochin, Kerala.

The fertilizer industry is one of the most energy intensive sectors within Indian economy and
is therefore of particular interest in the context of both local and global environment
discussions. Increase in productivity of this good with the use of cleaner and more efficient
technologies in the manufacturing sector will be most effective immerging economic,
environment and social development objectives. Being the backbone of agricultural
productivity, the role of fertilizers will always remain crucial in developing countries like
India, with increase in demand for food the demand for fertilizer supply has experienced an
upward shift. There is little doubt that improved productivity can only be attained through
better management of inputs, including fertilizers.
The Indian Government has devised policies conducive to the manufacture and consumption
of fertilizers. Numerous committees have been formed by the Indian government to formulate
and determine fertilizer policies. The dramatic development of the fertilizer industry and the
rise in its production capacity has largely been attributed to the favourable policies. This has
resulted in large scale investments in all three sectors viz. public, private and co-operative. At
present there are 57 large scale fertilizer units. These manufacture an extensive range of
phosphatic, nitrogenous and complex fertilizers.

The Department of Fertilizers is responsible for the planning, promotion and development of
the Fertilizer industry. It also takes into account the import and distribution of fertilizers and
also the financial aspect. There are four main divisions of the department. These include
Fertilizer Imports, Movement and Distribution, Finance and Accounts, Fertilizers Projects
and Planning and Administration and Vigilance. It makes an assessment of the individual
requirements of the states and union territories and then lays out an elaborate supply plan.
Though the soil in India is rich in silt, it lacks chief plant nutrients like potassium, nitrogen
and phosphate. The increase in the production of fertilizers and its consumption acts as a
major contributor to overall agricultural development.

Agriculture accounts for about one fifth of Indian GDP and provides livelihood to nearly two
third of the population. Hence, the government has always been focusing on self-reliance in
food grain production and this has resulted in substantial increase in agriculture production
and yield. Chemical fertilizers have played a vital role in this regard. The government has
consistently been pursuing policies to increase the availability and consumption of fertilizers
in the country.

Fertilizers production in India is nutrient wise. The three main nutrients- Phosphate, Potash
and Nitrogen (Urea) are used for fertilizers creation. Urea, ammonium sulphate, calcium
ammonium nitrate (CAN) and ammonium chloride are the nitrogenous fertilizers produced in
India and single superphosphate (SSP) is the only phosphatic fertilizer that is produced in
India. Additionally, nutrients are combined to produce several complex fertilizers. Production
of complex fertilizers include DAP (Diammonium Phosphate), several grades of nitro
phosphates and NPK complexes. Urea, DAP, SSP and Muriate of Potash (MOP) are the most
commonly used fertilizers. Among these, urea and DAP are the main fertilizers that are
produced indigenously. Due to the lack of viable resources or reserves of potash in India, the
entire feedstock requirement for potassic fertilizers are imported. Thus, Potash based
fertilizer demand is entirely met by imports, for Phosphate fertilizer raw materials are
imported and lastly Natural Gas and LNG is being imported for Urea fertilizer production. In
India, technical problems, power shortages and stringent Government policies lead to
problems in production expansion and high import prices is a matter of concern especially for
farmers. Fertilizer in the agricultural process is an important area of concern.
An impetus to the growth of fertilizer industry in India was given by Green revolution in
Sixties. Further a significant addition to the production was witnessed in seventies and
eighties. The fertilizer industry has played a pivotal role in achieving self-sufficiency in food
grains as well as in rapid and sustained agricultural growth. India is third largest producer and
consumer in the world after China and the United States. The growth of Indian fertilizer has
been largely determined by the policies pursued by the government which mainly confine to
controls on the pricing, distribution and movement of fertilizers.
However, fertilizer consumption also depends on various agriculture related factors such as
soil quality, farming methods, cropping pattern, rainfall and irrigation patterns, different
geographical aspects, calamities, availability of technology and information, varieties and
quality of seeds as well as access to capital and credit and other inputs. The average annual
growth of fertilizer consumption achieved at the end of the Tenth Plan was about 4%. During
the start of the Tenth Plan Period the country was drought affected, and therefore, its
consumption of fertilizers fell by about 7.30% over the previous year. However, the growth
in consumption started picking up during the following years. In fact, the increase in
consumption was higher than the growth in production and the balance was met with imports.

Indian fertilizer sector has been caught unawares of spike in global fertilizer prices on the one
hand, and factoring in lower prices in the nutrient based subsidy scheme. After hard posturing
for couple of quarters, finally the Indian fertilizer industry inked deals on import of Muriate
of Potash (MOP) in US$ 490 – 500 per tonne levels, on an average. India is dependent on
imports for its entire MOP requirements as there are no known potash resources in the
country.

Table showing retail prices of fertilizers

Name of the Fertilizer Maximum retail price (Rs. Per tonne )

2010-11
Urea 5,130

DAP 9,802

Complex Fertilizer 20:20:00:13 6,974

Ammonium Bicarbonate 10,161

Name of the Concrete mixture

SNF liquid 18,998

SNF powder 49,000

Because of this type of fertilizer pricing policy and control on the raw material the production
of the fertilizer is shrunken. The pricing policy of the Government will affect the profitability
of the company. According to the employees of the company the government pricing policy
should be removed, so that the company can fix its own sales price for its products.

Table showing Fertilizer Subsidy Provided in India

Year P&K fertilizers Urea Total for all fertilizers

2008-09 65554.79 33939.92 99494.71

2009-10 39452.06 24580.23 64032.29

2010-11 41500 24336.68 65836.68

2011-12 (B.E.) 29706.87 23883 53589.87

Figures in Rs crores
Source: Ministry of Chemicals and Fertilizers

The budgeted fertilizer subsidy has been coming down from Rs 99494.71 crore in FY 2008-
09 to Rs 64032.29 crore in FY 2009-10, which marginally increased to Rs 65836.68 crore in
FY 2010-11. For FY 2011-12, the budgeted fertilizer subsidy has been scaled down further to
Rs 53589.87 crore.
Company Profile

History of the Company

Mangalore Chemicals & Fertilizers (MCF) is the only fertilizer in the state of Karnataka. It is
an ISO 14001 and OHSAS certified company. The Company is a part of the UB Group with
Group shareholding of 30%. Dr. Vijay Mallya is Chairman of the Board of Directors. The
operations are managed by a team of highly dedicated and experienced professionals.
Mangalore Chemicals and Fertilizers Limited (MCF), with a turnover of over Rs. 2523Crore
(FY 2010-2011). The factory is strategically located at Panambur, 9 km north of Mangalore
City, on the banks of the Gurpur River, in front of the New Mangalore Port. The plant is well
connected, both by rail and road. The West Coast National Highway (NH-l7) from Kochi to
Mumbai separates MCF from the New Mangalore Port. The New Mangalore Port is an all-
weather port capable of handling ships up to 30 feet draft. Naphtha, Fuel Oil, Ammonia and
Phosphoric Acid - the main raw material are obtained through the port.
The design and engineering of the Ammonia/Urea plants was done by Humphreys &
Glasgow Limited, London, a leading international firm in the fertilizer field and their
associates, Humphreys & Glasgow Consultants Pvt. Ltd., Bombay. (The firm is now merged
with Jacobs Engineering, USA). The Phosphoric plant is designed and engineered by Toyo
Engineering Corporation, Japan. PDIL and Furnace Fabrica the Indian firms were involved in
the construction of ABC and SAP respectively.
Manufacturing both nitrogenous and phosphoric fertilizers, MCF has an annual
manufacturing capacity of more than 2 million metric tons of ammonia an 3 million metric
tons of urea. The company sells its products (including specialty fertilizers) under the
Mangala brand. UB Group owns about 30% of the company with smaller stakes held by the
Karnataka government and various financial institutions.
VISION
Turnover of Rs.3000 cores by the year 2012

MISSION
To create value for the farmers, consumers and other stakeholders by providing integrated
agri solutions and leveraging our competencies to develop strategic business

VALUE

(1) integrity
(2) customer focus
(3) innovation
(4) team work
(5) agility
(6) excellence

The plant management and consultancy services offered by MCFIL include:

 Erection & Commissioning

 Operation & Maintenance including turnaround activities
 Condition Monitoring
 Civil Engineering Services
 Technical Training using Simulators and on the job training
 Safety Practices & Training
 Environment and Quality Control Services
 Human Resources- HR Training & Placement Services.
Logistics – Handling, Warehousing, Transportation and C & F Services for hazardous
chemicals and bulk cargo.

INFRASTRUCTURAL FACILITIES
Product Handling
There are in all, four streams for Urea and three streams for Ammonia for bagging and
dispatch.
Urea

Di Ammonium Phosphate (DAP)

Ammonia (an intermediate product for urea production)

ChemCF NL and ChemCF NP

Sulphuric Acid and Utilies

Auxiliary Boiler
The Ammonia and Urea plants are supplemented with an auxiliary boiler of 60MT /hr steam
capacity at 75 kg/cm2 pressure and 480oC.
Captive Power Plant (CPP)

To overcome the frequent interruptions in power supply, resulting in equipment failure and
wastage of energy during shutdown and start ups of the plants, a Captive Power Plant with
eight Wartsila Diesel Engines was commissioned.

Imported Ammonia & Phosphoric Acid Terminal (IAT)

The terminal facilitates direct unloading from a ship. Ammonia is stored in a 10,000 MT
atmospheric pressure storage tank. Phosphoric Acid is unloaded into two tanks of 8,000 MT
each capacity.
Imported fertilizer handling facility

MCFL has installed Imported Fertilizer handling facility. The fertilizer imported through
ships will be brought from the port by trucks/tippers and discharged inside the Bulk Storage
Silo or to a receiving Hopper outside the silo for bagging and dispatch. The Silo capacity is
20,000 MT.
Water Reservoir

The entire complex requires 2 Million Gallons (MG) per day of clarified water which is
supplied by the Mangalore City Corporation from the Netravathi River. In order to overcome
the problem of water shortages, especially during summer months, two reservoirs of 6 MG
and 18 MG capacity were constructed within the factory premises.
Bulk Storage (Silo): There are two separate silos to store 30,000 MT and 10,000 MT of Urea
and Phosphatic fertilizers respectively.

Ownership Pattern
Table showing ownership Pattern as at 2010-11
Category No. of No. of % to Total
Shareholders Shares Capital
UB Group- Promoter 3 36076775 30.44
 Central Government/State 12 3759884 3.17
Government
Financial Institutions/Banks 315 402756 0.34

Mutual Funds 6 142875 0.12

Insurance Companies 6 105140 0.09

Bodies Corporate 1226 19342309 16.32

Foreign Institutional 5 1463000 1.23

Investors
Public 85482 52572431 44.36

Others(Clearing Members,
Foreign Nationals, HUf’s 1903 4649980 3.93
NRI’s, Societies,& Trusts)
Total 118515150 100.00

Some of the major fertilizers producers are :

There are some very tough competitors for MCF Ltd in the field of fertilizer industry. for
example the major competitors for MCF are Rashtriya Chemicals & Fertilizers Ltd,
Coromandel Fertilizers Limited, Chambal Fertilizers and Chemicals Limited, Gujarat
Narmada Valley Fertilizer(GNFC), Deepak Fertilizer and Petrochemicals Corporation
Limited, Gujarat State Fertilizers and Chemicals Limited, Nagarjuna Fertilizers and
Chemicals Limited, Zuari Industries Limited.

Area of Operation
Mangalore Chemicals and Fertilizers Limited (MCF), with a turnover of over Rs. 2,520 Cr
(FY 2010-2011), is the only manufacturer of chemical fertilizers in the state of Karnataka.
The factory is strategically located at Panambur, 9 km north of Mangalore City, on the banks
of the Gurpur River, in front of the New Mangalore Port. The plant is well connected, both by
rail and road. The West Coast National Highway (NH-l7) from Kochi to Mumbai separates
MCF from the New Mangalore Port. The New Mangalore Port is an all-weather port capable
of handling ships up to 30 feet draft. Naphtha, Fuel Oil, Ammonia and Phosphoric Acid - the
main raw material are obtained through the port.
The design and engineering of the Ammonia/Urea plants was done by Humphreys &
Glasgow Limited, London, a leading international firm in the fertilizer field and their
associates, Humphreys & Glasgow Consultants Pvt. Ltd., Bombay. (The firm is now merged
with Jacobs Engineering, USA). The Phosphatic plant is designed and engineered by Toyo
Engineering Corporation, Japan. PDIL and Furnace Fabrica the Indian firms were involved in
the construction of ABC and SAP respectively.
Manufacturing both nitrogenous and phosphatic fertilizers, MCF has an annual
manufacturing capacity of more than 2 million metric tons of ammonia and 3 million metric
tons of urea. The Company sells its products under the Mangala brand. UB Group owns
about 30% of the company with smaller stakes held by the Karnataka government and
various financial institutions.
Nature of Business Carried out:
Mangalore Chemicals & Fertilizers (MCF) is a big part of India's growing agricultural
industry. It manufactures the chemical fertilizers such as Mangala Urea, Mangala DAP,
Ammonium Bi Carbonate, Mangala 20:20:20:13, Sulphuric Acid etc and also imports some
trading products from outside and being sold here in India. And also from August 2010, it
produces SNF liquid and powder used in the construction, chemical industry for manufacture
of super plasticizer.

Product Profile of MCF Ltd.

The main products produced by Mangalore Chemicals and Fertilizers Limited here are as
follows:

Mangala Urea –
 it is a synthetic organic compound containing 46% nitrogen in amide form which is available
in the form of white solid prills free flowing for easy application. Urea is packed in moisture
proof high density poly ethylene bag which is 50kg. It is the cheapest nitrogenous fertilizer
and being less acidified, it is suitable for P soils.

Mangala DAP –

DAP contains the second most important primary nutrient element, phosphorous besides
nitrogen,which is available in free flow granular form for differentiation with other low
analysis compound fertilizers, DAP granules are coloured with black. Granules are stronger,
harder and of uniform size. it is packed in 50kg HDPE bag.

Ammonium Bi Carbonate-

It is a food product with 99.8% purity on dry weight basis. It is white crystalline product.
Being very hygroscopic, it is packed in a air tight, laminated HDPE bags of 25kgs. It is used
as ingredient for fire extinguishers, dyes and pigments, degreasing of textiles, cooling baths,
pharmaceutical industry etc

Mangala 20:20:00:13 –

It contains 20% Nitrogen & 20% P2O5. It also contains 13 % Sulphur, a Major Secondary
plant nutrient. Granules are uniform and light grey in colour and it is packed in a 50kg HDPE
bag.

Sulphuric acid –

It is colorless, nonflammable liquid.Sulphuric acid (H2SO4) monohydrate is very

hygroscopic. Used as an intermediate for manufacturing of phosphatic fertilizer. It is
Transport by road tank truck.

ChemCF NL - Sulphonated Naphthalene Formaldehyde Liquid- ChemCF NL is an

aqueous solution of Sulphonated Naphthalene Formaldehyde, Sodium salt polymer. It is an
excellent dispersing agent. It is a powerful water reducing element in Concrete Admixtures.
Engineered & designed to offer wider tolerances in formations of admixture manufacturing.
Compatible with most of the additives used in admixture formulations which helps in
producing versatile applications. Supplied in Bulk Tankers of 10 t, 16 t & 20 t capacity. It can
also be supplied in customized pack size in HDPE barrels or jerry cans.

ChemCF NP –
Sulphonated Naphthalene Formaldehyde Powder- ChemCF NP is a Sulphonated
Naphthalene Formaldehyde (SNF) poly - Condensate product. It is a powerful water reducing
agent used for concrete and cement grouts. This is an excellent dispersing agent. Designed to
offer wider tolerances in formulations for concrete admixture manufacturers. It is compatible
with most of the additives used in admixture formulations. It helps in producing concrete
with various unique properties. Packing – Supplied in customized pack sizes of 25 kg and 40
kg HDPE bags.

Some other products are as follows

Mangala MOP-

Contains 60% Potash (K). Till now the most widely used K fertilizer available in white and
reddish crystalline form which is packed in 50 Kg HDPE Bag.

Speciality fertilizer - Speciality fertilizers are high analysis totally water soluble fertilizers.
These are available in mono, double and multi nutrient combinations. They are available in
liquid and crystalline forms and can be applied to plants through soil application
(broadcasting), fertigation or foliar application to maximize fertilizer use efficiency and crop
productivity, minimize production cost and to improve quality of crop and its produce

 Mangala Bio20 & Mangala 3X –is a highly concentrated emulsion containing macro
and chelated micro elements suitable for foliar spray and fertigation.
 Mangala Calmax - Mangala Calmax is a fully water soluble fluid emulsion product
containing high level of calcium and balanced range of micro nutrients.
  Mangala Sulphomex - Mangala Sulphomex is a clear solution containing water
soluble sulphur and nitrogen.
Fertigation Products - This comprehensive range of powder formulations is manufactured
only from technical grade raw material and blended to exacting quality standards. These
ranges of products may be used in all fertigation systems to provide a balanced nutrient
programme containing NPK, magnesium and essential microelements.
The products are fully water soluble.

 Mangala 18-18-18+2Mgo+TE –

18:18:18 has immediate beneficial effect on plant growth.

 Mangala 19-19-19 –

19:19:19 application stimulates with immediate effect plant growth and development.

Soil Conditioners - In the changing agriculture scenario, where the fertile and productive
land area is shrinking due to unscientific and surfeit use of chemicals and fertilizers, there is
an urgency to correct the soil condition to suit for modern agriculture.
Soil conditioners are termed as materials which when added to the soil help in improving or
maintaining its physical conditions with improved physical and chemical health of soil that
resultantly improve biological health. In the Integrated Nutrient Management approach, soil
conditioners are integral part of the agronomic package.
  Mangala Setright for Alkaline Soils - Mangala Setright for Alkaline Soils brings
down the pH of alkaline soils and neutralizes the adverse p. Mangala Setright for
Acidic Soils brings increases the pH of acidic soils and neutralizes the toxicities.It
improves physical and chemical health of the soil.
Organic Products - The productivity of Indian soils has drastically come down. This has
necessitated increasing the productivity per unit area per unit time. This is becoming difficult as the
soil health has deteriorated alarmingly. One of the main reasons of this is the ever reducing soil
organic matter content. Improving the soil organic carbon content by application of suitable organic
matter and manures is the only option. For realising the benefit of application of organic matter, the
product should be well decomposed and of good quality. Moreover, if the product can offer more
benefits to the farmer than a mere organic manurial value, it is then the farmer realised more value
for money.

1. Product Range : Bulky Organic Manure

 Mangala Bio Gold –

Mangala Bio–Gold is a well decomposed organic matter fortified with neem cake,
castor cake, pongamia cake and vermicompost.
 Mangala Gold –
 Mangala Gold is an organic product containing humic substances in the form of
humic acid, fulvic acid and humin.
 Mangala Neem Organic Manur –

Mangala Neem Organic Manure is a good quality neem product in the form of cake,
pellets and powder.
 Mangala Organic Granules - Mangala Organic Granules is an organic product
containing bio-available amino acids, carbohydrates, seaweed extracts, herbal extracts
and nutrient elements with bentonite material as the carrier.
 Product range - concentrated organic nutrient product
 Mangala Megacal - Mangala Megacal (G) is a gluconate product produced by
fermentation process and contains high levels of calcium, magnesium, boron with
other nutrient elements and is available in granular as well as liquid forms.

Plant Protection Chemicals - As part of its diversification and growth strategy and in order
to offer a wider range of agri inputs, the Company introduced Plant Protection (PP)
Chemicals in July 2010. During the first 9 months of operations, the business registered an
impressive turnover of Rs. 12 Cr. In the current financial year 2011-2012, in addition to the
above arrangement, the Company also plans to launch its own brand of PP products for a few
select molecules.

Safety, Health, Environment and Pollution Control:

The company has obtained Occupational Health and Safety Management System
Certification OHSAS 18001 as a part of its commitment to continual improvement. Det
Norske Veritas, the certification agency has recertified the company’s OHSAS 18001 system,
conforming to the latest 2007 version.

As an ISO 14001 certified Company, the company installed waste water recovery facility to
treat, recycle and reuse the entire quantity of sewage and process effluents, thereby achieving
zero liquid effluent discharge. It has also implemented a rain water harvesting system and
sewage treatment plant at its township. The treated sewage water is used for gardening
purpose. Continuing with its green initiative, the company planted an additional 5000
saplings in the green belt area in its factory in Mangalore in the year 2010.

Awards and recognitions:

From the year 1996-97, the company’s performance dramatically improved with higher levels
of production in all the plants. In fact, the rated capacity of Urea was manufactured for the
first time in 1996-97 since commissioning in 1976, a singular achievement.

The company has received the following awards:

• FAI Award for 'Improvement in overall performance of a Company’ for three consecutive
years 1996-97, 1997-98 and 1998-99.

• Letter of recognition in 1997 from Directorate General of Factory advisory Services and
Labour Institutes (DGFASLI) for maintaining good safety and occupational health standards.

• MCF received the ‘Honest Taxpaying businessmen’ award from Commercial Taxes
Department, Mangalore Division, a unique initiative taken by Government of Karnataka to
honor the prompt Tax payers. Mr. P. C. Jain, Senior Vice President (Works), MCF,
Mangalore, received the award in a felicitation function held at Mangalore on 18th March
2005.

• MCF has been awarded the prestigious certificates on 1. Environment Management System
conforming to ISO 14001:2000 in 2003 which was updated to latest version ISO 14001:2004
in 2005 and 2. Occupational Health & Safety Management System conforming to OHSAS
18001:1999 standard in 2005 which was updated to latest version OHSAS 18001:2007 in
2008.

The certificates were awarded by DET NORSKE VERITAS (DNV), the Netherlands, a
global certifying agency

• FAI Environmental Protection Award in NP/NPK Fertilizer Plants for the year 2009-2010.

Social Responsibility Initiatives

The company has undertaken its Social Responsibility obligation in its true spirit and has
always been actively engaged in the up-liftment/ development of the communities in its
 operating territory. In this direction, MCF has formulated a comprehensive Corporate Social
Responsibility (CSR) policy under which Rural Health and Rural Education have been the
areas of specific focus during the year. In line with this philosophy, MCF formulated two
schemes viz. Project Eye Care intended to prevent/eradicate eye related ailments in identified
rural areas and Mangala Akshara Mitra intended to provide basic facilities and infrastructure
to rural schools to promote education and to make schooling a pleasant experience. These
schemes were implemented in rural and remote locations in the Company’s operating
territory for the benefit of the poor and needy. Under Project Eye Care free eye camps are
conducted in which the needy are recommended for eye surgery, to be carried out free of cost
by the associated hospital and free spectacles are provided. Under its Mangala Akshara Mitra
program, the basic infrastructure that is required, but is lacking in identified schools in remote
locations, is provided by the company. Those include, desks, tables, chairs, green boards,
racks, cupboards, school bags, lunch plates, water glasses and computers

Chart showing the Organization Structure of the Company

BOARD OF DIRECTORS

1. Dr VIJAYA MALLAYA –CHAIRMAN

2. S.R.GUPTE -UB GROUP NOMINEE
3. DEEPAK ANAND -MANAGING DIRECTOR
4. SHRIKANT G RUPAREL -INDEPENDENT DIRECTOR
5. PRATAP NARAYAN -INDEPENDENT DIRECTOR
6. N.SUNDER RAJAN -INDEPENDENT DIRECTOR
7. B.S.PATIL - INDEPENDENT DIRECTOR
8. K. PRABHAKAR RAO -DIRECTOR(WORKS)

MANAGEMENT COMMITTEE

MANAGING DIRECTOR

SENIOR VICE SENIOR VICE DIRECTOR

SENIOR
PRESIDENT HR, PRESIDENT WORKS
VICE
LEGAL AND FINANCE
PRESIDENT
COMPANY
MARKETING
SECRETARY
 Marketing Analysis

The Senior Vice President Marketing is the main person responsible for planning and
organizing of marketing team whereas he must be able to calculate the demand of the product
offered and monitor, analyze and for caste. The main job of senior vice president marketing
is to see to it that he ensures profit and to market the product they chose a unique way they
are:

 Position Uniqueness
 Day in the Life
 Education
 Market size (current and future)
 Market growth rate
 Market profitability
 Industry cost structure
 Distribution channels
 Market trends

MARKETING DEPARTMENT

SENIOR VICE PRESIDENT
MARKETING

GENERAL MANAGER GENERAL MANAGER AGRI DEPUTY GENERAL

SALES BUSINESS MANAGER (MIS)

MANAGER
EXECUTIVE (MIS)
 OFFICER QUALITY
CONTROL

DEPUTY GENERAL DEPUTY GENERAL DEPUTY GENERAL DEPUTY GENERAL

MANAGER HUBLI MANAGER RAICHUR MANAGER MANAGER
COIMBATORE HASSAN

AREA MARKETING AREA MARKETING AREA MARKETING AREA

MANAGER MANAGER MANAGER MARKETING
MANAGER

MARKETING MARKETING MARKETING MARKETING

EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE

HUMAN RESOURCE DEPARTMENT

SENIOR VICE PRESIDENT HUMAN RESOURCE,

LEGAL & COMPANY SECRETARY

GENERAL MANAGER SENIOR MANAGER LEGAL AND SENIOR MANAGER

HUMAN RESOURCES COMPANY SECRETARY HUMAN RESOURCES

DGM MANAGER HR MANAGER MANAGER

ADMINISTRATION RECRUITMENT TRAINING
& PUBLIC
RELATION
OFFICER HR OFFICER HR
DEPUTY MANAGER
ADMINISTRATION

OFFICER
SUPPORT
SERVICE
Human Resource Analysis
human resource department also plays a major role in the company. this department assists in
evaluating the performance of the employees, helps in training, payment of wages, welfare of
the employees and in resolving employee disputes. it focus more on the relationship between
the organization and the employees.

objectives of the human resource department

 training
 career development
 responsibility and authority
 promotional policy
 performance appraisal
 suggestion scheme
 job description development and revision
 labour market research to develop and revise salary grids
 resume screening exercise and coaching
 interview and evaluation of candidates through mock interview with peers
 workshop and training session development
 coaching on dealing with difficult h.r. situations and application of laws related to
h.r. duties

Financial Analysis
Financial Analysis of a company consists of evaluation or analysis of the company’s
performance in terms of cost, sales, profit, assets & liabilities and the overall financials by
analysing the Profit & Loss account and Balance Sheet of the company for the years.
This financial analysis is based on the financial statement of Mangalore Chemicals and
 Fertilisers Ltd for the year 2010-11. The financial analysis consists of the overall analysis of
the Profit & Loss account and Balance Sheet and Ratio Analysis.

Sales: Sales is the major source of revenue for the company. Company is engaged with the
production and sale of Urea, Di Ammonium Phosphate, and Ammonium Bi-carbonate along
with some other trading Table showing sales of the MCF Ltd. for the year 2010-11

Year 2010-11
.
Sales
In the year 2010-11 the sales of the company grew by
(Rs in lakhs) 252319.86
21.49 percent from the previous year. This indicates
that the company is gradually recovering from its previous
fall in sales. The company’s sales are steadily and continuously growing over the years. Thus
the company is doing well by utilising its resources.

some of the functions of the finance department are as follows:

 Dealing with banks and financial institutions

 To monitor the budget and budgetary control
 Monitoring the funds, collections and payments
 Controlling the inflow and outflow of the cash
 To monitor the funds , collections and payment
 To protect the financial interest of the company

FINANCE DEPARTMENT

SENIOR VP
FINANCE

SENIOR
MANAGER GM FINANCE
FINANCE (HEAD
OFFICE)

DGM FINANCE
 MANAGER
FINANCE

DEPUTY
MANAGER

EXECUTIVE
MANAGER

OFFICER

DIRECTOR WORKS

GM GM GM PROJECT GM DGM
PRODUCTION PROCUREMENT DGM (SHS) LOGISTICS
MAINTENANCE
SAFETY
HEALTH
AND
 DGM LOGISTICS

DEPUTY
MANAGER
LOGISTICS

EXECUTIVE
LOGISTICS

OFFICER
LOGISTICS

GENERAL MANAGER PRODUCTION

MANAGER MANAGER MANAGER MANAGER MANAGER MANAGER

AMONIA UREA SNP SAP UTILITIES IAT

DEPUTY DEPUTY DEPUTY EXECUTIVE DEPUTY EXECUTIVE

MANAGER MANAGER MANAGER MANAGER
PRODUCTION PRODUCTI PRODUCTI PRODUCTION
ON ON OFFICER OFFICER
ASSISTANT
ASSISTANT ASSISTANT MANAGER
ASSISTANT
MANAGER MANAGER
MANAGER
EXECUTIVE

EXECUTIVE EXECUTIVE
EXECUTIVE
OFFICER

OFFICER
OFFICER OFFICER JUNIOR
OFFICER
JUNIOR
JUNIOR JUNIOR OFFICER
OFFICER OFFICER
GM
MAINTANENCE

(2) DGM CPP & (3) DGM (4) DGM (5) DGM
(1) DGM PLANT
MAINTANANCE ELETRICAL ENGINEERING INSTRUMENTS RELIABILITY
& INSPECTION

(1) DGM
MAINTENANCE

ZONE 1 ZONE 2 ZONE ZONE 4

(AMONI) (UREA & 3 DAP (BAGGING
UTILTIE IAT)
SAP
SNF)
MANAGER MANAGER MANAGER MANAGER

DEPUTY
DEPUTY DEPUTY DEPUTY
MANAGER
MANAGER MANAGER MANAGER

ASSISTANT ASSISTANT ASSISTANT

MANAGER MANAGER MANAGER ASSISTANT
MANAGER
EXECUTIVE EXECUTIVE
EXECUTIVE EXECUTIVE

OFFICER OFFICER
OFFICER OFFICER

(2) DGM CPP & ELETRICAL

MANAGER CPP DEPUTY

MANAGER MECHANICAL MANAGER
ELECTRICAL CPP
ELECTRICAL

DEPUTY
MANAGER EXECUTIVE
EXECUTIVE

ASSISTANT
MANAGER OFFICER
OFFICER

EXECUTIVE

OFFICER
 (3) DGM (4) DGM (5) DGM
ENGINEERING & INSTRUMENTS RELIABILITY
INSPECTION

EXECUTIVE
MANAGER
ASSISTANT RELIABILITY
INSTRUMENT
MANAGER
S
ENGINEERING
& INSPECTION DEPUTY
MANAGER
INSTRUMENT
EXECUTIVE
ENGINEERING EXECUTIVE
& INSPECTION INSTRUMENTS

OFFICER
INSTRUMENTS
GM PROJECT

DGM SENIOR
SPECIALITY MANAGER
FERTILIZERS PROJECT

MANAGER MANAGER
SPECIALITY PROJECT
FERTILIZERS
ASSISTANT
OFFICER MANAGER
SPECIALITY PROJECT
FERTILIZERS

GM
PROCUREMENT
 DGM
PROCUREMENT

DEPUTY DEPUTY
MANAGER MANAGER
STORES PURCHASE

OFFICER ASSISTANT
STORES MANAGER
PURCHASE

EXECUTIVE
PURCHASE

DGM SHS( SAFETY

HEALTH &
SECURITY)

SENIOR SENIOR MANAGER SENIOR

MANAGER MEDICAL SREVICE MANAGER
SAFETY SECURITY

NURSE DEPUTY MANAGER

FIRE MANAGER
SECURITY
OFFICER SAFETY

ASSISTANT ASSISTANT MANAGER

MANAGER SECURITY
SAFETY

SECURITY
OFFICER
GUARD
SAFETY
ASSESSMENT OF THE INTERNSHIP

I am thankful for the opportunity given by SBS (Swiss Business School) to apply my
knowledge in obtaining maximum information from MCF Mangalore chemical and fertilizer.
I have gained more practical knowledge and I have learnt what the major functional areas in
the organization are. The company has to work day in and out to make sure there are no
errors. For the organization to function at its best all the functional areas of the organization
must be functioning at their optimum level and MCF has succeeded in doing so. My
experiences in MCF in these months have been very informative. The most creative part of
this company is how the company creates awareness and makes sure that the product reaches
in the best possible manner to the end consumer. While observing I found that every
functional department in the firm gave me knowledge of the chemical and fertilizer
department. I would conclude by saying that the months of internship and organizational
study in MCF was a benefit to me because now I have the knowledge of management and
practical experience from the company.
CONCLUSION

The overall study of the organization reveals that the company has 4 departments and each
department is functioning to the best of its capacity to improve and achieve its targets. The
financial department has implemented SAP software for efficient collection of data, the
turnover of MCF is Rs 2,523.83cr for the year 2010-2011 and it is the only chemical and
fertilizer manufacturing company in Karnataka. It has been certified by ISO 14001 and
OHSAS 18001. It has grown tremendously since it started in 1966.

Here we come to know that marketing department plays a very important role in educating
the farmers and informing them about the usage of fertilizers which helps in selling the
product.The Human Resource department is involved in taking care of the needs of the
employees and in training the employees. The works department is involved in the day to day
running of the plant and for the maintenance of the plant.