Introduction
IFFCO
was registered on November 3, 1967
as a Multi-state Co-operative Society
The
Society is primarily engaged in
production and distribution of fertilisers
The
distribution of IFFCO's fertiliser is
undertaken through over 39824 Cooperative Societies
Mission
IFFCO's
mission is "to enable Indian farmers
to prosper through timely supply of reliable, high quality agricultural inputs
and services in an environmentally
sustainable manner and to undertake other activities to improve their welfare
Vision
To augment the incremental incomes of
farmers by helping them to increase their crop productivity through balanced use of energy efficient fertilizers, maintain the environmental health and to make cooperative societies economically & democratically strong for professionalized services to the farming community to ensure an empowered rural India.
Objectives
To serve the cause of IFFCOs mission as stated in the mission document Extend IT enabled services to farmers and cooperatives to promote IT penetration and improve IT comfort levels in rural India. To evolve appropriate dissemination strategies for effective use of IT Enabled Services in Rural India. To extend e-services to cooperative members of IFFCO and in a phased manner. Provide latest and reliable information and extend other services to all those actively involved in the development of Indian agriculture and rural development. Provide necessary information / services for suppliers to IFFCO and achieve e-procurement in a phased manner.
Governance
No individual membership , Membership is open to the following:National, State, district, regional and primary level Cooperative Federation of agricultural credit / marketing / processing / supply etc. National Cooperative Development Corporation Public Financing institutions to the extent required/ requested by the board/ general body of IFFCO
Fees & Termination
Fee: For village level society:- Rs 25/ for others:- Rs 100/Termination: No member is permitted to withdraw any of the shares held by it in IFFCO or to resign its membership of IFFCO within five years from the date of which it was admitted as a member. Letter of resignation to be addressed to MD of IFFCO. Decision of board communicated within a period of four months.
Hierarchy & Flow of Information
MD
R E P O R T I N G
Marketing Director Zonal Manager (5) State Marketing Manager Area Manager (3 for Odisha) Field Officer (1 for Each District)
GENERAL BODY (Structure)
General Body of IFFCO comprises of: Members
of Board of Directors. One direct delegate who has contributed more than 10 lakhs to the share capital of IFFCO. The number of such direct delegates(including delegates) should not exceed 800. Delegates not exceeding 200 are to be elected amongst the representatives of member societies having shares of less than 1 lakh in each state /UT. This is done at the rate of one delegate for every 200 member societies.
FUNCTIONS AND POWER
General Body
Election and removal of the members of the board of directors. Amendment or repeal of any existing bye-laws or enactment of any new bye-laws. Consideration and adoption of annual report and statement of accounts of previous year and review of activities of current year. Consideration of audit report and appointment of auditors . Approval of annual budget. Review of actual utilization of reserve and other funds. Review of official deficit (if any).
FUNCTIONS AND POWER
Managing Committee:
Admission of members. Authorize convening of meetings of the General Body. Recommend annual and supplementary budgets for approval by general body. Appoint, suspend and remove the Managing Director and Functional Directors and approve their terms and conditions of service. Raise funds for the business of IFFCO. Authorize persons to sign bills, notes and receipts on behalf of IFFCO. Appoint trustees, attorneys and agents for the business of IFFCO.
FUNCTIONS AND POWER
Chief Executive- The Managing Director is the Chief Executive of IFFCO and assists the BOD in its functions. Its power and functions are as follows: Have general control over administration of IFFCO. Convene meetings of the BOD/EC/Sub-Committees. To be responsible for general conduct, management and supervision of day-to-day business of IFFCO. Endorse and transfer promissory notes and securities on behalf of IFFCO. Determine powers, duties and responsibilities of employees of IFFCO.
FUNCTIONS AND POWER
Executive Committee:EC is responsible for efficient management of societies. Its powers and functions are as follows: To examine and recommend to the board, the estimates of the budget. To approve all investments proposals of capital nature up to limit of 1.5 crore. To authorize execution of documents for and on behalf of society. To grant loans to members where amount and repayment terms are not covered under the service rules of the society. Refer claims and demands by and against IFFCO for arbitration.
FUNCTIONS AND POWER
Marketing
Sub Committee: This committee is responsible for efficient management of marketing operations of the society. Its power and functions are as follows: To formulate and recommend to the board for approval of overall marketing policy for sale of fertilizers and agricultural inputs. To lay down distribution strategy including the channel and outlets. To recommend to BOD for approval of matters relating to pricing policy of fertilizers and allied products. To lay down guidelines for distribution margins.
Economic activities
Core
Function Business Plan Structure of finance Information and Communication Technology Reporting and Hierarchy of IFFCO
Core Function
Balanced
Fertilizer Programme Soil Testing Labs (Mobile/Static) Socio-Economic Development of Village Human Health Check ups & medicine distribution Veterinary services Drinking water supply & Watershed Mgmt Assistance to School/School children
Business Plan
5
marketing territories Distribution mainly through coop. System Wholesaler- State level Apex Coop Market Federation Supplies to some Agro-industries also 158 IFFCO farmers Service Channel Transportation by rail (88%) Warehousing at godowns of CWC,SWC and Federation godowns
Business Plan
Marketing Central Office
North Central zone (LKW)
North Zone (CHNDGH)
South Zone (Bangalore)
West Zone (BPL)
East Zone (Kolkata)
U.P, BR, JHKHND, UTKHND
PNB, HAR, RAJ, H.P. J&K
AP,TN, KAR, Kerala
GUJ, M.P, MAH, CHTSGRH
Assam, Odisha, W.B
Structure of finance
Sources
of fund: admission fee, share capital , loans and deposits within India and abroad , debentures , bonds and commercial paper , grants-in-aid and donations
Face value Allocated to 1 lakh
10,000
No. of Share 90,000
50,000
NCDC, public financing inst. , national/state/regional federation
Dist. & primary marketing/processing/supply cooperative society
5 lakh
1000
Primary societies at village level
Value
of share is paid in one lump sum or installments as per bylaws Every member subscribes to at least one share Basic minimum level of utilization has to achieved to have the rights IFFCO can receive loan from members and others up to 10 times of its paid up share capital plus accumulated reserves minus losses
Distribution of profits
Reserve
Funds -25% Cooperative Education fund -3 - 5% Rest is distributed as dividend (<=20%) to share holders rebate on purchase by members and Building, education, Charity etc 10% is for unforeseen loss Payment of Ex-gratia to employees a/c to schemes of the board
Audit
Both internal and external audit Board of directors constitute an audit committee To oversee the societys financial reporting process , financial statement etc Review the findings of internal auditors and follow up on any irregularities
Information and Comm. Tech.
Wide Area
Network up to all Area Level Offices with Corporate Office at Delhi. All offices of IFFCO are connected with VPN Video Conferencing Facility at maximum Offices. Implemented Successfully the e-procurement system. Application of Integrated Corporate Enterprise in HR, Finance, Marketing, Transportation & production Multilingual Agri. Information portal and Touch screen based Kiosks.
E-Procurement
Environment
Govt.
regulation on the amount of fertilizer to be manufactured High demand but low supply PPL is the biggest competitor Paradeep plant was previously under Oswal chemicals pvt. Ltd. and was purchased by IIFCO 30,000 MT DAP is being exported to Nepal.
