IntroductionIntroduction Krishak Bharati Cooperative Ltd. (KRIBHCO) is a Multi-state Cooperative Society registered under the Multi-State Cooperative Societies (MSCS) Act, 2002. It is a fertilizer production unit in the Cooperative Sector and as per item 5 of Schedule II to Rule 3 of the Government of India (Allocation of Business) Rules is under the administrative responsibility of the Department of Fertilizers.

KRIBHCO is primarily a fertilizer production cooperative having production unit at Hazira (Surat) in the state of Gujarat.

The capacity of the plant is being revamped to produce additional 4.65 Lakh MT of Urea.The total Urea production capacity shall be 21.65 Lakh MT of Urea after revamp.

KRIBHCO, world’s premier fertilizer producing cooperative has an outstanding track record to its credit in all spheres of its activities.

KRIBHCO has fully imbibed the cooperative philosophy and has made sustained efforts towards promoting the cause of modern agriculture and cooperatives in the country.

Vision

To become a world class organization that represents the farmer community and maximizes their returns through specialization in agricultural inputs, rural need based products and other diversified businesses that maximize stakeholders value.

MissionTo act as a catalyst to agricultural and rural development by selecting, financing and managing projects that are bothsocially desirable and commercially profitable.

Objectives To strengthen cooperative system

To enhance the urea installed capacity and increasing its market share

To ensure optimum utilization of existing plant and machinery

To diversify into other core sectors like Power, Port, Infrastructure, Rural Retail, etc Transfer of technology for modern farming and improving farmers'livelihood

To educate and train farmers, provide free testing facilities for soil nutrients and irrigation water

Board of DirectorsMr. Vaghjibhai Rugnathbhai Patel, Chairman

Dr. Chandra Pal Singh, Vice-Chairman

Dr. Bijender Singh, DirectorMr. V Sudhakar Chowdary, DirectorDr. Sunil Kumar Singh, DirectorMrs. Shailajadevi Nikam, DirectorMr. Pareshbhai R. Patel, DirectorMr. Bhanwar Singh Shekhawat, DirectorMr.S.C.Gupta,Joint Secretary- F&PMr. Ponnam Prabhakar DirectorMr. Bhikhabhai Zaverbhai Patel, Director

Mr. B. D. Sinha, Managing Director

Mr. R. Kamra, Finance Director

Mr. N. Sambasiva Rao, Marketing Director

Mr S. Jaggia, Operation Director

Organisational Structure

VIGILANCE THREE PRONGED VIGILANCE STRATEGY

a) AWARENESS PROGRAMMESConduct Seminars, Workshops, Lectures and Debates,Circulate CVC / Government's Instructions, Issue In-house Special Journals on Vigilance Awareness, Typical case studies are brought to the notice of employees.

b) PREVENTIVE VIGILANCE Simplification of Rules and procedures. Reducing the areas of misuse of discretion. Plugging the loopholes of systems /procedures for reducing points of corruption. Increasing Transparency & Accountability in working. Effective machinery to deal promptly with complaints. Regular and Surprise Inspections. Monitoring disposal of matters in the organisation to detect delays induced by corrupt motives. Effective surveillance of public contact points. Steps to provide highest standards of integrity among the employees.

c) PUNITIVE VIGILANCE Speedy disposal of vigilance cases and disciplinary inquiries. Steps to maintain positive discipline.

KRIBHCO’s Vigilance Department is headed by Shri Amar Prasad, Chief Vigilance Officer, who is an Ex-Officer of Indian Forest Service , of 1980 batch.

Corporate Social ResponsibilityCorporate Social Responsibility

The corporate philosophy of KRIBHCO, the plant organization at Hazira has been undertaking various community development activities in and around Surat District of Gujarat.

Under the Community Development Schemes / Social responsibility programme, the Society has been sponsoring :-

Drinking Water : The society is providing drinking water, in the neighbouring villages i.e., Kawas and Ichhapore. In addition, construction of check-dams were also sponsored in the districts of Dharampur and Olpad.

Health : The society has been organizing Medical Check-up and Eye Camps for the benefit of tribal farmers in the villages in Vyara, Songadh, Dharmapur, Vansda etc .

Education : With a view to promote education in rural and tribal areas, the society has been supporting educational institutes by way of construction of Class-rooms, Sanitation Blocks,providing furniture, books and book-shelves for Libraries, Laboratory instruments, distribution of Uniform and education kits consisting books and stationary items etc.

Infrastructure : The society has been supporting the local administration in creation and maintenance of infrastructure. Construction of Village approach roads at Kawas, Kakrapara, Malgama and other villages were aided so that village connectivity can be maintained during monsoon. Bus-stand sheds were also constructed.

Environment Preservation : The society continually supports the programmes that sensitize Environment Protection and Enrichment by way of organizing ‘Tree-Plantation’ campaigns and participating in Agriculture Fairs/Exhibitions etc.

Equity Participation:Equity Participation:KSFL

"KRIBHCO Shyam Fertilizers Limited (KSFL)" is a joint venture company of KRIBHCO and M/s STL Fertilizers Pvt. Ltd. which operates the Shahjahanpur Fertilizer Complex in UP. The shareholding of KRIBHCO in the equity of KSFL is 85%. i.e. Rs. 7202.9 million. The management and marketing rights of the entire urea produced by KSFLarewith KRIBHCO.

GSEG

Gujrat State Energy Generation Ltd. is a joint venture company with Gujarat State Petroleum Corporation Limited (GSPCL), other Government of Gujarat companies, KRIBHCO and GAIL India Ltd. GSEG is operating a 156 MW Gas based Combined Cycle Power Plant at Mora, (Surat) and is also implementing 350 MW expansion project. KRIBHCO holds 27.48% of share capital in GSEG.

OMIFCO

KRIBHCO has invested US$ 69.5 Million (Equivalent to Rs. 3285.3 million) as equity in Oman India Fertilizer Company (OMIFCO) representing 25% of paid up equity capital of OMIFCO. The Project was completed in July 2005 at a cost of US$ 892 Million.

Others

The Society has entered into Investor Share Subscription Agreement with IBFSL, MMTC and ICEX on 19.09.2009 for acquiring 5% equity stake at par in the above company. Accordingly, the Society has contributed Rs.5.00 crore as equity in ICEX.

PERFORMANCE HIGHLIGHTSPERFORMANCE HIGHLIGHTS

Highest Ammonia Production 1157905 MT(Previous best was 1128926 MT during 2005-06)

Highest Urea Production 1840856 MT(Previous best was 1806500 MT during 2005-06)

Highest Argon Production 5921616 NM³(Previous best was 4244577 NM³ during 2008-09)

Highest Seed Production 2.48 Lakh Qtls.(Previous best was 2.29 Lakh Qtls. During 2009-10)

Highest Total Fertilizers Sale 42.10 Lakh MT(Previous best was 40.51 Lakh MT during 2009-10)

Highest Seed Sales 2.47 Lakh Qtls.(Previous best was 2.22 Lakh Qtls. During 2009-10)

Highest KBSK Turnover ` 114.46 Crore(Previous best was ` 74.79 crore during 2009-10)

Highest Operational Profit of Traded Products ` 80.98 Crore(Previous best was ` 38.77 crore during 2009-10)

BYE-LAWSOF

KRISHAK BHARATI COOPERATIVE LIMITED

1.NAME AND ADDRESS

(i) The name of the Multi-State Cooperative Society shall be KRISHAK BHARATICOOPERATIVE LIMITED (hereinafter called KRIBHCO).(ii) Its Registered office shall be at 49-50, Red Rose House, Nehru Place, NewDelhi-110 019.

COMMON SEAL

(i) KRIBHCO shall have a Common Seal. The Common Seal shall be kept in thesafe custody of the officer authorized by the Board. The Common Seal shallnot be affixed to any instrument except on the authority of a Resolution of theBoard of Directors, or, of the Executive Committee of the Board constitutedunder Bye-law No.51 and except in the presence of any two Directors, whoshall sign every instrument to which the Common Seal is affixed.

(ii) KRIBHCO shall be a body corporate and shall have the power to acquire, holdand dispose of property, both movable and immovable, enter into contract,institute and defend suit and other legal proceedings and to do all thingsnecessary for the purpose of furthering the interests of its members based oncooperative principles. KRIBHCO shall conduct its operations in aprofessional and commercial manner to ensure the social and economicdevelopment of its members and optimum returns to its members on theircontributions in KRIBHCO.

DEFINITIONS

The words/expressions appearing in these Bye-laws shall have the followingmeaning unless otherwise provided:-

(i) “ACT” means the Multi-State Cooperative Societies Act, 2002.

(ii) “RULES” means rules framed under the Multi-State Cooperative SocietiesAct, 2002.

(iii) “CENTRAL REGISTRAR” means the Central Registrar of CooperativeSocieties appointed under Sub-Section (1) of Section 4 of the Act, andincludes any office empowered to exercise the powers of the CentralRegistrar under Sub-Section (2) of that Section of the Act.

(iv) “APEX COOPERATIVE FEDERATION” means a federal CooperativeSociety whose area of operation extends to the whole of State or UnionTerritory.

(v) “APEX COOPERATIVE MARKETING FEDERATION” means a federalCooperative Society engaged in the marketing, processing of agriculturalproduce and supply of production requisites and consumer goods and the areaof which extends to the whole of a State or a Union Territory.

CONT....

(vi) “NATIONAL COOPERATIVE FEDERATION” means a federalCooperative Society whose area of operation extends to the whole of IndianUnion with membership including apex societies.

(vii) “REGIONAL COOPERATIVE SOCIETY” means a federal CooperativeSociety whose area of operation extends to more than one district or morethan one State or a Union Territory.

(viii) “DISTRICT COOPERATIVE SOCIETY” means a federal CooperativeSociety whose area of operation extends to the whole District.

(ix) “SOCIETY” means a Cooperative Society registered under the CooperativeSocieties Act applicable to the State or a Union Territory in which it isEstablished.

(x) “TRIBAL COOPEATIVE FEDERATION” means a federal CooperativeSociety whose area of operation extends to whole of State/Union Territory ormore than one District in a State and whose main objects include promotionof economic interests of the tribal population in the area.

Cont.......

(xi) “TRIBAL COOPERATIVE DEVELOPMENT CORPORATION” means aCorporation created by State legislation whose area of operation extends tothe whole of State/Union Territory or more than one district in a State

(xii) “DELEGATE” means a person who is duly nominated by a membersociety/institution or elected by member Cooperative Societies.

(xiii) “GENERAL BODY” means a body of duly nominated/electedrepresentatives of members and constituted in accordance with these Byelaws.

(xiv) “BOARD” means Board of Directors of KRIBHCO constituted in terms ofthese Bye-laws.

(xv) “EXECUTIVE COMMITTEE” means the Executive Committee constitutedby the Board of Directors in terms of these Bye-laws.

(xvi) “SUB-COMMITTEE” means a Committee constituted by the Board ofDirectors or Executive Committee to undertake specific tasks.

(xvii) “MANAGING DIRECTOR” means a person appointed as per the provisionsof the Act, the Rules and these Bye-laws as the Chief Executive Officer ofKRIBHCO.

(xviii) “SHARES” means a share in the share capital of KRIBHCO.

AREA OF OPERATION

The area of operation of KRIBHCO shall extend to the whole of the Indian Union.In the interest of its members and its business, KRIBHCO may extend its operations beyond the Indian Union.

OBJECTS

(a) The objects of KRIBHCO shall be to promote the economic interest of itsmembers by undertaking the business of manufacture, production,development, processing, conversion, sale, distribution, marketing, import,export, trade or otherwise deal in, store, or transport, build, construct, fabricateor otherwise turn to account, in India and abroad of chemical fertilisers, biofertilisers, man made fibres, detergents, soaps, chemicals, petro-chemicals,refining, hydrocarbons, drugs and pharmaceuticals, industrial products,cement, steel, electronic products, satellite receivers, pesticides, seeds,agricultural machinery and implements and other agricultural inputs/outputs,agricultural items, agro-based industrial items, food products, aquaculture,forestry products, power generation and distribution from conventional or nonconventional energy sources, automobiles, breweries, housing and real estate, construction and fabrication, and to provide/undertake the business of oilexploration, communication and telecommunication, information technology,shipping, trading, banking and insurance and to undertake such other activitieswhich are conducive and incidental thereto.

(b) In furtherance of these objectives, KRIBHCO may

AREA OF MEMBERSAREA OF MEMBERS MEMBER

(a) No individual shall be eligible for membership of KRIBHCO. The Membership of KRIBHCO will be open to the following:

(i) National Cooperative Federations of agricultural credit/ marketing/processing/ supply and other agricultural Cooperative Societies;

(ii) Apex Cooperative Federations of agricultural credit/ marketing/ processing/supply and other agricultural Cooperative Societies at the State and Union Territory level;

(iii) Regional and District Cooperative credit /marketing/ processing/ supply and other agricultural Cooperative Societies;

(iv) Primary agricultural Cooperative credit/ marketing/ processing/ supply and other agricultural Cooperative Societies including sugar factories, cane unions, dairy cooperatives, farmers service societies etc.

Cont.........

(v) Consumers’ Cooperatives at various levels engaged in the sale of fertilisersand other agricultural production requisites;

(vi) Tribal Cooperative Federations and Tribal Cooperative DevelopmentCorporations engaged or designed to engage amongst others in the sale offertilisers and other agricultural production requisites;

(vii)National Cooperative Development Corporation;

(viii) Govt. of India,

(ix) Other Government Organisations/ Undertakings engaged or designed toengage in the sale of fertiliser or other agricultural production requisites;

(x) Public Financing Institutions;

(b) Nominal membershipAdmission of MembershipRights of MembershipNominee of MemberWithdrawal from membershipRemoval of a memberFine, Suspension and Expulsion of a MemberCessation of MembershipPayment to a Member Withdrawing, Removed or ExpelledLiability Funds

SHARE CAPITALThe authorised Share Capital of KRIBHCO shall be Rs.500 crores consisting of:-

(i) 44,000 shares of Rs.1 lakh each;(ii) 16,000 shares of Rs.25,000 each;(iii) 20,000 shares of Rs.10,000 each.

APPLICATION FOR ADMISSION AND ALLOTMENT OF SHARES

Application for admission as a member of KRIBHCO shall be made to theManaging Director in the form, if any, specified by KRIBHCO for the purpose.14. Atleast twenty-five per cent of the value of shares to be subscribed by the applicantand the admission fee shall be remitted alongwith the application.

Swot AnalysisStrength Kribhco is having Sound financial position. The Management of Kribhco is very professional. Kribhco has larger proportion of reserves and surplus and further it has nodebt capital. Kribhco has long standing reputation in the Indian Fertilizer Market. Staff of Kribhco is very co-operative and hard working.g a full support of the Government of India.g network towards country. High Production capacity of Kribhco leads to low production cost.Thus, we can say that the position of Kribhco in the Fertilizer Market isSatisfactory.Weaknesses Government interference in the management is more comparatively privateunits. Due to Government’s interference it takes longer time in decision making.So the decisions delayed and thus sometimes bias decision are also taken. Kribhco is having overstaffing. Kribhco is having demotivated employees because of job security andsafety.Thus, we can say that the Kribhco will must be careful regarding its staffand to government also.Opportunities Investment in Oman Project will raise the profit of Kribhco. Expansion of existing plant at Hazira.- 134 - Look for newer Market with diversified product. Diversifying the business.Threats The price of the Row material, i.e. Natural Gas, is increasing continuously. There is a chance of sharp reduction in Government subsidy in near future. Kribhco is having very little market share. In the era of Free Trade, the import of fertilizers may affect the business ofthe Kribhco.

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