GSFC MBA Porject Report Prince Dudhatra

8/6/2019 GSFC MBA Porject Report Prince Dudhatra

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DECLARATION

I, the under undersign. BHUVA HIREN J. the studentof T.Y.B.B.A. of Smt. M. T. DHAMSANIA COMMERCE

COLLEGE. I here by declare that the project report

presented before you is my own preparation and

completed under the supervision of PROF. DR. MANISH M.

THAKER of Smt. M. T. DHAMSANIA COMMERCE COLLEGE

I also assure that this project work has not been

submitted to any other university or examination

previously.

DATE :-

PLACE :- RAJKOT

(signature)

Bhuva Hiren J.

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PREFACE

It is my pleasure & opportunity to present the projectreport of industrial training at GSFC Ltd., before you. As a

part of our study of T.Y.B.B.A each student has to impart

15 days practical training from good business concern, and

prepare a project on it.

Not only from examination point of view, but also

from acquisition of practical knowledge aspect, suchpractical training helps a student a lot of improve and to

be more clear about practice of management theories.

It is really an opportunity when then unit is such a

large and professionally managed one. Hence I chose

GSFC Ltd., for my training. The company which has been

continuously developing and expanding through

diversification as well as modifications. Thus it incorporates

various departments relating to various aspects of

business. GSFC Ltd., has given most importance to

training. It has well-established TRAINING INSTITUTE at

companys head office premises and such environment

becomes a supportive and motivating factor for trainees.

Practical training has always been beneficial to the

trainees as the concept change of a particular trainee after

procuring training.

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ACKNOWLEDGEMENT

I am glad to present this report before you as theopportunity given by Saurashtra University, in such

previous training for that I express heartily gratitude to

the college for providing me this opportunity to under go

this orientation-training program. I am extremely thankful

to PROF. DR. MANISH M. THAKER for his excellent

guidance and inspiration, which leads success in all aspect.First up all I am very thankful to my parents who

gave opportunity to me to join in B. B. A. Course and

gave permission to take industrial visit of GSFC Ltd., I am

highly thankful to who permit me to take visit of their

industry.

The study matters is not important in only theory

portion, but at a time practical aspects is much more

important, I hold observed the total information and

expressed in my own language. I am very appreciative to

all of you.

DATE :-

PLACE :- RAJKOT(signature)Bhuva Hiren J.

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INDEX

SR.NO PARTICULARS PAGENO.

1. GENERAL INFORMATION 52. PRODUCT INFORMATION 21

3.MARKETING

DEPARTMENT 304. CHANNELS OF DIST. 40

5. MARKETING RESEARCH 566. ANALYTICAL & FINDING 637. CONCLUSION 818. SWOT ANALYSIS 839. SUGGESTION 84

10. LIMITATION 8511. FUTURE PLAN 8712. BIBLIOGRAPHY 8813. QUESTIONNAIRE 89

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CONTENT

NO. PARTICULAR PAGE

1. INTRODUCTION 72. GSFC BACKGROUND 93. PHASE WISE DEVELOPMENT 114. FORMAL INFORMATION 135. TIME KEEPING SYSTEM 15

6. EMPLOYEES AND THEIR FACILITY 167. ACHIVEMENTS 178. ORGANISATION STRUCTURE 189. SIZE & FORM OF ORGANISATION 19

10. CONTRIBUTION TO INDUSTRY 20

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INTRODUCTION

Fertilizer industries present the best example of aclose linkage between industry and agriculture. The growth

of agriculture in India since independence has been

synonymous with the rapid growth of fertilizer industry.

Hence the need for fertilizer was found with more attention

after independence.

India is an agro-based economy & hence fertilizerindustry is the base for progress of India. Not only fertilizer

industry, but with fertilizers chemical industry plays a

dominant role in development of any economy.

Fertilizers and chemical in general have become part

& parcel of our day-to-day life. Fertilizers are the first

necessity to increase the productivity of agriculture .Out of

many ways of increasing agriculture productivity like soil

conservation, fertilizers and irrigation; fertilizers are the

most suitable for the framers. The framers get benefited

through retention prices. As against the demand of

fertilizers, the production is very less in the country,

hence; fertilizer industry shall always be a growing

industry. Fertilizer industry is a part of chemical industry

hence the development of fertilizer industry depends on

the development of the chemical industry. Not only

fertilizer industries, but others like drugs, dye stuffs,

paper, synthetic rubber, plastic polestar, prints,

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petrochemical, detergent, etc industries are provided base

by chemical industry.

The company has varied products and diversification

as well as growth strategy. It has been basic to Indias

progress not only because of its inception immediately

after independence. But on one hand it has helped in

production of strong needed (ESSENTIAL COMMODITY)

fertilizers as well as the chemical products and on the

other hand has provided employment to thousands of

people. Such employment is not only limited to companys

own premises but all other industries whose growth has

been fostered with development of this fertilizers &

chemical company are benefited through if. On the one

side farmers get easy availability of fertilizers through

companys unique marketing network strategy, majority of

chemical based industries are dependent on the production

of GSFC Ltd. as well as it has been a specially desirable

industry who serves the society in many ways.

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GSFC BACKGROUND

On formation of a separate state of GUJARAT in 1960.Fertilizer producing plants went to the Maharashtra &

Gujarat States had no plant producing chemical fertilizers.

State of Gujarat was deficit state in agriculture production.

Hence a need was found of chemical fertilizers producing

unit in Gujarat itself. Fertilizers being agro industry has

ample chances for growing & developing. Further by whenoil & gas were discovered camebay & ankleshwar region in

the state & Gujarat refinery was set up producing Naphtha

& other petroleum products, the basic raw materials

required in fertilizer production.

With the availability of raw materials and other

infrastructure facilities Govt. of Gujarat decided to set up afertilizer plant But it is all the control in the hand of central

government.

Accordingly GSFC Ltd. having registered office at

fertilizer nagar, District VADODARA was incorporated on

15th February 1962 in joint sector viz. government of

GUJARAT FINANCIAL INSTITUTION and farmers

participating in it.

In 1964-65 works partying to the acquisition of land

& building were done on turkey basis. A contract was

signed with a JAPANESE company for foundation the

companys infrastructure. If started supplying used D.A.P.

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(DIAMMONIUM PHOSPHATE) to farmer. Within a very short

time on 5th June 1967.

The use of IDBIs assistance judiciously and excellent

performance of first phase plant laid sound financial base

for company. GSFC Ltd.s total investment for first and

second phase programmer was round 63 crores.

It was initially to make intended only fertilizers so the

name was GSFC Ltd. but it has now diversified into a king

industrial & chemical product like carbolated, Nylon,

Ammonia, Argon & many types of acids. So its name was

changed along with its diversification programmers on step

1996. It was now named GUJARAT STATE

FERTILIZERS & CHEMICALS LTD .

GSFC Ltd. is country is first fertilizer unit to be

assisted by IDBIs development assistance found.

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PHASE WISE DEVELOPMENT

GSFC Ltd. has got phase wise development. Since itsfirst phase plants it has been expanding and developing

continuously.

PHASE 1

The phase - 1 fertilizer plants (both nitrogen &

phosphorus) were established in June 1967 having

capacity of 103200 MT Urea 148000 MT Ammonium

Sulfate (AS) and 108000 MT Di-Ammonium Phosphate

(DAP) at capital cost of Rs.40 crores.

PHASE 2

Within a short period the co expanded its activities

and phase 2 fertilizer plants were commissioned in June

1969 at Rs.22 crores with capacity with capacity of 264000

Mt Urea. In August 1974, the co diversified its activity by

establishing arolactum plant of 20000 MT at an investment

of Rs.34 Crores.

Further diversifications were resorted when purge gas

recovery plant was established in December 1980 at Rs. 8crores, Nylong-6 plant in December 1981 at Rs. 13 crores,

Melamine plant in December 1982 at Rs. 15 crores, new

sulfuric acid plant in December 1981 at Rs. 5 crores and

oxen synthesis Gas plant in August 1982 at Rs. 4 crores.

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GSFC - PCGL MERGER

From 1-1-1983 to company look over POLYMER

CORPORATION OF GUJARAT Ltd. (PCGL) and PCGL

government in 1979 at the cost of Rs. 16 crores. Based on

know how of M/s Mitsubishi Rayon corporation of Japan,

the PCGL plant produces methyl methacrylate monomer.

In December 1986, GSFC established costal DAP

plant at Moti-khavadi near Sika; district Jamnagar at the

cost of about Rs.95 crores. In March 1989 the co.

established generation 1 plant producing steam & power at

the cost of Rs. 32 crores.

The company has taken over Gujarat Nylon ltd. (GNL)

situated at Surat from 1- 4 -1990. While GNL is termed ascompanies fiber unit.

The company has undertaken massive expansion

phase-1 of 50000 MT caprolactum Expansion and phase-

2 of 50000 Mt new Ammonia plant of 1350 MTD. Melamine

expansion.

The caprolactum expansion phase-1 is presently infull swing.

GSFC Ltd. has also contributed 40% share in equity

capital in Gujarat power industry ltd. In setting up 120

M.W. power plant near Baroda.

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FORMAL INFORMATION

BOARD OF DIRECTORS

P. K. LAHERI (CHAIRMAN)

Dr. MANJULA SUBRAMANIUM

SUDHA ANCHALIA

BALWANT SINGH

N. R. KRISHNAN (UTI-NOMINEE)

R. S. AGARWAL (IDBI)

S. R. VENGSARKER (ICICI-NOMINEE)

A. K. LUKE (MANAGING DIRECTOR)

EXECUTIVE DIRECTORS

C. R. RAO

A. K. VIJAYKUMAR

GAUTAM SEN

COMPANY SECRETARY

V. D. NANAVATY

STATURY AUDITORS

M/s. GHIYA & CO., JAIPUR.

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BANKERS

BANK OF BARODA

STATE BANK OF INDIABANK OF INDIA

ICICI BANK

CENTRAL BANK OF INDIA

DENA BENK

PUNJAB NATIONAL BANK

INDIAN OVERSEAS BANKHDFC BANK LTD.

VIJAYA BANK

REGISTRARS & TRANSFER AGENTS

M/s. N.C.S. Ltd.,PRODUCITIVITY ROAD, BARODA-390 007 .

REGISTRED OFFICE

P. O. FERTILIZERNAGAR-391 750,

DISTRICT :- VADODARA,

GUJARAT.

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TIME KEEPING SYSTEM

GSFC Ltd. has adopted card-punching system. Thereare many workers and all have their entrance personal

cards. Which inform their presence is recorded in the

register. Employee who comes after the grace period. It

counted as his half of working day & lae coming memo is

issued by time office to the concerned employee.

LEAVE POLICY :-

1. Public holidays 10 Days

2. Causal leave 14 Days

3. Ordinary leave 30 Days

4. Restricted leave 2 Days

5. Sick leave 15 Days

TYPES OF SHIFTS :-

1. First Shift 6.00 a.m. to 2.00 p.m.

2. Second Shift 2.00 p.m. to 10.00 p.m.

3. Third Shift 10.00 p.m. to 6.00 a.m.

4. General Shift 8.00 a.m. to 5.00 p.m.

GSFC adopted perfect time keeping system because

of their time keeping system they can know easily regular

information of workers. It doesnt give more than 50 hrs.

Overtime facility for any workers.

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EMPLOYE & THEIR FACILITIES

GSFC Ltd. having about 6000 employees, out of them85% are skilled & semi skilled workers & 15% are

unskilled.

The following services are provided to the G.S.F.C.

employees.

HOUSING FACILITIES

MEDICAL FACILITIESTRANSPORT FACILITIES

CANTEEN FACILITIES

CULTURAL ACTIVITIES

LONG SERVICE AWARDS

EDUCATION FACILITY

LOAN FACILITY

BONUS FACILITY

TRAINING FACILITIES

OTHER BENEFITS

Thus, the services provided to its employees are at

no. Of cost or significant reduction in cost from what

actually might have to be paid. Thus, co. provides good

facilities services & benefits to its employee.

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ACHIEVEMENTS

It is a matter of pride that under review, companyreceived two international awards in the field of safety in

the year 1998.

National safety council USA gives AWARD OF

HONOUR to the company.

The production safety council, U.K. was also given

awarded for EXCELLANCE IN SAFETY .

Following is the list of awards that company gets in

the past.

1. Company got ICMA AWARD in 1976 for forward

development technology & progress in chemical industry.

2. Company got FAI AWARD for best performance in

phosphates production.

3. Company got NP AWARD in 1980 for best

performance in productivity.

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ORGANITION STRUCTURE

Organization structure or organization chart is animportant tool for understanding of position of members. It

also shows responsibility and authority of different

members in the organization. It shows the relationship

between top management & employments.

There are 10 departments in GSFC1. Training institute

2. Personnel Department

3. Marketing Department

4. Finance & Accounting Department

5. Application Development Center

6. Materials Department

7. Stores Department

8. Fire & Safety Department

9. Production Department

10. Research & Development Department

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SIZE & FORM ORGANISATION

GSFC Ltd. is the large-scale unit for producingfertilizers in our country. It is first joint sector industrial

undertaking in the care sector in India. Its use of both

public as well as private sector. These benefits are

efficiency of private sector and implementation and liberal

members of board of directors. Government of Gujarat

nominates 1/3 of members.1 member is nominated by IDBI.

6 Member are to be elected a Rotation basis. The

Gujarat Government has the power to appoint the

managing director and the chairman of the company.

Thus it is a large-scale unit & joint sector.

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CONTRIBUTE TO INDUSTRIES

GSFC ltd. has achieved a great success in India aswell as abroad. It is Indias successful joint sector. It has

achieved many significant landmarks, which are as

follows :-

1. First joint sector industrial complex in India.

2. First to manufacture DAP (Di-ammonium phosphate)

3. First to adopt steam Naphtha reforming process for

manufacturing Ammonia.

4. First to set up coprolite plant in India.

5. First to utilize indigenous Rock phosphate from

manufacturing of phosphoric acid.

6. First to recover argon from synthesis gas.

7. First to establish the melamine plant in India.

8. First to set target in agriculture production.

9. First to carry out promotion activities for its fertilizer

products by carrying out field experiments.

10. GSFC Ltd. gives a large employment thus; it removes

the problem of unemployment in our country.

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CONTENT

NO. PARTICULAR PAGE

1. RAW MATERIAL CONSUMPTION 23

2. PRODUCTION CAPACITY 243. DETAILS OF PRODUCTS 254. PRODUCT MIX 28

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RAWMATERIALCONSUMPTION

FERTILIZERNAGAR :-1. Rock phosphate

2. Sulfur

3. Naphtha

4. Gas

5. Benzene

6. Ammonia

7. Cyclohexanone

8. Polymer unit acetone

9. Hydro cyanic Acid

10. Methanol

11. Imported Monomer

SIKKA UNIT :-

12. Ammonia

13. Phosphoric Acid

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PRODUCTION CAPACITY

PRODUCT INSTALLED CAPACITY

PER ANNUM (MT)-Ammonia 445500-Urea 364000-Ammonium phosphate 108000-Corprolactum 7000-Nylon 6 chips 7000-Sulfuric acid 132000

-Melamine 15000-Ammonium sulfate 10000-Nylon chips-fibre 2000

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DETAILS OF PRODUCTS

GSFC Ltd. Having a wide range of products.Following are the uses & details of some main products.

FERTILIZER PRODUCTS

SARDAR UREA :-It is a straight nitrogenous fertilizer consisting 46%

nitrogen GSFC has two urea plants with a actual

production of 3-4 lacks (MT) main raw material for urea

are Ammonia & Carbon dioxide.

USES :-

It is used as nitrogenous fertilizer. In processing of

cotton textile it is used as raw material. It is also used as

raw material for chemical product dyes & pharmaceuticals.

SARDAR AMMONIUM PHOSPHATE :-

This is also straight nitrogenous fertilizer consisting

20.6% of nitrogen. GSFC ammonium sulphate plant has

actual productivity of 1.06 to 1.7 lacks ammonia, sulfuric

acid & gypsum.

USES :-

It is used in pharmaceuticals.

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SARDAR DIAMONIUM PHOSPHATE (DAP) :-

It is complex fertilizer consisting 18% nitrogen & 46%

phosphorous. GSFCs DAP plant has actual production in

BARODA is 1.2 lacks(MT). The main raw materials are

ammonia & phosphoric acid.

USES :-

It is used as nitrogenous and phosphorous fertilizer.

And requirement of soil, it is mixed with other fertilizer. It

is generally used with other fertilizers.

INDUSTRIAL PRODUCTS

MELAMINE :-

USES :-

It is used in lamination. Lamination for tabletop,

kitchen platform, wall cladding. And it is also used in

textile auxiliaries for melamine resin. Helps for consumer

molded goods for bowls, spatulas, crockery, and cutlery

items. And also in adhesive used for adhesive melamine.

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NYLON 6 :-

USES :-

It is used in Precision engineering components,

components for electrical and electronic goods and also for

packaging of good, stuff vegetables, for hard ware building

and furniture industries.

SULPHERUC ACID :-

USES :-It is used in production of fertilizer, and also in

Rayon, and also in steel industry. It is also being used in

Synthetic industries. And also used for making detergents.

ACRYLIC SHEETS :-

USES :-It used for light fitting. Its covers the streetlight, and

also in sanitary articles. For better used in signboard &

novelties.

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PRODUCT MIX

SR.NO. PRODUCTA. FERTILIZER PRODUCTS

1. Urea2. Ammonium Sulphate3. Di-ammonium Phosphate4. Ammonium phosphate sulphate

B. INDUSTRIAL PRODUCTS5. Caprolactum6. Melamine7. Nylon 68. Monomer9. Pellets

10. Nylon chips11. Ammonia12. Sulfuric acid13. Hydroxylamine Sulfate

C. GARDEN FERTILIZER 14. Rose Special15. Vegetable Mix16. Lawn Mix17. Flower Mix

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D. GASES18. Argon, Argon-1, Argon-219. Waste Liquor20. Oxo Synthesis Gas

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CONTENT

NO. PARTICULAR PAGE

1. INTRODUCTION 32

2. FERTILIZERS MARKETING 34

3. MARKET SEGMENTATION 35

4. MARKETING MIX STRATEGY 36

5. PRICE STRUCTURE 37

6. MARKETING STRUCTURE 39

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INTRODUCTION

Driving force for the success of any corporate isgreased through its marketing blue print in the words of

WILLIAM STATION. Marketing is a total system of

interacting business activity designed to plan, price,

promote and distribute want satisfying and services to

present and potential customers.

Consumer oriented philosophy is a triple edgedweapon of profitability, Liquidity and customer satisfaction.

It has been accepted that ABILITY TO PRODUCE DOES

NOT ALWAYS GUARANTEE SUCCESS, ABILITY TO SELL AT

A PROFIT IS A REAL TEST.

Todays companies hold social marketing concept i.e.

the organizations task is to determine the needs, wants

and interests of target markets and to the desired

satisfactions more effectively than competitors in a way

that preserves or enhances the consumers & societys well

being.

Past marketing has been largely transaction oriented,

today it is more relationship oriented.

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GSFC Ltd. has mainly two kinds of marketing

activities, which are totally difficult from each other

i.e. INDUSTRIALMARKETING and FERTILIZER MARKETING

NEED FOR INDUSTRIAL MARKETING: -

Most industrial companies do not spend much time

contemplating the future. A Comfortable performance in a

sheltered made many organizations complacent. But

increasing consumer expectations coupled with competitive

pressures are forcing companies to rethink.

NEED FOR FERTILIZER MARKETING: -

There is constant evolution in the patterns of

agriculture and hence the need of fertilizers has been

increasing with the fast development of marketing has also

increased with development of education as increased with

development of education as well as in no of fertilizers

industries.

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FERTILIZER MARKETING

GSFC Ltd. is one of the leading co. in the field of

fertilizers production. In India it was first too effective

fertilizer plants with manufacture DAP complex fertilizer in

India. Fertilizers marketing are being totally different kind

of product differs from other consumer products. Fertilizers

are regarded as consumer products because they are

provided only to the farmers.

The key area of fertilizer marketing is proper

information & guidance to the farmers regarding use of

fertilizers. Very strong brand image & corporate image of

GSFCS fertilize makes it easy on the part of management

to deal with their valuable consumers.

The consumers of fertilizer are farmer i.e. ruralbuyers need the following areas of attention.

1. Quality goods

2. Timely and adequate amount from nearby areas.

3. Education regarding use of different fertilizers.

4. Reaching to consumers heart by advertising as well as

educating them in their own language.5. Proper guidance in agricultural production.

6. Pricing which the consumers can afford i.e. by retention

price scheme.

7. Demonstration on farmers field as well as personal

meeting with them.

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MARKET SEGMENTATION

Market segmentation is the process of dividing a totalmarket into groups. Market Segmentation involves,

Segmentation of Market, Selecting the target market and

Positioning of the product in the target market. i.e. market

segmentation aims at develop distinct & differentiated

marketing program for each sub group, order to enhance

customer satisfaction.Instead of mass marketing, target marketing is the

best marketing Way & such target market is based on

market segmentation.

GSFCS MARKET SEGMENTS :-

Gujarat(primary market)

Rajasthan, M.P., Maharashtra(Secondary Marketing)

Punjab, Hariyana, A.P., Karnataka(Secondary Marketing)

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MARKETING MIX STRATEGY

PRODUCT :-Product is the basic component of the product mix

elements. All the marketing efforts will fail in absence of a

strong product base of any firm. Because if a product is

anything that can be offered to a market for attention,

acquisition, use or consumption that might satisfy a want

or need.

PRODUCT LINE :-

1. Urea

2. Ammonium Sulfate (AS)

3. Di-Ammonium Phosphate (DAP)

4. Ammonam Sulphate Phosphate (ASP)

BRAND NAME SARDAR

By providing quality goods and offering a variety of

products in the same product line, there can be value

addition to the customers, here GSFCs fertilizers stand for

quality as well as they are providing in proper quantity.

DAP & UREA is the most popular among all.PACKAGING :-

Generally, they used 50 kgs. Plastic bags for packing.

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The company has to make claim to the government of

India, which is turn claims to government of Gujarat. In

this way the company gets the difference from

government of Gujarat / FICC. The difference between the

retention price & cost price of the fertilizer is called

GOVERNMENTSUBSIDY.

CALCULATION OF GOVERNMENT SUBSIDY :-

COST OF PRODUCTION

-RETENTIONPRICE = DIFFERENCE (it is to be subsidized)

In this way the remaining amount of cost of

production is given / paid by the government to the

company.

SUBSIDY=REMAINING CAPACITY + 12%

POST TAX MARGIN .

Government of the India also compensate cost of

freight for which separate claim bill is preferred every

month based on provisional freight fixed initially and then

as per the final rates fixed by FICC.

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MARKETING STRUCTURE

HEAD OFFICE

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GUJARATZONE

SOUTHZONE

NORTHZONE

REGIONALOFFICEBHOPAL

PUNABANGLOREHYDRABAD

REGIONALOFFICEABAD

RAJKOTSURAT

NADIAD

REGIONALOFFICEJAIPUR

CHANDIGADH

LAKHANAU

AREAOFFICERS

AREAOFFICERS

AREAOFFICERS

WAREHOUSES

WAREHOUSES

WAREHOUSES


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CONTENT

NO. PARTICULAR PAGE

1. INTRODUCTION 42

2. FACTOR AFFECTING 44

3. CHANNEL LEVELS 45

4. DISTRIBUTION CHANNEL IN

GSFC

47

5. PHYSICAL DISTRIBUTION IN

GUJARAT

50

6. PHYSICAL DISTRIBUTION IN

OUT OF GUJARAT

51

7. MARKET LOGISTICS DECISION 52

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INTRODUCTION

Most producers do not sell their goods directly to the

final users. Between them stands a set of intermediaries

performing a variety of functions. These intermediaries

constitute a distribution channel. Such intermediaries are

wholesalers & retailers brokers, manufactures

representatives, sales agents, transportation companies,

warehouses, banks, advertising agencies etc.

Distribution Channel indicates route or path through

which goods and services flow or move forward from

producer to consumer. Thus, it consists all activities

directed to distribute product from manufacture to final

user.

Marketing or distribution channel decisions are among

the most critical decisions facing management. The

channels chosen intimately channel decisions involve

relatively long term commitments to other firms.

A distribution system is a key external resource.

Normally it takes years to build, and it is not easily

changes. So, while taking decision or formulating channels.We should take care and we should consider all factors.

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REASONS FOR USING INTERMEDIARIES :-

1. Some cases direct marketing simply is not possible.

2. Producers who establish their own channels can often earna return by increasing their investment in their main

business.

3. They gather information about potential and current

customers, competitors & other sectors and forces in the

marketing environment.

4. They assume risk connected with carrying out channel

work.

5. They provide for the successive strong and movement of

physical products.

6. They oversee actual transfer of ownership from one

organization or person to another.

7. The channel of distribution helps in stabilizing price and

product by stocking goods and balancing demand &

supply.

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FACTOR AFECTING CHANNELSOF DISTRIBUTION

The best channel decision is one that works best in

marketing strategy selected by the company. The channel

chosen should achieve ideal market exposure & should

meet target customer need 7 preferences. In choosing

channel of distribution producer always have to struggle

with what is ideal and what is available.

The channel choice are influenced by general factors

such factors may be classified as factors relating to

1. Product Characteristic.

2. Companys Characteristic.

3. Consumers Characteristic.4. Middlemen Consideration.

5. Environment Characteristics.

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CHANNEL LEVELS

Each intermediary performs work in bringing theproduct and its title closer to final buyers constitute a

channel level since the producers and final customers both

perform work, they are part of every channel. There are

several number of channels levels used.

ZERO LEVEL CHANNEL :-It is also called direct channel. It consists of

manufacturer selling directly to the final consumer.

ONE LEVEL CHANNEL :-

It contains one selling intermediary, seen as a

manufacturer-retailer-consumer.

TWO LEVEL CHANNEL :-

It contains two intermediaries i.e. manufacture-

wholesaler-retailer-consumer.

THREE LEVEL CHANNEL :-

It contains three intermediaries i.e. manufacturer-

dealer-wholesalers-retailers-customer.

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CHANNEL LEVEL :-

0-LEVEL 1- LEVEL 2- LEVEL 3- LEVEL

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Manufacturer

Manufacturer

Manufacturer

Manufacturer

Dealer

Whole-Sellers

Whole-Sellers

RetailersRetailersRetailers

Consumer Consumer ConsumerConsumer


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DEPOTS: -

Company has around 200 depots or its own in

Gujarat. The company appoints first class agriculture

graduates to manage such depots. Such managers also

conduct demonstration for farmers and given instruction &

guidelines regarding it are growing.

GSFC Ltd. nearly sales 50% of its production through

these depots.

PRIVATE TRADE: -

The company also sells through dealers & retailers.

This is done in two ways.

1) Two tier basis :- Private trade

:- District retailer

2) Three tier basis :- Private trade

:- District retailer

:- District dealers

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DISTRIBUTION CHANNEL IN ALL OVER INDIA

DISTRIBUTION CHANNEL IN GUJARAT :-

(49)

PRODUCT

UNITFERTILIZERNAGAR

FIELDGODAWN

INDUSTRIAL

AGENCY & CO-OPR.SOC.

VILLAGELEVEL

TALUKALEVEL

DISTRICTLEVEL

FARMERS

PRODUCT UNITFERTILIZERNAGAR

DEPOTSFARMERS


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PHYSICALS DISTRIBUTION

There are total 183 departs in Gujarat working underthe offices each depot in charge reports to area officer.

Area officer reports to regional officer and regional officer

report to Gujarat Zone. In current year out of total

production company sale 65% to 60% goods in Gujarat. In

Gujarat distribution of fertilizer is done through various

intermediaries. Its distribution reverse than out-statedistribution.

(50)

GUJARAT

DEPOTS/

WAREHOUSING

CO-OPERATIVE &

AGRO INDUSTRIES

DISTRICTCO-OPERATIVE

TALUKA LEVEL

VILLAGE LEVELFARMERS


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PHYSICAL DISTRIBUTION IN

OUT STATE

In other states than Gujarat most likely channels for

distribution are institutional agency co-operative and

immediate payment dealers. Here private dealers play

major role. 80% sold through private dealers and 20% is

sold through co operative.

(51)

OUTSTATE

PRIVATEDEALERS

CO-OPERATIVESOCIETY

OWNCOUNTRY

FARMERS

SUBDEALERS


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MARKET LOGISTICS DECISION

Four major decisions must be made with regard tomarket logistics.

1. Order processing

2. Ware housing

3. Inventory

4. Transportation

ORDER PROCESSING :-

Fertilizers are a product of scarcity because India is a

country based on agriculture & other are very less

industries in the field of fertilizer in light of its demand. For

this reasoning government has put a total control over

production, pricing, Ordering and Distribution of fertilizers.

GSFC Ltd. Has adopted very simple system for order

placement. There are mainly two reasons for agriculture

plantation i.e. RAVI and KHARIF in both reasons

demand of fertilizer is more.

Urea is controlled by government so, price movement

and quality of urea is controlled by government beforestarts seasons. Government call meeting for production

demand & allocation of urea. State wise at Delhi. Every

month government give one paper in which production,

demand and allocation is mention and this paper is send to

company.

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WAREHOUSING :-

Every company has to store finished goods until they

are sold, because production and consumption cycle rarely

match. GSFC Ltd. has well managed warehouse in various

parts of India. It is also known as Buffer Godawn

company use its own as well as rented warehouses. Expert

staff has been appointed for the management of

warehouses.

GSFC is having as excellent network of warehouses at

various village levels. They are also having space for

storage and direct sales to farmers is made over there. So

that farmers can get fertilizers very easily.

INVENTORY :-

Inventory involves mainly three items1. Raw Materials

2. Work in Progress

3. Finished product

If level of production is low than maintenance of

inventory is quite each but in case of large-scale industry

control process is very different stages for maintenance of product.

Urea is considered durable product because there is

very less chance of becoming no usable for long period of

time. Through GSFC has adopted proper attention towards

inventory control and maintains goods properly. All goods

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are packed in polythene bags, and government has made

certain provision for expire date of fertilizer. This provision

is like no companies can sale fertilizer after expiry of two

years from the date of manufacturing.

TRANSPORTATION :-

Being seasonal product fertilizer need proper and

effective transportation system. At the time of deciding

about mode of transportation on industrial unit have four

options. It is done through road, railway, sea and air.

As for GSFC is concerned it uses two type of

transportation medias 1) Railway and 2) Road

Both the medium of transportation are used after

consideration of other related factor like,

DistanceCost of roads

Position of roads

Government policy

Storage facility

Weather etc.

GSFC use railway for transportation when distance isvery large in states like Uttar Pradesh, Punjab, Hariyana,

Madhya Pradesh, Company uses the railway

transportation.

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GSFC has use road transport for Gujarat and other

places located within limits of 300kms as the company

contract basis. It gives contract to transport companies for

transfer of goods to different departs for selling the

products.

GSFC has requires two types of road transport. It has to

transfer some product direct from factory to nearby depots

sometimes it requires to transfer good from warehouses to

various depots and co operative society. For both type of

transport different contracts are made according to its

requirement.

GSFC has very wide marketing network for providing

proper transport facility. Company has adopted very

efficient and accurate. Procedure for appointing contractors

for road transport using tender method GSFC chooses

Transportation Company.

Thus, distribution helps in value addition

I.e. by -Ensuring easy availability.

-Well-educated & trained intermediaries.

-Effective communication center.-Ensuring timely delivery.

-Ensuring consistency in quality.

(55)


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(56)


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MARKETING RESEARCH

Marketing research of fertilizers differs from that

of industrial products of GSFC. The concentration of

fertilizers marketing research is that of agricultural

production, seasonal variations in such production as well

as problems of farmers. The prices of fertilizers being

controlled. There lies little scope for price research/

moreover most of their information is collected through

their own depots & regional officers.

INFORMATION SOURCES

Agro development & agro Services

Farm information centre

Depot information centrePublic relation department

Regional offices review

Marketing research is not limited up to market

research only. In many ways it has its working line that of

price research. Market research competitors research

customer satisfaction research.

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RESEARCH METHODOLOGY

There is an objective behind every activity has beendone. There may be various objectives behind doing

marketing research. The objectives may be to get the

answer of the questions like who buys such products. How

often do they buy it? Etc. After deciding the objective,

the next step is the research purpose i.e. the method that

will be used for the research purpose.

The different methods for conducting marketing

research are as follows

Opinion pool methods

Survey methods

Personal survey (Questionnaire)

Mail survey

Telephone survey

Expert opinion method

In my report, I have used personal survey method .

The questionnaire was prepared keeping in view certain

objectives.

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RESEARCH OBJECTIVE : -

This first step calls for the marketing research to find

the problem carefully and agree on research objective a

problem well defined is hale solved.

Advertising plays important role to increase sale. But

today no one is going to sale or purchase good if they are

not getting extra benefit. Today is an era of getting extra.

The research is the only way which is helpful in finding out

all the problems. The main objective of my research work

is to find out consumer satisfaction for SARDAR UREA

Fertilizer of GSFC .

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DEVELOPMENT OF RESEARCH PLAN :-

The second stage of marketing research calls for

developing the most efficient plan for gathering the need

information. Designing a research plan calls for decisions

on the followings.

1) DATA SOURCES: - The researcher can

gather primary data as well as secondary data.

Primary data are gathered for a specific purpose and

for a specific research project. The primary source of

my project work is the sample of consumers of the

Rajkot district.

2) RESEARCH APPROACHES: - Primary data

can be collected in five ways: observation, focus

group, survey, behavioral data, and experiments.

Out of these five we have gone for surveys. Survey

researches are best suited of descriptive research to

learn about peoples knowledge, beliefs, preference,

and satisfaction and to measure these magnitudes inthe general population.

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3) RESEARCH INSTRUMENTS: - Marketing

research has a choice of two main researches

instrumental in collecting primary data:

questionnaires and mechanical devices. For a better

option I had gone for questionnaires. A questionnaire

consists of a set of questions presented to

respondents for their answers. Because of its

flexibility, the questionnaire is by far the most

common instrument used to collect primary data.

4) SAMPLING PLAN: - After deciding on the

research approach and instruments, it is necessary to

design a sampling plan. This plan calls for three

decisions:

Sampling unit :

Who is to be surveyed? It should be defined in a

research the target population that will be sampled.

Once the sampling unit is determined, a sampling

frame must be developed so that everyone in the

target population has an equal chance of beingsampled. To fulfill this purpose, I had taken

consumers as a sample.

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Sampling procedure :

How should the respondents to be chosen? To

obtain a representative sample I, had selected

consumers of Rajkot district who prefers urea

fertilizers.

Sampling size :

How many people should be surveyed? Large

samples give more reliable results than small

samples. However, it is not necessary to sample the

entire target population or even a substantial portion

to achieve reliable results. Samples of less than 1%

of the population can often provide good reliability,

given a credible sampling procedure. So, I had

decided to take the sample size as 100 from

consumers of Rajkot district.

(62)


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(63)


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What is your educational qualification?

1 to 7 std. 8 to 10 std.

10 to 12 std. Graduate

.. Finding :-The above chart shows how many respondents are

educated so that they can use fertilizers very effectively.

60% respondents are educated up to 7 std.

18% respondents are educated between 8 to 10 std.

12% respondents are educated between 10 to 12 std.

10% respondents are Graduate.

.. Analysis :-As we can see from the above chart that most of the

respondents are not so much educated.

60%18%

12%

10%

1 to 7 std.

8 to 10 std.

10 to 12 std.

Graduate

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What do you prefer as a fertilizer?

Natural Chemical

Both

11%

26%

63%

NATURAL

CHEMICAL

BOTH

.. Finding :-The above chart shows which kinds of fertilizers are

preferred by respondents.

11% respondents use only natural fertilizer.

26% respondents use only chemical fertilizer.

63% respondents use natural as well as chemical

fertilizer.

.. Analysis :-From the above chart it can be seen that most of the

respondents uses both (natural & chemical) fertilizers.

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Which chemical fertilizer do you prefer mostly?

Urea Potas

D.A.P. Others

72%

12%11%5%

UREA

POTAS

D.A.P.

OTHERS

.. Finding :-

The above chart shows which kinds of chemicalfertilizers are preferred most by respondents.

72% respondents use Urea fertilizer.

12% respondents use Potas fertilizer.

11% respondents use D.A.P.

5% respondents use other chemical fertilizer.


respondents uses urea chemical fertilizers.

(66)


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Which Brand of urea fertilizer do you use mostly?

GSFC GNFC

KRIBHCO IFFCO

Others

.. Finding :-The above chart shows which brands of chemical

fertilizers are preferred mostly by respondents.

52% respondents use GSFC fertilizer.

18% respondents use GNFC fertilizer.

12% respondents use KRIBHCO fertilizer.

15% respondents use IFFCO fertilizer.

3% respondents use other fertilizer.


respondents uses fertilizers of GSFC.

52%

18%

12%

15%3%

GSFCGNFCKRIBHCOIFFCO

OTHERS

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Why do you purchase SARDAR UREA fertilizer?

Water dehydration

Effective growth of crop

More requirement of nitrogenOthers

14%

38%

36%

12%

WATERDEHYDRATION

EFFECTIVEGROWTHOF CROP

MOREREQUIREMENT OF NITROGEN

OTHER

.. Finding :-The above chart shows why chemical fertilizers are

used by respondents.

14% respondents use fertilizer for water dehydration.

38% respondents use fertilizer for effective growth of crop.

36% respondents use fertilizer for more requirement of

nitrogen.12% respondents use fertilizer for other purpose.

.. Analysis :-From the above chart it can be seen that urea

fertilizer is useful for all the way for soil.

(68)


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For Which crop do you prefer SARDAR UREA?

Wheat Cotton

Sugarcane Groundnut

Corn Others

.. Finding :-The above chart shows for which crop, urea fertilizers

are used by respondents.

16% respondents use fertilizer for crop of wheat.

23% respondents use fertilizer for crop of sugarcane.

12% respondents use fertilizer for crop of corn.

20% respondents use fertilizer for crop of cotton.

22% respondents use fertilizer for crop of groundnut.

7% respondents use fertilizer for other crops.

.. Analysis :-Above chart shows that urea fertilizer is useful for all

types of crops.

16%

23%

12%

20%

22%

7%

WHEAT

SUGAR CANE

CORN

COTTONGROUND NUT

OTHERS

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For how many years have you been using SARDAR

UREA fertilizer?

1 to 5 years 5 to 10 years

10 to 15 years more than 15

.. Finding :- The main purpose to know how many years farmers

have been purchasing the fertilizers of this co.

14% respondents use fertilizer for last 5 years.



27% respondents use fertilizer for more than 15 years.

.. Analysis :-Above chart shows that users of urea fertilizer are

increasing in year by year.

14%

25%

34%

27%

1 TO 5 YEAR

5 TO 10 YEAR

10 TO 15 YEAR 15+ YEARS

(70)


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Why do you prefer SARDAR UREA? Pleas tickaccordingly.

Best Good Fare Poor

QualityAvailabilityPackingBrand

68

20

7 5

58

2212

8

82

8 6 4

74

12 6 8

0

20

40

60

80

100

QUALITY AVAILIBILITY PAC KING BRAND

BEST GOOD FAIR POOR

.. Finding :- The main purpose to know how many years farmers

have been purchasing the fertilizers of this co.

IN QUALITY there are 68% says it is Best, 20% says itis Good, 7% says it is Fair, 5% says it is Poor.

IN AVAILIBILITY there are 58% says it is Best, 22%says it is Good, 12% says it is Fair, 8% says it is Poor.

IN PACKING there are 82% says it is Best, 8% says itis Good, 6% says it is Fair, 4% says it is Poor.

IN BRAND there are 74% says it is Best, 12% says it is

Good, 6% says it is Fair, 8% says it is Poor.

.. Analysis :-Above chart shows that mostly consumers are satisfied

with quality, availability, packing & brand of GSFC.

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Is SARDAR UREA s fertility more effective than

others ?

Yes No

78%

22%

YES

NO

.. Finding :- The main purpose is to know that fertility of SARDAR

urea more than others.

78% respondents said that it is more effective thanothers.

22% respondents said that it is not more effective thanothers.

.. Analysis :-Above chart shows that mostly consumers agree with

urea fertilizer is more effective than others.

(73)


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In which growth stage of crop do you prefer to use

SARDAR UREA fertilizer more?

With sowing Growth

Initial Stage Before Harvesting

.. Finding :- The main purpose is to know in which growth stage of

crop customers prefer to use urea fertilizer more.

25% respondents use fertilizer with sowing seeds of crop.

31% respondents use fertilizer with initial stage meansafter growing of seeds.

34% respondents use fertilizer with growth of crop.

10% respondents use fertilizer before harvesting of crop.

.. Analysis :-Above chart shows that mostly consumers use urea

fertilizer during initial stage and growth stage of plants.

25%

31%

34%

10% WITH SOWING

INITIAL STAGE

GROWTHBEFOREHARVESTING

(74)


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Do you aware with different programs done by GSFC

for how to use SARDAR UREA fertilizer?

Yes No

36%

64%

YES

NO

.. Finding :- The main purpose is to know that the awareness of

different programs done by GSFC for the usage of urea

fertilizer.

64% respondents said that they are aware of differentprograms done by GSFC of the usage of urea fertilizer.

36% respondents said that they are not aware of different programs done by GSFC of the usage of urea

fertilizer.

.. Analysis :-

(75)


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Above chart shows that mostly consumers are aware

with the different programs for how to use urea fertilizers

done by GSFC.

(76)


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Would you ever recommended SARDAR UREA

to other urea fertilizer?

Yes No

78%

22%

YES

NO

.. Finding :- The main purpose is to know that they recommend to

other to buy the urea fertilizer of GSFC.

78% respondents said that they recommend to other tobuy the urea fertilizer of GSFC.

22% respondents said that they will not recommend toother to buy the urea fertilizer of GSFC.

.. Analysis :-Above chart shows that most of the consumers will

recommend to others to buy the fertilizers of GSFC.

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Do you face any problem with urea fertilizer of

GSFC?

Yes No

82 % 18 %

YES

NO

.. Finding :- The main purpose is to know that they have faced

any problems with the SARDAR urea of GSFC.

82% respondents said that they have never faced anyproblem with the usage of urea.

18% respondents said that they have sometime facedproblem with the usage of urea.

.. Analysis :-Above chart shows that most of the consumers does

not face any problems with usage of the urea fertilizer of

GSFC.

(78)


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CONCLUSION

EVERY BEGINNING HAS AN END

But according to me this end is in real sense

beginning for me. It is the beginning of the learning and

learning has to no end. Before my practical training at

GUJARAT STATE FERTILIZERS AND CHEMICALS

LIMITED, I was having many doubts as well as it was myfirst chance to obtain training in one of the biggest

companies of India.

The topic of my training was CONSUMER

SATISFACTION OF UREA OF GUJARAT STATE

FERTILIZER & CHEMICAL LTD. I have got a very

positive & co- operative response from everyone at GSFC.

The company is growing through diversification,

expansion, modernization. In the fields of fertilizers,

petrochemicals, industrial gases plastics and fibers who

have been bases to may other dependency industries, and

the first joint sector providing participation to farmers

inequity which has proved to be MODEL OF SUCCESS.

(80)


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For my experience at GSFC Ltd., I can say that it is a

progressive & well-organized unit. It has grown as biggest

managed fertilizers & Petro-chemicals Company.

Thus, GSFC plays well attention on consumer value

addition all its marketing efforts. Not only quality of goods

but GSFCs unique services have built the relationship

useful source not only to its Customers employees &

Shareholders but also to the society.

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CONSUMER SATISFACTION

Providing consumer satisfaction has been the central

approach of modern marketing. Consumer satisfaction

results in a positive cash flow. So it is a very beneficial

investment for any company to pay for consumer

satisfaction. For this reason GSFC has developed a

separate department with a view giving proper guidance

about the use of fertilizers.

Personal appointed for this regard goes to villages

and forms to knowledge farmers about foundation of soil,

composition of soil, seasonal variances of agriculture need

of fertilizer for certain crops and types of fertilizers, which

can be used. Company has appointed 400 B.S.C.

agriculture employees to satisfy customer properly and

inform & to guide them properly.

GSFC uses following ways for satisfaction of its

customers.

To conduct demonstration at appropriate

time at farmers fields.Participation in fair & festival with stall

Enrolment of KRISHI JIVAN (agricultural

magazine)

To organize night meeting at village level

To conduct samples of wage & land

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Company starts village adoption process. In

this process company adopt school, temple, garden of

the village.

Company select backward village and give

fertilizer to farmer in starting at very lower rate. Then

company take 25% cost, 50% cost, 100% price

respectively in year after year in this way company

give guidance to farmers how to use fertilizer and

increase production.

Company takes youth training programs

one training programs in which 20 years or more than

20 years farmers sons can participate. It is 4 to 5

days programs. Company gives information about use

of fertilizer soil testing seeds etc. it is free of cost.

(83)


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SWOT ANALYSIS

.. STRENGTHGood retail network.

Brand product range.

Good brand image (quality reputation).

Good financial stability.

.. WEAKNESS

Less number of advertising.

Less production of urea.

.. OPPORTUNITIES

Natural product.

Global market.

Get high institutional order.

.. THREATS

Ever changing market.

Technology obsolescence.

Higher costs.

(85)


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SUGGESTION

Since no one gifted with perfection. It applies toindustrialist also. GSFC Ltd. has been a successful

industrial unit who has achieved success through

diversification & expansion. But to end up my study I

would like to suggest the following points.

GSFC has great quality of urea and hence the

demand of urea in every village is very high because urea

is more helpful to the soil. But how much it produces is

decide central government and where it how much sell

also decide by the central government it is more difficult to

understand the demand. Company could not take over the

demand of customer in Gujarat.

GSFC no doubt have been the only one and first to

produce melamine in India. Hence being the monopoly

organization over melamine production, the melamine

expansion step was to be welcomed one. But as against

total demand of melamine, the companies 15000 MTPA

project proves to be more than requirement. Company

has to produce more of melamine.

(86)


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LIMITATIONS OF THE STUDY

The respondents may have prejudice forthe company may lead to the distortion of the facts.

This study was conducted under time

constraint, which restricted to a small sample.

The result cannot be generalized, as this

study was limited to Rajkot district only.

It is a one-man study and thereforedoesnt cover a large number of respondents and

even greater area.

Wrong selection of sample or sampling

technique can be result in wrong decision to take on

the basis of research.

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FUTURE PLAN

GSFC Ltd. Established Gujarat Agro processingcompany limited for the development in agricultural field.

Following are the future planning of GUJARAT AGRO

PROCESSING COMPANY LTD.

1. Vegetables cultivation under large scale green house.2. Large scale production of tissue culture plants of various

crop varieties.

3. Production of frozen food & its marketing in domestic as

well as foreign market.

4. Production of processed vegetables like tomato, potato

etc., its marketing & exports.

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BIBLIOGRAPHY

Following books and references referred by me to

enrich my knowledge and to support my study.

1. MARKETING MANAGEMENT

- BY PHILIP KOTLER

2. MARKETING MANAGEMENT

- BY S.A. SARLEKER

3. Annual reports of the company.

4. Information through various web sites of GSFC.

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QUESTIONNAIREFill the relevant Blanks.

Tick the accordingly.

1) Name :

2) Address :Village name

Taluka name

3) What is your educational qualification?

1 to 7 std. 8 to 10 std.

10 to 12 std. Graduate

4) What do you prefer as a fertilizer?

Natural Chemical

Both

5) Which chemical fertilizer do you prefer

mostly?

Urea Potas

DAP Others

6) Which Brand of urea fertilizer do you use

mostly?

(90)


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GSFC GNFC

KRIBHCO IFFCO

Others

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7) Why do you purchase SARDAR UREA

fertilizer?

Water dehydration

Effective growth of crop

More requirement of nitrogen

Others

8) For Which crop do you prefer SARDAR UREA

more?

Wheat Cotton

Sugarcane Groundnut

Corn Others

9) For how many years have you been using

SARDAR UREA fertilizer?

1 to 5 years 5 to 10 years

10 to 15 years more than 15

10) Why do you prefer SARDAR UREA?

Pleas tick accordingly.Best Good Fare Poor

Quality

Availability

Packing

Brand

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11) From where do you purchase SARDAR UREA

fertilizer?

Co-operative society

Dealers

12) Is SARDAR UREA s fertility more effective

than others?

Yes No

13) In which growth stage of crop do you prefer

to use SARDAR UREA fertilizer more?

With sowing Growth

Initial Stage Before Harvesting

14) Do you aware with different programs done

by GSFC for how to use SARDAR UREA fertilizer?

Yes No

15) Would you ever recommended SARDAR

UREA to other urea fertilizer?Yes No

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16) Do you face any problem with urea fertilizer of

GSFC?

Yes No

17) Do you know more use of urea fertilizer

affects the P.H. level of soil?

Yes No

18) Give your valuable suggestion in which area

they need to improve.

.

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