PGDM- II

Roll No- DM14B31

BATCH- 2014-2016

DECLARATION

We hereby declare that the work presented in this Project entitled “Analysis of Madras Fertilizers ltd” submitted to mentor.

At Pune Institute of Business Management, Pune is an authentic record of our original work.

Signature of Mentor Signature of Candidates

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ACKNOWLEDGEMENT

The satisfaction and joy that accompanies the successful completion of a task is incomplete without mentioning the name of the person who extended his help and support in making it a success.

We are greatly indebted to my Project Guide and Mentor for devoting his valuable time and efforts towards my project.

We thank him for being a constant source of knowledge, inspiration and help during this period of making project.

RAJESH SAMANTA PGDM II

Roll No: - DM14B31

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CONTENT Page No.

Introduction 4

Company Profile 5

Objectives 6

Performance 7

Promoters 9

Products 11

Services 14

Competitors Analysis 16

Company’s History 17

Marketing Strategy 24

Business Finance 29

Human Resource Management 31

Future Plan 36

3

Achievements 37

Conclusion 38

Bibliography 39

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INTRODUCTIONIndia is basically an agricultural country which economy depends largely upon its agrarian produce. Agricultural sphere contributes about 25% to the country’s GDP. Indian fertilizer industry has a tremendous scope in and outside the country as it is one of the allied parts of agriculture.

Today, Indian fertilizer industry is developing in terms of technology. Indian manufacturers are adopting advanced manufacturing process to prepare innovative new products for Indian agriculture. India has entitled as the third largest producer and exporter on nitrogenous fertilizer.

Growth of Fertilizer Industry in India

Fertilizer industry in India is meeting all the requirements of agricultural industry since the sale of its inception in 1906. The plant for fertilizers manufactures was set up in the same year in Ranipet Chennai. Then established the first two large-sized fertilizer plants one was the fertilizer and chemicals Travancore of India Ltd. (FACT) in Cochin, Kerala and the one was Fertilizer Corporation of India (FCI) in Sindri, Bihar.

These two were established as pedestal fertilizers units to have self-stuffiness in the production of food grains. Afterwards the industry gained impetus in its growth due to green revolution in late sixties followed by seventies and eighties when fertilizer industry witnessed an incredible boom in the production. The tremendous demand of fertilizers had led the country to invest huge in the public, corporative and in private sectors.

At present India has more than 57 large sized plants on fertilizers, manufacturing wide assortment of fertilizers including nitrogenous, phosphate, Ammonium Sulphate (AS), Calcium Ammonium Nitrate (CAN) urea, DAP and

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complex fertilizers. Apart from it, there are other 64 small and medium scale Indian manufacturers producing fertilizers.

COMPANY PROFILE

MFL was incorporated on December 8, 1966 as a joint venture between GOI and AMOCO India incorporated of U.S.A (AMOCO) in accordance with the Fertilizer Formation Agreement executed on 14.5.1966 with equity contributions of 51% and 49% respectively. In accordance with the participation agreement between GOI, AMOCO and National Iranian Oil Company (NIOC), an undertaking of Government of Iran, NIOC acquired 50% of the shareholding of AMOCO in MFL on 22.11.1972. With this acquisition, shareholding of AMOCO and NIOC were at 24.5% each, with the balance 51% being held by GOI. Subsequently, on 22.7.1985, the shareholding of AMOCO was proportionately purchased by GOI and NIOC. As a result, GOI and NIOC shareholding was revised to 67.55% and 32.45% respectively. Subsequent to the issue of rights shares in 1994 for part-financing the project, the holding of GOI and NIOC stood at 69.78% and 30.22% respectively. MFL had an initial public offering of its shares in May 1997.

MFL Chairman and Managing Director is I Vijaykumar. Market Capitalization 6.3% to GDP. MFL is engaged in the manufacture of Ammonia, Urea, Complex Fertilizers and Bio fertilizers. MFL's activities include marketing of these fertilizers and trading in Agro Chemicals in accordance with the corporate objective. MFL has been striving to develop and maintain an Organizational environment, that motivates the individual, encourages personal initiative, innovation and creativity. MFL has its plant facilities and

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headquarters located on 329 acres of freehold land at Manali, about 20 km north of Chennai city. 

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OBJECTIVES

MISSION

Mission is to achieve all round excellence in the spheres of manufacture and marketing of Chemical Fertilizers, Bio fertilizers, Agrochemicals paving way for increased Agricultural production and productivity, maximizing Shareholders value and guarding interest of all Stake-holders of the Company.

VALUES

Carry out functions and duty with utmost Sincerity, Speed, Equity, Integrity and Transparency and without any fear or favor.

STANDARDS

Have set upon the standards for all transactions. Undertake that in case of likely or inevitable delay, promptly communicate the same to the party concerned.

COMMITMENTS

Produce and distribute quality fertilizers conforming to the specifications.

Timely distribution of our fertilizers to ensure consumer satisfaction

Continual up gradation of Technology and Development of Human Resources

All officers who deal with the public will carry an Identity Card.

Keep the Personal and Business information disclosed to us confidential.

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PERFORMANCE

In 2010 the Company’s operations for the year ended with a profit of Rs.6.88 Cr against loss of Rs.145.38 Cr in the previous year mainly on account of implementation of New Pricing Scheme (NPS)-Stage III amendment by GOI restricting the reduction in fixed cost to 10% for 2009-10.

In 2011 the Company’s operations for the year ended with a profit of 169.86 Cr (Previous Year 6.88 Cr) mainly on account of better production performance and lower energy consumption in Urea operations coupled with One Time Settlement benefit from Financial Institutions.

In 2012 the Company’s operations for the year ended with a profit of 111.99 Cr (Previous Year 169.86 Cr). This is the highest ever operating profit made in any year since inception if extraordinary items (OTS benefit) is not taken into account. This could be possible mainly because of 100% capacity utilization of Urea achieved for the first time in the history of the Company.

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2014

2013

2012

2011

2010

0 50 100 150 200 250 300 350 400 450

362.08

424.12

319.82

270.07

210.66

105.8

24.44

111.99

169.86

6.88

Growth/DE growth

Profit After Tax Net Sales

In Cr.

In 2013 the Company’s operations for the year ended with a profit of 24.44 Cr (Previous Year 111.99 Cr). Sales is increase 424.12 (Previous Year 319.82) this is because the productivity is increases and PAT decreases because long term debt and short term debt is taken higher.

In 2014 the Company’s operations for the year ended with a profit of 100.04 Cr (Previous Year 24.44 Cr). The total accumulated loss as of 31.3.2014 was 380.72 Cr. (Previous Year 480.76 Cr).

PORTER’S FIVE FORCES MODEL

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Competitive Rivalry

Threat of New Entity

Buyer Power

Threat of Substitutio

n

Supplier Power

The amount of interest paid in terms of Section 18 along with the amounts of the payment made to the supplier.

Claims for liquidated damages against suppliers are accounted for on recovery of the same from their bills and adjusted to the cost of assets or to the materials / works as the case may be.

Benefits derived as a result of the above efforts, e.g. product improvement, cost reduction, product development, import substitution, etc.

Continuous losses have arisen due to cost and time over run during revamp of Ammonia and Urea Plants.

Efforts for streamlining logistics operations on cost effective basis continued this year also and 87% of the products were directly delivered to the dealers and dealer to buyers.

Finished products are valued at lower of cost or net realizable value including final / estimated

Top competitors are Coromandel Int, GSFC, Rashtriya Chem etc

Close competitors are SPIC, Zuari Global, Oswal ChemandFe etc

As the value in use could not be assessed with reasonable accuracy, the Company has considered net selling price for ascertaining impairment loss.

Due to Dematerialization- No risk of loss / misplacement / theft / damage of share

PROMOTERS

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SHRI K.M. GUPTA, IES Economic Advisor, DOF

SHRI RAJIV YADAV, IAS Additional Secretary and Financial Advisor,

DOF

SHRI MOHAMMED HASSAN GHODSI

NICO Director

SHRI AHMAD AZMOODEH NICO Director

SHRI MOHAMMAD ALI AHMADI

NICO Director

Dr. I VIJAYAKUMAR, IRS CHAIRMAN AND MANAGING DIRECTOR

SHRI C.M.T. BRITTO Director - Technical (Additional Charge)

CA. MUKESH MOHAN GUPTA

BIFR Nominee Director

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PRODUCTSCHEMICAL FERTILIZERS

UREA

NPK - Complex (17:17:17) (14:28:14) (19:19:19) (20:20:0:13) NK Mixture (20:0:10) MOP (Imported) DAP (Imported)

VIJAY Urea

VIJAY Urea with 46% Nitrogen is an economical Nitrogenous fertilizer suitable for all crops and all soil types. It can be used separately as a top dressing fertilizer or in combination with other fertilizers also. It is suitable for foliar application also.

VIJAY Complexes  

VIJAY complexes are granulated fertilizers containing Nitrogen, Phosphorous and Potash. As the nutrients are present in balanced proportion, they are ideal for application as basal fertilizers to all the major crops.

VIJAY 17:17:17, which was introduced in 1970, is our flagship product, which enjoys high farmer preference, on account of its excellent performance leading to bumper yields. It was the first balanced complex fertilizer to be introduced in Indian market, with all the three nutrients available in equal proportion. The nitrogen in VIJAY 17:17:17 is in Amide and Ammonical forms, making it ideally suited for early growth and vegetative phases of all crops. 

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BIO FERTILIZERS

Azospirillum (Paddy) Azospirillum (Other crops) Azospirillum (Plantation Crops) Rhizobium (Groundnut) Rhizobium (Pulses) Phosphor Bacteria (All Crops) NP Bio (All Crops)

A healthy soil alone can utilize the applied chemical fertilizers efficiently and lead to high yields. The health of the soil is maintained by various factors, the most important being the soil microbes. Continuous cultivation results in microbial population being depleted. Inoculation of Bio fertilizers in cultivated soil results in multiplication of the microbial population. MFL, with a view to maintain good health and fertility of the soil, introduced Bio fertilizers under the brand name "VIJAY BIO".

VIJAY Bio-fertilizers come in two categories, viz., Nitrogen fixers and Phosphate Solubilizes. The Bio fertilizer range is wide and covers the requirements of all crops under all soil / climatic conditions.

AGRO CHEMICALS - NEEM BASED

VIJAY Neem - 300 ppm VIJAY Neem - 1500 ppm

MFL markets Neem based Pesticides, under the brand name VIJAY NEEM. Of late, biological and botanical pesticides have gained importance, as they are

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environment friendly and highly effective with negligible residual content in agricultural produce. Neem based products occupy an important place in botanical pesticides. VIJAY Neem is based on neem kernel extract and has a wide spectrum of activity against major pests, which infest both commercial and food crops. 

VIJAY NEEM is presented in 300 ppm and 1500 ppm, in packing’s of 100 ml to 20 liters, to suit the needs of all categories of farmers.

VIJAY NEEM can be used as a 'standalone' pesticide. The unique feature of VIJAY NEEM is that pests do not develop resistance to it. This enables farmers to repeatedly use the product with the same effectiveness for a long period of time.

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SERVICESConducting business with social responsibility

presupposes contributions to the community development. Based on this objective, MFL has taken keen interest in fulfilling the needs of the community in Manali area. MFL’s contribution to the community include Rs.75 lakhs for the construction of an over bridge across the railway line in the link road to Manali and a modern community centre at Manali. MFL has also constructed class rooms for about 400 school children in the Government High School, Manali. In the same school, MFL has constructed a library building and equipped it with books and provided with furniture, fans and electrical, MFL has also provided annual scholarships to meritorious SC/ST students. MFL has also organized health checkups for school children and provided drinking water facilities and provided tri-cycles to physically handicap in and around the Manali Town. MFL has provided a Computer for Manali Town Panchayat Office. MFL has also provided Sodium vapor lamps for street lights in Manali Town Panchayat area.

Providing vocational training to Diploma in Commercial Practice / Graduate Engineer Apprentices / Trade Apprentices (ITI). There are 25 Diploma Commercial Practice Trainees, 50 Graduate Engineers Apprentices and 70 Trade Apprentices. Renovated and Repaired 70 noon meal centers in Kancheepuram District. Deputed one Sr Officer for National Literacy Campaign for 2 years.

SERVICE TO FARMERS

MFL Inspection Team has well-qualified and experienced Mechanical Engineers.

MFL Inspection Team has in-house facilities for carrying out condition monitoring of Process Plant Static Equipment, Pipelines and Rotating Equipment

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and Non-Destructive Testing Inspection, for our own requirements. 

Additionally, to share the experience gained, MFL Inspection Team is taking up third party services to other Fertilizer Plants, Refineries and Petrochemical Plants throughout India for the last 25 years.

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COMPETITORS ANALYSIS

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Name Last Price Market Cap. Sales Turnover Net Profit Total AssetsCoromandel Int 321.05 9,177.21 9,380.52 344.85 3,626.38GSFC 108.7 4,331.45 5,412.49 342.17 4,939.45Rashtriya Chem 68.45 3,776.31 6,587.60 249.89 4,175.48Chambal Fert 65.25 2,715.76 7,981.89 303.07 6,506.29Fert and Chem 32.35 2,093.28 2,220.73 -264.96 561.15NFL 37.1 1,820.05 8,029.09 -89.71 11,702.20GNFC 89.5 1,391.00 4,847.19 292.27 7,479.35Deepak Fert 138.4 1,220.76 3,816.28 243.88 2,312.83Zuari Agro Chem 283 1,190.24 5,197.05 26.16 3,419.42Mangalore Chem 81.7 968.27 3,310.26 70.93 2,140.16Oswal ChemandFe 31.6 811.52 108.03 71.63 2,223.33SPIC 24.6 500.96 1,345.47 65.86 628.66Madras Fert 18.1 291.59 2,593.47 100.04 258.69Zuari Global 97.3 286.46 175.85 26.14 730.39Agri-Tech 6.65 3.95 0.07 0.23 20.3

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COMPANY’S HISTORY

YEAR EVENTS 1966 - Madras Fertilizers Ltd. was incorporated on 8th December, as a Joint Venture between GOI and Amoco India Incorporated of USA in accordance with the Fertilizer Formation Agreement executed on 14th May with equity contributions of 51% and 49% respectively.

- The Company is engaged in the manufacture of ammonia, urea and complex fertilizers at Manali, Chennai, MFL is also engaged in manufacturing bio-fertilizers and marketing fertilizers and agrochemicals under the brand name `Vijay'.

1968 - The Company has entered into a Purchase Agreement on March 21, for an annual requirement of 250,000 MT with Madras Refineries Limited, a company held by GOI & NIOC, with relevant clauses for quality and quantity determination.

1975 - The Company has the unique distinction in plant safety record of continuous 3190 accident free days (8 years and 9 months) from 10.02.75 to 05.11.83 amount to 19.8 million man-hours of operations without any disabling injury.

- MFL has entered into a long term agreement with TNEB on August 23, for supply of Maximum Demand 22,000 KVA.

1991 - The Company received an award from Fertilizer Association of India for `outstanding performance in the performance in the production of phosphatic' fertilizers

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during the year.

1992 - MFL commissioned a Hydrolyzer Stripper plant for treating effluents from ammonia and urea plants. The Company has also developed a green belt in the plant campus covering about 30 acres.

- Farmers Service Award for the year instituted by Gandhi Gram Rural Institute, Tamil Nadu.

- The Company has established about 150 upcountry warehouses through the State/Central Warehousing Corporations and other private warehousing agencies.

1993 - The Company received the Jawaharlal Nehru Memorial National Award by International Greenland Society, Hyderabad for effective implementation of pollution control methods.

- The Company got the Second prize in National Energy Conservation for the year.

- MFL was also successful in getting a $3 million Technical Management contract from the State Fertilizer Manufacturing Corporation in Sri Lanka.

- The Company increased the capacity of the Ammonia Plant by 40% from 750 tons per day to 1050 TPD. The Company increased the capacity of the Urea Plant by 66% from 885 TPD to 1475 TPD.

- The company has entered into long term purchase contract on October, 18th, with M/s. Indian Ocean Fertilizer, South Africa for the supply of phosphoric acid.

1994 - MFL has entered into a purchase agreement for an annual requirement of 2,50,000 MT of Naphtha with M/s.

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Madras Refineries Ltd. a PSU situated close to MFL.

- MFL has entered into a long term supply contract with M/s. Indian Ocean Fertilizer, South Africa for supply of phosphoric acid.

- The Company installed dual pipe reactor system in NPK `B' train to enhance production rate, reduce fuel consumption and replacement of product cooler in the NPK Plant.

1995 - The Company has been entering into a Memorandum of Understanding with the Department of Fertilizers, Ministry of Chemicals & Fertilizers, GOI for the past 4 years. The Company was awarded "Excellent" rating for the year 1995-96.

- The Company is the first PSU in the Fertilizer industry to get the ISO 9002 certification effective 1st November.

1996 - The company has set up a Reverse Osmosis Plant to take care of any future water shortages.

1997 - The company is entering the capital market for the first time with an initial public offering (IPO) of Rs.42.95-crores in 286.30 lakh shares is Rs 10.00 each at a premium of Rs 5.00, to raise Rs 42.95-crore from the public.

- Since April 1996, COL has entered into an agency agreement with another Mumbai-based, closely held, Ventron Chemicals Ltd (VCL), for marketing the latter products.

- The Rs 660-crore Madras Fertilizers Ltd (MFL) plans to set up a sulphuric acid plant, with a 400 ton per annum capacity at its Manali plant near Chennai.

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- The drop in production of NPK was due to the shutdown of the ammonia and urea plants from early March this year till the end of September. The shutdown was in connection with the hooking up of the old plants with the new plants constructed at a outlay of Rs.573-crores.

- The Madras Fertilizers plant located at Manali near Chennai was closed down on November 30 amidst speculation that it was due to a gas leak. The gas, identified as ammonia, has reportedly caused some irritation and breathing problems in nearby villages and the matter was reported to company officials and the Pollution Control Board (PCB).

1998 - MFL had been assigned an MA-rating in August 1993 by the Investment Information and Credit Rating Agency on its fixed deposit programme.

- Though the revamped Ammonia/Urea Plants were commissioned during September 1997, owing to initial teething problems and the steam limitation, commencement of commercial production of Urea was delayed to March 3, when steam was available from the new PC Boiler for regular use.

- The Company also commenced marketing of an eco-friendly neem based pesticide viz. "Vijay Neem" during the year under arrangement with M/s. Fortune Biotech Ltd (FBL), Hyderabad, who commissioned their "The State of Art" plant for the manufacture of Azadirachtin.

- The MoU for the year 1998-99 was signed with GOI during April.

- The Company was selected for the prestigious "Energy Conservation Award" for the year 1996-97 by the Ministry

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of Power, Govt. of India for implementing various energy conservation schemes.

- The Company received "Best Environmental and Ecological Implementation Gold Award" from International Greenland Society for the year 1997-98.

- The Company also received "Best Tax Payer Award" in the category of Employer for the year 1995-96 which was presented by the Hon'ble Union Minister for Finance.

1999 - The government was proposing to reduce its stake to eight per cent from 58 per cent for which the second largest shareholder, the National Iranian Oil Company recently gave an in-principle approval.

- Biwater Plc, which has been awarded the Bangalore water supply project, has entered the race for the construction of a $100 million effluent re-use plant for Madras Fertilizers and Refineries industries complex near Chennai.

- A Memorandum of Understanding (MoU) was signed between the MFL and the Department of Fertilizers, Ministry of Chemicals and Fertilizers.

- MFL signed an MoU with Monsanto Enviro Chem System Inc. (MECSI) in June, under which MECSI will rectify the problems afflicting the prill tower.

- The government also proposes to convert Rs 80-crore of loans into preference shares.

- MADRAS Fertilizers Ltd (MFL) is likely to face the threat of zero inventory and consequently may shut down its plant "temporarily for maintenance", apart from pressing in other options, if the truck strike continues for the next few

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days.

- MADRAS Fertilizers Ltd (MFL) will switch over from naphtha to LNG for feedstock. The State-owned entity has also made the necessary arrangements to tie up with Dakshin Bharat Energy Consortium which is headed by Siemens for feedstock supply to the project.

- MFL also proposes to set up a 25 MW captive power plant. Of this 18 MW would be used by MFL while the balance would be sold to the grid. Ideally, MFL is looking to set up this plant on a BOT basis with a lifespan of at least 10 years.

- MFL has also entered into an agreement with Madras Refineries Ltd. Under the agreement, MRL's current overdue of Rs. 55 crores would be converted into a term loan repayable in four years.

- MFL plans to reintroduce a voluntary retirement scheme (VRS) in 2000.

2001 - Madras Fertilizers Ltd has signed Memorandum of Understanding with the Department of Fertilizers, Government of India for the year 2001-02.

2002 - Government of India approves for the financial restructuring of Madras Fertilizers.

-Mr. Pawan Kumar Wadhwa and Mr. Suresh Chandra are ceased to be the Directors and Mr. M R Sharma is being appointed as the Directors on the Board of the company.

-Mr Sukumar N Oommen appointed as the Chairman and MD of the company.

2003

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-National Iranian Oil Company grants No Objection Certificate to the government for the selloff of Madras Fertilizers Ltd.

-Mr. Vijay Singh and Mr. S M Mortazavi are ceased to be the Directors of the company. Mr. Suman Swarup and Mr. Malmood vaezi are appointed as Directors.

-Financial restructuring package as follows:

a. Waiver of outstanding interest amounting to Rs 706.5 million as on March 31, 2003 on the outstanding loan of Rs 2199.7 million, drawn from GOI by MFL. b. Moratorium on principle repayment of the GOI loan of Rs 2199.7 million drawn by MFL up to March 31, 2004. c. Waiver of penal interest for past defaults in repayment of principle and interest of GOI loan up to March 31, 2003.

-The stock leaps 9.8% on account of financial restructuring.

-MFL gets Union government permission for second round of Financial Assistance and Capital Restructuring.

-As part of restructuring programme the government approves for the reduction in interest from 15.10% to 7% on outstanding GOI loan.

-Shri P S Prasad, Nominee Director (ICICI Bank) has been appointed in place of Shri P M Kale, Nominee Director (ICICI Bank).

-ING Vysya Life signed an agreement with public sector Madras Fertilizer Ltd (MFL) to sell its life insurance policies to farmers, using the fertilizer company's dealer network in rural sector

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2005

- Madras Fertilizers Ltd enters into one-time settlement agreement with ICICI Bank, which will benefit the MFL to the tune of Rs 18.95 crore as of March 31, 2005.

2007 -Company has created Email ID of the Grievance Redressal Division/Compliance Officer for this purpose - cs@madrasfert.com and also a website called www.madrasfert.nic.in.

2008

-Madras Fertilizers Ltd has informed that "The Government of India vide its letter No. 84/2/2007-HR-I dated July 21, 2008 has appointed Shri S Muralidharan, as Chairman & Managing Director in place of Shri G S Mangat, CMD.

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MARKETING STRATEGYSWOT ANALYSIS

Strength

i. Technical competence of the organization

ii. Fully committed and motivated employees

iii. High inter-group and inter department co-

ordination

iv. Good knowledge of South India market with

respect to agriculture Inputs

Weakness

i. Stringent Government policies

ii. Availability of limited range of products

iii. Strict adherence to the policies and procedures

iv. Free market economy where public sector has to

compete with private sector

Opportunity

i. Agricultural to be more open market oriented

ii. Easier access to world’s best technology

iii. Higher focus on Productivity and efficiency in

agriculture

iv. Strategic alliance for marketing

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Threats

i. Increased competition

ii. Overrun carrying cost

iii. Switching over from seller market to buyer

market

iv. Delay in Government’s efforts to bail out loss

making

v. Public Sector Undertaking

STP

SEGMENTATION: - The Company is engaged in providing and selling its products in single economic environment in India i.e., there is a single geographical segment.

The field marketing activities are coordinated through a network of Regional Offices located in 11 strategic centers of the 5 Southern States, viz., Andhra Pradesh, Karnataka, Tamilnadu, Kerala and Pondicherry. MFL has a team of well experienced, dedicated and professionally qualified marketing officers, who market the VIJAY products thru well networked Dealers, numbering around 6500, Co-operative Marketing Federations of respective States, Agro Industries Corporations and other Institutions. Thus, MFL has well spread retail outlets encompassing private, co-operatives and Agro Kendras for wider reach and better market penetration of its products. 

TARGETING:- Farmers are the targeting customer of the company. MFL provides an ideal platform for an expanded presence in complex fertilizers market.

POSITIONING:- Safety is a way of life at MFL. The Company has a unique distinction of achieving a plant Safety Record of 3190 days. MFL has a creditable record

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of success in production, energy conservation, and promotional activities and as a responsible corporate citizen.

BCG MATRIX

This company lies on question marks because business operating in a high market growth, but having a low market share. They are a starting point for most businesses. Question marks have a

potential to gain market share and become stars, and eventually cash cows when market growth slows. If company do not succeed in becoming a market leader, then after perhaps years of cash consumption, they will degenerate into dogs when market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.

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PLC

The company is on the starting stage of decline stage, at this point, there is a downturn in the market. For example, more innovative products are introduced or consumer tastes have changed. There is intense price cutting, and many more products are withdrawn from the market. Profits can be improved by reducing marketing spending and cost cutting.

PROMOTIONAL STRATEGY

Recasting of roster effective July 02, 1997 was completed during April 2013. 27 SC employees benefited due to recasting of roster, by way of promotion / pre-ponement of promotions. Recasting of post based rosters is being done by a consultant from Integrated Training and Policy Research, New Delhi for Direct Recruitment and Promotions carried out by the Company. During 2010-11, 64 promotional programs were conducted benefiting 22,492 farmers.

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BUSINESS FINANCE

GROSS PROFIT AND NET PROFIT MARGIN

DIRECT AND INDIRECT COSTS

2014 2013 2012 2011 2010Direct Cost 2236.26 2093.46 1892.4 1410.66 1166.84Indirect Cost 263.91 237.08 215.66 177.94 158Operating Cost 4514.17 4343.54 4120.06 3599.6 3334.84

2013-14 2012-13 2011-12 2010-11% Change 3.92% 5.42% 14.45% 7.93%

FIXED ASSETS ADDED DURING THE YEAR

2014 2013 2012 2011 2010Purchase of Fixed Assets 7.91 31.08 38.57 11.57 2.29

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2014 2013 2012 2011 2010Gross Profit 1220.88 967.55 1063.53 776.86 622.48Net Profit 105.8 24.44 111.99 169.86 6.88Margin 1115.08 943.11 951.54 607 615.6

2014 2013 2012 2011 2010Total Revenue 2605.97 2355.11 2218.74 1,622.83 1,302.84COGS 1385.09 1387.56 1155.21 845.97 680.36Gross Profit 1220.88 967.55 1063.53 776.86 622.48

In Cr.

In Cr.

In Cr.

The Company is maintaining proper records showing particulars including quantitative details and situation of fixed assets, other than location details in respect of furniture and fixtures and office equipments. There are adequate internal control procedures commensurate with the size of the Company and nature of its business with regard to purchase of inventories and fixed assets and for the sale of goods and services.

WORKING CAPITAL

2014 2013 2012 2011 2010Current Assets 1507.09 654.43 538.86 367.12 210.69Current Liabilities 1694.5 938.6 338.43 406.05 369.07Working Capital -187.41 -284.17 200.43 -38.93 -158.38

In 2014, 2013, 2011, 2010 (accept 2012) is negative working capital. Negative working capital is when a company's current liabilities exceed its current assets. This means that the liabilities that need to pay within one year exceed the current assets that are converted to cash over the same period.

DEBT EQUITY RATIO

2014 2013 2012 2011 2010Share Capital 162.14 162.14 162.14 162.14 162.14Reserve & Surplus -368.33 -468.37 -492.81 -604.8 12.39Total Equity -206.19 -306.23 -330.67 -442.66 174.53

Long Term Borrowings 229.22 261.91 773.54 651.48 366.57Other long term liabilities 0 0 5.09 5.44 542.62Long Term Provisions 18.03 19.53 23.19 17.1 0Total Debt 247.25 281.44 801.82 674.02 909.19

Debt/Equity Ratio -1.19914 -0.91905 -2.42483 -1.52266 5.209362

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A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

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Shri CMT Britto Director 

(Technical)

HUMAN RESOURCE MANAGEMENT

Overview– Recruitment– Training And Development– Performance Appraisal– Designation / Grade System– Man Power– Pay Scale–Personnel Department & Its Functions–Office Time–Personal Protective Equipment

OVERVIEW

This department is mainly responsible for the recruitment, selection, training, development, promotion, etc, all that is related to the employees. The department maintains all the details regarding its employees for their reference in future and as and whenever required.

ORGANIZATION STRUCTURE HIERARCHY

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Dr. I. VIJAYAKUMAR, IRS

Chairman & Managing Director

Shri K M Gupta, IES

 Economic Advisor

Shri D Sundarasekaran

 General

Manager - Plant

Shri H Gunasekaran 

General Manager - P&A

Shri Rajiv Yadav, IASAdditional Secretary and Financial Advisor

Shri V MuralidharanGeneral Manager- F&A & Company

Secretary     

THE HUMAN RESOURCE as on 31.10.2014

Supervisors 504

Non-Supervisors 200

Total Manpower 704

JOB DESCRIPTION

1. Post Name: Medical Assistant

No. of Vacancy: 01 Posts.

Pay Scale: Rs.9830/-

Eligibility Criteria:

Educational Qualification: Passed Senior Secondary (10 + 2) or equivalent examination from a recognized Board. B.Sc., (Nursing). Must have their names registered in the State Nursing Council. Must have 3 years’ experience as Medical Assistant / Nursing Assistant in a reputed Hospital. (Fresh Candidate will also be considered as Trainee).

2. Post Name: General Manager (Plant)

No. of Vacancy: 01 Posts.

Pay Scale: Rs.51300-3%-73000/-

Eligibility Criteria:

Educational Qualification: Degree in Engineering (Chemical /Petrochemical/Mechanical/Electrical/EEE/Production/Instrumentation).

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Experience: Minimum 20 Years of Post-Qualification experience in Chemical Process Industries with 2 years in the immediate lower position.

Nationality: IndianAge Limit: 30 Years

Application Fee : Demand Draft drawn in favor of “Madras Fertilizers Ltd.,” payable at Chennai, for Rs.500/- in the case of Sl. Nos. 1 & 2 and Rs.250/- for Sl. Nos.3, 4, 5 & 6.

How to Apply : Applicants are advised to download the application format  and send the same duly filled so as to reach the General Manager (Personnel & Administration), Madras Fertilizers Limited, Manali, Chennai 600 068 on or before 27-10-2014.

Important Dates to Remember:

Last Date to Apply: 27/10/2014.

Important Links:

Detail Advertisement & Application Form Link: http://www.madrasfert.nic.in/pdf/mflrecruit.pdf

Register for Gov. Job Alert: Click Here

RECRUITMENT

The recruitment process started with Identification of vacancies to be filled up it is basically concerned with the identification of sources from where the personnel can be employed and motivating them to offer for the employment. As MFL is a GOI undertaking organization, it gives more importance in selection process of employees. By conducting Technical and non-technical entrance exams and follow up of the next stages of interview itself selection process carried out in MFL. Recommendations

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of job are completely avoided and pure performance, knowledge and experience based employees are appointed here in MFL.

It is process of searching for prospective employees, stimulation and encouraging them to apply for job in an organization.

Recruitment and Training (2013-14)

TRAINING NEEDS

Training in MFL is provided for trainers of both technical and non-technical candidates. Efficient training is given to the trainers, so as to filter quality employees from them. Promotional based top management training also given to the executives of MFL. Here new employees for executives are rarely recruited, normally promotion based vacancy filling is followed.

PERFORMANCE APPRAISAL

While on the job, performance reviews of every employee are done every quarter. The reviews are done with a view to helping the individual excel at his/her workplace. In case there are any training requirements, these are noted and acted upon in the coming quarter. Also, the goals and objectives for the employee are revised for

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the performance appraisal mechanism is carried out at MFL for promotional purpose. These are done so as to motivate the employee and improve his performance level.

a) Establishment of performance standards with the employees.b) The goals are set mutually as per measurable standards.c) The actual performance is hence measured.d) After measuring of the actual performance, the same is compared with the standards set.e) The appraisal is then discussed with the employee.f) And finally, if need arises corrective action is initiated. For this purpose the corrective action is actually identified through brainstorming exercise initiated by the department heads .It is then measured as a tool to evaluate the past performances of the employees.

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FUTURE PLANSSwitching over to Liquefied Natural Gas (LNG) feed stock from naphtha MFL Plants are designed to use R-LNG as part of Revamping Project and hence switchover to R-LNG can be done with minimum capital expenditure in a short time. The quantity of LNG required for replacement of existing fuel is around 1.2 MMSCM per day.

The fertilizers complex of MFL is presently using Naphtha for the process and fuel requirements of Ammonia Plant, FO in boilers, HSD in Captive Power Plants (Gas Turbine Generators and Diesel Genets) and LPG for auxiliary firing in the Boilers, heaters and flares.

Detailed in-house assessment of the changes required for the conversion has been carried out. Information from external sources, engineering consultants and supplier of boilers has been gathered and analyzed.

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ACHIEVEMENTS

MFL has a creditable record of success in production, energy conservation, and promotional activities and as a responsible corporate citizen.

MFL bagged the prestigious award from Fertilizer Association of India for “Outstanding performance in Production of Phosphate Fertilizers” during 1991-92.

Received the Best Farmers Service Award for 1992 instituted by Gandhi Gram Rural Institute, Tamil Nadu.

Jawaharlal Nehru Memorial National Award for “Effective Implementation of Pollution Control” 1992-93 and 1993-94.

Video Film on the use of Bio-fertilizers was judged as the best entry by the Fertilizer Association of India in 1993. In 1994-95 also another film on Bio-fertilizers was judged as the best entry for the second time.

Video Films on Paddy and Balanced Fertilizer Application were judged as the best entries for the year 1988 and 1994. A certificate of merit was awarded for the video film on Banana in 1991.

MFL was conferred with Best Tax Payer Award for the year 1995-96.

MFL received Official Language implementation Award for the year 2003-04.

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CONCLUSIONThus the organisational structure process, functions and management activities of M/S Madras Fertilizers Limited (MFL) are discussed in this report. The Human Resource and Welfare Department has provided needed information and statistical data about the organisation’s several departments and functional areas. From the past years statistics of MFL, it is been experiencing growth in production and management areas of the organisation. In MFL the employees are well treated by providing hygienic food for low cost and low cost transport facilities. The environment of the organisation is planted and maintained by recycled water. Smoke is liberated at a specific height so that it cannot affect the purity of the environment. The bio-hazardous waste is disposed in such a way to ensure the safety. The technical employees of MFL are provided medical facilities and safety equipments inside the production process. The management secures confidential and their business secrets by not allowing the outsiders to gain access to the Management Information System.

MFL concentrates on satisfying the need of the farmers and providing quality fertilizers by research on chemical and bio-fertilizers. Several tests are made with the MFL products before marketing to the customers. VIJAY brand name has a vast reach among the farmers and still the brand captures the market with its highly competition global market.

Still MFL sustain in the market with high production of fertilizers which has foreign investments and public shares. The Government of India has the control over MFL as it captures the majority shares. MFL Exports their products to several places in India and other countries through shipping and other transport facilities available.

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BIBLIOGRAPHY

Annual Report of 2013-14, 2012-13, 2011-12, 2010-11, 2009-10

http://economictimes.indiatimes.com/madras-fertilizers

http://money.rediff.com/companies/Madras-Fertilizers http://money.livemint.com/ http://madrasfert.nic.in/ http://fert.nic.in/page/madras-fertilizers-limited-mfl http://www.divest.nic.in/pimmfl1.asp http://www.sarkarinaukrisarch.in/mfl-recruitment/

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