112page vimp RAMNP07MBA01

8/13/2019 112page vimp RAMNP07MBA01

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Saurashtra UniversityRe Accredited Grade B byNAAC (CGPA 2.9!

Ramani, Niraj P., 2007, Comparative Analysis of Performance Efficiency of

Fertilizer Industry in India, thesis PhD, Saurashtra University

http://etheses.saurashtrauniversity.edu/id/eprint/10

Cpyri!ht and mra" ri!hts #r this thesis are retained $y the authr

% &py &an $e d'n"aded #r persna" nn(&mmer&ia" resear&h r study,

'ithut prir permissin r &har!e.

)his thesis &annt $e reprdu&ed r *uted e+tensive"y #rm 'ithut #irst

$tainin! permissin in 'ritin! #rm the %uthr.

)he &ntent must nt $e &han!ed in any 'ay r s"d &mmer&ia""y in any

#rmat r medium 'ithut the #rma" permissin # the %uthr

hen re#errin! t this 'r-, #u"" $i$"i!raphi& detai"s in&"udin! the authr, tit"e,

a'ardin! institutin and date # the thesis must $e !iven.


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Saurashtra University )heses Servi&e

http://etheses.saurashtrauniversity.edu

repsitrysauuni.ernet.in

)he %uthr


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COMPARATIVE ANALYSIS OFPERFORMANCE EFFICIENCY OFFERTILIZER INDUSTRY IN INDIA

A THESIS

SUBMITTED TO THE

SAURASHTRA UNIVERSITYFOR THE DEGREE OF

DOCTOR OF PHILOSOPHY(FACULTY OF MANAGEMENT)

SUBMITTED BY

NIRAJ P. RAMANIASSISTANT PROFESSOR IN M.B.A

N.R.VEKARIA INSTITUTE OF BUSINESSMANAGEMENT STUDIES

JUNAGADH-3!""#

UNDER THE GUIDANCE OF

D$. PRATAPSINH L. CHAUHANPROFESSOR% HEAD & DEAN

DEPARTMENT OF BUSINESS MANAGEMENT(M. B. A. PROGRAMME)

SAURASHTRA UNIVERSITYRAJKOT ' 3" ""


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JUNE -!""

CERTIFICATE

"his is t# certi$y that syn#%sis tit&ed COMPARATIVE

ANALYSIS OF PERFORMANCE EFFICIENCY OF FERTILIZER

INDUSTRY IN INDIAsub'itted by r. Nira) P. Ra'ani $#r the

a*ard #$ +e,ree #$ d#ct#r #$ %his#%hy in the $acu&ty #$

'ana,e'ent is based #n research *#r- carried #ut by hi' under

'y ,uidance and su%ervisi#n. "# the best #$ 'y -n#*&ed,e and

be&ie$ it has n#t been sub'itted $#r any #ther de,ree #r di%'a.

+ate /une0 211

D$. PRATAPSINH L. CHAUHANPROFESSOR% HEAD & DEAN+e%t. 3$ Business ana,e'entSaurashtra University0Ra)-#t 41 115.


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NIRAJ P. RAMANI (M.B.A.)

ASSISTANT PROFFESSOR IN M.B.AN.R.VEKARIA INSTITUTE OF BUSINESSMANAGEMENT STUDIESJUNAGADH ' 3! ""#

DECLARATION

6 dec&are that the thesis entit&ed 7COMPARATIVE ANALYSIS

OF PERFORMANCE EFFICIENCY OF FERTILIZER

INDUSTRY IN INDIA8 is a rec#rd #$ inde%endent research *#r-

carried #ut by 'e under the su%ervisi#n and ,uidance #$

+r. PRA"APS6N :. CAUAN PR3;


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+ate /une 211 (N6RA/ P. RAAN6!

P&ace Ra)-#t

"his Research >#r- is

+edicated

"#

y ;ather:ate Shri Pravinbhai ?. Ra'ani

=

y #therS't. /y#tsanaben P. Ra'ani


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CONTENTS

C*+,$/ P+0 N1.

P$2+ I-III

L4/ 12 T+56/ IV-VII

L4/ 12 G$+,*/ VII-VII

L4/ 12 D4+0$+7/ VIII

L4/ 12 A55$84+419/ VIII

#

. O8$84: 12 F$464;$ I9 #-?"!

.

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3

. R/+$* M*1##!-#3

A. O,$+419+6 E22449> A9+6>/4/

#3-#?!


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(

. A9+6>/4/ 12 F49+94+6 E22449>#?3-!!#

. P$1 A9+6>/4/ !!!-!?)

. S=77+$>% F49


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1 T>,/ 12 2$464;$ +9< 4/ 7+9=2+=$490 ,$1//

2 S1, +9< 47,64+419 21$ * 2==$ R9


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1 P$21$7+9 12 ,$124+5464>

2 P$21$7+9 12 24< +///

P$21$7+9 12 :1$@490 +,4+6

P$1

R2$9

CHAPTER ' 3

RESEARCH METHODOLOGY

1 I9$1


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1 H>,1*/4/ 12 * /=

2 U948$/ 12 * /=

P$41< 12 /=

S+7,6490


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1 +0/ +9< S+6+$4/ 1 N S+6/ R+41

2 P1:$ +9< F=6 1 N S+6/ R+41 S66490 & D4/$45=419 (MKT.) 1 N S+6/ R+41

F49+94+6 C*+$0/ 1 9 S+6/ R+41

3 D51$/ =$9 18$

4 I9891$> T=$918$ R+41

2 C196=/419/

R2$9/

CHAPTER '

ANALYSIS OF FINANCIAL EFFICIENCY

1 C19, 12 F49+94+6 E22449>

2 C19, 12 P$124+5464>

P$124 +9< P$124+5464>

M+/=$79 T116/ 12 P$124+5464>

68 P$124+5464> R+41 49 R6+419 1 S+6/

1. G$1// P$124 R+41

2. O,$+490 R+41

. N P$124 R+41

38 P$124+5464> I9 R6+419 1 C+,4+6 E7,61>


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1. E+$9490 P$ E=4> S*+$

2. R=$9 19 C+,4+6 E7,61>hen a $erti&i@er c#ntains '#re than #ne nutrient0 $#r

ea'%&e dia''#niu' %h#s%hate0 it is sh#*n as FEI410

2


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PROFILE OF FERTILIZER INDUSTRY

indicatin, that it c#ntains FE %er cent #$ nitr#,en0 I4 %er cent #$ P235and

n# %#tash. Si'i&ar&y0 MSu%ha&aM0 a nitr# %h#s%hate $erti&i@er %r#duced by

RC;0 "r#'bay0 is sh#*n as F5F5F5 indicatin, that the %r#duct c#ntains

F5 %er cent N0 F5 %er cent P235and F5 %er cent H23.

D2494419/ 12 F$464;$

Substance that adds in#r,anic #r #r,anic nutrients t# s#i& $#r the

%ur%#se #$ increasin, the ,r#*th #$ cr#%s0 trees0 #r #ther ve,etati#n.

Any #$ a &ar,e nu'ber #$ natura& #r synthetic 'ateria&s0 inc&udin,

'anure and nitr#,en0 %h#s%h#rus0 and %#tassiu' c#'%#unds0 s%read

#n #r *#r-ed int# s#i& t# increase its $erti&ity.

Any #r,anic #r in#r,anic 'ateria& #$ natura& #r synthetic #ri,in that is

added t# a s#i& t# su%%&y e&e'ents essentia& t# %&ant ,r#*th 'eans a

substance c#ntainin, F #r '#re rec#,ni@ed %&ant nutrients0 *hich substance

is used $#r its %&ant nutrient c#ntent and *hich is desi,ned $#r use0 #r c&ai'ed

t# have va&ue0 in %r#'#tin, %&ant ,r#*th. ;erti&i@er d#es n#t inc&ude

un'ani%u&ated ani'a& and ve,etab&e 'anures0 'ar&0 &i'e0 &i'est#ne0 *##d

ashes0 and #ther 'ateria&s ee'%ted by ru&es %r#'u&,ated under this %art.

6t is de$ined that Substance *hich 'a-es the &and #r s#i& ca%ab&e

#$ %r#ducin, '#re ve,etati#n #r cr#%s.

An arti$icia& che'ica& is 'iture #$ #ne #r '#re 'a)#r %&ant

nutrients such as nitr#,en0 %#tassiu'0 %h#s%h#rus0 and ca&ciu'.

Any #r,anic #r in#r,anic 'ateria& #$ natura& #r synthetic #ri,in

these are added t# a s#i& t# su%%&y e&e'ents essentia& t# %&ant ,r#*th.

. A substance that is %ut #n the ,r#und t# he&% cr#%s and #ther

%&ants ,r#* better. ;erti&i@ers ,ive %&ants nutrients. ;erti&i@ers can be

'an'ade che'ica&s #r natura& 'ateria&s such as 'anure. ;c- "he

na'e used $#r s#'e ,r#u%s #$ ani'a&s #$ a&& the sa'e -ind. ;#r

ea'%&e0 birds0 ,#ats0 shee%0 ,eese0 etc.


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;erti&i@ers enhance c#nsu'er %r#ducts. "han-s t# $erti&i@ers0 $ruits and

ve,etab&es are avai&ab&e in a$$#rdab&e abundance0 as every#ne -n#*s. But

nitr#,en (N!0 %h#s%h#r#us (P! and %#tassiu' (H!0 the 'a)#r in,redients #$

$erti&i@ers0 a&s# $#r's the basis $#r 'any $a'i&iar everyday %r#ducts. ;#r ea'%&e0

nitr#,en is used t# 'a-e nitric acid0 a 'a)#r c#'%#nent in batteries0 tires0

&acuers and %aints. Chances are0 the s#da y#u drin- c#ntains %h#s%h#ric acid0

derived $r#' %h#s%hate0 and y#ur $av#rite bath s#a% c#ntains %#tash. ;erti&i@ers

at *#r- in industry Aside $r#' their bene$its t# a,ricu&ture0 $erti&i@er c#'%#nents

are centra& t# such industria& %r#cesses as se'ic#nduct#r chi% 'a-in,0 resin

'anu$acture0 catt&e $eed %r#ducti#n0 'eta& $inishin,0 the 'anu$acture #$

deter,ents0 $iber,&ass insu&ati#n and '#re0 even r#c-et $ue&

N0 P and H "he Bui&din, Bc-s #$ ea&thy Cr#%s ;r#' *heat0 c#rn0

rice and beans t# a%%&es0 %ears0 suash and @ucchini0 'anu$actured

$erti&i@er n#urishes %&ants *ith the $##d they need t# ,r#* and be

hea&thy. Nitr#,en0 $#r ea'%&e0 is %art #$ every %&ants %r#teins and is a

c#'%#nent #$ +NA and RNA0 the ,enetic Mb&ue%rintsM #$ &i$e itse&$.

"a-en u% in &ar,er a'#unts than #ther nutrients0 nitr#,en 'a-es %&ants

,reen and is usua&&y '#st res%#nsib&e $#r increasin, yie&ds.

An#ther c#'%#nent #$ %&ant +NA is %h#s%hate0 *hich he&%s

%&ants t# use *ater e$$icient&y. 6t a&s# he&%s t# %r#'#te r##t ,r#*th and

i'%r#ves the ua&ity #$ ,rain and acce&erates its ri%enin,. And

%#tassiu'0 c#''#n&y ca&&ed %#tash0 is i'%#rtant because it is

necessary $#r %h#t#synthesis0 *hich is the %r#ducti#n0 trans%#rtati#n

and accu'u&ati#n #$ su,ars in the %&ant. P#tash 'a-es %&ants hardy

and he&%s the' t# *ithstand the stress #$ dr#u,ht and $i,ht #$$ disease.

P+/ ,$21$7+9 12 * 2$464;$ 49

"he ,ba& $erti&i@er industry is re&ative&y s'a&& in $inancia& ter' an #ut%ut

#$ a%%r#i'ate&y Q 1 5 bi&&i#n #$ $ina& %r#ducts at e$act#ry %rices #n an

7avera,e8 year. "here are a%%r#i'ate&y F111 'anu$acturin, c#'%anies

5


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*ith s#'e 2111 111 %r#ducti#n sites $#r a v#&u'e #$ an esti'ated 59 'i&&i#n

t#nes in F99E ."he &ar,est c#'%anies have &ess than 5 'ar-et share.

T+56 #.!

1$6< F$464;$ C19/=7,419 #? (""" ,$1


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insurers0 $inanciers0 etc. 6nvest'ent in e%itati#n #r %r#ducti#n is

,enera&&y ca%ita&intensive. "he %artici%ati#n #$ the State had been a

c#''#n %ractice. "here is a trend t#*ards %rivati@ati#n0 %rinci%a&&y in

the deve%in, and the ;#r'er centra&&y %&anned c#untries *here they

have &a,,ed behind the deve%ed c#untries in raisin, %rivate ca%ita&.

Current&y the *#r&d a%%&ies the $erti&i@er %r#ducts that c#ntain s#'e

FI1 'i&&i#n t#nes nutrient t# #ver E1 #$ the ,ba& arab&e &and t#ta&in,

ar#und F.I bi&&i#n hectares. Ab#ut 41 #$ the $erti&i@ers are used in cerea&

cr#%s0 F1 in %astures0 E in #i&seeds *hi&e the rest ,#es t# su,ar

cr#%s0 c#tt#n0 $ruits0 ve,etab&es0 bevera,es0 h#rticu&ture0 etc. 6n turn the

&ands yie&d s#'e 2. bi&&i#n t#nes #$ cerea&s0 11 'i&&i#n t#nes #$ #i&seeds

and a *ide s%ectru' #$ #ther a,ricu&tura& c#''#dities. 3ne in $#ur t#nes

#$ cerea&s and #i&seeds is used t# su%%#rt a $ar'ed ani'a& %#%u&ati#n #$

I5 bi&&i#n. ;erti&i@ers %&ay a -ey r#&e in sustainin, the ab#ve by enhancin,

cr#% yie&ds. At &east I1 #$ the cr#% yie&d is the resu&t #$ $erti&i@er in%ut.

3ver the &ast century0 the industry has %r#duced0 i$ c#'%#unds0 b&ends

and 'icr#nutrients are ec&uded0 &ess than 21 basic $erti&i@er %r#ducts. A'#n,

the'0 ca&ciu' cyan a'ide and basic s&a, have virtua&&y disa%%eared. "SP is #n

the 7dan,er8 &ist *hi&e ABC (a''#niu' bicarb#nate! is #n the 7*atch8 &ist. "he

trend is t#*ards '#re c#ncentrated $erti&i@ers0 *ith nutrient %er unit %r#duct

increasin, $r#' under 1 25 years a,# t# near&y I1 current&y.

6n the absence #$ ne* %r#ducts0 the industry0 h#*ever0 has been

active in $#r'u&atin, and b&endin, eistin, 'ateria&s and as *e&& as

i'%r#vin, their ua&ity $#r b#th st#ra,e and a%%&icati#n. Credit sh#u&d be

,iven $#r its success in ener,y e$$iciency in %r#ducti#n. 6t is *#rth*hi&e t#

'enti#n that there is a&s# &i'ited success in %r#ducin, c#ntr#&&edre&ease

$erti&i@ers ai'ed at reducin, the i'%act #$ nitr#,en &each ate t# s#i&s. #re

recent&y0 the i'%r#ve'ent in $usti,ati#n techniues have success$u&&y

etended the sc#%e #$ cu&tivati#n in the arid re,i#ns.


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A&th#u,h $erti&i@er %r#ducti#n ta-es %&ace in near&y F11 c#untries0 there

are very $e* cases #$ se&$su$$iciency. R#u,h&y #ne in $#ur t#nnes #$ $erti&i@ers

%r#duct #r inter'ediate is s#&d acr#ss the b#rder. An ea'inati#n by sect#r

the three 'a)#r nutrients *i&& unvei& the c#'%&eity #$ the industry as a *h#&e.

P1+/* "he %ri'ary use #$ %#tash in a,ricu&ture is t# %r#'#te %&ant ,r#*th

and bui&d resistance t# diseases. #re than F1 #$ the #ut%ut is used as $eed

su%%&e'ent $#r &ivest#c- and %#u&try and in industries $#r *ater s#$tenin,0

s#a%s and " screen 'anu$acture0 and as deicers. "he %rinci%a& #res $#r

%#tassiu' chride are %ri'ari&y sy&vinite (NaC& HC&! #r carna&ity (HC&

,C&2!. "he &ess abundant #res are hartsa&@0 -ainite and &an,beinite. "he t*#

&atter #res c#ntain %#tassiu' su&%hate. "he 'inin, $#r #res has reached a

very hi,h &eve& #$ s#%histicati#n in Canada in *hich &aser bea'0 s#nar

syste'0 aut# ana&y@er and c#'%uter direct the entire 'inin, #%erati#ns.

"he #res #btained either $r#' the 'ines #r s#&ar eva%#rati#n #$ brines

is then bene$iciated usin, #ne #$ the three techniues ther'a& diss#&uti#n0

$tati#n #r e&ectr#static bene$iciati#n. "he ch#ice de%ends #n the c#'%#siti#n

#$ the #res0 ca& ener,y s#urces and the %ercenta,e #$ ins#&ub&e. "he ther'a&

diss#&uti#n %r#cess de%ends #n the di$$erentiati#n s#&ubi&ity #$ %#tassiu'

chride and s#diu' chride *ith risin, te'%eratures t# F11FF1Tc. "he

$tati#n techniue re&ies #n the %hen#'en#n #$ inducin, a hydr#%h#bic #r

hydr#%hi&ic bias bet*een C#nstituent c#'%#nents. Usin, a $r#thin, a,ent

such as %ine #i&0 the hydr#%hi&ic c#'%#nent that a%%ears #n the bubb&e

sur$ace *hen air bubb&es are intr#duced0 the %r#duct is s*i%ed #$$ by r#tatin,

%add&es.


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&eachin, t# the surr#undin,s. "# date the %#tash industry has hand&ed

the *astes %r#b&e' very *e&&.

P#tash is a very stab&e %r#duct in the 'ar-et $#r its %rices and bein,

the &east c#ntr#versia& envir#n'enta&&y. "here are #n&y FI %r#ducin, c#untries

#$ *hich the I &ar,est %r#ducers (Canada0 Russia0 Ger'any and Be&arus!

acc#unt $#r '#re than threeuarters #$ the t#ta& #ut%ut. 3$ the t#ta& #$ ab#ut

25 'i&&i#n t#nnes #$ H23 %r#duced annua&&y0 &ess than 21 are used $#r h#'e

c#nsu'%ti#n. "he '#st i'%#rtant e%#rters in 2111 *ere Canada (IF!

$#&*ed by Be&arus0 Russia and Ger'any0 acc#untin, $#r ab#ut F each

*hi&e 6srae& (! and /#rdan (4! have ,radua&&y ,ained 'ar-et share

T+56 #.3

1$6< P1+/* P$1


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de%#sits in Bra@i&0 "hai&and0 :a#s and e&se*here0 since the startu% #$

ne* 'ines *#u&d reuire heavy $inancia& underta-in, in additi#n t#

c#'%etin, *ith 'any #$ the * c#st %r#ducers.

"# r#undu%0 there are t*# #ther %#tassiu' sa&ts that are

se&ective&y used in a,ricu&ture %#tassiu' su&%hate *hich is $#r cr#%s

that are &ess t#&erant t# chrides0 $#r ea'%&e0 t#bacc# and #ther

s#&anace#us cu&tivars and certain ve,etab&es0 and %#tassiu' nitrate0

&ar,e&y used in $erti,ati#n. P#tassiu' su&%hate can be $#und in natura&&y

#ccurrin, c#'%&e #res such as &an,beinite0 -ainite0 #r it is %r#duced by

reactin, su&%huric acid and HC&. Si'i&ar&y0 %#tassiu' nitrate is #btained

$r#' de%#sits in Chi&e #r by the reacti#n #$ nitric acid *ith HC&.

Ph#s%hates

Ph#s%hate %&ays a centra& %art in the ener,y trans$errin, %r#cesses

#$ a&& &ivin, #r,anis's. 6ts r#&e in yie&d enhance'ent and r##tin, are *e&&

-n#*n. 6t is added as $eed su%%&e'ents in &ivest#c- and %#u&try and in

enrichin, the $##d chain in auacu&ture. 6t is *ide&y used in the

'anu$acture #$ %har'aceutica&s0 deter,ents and in *ater treat'ent. ;ine

,rade %h#s%h#ric acid is used in s#$t drin-s and $##d %r#ducts.

Ab#ut E1 #$ the %h#s%hate is derived $r#' de%#sits #$ sedi'entary

#ri,in *hi&e the i,ne#us de%#sits 'a-e u% the re'ainder. "he &atter are $#und

in Russia (H#&a!0 S#uth A$rica (Pha&ab#r*a!0 *ith s'a&&er de%#sits in Bra@i&0

;in&and and ?i'bab*e (;i,ure 2!. "he %h#s%hate r#c- 'inera,y is

etre'e&y c#'%&e. ;#r instance0 the sedi'entary a%%etites c#ntain besides

%h#s%h#rus the i#ns such as Ca 0 Na 0 , 0 ;0 and C3 *ith varyin,

de,rees #$ substituti#n a'#n, the'se&ves. 6r#n and a&u'inu' are a&s#

%resent in certain de%#sits. "he c#'%&eity #$ their c#'%#siti#n h#&ds the -ey

t# bene$iciati#n %r#cess and as *e&& as the de,ree #$ s#&ubi&ity durin,

acidu&ati#n. "he c#nta'inati#n *ith radi# nuc&ides and cad'iu' bears

i'%#rtant c#nsiderati#n *ith res%ect t# envir#n'enta& re,u&ati#ns.

F1


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A ,ba& reserve #$ the %h#s%hate r#c- eceeds 41 bi&&i#n t#nnes0 an

euiva&ent #$ near&y 511 years #$ %r#ducti#n at current rates. "he c#ntinu#us

'inin, #$ the hi,h&y c#ncentrated #res (avera,e F.I P235! #ver the &ast

decade #r '#re *i&& eventua&&y shi$t the e%itati#n t# *er ,rade #res and

this is b#und t# drive u% c#st. A&ready s#'e researches are bein, c#nducted

t# ea'ine a&ternate but viab&e 'eans at etractin, the 'ar,ina& #res.

T+56 #.

1$6< P*1/,*+ R1@ P$1


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CaF1;2(P3I!4 F12S3I 23 4P3I F1CaS3I.y23 2;

6n the dehydrate %r#cess the ,y%su' is $u&&y hydrated CaS3I.223

and in the he'i hydrate %r#cess &ess *ater #$ crysta&&i@ati#n is retained

CaS3I.V23. e'ihydrate %r#cesses have the si,ni$icant advanta,e #$

%r#ducin, %h#s%h#ric acid *ith a re&ative&y hi,h c#ncentrati#n *ith#ut

res#rtin, t# a c#ncentrati#n sta,e. "he c#'%&eity #$ the r#c- c#'%#siti#n

has #$$ered #%%#rtunity t# severa& c#'%anies that s%ecia&i@e in e%itin,

the di$$erentia& advanta,es #$ b#th the %r#cesses.

"ab&e F.I sh#*s the *#r&d %r#ducti#n #$ %r#cessed %h#s%hates by

re,i#n. N#rth A'erica and A$rica d#'inate the sta,e since they acc#unt

$#r a&'#st 41 #$ the %h#s%h#ric acid %r#ducti#n. USA is current&y the

,ba& &eader in the %r#ducti#n #$ %r#cessed %h#s%hates (%h#s%h#ric acid0

AP0 +AP!. 6n 2111 it is by $ar the &ar,est e%#rter #$ +AP0 ca%turin, 55

#$ the e%#rt 'ar-et in s%ite su$$erin, a dr#% #$ 1 in the %recedin, year

("ab&e F.5!. A%%r#i'ate&y #ne in t*# t#nes #$ +AP and AP %r#duced is

s#&d acr#ss the nati#na& b#rder. Asia is the bi,,est 'ar-et $#r +AP and

a%%r#i'ate&y 41 are s#&d there. "he &ar,est i'%#rters are China (2111

FE5 Ht P235!0 6ndia (II2 Ht!0 Pa-istan (1 Ht!0 ietna' (245 Ht! and

/a%an (21E Ht!. "he Asian0 3ceania and :atin A'erican 'ar-ets are

d#'inated by USA. 3n the #ther hand0 the >est


40/437


:atin A'erica F4E 559 FE 5I>est #r&d


41/437


At&antic and the B&ac- Sea areas. USA %resence is 'uch '#re ,ba& ece%t

in


42/437


"he startin, che'ica& bc- in the nitr#,en industry sect#r is

a''#nia0 #$ *hich 91 is channe&ed t#*ards 'a-in, $erti&i@ers. A''#nia

is a&s# the %recurs#r $#r 'any industria& che'ica&s. 6ts derivative0 urea0

$#r's is the &ar,est c#'%#nent in the $erti&i@er industry t#ta&in, near&y 91

'i&&i#n t#nnes. Urea is a&s# used in the %r#ducti#n #$ adhesives0 dyes0

%&astic0 resins0 %##& che'ica&s and as $eed su%%&e'ents $#r &ivest#c-.

An#ther derivative #$ a''#nia is nitric acid *hich is used in the %r#ducti#n

#$ car%ets0 &acuers0 %aints0 tyres0 e%sives0 batteries and in

%h#t#,ra%hy. A''#niu' nitrate0 an end%r#duct #$ nitric acid0 is a %#%u&ar

$erti&i@er0 %articu&ar&y in the te'%erate @#ne $#r sh#rt 'aturity cr#%s.

A''#niu' nitrate is used as e%sive $#r 'inin, and 'uniti#ns

A''#nia

"he ear&iest aberB#sch a''#nia %&ants *ere de%ended #n c#-e

based %r#ducer ,as as a s#urce #$ hydr#,en. C#a& ,asi$icati#n reduced

the de%endency #n its %r#i'ity t# stee& %&ants. By the F951s the use #$

natura& ,as has a&*ed the en&ar,e'ent #$ the %&ant ca%acity0 initia&&y F45

t%d in F95 t# 411 t%d in F945. N#*adays0 %&ants *ith sin,&etrain ca%acity

#$ F511 t%d FE11 t%d are n#t unc#''#n. >hi&e USA c#ntinued t# e%it

its abundant natura& ,as in the F91s the #ther deve%ed c#untries

turned t# na%htha and $ue& #i& since they *ere chea%&y avai&ab&e. A$ter the

#i& crisis #$ F9JI0 natura& ,as beca'e the $eedst#c- #$ ch#ice.

Current&y0 ab#ut threeuarters #$ the *#r&ds a''#nia %r#ducti#n is

derived $r#' natura& ,as. 3$ the ba&ance0 F4 is #btained $r#' c#a&0 'ain&y

a'#n, the E11 s'a&& ABC %&ants scattered a&& #ver China. ;ue& #i&s and

na%htha have a &i'ited share and these %&ants are '#st&y c#n$ined t# 6ndia.

A''#niu' su&%hate is the #n&y si,ni$icant nitr#,en#us $erti&i@er that is n#t

direct&y derived $r#' a''#nia. 6t is a by%r#duct #$ the ca%r#&acta' and acry&

nitrite 'anu$acture. A''#nia su%%&y h#&ds the -ey t# the understandin, #$

nitr#,en#us $erti&i@ers su%%&y. 6t has ,r#*n $r#' stren,th t# stren,th $r#' 9.

F5


43/437


t N in F99I t# an esti'ated F1.E t N in 21110 des%ite a s*d#*n

in de'and $#r nitr#,en#us $erti&i@ers. A su''ary #$ a''#nia

%r#ducti#n and e%#rt by re,i#n $#r 2111 is sh#*n in "ab&e F.

"he bu&- #$ the a''#nia %r#duced in Asia is $#r h#'e

c#nsu'%ti#nO *hi&e the e%#rt #riented c#untries are "rinidad0 U-raine0

Russia0 Xatar and severa& #thers $r#' the ,asrich re,i#ns ("ab&e F.E!.

"rade in a''#nia is $ar '#re restrictive than any #ther $erti&i@ers since

s%ecia& dischar,e ter'ina&s and st#ra,e $aci&ities are necessary.

A&th#u,h a very &ar,e t#nna,e is %r#duced in USA0 it c#ntinues t#

re&y #n a''#nia i'%#rts t# su%%&e'ent its %r#ducti#n #$ a''#niu'

%h#s%hate in *hich it is the &eadin, e%#rter. Si@ab&e uantities are

i'%#rted by 6ndia and the &eadin, industria&i@ed c#untries in >est


44/437


"3

re,i'e. Because #$ the >"3 c#''it'ents0 uantitative restricti#ns have t#

be re'#ved by the end #$ arch 211F. Chea%er i'%#rts c#u&d threaten the

d#'estic industry s%ecia&&y the units that d# n#t use ,as as $eedst#c-. +ue t#

inherent ine$$iciencies and c#st disadvanta,e0 n#n,asbased units %r#ducin,

#ver 1 %er cent #$ the d#'estic #ut%ut *#u&d n#t be ab&e t# c#'%ete in a

,ba&&y c#'%etitive envir#n'ent. hi&e the c#untry has been t#ta&&y de%endent #n i'%#rts $#r its %#tash

reuire'ents and &ar,e&y de%endent $#r %h#s%hate reuire'ents0 it is s##n

,#in, t# e%erience si'i&ar situati#n in urea 'anu$acture as *e&&. Natura& ,as0

I4


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84/437


see that the industry &ives u% t# these cha&&en,es. ;reuent

chan,e in ,#vt %#&icy has a$$ected the ,r#*th #$ industry.

28 C##%erative sect#r is $#und t# be %er$#r'in, *ee- in 'ana,in,

the recent trends in industry.

8 "he %#&icy #$ c#st%&us %ricin, ha s a$$ected the industry in

ne,ative 'anner.

8 "he c#''it'ents #$ >"3 are a$$ectin, the ,r#*th #$ industry.

38 P#tash reuire'ent sh#u&d be satis$ied $r#' *ithin the c#untry

s# that $act#r #$ de%endency #n #ther c#untries reduced.

48 +istributi#n net*#r- is *ea- in c#'%aris#n t# #ther c#untries.

G#vern'ent P#&icy s. ;erti&i@er 6ndustry


85/437


86/437


,iven rise t# the %r#s%ects #$ ear&y :NG i'%#rt int# the c#untry by 211I15. 6t

is e%ected that by the ter'ina& year #$ the tenth ;ive Kear P&an0 I5 :NG

ter'ina&s 'ay be #%erati#na& at di$$erent c#asta& cati#ns in the c#untry.

"he +ahe) :NG ter'ina& #$ Petr#net :NG :td. (P::! has a&ready

been c#''issi#ned. "he $erti&i@er industry is in ne,#tiati#ns *ith the

%r#s%ective :NG su%%&iers #n the issues #$ %ricin, and avai&abi&ity #$ :NG.

An 6nterinisteria& Gr#u%0 under the Chair'anshi% #$ +e%uty Chair'an.

P&annin, C#''issi#n has been c#nstituted t# de&iberate #n these issues.

"he G#vern'ent has a&ready ann#unced a %#&icy $#r treat'ent #$ c#nversi#n #$

the n#n,as based units t# NGJ :NG. Under this %#&icy0 *hi&e the invest'ents

'ade #n c#nversi#n *i&& n#t be rec#,ni@ed0 the #%erati#na& e$$iciency inc&udin,

ener,y e$$iciency arisin, $r#' c#nversi#n t# NGJ:NG *i&& n#t be '#%%ed u% $#r a

'ai'u' %eri#d #$ 5 years in res%ect #$ na%htha based %&ants and $#r F1 years in

res%ect #$ ;3J:SS based %&ants $r#' the date #$ c#''issi#nin, #$ the

c#nverted %&ant. "he %r#%#sed :#n, "er' ;erti&i@er P#&icy has cha&-ed #ut a

three %hased %r#,ra''e startin, 21111F t# 21141 *ith de$inite acti#ns t# be

%er$#r'ed in each %hase as &isted be*O

P*+/ # !"""-"# +9< !""#-"!

(A! Re'#va& #$ Aberrati#ns and +e$iciencies

18Reassess'ent #$ ca%acity and '#du&ati#n #$ #$$ ta-e

de%endin, 3n de'and

28 6ncrease in the %rice #$ urea at re,u&ar interva&s

8 6'%r#ve'ent in the i'%&e'entati#n #$ the c#ncessi#n sche'e

(B! 6nitiati#n #$ Ne* easures

18 "he %r#b&e' #$ $eedst#c-

28 ;easibi&ity #$ a c#a& based techn#,y

8 /#int entures

8 +ecisi#n #n $erti&i@er %ricin, %#&icy

51


87/437


38 P#&icy t#*ards creati#n #$ ne* ca%acity

48 >"3 re&ated 'atters

78 Re'#va& #$ distributi#n c#ntr#&s #n urea

58


88/437


At %resent0 there is n# b#nd rate #$ duty #n urea and G#vern'ent

can i'%#se a hi,her tari$$ say F51211 %er cent in $uture. But %e,,in, the

duty at such &eve&s 'ay n#t be a%%r#%riate because i'%#rts #$ urea thus

*i&& bec#'e c#st&y t# 'eet the de'andsu%%&y ,a% *hich is &i-e&y t#

increase in $uture. "he "RX #%ti#n *i&& there$#re0 %r#vide the $&eibi&ity in

i'%#rtin, a certain critica& uantity at a *er duty. Urea i'%#rts have been

cana&i@ed thr#u,h "C0 S"C and 6P:. "he ei' %#&icy has c#ntinued

*ith this arran,e'ent0 th#u,h it has been 'enti#ned that the desi,nated

%arastata&s *#u&d have t# $uncti#n hence$#rth #n C#''ercia& Princi%&es

in acc#rdance *ith Artic&e L66 #$ GA"". 6n #ther *#rds they can i'%#rt

any uantity *ith#ut any restricti#n. "here *i&& be a b#nd rate #$ 5 %er cent

cust#' duty #n i'%#rt #$ +AP and 3P. "he >.".3 re&ated issues are

under detai&ed ea'inati#n by the G#vern'ent.

"y%es #$ ;erti&i@ers = ;erti&i@er anu$acturin, Pr#cess

F$464;$ T>,/

Because every cr#% is di$$erent and the s#i&s and *eather c#nditi#ns

cr#%s are ,r#*n in vary dra'atica&&y ar#und the *#r&d0 c#''ercia& $erti&i@ers0

*hich are 'anu$actured $r#' natura& s#urces0 c#'e in 'any $#r'u&ati#ns.

C#'binin, air *ith hydr#,en usin, natura& ,as as the $eedst#c- 'a-es

a''#nia0 the bui&din, bc- $#r nitr#,en $erti&i@ers. A''#niated %h#s%hates0

*hich inc&ude '#n#a''#niu' %h#s%hate (AP! and dia''#niu'

%h#s%hate (+AP!0 are 'ade by reactin, a''#nia *ith %h#s%h#ric acid.

uriate #$ %#tash0 a&s# ca&&ed %#tassiu' chride0 is 'ade $r#' 'ine #res

that have been %r#cessed t# re'#ve natura&&y #ccurrin, sa&ts. A''#niu'

nitrate is a s#&id $erti&i@er c#ntainin, a%%r#i'ate&y I %ercent nitr#,en that is

*ater s#&ub&e and used in vari#us $erti&i@er s#&uti#ns. Aua a''#nia is

an#ther nitr#,enbased $erti&i@er 'ade by c#'binin, a''#nia *ith *ater. 6t

c#ntains u% t# 25 %ercent nitr#,en and is either a%%&ied direct&y t# the s#i& #r

is used t# 'anu$acture %h#s%hate $erti&i@ers.

52


89/437


N4$109 /16=419/

"hey are *ater s#&uti#ns #$ a''#nia0 a''#niu' nitrate and0

s#'eti'es0 urea0 a s#&id $erti&i@er c#ntainin, a%%r#i'ate&y I5 %ercent

nitr#,en0 and #ther s#&ub&e c#'%#unds #$ nitr#,en. Nitr#,en s#&uti#ns are

used in a''#niatin, su%er %h#s%hate0 the 'anu$acture #$ c#'%&ete

$erti&i@er and $#r direct in)ecti#n int# the s#i&. "hey vary in c#'%#siti#n and

nitr#,en c#ntent and are s#'eti'es a%%&ied under %ressure.

N4$109 (N)

Nitr#,en is a %art #$ a&& %&ant %r#teins and is a c#'%#nent #$ +NA

and RNA the Mb&ue%rintsM $#r ,enetic characteristics. 6t is necessary $#r

%&ant ,r#*th and chr#%hy&& %r#ducti#n. Nitr#,en is the bui&din, bc- $#r

'any $erti&i@ers. >here d#es N c#'e $r#'] Nitr#,en is %resent in vast

uantities in the air0 'a-in, u% ab#ut E %ercent #$ the at'#s%here.

Nitr#,en $r#' the air is c#'bined *ith natura& ,as in a c#'%&e che'ica&

%r#cess t# 'a-e a''#nia. Ph#s%h#rusJPh#s%hate (P!

Ph#s%h#rus as a nutrient is s#'eti'es '#st va&uab&e t# %&ants *hen %ut

near the seed $#r ear&y %&ant hea&th and r##t ,r#*th. P&ant r##t u%ta-e is

de%endent #n an adeuate su%%&y #$ s#i& P. Ph#s%h#rus is re&ative&y ins#&ub&e in

*ater. "he *ater in '#st s#i&s c#ntains #n&y a $e* %#unds #$ P %er acre. S# $#r a

cr#% such as c#rn0 s#i&s 'ust re%&ace a&& #$ the P in the s#i& *ater 2 t# ti'es

each day t# 'eet the cr#%s de'and $#r P. Ph#s%h#rus c#'%#unds he&% in

directin, *here ener,y *i&& be used. Ph#s%h#rus c#'%#unds are needed in %&ant

%h#t#synthesis t# Mre%ac-a,eM and trans$er ener,y. Ph#s%hate is a&s# a

c#'%#nent #$ +NA0 s# it is #ne #$ the bui&din, bc-s #$ ,enes and

chr#'#s#'es. Ph#s%h#rus is inv#&ved in seed ,er'inati#n and he&%s %&ants t#

use *ater e$$icient&y. >here d#es P c#'e $r#'] Ph#s%h#rus #ccurs in natura&

,e#,ica& de%#sits. +e%#sits can be $#und in the U.S. and #ther %arts #$ the

*#r&d. "# 'a-e the P in %h#s%hate #re s#&ub&e and avai&ab&e $#r %&ants t# use0

5


90/437


91/437


"he inter'ediate %r#duct in the case #$ nitr#,en (N! $erti&i@ers is

a''#nia (N!0 *hich is %r#duced by c#'binin, nitr#,en etracted

$r#' the air *ith hydr#,en $r#' hydr#carb#ns such as natura& ,as0

na%htha #r #ther (heavier! #i& $racti#ns0 and hydr#,en *hich is #btained

by 'eans #$ the Stea' Re$#r'in, Pr#cess. A%%r#i'ate&y E5 #$ the

anhydr#us a''#nia %&ants in the


92/437


P1+/* F$464;$/

#st %#tassiu' (H! is rec#vered $r#' under,r#und de%#sits #$ s#&ub&e

'inera&s0 in c#'binati#n *ith either the chride #r su&%hate i#n. A&th#u,h the

*,rade0 unre$ined 'ateria& can be a%%&ied direct0 the 'inera&s are n#r'a&&y

%uri$ied0 t# re'#ve s#diu' chride0 and c#ncentrated be$#re use. "he

resu&tin, %#tash $erti&i@ers are a%%&ied as strai,ht H $erti&i@ers such as

%#tassiu' chride and %#tassiu' 'a,nesiu' su&%hate #r are used in the

'anu$acture #$ 'u&tinutrient $erti&i@ers.

M=64-9=$49 F$464;$/#st 'u&tinutrient $erti&i@ers %r#duced in the


93/437


restricti#ns *ere i'%#sed #n ca%acity uti&i@ati#n #$ Urea at 92 as a

c#nseuence the %r#ducti#n #$ urea dec&ined. "he increase in

%r#ducti#n #$ t#ta& N is #bserved due t# increase in %r#ducti#n #$ +AP

and #ther c#'%&ees *hich a&s# have N. Pr#ducti#n #$ +AP durin,

21111F *as F1 hi,her c#'%ared t# %revi#us year. "he ca%acity

uti&i@ati#n $#r P235 $erti&i@ers *as cent %er cent ("ab&e F.25!.

Ne* Ca%acity bui&din, $#r %r#ducti#n #$ urea *i&& n#* ta-e %&ace

*here the natura& ,as is avai&ab&e in abundance and at * %rice

T+56 #.!C+,+4> +9< ,$1


94/437

5


95/437


P$1


96/437


97/437


$erti&i@er industry has n#t attracted any si,ni$icant invest'ent. N#

'u&tinati#na& has invested in $erti&i@er sect#r in 6ndia.

+ue t# su$$icient indi,en#us ca%acity and * internati#na& %rices

#$ urea the G#vern'ent #$ 6ndia in ;eb. 2111 decided that n# ne*

,rassr##ts %r#)ects *i&& be a&*ed durin, the net three years in %ub&ic0

%rivate #r c##%erative sect#r. S# even i$ the G#vern'ent revie*s its

decisi#n0 the ear&iest a %r#)ect c#u&d start *#u&d be by 211I15.

G#vern'ent is a&s# c#nsiderin, disinvest'ents #$ its euity #$

%ub&ic sect#r $erti&i@er units u% t# 5F %er cent #r even '#re. "hus0 handin,

#ver the 'ana,e'ent c#ntr#& #$ the c#'%any t# a strate,ic buyer. "he

disinvest'ent in Nati#na& ;erti&i@er :i'ited (N;:!0 a 'a)#r urea %r#ducer in

the c#untry is under*ay.:ac- #$ avai&abi&ity #$ natura& ,as in the c#untry

has %r#'%ted invest#rs t# c#&&ab#rate $#r )#int ventures abr#ad $#r urea

%r#ducti#n. Gu&$ c#untries0 due t# abundant avai&abi&ity #$ ,as0 nearness t#

6ndian sh#res and invest'ent $riend&y envir#n'ent0 are bec#'in, the $irst

ch#ice $#r )#int ventures.A'#n, the Pub&ic Sect#r Units0 "he ;erti&i@er

C#r%#rati#n #$ 6ndia :i'ited (;C6!0 industan ;erti&i@er C#r%#rati#n :i'ited

(;C!0 Pr#)ects = +eve%'ent 6ndia :i'ited (P+6:!0 Pyrites0 Ph#s%hates

= Che'ica&s :i'ited (PPC:! *ere dec&ared sic-. "hey are under

c#nsiderati#n #$ Bureau #$ 6ndustria& and ;inancia& Restructure (B6;R!.

As 6ndia d#es n#t have %#tentia& r#c- %h#s%hate reserve0 it is

c#'%&ete&y de%endent #n i'%#rt #$ either r#c- %h#s%hate #r %h#s acid

#r +AP. "here has been ne* ca%acity additi#n by *ay #$ i'%#rtin, r#c-

%h#s%hate and c#nvertin, it t# %h#s acid and then t# +APJNPH #r

c#nversi#n #$ %h#s acid at r#c- %h#s%hate 'ines abr#ad in / and

i'%#rtin, %h#s%h#ric acid $#r $urther c#nversi#n t# +APJNPH. 6t is

heartenin, t# n#te that a%art $r#' the #%eratin, )#int venture %&ants $#r

%h#s%h#ric acid in Sene,a&0 /#rdan and #r#cc# s#'e '#re %r#)ects

and e%ansi#ns are bein, c#nte'%&ated by the 6ndian c#'%anies.

59


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S=5/4 19 F$464;$/

"he uni#n bud,et $#r 21111F raised urea %rices by F5 %ercentO +AP by

%ercent and that #$ 3P by F5 %ercent. "his '#ve enab&ed the G#vern'ent #$

6ndia (G36! t# %rune the subsidy bi&& t# s#'e etent. #*ever0 there *as n#

increase in urea %rice in the uni#n bud,et $#r 211F12. 6n the n, ter' %#&icy0 the

subsidy *ithdra*a& in a %hased 'anner has been %r#%#sed. #*ever0 '#da&ities

t# %hase #ut the subsidy have n#t been c&ear&y 'enti#ned.

>ith the *ithdra*a& #$ subsidy and c#ncessi#ns the %rices #$ $erti&i@ers

*i&& increase. 6n the t#ta&&y dec#ntr#&&ed scenari#0 the stabi&ity and uni$#r'ity #$

$erti&i@er %rices is n#t &i-e&y t# be achieved. 6ndian $ar'ers *h# *ere ,ettin,

$erti&i@ers a&'#st at the uni$#r' %rice thr#u,h#ut the c#untry 'ay n#t c#ntinue

t# avai& this #%%#rtunity. "hey 'ay a&s# *itness $&uctuatin, 'ar-et %rice #$ a

$erti&i@er *ithin a sh#rt s%an #$ #ne cr#% seas#n. Such %rice variati#n 'ay

a$$ect $ar'ers %urchase decisi#n as *e&&.

R/+$* +9< D861,79 E221$/

;erti&i@er use in 6ndia is 'ain&y &i'ited t# urea0 +AP0 3P and SSP.

ith#ut R = + e$$#rts 6ndian $erti&i@er industry *i&& c#ntinue

t# e'%y stere# ty%e #%erati#n and there *i&& be &itt&e inn#vati#n.

CONCLUSIONS

1 G#vern'ent is c#nte'%&atin, c#'%&ete dec#ntr#& in %hased

'anner by 21141.

2 Xuantitative restricti#ns #n $erti&i@er i'%#rts have been re'#ved

since A%ri& F0 211F.

4

1


99/437


1 "he i'%&icati#ns #$ %resent %#&icy envir#n'ent $#r $erti&i@er sect#r

in 6ndia are n#t %r#'isin,. "here are %#ssibi&ities that d#'estic

%r#ducti#n and c#nsu'%ti#n #$ $erti&i@ers 'ay dec&ine.

2 "he %#&icy c#nsiderati#ns *hich are &i-e&y t# be i'%&e'ented 'ay

resu&t in 'a-in, the d#'estic %r#ducti#n #$ $erti&i@ers unviab&e.

At %resent there is n# de'andsu%%&y ,a% in urea.

A s*itch #ver in $eed st#c- $r#' na%htha t# :NG $#r urea is

envisa,ed de%endin, #n its avai&abi&ity and %rice.

3 i,h ener,y c#st d# n#t %er'it $urther e%ansi#n in urea ca%acity

*ithin the c#untry0 )#int ventures abr#ad are &i-e&y t# be deve%ed.

4 ;#r %h#s%hateJ%#tash a&s#0 )#int ventures abr#ad are &i-e&y t# be

deve%ed as there is n# %#tentia& reserve *ithin the c#untry.

Recent +eve%'ent and Brie$ Ne*s #$ ;erti&i@er 6ndustry

P*1/ +4< ,$4/ /,4$+6 1= 12 19$16

Ph#s acid su%%&iers have raised their %rices by a *h#%%in, QF1 %er

t#nne t# bet*een QI9Q51 %er t#nne in u#tes sub'itted t#day. "he %rice

%aid $#r su%%&ies &ast year *as QI12.5 c$r. "he *est %rice *as u#ted by

3CP #$ #r#cc#0 at QI9 c$r0 $#r su%%&y #$ 4.I1 &a-h t#nnes #$ %h#s acid. "he

#$$er ca'e *ith a 41day interest $ree credit va&id unti& A%ri& 10 2115. "he #ther

uantity su%%&ier *as ;#s-#r0 at I0F10111 t#nnes0 at a %rice #$ Q514 c$r %er

t#nne. "he u#tes *ere sub'itted t#day in Ne* +e&hi t# the Ph#s Acid

C#nsu'er Gr#u%. Su%%&iers have been ca&&ed $#r ne,#tiati#ns #n A%ri& FF0

2115. "he *ebsite carries here detai&s #$ a&& u#tes received t#day.

MFL :+9/ 2+4$


100/437


C#nsu'er Gr#u%. +es%ite the c#'%anys *i&&in,ness t# #%en :JCs0

b#th ;#s-#r and 3C; had a%%arent&y $ai&ed t# 'eet their c#''it'ents.

3s*a& Che'ica&s and ;erti&i@ers had a&s# bac-ed #ut #$ a dea& t#

su%%&y E10111 t#nnes #$ %h#s acid. ;: has n#* %&eaded *ith the +3;

that the PACG sh#u&d %ut t#,ether a 'echanis' t# ensure $air

distributi#n #$ avai&ab&e uantities #$ %h#s acid. 6t has a&s# as-ed the

+3; t# '#nit#r the $air distributi#n #$ c#''itted uantities s# that

Mstr#n,er cust#'ers d# n#t snatch a*ay the 'ateria&M. P"GA6:

a,rees t# se&& 5.54 ''sc'd #$ ,as at Q.J''btu ;erti&i@er

c#'%anies acce%t dea& under %r#test but N"PC re$uses

GA6: and the Panna u-ta "a%ti (P"! c#ns#rtiu' have a,reed #n a

,as %rice #$ Q.J''btu (%&us trans'issi#n char,es and 'ar-etin, c#sts! $#r

su%%&y #$ 5.54 ''sc'd #$ ,as #n a %ri#rity basis t# %#*er and $erti&i@er

c#'%anies0 %#*er secretary S.C. "ri%athi discsed t# this *ebsite #n

>ednesday.


101/437


d#*n t# 5.5 ''sc'd0 in *hich ase there *i&& be %r# rata cuts #n a&cati#ns.

;erti&i@er c#'%anies see' &ess re&uctant than %#*er c#'%anies t# acce%t the

dea& because $eedst#c- %ricin, is a %ass thr#u,h under the c#st%&us

retenti#n %ricin, syste'. "his is n#t the case *ith %#*er c#'%anies *here

tari$$ increases are di$$icu&t t# i'%&e'ent and are #$ten b#,,ed d#*n in

re,u&at#ry red ta%e. #*ever0 there is n#* a rea&i@ati#n that chea% ,as *i&&

n#t n,er be avai&ab&e in the current dere,u&ated envir#n'ent.

DOF / 1 /9< SSP /=5/4 4//= 1 CCEA% /+>/

2$464;$ /$+$>

+es%ite the +e%art'ent #$ the %r#%#sa& t# substantia&&y hi-e subsidy %ay'ents t# sin,&e su%er

%h#s%hate (SSP! 'anu$acturers0 the +e%art'ent #$ ;erti&i@ers (+3;! is a&&

set t# send the %r#%#sa& t# the Cabinet C#''ittee #n


102/437


re%#rt. M>e *ant this issue t# be s#rted #ut s##n0M Ba*a t#&d this *ebsite.

MHPG see's t# have ca&cu&ated the c#'%ensati#n a'#unt *er than

that #$ P>C. y reuest is $#r an a'icab&e s#&uti#n because the issue has

been &in,erin, $#r a n, ti'e.M ean*hi&e0 Sinha has a&s# directed the

+3; #$$icia&s t# %re%are their c#''ent #n this issue.

NFL 49 +6@/ :4* S+=


103/437


+AP. "he 'ai'u' uantity #$ urea 20E50442 t#nne *as i'%#rted by

GN;C. Urea and +AP i'%#rts durin, Rabi %e,,ed at I. &a-h t#nne and .

&a-h t#nne "he +e%art'ent #$ ;erti&i@ers (+3;! has esti'ated the t#ta&

avai&abi&ity #$ urea at FF &a-h t#nne $#r Rabi 211I15 as a,ainst an assessed

reuire'ent #$ F1E.5 &a-h t#nne. "he #%enin, st#c- as #n 3ct#ber F0 211I0

is esti'ated at FF &a-h t#nne *hi&e %r#ducti#n $#r the entire Rabi %eri#d

(3ct#ber0 211Iarch0 2115! has %e,,ed at F1F. &a-h t#nne. Urea i'%#rt

durin, the seas#n is esti'ated at I. &a-h t#nne. Si'i&ar&y0 the t#ta& avai&abi&ity

#$ +AP $#r the seas#n is %r#)ected at I.I &a-h t#nne0 c#'%risin, #$ . &a-h

t#nne #$ i'%#rts0 an #%enin, st#c- #$ FF.9 &a-h t#nne and a Rabi %r#ducti#n

#$ 2.5 &a-h t#nne. "he #%enin, st#c- $#r 3P as #n 3ct#ber F0 211I0 is

esti'ated at 2.F &a-h t#nne. 6'%#rts #$ F5 &a-h t#nne #$ 3P u%t# ;ebruary

2E0 21150 t##- the t#ta& avai&abi&ity t# ab#ut F &a-h t#nne. "he sa&es re%#rted

durin, the sa'e %eri#d have been 9.I &a-h t#nne $#r direct a%%&icati#n *hich

&e$t an uns#&d st#c- #$ ab#ut 2.5 &a-h t#nne in vari#us $ie&d ,#d#*ns as #n

;ebruary 2E0 2115.

GNFC ,6+9/ 1 $/=7 /+6 12 AN 76 2$17 S,75$ !""

Gu)arat Nar'ada a&&ey ;erti&i@er C#'%any :td (GN;C! has s#u,ht

%er'issi#n $r#' the +e%art'ent #$ ;erti&i@ers (+3;! t# resu'e the sa&e #$

A''#niu' Nitrate (AN e&t!0 *hich *as disru%ted a$ter a $ire in #ne #$ the

c#'%anys nitr#%h#s%hate %&ants in ;ebruary 211I. A$ter the incident0 GN;C had

decided t# disc#ntinue the %r#ducti#n #$ AN (e&t! -ee%in, in 'ind the e%sive

nature #$ the %r#duct. As a %recauti#nary 'easure0 the c#'%any has a&s# shi$ted

the entire AN (e&t! $i&&in, stati#n #utside the %&ant battery &i'it t# av#id a

recurrence #$ the incident. N#* that the detai&ed en,ineerin, and %r#cure'ent

*#r-s are #ver in the %&ant0 GN;C has decided t# resu'e sa&es #$ AN (e&t! $r#'

Se%te'ber 2115."ari$$ C#''issi#n study #$ %i%e&ine tari$$ GA6: ha%%y *ith

rec#''endati#ns C#ntrary t# %#%u&ar be&ie$0 GA6: see's n#t unha%%y *ith the

"ari$$ C#''issi#ns interi' rec#''endati#n $#r a

45


104/437


sin,&e tari$$ $#r c#nsu'ers #$ :NG thr#u,h its trun- %i%e&ines. MGA6: *#u&d be

ha%%y t# acce%t a uni$#r' 'eth#d#,y based #n internati#na& %ractices *ith

c&ear&y s%e&t#ut n#r's #n i'%#rtant %ara'eters &i-e ec#n#'ic &i$e $#r ca%ita&

rec#very0 actua& avai&abi&ity and desi,n 'ar,ins $#r v#&u'e assu'%ti#ns0

nu'ber #$ #%erati#n days0 and in$&ati#nary e$$ect #n c#st #$ asset re%&ace'ent

and return #n euity. 3nce this is standardi@ed0 c#'%anies #ther than GA6:0

*hich are en,a,ed in the business #$ natura& ,as trans'issi#n in 6ndia #r

&i-e&y t# be en,a,ed in the ,as trans'issi#n business in 6ndia0 *#u&d a&s#

have t# adhere t# the n#r's rec#''ended by the "ari$$ C#''issi#n0 s# that

c#nsu'er interest is %r#tected in a&& the cases0M said a GA6: #$$icia& in a

*ritten reacti#n t# a re%#rt #n this *ebsite. Acc#rdin, t# GA6: the "ari$$

C#''issi#n has been as-ed by the %etr#&eu' 'inistry t# ta-e int# acc#unt

the i'%acts #$ actua& v#&u'e thr#u,h%uts and in$&ati#nary e$$ect #n c#st #$

asset re%&ace'ent in its $ina& re%#rt. M6t is %ertinent t# 'enti#n that as %er the

tari$$s 'andated by the inistry #$ Petr#&eu' and Natura& Gas0 R:NG

c#nsu'ers bey#nd i)ai%ur are char,ed a %ittance0 vi@. Rs. 22JF111 SC0

*hich is n#t re$&ective #$ the '#re than F0111 -'s #$ the / %i%e&ine $aci&ities

that they are usin, t# trans%#rt R:NG bey#nd i)ai%ur. As %er #ur esti'ates0

GA6: is su$$erin, an underrec#very t# the tune #$ Rs. IE cr#re annua&&y #n

acc#unt #$ R:NG c#nsu'ers *h# are usin, the / $aci&ities bey#nd

i)ai%ur. >e are #-in, $#r*ard t# char,e the uantu' #$ tari$$0 as

deter'ined by the "ari$$ C#''issi#n0 $#r trans'issi#n #$ R:NG thr#u,h the

/ syste' d#*nstrea' #$ i)ai%ur u% t# Ne* +e&hi0M GA6: said.

N:/ B$42

6nd# Gu&$ ;erti&isers :i'ited has ann#unced that the :i$e 6nsurance

C#r%#rati#n #$ 6ndia :td. has acuired 5E0F9 shares a,,re,atin, t# 1.F2 #$

the share ca%ita& #$ 6nd# Gu&$ ;erti&isers :td. #n arch FF0 2115. "he '#de #$

acuisiti#n is thr#u,h 3%en ar-et and the shareh#&din, #$ :i$e 6nsurance

4

4


105/437


106/437


auth#rised bu$$er st#c- $#r +AP is 2 &a-h t#nne0 *hich is a%%arent&y

inadeuate t# $u&$i&& the reuire'ent in case #$ sh#rta,es. "he

incre'enta& uantity #$ +AP *i&& be 'et either thr#u,h enhance'ent #$

indi,en#us %r#ducti#n #r i'%#rted +AP. M>e *i&& try t# ,et the

enhanced uantity thr#u,h additi#na& indi,en#us %r#ducti#n. 6$ that *i&&

n#t be %#ssib&e0 *e are ready t# even i'%#rt +AP t# have a better

bu$$er st#c-0M #$$icia& s#urces t#&d this *ebsite.

U$+ N:/

6P: has $ina&ised F50111 t#nne(JF1! bu&- %ri&&ed urea *ith Xa$c# at

USQ22 %er t#nne $#b *ith 1 days credit. "he 'ateria& *i&& $u&$i& the

reuire'ent #$ ?uari. "he shi%'ent *i&& be dischar,ed at an,are ar#und

sec#ndha&$ #$ A%ri& 2115.GA6: threatens t# disc#ntinue ,as su%%&y t# 6$$c#

$r#' A%ri&0 2115 +3; %&eads #n beha&$ #$ the c##%erative GA6: has

threatened n#t t# rene* the Gas Sa&e Purchase a,ree'ent *ith $erti&i@er ,iant

6$$c# a$ter it &a%ses #n arch F0 2115 un&ess a&& %ast dues are %aid u%. GA6:

has de'anded a %rinci%a& a'#unt #$ Rs 2F.E5 cr#re in un%aid dues. GA6:

says that it is under #b&i,ati#n t# su%%&y ,as t# 6$$c# #nce the c#ntract e%ires.

>hen c#'%#unded0 the a'#unt ,#es u% t# a sta,,erin, Rs 9 cr#re.

GA6:s c&ai' is bein, v#ci$er#us&y dis%uted by 6$$c#0 *hich c&ai's that there

are n# %ast dues t# be %aid t# GA6:. "he dis%ute is n#* under arbitrati#n #$

the Gu)arat i,h C#urt. ean*hi&e0 the +e%art'ent #$ ;erti&i@ers (+3;! has

*ritten a &etter t# the %etr#&eu' 'inistry ur,in, a,ainst disc#nnecti#n #$

su%%&ies t# the c##%erative ,iant. "he +3; is #$ the vie* that the dis%ute

sh#u&d be res#&ved thr#u,h 'utua& discussi#ns.

L+/ ,6+9-:4/


107/437


"he in$#r'ati#n carries here %r#ducti#n $i,ures #$ urea $#r the $irst

$#rtni,ht #$ arch 2115. 3ut%ut *as at E.FF &a-h t#nne a,ainst a tar,eted

%r#ducti#n #$ 4.92 &a-h t#nne. "he u%sur,e in #ut%ut is due t# increased

%r#ducti#n by N;:0 RC;0 GS;C0 S;C0 ?uari0 GN;C0 N;C: and "C: a,ainst

tar,et &eve&s. Pr#ducti#n c#u&d have been hi,her but $#r the $act that 6;;C30

Hribhc# and C;C: %r#duced &ess than their tar,eted &eve&s. "he data is a&s#

,iven cu'u&ative&y $#r the %eri#d A%ri& F0 211I t# arch F50 2115. A,ainst a

tar,et #$ FE4.1 &a-h t#nne #$ urea $#r A%ri&arch %eri#d0 %r#ducti#n has

been si,ni$icant&y hi,her at F95.51 &a-h t#nne. "he *ebsite carries here unit

*ise disa,,re,ated %r#ducti#n $i,ures $#r the $irst $#rtni,ht #$ arch 2115 and

cu'u&ative&y $#r A%ri& F0 211I t# arch F50 2115.

E,$ G$1=, 19/4=< 1 $84: ,*1/ +4< 21$7=6+

As %er the directive #$ $erti&i@er 'inister Ra' i&as Pas*an0 the

+e%art'ent #$ ;erti&i@ers (+3;! has c#nstituted an


108/437


d#*n*ards i$ the actua& %r#)ect c#st is *er. N# c#st esca&ati#n *i&& be

ta-en int# c#nsiderati#n $#r redeter'inati#n #$ :RAC. #*ever0 any

variati#ns in the ca%ita& c#st #n acc#unt #$ $#rei,n echan,e rate0

chan,es in rates #$ duties0 &evies and taes sha&& be c#nsidered.

K$45*1/ ,+9/419 ,$1-II D5-=4> $+41 24< + !.#

"he :#n, Run Avera,e C#st (:RAC! $#r Hribhc#s a@ira e%ansi#n

%r#)ect has been *#r-ed #ut #n a debt euity rati# #$ 2.5F. Hribhc# had ear&ier

%r#%#sed t# eecute the %r#)ect *ith a debt euity rati# #$ 2F t# %r#vide c#'$#rt

t# the &enders and t# have adeuate debt service c#vera,e rati# durin, the initia&

#%eratin, %eri#d. #*ever0 in acc#rdance *ith the %#&icy $#r ne* and e%ansi#n

urea units *hich %rescribes a debt euity rati# #$ 2.5F (indicative! $#r

deter'inati#n #$ :RAC the debt euity rati# $#r the a@ira e%ansi#n %r#)ect

has been $ied at the sa'e &eve&. ean*hi&e0 the euity %#rti#n #$ Rs 5E.2I

cr#re *i&& be arran,ed by Hribhc# $r#' its #*n res#urces and the debt #$ Rs

F0F44.IE cr#re $r#' ban-s and $inancia& instituti#ns. N# bud,etary su%%#rt is

reuired $r#' the ,#vern'ent $#r settin, u% this %r#)ect. "he *ebsite carries here

the su''ary #$ %er$#r'ance indicat#rs in res%ect #$ Hribhc#s %r#%#sa& and

$inancia& c#''it'ents #n the %r#)ect.

K$45*1/ ,+9/419 ,$1-III R/ "" $1$ /+8490/ 49 +,4+6 1/

Hribhc#s e%ansi#n %r#)ect is e%ected t# brin, ab#ut si,ni$icant savin,s. "he

%r#)ect *i&& save ar#und Rs 511 cr#re in ca%ita& c#st due t# avai&abi&ity #$ eistin,

in$rastructure and #$$site $aci&ities. "he %r#%#sed %&ant is a hi,h ca%acity %&ant and

reuires '#ve'ent #$ M3ver +i'ensi#na& C#nsi,n'entsM *hich is $easib&e at

c#asta& cati#ns &i-e a@ira. A%art $r#' these0 Hribhc# has its #*n %rivate rai&*ay

sidin, and 11 *a,#ns under its 3*n K#ur >a,#n Sche'e. "here$#re0 n# ,istic

%r#b&e's are antici%ated $#r the 6ndian Rai&*ays $#r trans%#rtin, the additi#na&

%r#ducti#n #$ $erti&i@er t# de$icit @#nes

1


109/437


&i-e the s#uth and east. #re#ver0 a@ira is &i-e&y t# be the hub #$ natura&

,asJ:NG in the c#untry *here ,as is e%ected t# be avai&ab&e at very

c#'%etitive %rices. "he de'and in Gu)arat and in surr#undin, states is

e%ected t# increase due t# the i'%&e'entati#n #$ vari#us irri,ati#n

sche'es. "his *i&& %r#vide Hribhc# *ith a ,##d 'ar-et t# se&& its $erti&i@er

%r#duced $r#' the %r#%#sed a@ira e%ansi#n %r#)ect. ;urther0 there are

#ther advanta,es in estab&ishin, indi,en#us urea %&ants #ver i'%#rts in

ter's #$ 'u&ti%&ier bene$its t# the ec#n#'y thr#u,h e'%y'ent

,enerati#n0 uti&i@ati#n #$ indi,en#us en,ineerin, ca%abi&ities0 desi,n

ca%abi&ities0 'anu$acturin, ca%abi&ities0 in$rastructure $aci&ities0 se&$

re&iance0 $##d security and sa$e,uards a,ainst %#&itica& u%heava&s abr#ad.

K$45*1/ ,+9/419 ,$1-IV P$1 84+56 89 + + 0+/ ,$4

12 .775=% 0489 =$+ ,$4 12 #" PMT

"he $erti&i@er de%art'ent has sti%u&ated that any ne* #r e%ansi#n

%r#)ect *i&& be ,iven subsidy #n the basis #$ the :#n, Run Avera,e C#st

%rinci%&e u% t# a de&ivered c#st #$ QJ''btu $#r natura& ,as and Q.51J''btu

$#r :NG. #*ever0 i$ this de&ivered %rice #$ NG eceeds US Q .1JB"U #r

#$ :NG eceeds US Q .5JB"U0 the %r#)ect *i&& ,et c#ncessi#n based #n

the esca&ated :RAC based %rice #r the %revai&in, i'%#rt %arity %rice #$ urea0

*hichever is *er0 *ith the #ri,ina&&y deter'ined :RAC based c#ncessi#n

actin, as the $#r c#ncessi#n rate0 $#r the initia& %eri#d #$ 5 years. 6t is seen

$r#' ca&cu&ati#ns 'ade $#r the %r#)ect that at avera,e i'%#rt %rice ($#b idd&e


110/437


any case0 as %er the %#&icy #n ne* and e%ansi#n %r#)ect #$ urea0 the

G#vern'ent *i&& revie* the c#ncessi#n t# be ,iven t# such %r#)ects

a$ter $ive years $r#' the date #$ c#''ercia& %r#ducti#n t# eva&uate the

#%ti#n bet*een :RAC based %rice and the i'%#rt %arity %rice #$ urea

ec&usive #$ $rei,ht and dea&ers 'ar,in.

B+6+9< =/ 12 2$464;$/ P+,$ :1$@/ 1= ,$4490 12 9=$49/

2$17 8+$41=/ /1=$/

"he in$#r'ati#n carries here a strate,y %a%er *ith *#r-in,s #n

nutrient %ricin, #$ N=P in di$$erent $erti&i@ers. "he re%#rt *as t# the "as- ;#rce

#n Ba&anced Use #$ ;erti&i@ers. "he strate,y ai's at i'%r#vin, the use #$ P

and H nutrients and reducin, the ecess use #$ N. "he %a%er su,,ests that in

#rder t# arrive at the NP rati# #$ I20 the %rice #$ urea needs t# be increased

$r#' Rs I0E1 %er t#nne t# Rs 4029 %er t#nne *hi&e -ee%in, the %rice #$ the

H at the sa'e &eve&. Since such a drastic increase in the %rice #$ urea 'ay

resu&t in resistance $r#' $ar'ers and a si,ni$icant reducti#n in urea #$$ta-e0

the re%#rt rec#''ends that the %rice hi-e be %hased #ut #ver a %eri#d #$ 5

years. "his 'easure *i&& resu&t in the reducti#n in subsidy #ut,# #n urea and

%art #$ the savin,s $r#' urea subsidy can be directed t# %r#'#te the

ba&anced use #$ $erti&i@er. "he %a%er $urther rec#''ends that there is a sc#%e

t# %r#'#te AP as a basa& d#se $erti&i@er because #$ its hi,h P c#ntent and

its a,r#n#'ica& suitabi&ity $#r a&& cr#%s and s#i&s. "his 'ay brin, d#*n the

c#nsu'%ti#n #$ +AP i$ the subsidy is a&s# etended t# AP. "hus0 the #vera&&

subsidy burden $#r %h#s%hatic $erti&i@ers is e%ected t# re'ain unchan,ed.

Current&y0 6ndia uses ar#und 2 t# 'i&&i#n t#nne #$ AP %er annu'. "he

current NPH c#nsu'%ti#n rati# is 4.92.4F as c#'%ared t# the ,enera&&y

acce%tedJdesired rati# #$ I2F. "he %a%er has a&s# su,,ested that adeuate

%rice *ei,hta,e be ,iven t# the MS c#'%#nent in s#'e $erti&i@ers by &in-in,

the %rice t# e&e'enta& su&%hur0 *hich *#r-s #ut t# a%%r#i'ate&y Rs 4 J-, 0

2


111/437


c#nsiderin, e&e'enta& su&%hur %rice at Rs I911 J". "he %a%er says that

subsidy su%%#rt sh#u&d be ,iven t# a&& 'icr# nutrients $#r $#rti$icati#n in

cust#'i@ed $erti&i@ers that are s#i&cr#% s%eci$ic as that is c#nsidered t# be

the best r#ute $#r de&iverin, the 'icr# nutrients. "he %a%er ,#es t# t#

%r#vide *#r-in,s #n %ricin, #$ nutrients c#'in, $r#' di$$erent s#urces.

MFL :+9/ 2+4$


112/437


Hribhc#s a@ira e%ansi#n %r#)ect *i&& have t# *ait $#r an#ther $e*

'#nths be$#re it can e&icit an a%%r#va& $r#' the Cabinet C#''ittee #n

ith the resu&t 0 the rec#very %r#ceedin,s initiated

a,ainst these individua&s in vari#us c#untries are sti&& in %r#,ress and ta-in,

ti'e in $ina&i@ati#n. Pursuant t# N;: $i&in, a reuest $#r arbitrati#n be$#re

6nternati#na& Cha'ber #$ C#''erce (6CC! #n

I


113/437


3ct#ber 0 F9940 a,ainst Harsan0 the 6CC "ribuna& rendered their $ina&

a*ard #n +ece'ber 0 F994 in $av#ur #$ N;:0 directin, Js Harsan t#

%ay N;: USQ I1.49 'i&&i#n %&us interest \ 5 #n USQ .42 'i&&i#n

*.e.$. N#ve'ber FI0 F9950 ti&& the ti'e #$ rec#very. "he stated a'#unt

in uesti#n c#nstitutes the %rinci%a& a'#unt0 da'a,es and interest

a*arded by the "ribuna& as #n arch F0 211I.

C=$$9 S+=/ 12 F$464;$ I9 49 I9


114/437


6ncrease in ra* 'ateria& c#st (s%ecia&&y in %r#curin, natura& ,as and

crude #i& %rice increase! and de&ays in ,ettin, subsidy %ay'ents $r#' the

,#vern'ent increased the #%eratin, c#sts $#r the c#'%anies resu&tin, in

#%eratin, %r#$it increasin, by #n&y 9 t# Rs 4EI cr#re. "he #%eratin,

'ar,in *as a&s# hit and reduced by 2II basis %#ints t# F1.F. Reducti#n

in interest %ay'ent as *e&& as de%reciati#n &ed t# a hea&thy ,r#*th #$ I1

in PB" &eve&s. ;ina&&y0 PA" increased by 42 t# Rs F4I cr#re. "he

%r#$itabi&ity has a&s# i'%r#ved due t# che'ica& business #$ the c#'%anies.

I9


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PB6" 'ar,in by 4E4 basis %#ints t# 1.2I. "his se,'ent c#ntributes 55

#$ the t#ta& sa&es revenue $#r the c#'%any and F #$ the t#ta& PB6".

Gu)arat State ;erti&i@er = Che'ica&s (GS;C! has re%#rted a 4

,r#*th in net sa&es t# Rs II9.F cr#re and PA" #$ the c#'%any a$ter

%ri#r %eri#d ad)ust'ent st##d at Rs 51.14 cr#re0 a dec&ine #$ 29. "he

$erti&i@ers se,'ent sa&es has re%#rted a ,r#*th #$ FI t# Rs F9.54

cr#re. "he $erti&i@ers se,'ent has c#ntributed II #$ the t#ta& revenue.

PB6" 'ar,ins $#r the se,'ent turned ne,ative t# .F1 $r#' I.I.

"hus PB6" #$ the se,'ent sh#*ed a ss #$ Rs FI.12 cr#re. 5 #$ the

t#ta& ca%ita& is e'%yed in the $erti&i@ers business. "he ca%ita&

e'%yed under this se,'ent *as hi,her by 21 t# Rs F5E1.5 cr#re.

+ee%a- ;erti&i@ers and Petr#che'ica&s C#r%#rati#n (+;PC:! sa&es

have increased by 2F t# Rs F44.4 cr#re. 3ne #$ the reas#n $#r revenue

,r#*th in the c#'%any is increase in sa&es #$ $erti&i@ers. PA" $#r the uarter

st##d at Rs 2I.9 cr#re as c#'%ared t# Rs 22.42 cr#re in c#rres%#ndin,

uarter in %revi#us year an increase #$ F1. "he $erti&i@ers se,'ent sa&es #$

'anu$acturin, $erti&i@ers re%#rted a 'assive ,r#*th #$ EI t# Rs F.4E cr#re

*hi&e revenue $r#' traded $erti&i@ers has increased by 5 t# Rs I.I5 cr#re.

3ver a&&0 this se,'ent rec#rded 4I ,r#*th in revenue t# Rs 4F.F cr#re.

"he $erti&i@ers se,'ent as *h#&e c#ntributed 4 #$ t#ta& in sa&es #$ *hich

'anu$actured $erti&i@ers c#ntributed FF *hi&e traded $erti&i@ers c#ntributed

25. PB6" 'ar,ins $#r the se,'ent has i'%r#ved $r#' F5.9 t# 9.F.

Se,'ent %#sted a ss #$ Rs 5.5E cr#re0 a reducti#n in ss by .

Rashtriya Che'ica&s and ;erti&i@ers (RC;! %#sted a net sa&es ,r#*th #$ 4 t#

Rs 45E.24 cr#re. PA" st##d at Rs .I4 cr#re c#'%ared t# a net ss #$ Rs 1.4F

cr#re in c#rres%#ndin, uarter #$ %revi#us year. "he "ha& divisi#n re%#rted a

'assive FE increase in net sa&es t# Rs I52 cr#re in the uarter ended /une

2114. PB6" increased by FIE t# Rs 24.94 cr#re. Ca%ita& e'%yed in this

divisi#n has been increased by 5F t# Rs FE.14 cr#re. "his divisi#n


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c#ntributed 49 #$ the sa&es and c#rnered ar#und 4 #$ ca%ita& e'%yed

as #$ /une 2114."r#'bay divisi#n re%#rted a E increase in net sa&es t# Rs

F9.41 cr#re in the uarter ended /une 2114. PB6" %#sted a ss #$ 4.22

cr#re a reducti#n #$ I4. Ca%ita& e'%yed in this divisi#n has been sca&ed

u% by FF t# Rs E42.IE cr#re. "his divisi#n c#ntributed 29 #$ the sa&es and

c#rnered ar#und 9 #$ ca%ita& e'%yed as #$ /une 2114.

Cha'ba& ;erti&i@ers sh#*ed a t#%&ine ,r#*th #$ F2. t# Rs 52.1

cr#re. PA" $e&& by 2. t# Rs .2 cr#re. "he c#'%any has t*# se,'ent

in the $erti&i@er divisi#n0 #ne is #*n 'anu$actured and the #ther bein,

traded se,'ent. 3*n 'anu$actured $erti&i@er se,'ent re%#rted a 24

increase in net sa&es t# Rs I1E.IF cr#re in the uarter ended /une 2114.

PB6" %#sted a %r#$it #$ 4E.4 cr#re an increase #$ 2I. Ca%ita& e'%yed

in this divisi#n has been sca&ed u% by t# Rs F99.4F cr#re. "his

se,'ent c#ntributed #$ the sa&es and 91 #$ PB6". "his se,'ent

c#rnered ar#und 4 #$ ca%ita& e'%yed as #$ /une 2114. "raded ,##ds

se,'ent re%#rted a FI $a&& in net sa&es t# Rs 5I.5I cr#re in the uarter

ended /une 2114. PB6" increased by 21 t# Rs 2.4I cr#re. Ca%ita&

e'%yed in this divisi#n has been increased by FE92 t# Rs 42.F4 cr#re

$r#' .F2 cr#re. "his se,'ent c#ntributed F1 #$ the sa&es0 #$ PB6"

and c#rnered ar#und 2 #$ ca%ita& e'%yed as #$ /une 2114.

N: U$+ P164>

"he $erti&i@er de%art'ent has s#u,ht the cabinets n#d $#r the ne* urea

%#&icy. "he de%art'ent has %r#%#sed t# deci'a&i@es urea i'%#rts. 6t has a&s#

%r#%#sed $ree urea i'%#rts $#r sa&e at RP #r be*. Pri#r a%%r#va& #$ the

$erti&i@er de%art'ent *as needed $#r the sa&e #$ i'%#rted urea.

N#* units can se&& urea n#t needed by the ,#vern'ent direct&y t# $ar'ers. "he

,#vern'ent *i&& a&s# c#nsider n,ter' buybac- $r#' urea /s abr#ad. A&s#0

urea /s abr#ad *i&& be a&*ed t# se&& direct&y t# $ar'ers at RP. "he entire urea

#ut%ut has been %r#%#sed be br#u,ht under the


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T+56 N1.#.!

A00$0+ 5+6+9 /* 12 2$464;$ 49 2$17 !""3-!""

I9 - F$464;$/ -N4$1091=/

P*1/,*+4^Rs. in

Crs._

KearL+

/ !"" !"" !"" !""3

N#. #$ C#'%anies 25 FE 2 2 2

INCOME

Sa&es "urn#verF01F1.1

42E01I2.2

1209F.I

420I9.9

F2F09FF.1

4


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Se&&in, and Ad'inistrati#n


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A00$0+ ,$124 +9< 61// 12 2$464;$ 49 2$17 !""3-!""I9 - F$464;$/ - N4$1091=/ P*1/,*+4

^Rs. inCrs._

KearL+

/ !"" !"" !"" !""3

N#. #$ C#'%anies 25 FE 2 2 2

INCOME

Sa&es "urn#verF01F1.1

42E01I2.2

1209F.I

420I9.

9F2F09FF.1

4


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90FEI.55

+ividend IFF.59 .1I IF2.95 5I.E4 I4I.4E

Pre$erence +ividend 1.1F 1.1F 1. 1 1.I

S#urce ;erti&i@er 'anu$acturers ass#ciati#n %ub&icati#n

C196=/419

E2


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3n the basis #$ ab#ve in$#r'ati#n researcher has c#nc&uded that Pr#$i&e

#$ the $erti&i@er 6ndustries0 the brie$ hist#ry #$ se&ected units #$ $erti&i@er

industries as *e&& as vari#us c#&&ected uantitative and ua&itative dataare use$u& t# nati#n and s#ciety $#r the $urther research.

R2$9/

1.

***.$ertindia.c#'

2. ***.utta'-rishi.c#'. ***.c$&india.c#'. ***.di%a-,r#u%.c#'3. ***.duncans$erti&[email protected]#'4. ***.$id%arry.c#'7. ***.,$c&.c#'5. ***.,nv$c.,u).nic.in6. ***.,s$e&i'ited.c#'F1.***.i$$c#.nic.inFF.***.ind#,u&$.c#.inF2.***.-ribhc#india.c#'F.***.'an,reche'ica&s.c#'FI.***.'adras$ert.c#'F5.***.na,ar)una,r#u%.c#'F4.***.nati#na&$erti&[email protected]#'F.***.nicindia.c#'FE.***.#s*a&.#r,F9.***.rc$&.C#'21.***.dsc&.c#'

E
http://www.fertindia.com/http://www.fertindia.com/http://www.fertindia.com/http://www.uttamkrishi.com/http://www.uttamkrishi.com/http://www.uttamkrishi.com/http://www.cflindia.com/http://www.cflindia.com/http://www.cflindia.com/http://www.dipakgroup.com/http://www.dipakgroup.com/http://www.dipakgroup.com/http://www.duncansfertilizer.com/http://www.duncansfertilizer.com/http://www.duncansfertilizer.com/http://www.fidparry.com/http://www.fidparry.com/http://www.fidparry.com/http://www.gfcl.com/http://www.gfcl.com/http://www.gfcl.com/http://www.gnvfc.guj.nic.in/http://www.gnvfc.guj.nic.in/http://www.gnvfc.guj.nic.in/http://www.gsfelimited.com/http://www.gsfelimited.com/http://www.gsfelimited.com/http://www.iffco.nic.in/http://www.iffco.nic.in/http://www.indogulf.co.in/http://www.indogulf.co.in/http://www.kribhcoindia.com/http://www.kribhcoindia.com/http://www.manglorechemicals.com/http://www.manglorechemicals.com/http://www.madrasfert.com/http://www.madrasfert.com/http://www.nagarjunagroup.com/http://www.nagarjunagroup.com/http://www.nationalfertilizers.com/http://www.nationalfertilizers.com/http://www.nicindia.com/http://www.nicindia.com/http://www.oswal.org/http://www.oswal.org/http://www.rcfl.com/http://www.rcfl.com/http://www.dscl.com/http://www.dscl.com/http://www.uttamkrishi.com/http://www.cflindia.com/http://www.dipakgroup.com/http://www.duncansfertilizer.com/http://www.fidparry.com/http://www.gfcl.com/http://www.gnvfc.guj.nic.in/http://www.gsfelimited.com/http://www.iffco.nic.in/http://www.indogulf.co.in/http://www.kribhcoindia.com/http://www.manglorechemicals.com/http://www.madrasfert.com/http://www.nagarjunagroup.com/http://www.nationalfertilizers.com/http://www.nicindia.com/http://www.oswal.org/http://www.rcfl.com/http://www.dscl.com/http://www.fertindia.com/


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Pr#ductivity itse&$ is a si,n #$ e$$iciency in %r#ducti#n. 6t 'ay be

i'%r#ved *hen %r#ducti#n is carried #ut *ith a vie* t# ec#n#'ica& 'anner.

:#*er %r#ductivity sh#*s the *aste and ine$$iciency in the use #$ res#urces.

i,h&eve& %r#ductivity resu&ts in hi,h &eve& #$ %r#$its. "he sharin, &eve& #$

%r#ductivity #-s t# it that 'ai'u' #ut%ut sh#u&d ta-e %&ace $r#' *hatever

'ini'u' in%ut #ne is en,a,es in the best #$ a c#ncern de%ends u%#n the

'ai'u' %r#$it it can dra*s. Acc#rdin, t# G#rd#n H.C. et a&.0 7*ith due

a&*ances $#r te'%#rary current va&ue in $&uctuati#ns #r chan,es in

c#''#dity #$ %r#duct %rices there is str#n, %#sitive c#rre&ati#n a'#n, ti'e

series data 'easurin, %r#ductivity0 %r#$itabi&ity #r e$$iciency8.

6t 'eans that a&& these 'easures indicates a rate #$ ,r#*th in ca%abi&ities #$

#r,ani@ati#n t# $u&$i&& their 'issi#ns na'e&y t# %r#duce and distribute '#re and

better %r#ducts #r services by 'ana,in, the deve%'ent and a%%&icati#n #$

techn#,y as *e&& as hu'an res#urces. Acc#rdin, t# A&an :a*&er 7e$$iciency

is c#'%rehensive 'easure #$ h#* #r,ani@ati#n satis$y the e$$ective&y

res#urces are used t# ,enerate use$u& #ut%ut8. Genera&&y e$$iciency can be

'easured by ta-in, int# acc#unt the in%uts and #ut%uts and there$#re

%r#ductivity is the e$$iciency and ca%acity #$ %r#ducin, di$$erent artic&es by the

raisin, the rate #$ %r#ductivity #r e$$iciency #$ the c#'%any #ne can $r#' an

9

2


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C3NChi&e in the

case #$ * ,r#ss %r#$it rati# it 'ay re$&ect hi,her c#st #$ ,##ds s#&d

due t# $ir's inabi&ity t# %urchase at $av#rab&e ter's0 #ver

invest'ent in %&ant and 'achinery etc. sec#nd&y this rati# *i&& a&s#

be * due t# a decrease in %rices in the 'ar-et.

(44) N P$124 R+41

Net Pr#$it is #btained *hen #%eratin, e%ensesO interest and taes are

subtracted $r#' the ,r#ss %r#$it. 6t indicates that the %#rti#n #$ sa&es is &e$t t#

the %r#%riet#rs a$ter a&& c#stsO char,es and e%enses have been deducted.

Net Pr#$it rati# is di$$er $r#' the #%eratin, Pr#$it t# Sa&es Rati# in

as 'uch as it is c#'%uted a$ter addin, n#n#%eratin, sur%&us J de$icit.

(+i$$erence #$ n#n#%eratin, inc#'es and n#n#%eratin, e%enses!.

"he net %r#$it rati# is 'easured by dividin, %r#$it a$ter ta by Net Sa&es

94


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C3NC< -------------------- #""

C+,4+6 E7,61>#r-in, ca%ita& is the di$$erence bet*een

current assets and current &iabi&ities.8 (I! 76t is a&s# -n#*n as ua&itative

c#nce%ts.8 (5! Net *#r-in, ca%ita& re$ers t# acc#untin, %#int #$ vie*.

B#th #$ c#nce%ts #$ *#r-in, ca%ita& have their #*n i'%#rtance. "he

,r#ss *#r-in, ca%ita& is the su' #$ a&& such assets as are reuired t# be

c#nverted int# cash durin, a sh#rt #%eratin, cyc&e #$ #ne year. >hi&e net

*#r-in, ca%ita& is the ecess #$ current assets #ver current &iabi&ities. (4!

Pr#$ess#r usband and +#c-eray e%&ained the use$u&ness #$

uantitative c#nce%ts #$ *#r-in, ca%ita& as 7+es%ite the uncertainty #$ uantitative

c#nce%ts #$ *#r-in, ca%ita& it %r#vides a '#re #b)ective basis #$ deter'inin, the

ty%e and a'#unt #$ $inancin,.8 (! 7"he ,r#ss *#r-in, ca%ita& c#nce%t

e'%hasi@es the use and the net c#nce%t the s#urce 7(E!8 "he inte,rati#n #$ b#th

these c#nce%ts is necessary in #rder t# understand *#r-in, ca%ita& 'ana,e'ent

$r#' the %#int #$ vie* #$ ris-0 return and uncertainty.8 (9! "hus ab#ve b#th #$

c#nce%ts #$ *#r-in, ca%ita& have their #*n uses and 'erits. "he ch#ice #$ the

%articu&ar c#nce%t *i&& de%end u%#n the %ur%#se in

F1


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A&& the state'ent 'ay be sub)ect t# c#''#n si@e vertica&

ana&ysis a $i,ure $r#' the sa'e years state'ent is c#'%ared *ith the

basic $i,ure se&ected $r#' the state'ent sh#u&d be c#nverted int#

%ercenta,e t# s#'e c#''#n base. "he c#''#n si@e vertica& inc#'e

state'ent and ba&ance sheets #$ se&ected c#'%anies #$ $erti&i@er

industry c#vered by this study are ,iven in the study.

28 C17719 /4; *1$4;19+6 +9+6>/4/

F19


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C3NC/4/

State'ent %re%ared in a $#r' re$&ectin, $inancia& data $#r t*# #r '#re

%eri#ds are -n#*n as c#'%arative state'ent. "he data 'ust $irst be %r#%er&y

set be$#re c#'%aris#n in the %re%arati#n #$ c#'%arative $inancia& state'ent

uni$#r'ity is essentia& #ther*ise c#'%aris#n *i&& be vitiated. C#'%arative

$inancia& state'ent is very use$u& t# the ana&yst because they c#ntain n#t #n&y

the data a%%earin, in a sin,&e state'ent but a&s# in$#r'ati#n necessary $#r

the study #$ $inancia& and #%eratin, trends #ver a %eri#d #$ a year. "hey

indicate the directi#n #$ the '#ve'ent in res%ect #$ $inancia& %#siti#n and

#%eratin, resu&ts. C#'%aris#n #$ abs#&ute $i,ure has n# si,ni$icance i$ the

sca&e #$ #%erati#n #$ #ne c#'%any is 'uch di$$erent $r#' that #$ #thers.

(4) C17,+$+48 5+6+9 /*

6ncrease and decrease in vari#us assets and &iabi&ities as *e&& as in

%r#%riet#rs euity #r ca%ita& br#u,ht ab#ut by the c#nduct #$ a business

can be #bserved by a c#'%aris#n #$ ba&ance sheets at the be,innin, and

end #$ the %eri#d. Such #bservati#n #$ten yie&d c#nsiderab&e in$#r'ati#n0

*hich is #$ va&ue in$#r'in, an #%ini#n re,ardin, the %r#,ress #$ the

enter%rise and in #rder t# $aci&itate c#'%aris#n a si'%&e device -n#*n as

the 7c#'%arative ba&ance sheet8 'ay be used.

(44) C17,+$+48 4917 /+79

FF1


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"he ba&ance sheet is in the nature #$ a sh#*in, the %#siti#n #$ a

$ir' at a %articu&ar '#'ent #$ ti'e. "he business %r#cess is very dyna'ic

*ith transacti#ns #ccurrin, re,u&ar&y0 each #$ *hich a$$ects in s#'e *ay0

the i''ediate&y %recedin, $inancia& %#siti#n. A ba&ance sheet there$#re0

'ere&y %r#vides the %icture #$ a $&eetin, c#nditi#n at a %#int #$ ti'e and i$

ba&ance sheets dra*n at di$$erent ti'e are c#'%ared any di$$erent %#und

bet*een the csin, and be,innin, $i,ures *#u&d be the resu&t #$ vari#us

transacti#n ta-in, %&ace durin, the interi' %eri#d. "he business %r#cess

inv#&ves a c#ntinu#us in$* and #ut$* #$ $unds. "his $unds $* ana&ysis

he&%s the ana&ysis t# a%%raise the i'%act #$ the 'ana,e'ents decisi#n #n

the business durin, a ,iven %eri#d #$ ti'e.

Q O*$ *94=/ 12 +9+6>/4/

Severa& #ther techniues &i-e cash $* ana&ysis and brea- even

ana&ysis are a&s# s#'e ti'e use$u& $#r ana&ysis. "he use #$ vari#us statistica&

techniues is a&s# used $reuent&y $#r $inancia& ana&ysis0 %r#vidin, a '#re

FFF


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CHAPTER ' 3


I9$1


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'ateria&0 ca%ita&0 &and and #r,ani@ati#n. "he rati# bet*een #ut%ut and #ne #$

these $act#rs #$ in%ut is ,enera&&y -n#*n as the %r#ductivity #$ the $act#rs

c#nsidered0 the rati# bet*een #ut%ut and a&& these $act#rs is -n#*n as t#ta&

%r#ductivity. 6t is c#nsidered as a 'easure %er$#r'ance #$ the ec#n#'y as a

*h#&e. 6n the br#adest c#nce%t0 %r#ductivity 'ay be ta-en t# c#nstitute the rati# #$

a&& avai&ab&e ,##ds and services t# the %#tentia& res#urces #$ the ,r#u% #$ the

c#untry. "he $inancia& e$$iciency can be achieved a$ter c#ntr#& #ver the c#st #$

%r#ducti#n. 6n recent years0 c#st #$ a&'#st a&& e&e'ents #$ %r#ducti#n &i-e c#st #$

ra* 'ateria& c#nsu'ed0 *a,es c#st0 ecise duty0 %#*er and $ue& c#st0 interest

burden0 ad'inistrative e%enses0 se&&in, and distributi#n e%enses etc. have

been increased heavi&y. 3n the #ther hand0 se&&in, %rice #$ ce'ent0 teti&es0

aut#'#bi&es0 *##&en0 en,ineerin,0 tea0 %a%er0 and che'ica& %r#ducts is

decreased. "he %r#b&e' #$ increasin, %r#ductivity i'%&ies the $u&& %r#%er and

e$$icient uti&i@ati#n #$ the avai&ab&e res#urces #$ 'en 'achines'#ney %#*er

&and ca%ita& etc. %r#ductivity cann#t have a 'as- attac- #n *asta,e #$ every

ty%e and in every s%here. 6t c#nstant&y ur,es t# $ind better0 chea%er0 uic-er0

easier and sa$er *ays #$ d#in, )#b0 'anu$acturin, a %r#duct and %r#vidin, a

service. 6t ai's at the 'ai'u' uti&i@ati#n #$ res#urces $#r yie&din, as 'any

,##ds and services as %#ssib&e0 #$ the -inds '#st *anted by c#nsu'ers0 at the

*est %#ssib&e c#st. 6n these circu'stances0 t# -ee% the %r#,ress #$ business

enter%rise is very essentia& $#r 'ana,e'ent in %resent envir#n'ent0 t# achieve

the %r#$it it tends t# intr#duce vari#us c#ntr#& techniues #ver e%enditure and ,et

'ai'u' #ut%ut.

A study #$ C#'%arative Ana&ysis #$ %er$#r'ance


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>hi&e interna& ana&ysis -n#*s every thin, re,ardin, the in$#r'ati#n

%r#vided in the $inancia& state'ents.

+i$$erent ana&ysts a&*ays 'a-e ana&ysis #r study #$ $inancia&

%er$#r'ance -n#*in,&y0 ,enera&&y0 eterna& ana&ysts ana&ysis the in$#r'ati#n

as %er their reuire'ents. ;inancier is interested in the $inancia& and &iuidity

%#siti#n. A shareh#&der is interested in the %r#$itabi&ity. ana,e'ent is

interested in the %r#ductivity and #%erati#na& e$$iciency. "hus vari#us

sta-eh#&der #$ business enter%rise &i-e 'ana,e'ent0 invest#rs0 ban-ers0

$inancia& instituti#ns0 credit#rs0 e'%yees0 ,#vern'ent0 ec#n#'ist0

%r#s%ective invest#rs etc.0 #- at #%erati#na& e$$iciency0 $inancia& e$$iciency

and %r#ductivity #$ the business c#ncern.

Re&evance #$ the Study6n %revi#us %#rti#n *e have seen #vervie* #$ $erti&i@er as *e&&

need re&evance and s#'e #$ the issue #$ $erti&i@er industry i.e. this

industry in n#t c#''ercia&&y %r#$itab&e0 etc. "he study #n c#'%arative

ana&ysis #$ %er$#r'ance e$$iciency #$ $erti&i@er industry in 6ndia is

i'%#rtant because #$ the $#&*in, thin,s.

6ndia is an a,ricu&tura& c#untry and a t #$ thin,s de%end #n

a,ricu&ture0 the $ar'ers are %r#ducin, di$$erent cr#%s by uti&i@in,

di$$erent $erti&i@er but at the sa'e ti'e they d# n#t -n#* ab#ut the

$erti&i@er as *e&& as s#i& #$ the &and0 b&ind&y $#&*in, #thers.

;r#' c#nductin, the study *e *i&& -n#* ab#ut the thin,s as sh#*n be*

18 ;inancia& %er$#r'ance #$ industry *ith the hi,h&i,hts #$ a&& 'a)#r

$erti&i@er c#'%anies. 6$ $ina& #ut %ut #$ this study that is $inancia&

stabi&ity #$ the industry is ,##d than *e can c#nc&ude that they

have ,##d 'ar-et and ,##d sa&es t##. "hey are earnin, ,##d

%r#$it by %r#vidin, ua&ity $erti&i@er t# a&& $ar'ers.

28 "he $ar'ers have 'any #%ti#ns t# %urchase $erti&i@er because in 6ndia

*e have F5 ,##d c#'%anies *h# are busy *ith $erti&i@er. By d#in,

FFI


160/437


c#'%arative ana&ysis #$ a&& c#'%anies thr#u,h $erti&i@er industry *e can

%r#duce ,##d in$#r'ati#n $#r the s#ciety that is ua&ity #$ the $erti&i@er. c!

Per$#r'ance e$$iciency is a&s# a %ara'eter #$ 'ar-et 'an%#*er and

'any '#re thin,s t# $ind and chec- this study is vita&.

Revie* #$ :iterature

ery 'uch &iterature #n ;erti&i@er 6ndustry in re&evance t# its n,

hist#ry and ec#n#'ic i'%#rtance is avai&ab&e. P&enty #$ ana&ytica&

&iterature is be$#re us #n %r#b&e's ass#ciated *ith Per$#r'ance

e$$iciency0 %r#ductivity0 #%erati#na& e$$iciency0 $inancia& e$$iciency0 si@e

and techn#,y0 ca%acity uti&i@ati#n0 $inancia& %er$#r'ance and %&ant

cati#n. Re&evant 'ateria& and &iterature have been discsed be*

P#ddar *rite t*# '#st i'%#rtant b##-s in F942 and F944 in *hich he

e&ab#rated a&& the $acts re,ardin, vari#us as%ect #$ the industry. 6nstituti#ns

such as C..A.0 Ass#ciati#n #$ "rade and industry0 C#''erce research

Bureau0


161/437


syste's. BP is bui&t #n a $#undati#n #$ B60 but 'arries it t# the %&annin,

and c#ntr#& cyc&e #$ the enter%rise *ith enter%rise %&annin,0 c#ns#&idati#n

and '#de&in, ca%abi&ities. As CS3 at y%eri#n0 +resner has bec#'e a

cha'%i#n $#r BP and has su,,ested that it is subsu'in, B6.

"he ter' MBPM is n#* bec#'in, c#n$used *ith MBusiness

Pr#cess ana,e'entM0 and 'any are c#nvertin, t# the ter'

MC#r%#rate Per$#r'ance ana,e'entM #r M/#st enter%rises have dee%&y entrenched strate,ic %&annin,

%r#cessesO but strate,y $ai&s durin, eecuti#n.


162/437


6n$#sys CP a%%r#ach $#cuses #n inc#r%#ratin, best %rinci%&es #$

c#r%#rate %er$#r'ance 'ana,e'ent than a 'ere i'%&e'entati#n #$ %#%u&ar

$ra'e*#r-s0 and is based #n #ur %r#%rietary Per$#r'ance ana,e'ent

cyc&ethat he&%s an #r,ani@ati#n t# eecute u%#n its strate,ies e$$ective&y and

e$$icient&y. "his c#nce%t $#cuses #n the e$$iciency #$ the c#'%any.

6n$#sys has used this c#nce%t very e$$ective&y *ithin the

c#'%any t# achieve si,ni$icant resu&ts. "he c#'%any has strea'&ined

b#tt#'u% in$#r'ati#n $* t# seni#r 'ana,e'ent ('#ved $r#' I11

'etrics t# 1 'etrics direct&y &in-ed t# strate,ic #b)ectives!. 6t has

achieved #ver 45 reducti#n in cyc&e ti'e $#r bud,etin,0 thus a&*in,

$#r $reuent revie*s. "his has 'eant that bud,ets re'ain re&evant

thr#u,h#ut the year. ;urther0 there has been a I1 reducti#n in

P&annin, cyc&e ti'e. Reen,ineerin, #$ the revie* %r#cesses has

$reed u% 21 #$ seni#r 'ana,e'ent ti'e *hich *as s%ent #n revie*

'eetin,s. 6n additi#n0 this has i'%r#ved the e$$ectiveness #$ these

revie*s. #st i'%#rtant&y0 6n$#sys achieved a dra'atic 1 i'%r#ve'ent

in $#recast e$$iciency. "he c#'%any has 'et $inancia& $#recasts $#r the &ast

IE uarters in a r#*0 since it *ent %ub&ic in 6ndia. Perha%s0 this bears

testi'#ny t# the e$$ectiveness #$ the 'u&ti,enerati#na& 6'%r#ve'ent

%r#,ra' that it e'bar-e

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