Anil Obser[1]. Report

8/7/2019 Anil Obser[1]. Report

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A

Observation Report

On

Gajanan Fertilizer Pvt. Ltd.

Submitted to

School of Commerce & Management ScienceSubmitted By

Mr. Rathod AnilMBA (Marketing)

Guided By

Mrs. Dr. M. S. Deshpande

Swami Ramanand Teerth MarathwadaUniversity, Nanded.


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Swami Ramanand TeerthMarathwada University, Nanded

Certificate

This is the certify that Observation Report on

Gajanan Fertilizer Pvt. Ltd.

Was successfully carried out

By

Mr. Rathod Anil

In the partial fulfillment of MBA course being conducted by School of

Commerce & Management Science during the academic year

2010 2011.

Dr. Mrs. M. S. Deshpande Dr. J. V. JoshiGuide HOD


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Acknowledgement

I wish to take opportunity to convey my profound gratitude to

several key personalities involved in the success of my project and I am

deeply indebted to all of them.

I would like to thank in particular Dr. Mrs. M. S. Deshpandewho

has given her valuable time and taken the efforts to help me to prepare this

project. I would like to thank for her numerous suggestions and discussions.

I am also thankful to my HOD Dr. J. V. Joshi for his constant

support and kind co-operation. I would like to thank to all the staff members

of MBA department for their suggestions and encouragement time to time.

Finally I thank to my parents and my colleagues who have directly

or indirectly helped me in the completion of this project work.

Mr. Rathod Anil Bansi


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Content


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Introduction

Fertilizer being the back bone of the agriculture. It is very

necessary to have an industry manufacturing the fertilizers in the interest of

agriculturists, to get the expected yield from crops. We need fertilizers.

As such our farmers recently faced the crisis of shortage of

fertilizers, researcher has chosen this field and wishes it is very proper step

to start some research to bring reforms in this sector in the interest of

agriculturists.

SSP a product widely called as Single Super Phosphate is the

cheapest of such variety in the market and has taken a very good pick up,

these days it contains secondary nutrients like Sulphur and Calcium which

are very important for crops like pulses and oilseeds. These components are

not available in any other phosphatic fertilizers.

Besides the main object of this industry of manufacturing fertilizers

there is one more object & that is to utilize the hazardous wastes of chemical

industries, in such a way that those wastes shall be utilized for the output &

shall be dissolved at the end. This industry can also achieve the objective of

Global warming.


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This report has been a great learning experience for me; at the

same time it gave me enough scope to implement my analytical ability.

This report gives an insight about the Fertilizer sector and its

various aspects. It is purely based on whatever I learned at Gajanan

Fertilizers Ltd. One can have a brief knowledge about fertilizer sector and all

its basics through the project.


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FertilizerSector& History

India fertilizer industry is one industry with immense scopes in the

future. India is primarily agriculture oriented country and its economy is

highly dependent on the agrarian produce.

The majority of the populace of India lives in rural areas and the

foremost occupation in the villages is agriculture. Developments pertaining

to different industries are being made on a massive scale to change the

country's economy from an agrarian one to an industrial one.

It is extremely important for the fertilizer industry India to have

development in terms of technologically advanced manufacturing process

and innovative new-age products. The first fertilizer manufacturing unit in

India was set up in the year 1906 at Ranipat in Chennai.

In the present scenario, there are more than 57 large and 64

medium and small fertilizer production units under the India fertilizer

industry. The main products manufactured by the fertilizer industry in India

are phosphate based fertilizers, nitrogenous fertilizers, and complex

fertilizers. The fertilizer industry in India with its rapid growth is all set to

make a long lasting global impression.

At present, there are 64 large size fertilizer units in the country,

manufacturing a wide range of nitrogenous and phosphatic/complexfertilizers. Of these, 39 units produce urea, 18 units produce DAP and

complex fertilizers, 7 units produce low analysis straight nitrogenous

fertilizers and 9 of the above units produce ammonium sulphate as a by-

product.


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Besides, there are about 79 small and medium scale units

producing single super phosphate. The total installed capacity of fertilizer

production in the country which was 104.98 lakh tonnes of nitrogen and

29.51 lakh tonnes of phosphate as on 1.4.98 have risen to 110.71 lakh

tonnes of nitrogen and 36.48 lakh tonnes of phosphate as on 29.2.2000.

The production of nitrogenous fertilizers during 1998-99 was

104.80 lakh tonnes of nitrogen and that of phosphatic fertilizers 31.41 lakh

tonnes of phosphate. The production target for 1999-2000 was fixed at

110.67 lakh tonnes of nitrogen and 33.45 lakh tonnes of phosphate,

representing a growth rate of 5.6% in nitrogen and 6.5% in phosphate, as

compared to the actual production in 1998-99.

As against this, the actual production upto February 2000 was at

101.16 lakh tonnes of nitrogen and 30.40 lakh tonnes of phosphate. Taking

N & P together, there was an overall growth of 5.3% over the production

during the corresponding period of last year.

The Indian fertilizer industry has come a long way since its early days

post independence. India today is one of the largest producer and consumer

of Fertilizers in the world. Indias production in terms of nutrients (N & P)

reached a level of 155 lakh MT in 2005-06 from 0.39 lakh MT in 1951-52.

Similarly, the consumption of fertilizers in terms of nutrients (NPK) has also

grown from about 0.66 lakh MT in 1951-1952 to nearly 184 lakh MT in

2004-2005.


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Indian Govt. PolicyForFertilizerSector

The Indian Fertilizer industry, given its strategic importance in

ensuring self sufficiency of food grain production in the country, has for

decades, been under Government control. The Government has over the

years, provided subsidies/concessions through the fertilizer companies to

farmers and the manufacturers have been compensated through various

schemes.

Though the Government control helped in meeting the objective of

ensuring creation of capacities and ultimately achieving self-sufficiency in

food grain production, it did not encourage improving efficiencies in the

sector. With the burgeoning subsidy bill and the need to focus on fiscal

prudence, Government policies in recent times are aimed at encouraging

efficiencies in the sector.

Policy measures like the new pricing scheme have made the

operations of less efficient players unviable. The Government polices today

are oriented towards achieving the stated objective of total deregulation in

the sector. However, the uncertainty over exact policy parameters and

absence of a comprehensive long term policy has not augured well for the

industry.

For instance, the financial year 2006-07 began with practically no

clarity on the policy parameters for both nitrogenous and phosphatic

fertilizers.


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The policy parameters for third stage of the new pricing scheme

for urea which was to be implemented from the beginning of the current

financial year (FY07) are yet to be announced and the implementation of the

Prof. Abhijith Sen Committee report on phosphatic fertilizers is also pending.

The uncertain policy environment has also not encouraged any major

investments in domestic capacity.

Another important issue confronting the sector is with respect to

the feed stock. Natural gas which is the main feedstock for production of

nitrogenous fertilizers is available in limited quantities and the industry

competes with the power sector for its share. With the Government policy

favoring conversion to gas based units, the demand for gas is only expected

to go up in the future, which may in turn lead to further shortages.

Similarly, in the case of phosphates, on account of the limited

availability of phosphoric acid and rock phosphate in the country, domestic

units are dependent to a large extent on imports. In view of the limited

availability of the main feedstock within the country, fertilizer companiestoday are exploring the possibility of setting up joint ventures abroad to tie

up their feedstock requirements.

Though a few joint venture agreements have been signed with

respect to supply of phosphoric acid, only a couple of joint ventures have

been established with respect to urea. Domestic players have also not been

able to enter into long term gas supply agreements primarily due todifferences over pricing.


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IntroductionofGajananFertilizerPvt. Ltd.

The need of press parts has increased demand according to

various products like Fertilizer sectors and industrial sectors. In todays

world engineering industries getting more demand because of revaluation of

industries.

In the 1990-1991s Gajanan Fertilizers Pvt.Ltd; was started in the

world of revolution of Fertilizer Company in Nanded.

Mold parts is one of such type of products at which the customers

had looked with suspicion, where as now it has become a basic need of the

every industry as well as popular In other industrial areas.

This in - plant has helped me a lot in studying the company

operations as well as their products, Gajanan Fertilizers has given various

approaches towards customer study & various market strategies adopted for

customer satisfaction. Quality has given prime importance in the

organization, which has provided to be one of the major factors of company

success.


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Gajanan Fertilizers has basically two types of machines which are

working 24 hrs. The production work is done in three shifts. This increases

ability of production.

History :

Mr. Chavan was started a Gajanan Fertilizers in Nanded at MIDC

in 1990-1991.The main resource for the company to start; this unit molding

was based on the markets necessity & demand which was in huge quantity

the present of companies like Gajraj Fertilizer Pvt.Ltd., the additional power

&name in the market has happened to be only the unit entire Nanded.

At initial stage the products was distributed in Nanded Industrial

area Gajanan Fertilizers decided to distribute the product as widely as

possible to create all over the Maharashtra.

Unit Profile :

The unit is carrying on the activity of manufacturing, buy or

sell, import, export of all kinds of fertilizers, insecticides, chemicals, acids

and their by product and all organic and in-organic chemical compounds or

of their kind whatsoever, including by product, derivatives and mixtures

thereof.


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Mission

To partner and participate in the socio-economic growth of

farmers, to promote research and development in the field and to achieve

our goals with honesty and commitment towards our customers, investors,

partners, employees and greater society.

Vision

To be an evolving organization providing farmers in India and

Asia at large with next generation seed and fertilizer products in the most

cost effective manner through sustained cutting edge research in fertilizers,

seed technology, plant nutrition and soil health.


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Products ofCompany

The buyer purchases a product only because it satisfies need&desires. Thus, a product is a bundle of potential utility because customer is

more interested in the benefits they get, from the product rather than the

product characteristics in physical senses.

Product knowledge is very necessary, in every aspect from

suppliers point of view or customers point of view. Through knowledge

indicates a satisfied transaction & a long term relationship.


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The size of product is small, but its importance is very because

without such product big product cannot be assembled. This product have

bundle of potential utility this product having characteristics in its physical

sense.

Due to automobile industries, other industries & home appliances

companies having the demand is increasing day by day.

LocationofPlant :

Plant

Location

B-18 M.I.D.C,Area,CIDCO,

NANDED - 431603

288 km FROM HUYBRABAD

263 km FROMAURANGABAD

Total SiteArea

37,165 m

TotalFloor

Area

11,260 m


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Board ofDirectors

Managing Director Mr.Sheshrao Chavan

Vice President Mr.Swapnil Chavan

Senior Vice President Mr. Uttam Chavan

General Manager Mr. A.S. Ambekar

Marketing Manager Mr. Divakar Kulkarni


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Competitors

The different competitors for the Gajanan Fertilizer Pvt. Ltd. are

as follows

Some of the public sector companies in Indian Fertilizer Industry

y National Fertilizers Limitedy Fertilizers & Chemicals Travancore Limitedy Rashtriya Chemicals &Fertilizers Limitedy Madras Fertilizers Limitedy Steel Authority Of India Limitedy Neyveli Lignite Corporation Limitedy Paradeep Phosphates Limitedy Pyrites, Phosphates & Chemicals Limitedy Hindustan Fertilizer Corporation Limited

Some of the private sector companies in Indian Fertilizer Industry

y ChambalFertilizers & Chemicals Limitedy AjayFarm-Chem Private Limitedy Balaji Fertilizers Private Limitedy DeepakFertilizerand Petrochemicals Corporation Limited


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y BharatFertilizerIndustries Limitedy CoromandalFertilizers Limitedy Gujarat Narmada ValleyFertilizerCo. Limitedy MeerutAgroChemicals Private Limitedy Duncans Industries Limitedy Karnataka AgroChemicalsy Godavari Fertilizers & Chemical Limitedy Shri Amba Fertilizers (I) Private Limitedy TuticorinAlkali Chemi & FertilizerLimitedy Gujarat State Fertilizers & Chemicals Limitedy Indo-GulfFertilizers & Chemicals Corporation Limited


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Production Department

Gajanan Fertilizers is situated at MIDC; Nanded Company produces

the fertilizers product. Company have advance machineries technology,

highly skilled professional and stringent quality control systems to

manufacture.

The manufacturing plants get their raw material in the form of

water. The manufacturing process starts with quality control test more over

there is decentralization of quality of every stage, wherever worker finds a

slight change in the quality or physical dimension they reject is stating it to

be defective one. This is one of the features of the Gajanan Fertilizers.

Production Process :

At the time of making Fertilizer there are

some steps. Firstly PAP (phosphors power) is one of the Raw Materials of the

Fertilizer, this power Mix with the MOP & URIYA. After making mixture from

this three raw material is add which is SSP (suppler power) & dolament.

Dolament is used only for chemical purpose. Form the all the raw material

after mixing product is made.


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Plant Layout :


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Packaging :

The packaging department looks after the Products

y Packaging is depend upon order given by the customer, somecustomer gives order in number of pieces, some customer gives

order in a bulk quantity.

Therefore packaging department do works according to the order given by

the customers.


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Marketing Department

Marketing Policies :

Marketing deals with identifying and meeting

needs of the customer. It is meeting needs profitably.

Marketing is typically as the task of creating, promoting and

delivery goods and services to consumers and business. In fact marketing

people are involved in marketing ten types of entities goods, services,

experience events, person places, and properties organization information

and ideas.

Marketing policies of Gajanan Fertilizers is the important and its

working greatly affects the overall performance of the company. It

emphasizes on the 4ps the product, price, promotion and place.

In this marketing department marketing personnel perform the

essential sales promotion activities, and decide how much to spend on

advertisements what special features can improve a new product. They

usually give stress improving the existing product and its maximum sales.

Marketing deals with sales process with product to product and

market to market. Advertising strategies differ with area and customers.


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DistributionChannel :


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Sales Promotion :

Sales promotion activities of Gajanan Fertilizersare very wide and active field of marketing department. It adds on the extra

value to the product so that it prompts consumer to buy to product.

It includes all those sales activities that supplement both personal

selling, advertising and helps to make them effective. It includes all such

promotional activities, which do not fall distinctly into advertising, personal

selling and publicity. Sales promotion is also known by the name of extrapurchase value {EPV}

In addition to increasing competition other reasons for the rapid

growth of sales promotion is an effective marketing technique are:

y Sales promotion makes an immediate effect on sales.y Measurement of the effectiveness of the sales promotion is easier

as against the other sales promotion methods.

y Channels of distribution are emerging as powerful entities anddemand greater use of incentives to get desired results.


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As the powerful marketing technique with a capability to

complement and supplement the advertising function, sales promotion helps

marketers to achieve a variety of objective ultimately depend upon the

extent of the desired response of the customer. Hence, various sales

methods are build around these three target groups.

Further in terms of impact desired the variety of sales promotion

Activities offered are grouped into two categories:

y Strategy aimed at producing an immediately impacty Strategy aimed at producing a delayed impact, i.e. carrying on

impact over a period of time

On the other hand in the delayed activities of the customer is

called upon to comply with the activity over a period of time before receiving

the full benefit of the activity. Price discounts, free samples etc. are the

popular examples of the delayed impact activities.

It is quite obvious from the above contest, that sales promotion

is an integral part of the overall marketing function and as such cannot be

neglected. Sales promotion activates. By their nature are such that it is very

difficult to implement them on natural basis. It is therefore required that the

sales promotion activities are region based and custom build to requirement

of that part or region.


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Marketing Information System Benefits :

It helps the marketing planning by making available reliableinformation on the external environment and internal realities of

company.

It helps effective taping the marketing opportunities andprovides.

Effective defense against emerging marketing threats. It helps early spotting of changing trends. It provides marketing intelligence to the company. It facilitates the developed programs for achieving goals. It helps the company to adjust its production and services the

needs and last of customers,

It helps the company to control it marketing activities. The quality of marketing decision is decided to a treat extent Quantity of marketing information available to the decision

maker.


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The advantage of system in handling marketing information is:

A system provides framework. A system helps to convert the raw data into processes

information.

A system assures smooth operation.


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HumanResource Department

ManpowerPlanning :

As the product of Gajanan Fertilizers is personal

and the organization is small, manpower planning is according to the orders

of various industries, special features of manpower planning takes in the

form of;

Hiring the employees for a short span of time. Average age of worker does not exceed forty years. All the HR problems are solved by the Proprietor or even by the

top manager if the case is severe. In this organization any

employee can contact Manager.

Proprietor of this unit, discuss their decisions, with; head ofdifferent department and then displays their plans into action

with involvement of all units.

All the department head have versatile qualities and easilysolves different problems of organization.

This leads to smooth running of function of the unit and reducescommunication problems which usually takes place in big firms.

Readjustment of workers at all level takes place in thisorganization.


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Recruitment & Selection :

Recruitment and selection procedure of

Gajanan Fertilizer is very simple, Proprietors decision to recruit new

employee or reallocate the existing staff. Recruitment plan of the

organization depends on the goals for that year.

Functional requirement is the criteria for recruitment and

selection procedure. This company generally follows word of mouth

procedure if they have any vacancy and selects the candidate within the

organizational background. While surplus talents are taken into

consideration apart from the designed vacancy.

Methods of recruitment also depend upon post in the

organization. All the options are tried to get best alternative, private and

word of mouth recruitment are taken into first consideration and their

references are cross verified. Management student or campus interview and

casual callers recruitment are very rare. It is usually held in the month of

June and seeks experience candidates.

Training & Development :

Training and development takes place departmental wise.

a. On the job and in house training takes place in this organization.

b. A part from their training video cassettes, manual knowledgeetc. are given to newcomers.


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c. After proper selection procedure the candidate goes though thetraining of period of two weeks at least.

d. After training procedure the candidate is again tested and thenappointed permanently and the candidates skills and talents are

taken into consideration.

e. Management Associates organizes certain programs for thetraining this group. Usually carried out department wise which

takes place after every three years.

f. Training regarding safety measures is given to every employee.


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Finance Department

The primary objective of Finance Manager is to deal with funds.

Management of funds is an important task of a Finance Manager. In a business

undertaking or in an education institution or in a hospital or in a part of society

or elsewhere management of funds is a primary concern of a Finance Manager.

The Finance function is almost the same in most of the organization.

The details may differ but the important features are universal in nature. The

finance function occupies such a major place in the organization that cannot the

sole responsibility of one executive. The important aspects of the finance

functions have to be carried by the top management.

It is the Board of Directors, which makes the final decisions, which

involves financial decisions. The financial Controller is basically meant for

assisting top management. He has important role of contributing to good

decisions on issue, which involves all the functional areas of the business. He

must clearly bring out financial implications of all decisions and make them

understood. A finance manager may be known as a financial Controller, Vice

President (Finance), Chief Accountant and Treasurer etc. and has a prime

responsibility keeping in view the overall outlook of the enterprises.


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Major FunctionofFinance ofthe GajananFertilizerDepartment :

y GRN (Goods Received )y Daily Banking Transactiony Payment of Expensesy Bank reconciliationy Debtor age analysisy Interplant Fundingy Preparation of Monthly Profit & Loss Accounty Finalization of Accountsy Look after towards taxation matters of the organization

Finance Policies :

Objective of the finance is to increase returns on capitalemployed giving maximum returns to themselves.

This unit follows maximization of profits tether then wealth. Asthe firm gives, stress to cost and returns of the company in the

financial years. Case sources of the firm is form the sales, banksfor short-term loans they are nationalize and bank of

Maharashtra, from financial institution and from share capital.

Working capital is managed with the motive of minimizinginventory, minimizing debtors and minimizing the cost of raw

materials and also by sufficient credit from the suppliers without

disturbing the marketing field.

In this organization much of their attention is given to marketingfield as this department wholly and solely depends on marketingmovements.

The accounting policies are general.


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The financial statements have been prepared under historicalcost convention in accordance with the general accepted

accordance with the general accepted accounting principles and

provisions of companies act, 1956.

The company follows mercantile system of accounting andrecognizes significant items of income and expenditure on

accrual basis.

The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed

assets.

The fixed assets are recorded at cost of acquisition lessacquisition less accumulated depreciation.

The depreciation of fixed assets is provided on written down value method.

INVENTORIES ARE VALUED ON THE BASIS GIVEN BELOW:

1. Raw Material at cost.2. Stores and consumables at cost3. Pecking material at cost.4. Semi finished goods-at direct cost, i.e. raw material and

conversion cost, except those purchased directly which are

valued at cost.


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Personnal Person /Accounts Department :

Personnel Department of Gajanan Fertilizers is flat organization a

combination of line organization and functional organization. Members in the

top management. In which some are active, meetings. Frequency of meeting

depends upon on the issues emerging in the organization.

However, once in a weak is compulsory. Top management function

is very vast it starts with new strategy formation to appoint of new

employee based on the past data and information of MDO.

They are involved in making new strategies and innovations, which are

flowed downward.

Like the quality of products, decentralization of decision of

innovation ort strategies does not take place in personnel department.

This group does not have and HR department because of the unit is a

proprietorship as such as the top proprietor takes care of any eventuality.


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Suggestions

For that the Aggressive marketing should be done for theproducts.

Training and development session should be taken foremployees ofthe firm.

An employee must be able toworkunderanycondition


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Conclusion

The GAJANAN FERTILIZER Pvt.Ltd.is a crucial link between the

factory and the manpower. Employed with GAJANAN FERTILIZERS Pvt.Ltd.

at different location.

Also as the consumer satisfaction is the prime goal of a

GAJANAN FERTILIZERS Pvt.Ltd. It cannot be achieved without giving such

kind of induction and orientation at each level.

Thus it was a learning experience from our side and will be very

thankful to all conserved personnel for their support and cooperation during

our induction period.

Anil Obser[1]. Report

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