A

PROJECT REPORT

ON

“DEALER’S SURVEY OF SUJALA (19:19:19) WATER SOLUBLE FERTILIZER IN INDAPUR TALUKA FOR

RASHTRIYA CHEMICAL AND FERTILIZER”

UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF 2 YEARS FULL-TIMECOURSE

MASTERS IN BUSINESS ADMINISTRATION (MBA)

UNDER THE GUIDANCE

OF

PROF. MRS.BEENA JOHN

SUBMITTED BY

AMIT R. KATE

BATCH 2010-12

JSPM’S

JAYAWANT INSTITUTE OF MANAGEMENT STUDIES

PUNE-33

1

Chapter

INTRODUCTION

Agriculture is one of the most important sectors of the Indian economy and plays a

significant role in the overall socio-economic development of India. Agriculture growth is

mainly dependent on advances in farming technologies and efficient use of chemical

fertilizers. The significant role played by chemical fertilizers is well recognized and

established beyond any doubt. The Government of India has been consistently pursuing

policies conducive to increased availability and consumption of fertilizers in the country. As

of now, the country has achieved near self-sufficiency in production capacity of urea and

DAP, with the result, India could manage its requirement of these fertilizers from indigenous

industry. India is the third-largest producer as well as the consumer of fertilizer in the world.

Further, the increase in land under irrigation is also expected to provide an impetus to

increased fertilizer consumption. Growth in fertilizer production and consumption therefore

presents the single largest contributor to agricultural progress.

The history of the Indian fertilizer industry dates back to 1906, when the first

fertilizer factory opened at Ranipet (Tamil Nadu). Since then, there have been major

developments in terms of both the quantity and the types of fertilizers produced, the

technologies used and the feed stocks employed. The fertilizer industry in India is in the core

sector and second to steel in terms of investment.

With a growing global population, the pressure on the limited

agricultural land is increasing and to meet this demand, the agro-chemicals have proved to

be a rescue. Agro-chemicals, which includes fertilizers and pesticides, give the boost to the

agricultural yield for agricultural land by providing nutrients and protecting the crops against

pests and non-essential herbs. The global agrochemical market has grown more than 15% in

the past two years to reach a current market size of $119 billion. With all the large

agricultural nations like U.S, Brazil, China, India, Canada, Argentina, and Australia acting

towards increasing their food yield for internal consumption as well as for export, the

governments in these countries are encouraging the extensive usage of these agrochemicals.

This has in turn boosted the market, prompting companies to spend extensively on the

research and development of new chemicals and improving upon the performance of the

2

existing ones. This has acted as a most important positive push for the market and with the

government support and initiatives, this market is sure to grow at a decent pace for the next

several years.

For the focus of Green Revolution, one of the main causes was use of N, P,

K, content fertilizers. There is continuous rise in N.P.K water soluble fertilizers

consumption. There are so many company’s entered in water soluble fertilizers production

such as DFPCL, Zuari, Coromandal, R.C.F. Deepak Fertilizers and IFFCO fertilizer ltd.

EXECUTIVE SUMMARY

Now a day farming system change very rapidly, farmer use new technology

and innovative idea to improve yield. Farmer not doing traditional farming to meat the

food demand of his family only. They see the farming in business view to increase

yield for increase profit. Indian population also change very rapidly, hence there is

need to meat food demand for increasing population. There for it necessary to

improve yield /ha. For increasing yield its need to use new technology and fertilizer

in agriculture

Water Soluble Fertilizer is help farmer to improve yield. Use of water soluble

fertilizer is benefited to farmer because it require less labour and in less quantity of

fertilizer by apply them through drip irrigation and foliar spray. this fertilizer have

long duration effect on crop due to they directly available root zone of crop. water

soluble fertilizer also have cost saving they require less quantity as compare to other

fertilizer.

The Study based on Dealer survey of sujala water soluble fertilizer. Sujala

(19:19:19) is a product of R.C.F company. R.C.F company start its first production

unit in 1906 with producing single super phosphate. It is Indian government company

which produce other fertilizer are Ujjwala ,Biola and microla.

In this study we gain information on competitor of Sujala. To find awareness

stage of Sujala water soluble fertilizer in market and to know the feedback about the

product quality, price and packaging. for Sujala water soluble fertilizer there is four

3

major competitor Sampurna (19:19:19),IFFCO (19:19:19),ADITY (19:19:19). For the

study area was selected Indapur taluka only and in that area 40 Dealer are selected as

respondent for collect primary data.

THEROTICAL BACKGROUND

Basic Concept

Water soluble fertilizer is a plant fertilizer that can be absorbed into water. This allows the concoction to be sprayed directly onto the plant, and not placed in the soil. Many people prefer to use this type of fertilizer for its ease of use, environmental friendliness, and its time saving capabilities.

Fertility is only part of the soil management process.  Colorado soils are naturally low in organic matter.  To maximize productivity, our soils also need routine applications of organic matter to improve soil tilth.  For flower and vegetable gardens, it is desirable to raise the soil organic content, over time, to four to five percent.

How it’s Used

Because of its versatility, this type of fertilizer has many practical applications. Since it is mixed with water and highly soluble, this fertilizer can be sprayed directly onto a plant’s leaves, reducing the need for traditional soil fertilizers by over 20%. It can also be applied to fruits or vegetables, benefiting both immensely. In particular, one of the best benefits of this fertilizer is that the user can measure out specifically how much fertilizer they need for a certain plant or crop; this cannot be done with regular soil fertilizers, though.

Although this solution can certainly be put into a simple spray bottle, it can be spread in other ways as well. Your water soluble fertilizer can diluted or in concentrated form, and can then be used through injectors, sprinklers, and more commonly it can be dropped on top of the plants by way of crop dusting aircraft.

Quality AssuranceMany people are incredibly careful about their fertilizers and the quality and consistency of them. This is especially important with concentrated water soluble fertilizers because a small amount of inconsistency can ruin an entire garden or greenhouse.To make sure this does not happen, laboratory personnel, including professional scientists in most cases, go through and analyze each batch, making sure that every single drop of the water soluble fertilizers have the same concentration of chemicals.

4

They understand how important it is that no part of the solution is stronger and more intense than others. In addition to this, they check and make sure that no harmful chemicals like chlorine based agents have managed to be included.Regardless of what brand or variety you choose, there are people making sure that you are getting what you paid for, ensuring that your plants and your family remain happy and healthy.

AvailabilityWater soluble fertilizers can be purchased in most good quality gardening supercenters and supply stores. Large quantities for crops can be purchased directly from manufacturers, and still other people prefer to do their shopping online for comparison reasons.Regardless of the method you choose, you should be aware that the fertilizers are separated by concentrated levels of chemicals. If your plants need more nitrogen and incredibly low chlorine, there are fertilizers specifically made for that. Be sure to check gardening guides and read the container labels before purchasing.

Concept of Market Survey :

Market survey gathers information about what people think. Market research analysts help companies understand what types of products people want, determine who will buy them and at what price. They know the who is competitor and awareness stage of product. Gathering statistical data on competitors and examining prices, sales, and methods of marketing and distribution, they analyze data on past sales to predict future sales.Market research analysts devise methods and procedures for obtaining the data they need by designing surveys to assess consumer preferences. While a majority of surveys are conducted through the Internet and telephone, other methods may include focus group discussions, mail responses, or setting up booths in public places, such as shopping malls, for example. Trained interviewers usually conduct the surveys under a market research analyst's direction.

Survey researchers also gather information about people and their opinions, but these workers focus exclusively on designing and conducting surveys. They work for a variety of clients—such as corporations, government agencies, political candidates—gathering information to help make fiscal or policy decisions, measure the effectiveness of those decisions, and improve customer satisfaction. Survey researchers may conduct opinion research to determine public attitudes on various issues; the research results may help political or business leaders measure public support for their electoral prospects or social policies. Like market research analysts, survey researchers may use a variety of mediums to conduct surveys, such as the Internet, telephone interviews, or questionnaires sent through the mail. They also may supervise interviewers who conduct surveys in person or over the telephone.

5

Survey researchers design surveys in many different formats, depending upon the scope of their research and the method of collection. Interview surveys, for example, are common because they can increase participation rates. Survey researchers may consult with economists, statisticians, market research analysts, or other data users in order to design surveys. They also may present survey results to clients.

Type of Survey :

Telephone interviews: This is an inexpensive, fast way to get information from potential customers. Prepare a script before making the calls to ensure you cover all your objectives. Most people don't like to spend a lot of time on the phone, so keep your questions simple, clearly worded and brief. If you don't have time to make the calls yourself, hire college students to do it for you.

Direct-mail interviews: If you want to survey a wider audience, direct mail can be just the ticket. Your survey can be as simple as a postcard or as elaborate as a cover letter, questionnaire and reply envelope. Keep questionnaires to a maximum of one page, and ask no more than 20 questions. Ideally, direct-mail surveys should be simple, structured with "yes/no" or "agree/disagree" check-off boxes so respondents can answer quickly and easily. If possible, only ask for one or two write-in answers at most.

Fax/e-mail interviews: Many of the principles used in direct-mail interviews also apply to these surveys. One exception: Never send an unsolicited fax that is more than one page. Give clear instructions on how to respond, and be appreciative in advance for the data you get back.

NEED FOR STUDY

From the above discussion it is clear that the specialty water soluble

fertilizers have less demand. So the need arise to know

How to generate more demand for sujala water soluble

frtilizer?

How to increase awareness about product?

What is the opinion of Dealers about sujala?

What are the factors affecting on purchase decision of sujala

fertilizers?

What quantity product demand of water soluble fertilizer in

next year.s

6

SCOPE OF THE STUDY

Scope of survey is restricted to Indapur Taluka because I did a survey of

dealers in Indapur only. Therefore the fact observed and interpreted will be

based on the information received by dealers.

The project undertaken has various objectives each objective touching

different aspect of the company so as to contribute effectively in deciding

specific strategies. The geographical scope was limited to the area of Indapur.

Project involves meeting with Dealers in this area & Analyzing the data in

such a way that, this would definitely help organization to design a marketing

strategy in such a way that the market share of company will increase.

Also studying the different factors which influence the purchasing of

Sujala. Thus this project has wide scope, which would help company to

awareness about Sujala water soluble fertilizer.Also company will get

primary data about dealers. One of the most important benefit to company is

that they will come to know about competitors policy about pricing and

marketing. Along doing my summer project I have worked as a marketing

agent for a company.

7

Chapter 2

Company Profile

RASHTRIYA CHEMICALS & FERTILIZERS LTD.

2.1. Company overview

Rashtriya chemicals and fertilizers limited is a government of India undertaking

manufacturing chemical fertilizers (Ujjwala urea and phosphatic fertilizers) and also

Sujala 19:19:19 foliar grade and drip grade and Microla (micronutrient) in addition to

Biola (PSB).

Earlier the Trombay plant was established in the year 1961 as Fertilizer Corporation

of India. First plant was set up at Sindri. In the year 1978 the FCI operation was

decentralized and the Trombay plant was renamed as Rashtriya Chemicals and

Fertilizers Ltd.

Apart from fertilizers RCF also produces industrial products which are used in

medicines plastic tannery industries. The company has a market share around 8% to

10% of fertilizer in India.

2.2 Industrial products

RCF pioneered the manufacture of basic chemicals such as Methanol, Sodium Nitrate,

Sodium Nitrite, Ammonium bicarbonate, Methylamines, Di methyl Formamide, Di

methyl acetamide in India. Today R.C.F is the only manufacture of DMF in India.

Product characteristics, consumer needs, economy to the consumers and safety are the

primary considerations in determining the type of packaging and modes of

transportation for each of the products.

2.3 Vision

With the objective of systematically stepping into the first decade of the millennium

with a character plan of action and growth ,the company has set itself a vision to

achieve a turnover target of Rs 3737 crores by the year 2006-07.To achieve this 8

requires further improvement in work culture, conscious cost cutting measure

frugality in our day to day activities ,further reduction in the cost of production,

improving company’s marketing effort ,catering to customer requirement and the

strictest adherence to safety and environmental standard.

2.4 Mission

RCF as a corporate body and Government of India undertaking is responsible to the people of India, the Government as owner, Government as Government, Consumers, Employees, the Society at large and Posterity. The company is simultaneously accountable to all these agencies that have a stake in its successful operation, growth and welfare.

2.5 Objectives

The main objectives of the company are as under To produce and market fertilizer and chemical efficiently and economically in

an environmental friendly manner. To maintain optimum level of efficiency and productivity in the use of

resources and to secure optimal return on investment. To take up and implement schemes for the energy saving. To promote self-reliance in the company’s operation including process know-

how Design, engineering erection, commissioning, operation maintenance of plants and marketing of products with special emphasis on Research and development.

To aim at international standard of excellence in production and quality of product and services.

To continuously upgrade the quality of human resource and promote organisational and management development.

To enhance safety standards. To care for protect the environment and to insure that the emission,

atmospheric, discharge and effluent are within the limits stipulated by the statutory authorities like central and state.

Pollution control authorities and to fulfil all the requirement specified under ISO 14000 standards.

To ensure the corporate growth by expansion as well as by diversification Ensure the availability of chemical fertilizers, bio fertilizers, micronutrients to

farmers and provide a wide range of services to the farmer for soil testing, fertilizer application etc. And to import train and education to farmers in the related field

9

To care for the community around especially ST/SC and other backward classes.

2.6 Achievements & awards of R.C.F:

'Excellent' Rating for Rashtriya Chemicals & Fertilizers Limited.

RCF has been graded as 'Excellent' under the Memorandum Of Understanding

(MOU) rating by the Government of India for its overall performance in the

year 1997-98. The company is the only one amongst all MOU companies to be

so graded.

National Safety Award -

This award was presented to RCF on 17th September 1998 at New Delhi in

recognition of the company achieving the lowest accident frequency rate of

0.093%.

Vishwakarma Awards -

RCF has received this award in New Delhi from the Government of India in

recognition of the longest Lost Time Accident Free period of 23.13 million

man-hours over the years 1991-92-93 by RCFs Trombay Unit.

Mini Ratna Status -

The Government of India has accorded the Mini Ratna Status to Rashtriya

Chemicals & Fertilizers Limited. This makes the company one of the major

profits making public sector companies. More powers for decision making

come with the Mini Ratna Status. As regards the performance in the last nine

months, total Urea production at 13.93 lakh MT is 14% higher than the

corresponding period of last year and fertilizers is 9% higher than that of the

previous year. Industrial products also show a growth of around 3 %.

10

Chapter 3

Product Profile

SUJALA 19:19:19 (FOLIAR & DRIP GRADE)

11

25 Kg Bag 1Kg Bag

12

The specification of Sujala 19:19:19 with respect to active ingredients

Rashtriya Chemicals & Fertilizers Ltd manufactures 100% water soluble fertilizers

containing all the three major plant nutrients i.e. Nitrogen, Phosphorus and Potash for

crops grown in green houses as well as other field crops. Sujala is available in two

forms Foliar grade and drip grade.

Foliar, suitable for spraying and Drip grade which is suitable for

application through drip irrigation system..

The major features of Sujala foliar and drip grades are as follows

Sujala reaches directly at the root zone along with required water

through drip.

As Sujala is salt free, the drip system does not get clogged thus

enhancing life of the micro irrigation system.

Sujala has a long shelf life and can be stored and used as and when

required.

Features:

Total Nitrogen 100% soluble in water

Amide Nitrogen   10.5%

Ammonical Nitrogen 4.5%

Nitrate Nitrogen 4.0%  

Total Phosphorus 100% soluble in water.

Total Potassium 100% soluble in water.                 

13

Sr.No. Nitrogen (%)

1 Amide Nitrogen 10.5%

2 Ammonium Nitrogen 4.5%

3 Nitrate Nitrogen 4.0%

Total Nitrogen 19.0%

Free from harmful Sodium and Chlorine.      

Nutrients are totally absorbed due to salt free features.

Table 2: Doses and Application of sujala 19:19:19:

Sr.NoSensitivity of

CropsConcentration Application for different Crops

1

Highly

sensitive

crops

2 gms/litre of

water

Grapes, capsicum, tomatoes, flowers &

vegetables grown in green houses. Leafy

vegetables, chilly,brinjal,okra, ornamental plants,

kitchen garden crops, flowering plants, annuals

etc.

2

Medium

sensitive

crops

3 gms/litre of

waterCucurbits, melons, cotton, beans etc.

3

Low

sensitive

crops

5 gms/litre of

water

Coffee, tea, fruit trees, sugarcane,  ornamental

palms, Bamboo, avenue trees, ground nut,

soybean, green gram, sunflowers ,safflower,

cereals etc.

Numbers of Sujala applications/doses are to be given as and when required in

different stages of the crops, depending upon variety, duration and irrigation

requirement of the crops.

STAGE: Tillering, flowering, Fruit setting/bearing, Fruit maturity, Pruning,

Picking etc. Doses recommended should be implemented with reference to the

environment, temperature, crop species and drip system used.

Major competitor of Sujala (19:19:19)

Aditya (19:19:19)

14

Properties and Uses

ADITYA range is pure and 100 % water soluble.

ADITYA is an excellent source of NPK fertilizers.

It is the special fertilizer range for drip irrigation as well as for foliar spray and

used for all crops. ADITYA corrects nutrient deficiency quickly.

ADITYA is free of chlorine and sodium. Safe for leaves and roots.

All ADITYA formulations contain micronutrients in chelated form for better

effects.

Sharp increase in yields of all crops is observed after using ADITYA

fertilizers.

Use ‘ADITYA’ rich in Phosphorous (13:40:13, 12:61:00) in first few weeks of

planting, ADITYA rich in nitrogen (26:00:00, 19:19:19) during vegetative

growth stage, ADITYA rich in Potassium (13:00:45, 00:52:34, 16:08:24 and

00:00:50) during flower and fruit setting.

For better effects, use ADITYA with SEQUEL

Sampurna (19:19:19)

Properties and Uses

15

It contains the maximum number of nutrients in comparison to all other NPK

grade fertilisers.

This is a highly concentrated, completely water-soluble fertilizer.

NPK ratio of fertilizer 1:1:1.

The fertiliser is enriched with traces of micronutrients to boost its

effectiveness.

Farmers have used this fertiliser with great success on cash and food crops to

provide balanced plant nutrition.

This granulated complex fertiliser is ideal for basal dressing.

Being granular in form the fertiliser can be applied uniformly.

Available in 50kg bags,

Enriched with nitrogen in Ammoniacal & Amide forms.

This fertiliser ensures that leaching loss under waterlogged conditions is

minimal while remaining completely soluble. 

IFFCO FERTILIZER

NPK (19:19:19)

Properties and Uses

Supplies all three nutrients NPK in balanced proportion Easy for application due to bigger and bolder granule size Attractive and quality packing Assured quality This granulated complex fertiliser is ideal for basal dressing.

Being granular in form the fertiliser can be applied uniformly.

Available in 25kg and 1kg bags,

Enriched with nitrogen in Ammoniacal & Amide forms.

16

DEEPAK FERTILIZER

Marketing of fertilizers

The company supplies the materials from manufacture point to rake point in

Maharashtra

company has 8 area offices-

Ahmadnager, Amravati , Nashik ,Aurangabad ,Kolhapur ,Pune ,Nagpur and Konkan.

Further after reaching the materials at the rake point the company transport the same

to the dealers and to the warehouse from the railway station through company’s

authorised contract.

After reaching the dealers the company distributes it to farmers. The allocation to the

district of the state is made by Government of India as per the production capacity.

The company also imports urea, DAPs and MOP as per the advice of the fertilizer

ministry and distribute it to the farmers to cater the need of farmers

Soil testing service

17

RCF provide soil testing facility under which the soil from the farmers’ field is

collected and test is carried out in Rs.15/- per sample of NPK and 150 Rs per sample

of micronutrient.

Soil testing helps diagnose soil health and evolve soil specific and crop specific

solutions. It helps to identify problematic soils, their nutritional status, texture and

structure. Based on the analysis, farmers are advised on soil fertility management

through rational use of manure, fertilizers and amendments to make agriculture more

productive and sustainable.

Recognizing this paramount need, RCF has established six static soil testing

laboratories since 1967 and three mobile testing vans.  Soil testing reports (or Soil

Health Cards) are mailed directly to farmers after analysis. This enables farmers to

make informed decisions about soil health management and maintenance depending

on the crop to be sown. RCF is working in Maharashtra at Mumbai, Nasik, Kolhapur,

Ahemadnagar, and Nagpur for soil testing.

Farmers training:

The adoption of Agricultural technology for increasing crop yield and land

productivity is greatly facilitated by training and adequate dissemination of

knowledge.

RCF sought to bridge the gap between Research Scientist and the farmer by setting up

dedicated training facilities at Nagpur and Thal.  The programs are designed to cover

both general aspects as well as region specific aspects of farming technology. In

addition, means of supplementing farm income through subsidiary occupation as well

as the upcoming

Technologies of food processing are also discussed. These institutes are equipped

with the latest audio-visual aids, classrooms and also hostels providing residential

accommodation to the farmers. Special programs for farm women have been designed

to enable them to contribute equally towards Agricultural productivity.  Special focus

is given to farmers from SC/ST categories.

18

Joint Venture with ITC:

RCF has recently signed an MOU with Indian Tobacco Company’s E-Choupal

scheme for promoting 100% water soluble fertilizer Sujala 19:19:19 through ITC

hubs and its marketing net work.

Extensive training programmes were organized in the month of December, 2006 for

the Sanchalaks of ITC who are also farmers and opinion leaders of the villages on use

of Sujala 19:19:19 foliar grade on Wheat and Green gram crops grown in Vidarbha,

Marathwada and western Maharashtra region. The training on use of Sujala was

followed by demonstrations of Sujala Foliar on the farmers’ fields.

RCF Shetipatrika:

.Rashtriya Chemicals and Fertilizers (RCF) publish a monthly farm magazine

“Trombay Sheti Patrika (TSP) from the year 1967-68. This is a magazine

disseminates the latest agricultural information to the farming community.  The

distribution of TSP is in 356 blocks of 33 Districts of Maharashtra. Now the TSP has

been completely revamped in both content and presentation. To keep pace with its

revamped image this complementary farm magazine is renamed as RCF Shetipatrika

Industry Profile

Agriculture is one of the most important sectors of the Indian economy and plays a

significant role in the overall socio-economic development of India. Agriculture

growth is mainly dependent on advances in farming technologies and efficient use of

chemical fertilizers. The significant role played by chemical fertilizers is well

recognized and established beyond any doubt. The Government of India has been

consistently pursuing policies conducive to increased availability and consumption of

19

fertilizers in the country. As of now, the country has achieved near self-sufficiency in

production capacity of urea and DAP, with the result, India could manage its

requirement of these fertilizers from indigenous industry. India is the third-largest

producer as well as the consumer of fertilizer in the world. Further, the increase in

land under irrigation is also expected to provide an impetus to increased fertilizer

consumption. Growth in fertilizer production and consumption therefore presents the

single largest contributor to agricultural progress.

The history of the Indian fertilizer industry dates back to 1906, when the first fertilizer

factory opened at Ranipet (Tamil Nadu). Since then, there have been major

developments in terms of both the quantity and the types of fertilizers produced, the

technologies used and the feed stocks employed. The fertilizer industry in India is in

the core sector and second to steel in terms of investment .Prior to 1960/61, India

produced only straight nitrogenous fertilizers [ammonium sulphate (AS), urea,

calcium ammonium nitrate (CAN), ammonium chloride and single super phosphate

(SSP)]. The production of NP complex fertilizers commenced in 1960/6. Currently,

India produces a large number of grades of NP / NPK complex fertilizer. These

include 16:20:20, 20:20:0, 28:28:0, 15:15:15, 17:17:17, 19:19:19, 10:26:26, 12:32:16,

14:28:14, 14:35:14 and 19:19:19. In addition, India produces various grades of simple

and granulated mixtures. Table 1 shows the chronology of fertilizer production in the

country.

The chronology of fertilizer production in India

Year of Manufacturing Fertilizer Products Number of Units

1906

1933

Single Super Phosphate

Ammonium Sulphate

Ammonium Sulphate

65

10

20

1959

1959

1959

1960

1961

1965

1967

1968

1968

1968

Nitrate

Urea

Ammonium Chloride

Ammonium Phosphate

CAN

Nitro phosphate

Di-Ammonium Phosphate

TSP

Urea Ammonium Phosphate

NPK Complex Fertilizers

No Longer Manufactured

29

1

3

3

3

11

No Longer Manufactured

2

6

Fertilizer sector is very crucial of Indian economy because it provides a very

important input to agriculture. Moreover the fertilizer industry specially the ammonia

urea plants are highly energy intensive in their operation there are vide variation in the

vintage of fertilizer plants in the country in terms of feedstock major feedstock

presently being used in the fertilizer plants are natural gas naphtha and fuel oil . Over

the years the majority of industry has improved its performance significantly in terms

specific energy consumption and capacity utilization. There are several state-of-the-

art fertilizer plants operating in India. There are around 27 fertilizer plants in the

country engaged in the manufacture of urea

Use of fertilizer started in India towards the end of the last century with fertilization

of tea and coffee plantations. Fertilisation of major cereal crops was slow to pick up.

Initially only a small quantity of indigenously produced super phosphate and some

imported ammonium sulphate were essentially used by the plantation industry. The

fertilizer use on food crops started picking up with the free distribution of ammonium

sulphate to farmers under the “Grow More Food Campaign”.

21

Although agriculture occupied an important place in the country’s first two five-year

plans, the importance given to the use of fertilizers was not very high. Except for the

production from the two factories at Always and Sindri, the country’s requirement

was made through imports. By & large, the bulk of the import of ammonium sulphate

& to a little extent urea & ammonium sulphate nitrate. The total consumption during

1960-61 was 0.212 million tonnes of phosphate & 0.029 million tonnes of potash

which worked out to 2.43 kg of nutrients per hectare of cropped area.

The Intensive Agricultural District Programme commenced in 1961 with sixteen

districts. The programme highlighted the importance of having a package approach to

agricultural development as a means of increasing agricultural productivity.

Production

The first fertilizer factory in India was established at Ranipet in Tamil Nadu by EDI-

Parry in 1906 to produce superphosphate from the acidulation of crushed bones. The

annual capacity of the factory was 6400 tonnes of superphosphate. This was followed

by Dharamsi Morarji Chemical Co. factory at Ambarnath (Maharashtra State) in 1924

& DCM factory at Delhi in 1946, both producing superphosphate. The first

production of nitrogen fertilizer, viz., and ammonium sulphate was in 1933 as a by-

product in the Tata Iron & Steel Company at Jamshedpur. This was followed in 1941

by the production of small quantities of ammonium sulphate at Belagula, Mysore

through a synthetic process using electrolysis of water for producing hydrogen.

Medium scale production of ammonium sulphate was started by the fertilizers &

chemicals, Travancore, Ltd.(FACT), Alwaye in 1947 using wood charcoal as a raw

material for the production of ammonia. The feedstock was changed to naphtha in

1962.

The relatively low importance attached to fertilizer use in pre-independence India was

responsible for the very slow progress made by the industry during this period.

The acute shortage of food immediately after the Second World War necessitated are

looks at the problem of increasing production of food grains in the country and

consequently the need for fertilizers. As a result of Government of India decided to

22

set up fertilizer plant at Sindri. The unit was commissioned in 1951. It was originally

designed to produce ammonium sulphate.

During the next decade, a few more factories were also set up in the private sector to

produce superphosphate. A factory at Varanasi to produce ammonium chloride was

established by New Central Jute Mills. But the overall increase in fertilizer production

capacity during the fifties was low. The Sindri unit started producing ASN and urea in

1959. Between 1960 and 1965, the Nangal and Trombay units and the Rourkela unit

of Hindustan Steel Limited were commissioned. The Sindri and Nangal units were

then under Hindustan

Chemicals & Fertilisers Ltd. in the public sector. With the formation of Fertilizer

Corporation of India Ltd. in January, 1961, both these and subsequent units were

brought under its control. The products were calcium ammonium nitrate at Nangal

and Rourkela and nitro phosphate and urea at Trombay. During the same period the

FACT unit was diversified to produce ammonium phosphate sulphate. By 1965, the

total installed capacity for fertilizer in the country was 0.492 million tonnes of

nitrogen and 0.265 million tonnes of P2O5.

The vital role that could be played by fertilizers in helping the country to achieve the

food production target was fully realized in the early part of 1960s. Consequently, a

number of projects were sanctioned during the period. Of these, 8 units mentioned in

Table 1 went into production between 1966-70. Their product pattern is also given

therein. The prominence given to urea is evident.The total capacity built up during

this five-year period was approximately 0.8 million tonnes of nitrogen and 0.17

million tonnes of P2O5 .

Imports:

India imports mainly urea, DAP and potassium chloride (MOP). The country has

almost reached self-sufficiency in urea production. As regards DAP, the level of

imports was between 1.5 and 2 million tonnes in the 1980s and 1990s. A great deal of

DAP capacity came on stream in the early2000s. Consequently, the importation of

DAP fell to less than 1 million tonnes after 2000/01. In 2003/04, DAP imports were

0.73 million tonnes. Imports meet the entire MOP requirement as there are no known

23

natural potash deposits in the country. In 2003/04, MOP imports were 2.58 million

tonnes In addition, India also imports a small quantity of mono ammonium phosphate

(MAP) and potassium sulphate (SOP) (65 000 and 10 500 tonnes, respectively, in

2003/04).

Consumption:

Fertilizer consumption was less than 1 million tonnes before the mid- 1960s. With the

introduction of high-yielding variety (HYV) seeds, there was acceleration in the

growth of fertilizer consumption. It reached 12.73 million tonnes in 1991/92 as

against 0.78 million tonnes in 1965/66. After the decontrol of P and K fertilizers the

growth in consumption slowed. The highest consumption was recorded in 1999/2000

(18.07 million tones of nutrients). Since then, the growth in consumption has been

erratic. In 2003/04, total nutrient consumption was 16.8 million tonnes. The

consumption of N, P2O5 and K2O was 11.08, 4.12 and 1.60 million tonnes,

respectively.

NPK Consumption ratio:

Because the deficiency of N is widespread, the N: P2O5:K2O use ratio has favoured

N. This ratio narrowed from 8.9:2.2:1 in 1961/62 to 5.9: 2.4:1 in 1991/92. After

decontrol of P and K fertilizers in 1992/93, the ratio widened to 9.7:2.9:1 in 1993/94.

Despite the introduction of a price concession on P and K fertilizers and other

measures taken to increase their consumption, the ratio remained wide and in 1996/97

it was 10:2.9:1 Subsequently it has tended to improve, reaching 6.9:2.6:1 in 2003/04.

Prices of fertilizers:

As fertilizer is an essential input for agricultural production, the Government’s

objective is to make this critical input available to the farmers at affordable prices.

Until 24th August 1992, the prices of all the fertilizers were controlled, the

Government setting the maximum retail prices of various fertilizers. With effect from

25 August 1992, the prices of phosphate and potash fertilizers were decontrolled. The

24

prices of urea continued to remain under control. Following decontrol, the prices of

phosphatic and potassic fertilizers rose sharply. Since 1997/98 the Government has

fixed indicative maximum retail prices of decontrolled fertilizers, uniform throughout

the country.

Fertilizers Subsidy:

Historically, the prices of fertilizers have been kept below the cost of production and

importation. The prices of fertilizers in India, particularly of urea, are lower than in

developed and neighbouring developing countries. The objective behind the low

prices is to maintain a favourable input: output ratio. The aim of the Government has

been to ensure that the farmer receives a price that makes fertilizer use acceptable and

remunerative. The Government provides a fertilizer subsidy to fill the gap between

the cost of production / import cost plus distribution of fertilizers, and their retail

prices. The objective of the introduction of the fertilizer subsidy was: (i) to provide

food grains to the people at affordable prices; (ii) to insulate farmers from variations

in production costs and to ensure reasonable returns from fertilizer use; and (iii) to

ensure a reasonable return to the fertilizer industry. The subsidy on fertilizers is given

to the farmers by routing it through fertilizer manufacturers. The Government of India

introduced the Retention Pricing Scheme (RPS) on urea in 1977 and on complex

fertilizers in 1979. Under the RPS, a normative cost of production was worked out for

each company. The difference between the normative cost of production plus the

distribution cost and the retail price represents the subsidy to the farmers. Effective

from August 1992, P and K fertilizers were decontrolled. This led to high prices of

these fertilizers. The Government introduced a concession scheme to mitigate the

increased cost of production. However, urea continued to be under the RPS until 31

March 2003. Effective from 1 April 2003, the RPS on urea was replaced by the Group

Pricing Scheme (GPS). The normative cost of production is now worked out on the

GPS basis.

Futures prospectus:

India’s food grain requirement to feed the estimated population of 1 400 million by

2025 will be 300 million tonnes (based on rice, i.e. unhusked paddy rice). There will

be a corresponding increase in requirement of other crops such as cotton, sugarcane,

25

fruits and vegetables. The country will require about 45 million tones of nutrients (30

million tonnes for food grains and 15 million tonnes of nutrients for other crops) from

various sources of plant nutrients, i.e. fertilizers, organic manures and bio fertilizers.

The further increase in crop production will have to come from an increase in yields

as there is limited scope for increasing cultivated area. The yields of the majority of

the crops are relatively low and there is great potential for increasing them through the

increased use of inputs such as fertilizers. Fertilizer use will remain key to the future

development of agriculture. The handling of increasing quantities of fertilizers will

put pressure on storage and handling facilities and transport. Products and practices

that improve fertilizer-use efficiency will need special encouragement. Fertilizer

promotion will have to include activities that promote not only increased rates of use

but also better balances between the nutrients and higher efficiency. Attention also

needs to focus on the availability of credit, an essential factor in ensuring the

availability of fertilizers to farmers. India will continue to be a major importer of raw

materials, intermediates as well as finished products. The fertilizer product pattern is

unlikely to change in the near future, and urea and DAP will continue to dominate

fertilizer production. Attention will need to focus on ensuring the availability of good-

quality micronutrient fertilizers

Chapter 5Scope and Objective of the project

26

To understand competitors of Sujala (19:19:19) for fertilizer.

To study and analyse the factor that affect sale of sujala.

To obtain feedback on pricing and packaging of Sujala product.

To find awareness about Sujala in market.

Scope:

The project was to study factor affecting sale, product awareness and understand the

competitor of sujala fertilizer in Indapur taluka. It involved surveying the Dealer to

get deep insight into their mindset about use of RCF’s fertilizer. While the other

domestic companies are trying to survive in the highly globalised market, Rashtriya

Chemicals And Fertilizers Ltd. is one of the companies that have made its mark by

regularly offering its quality products to the farming community.

There are so many rivals in the field of fertilizer. Many Farmers are still not using

water soluble fertilizers. Farmers are arguing that prices of these products are very

high. Many times there is not awareness about productThe project was taken up to

find answers to these issues. The study covered the issues which hopefully will be

useful for the company in deciding the future strategies.

The project was carried out in Indapur taluka where many Farmers have own

irrigation system in their fields and many Farmers grow sugarcane banana

pomegranate and vegitable. Water soluble fertilizer will be very useful in these region

as it is apply easily & gives good results immediately. Agriculture ministr has

declared that N, P, K, is an important major nutrient for crops. But many Farmers are

still not aware about it. So the main challenge is to create awareness in the farmers.

The study was conducted only in these regions with respect to the Sujala. The project

will also help RCF to know about the customer satisfaction level otherwise the ways

to improve the product.

27

RESEARCH METHODOLOGY

3.1) KEY CONCEPTS AND DEFINITION

Research in common parlance refers to search for knowledge. One can

also define research as a scientific and systematic search for pertinent

information on a specific topic. In fact research is an art of scientific

investigation. The Advanced Learner’s Dictionary of current English lays

down the meaning of the research as:

“A careful investigation or inquiry specially through search for new

fact in any branch of knowledge.”

Redman and more define research as:“A systematized effort to gain new

knowledge”.

RESEARCH DESIGN:

Research design is plan, structure and strategy of conceived so as to

obtain answer to research question and control variance.

Type of research is - Descriptive type

Descriptive research includes surveys and fact-findings enquiries of different

kinds. The major purpose of descriptive research is description of the state of affairs,

as it exists at present. This method is undertaken when the researcher is interested in

knowledge about the characteristics of certain groups such as people.

A research design expresses both the structure of the research problem and the

plan of investigation used to obtain empirical evidence on relations of problem. This

28

is one-short research study at given point of time and consist of sample (cross-

section)of the population interest. It’s advantage are that it gives a good overall

picture of position at a given time.

SOURCE AND METHODS DATA COLLECTION

There are two types of sources i.e.

A. Primary Sources of data collection

B. Secondary sources of data collection

Primary Sources :

The primary data for this study is collected by observation method, by

taking interviews, through structured questionnaire. Primary data is is collected

from face to face and phone call interview with 40 Dealers.

- Collection From dealers.

- Informal discussion with dealers.

Secondary sources:

The secondary data is collected from different books,

magazines, office files and internet. As per as secondary sources are

considered I have taken secondary data from fallow sources

- Area office of RCF(Pune).

- Website – www.rcflc.com.

- Records of agriculture department Pune.

- Internet

-Shetipatrika magazine

29

SAMPLE DESIGN

Sample units:

Elements or objects available for selection during process are known as sampling unit. It gives the targets population that will be sampled. This research related to the Dealer segment. For this research various dealers of RCF were the target respondents.

Sampling Size:

This project maintained sample size of 40 respondents which were the dealers of RCF fertilizer in Indapur taluka.

Sample Area:

The primary data was collected through survey that was systematically carried only in Indapur taluka. The responses of the respondents were recorded in the questionnaire prepared for them & were mostly filled by respondents itself.

Sampling Technique:

The sampling technique used in this project was non-probability sampling and the type of method used was census sampling.

1) Research Instrument:-

Questionnaire method and observation method were using as research instrument for collecting primary data.

2) Statistical tools used:-

It includes weighted average method, percentage method, and graphical representation: - bar diagram, pie diagram, and sampling theory.

Data Analysis and Interpretation of Sujala(Water Soluble fertilizer)

Dealer associated with R.C.F

Year < 5 5 - 10 10 - 15 15 < Total

No. 14 10 9 7 40

30

Respondent

%. Respondent

35 25 22.5 17.5 100

< 5 5.-10 10. -15 15 <0

5

10

15

20

25

30

35

40

45

Dealer associated with R.C.F

Interpretation :

From above graph it clear that no. Of dealer is increased as compare to 15 year ago.

In last five year near about 43% new dealership distributed.

No. of village covered in your area.

Village 1 - 5 5 - 10 10 and above

Respondent 4 6 30

%. Of Respondent 10 15 75

31

21%

29%

50%

Village Cover

1. - 5 5. - 10 10 and above

Most of dealer located at Indapur taluka, hence 50% dealer cover more than

ten village.

Some of them located village level hence they (21%)cover up to only five

percentage.

How do you motivate the farmers to purchase your product.rank them

Options

By creating public awareness

Consulting farmers

Easy availability

By giving free samples and

discounting

32

14%

22%

42%

22%

Motivate to farmar

By creating public awareness Consulting farmers Easy availability By giving free samples and discounting

Interpretation :

42% dealer motivated to farmer by easy available and some of them by public awareness.

Because of quality conscious only 22% farmer motivate by price discounting.

Major factor performed by consumer while purchasing the WSF.likert

Parameter Price Brand Quality Other

No. Respondent 1 3 9 1

% of Respondent 7 22 64 7

33

Price Brand Quality Other0

10

20

30

40

50

60

70

Respondent (%)

7

22

64

7

Interpretation :

Quality is important factor preformed by farmer, 64% farmer purchase Quality

product.

22% farmer brand conscious and only 7% is price conscious.

Which is your opinion about Sujala water soluble fertilizer according to

following parameters.

Highly

Satisfie

d

Satisfie

d

Moderatel

y

Satisfied

Dissatisfie

d

Very Dissatisfied

mean

Quality 15 20 2 3 0

Availability 19 14 4 3 0

Price 0 6 5 23 6

Services 7 12 5 11 5

Promotional

Schemes

4 6 11 11 8

34

Quality

Availa

bility

Price

Servi

ces

Promotional

Schem

es0

2

4

6

88

6

0

32

5 5

3

65

0

32

1 1

Highly SatisfiedSatisfiedModerately Satisfied

Axis Title

Axis Title

Ranks of WSF companies according to sales turnover

Company name

Brand name No. Respondent % of Respondent

IFFCO NPK (19:19:19) 6 43

R.C.F Sujala (19:19:19) 4 29

ZUARI Sampurna(19:19:19) 2 14

VANITA Aditya (19:19:19) 2 14

35

Sampurna (19:19:19) Sujala (19:19:19) Jai kisan (19:19:19) Aditya (19:19:19)0

5

10

15

20

25

30

35

40

45

50

Product rank

43

29

14 14

Intarpritation :

According to dealer 43% farmer purchase Sampurna fertilizer because of price

and quality.

Sujala is second rank by dealer,29% farmer preafare Sujala watwer soluble

fertilizer.

Jai kisan and aditya are 14% preafare by farmer.

Sale of WSF in next coming year

Sale (tone) Up to 1 1-2 2-5 5 and above Total

No. Respondent 9 18 9 4 40

%. Respondent 22.5 45 22.5 10 100

36

Up to 1 2-Jan 5-Feb 5 and above0

5

10

15

20

25

30

35

40

45

Next year sale (t)

Dealer Interest to sale WSF of RCF Company next coming year

Interested No .Respondent %.Respondent

Yes 31 77.5

No 9 22.5

Total 40 100

Yes No0

102030405060708090

Interested to sale

22%

78%

37

Why interested to sale R.C.F fertilizer

Parameter Price margin Brand name Scheme Demand Total

No. Respondent 6 17 7 10 40

%. Respondent 15 42.5 17.5 25 100

Interpretation :

Most of Dealer (78%) are interested to sale Sujala WSF in feature and 22%

Dealer are not interested to sale Sujala fertilizer.

Need to modify packaging of Sujala WSF.

Particular No. Respondent % Respondent

Yes 14 35

No 26 65

Yes No0

10

20

30

40

50

60

70

Modify Packaging

Interpretation:

38

36% Dealer think that here is need to modify packaging and 64% Dealer dose not think to modify packaging.

Particular Size Weight Attractive Packaging material

No. Respondent 1 8 4 1

% Respondent 0 60 20 20

60%20%

20%

Packaging Parameter

Size Weight Attractive Packaging material

Interpretation :

In market WSF available in two pack only, hence 60% dealer think change packaging according to weight.

There is no need of change packaging by size. 20% Dealer think change packaging by packaging material and attractiveness.

Suggestion to RCF Company.rank

Particular No. Respondent % Respondent

Scheme 2 14.28

39

Advertising 7 50

Improve Quality - -

Price Discount 5 35.71

Scheme Advertising Price Discount0

10

20

30

40

50

60

Suggestion

Interpretation :

50% Dealer suggest that company should focus on advertising and 14%

Dealer think that company give some scheme.

Price discount Suggestion is given by 53% Dealer.

Chapter 8

Findings & Observations

It is found that most of the dealers prefer to keep various product of RCF followed by IFFCO, Vanita, and Zuari, because of price margin.

40

According to Dealer Price of Sujala is high as compare to the competitor According to Dealers Sujala is very good product and shown very good

results on Grape, Sugarcane, Banana and vegetables.

In Indapur there less use of Drip Irrigation, therefore less Demand for WSF.

Dealer is main connecting link between manufacturer and consumer. They are

playing vital role in the sale of product. But some of them are not showing

their involvement for sale of product.

It is need to make awareness of Sujala WSF use among dealers and farming

community as the end customer.

The faulty practices of some of the dealers leads to creating negative image of

the Sujala fertilizers in the mind of farmers.

The Farmers are quality conscious while purchasing the fertilizers. If the

results obtained by using the fertilizer are good, the Farmers prefer those

fertilizers.

Chapter 9

Limitations

During the Dealer survey of Sujala, I faced some problems. The problem faced were

the limitation the project. They are as follows.

1. The survey and research has been based on whatever information has been

provided by the Dealer. They may not be true in answering the questions in regards to

price and margin.

2. According to the requirement of the project I had to fill in the questionnaire by the

Farmers. But the farmers are not always available for correspondence because some

farmers were busy in their work & did not show interest to provide information.41

3. All out efforts were made to contact maximum number of farmers to increase the

accuracy. However, due to time and economical constraint more than 150 Farmers

could not be interviewed.

4. The respondents were reluctant to answer some questions, as they took them as

personal and consequently increasing the possibility of error.

5. Some farmers were hesitating to give information due to ignorance.

The survey has been done in only the Indapur dealer’s outlets are considered.

Chapter 11

Suggestions & Recommendations

The company should provide maximum scheme to their dealer, and maintain

good relation with their dealer.

The company should take regular feedback from the dealer’s about the

customer need and preference for updating.

In Indapur taluka there are 4 sugar-factories, they focus on increase sugarcane

tonnage/ acer by give subsidy to drip irrigation. We can take benefit of them

by directly selling Sujala to factories for selling them to sugarcane cultivators.

42

Need of advertisement on TV (at the appropriate time i.e. in between the

Marathi news) and through local newspaper like Sakal, Lokmat, and Agro-

One etc. to enhance the awareness among the farmers.

Farmers are greatly influenced by friends & relatives about the product so

direct contact with the farmers will help to create awareness about the product.

Farmers are result oriented, if we show the effect of the product they quickly

get attracted towards the product. Demonstrations should be conducted in the

fields of innovative farmers who are adjacent to main road for better exposure.

RCF should provide field assistance by frequently visiting the farmers,

improve the relationship with them and provide the technical guidance.

Most of the farmer’s purchases fertilizer from retailers so there should be good

contact with dealers as they are main intermediary between farmers &

company.

Company may provide the product Brochure to Dealer and Retailers so they

can recommend dose properly according to soil fertility.

Chapter 11

Conclusion

Agriculture is one of the most important sectors of the Indian economy and

plays a significant role in the overall socio-economic development of India.

Agriculture growth is mainly dependent on advances in farming technologies

and efficient use of chemical fertilizers. The significant role played by

chemical fertilizers is well recognized and established beyond any doubt.

43

The Government of India has been consistently pursuing policies conducive to

increased availability and consumption of fertilizers in the country. As of now,

the country has achieved near self-sufficiency in production capacity of urea

and DAP, with the result, India could manage its requirement of these

fertilizers from indigenous industry. India is the third-largest producer as well

as the consumer of fertilizer in the world. Further, the increase in land under

irrigation is also expected to provide an impetus to increased fertilizer

consumption.

Growth in fertilizer production and consumption therefore presents the single

largest contributor to agricultural progress. Fertilizer sector is very crucial of

Indian economy because it provides a very important input to agriculture.

There are several state-of-the-art fertilizer plants operating in India. The

quality of RCF’S Products & it’s unavailability during crucial period creates

well platform in the market for selling at any highest cost. There is vast

demand for RCF product but due to lack of availability farmers switch over to

another companies product.

Chapter 12

Bibliography

Reference:

BOOKS

Kotler, Philip, Marketing Management ,New Delhi,

Prentice hall of India Pvt. Ltd ,2000

WEBSITS

www.rcfltd.com

http://en.wikipedia.org/wiki/Fertilizer

www.maharashtra.nic.

44

Chapter-13

ANNEXTURE

DEALER’S QUESTIONNAIRE

SUJALA (19:19:19)

1 Name of Firm

2 Name of Proprietor

3 Address

4 Mob. No/Landline no.

5 Education

6. From how long you are in this Business?

7. No. of village you covered in your area?

Sr.no Grades Companies Package MRP

1

2

3

4

10. Give ranks to WSF companies according to sales turnover?

1 3

2 4

11. How much WSF you will able to sale next coming year?

45

12. Performance of the following WSF Company dealing in above Rank the following parameter according to scale?

1. Highly satisfied

2. Satisfied

3. Moderately satisfied

4. Unsatisfied

5. Highly unsatisfied

13. According to you which are the major factor performed by consumer While purchasing the WSF?

Parameter High Medium Low

Price

Quality

Yield

Past experience

Service

Brand name

14. How do you motivate the farmers to purchase your products?

a) By creating public awareness b) Consulting farmers c) Easy availability d) By giving free samples and discounting

15. Which company WSF are popular in your area and why?

Sr. no Name of Company Reason

46

1

2

3

16. Are you Interested to sale WSF Of RCF Company next coming year?

1. Yes 2. No

17. Is there any need to modify the packaging of Sujala WSF ?

1. Yes 2. No

If yes

18. What kind of problem do you faced while dealing with RCF water Soluble fertilizer?

19. Your suggestions to RCF Company?

47

48