A
PROJECT REPORT
ON
STUDY OF SALES AND DISTRIBUTION
CHANNEL OF FERTILIZER PRODUCT
PRODUCT AT
GSFC

PREPARED BY:

MIHIR DALVADI
GAJJAR PARESH
RUSUIT PARAJAPATI
KRUNAL PATEL

GUIDED BY:

Dr. NISHIT BHATT

SUBMITTED TO:
 

 PREFACE 
 PREFACE 

"True learning is born out of experience & observation". Practical experience is one of 

the best
best types
types of le
lear
arnin
ning
g that
that one ca
can
n re
reme
memb
mber
er th
thee as
aspec
pects
ts of admi
adminis
nistr
trat
ation
ion &
management. The day comes to apply these in corporate world in context of modern
industrial enterprise that has to go through its different terminal to achieve the corporate
goal"

The main
main objectiv
objectivee of practic
practical
al tra
trainin
ining
g is to develop
develop practic
practical
al knowledg
knowledgee and
awareness about industrial environment & business practices in the student as a supplement
to theoretical studies of marketing
marketing management.
management. It increases the skill,
skill, ability, & attitude to

 performance
 performance specific
specific jog
jog in industrial
industrial environme
environment.
nt.

Fortunately, we got an opportunity to study the sales and distribution of GSFC

(Gujarat state Fertilizer & Chemical Limited)
 

 ACKNOWLEDGEMENT 
 ACKNOWLEDGEMENT 

  At this moment of my substantial enhancement, we have hardly enough

words to express our gratitude toward who were constantly involved with us during
this project. With a sense of gratitude and respect, we have great opportunity to
 present our thanks to them who have directly
directly or indirectly
indirectly helped us in the
 preparation
 preparation of this
this project.
project.

We are very much thankful to Dr Nishit Bhatt (Head of the department S. K.

School of business Management, Patan) who helped us in every possible manner.
They ensured a proper environment to work in. They allowed complete freedom to
complete our work.

We also thank to all other faculty members of S. K. School of business

Management, Patan, for providing guidance and help us to complete this project. We
thank for their active involvement in project work. They have been always with us
when we needed any type of guidance. Their guidance and inspiration made this
 project fruitf
fruitful
ul and meaningful
meaningful exercise.
exercise.

At last but not the least, we thank to all those who helped us directly or indirectly
and whose names have not appeared here but whose contribution have not gone
unnoticed.
 

EXECUTIVE SUMMARY

Gujara
Gujaratt state
state fertil
fertilizer
izer & chemical
chemical limite
limited
d (GUJAR
(GUJARAT
AT PRIDE,
PRIDE, NATION
NATIONS
S
GROWTH) Established in Gujarat in the beginning of 1962 . Since its beginning, GSFC has

consistently translated the feature of care in its every activity. It is offerings best to the
customers. GSFC is taking its philosophy of care and extending it to every part of its
existence, employees, suppliers, services, society and even the environment. With a market
 presence exceeding 45 years GSFC today stands for superior
superior quality
quality with many of its
 products being ISO 9001 certified.
certified. GSFC believes
believes in providing highest value for the
Customer's
Customer's money through economies
economies of scale, continuous
continuous product improvement
improvement & Value
addition to the products. From household consumer to core industrial consumer, GSFC
continuously fulfils multi-fold needs of the market. GSFC created a product mix ranging
from fertilizers to petrochemicals, chemicals, industrial gases, plastics, fibres and other 
 products.. 
 products

GSFC does not offer fertilizers only but happiness too. The company along with
diversi
diversifie
fied
d and customi
customized
zed agricul
agricultur
tural
al product
productss also
also offers
offers total
total soluti
solutions
ons for farm
farm
 productivity.
 productivity. GSFC
GSFC has customer
customer service
service centers
centers both
both in Agricultura
Agriculturall Field (AD
(AD & AS)
AS) and
Industrial Field (ADC) to disseminate the latest technical knowledge for the efficient use of 
the Products.

Initia
Initially
lly with
with the quality
quality str
struct
ucture,
ure, compri
comprising
sing of 49% of State
State Governm
Government
ent
 participation
 participation and 51% of Public and Financial
Financial Institutions,
Institutions, today the Government’s
Government’s
involvement has come down to 38.4%.

As an organization formed for supporting the farmers, GSFC’s every act

revol
revolves
ves arou
around
nd the st
stat
ated
ed goal
goal of  “no
“nott only
only sellin
selling
g fertil
fertilize
izers,
rs, bu
butt als
also
o offeri
offering
ng
happiness.” Translating this belief has been the constant standard that its every act must
measure up to.
GSFC is a respectable player in the emerging scenario of the competitive & globalized
industry.
 

CONTENT 

CHP: NO Title

CHP: 1 Research Me
Methodology

CHP: 2 A) Fertilizer Ind

ndu
ustry
B)Major player in market
C) GSFC History
D) Products

CHP: 3 A) Marketing Department

B) Marketing Mix
C) Marketing Strategy
 D) Sales Network 
 
CHP: 4 Product
ductio
ion
n to
to T
Trransf
nsfer at GSFC
Marketing process flow chart
Packaging & labeling
Storage Department
Sales Procedure
Marketing Zones
Area and Regional Office
Dispatch
Rake procedures
Freight expense
 
CHP: 5 Conclusion
 
CHP: 6 Bibliography
 
 

 RESEARCH
 RESEARCH METHODOLOGY 

SCOPE OF THE STUDY

S TUDY
At GSFC various fertilizer products are being manufactured and then distributed
through different channels. It will help to study the sales and distribution channel of 
different products as well as to understand the Logistics operations related to it and also the
 problemss related
 problem related to it.

OBJECTIVES OF THE STUDY

• To study the overall Fertilizer Industry of India.

• To study the sales and distribution channels of Fertilizer products in GSFC.

• To analyze existing problems in this distribution channels.

• To study the logistics facilities currently used at GSFC.

RESEARCH DESIGN
Descriptive research design has been used in this project.

SOURCES OF DATA

Secondary Data

Secondary data will be collected from magazine, newspaper and internet.

LIMITATIONS:
• As it is a Descriptive research it is used to provide a systematic description that is

factual and it cannot help to determine what causes a specific behavior or action.
 

• Also the information is gathered by taking informal interviews, so it becomes

difficult to take all the information about the company due to their secret policy.

FERTILIZER INDUSTRY 

India is primarily an agriculture based economy. The agricultural sector and its
other associated spheres provide employment to a large section of the country's population
and contribute about 25% to the GDP. The Indian Fertilizer Industry is one of the allied
sectors
sectors of the agricultu
agricultural
ral sphere.
sphere. India
India has emerged
emerged as the third
third largest
largest producer
producer of 
nitrogenous fertilizers. The adoption of back to back Five Year plans has paved the way for 
self sufficiency in the production of food grains

The large scale use of chemical fertilizers has been instrumental in bringing about
the green revolution in India. The fertilizer
fertilizer industry in India began its journey way back in
1906. During this period the first Single Super Phosphate (SSP) factory was established in
Ranipet in Chennai. It had a capacity of producing 6000 MT annually. In the pre and post
independ
independence
ence era a couple
couple of large
large scale
scale fertil
fertilizer
izer units were
were establ
establishe
ished
d namely
namely the
Fertilizer
Fertilizer Corporation of India in Sindri,
Sindri, Bihar and the Fertilizer & Chemicals
Chemicals Travancore
of India Ltd in Cochin, Kerala.

The Indian government has devised policies conducive to the manufacture and
consu
consumpt
mption
ion of fe
fert
rtil
ilize
izers
rs.. Nume
Numero
rous
us commi
committ
ttee
eess have
have been
been fo
form
rmed
ed by th
thee In
India
dian
n
government to formulate and determine fertilizer policies. The dramatic development of the
fertilizer industry and the rise in its production capacity has largely been attributed to the
favorable policies. This has resulted in large scale investments in all three sectors viz.
 public, private
private and co-operative.
co-operative.

At present there are 57 large scale fertilizer units. These manufacture an extensive
range of phosphatic, nitrogenous and complex fertilizers. 29 of these 57 units are engaged
in the manufacturing of urea, while 13 of them produce Calcium Ammonium Nitrate and

Ammonium Sulphate. The remaining 20 fertilizer plants manufacture complex fertilizers

 

and DAP. There are also a number of medium and small scale industries in operation,
about 72 of them.

Public Sector Companies:

• Fertilizer Corporation of India Limited (FCIL)
• Hindustan Fertilizer Corporation Limited (HFC)
• Pyrites, Phosphates & Chemicals Limited
• Rashtriya Chemicals and Fertilizers Limited (RCF)
•  National Fertilizers
Fertilizers Limited
Limited (NFL)
(NFL)
• Projects &Development India Limited (PDIL)
• The Fertilizers and Chemicals Travancore Limited (FACT)
• Madras Fertilizers Limited (MFL)
• FCI Aravali Gypsum & Minerals India Limited, Jodhpur 
• Paradeep Phosphates Limited (PPL)
•

•
 Neyvel
 Neyveli
i Lignite
Hindustan CopperCorporation
Corporation
Limited Ltd.
Ltd. (NLC)
(HCL) (NLC)

• Steel Authority of India Limited (SAIL)

Private Sector Companies :

• Chemicals and Fertilizers Limited
• Khaitan
• Mangalore Chemicals
•  Nagarjuna
 Nagar juna Fertilizers
Fertilizers
• Zauri Chambal
• BEC Fertilizers
• Gujarat State Fertilizers &Chemicals Limited
• DSCL
• The Scientific Fertilizer Co Pvt Ltd
• Coromandel Fertilizers
• Deepak Fertilizers and Petrochemicals Corporation Limited
• Apratim International
• Aries AgroVet
• Devidayal Agro Chemicals
 

GSFC HISTORY 

Gujarat State Fertilizers & Chemicals Limited was born on 15th February, 1962
with a mission to make the country self-reliant in agriculture and develop the rural India.
Presently, it is the very backbone of agriculture in India. Sharing the expectations and
ambitions of the people of the Gujarat GSFC-a joint sector enterprise, opened avenues of 
opportunities for he people of Gujarat as well as fellow countrymen. Today, with the
 backing of a dynamic, progressive
progressive and foreseeing
foreseeing management
management and the zealous
zealous and
enthusiastic
enthusiastic efforts
efforts of its human
human resources,
resources, GSFC
GSFC has culminated
culminated into Rs.2,
Rs.2, 000 corers
 plus Turnover
Turnover Company.
Company.
Guja
Gujarat
rat State
State Fert
Fertil
ilize
izers
rs and Chem
Chemic
ical
alss Li
Limi
mite
ted
d has made
made an outst
outstand
anding
ing
contribution towards the progress of the Indian fertilizer industry. As a matter of fact, the
company is focused on supporting farmers in all respects and ensures the supply of the best
quality fertilizers to them. Its vision is to become a globally known, innovative company,
utilizing the best of technology and producing high quality products.

1967 –The Genesis

 
Translating GSFC's philosophy is its vast network of plants that make its possible.
This infrastructure took its first step in 1967 with the setting up of 6 plants with an initial
investm
investment
ent of
of Rs. 40
40 Crores
Crores.. These
These six
six nitroge
nitrogenous
nous and
and phosphat
phosphatic
ic ferti
fertiliz
lizer
er plants
plants
star
starte
ted
d prod
produc
ucti
tion
on of Ammo
Ammoni
nia,
a, Ur
Urea
ea,, Ammo
Ammoni
niaa Su
Sulp
lpha
hate
te (A
(AS)
S),, Di
Diam
ammo
moni
nium
um
Phosphate(DAP), Sulphuric Acid and Phosphoric Acid.

1969 – First Expansion

Expansion
 

The expansion of Ammonia and Urea production began with Phase II in 1969 and an
investment of Rs. 23 Crores was made to meet the increasing demand for Nitrogenous
fertilizers.

1974 - Phase III

Ph
Phas
asee III
III be
bega
gan
n in 19
1974
74 when
when di
dive
vers
rsif
ific
icat
atio
ion
n of pr
prod
oduc
ucts
ts oc
occu
curr
rred
ed..
Plants to manufacture
manufacture Caprolactam,
Caprolactam, Melam
Melamine,
ine, Nylon-6, Oleum- SO 2 and OXO-Synthesis
Gas unit and Purge Gas Recovery Unit were set up.

With Phase III, GSFC became India's first & only Melamine producer. This provided
the boost for further diversification to Nylons / Fibers / Melamine / MEK-Oxime and
industrial gases like Argon Gas & Oxo Synthesis Gas.

1989 - Further expansion and diversification

Three Co-generation units using LSHS and Natural Gas were set up. Also further 
expansion of Ammonia and Caprolactam production was initiated. Diversification into
Fibe
Fibers
rs,, Nyl
Nylons,
ons, an
and
d Acr
cryl
ylic
ic was
was co
com
mplet
pleted
ed an
and
d a DAP pl
plaant was
was al
also
so se
sett up
up..

This
This exte
extensi
nsive
ve dive
divers
rsif
ifica
icati
tion
on and
and expan
expansi
sion
on drive
drive has been
been fu
fuel
elle
led
d by GSFC
GSFC's
's
compelling
compelling need to ensure full utilization of available resources while also maintaining
maintaining its
 profitability
 profitability and
and leadership
leadership status.
status.
 

GSFC UNITS 

GSFC has mainly four units:

1. Main Plant : Fertilizernagar, Vadodara

2. Polymer Unit : Nendesari, Vadodara district

GSFC LTD-POLYMERS UNIT (PU), erstwhile Polymers

Corporation of Gujarat Ltd. a GIIC sponsored Company was
established in the year 1973 and subsequently in the year 
1985 amalgamation took place with GSFC Ltd. GSFC-PU is
India’s
India’s leading
leading supplie
supplierr of Acrylic
Acrylic Product
Productss from
from virgin
virgin
monom
mo nomerer produ
produce
ced
d by the compan
companyy in itit’s
’s own
own plant.
plant.
GSFC
GS FC-P
-PUU offe
offers
rs wi
wide
de ra rang
ngee of Acry
Acryli
licc Mono
Monomemers
rs &
Polymers.

3. Sikka Unit : Moti Khavdi, Jamnagar

To meet the fertilizer requirement of the country, GSFC
es
estab
tabli
lishe
shed
d a Coast
Coastal
al Di
Diamm
ammoni
onium
um Phos
Phospha
phate
te Pl
Plant
ant at
Sikk
Sikka(
a(ja
jam
mna
naga
gar)
r) ba
base
sedd on impor
mportted Ammo
Ammoni niaa anand
d
Phosphoric Acid.

4. Fiber Unit : Kosamba, Surat district

The Fibre Unit at Kosamba to manufacture Nylon yarn and
 Nylon-6
 Nylon- 6 chips & Engineering
Engineering Plastic
Plastic grade
grade chips.

 PRODUC
 PRODUCTS 
TS 

With a market presence exceeding 45 years GSFC has carved out an irreplaceable
image for itself on the Indian marketing scene. Integration of technologies and brilliant
innovative research ensures that the products touch all walks of life. From household
consumer to core industrial consumer, GSFC continuously fulfils multi-fold needs of the
 

market. GSFC's incessant strive for product diversification and value addition has created a
 product mix ranging from more than 24 brands of fertilizers
fertilizers to petrochemical
petrochemicals,
s, chemicals,
industrial gases, plastics, fibers and other products. Conforming to the strictest international
standards, GSFC continuously achieves and maintains best quality, superior packaging,
 prompt deliveries
deliveries & services
services of highest standards
standards for every product.
product. This claim is well
subst
substant
antiat
iated
ed by a st
stri
ring
ng of Nati
Nationa
onall & Inte
Interna
rnati
tiona
onall Awar
Awards
ds,, but
but to
tota
tall Cust
Custom
omer 
er 
Satisfaction is the most valued award at GSFC.
………………………………………………

GSFC today stands for superior quality with many of its products being ISO 9001
certified. GSFC believes in providing highest value for the Customer's money through
economies of scale, continuous product improvement & Value addition to the product.
Undoubtedly, GSFC is a respectable player in the emerging scenario of the competitive &

globalizes industry
globalizes industry.…GSF
.…GSFC
C has Custom
Customer
er Service
Service Center
Centerss both
both in Agricul
Agriculture
ture Field
Field
(AD&AS) and Industrial Field (ADC) to disseminate the latest technical knowledge for 
efficient use of the Products.
Products..…
………

Industrial Products ISO 9001 Certified Anhydrous Ammonia

Argon Gas
Caprolactam
Melamine

Methyl Ethyl Ketoxime

 Nylon-6
 Nylon-6
Oleum
Sulphuric Acid
Other Products Acetone Cyanohydrine - ACH
Anone-Anol Mixture
Cyclohexane
Cyclohexanone
Hydroxyamine Sulphate
Methacrylic Acid - MAA
 

Methyl Methacrylate - MMA

 Nitricc Acid
 Nitri
 Nylon-6
 Nylon-6 Filament
Filament Yarn
PolymethylMethacrylate (Pellets)
Polymethyl Methacrylate (Sheet)
  Sulfonated Melamine Formaldehyde
Water Soluble Polymers

AGRO PRODUCTS Fertilizers Urea

Ammonium Sulphate
Di-Ammonium Phosphate
APS
 NPK 
Water-soluble fertilizers
Micro Mix
Gypsum
  Bio – Fertilizers
 
Azotobacter
Azotob acter Culture
Cultur e
Azospirillum
Azosp irillum Culture
Cultur e
Phosphate Solubilizing
Bacteria (PSB)

Rhizobium
Rhizo bium Culture
Cultur e
Bio – Fuels

Plant Tissue Culture

BIOTECH PRODUCTS Seeds Sardargib

Sardar Eco Green
Sardarvam
Sardartrap & Sardarlures
Sardarneem
 

Sardaramin

 Important issue confronting the sector 

♦  Naturall gas
 Natura

♦ Limited availability of phosphoric acid and rock phosphate

♦ Dependence to a large extent on imports.

In view of the limited availability of the main feedstock within the country, fertilizer 
companies today are exploring the possibility of setting up joint ventures abroad to tie up

their feedstock requirements. Domestic players have also not been able to enter into long
term gas supply agreements primarily due to differences over pricing. India is one of the
largest national markets for agricultural inputs in the world. It ranks first in the number of 
tractors produced and sold. It is also one of the largest fertilizer and pesticide producers and
consumers. Part of the increase in research in the 1990s was due to foreign input firms’
deciding that the Indian market was simply too large to ignore, even if many policies were
not conducive to high profits.

Fertilizer in the agricultural process is an important area of concern. Fertilizer industry

in India has succeeded in meeting the demand of all chemical fertilizers in the recent years.

The center’s mounting subsidy burden and 

its repercussions

The centre's subsidy bill continues to increase steadily on the back of rising
international prices and input costs. This is aggravated by the increasing dependence on
imported fertilisers; the centre not only has to subsidise more tonnes of imported fertiliser,
 

it also has to pay more subsidy per tonne as global prices increase while farm gate prices
do not.

According to the ministry of chemicals and fertilisers, the fertiliser subsidy burden is
expected to more than double to nearly Rs.950 billion in 2008-09 from Rs.450 billion, the

 previous year; against this, the centre has budgeted Rs.310 billion
billion as fertiliser subsidy for 
2008-09.

For manufacturers, high input prices in 2008-09 will result in increased subsidy
receivables. How fast these receivables actually translate into receipts will depend almost
entirely on centre's fiscal position; CRISIL believes that fertiliser manufacturers will face
increasing delays in subsidy settlement, especially during the second half of 2008-09, once
the government's subsidy
subsidy budget has been exhausted. Manufacturers
Manufacturers will have to make up
the difference through increasing levels of working capital borrowing in a high interest rate
regime, a combination that will exert considerable downward pressure on coverage ratios.

Given its large subsidy burden compared to the budgeted amount, the centre could
also issue more bonds. Since November 2007, the centre has begun funding part of its
subsidies through fertiliser bonds in lieu of cash, with fertiliser companies then selling
these bonds in the secondary market. However, the buyers, mostly banks, provide only a
discount
discounted
ed value
value on the bonds:
bonds: the currently
currently high interes
interestt rat
rates
es will
will result
result in lar
larger 
ger 
discounts on the bonds in 2008-09, further eroding players' profitability.

In 2007-08 urea has been imported from Oman India Fertiliser Company (OMIFCO), at
substantially lower prices, but the amount was only around 1.6 million tonnes out of a total
domestic consumption of 25 million tonnes.

Despite the many difficulties that the centre faces, CRISIL believes that subsidy
sett
settle
leme
ment
ntss wi
will
ll no
nott be de
dela
laye
yed
d inde
indefi
fini
nite
tely
ly.. Beyo
Beyond
nd a po
poin
int,
t, de
dela
lays
ys in su
subs
bsid
idy
y
reimbur
reimbursem
sement
ent would
would str
stretc
etch
h manufac
manufactur
turers
ers'' working
working capital
capital positio
position,
n, res
resulti
ulting
ng in a
slowdown in domestic fertiliser production and the possibility of some plants shutting
down. This in turn would trigger fertiliser shortages with ensuing farmer unrest, which the
centre will be keen to avoid, given its objectives of continuous and easy availability of 
 

fertilisers to farmers. Increasing the level of imports would not be a preferred route for 
meeting any shortages because of high global urea prices, which are significantly higher 
than the retention prices being paid to domestic producers.

V ision, Mission & Values of the Company

Vision

“To emerge as a world-class, multi-product,

multi-product, eco-friendly global company through
technological development, innovation and customer satisfaction and thereby to contribute
to the welfare of society.”

Mission

• To provide quality inputs and services to agriculture and industry at competitive

 prices and thereby

thereby improving
improving quality
quality of life
life of the
the people.

• To achieve excellence through creativity, innovation and services to the society.

• To satisfy needs of customers and stakeholders by managing business responsibly

and sensitively.

• To adopt innovative and meticulous approach for continuous improvement in

 performance,
 performance, to achieve growth
growth rate
rate and profitabil
profitability.
ity.

•
To implement ethical standards so as to maintain supreme quality of products and
 processes.
 processes.

Values
• Strong Commitment towards clean environment and social services.

• Hard work , Discipline, Integrity, Honesty, Dedication, Mutual respect and

Transparency.

• Strong commitment to quality of products and customer services.

• Promotion of creativity and professionalism through HRD.

 

MARKETING
DEPARTMENT
 

INTRODUCTION

A market consist of all the potential sharing a particular need or want, who
might be willing
willing and able to engage in exchange
exchange to satisfy that nee
need
d or want. Marketing
Marketing
management is the process of “planning and executing the conception, pricing, promotion
and distribution of ideas, goods and services to create exchanges that satisfied individual
and organizational
organizational goals. Thus it is necessary
necessary for every company to have an effective and
efficient marketing department.

 
Communication

GOODS / SERVICES
INDUSTRY MARKET
(a collection of  (a collection of 
sellers)  buyers))
 buyers

MONEY

INFORMATION

Meaning of MARKETING in word of GSFC

Movement of product and collection of Finance

Awareness marketing information

 

R eporting
eporting of concerned status perodically

K eep
eep in touch with Global scenario

Efficient use of available resources

Training of Expanses and overheads
Interception of data and overheads
New ways of functioning
Goal for higher turn over profitability

MARKETING MIX

Marketing mix includes the 4p, this 4p are within the control of the organization but
they are subject to external environment forces. This 4p are interrelated. 4p of marketing
mix are product, price, place and promotion.

Product Decisions

Philip Kotler said a product is anything that can be offered to a market for 
attention, acquisition, use or consumption that might satisfying a need or want. It include
Physical object, services, persons, places, organization & ideas. The product is bundle of 
all kind of satisfaction of both material & material kinds of ranging from economic utilities
to satisfaction for psychological nature.
GSFC also produces many products which is as follows:

Industrial Product: -

o Anhydrous Ammonia
o Argon Gas
o Caprolactam
o Melamine
o Methyl Ethyl Ketoxime
 

 Nylon-6
o

o Oleum
o Sulphuric Acid
 Other product

o Acetone Cyanohydrine - ACH

o Anone-Anol Mixture
o Cyclohexane
o Cyclohexanone
o

PRICE DECISIONS
 
Pricing of the product is a crucial element of marketing mix. Price is the forth ‘P’s of 
market
marketing
ing mix.
mix. The other
other three
three are place promot
promotion
ion and product
product.. Pricing
Pricing polices
polices are
guideline to carry out pricing strategy. Pricing policies must be change & adopt themselves
with the changing objective & changing environment.
The prices of fertilizer is in the under control of Fertilizer Monitoring System so that GSFC
is not decides their sealing prices but the Central Ministry of India and FMS decided the
 pricing of
of the it.
it.
The Factors affecting to the Pricing Strategy:

PRIC
E OF PRODU
RAW CTION 
MAT COST
ERIA
L

PRIC
E
OF
FERTI
LIZER 

TRAN
GOVE SPOR 
RNME
-
 NT
TATI
POLI
ON
CY
COST
 

DISTRIBUTION (PLACE) DECISIONS

 Distribution
 Distribution is about
about getting the products
products to the
the customer.
customer.

Some examples of distribution decisions include:

• Distribution channels
• Market coverage (inclusive, selective, or exclusive distribution)
• Specific channel members
• Inventory management
• Warehousing
• Distribution centers
• Order processing
• Transportation
• Reverse logistics

GSFC sales its fertilizer product through Institutional Co-operative

Co-operative Agency. Different co-
operative agriculture federation at village, taluka & state levels. The top ten institutional
agency are as follows:

GUCOMASOL - Gujarat state co-operative marketing federation ltd.

It is an government body under these there are 6000+ or detail outlets are
there.
GAIC - Gujarat Agro Industr
Industrierr
ierr corporat
corporation
ion limli
limlited
ted is also an Govt body having
3000 to 4000 retail outlet.
GUJCOT
GUJCOT - Gujara
Gujaratt co-ope
co-operat
rative
ive cott
cotton
on fede
federati
ration
on limi
limited
ted is als
also
o an
an Govt.
Govt. body
body..
GCTCF - Gujarat co-operative tobacco growers federation limited is also an govt
body
UGFDA - Uttar Gujarat fertilizer & dealers association.
This is an private Institutional in these there is no Govt. interference & they
don't have to take permission from Institutional Agency they can sell it
directl
directly
y to take permissio
permission
n fro
from
m Ins
Instit
titutio
utional
nal Age
Agency,
ncy, they can sel
selll it
directly to their customer.
GFDA - Gujarat fertil
fertilizer
izer dealers associat
association
ion is also private institu
institution
tion having same

characteristic which are mentioned above in UGFDA.

 

GOGF - Gujarat state co-opera

co-operative
tive growe
growers
rs federat
federation
ion limite
limited
d is an co-opera
co-operative
tive
society related that part of area where growth of onion is more, it is seen
more on Saurashtra side.
F&V - Gujarat state fruits & vegetabl
vegetables
es marketing federation limited is also co-operative
co-operative
society suited mostly on south Gujarat side.
ARCOGUL - Anand region of co-operative oilseed growth federation limited mostly
situated in Charotar region. eg. Anand Kapasiya, tel, singh tel, etc.

 PROMOTION DECISIONS 
DECISIONS 

In the context of the marketing mix, promotion represents the various aspects of 

marketing communication, that is, the communication of information about the product
with the goal of generating a positive customer response

Today Businesses need to constantly adapt and reconfigure business operations to meet
changing customer demands; compress business cycles; and differentiate from competition.
In the fertilizer industry, where there is no product differentiation, in order to woo the
customers to make a purchase decision, there is an immediate need to sense, understand
and respond to changes, threats and opportunity by harnessing the power of real time
services

The GSFC is conducting the promotional activity for the not only the purpose of 
increasing the sales of the fertilizer but also to making the awareness among the farmers,
towards the products and utilization of it. There are various promotional activities done are
 by the GSFC
GSFC are:

Comp
Compan
any
y ha
hass an
anal
alyz
yzed
ed so
soil
il an
and
d wate
waterr sa
samp
mple
less an
and
d re
reco
comm
mmen
end
d to th
thee fa
farm
rmer
erss
micronutrients and soil amendments besides economic dose of chemical fertilizers for 
maintaining
maintaining soil health. For implementati
implementation
on of MIS in the state,
state, analysis of soil and water 
is necessary for proper designing of the MIS system and company has played a pivotal role
for testing soil and water samples during the year.
 

Company has promoted organic farming by supplying bio-fertilizers to the farmers of 
Gujarat. GSFC won the national award for Production, Promotion and Marketing of Bio-
fertilizers for 2006 instituted by the Fertilizer Association of India.

Company is conscious about the greenery and ecological balance by promoting

horticulture activities among the urban population and to encourage more and more such
activities, your Company sponsored Fruit, Flower and Vegetable shows in association with
Baroda Agri-Horti Committee during the year and also participated in the competitions and
won awards.

Horticulture Department of your Company has taken initiative to make clean and
 beautifull “NIRMAL”
 beautifu “NIRMAL” GSFC and fulfill
fulfill the initiative
initiative taken
taken by Gujarat State
State in this
this direction
direction
on State Level.

To cater to the needs of fertilizers for the farmers adopting MIS in Gujarat, your 
Company
Company has starte
started
d manufac
manufactur
turing/
ing/ procuri
procuring
ng FCO approved
approved N: P: K water-s
water-solu
oluble
ble
fertilizer grades namely 19:19:19, 13:0:45, 0:52:34, 12:61:0 and 0:0:50 during the year.
This will increase fertilizer use efficiency and crop productivity.

 MARKETING STRATEGY 
STRATEGY 
The following strategy has been adopted by GSFC to increase fertilizer production:

• Expansion and capacity addition/efficiency enhancement through

retrofitting / revamping of existing fertilizer plants.

• Setting up joint venture projects in countries having abundant and

cheaper raw material resources.

• Working out the possibility of using alternative sources like liquified

natural gas, coal gasification, etc., to overcome the constraints in the domestic
availability of cheap and clean feedstock, particularly for the production of urea.

• Revival of the closed units by setting up brownfield units subject to

availability of gas.

• Setting up of Greenfield projects in urea sector.

 

SALES NETWORK 

The selling network of GSFC is well established and expanded in the whole country.
The selling of fertilizer is not done as per the selling activity. Because fertilizer distribution

of DAP and its interstate movement is under Government control and is regulated under the
Essential Commodity Act (ECA).

In the Gujarat the selling network is:

M.P.
Gu arat
arat
Chatis arh

Daman

Maharashtra

 A.P.

Karnataka

The selling policy of fertilizer for India Company supply the fertilizer to the Co Operative
Society and Private Depots (They registered their name priory in the company by taking
the permissions of the government)
In the Gujarat the company sell the fertilizer to the
 Company own 160 depots at all taluka place.
 Co – Operative Society
 Gujarat Agro Center 
 Gujarat Fertilizer Dealer Association.
 

Logistic operations includes packaging, branding inventory control at factories,

warehouses / storage place, transportation of material by various modes (Rail, Road,
Waterways) arranging for warehouses at various places / trade points supply of material at
right time at right place and with minimum cost.

Transport

Road Rail Export

Ingate GE Note Registration at sake Special taken follow

 procedure of road /rail
 procedure
document prepared
Material loaded at Wagon distribution accordingly
different sites (*) paper  Wagon types
signed Production type

Filling document
Outgate & Invoice
 prepared
 process

Railway Receipt (RR)

Prepared (freight, km,
destination)

Dispatch from GSFC

siding
 

 PRODUCTION
 PRODUCTION TO TRANSPORTATION AT GSFC 

PRODUCTION

PACKING

BAGGING

STOCKING IN W/H

LOADING

TRANSPORTATION
 

Production means conversion of raw material into finished goods. In a productive

enterprise it is essential to see that production is carried out in the best manner at the lowest
cost and within proper time limit and by maintaining the quality of the product.

GSFC is producing Urea. It works in three shifts and the general working hours for 
administrative people is 8 am to 5 pm

7 am – 3 pm

3 pm – 11 pm

11 pm – 7 am

There is a separate control room for controlling the production process which is handled

 by the engineers

engineers through the computerized
computerized machines. 45 minutes are taken for conversion
of raw material into finished goods.

Sections of production
There are three main sections of production process
A. DAP
DAP sect
sectio
ion
n
B. Pa
Pack
ckin
ing
g sect
sectio
ion
n
C. St
Stor
orag
agee sect
sectio
ion
n
 

MARKETING PROCESS FLOW CHART

Activity Production Marketing Dealer/ Finance DoF

Stockist/
Agencies

Preparation of 
Marketing
 budget

Preparation of 
Marketing
Policy

Purchase Order 

Logistic
dispatch

Receipt of 
 payment
 

Packaging and labeling

Packaging is the subdivision of the packing function of marketing. Packaging means to

 protect the goods from ant damages

damages as well as to attract the customer
customer towards the product.
In simple terms packaging implies to pack a commodity in a container according to the
need of the consumer.

It plays an important role in protecting, transporting the product and in facilitating its
identification. A manufacturer gives a special name or symbol or applies a trademark to the
 products to differentiate
differentiate them from other products so that buyers can easily identify them.
This is known as branding or labeling.

GSFC packs its product in HDPE

HDPE (High Density Poly et ethylene)
hylene) bags only. Formally as
apart of government regulation it used to pack 20% of its total production in jute bags. But
as the government removed the regulation and the HDPE bags are much economical than
the jute bags the company has started packing its total production in HDPE bags. These
 bags are more
more comfortabl
comfortablee and strong
strong for the
the transportat
transportation
ion and storage.
storage.

HANDLING STORAGE AND DESPATCH AT HEAD OFFICE

• Packed fertilizer bag as per following specification are stacked on either side of 
 bagging section
section facing
facing Railway
Railway point
point and truck
truck loading
loading point and
and the received
received
stock is recorded in the stock, filling and dispatch record.

Product Packaging Material Size of bag Gross weight/ bag Net weight/ bag

UREA HDPE 24” x 36” 50.130 kg 50kg

AS HDPE 24” x 30” 50.110 kg 50kg
DAP HDPE 24” x 32” 50.120kg 50kg
ASP HDPE 24” x 32” 50.120kg 50kg

• Dispatch by road depending upon the DI received from Zonal officer in the
online server for transfer of stocks to field godowns , ULA prepares road
 

dispatch programme and based on that, transporter wise daily truck programme
is prepared.

• On arrival of trucks, to collect entry chit from the truck driver and makes the
computer entry . Instruction for preparing state and national highway is given to
the contractor.

• As per the details mentioned in the entry chit, loading chit is generated and 3
copies are given to the truck driver and permitted to enter company’s limit.

• The truck is directed towards the truck loading point located alongside the
 bagging section
section . On
On production
production of L/C
L/C by the truck driver,
driver, the loading
contractor arranges to load the material in the truck as per the no of bags
mentioned in it.

• The loaded truck is then diverted towards the Outgate where the office
incharge, on production of copy of L/C , prepares the Invoice-cum-Gate Pass.

• Truck driver signature is obtained on all 4 copies of Invoice-cum-Gate Pass. 2

copies are given to the truck driver, 1 to sales Accounting Department and 1
copy is retained by Logistic Unit.

 Storage
 Storage departm
department 
ent 
 After the bags are
are packed they are sent
sent for storage.
storage.
Channel of storing the Urea product

Ware House

Buffer Godwn

Depots

Outlets
 

HANDLING, STORAGE AND DESPATCH AT FIELD GODOWNS

• To receive the material by road from Head Office as per the dispatch instructions
given by respective Zonal/ State Officer. On receipt of the material, make
appropriate receipt entry in his stock register.

• In case of rail dispatches from Head

Head office, the Regional Manager, Area m manager 
anager 
receives Rake Receipt before arrival of rake. The instructions are given to the
appointed H&T / C&F contractor for that particular point to arrange for unloading
of all the wagons within the time period allowed by the railway authority.

• To depute GSFC official to supervise unloading operation and prepare Rake

Receipt Report ( RRR ).

• At the destination rake point, if wagons seals are found in tempered conditions, the
deputed person brings it in the notice of On-duty railway officer and lodges claim
accordingly and the railway official prepares report jointly with H&T contractor 
and GSFC officer conforming wagon wise and product wise railway shortages.

• H&T contractor arranges to transfer the unloaded

unloaded material to the destination
godowns as per the Transfer Advice Note instruction furnished by concerned
Regional Mgr.

•  Non-usable empty
 Non-usable empty bags are
are laid on
on the floor
floor so as to protect
protect the material
material from
from
ground moisture at W/H. The filled bags are stacked on such layer. The sound bags
and damaged material are stacked separately

RESPONSIBILITY OF WARE HOUSE INCHARGE

• Is responsible for marketing of finished products in areas as per instructions and

coordinate with area/Regional manager.

• Responsible to obtain product requirements from the dealers and raise indents
accordingly.

• Responsible to make physical delivery as per procedure, undertake standardization

of damaged material, supervise rake operation, loading and unloading of material
and prepare necessary documents and maintain record as per the procedure.
 

• Responsible to receive stocks of finished products from H.O and other warehouses.

• Responsible for payment collection and deposition as per the procedures.

• Responsible for maintaining liaison with local bank, dealers, H&T contractor,

government agencies as per set procedures and rules.

• Responsible for smooth implementation of promotional activities and assess
effectiveness.

• Responsible for purchase office utilities, make payments and forward to Area office
for further actions.

• Responsible to allow shop and Establishment Act and FCO.

• Responsible for maintaining records and data.

• Responsible for maintaining good house keeping as per define norms.

• To supervise proper implementation of MP and in particular SOPs

• To follow the documented SOPs and report any deviation to supervisor 

SALES PROCEDURE

ECA ALLOCATION, DESPATCHES AND SALES CONTRACT

• Production in-charge issues tentative fertilizer production plan for kharif and rabi
season in the first week of every financial year and informs GOI through technical
department.

• Sales unit prepares state wise tentative sales planning under the guidance and
submits the plan to department of Fertilizers and chemicals, Ministry
Ministry of 
Agriculture-GOI before the commencement of kharif and rabi season for 
finalization of fertilizer allocation.
 

• Area mgr. attends the zonal/state conference organized by GOI before

commencement of kharif and rabi season for finalization of fertilizer allocation.

• Monthly supply plan received by the marketing dept in the beginning of the
the
season/month is circulated to state in-charges and Logistics unit for 
implementation.

• Managing director calls marketing committee meeting at least once in a season and
finalizes the commercial terms for sales of fertilizers others than statutory terms
decided by the GOI with regard to payment terms, delivery terms decided by the
GOI with regard to payment terms, delivery terms, cash discount and quantity
discount from time to time are prepared.

• On assessment of the market competition, to propose the term for sale of fertilizer 
which is been approved by SD within the approved limit of marketing committee.
The approved term are communicated to the Regional Mgr who communicates it to
the further dealer and agencies.

• As per the tentative production plan, production is continued and transferred to the
 bonded godown
godown and daily
daily production
production is reported
reported to SD by
by bagging section.
section. Central
Central
laboratory certifies the quality of production as and when demanded by marketing
department.

• Each W/H incharge invites seasonal purchase order from all the parties attached to
their W/H in the beginning of each season. The W/H incharge forwards one copy to
concerned Regional incharge and retains one copy at the W/H.

• To comply all such purchase orders received from various parties attached to his
W/H and prepare monthly product wise, party wise tentative sales scheduled for the
season in the beginning of the year.

• To generate his own monthly Indents (2 copies ) based on his tentative sales
schedule and prevailing market condition.

• To complies all such Indents and prepare destination wise monthly Indent in light
of tentative monthly supply plan. The Indents are then entered in the online
computer system.

• To prepare state wise delivery instructions and the data is then entered in the online
intranet system. Logistic Unit arranges for the dispatch of material to the specified
destination as mentioned in the corresponding DI by logging on the intranet system.

EX-WARE HOUSE TRANSFER FOR AGRICULTURAL APPLICATION

 

• When an authorized representative of appointed dealer approaches to concerned

warehouse incharge , issues a W/H delivery order (WDO) or Delivery Instruction
(DI), Material Delivery Advise (MDA) to the party.

• The forma of these documents may vary marginally depending upon the local
requirement.

• The W/H incharge gives one copy of such WDO/ DI / MDA to the party, forward
one copy to the concerned Regional Office, one copy to SWC manager and retain
one copy with him.

• At the time of actual delivery, party reproduces the WDO/ DI/ MDA to the
concerned W/H incharge. After preliminary verification , the W/H incharge
arranges to load the material into truck and prepare truck wise Gate Pass ( 4
Copies) . The format of Gate Pass may vary marginally depending upon the local
government.

• The W/H incharge obtain signature of authorized representative / transporter on

Gate pass in case of sales in Gujarat.

• The W/H incharge makes data entry in his register accordingly and maintain record
of party wise pending lifting register which shows balance quantity to be lifted by
the party under that particular WDO/ DI/ MDA.

• To compile the information contained in the Gate Pass and WDO/DI received from
various W/H and prepare commercial invoices and generates party wise sales
report. Based on invoices, party wise outstanding statement and W/H wise stock 
statement is generated.

•
In case of
directly to Ex-warehouse sales within
the Finance Department of Gujarat state , the party makes payment
the company.

• In case of state other than Gujarat , the W/H incharge receives the payment from
the parties in form of Demand Draft or Cheque . He prepares payment receipt and
forward one copy each to party, and concerned Regional office and retain one with
him as office copy . He then enters the data in the online intranet system.

• The W/H incharge deposits the DD or Cheque in local bank and forward one copy
each of DD submission slip to concerned Regional Office and Sales Account
section of the Finance department at HO.

SALES FROM DEPOT

 

• The depot incharge maintains the product wise stock card and displays it on the
depot’s notice board for fertilizer product. While keep record of sales, stock and
receipt for agro-input.

• When the customer / farmer approaches for purchase of fertilizer , the depot

incharge prepares
quantity and cash
amount memos
. The (3incharge
depot copies ) collects
in favor cash
of theascustomer mentioning
per the cash memo
amount from the customer /farmer.

• With the help of depot attendant issues the material to the customer and update
the stock register.

• To deposit the collected amount in local designated bank and obtain the
deposition slip , a copy of such slip is forward to sales accounting section of 
Finance department at HO.

Direct marketing at GSFC

Only 20% of the total production of DAP is directly marketed by GSFC through various
depots opened at various talukas in Gujarat . All most all the marketing activities are
controlled by head office which is at Baroda and all the regional offices has to report at the
head office. In Gujarat there are 18 regional offices and each regional office has 10 – 12
area officers.

12 area officers.
 Chart showing Channels of 
 

G.S.F.C.

Apex level Apex level

distribution
State Bulk  Company
co-operative agro
Govt marketer  agro service
Federation Industries
 pvt trade
trade center 
Corporation

Agro state District level District level Whole seller 

Farmers
outlets society center  and pvt dealer 

Agro
MARKETING AREA Retail pvt
farmers Taluka trade
level
Farmers
Village
level

Farmers
Pvt

GUJARAT ZONE

NORTH ZONE
 SOUTH ZONE
 

GSFC
REGIONAL OFFICE
( RO )
 

AHMEDABAD NADIAD RAJKOT

( RO ) ( RO ) ( RO )

SURAT CHANDIGARH HYDERABAD

( RO ) ( RO ) (RO )

PUNE BHOPAL JAIPUR 

( RO ) ( RO ) ( RO )

LUCKNOW BANGALORE
( RO ) ( RO )
 

GUJARAT ZONE AREA NETWORK 

REGIONAL OFFICE

AHMEDABAD

AHMEDABAD (A.O.) BHAVNAGAR (A.O.) MEHSANA (AO)

RAJKOT

JUNAGADH (A.O.)

NADIAD

GODHARA (A.O.)

SURAT
 VALSAD (A.O) FERTILIZERNAGAR (AO)
 

NORTH ZONE AREA NETWORK 

REGIONAL OFFICE

CHANDIGARH

PUNJAB (AO) HARYANA (AO)

UTTAR PRADESH

MEERUT (AO) BAREILY (AO) VARANASI (AO)

MADHYA PRADESH

JABALPUR (AO) INDORE (AO)

RAJASTHAN
 UDAIPUR (AO) KOTA (AO)
 

SOUTH ZONE AREA NETWORK 

REGIONAL OFFICE

HYDERABAD

BANGALORE

PUNE

KOLHAPUR (AO) JALGAON (AO)

 

GSFC OFFICE STRUCTURE

GSFC
HEAD
OFFICE

(HO)

GSFC
REGIONAL
OFFICE

(RO)

GSFC
AREA
OFFICE

(AO)
 

GSFC
DEPOT/
WARE
HOUSE

AHMEDABAD- RO

Ahmedabad Mehsana- Bhavnagar-AO

-AO AO

Ahmedabad Mehsana- Bhavnagar- S’nagar-

Depo Depo Depot Depot

Ahemdabad Mehasan W/H Bhavnagar W/H Surendranag

W/H Mehsana Talaja ar W/H
Viramgam Depot Mahuva ‘B’ Chotila
Bavla Vijapur Palitana Halvad
Sanand Patan Dhasa Drangadhra
Dhanduka Visnagar Botad Limbdi (S)
Dholka Sidhpur W/H Sihor Sayla “B”
Kadi “B” Gariadhar
Harij ‘B’

G’nagar Dist
 

Banaskantha
Dist

Depo
Deesa W/H
Palanpur
Deodar
Dhanera
Adalaj
Iqbalgadh
Chiloda
Danta
Dehgam

SURAT - RO

F’ nagar -
Surat - AO Valsad - AO
AO

Bharuch Vadodara
Surat Dist Valsad Dist
Dist Dist

Depot Depot Depot Depot

Surat W/H
Surat “B” Padra
Valsad
Kosamba Karjan
W/H
‘B’ Karvan
Vansda
Tadkeshwa Bharuch Sadhli ‘B’
Navsari
r Ankleshwa Savli
W/H
Mangrol
(S) Chikhli r
Hansot Bodeli
Dabhoi
Dharampur
Bardoli Rajpipla Waghodia
Khergam
W/H Valia ‘B’
Killapardi
Vyra Palej Chhotauda
Silvasa
 Madhi ipur
Bhilad
Mandvi (S) Pavijetpur
Vesma ‘B’
 
 

NADIAD- RO

Nadiad- AO Godhra- AO

Sabarkantha
Anand District Godhra District
Dist

Depo Depo Depo

t t t

Nadiad W/H
Nadiad depot Godhra Depot Himatnagar
Dakor Godhra W/H Himatnagar W/H
Kathlal Lunawada Modasa
Borsad Santrampur Prantij “B”
Anklav Halol Talod
Anand W/H Limbdi Malpur ‘B’
Balasinor Dahod Bayad
Matar Kothambha Khedbrahma
Dharmaj Kalol Bhiloda ‘B’
Tarapur “B” Vejalpur Idar
 Vadtal

RAJKOT - RO

 Junagadh -
 Junagadh
Rajkot - AO
AO

Rajkot  Jamnagar
 Jamnagar Kutch  Junagadh
 Junagadh Amreli
Dist Dis Dist Dis Dist

Depo Depo Depo Depo Depo

t t t t t

Rajkot  Junagadh
 Junagadh
(W/H) Bhuj Amreli
(W/H)
Gondal Hapa W/H W/H W/H
 Junagadh
 Junag adh
Paddhar  Jamjodhp
 Jamj odhpu
u Bhuj Rajula
(Depot)
i r Depot Bagasra
Visavadar
Dhoraji  Jamkhamb
 Jamk hamb Mandvi Lathi
Mangrol
Upleta alia Nakhatr Veraval Chalala
 Jasdan
 Jasdan Dhrol ana Babra
Kutiyana
Wankan lalpur Anjar Damnaga
Bilkha
er Mundra r
Keshod
Morbi Dhari
Talala
 Savarkun
(Gir)
dla
 

BHOPAL - RO JAIPUR- RO

 Jabalpur -
 Jabalpur Udaipur -
Indore - AO Kota - AO
AO AO

Udaipur
Indore – AO Kota W/H
W/H
Ujjain Sawaimadho
Sagar  Jawaiband
 Jawaiband
Khandwa pur
Gwalior h
Mandsaur Hidon
Shivpuri Chanderia
Ratlam
 Jhambua
 Jham bua
 

CHANDIGARH-RO LUCKNOW-RO

Ludhiana -
Karnal - AO Meerut - AO Bareily - AO
AO

Ludhiana-
Agra
W/H
Karnal- W/H Aligadh
Khanna
Kaithal Varanasi- Kanpur
Amritsar
Palwal W/H Hardoi
 Jalandhar
 Jalandhar
Hissar Allahabad
Moga
Faizabad
Bhatinda
 

PUNE - RO BANGALORE-RO

Kolhapur - Bangalore
 Jalgaon
 Jalgaon - AO
AO Belgaum
Raichur

 Jalgaon –
 Jalgaon
W/H
Latur
Nasik 
Sangli
Dhulia
Ahmednagar
Amravati
Akola HYDERABAD-RO

Raichur
Karimnagar
Hyderabad
 

WORK INSTRUCTIONS FOR HIRING SERVICES OF TRANSPORTERS

BAGGING AND LOADING CONTRACTORS AT HEAD OFFICE

• Once in three years, before expiry of previous transportation contracts, GM

arranges to release an advertisement in local daily inviting transporters and bagging
and loading contractors for registration with GSFC LTD.

• Parties approaching directly without reference of advertisements are also

considered subject to submission of the following documents:

1. pa
part
rtne
ners
rshi
hip
p de
deed
ed
2. Bank refere
reference
nce lette
letterr / Solvenc
Solvency
y certif
certificat
icatee
3. Latest
Latest Income
Income TaxTax clear
clearance
ance cert
certific
ificate
ate
4. R.T.O
R.T.O certi
certifica
ficate
te and Grou
Groupp R.T.O.
R.T.O. certi
certifica
ficate
te
5. List
ist of
of bra
branc
nchehess
6. Work
ork expe
experrieienc
ncee

• A statement of all registered parties for transport/ carting contractor and for 
Bagging and Loading Contractor is prepared and is discussed by a committee
nominated by MD. The committee identifies some of the potential parties out of the
list for approval by SD.
• To send Tender inquiry for transport contract and for Bagging & Loading contract
to such selected and registered parties and invites quotation within specific time
limit set by the committee.

AWARD OF CONTRACT

• All tenders received within stipulated time period are opened on a pre
determined time and date in presence of all committee members and the tenders
are scrutinized.
 

• To prepare a comparative statement for transport contract and /or for Bagging
and Loading contract rates quoted by parties and based on the statement the
committee recommends suitable parties to MD for approving their appointment
as contractors.
• After the approval by MD, SD issues work order and for transport and bagging
and loading contract respectively to the selected parties.
• In case of termination of any selected parties, the contract is conferred upon the
 party having
having offered
offered next lower
lower rates
rates or any
any other registe
registered
red party after 
after 
obtaining approval from SD.
• In case parties agree to work on the same terms and conditions, ULA initiates
the proposal for approval by SD/ committee and issues renewal letter to the
 parties.
 parties.

PROCEDURE FOR HIRING SERVICE OF DISTRIBUTORS

• The applications are received at Regional Office or Head Office for distributorship
from interested parties. If the application is received at HO, the same is forwarded
to concerned Regional Mgr for assessment. The assessment report is summarized in
 prescribed
 prescribed format.
format.

• To issues a form to such potential distributors and the filled form along with
remarks are sent to Regional Mgr for obtaining approval for appointing the
applicant of distributorship.

• Undertaking a performance assessment of each distributor every year against a

standard set of evaluation criteria and suggestions are given for the decisions
 pertaining
 pertaining to distribut
distributorship
orship renewal
renewal or termination
termination to
to SD.

WORK INSTRUCTION FOR

TRANSPORTATION HIRING SERVICES
CONTRACTOR OF HANDLING
AT FIELD OFFICES AND

• On expiry of previous H&T contract, the Regional Mgr invite applications from the
registered parties and parties approaching directly.

• The tender inquiry is sent to qualified parties and quotations are invited.

• All quotations are opened in presence of a committee appointed by MD/SD.

• The committee evaluates the tender and prepares a comparative statement. The
committee also negotiates the rate if felt by the members.
 

• The committee based on the comparative statement, prepares report recommending

the suitable party for appointment as H&T contractor.

• Concerned Regional Mgr forwards the proposal for approval of SD and for 
financial concurrence.

• After the approval, the proposal is forwarded to SD. Once the financial concurrence
is obtained ULA instructs the Regional Mgr to issue work order to the selected
 party. The
The concerned
concerned Regional Mgr assesse
assessess the performanc
performancee of H&T
H&T contractor 
contractor 
and proposes Zonal/ State Mgr for renewal or termination of contract.

RESPONSIBILITY
RESPONSIBILITY OF DEPOT INCHARGE

• Is directly responsible for retailing of fertilizers, seeds, Bio-fertilizers eetc

tc as per the
 policiess informed
 policie informed to him by AO / RO.

• Responsible for maintaining records and data and report to concern Area Office and
Regional Office.

• Responsible for educating farmers about efficient usage of fertilizers, various Agro
inputs by way of demonstration, soil testing and water testing.

• Responsible to receive stocks of finished products from H.O. and other warehouses.

• Responsible for maintaining liaison with local opinion leader, Government.

• Agencies, Bank and farmers in the interest of the organizational activities.

• Responsible for sending samples drawn by fertilizer inspectors for quality analysis
to central laboratory through state or Zonal Officer with permission from concern
officer.

• Responsible to follow shop and Establishment Act and FCO.

• Responsible for maintaining good house keeping as per define norms.

• To supervise proper implementation of MP and in particular SOPs.

• To follow the documented SOPs and report any deviation to supervisor 

 

CONTROL OF NON-CONFORMING FERTILIZER AT HEAD OFFICE

• To supervise the logistic operation carried out by the bagging and loading
contractor and ensures that all the bags are properly stacked.

• To supervise the operation of stitched fertilizer bags from the point of stitching
to the space allocated for the fertilizer bag stacking on either sides of the
 bagging plant.
plant. To ensure
ensure that
that all the fertilizer
fertilizer bags are stacked
stacked at its pre-
allocated space.

• At the time of loading, the bag in trucks or in wagon, to supervise the loading
operation and arranges to stack the damaged/cut/torn bags separately in a space
ear-marked for such bags.

• As the number of damaged/cut/ torn bags increases to approximately 50 bag,

the movement control officer arranges for preparing silo shifting permission
slip and sent to In-charge bagging section.

• On endorsement of silo shifting permission by bagging In-charge, to arrange to

send the damaged/cut/torn bags back to silo where the bags are emptied in the
heaps of loose fertilizer.

• Such empty bags are sent to scrap yard. A copy duly endorsed by scrap yard In-
charge is returned to shift In-charge or shift In-charge of bagging section.

• The movement control officer ensures that additional sound filled bags are
issued by the bagging section against the previous day’s damaged bags and
 proper entries
entries are
are made in
in daily filled
filled bag
bag report issued by
by the bagging
bagging section
section
to logistics unit.
 

CONTROL OF NON-CONFORMING FERTILZER AT FIELD GODOWNS

• To inform the concerned ULA about the damaged material and seeks
 permission from
 permission from him for undertaking
undertaking standardization
standardization operation.
operation.
• After obtaining permission from concerned Regional Mgr, to instruct the
H&T contractor to undertake standardization operation of the damaged
fertilizers.
• A committee consisting of concerned Area Mgr, Regional Mgr and W/H In-
charge supervise the standardization procedure . To prepare standardization
report and is certified by both Area Mgr and Regional Mgr.
• The damaged material generated out of standardization process to the extent
that it cannot be used for the agricultural purpose an/or because of 
unfavorable weather, is stored in separate space ear-marked for non-
conforming product as such that it should not come in direct contact of the
soil.
•

•
To maintain
Once, a register of such
the non-conforming non-conforming
fertilizer quantity
quantity exceeds of fertilizer.
a certain level, to raise
a proposal to send such
such non-conforming fertilizer back to fertilizernagar or 
sikka unit for reprocessing.
• After obtaining the approval, to approach Joint Director, Agriculture
seeking permission for sending the damaged fertilizer back to the
 production
 producti on unit for
for reprocessing
reprocessing..
• After obtaining the permission, to submit sales Tax return form applicable
in the state.
• The damaged material is then sent back to fertilizernagar within 12 months
of its date of dispatch and appropriate entries are made in stock register of 
concerned warehouses.
• At Head Office, the damaged material is received by logistics Unit is
transferred over to fertilizer plant for reprocessing.
 

Standardization procedure for damage material

• Cutting the bag from the mouth

• Segregate the damage as non-conforming stock 
• Clean the material if necessary
• Filling & weighing for 50 kg stitching & stacking
• Fill the damaged materials in the bags, weighing, stitching, stacking and
making as non-conforming stock 

RECONCILIATION OF STOCK IN THE FIELD

• Each W/H and depot maintain fertilizer sales register showing opening stock,
sales and closing stock at any point of time and that register is subject to FICC
verification for subsidy purpose.

• To verify the sales and closing stocks of each W/H and depot under his
 jurisdiction
 jurisdiction and
and submits
submits the stock
stock statement
statement to
to depot unit
unit at HO through
through
respective Regional / Zonal Office.

• To prepare the consolidated W/H wise / depotwise

depotwise sales and stock statement.

• The certified closing stock as on 31 st March becomes opening stock for the
next financial year.

RECONCILIATION OF STOCK AT HEAD OFFICE

 
• Gate pass register is maintained in Logistic unit, which gives total dispatches
during the year.

• Dispatches of fertilizer is recorded in state wise Invoice register which is

considered as auditable sales record and is subject to statutory audit.

• Regional Mgr sends a shortage report on quarterly basis to HO, which is

approved by SD or MD. After getting it approved, the same is verified and
certified by the auditors and this shortage of material is treated as loss and
entries are passed in the stock register for the state / W/H.
 

• Total of opening stock and dispatches are reconciled equal to total sales plus
 physical stock plus
plus shortage
shortage plus closing stock and material
material issued
issued for non-
commercial purposes.

DESPATCH THROUGH RAIL

• Depending upon the indent received from regional manager, concern GM decides
destination wise rail dispatch program in accordance with the stock availability.

• Based on the rail dispatch programme, Logistic Railway Unit registers its rake
 point to
to the western
western Railway
Railway authoritie
authorities.
s.

• Depending upon availability of wagons, the western railway confirms rake

allotment. The Logistic Railway Unit forwards a note to W. railway authorities
following which wagons along with R R are allotted to GSFC LTD.

• On arrival of wagons, the logistic unit prepares loading chits for each wagon. Based
on the quantity mentioned in L/C, the loading contractor loads material into
wagons.

• If ‘open’ wagons are allotted, the Movement Control Officer, instructs the loading
contractor to cover the wagons with cover in order to protect the material from
moisture, theft or pilferage.

• The loaded wagons are sealed in presence of the W. Railway authorities. After all
the wagons are sealed, the Railway authority issues Rail Receipt which is sent to
GSFC authorized person in the field rake point so as to make it available to him
well before the rake arrives at destination.

• Based on the L/C, Logistic unit prepares Invoice-cum-Gate pass and Rake Report.
A copy of RR is forwarded to concern ULA as an intimation of rake arrival.
 

STEPS IN RAKE PROCEDURE

Rake registration form fill up and send to railway office

Wagon number taken ( self document )

Forwarding note fill up in Railway office

Allotment form fill up in Railway office

Placement form fill up for own

 Freight
After Loading chitRailway
calculation,
Envelope
loading generated
+completed
invoice two in +
computer
receipt
L.Ccopy
send prepared
torake asin
outgate
report per
for+Rlyformat
invoice
R.Roffice
send by
to Rly
purpose
staff  through courier 
concerned destination
 

RAKE PROCEDURE DETAILS

1. Rak
akee regis
registr
trat
atio
ion
n

• Registration format fill up for registration.

• It include details like Consignee name, product type, weight, etc
• Wagon registration fee ( W.R.F.) i.e 15,000 Rs currently

2. To take
take wagon
wagon numbe
number,
r, when
when wagon
wagon arriv
arrives
es

• Wagon type :
1. BCNA
2. BCNA / HS
3. BCN
4. BOXN

Loading Bags BCNA / HS BCN Charge

UREA 1180 1216 640 QT/ BCNA. HS
ASP 1277 1217 610 QT / BCN
DAP 1276 1217
 

Weight of different bags :

UREA : 50.130 KG
Empty bag weight
Fertilzer bag weight
AS : 50.120 KG

DAP : 50.120 KG

3. Loco
Locomo
moti
tive
ve st
staf
afff :

• The main work of the locomotive staff is the placement of the wagon on the
 platform.
 platform.

4. Allot
llotm
men
entt ffor
orm
m:

• The allotment form consist of 3 copies

A.
A.)) orig
origin
inal
al
B.
B.)) co
cont
ntra
ract
ctor 
or 
C.) O/C
As per this format the contractor load the bags

5. Plac
Placem
emen
entt ffor
orm
m:
• It consist of 2 copies

6. forwardi
forwarding
ng note
note filling
filling up in railwa
railway
y office
office product
product wise
wise

• It consist of details regarding Wagon number, C.C. , No of bags, Type of 

wagon, Actual weight of wagon etc.

7. Making
Making of Loadin
Loading
g Chit ( LC ) and
and than making
making Invoice
Invoice produc
productt wise

• LC consist of No of wagon, No of bags, Type of wagon, MT and product

destination

8. Frei
Freigh
ghtt Calc
Calcul
ulat
atio
ion
n :

• It is calculated in the following manner by taking into consideration the

following Freight :

Charge net * rate

= Basic freight + 7% DPO ( Dynamic Process Charge )
= NTR + 2% DP
= Total + 20 Rs / MT
MT i.e. Platform charge
 

= Final Freight

Full Rake 1 destination 9 Hr 

Split Rake 2 destination 9 Hr 
Mini rake 20 wagon 5 Hr 

• Demurrage : If the company takes an extra time for filling up the wagons
i.e.extra 30 min, than the company have to pay Demurrage.

• Siding charge: If the engine is Electric than Rs 19,068 /-

If the engine is Diesel than Rs 13,024 /-

• Demurrage charges are calculated for one extra hour taken by the company
to fill the wagons. It is :

1Hrs * No of wagons * 100Rs

Rake points in Gujarat State

State District Rake Point Rake Point Name

Code
Gujarat Ahmedabad DOK Dholka-Rkpt
Gujarat Ahmedabad KKF Kankaria-Rkpt
Gujarat Amreli AE Amreli-Rkpt
Gujarat Anand ANND Anand-Rkpt
Gujarat Banas Kantha CHP Chhapi-Rkpt
Gujarat Banas Kantha DISA Deesa-Rkpt
Gujarat Banas Kantha PNU Palanpur-Rkpt
Gujarat Bharuch BH Bharuch-Rkpt
Gujarat Bhavnagar BVC Bhavnagar-Rkpt
Gujarat Bhavnagar BTD Botad-Rkpt
Gujarat Bhavnagar DAS Dhola-Rkpt
Gujarat Bhavnagar VTJ Vartej-Rkpt
Gujarat Dahod DHD Dahod-Rkpt
Gujarat Jamnagar HAPA Jamnagar(hapa)-Rkpt
Gujarat Junagadh JND Junagadh-Rkpt
Gujarat Kheda ND Nadiad-Rkpt

Gujarat Kutch GIMB Gandhidham-Rkpt

Gujarat Kutch NBVJ New Bhuj-Rkpt
 

Gujarat Mahesana MSH Mehsana-Rkpt

Gujarat Navsari NVS Navsari-Rkpt
Gujarat Panch Mahals GDA Godhara-Rkpt
Gujarat Patan SID Siddhpur-Rkpt
Gujarat Rajkot GDL Gondal-Rkpt
Gujarat Rajkot MHA Madhapur-Rkpt
Gujarat Rajkot RJT Rajkot-Rkpt
Gujarat Sabar Kantha HMT Himmatnagar-Rkpt
Gujarat Surat BIY Bardoli-Rkpt
Gujarat Surat CHM Chalthan-Rkpt
Gujarat Surat ST Surat-Rkpt
Gujarat Surendranagar SUNR Surendranagar-Rkpt
Gujarat Vadodara RNO Ranoli-Rkpt
Gujarat Vadodara BRC Vadodara-Rkpt
 

State wise Freight expense for the year 2008-09

State Qty. Freight Avg Frt- Lead avg- Frt Rate

000 MT Amtt
Am MT km Rs/MT/km

  Product : Urea

AP RD: 0.000 0.00 0 0 0.00

RL: 8.962 84.51 943 1254 0.75
Total: 8.692 84.51 943 1254 0.75

CG RD: 0.000 0.00 0 0 0.00

RL: 1.375 12.81 931 1159 0.80
Total: 1.375 12.81 931 1159 0.80

DD RD: 0.096 0.61 637 325 1.96

RL: 0.000 0.00 0 0 0.00
Total: 0.096 0.61 637 325 1.96

DH RD: 0.547 2.33 426 217 1.96

RL: 0.000 0.00 0 0 0
Total: 0.547 2.33 426 217 1.96

GJ RD: 109.638 258.24 236 179 1.32

RL: 58.278 116.23 199 204 0.98
Total: 167.916 374.47 223 187 1.19

During my Summer Training in Asia’s largest private sector-GSFC, I studied the

components of P&A, F&A, Materials, Transportation, and Marketing and HRD department.

 During our Summer Training in GSFC, I studied various components of the different
department. I observed different activities of them.

 Inside the company, the all-material handling system is designed in such a manner that it
minimizes
minimizes the handling
handling of material
material in maxim
maximum
um poss
possible
ible manner
manner.. Railway
Railway and road
 

transport handles the transportation of Urea, AS, ASP& DAP bags trucks. This is the
most efficient system that dispatches at its highest possible speed.

 In marketing, the Organization has a better advantage to reach upto its end users ie,
farme
farmers
rs th
thro
roug
ugh
h well
well esta
establ
blis
ishe
hed
d di
dist
stri
ribu
buti
tion
on chan
channe
nels
ls & prop
proper
erly
ly ma
main
inta
tain
ined
ed
 promotional activities.
activities. Awareness about the prod
product
uct (fertilizers) of the company is usually
available to the farmers & end users and it gives more benefit to the organization over its
competitors.

 Along with an overview of the organization I had been able to clear my aspect in the
marketing section of the organization. I learnt that how much critical analysis is needed to
carry out each and every task, as a single mistake would lead to a big collapse. Each and
every work is done systematically.
 Along with all these learning process I was able to get my first experience in the corporate
world, which has given me immense confidence to face the corporate world. My
experience with the corporate people has also enhanced my understanding of the
managerial aspects, it has also taught me lot about organizational behavior.

After examine past and present condition of this industry & after looking at its
 progress in a short duration
duration of time we can come to conclusion
conclusion that the future of this u
unit
nit is bride.
At last but not the least, I conclude my project report by greeting all my best
wishes to GSFC for its future progress.
 

BIBLIOGRAPHY
WEB SITES:
www.gsfcltd.com
www.departmentoffertilizers.com
www.nationalfertilizerslimited.com
www.urvarak.com

REFERENCE BOOKS:

Financial management by I. M. Pandey (9th Edition)

Human Resource Management by Aswathappa
Marketing Management by Philip Kotler ( 12th Edition )

REPORTS:
Annual Report of GSFC 2007-08
Annual Report of GSFC 2006-07

MAGAZINES:
G.S.F.C. – Environment, Health, Safety BULLETIN
Krishi Jivan - April-May-June-2009
Fertilizer Association of india
Prospectus of GSFC LTD