A

Observation Report

On

“Gajanan Fertilizer Pvt. Ltd.”

Submitted to

School of Commerce & Management Science

Submitted By

Mr. Rathod Anil

MBA (Marketing)

Guided By

Mrs. Dr. M. S. Deshpande

Swami Ramanand Teerth Marathwada

University, Nanded.

Swami Ramanand Teerth Marathwada

University, Nanded
 Certificate
This is the certify that Observation Report on

“ Gajanan Fertilizer Pvt. Ltd.”

Was successfully carried out

By

Mr. Rathod Anil

In the partial fulfillment of MBA course being conducted by School of
Commerce & Management Science during the academic year
2010 – 2011.

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

Joshi
Guide HOD

Acknowledgement
 I wish to take opportunity to convey my profound gratitude to
several key personalities involved in the success of my project and I am
deeply indebted to all of them.

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

who has given her valuable time and taken the efforts to help me to prepare
this project. I would like to thank for her numerous suggestions and
discussions.

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

support and kind co-operation. I would like to thank to all the staff members
of MBA department for their suggestions and encouragement time to time.

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

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

Mr. Rathod Anil Bansi

Content
Introduction
 Fertilizer being the back bone of the agriculture. It is very
necessary to have an industry manufacturing the fertilizers in the interest of
agriculturists, to get the expected yield from crops. We need fertilizers.

As such our farmers recently faced the crisis of shortage of

fertilizers, researcher has chosen this field and wishes it is very proper step
to start some research to bring reforms in this sector in the interest of
agriculturists.

SSP a product widely called as Single Super Phosphate is the

cheapest of such variety in the market and has taken a very good pick up,
these days it contains secondary nutrients like Sulphur and Calcium which
are very important for crops like pulses and oilseeds. These components are
not available in any other phosphatic fertilizers.

Besides the main object of this industry of manufacturing fertilizers

there is one more object & that is to utilize the hazardous wastes of chemical
industries, in such a way that those wastes shall be utilized for the output &
shall be dissolved at the end. This industry can also achieve the objective of
Global warming.

This report has been a great learning experience for me; at the
same time it gave me enough scope to implement my analytical ability.
 This report gives an insight about the Fertilizer sector and its
various aspects. It is purely based on whatever I learned at Gajanan
Fertilizers Ltd. One can have a brief knowledge about fertilizer sector and all
its basics through the project.

Fertilizer Sector & History

 India fertilizer industry is one industry with immense scopes in the
future. India is primarily agriculture oriented country and its economy is
highly dependent on the agrarian produce. 

The majority of the populace of India lives in rural areas and the
foremost occupation in the villages is agriculture. Developments pertaining
to different industries are being made on a massive scale to change the
country's economy from an agrarian one to an industrial one.

It is extremely important for the fertilizer industry India to have

development in terms of technologically advanced manufacturing process
and innovative new-age products. The first fertilizer manufacturing unit in
India was set up in the year 1906 at Ranipat in Chennai. 

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

medium and small fertilizer production units under the India fertilizer
industry. The main products manufactured by the fertilizer industry in India
are phosphate based fertilizers, nitrogenous fertilizers, and complex
fertilizers. The fertilizer industry in India with its rapid growth is all set to
make a long lasting global impression. 

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

manufacturing a wide range of nitrogenous and phosphatic/complex
fertilizers. Of these, 39 units produce urea, 18 units produce DAP and
complex fertilizers, 7 units produce low analysis straight nitrogenous
fertilizers and 9 of the above units produce ammonium sulphate as a by-
product.

Besides, there are about 79 small and medium scale units

producing single super phosphate. The total installed capacity of fertilizer
production in the country which was 104.98 lakh tonnes of nitrogen and
29.51 lakh tonnes of phosphate as on 1.4.98 have risen to 110.71 lakh
tonnes of nitrogen and 36.48 lakh tonnes of phosphate as on 29.2.2000.

The production of nitrogenous fertilizers during 1998-99 was

104.80 lakh tonnes of nitrogen and that of phosphatic fertilizers 31.41 lakh
tonnes of phosphate. The production target for 1999-2000 was fixed at
110.67 lakh tonnes of nitrogen and 33.45 lakh tonnes of phosphate,
representing a growth rate of 5.6% in nitrogen and 6.5% in phosphate, as
compared to the actual production in 1998-99.

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

101.16 lakh tonnes of nitrogen and 30.40 lakh tonnes of phosphate. Taking
‘N’ & ’P’ together, there was an overall growth of 5.3% over the production
during the corresponding period of last year.

The Indian fertilizer industry has come a long way since its early days
post independence. India today is one of the largest producer and consumer
of Fertilizers in the world. India’s production in terms of nutrients (N & P)
reached a level of 155 lakh MT in 2005-06 from 0.39 lakh MT in 1951-52.
Similarly, the consumption of fertilizers in terms of nutrients (NPK) has also
grown from about 0.66 lakh MT in 1951-1952 to nearly 184 lakh MT in
2004-2005.

Indian Govt. Policy For Fertilizer Sector

 The Indian Fertilizer industry, given its strategic importance in
ensuring self– sufficiency of food grain production in the country, has for
decades, been under Government control. The Government has over the
years, provided subsidies/concessions through the fertilizer companies to
farmers and the manufacturers have been compensated through various
schemes.

Though the Government control helped in meeting the objective of

ensuring creation of capacities and ultimately achieving self-sufficiency in
food grain production, it did not encourage improving efficiencies in the
sector. With the burgeoning subsidy bill and the need to focus on fiscal
prudence, Government policies in recent times are aimed at encouraging
efficiencies in the sector.

Policy measures like the new pricing scheme have made the
operations of less efficient players unviable. The Government polices today
are oriented towards achieving the stated objective of total deregulation in
the sector. However, the uncertainty over exact policy parameters and
absence of a comprehensive long term policy has not augured well for the
industry.

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

clarity on the policy parameters for both nitrogenous and phosphatic
fertilizers.

The policy parameters for third stage of the new pricing scheme
for urea which was to be implemented from the beginning of the current
financial year (FY07) are yet to be announced and the implementation of the
Prof. Abhijith Sen Committee report on phosphatic fertilizers is also pending.
The uncertain policy environment has also not encouraged any major
investments in domestic capacity.

Another important issue confronting the sector is with respect to

the feed stock. Natural gas which is the main feedstock for production of
nitrogenous fertilizers is available in limited quantities and the industry
competes with the power sector for its share. With the Government policy
favoring conversion to gas based units, the demand for gas is only expected
to go up in the future, which may in turn lead to further shortages.

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

availability of phosphoric acid and rock phosphate in the country, domestic
units are dependent to a large extent on imports. In view of the limited
availability of the main feedstock within the country, fertilizer companies
today are exploring the possibility of setting up joint ventures abroad to tie
up their feedstock requirements.

Though a few joint venture agreements have been signed with

respect to supply of phosphoric acid, only a couple of joint ventures have
been established with respect to urea. Domestic players have also not been
able to enter into long term gas supply agreements primarily due to
differences over pricing. 

Introduction of Gajanan Fertilizer Pvt. Ltd.

 The need of press parts has increased demand according to
various products like Fertilizer sectors and industrial sectors. In today’s
world engineering industries getting more demand because of revaluation of
industries.

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

world of revolution of Fertilizer Company in Nanded.

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

had looked with suspicion, where as now it has become a basic need of the
every industry as well as popular In other industrial areas.

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

operations as well as their products, Gajanan Fertilizers has given various
approaches towards customer study & various market strategies adopted for
customer satisfaction. Quality has given prime importance in the
organization, which has provided to be one of the major factors of company
success.
 Gajanan Fertilizers has basically two types of machines which are
working 24 hrs. The production work is done in three shifts. This increases
ability of production.

History :
Mr. Chavan was started a Gajanan Fertilizers in Nanded at MIDC
in 1990-1991.The main resource for the company to start; this unit molding
was based on the markets necessity & demand which was in huge quantity
the present of companies like Gajraj Fertilizer Pvt.Ltd., the additional power
&name in the market has happened to be only the unit entire Nanded.

At initial stage the products was distributed in Nanded Industrial

area Gajanan Fertilizers decided to distribute the product as widely as
possible to create all over the Maharashtra.

Unit Profile :

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

sell, import, export of all kinds of fertilizers, insecticides, chemicals, acids
and their by product and all organic and in-organic chemical compounds or
of their kind whatsoever, including by product, derivatives and mixtures
thereof.
 Mission

To partner and participate in the socio-economic growth of

farmers, to promote research and development in the field and to achieve
our goals with honesty and commitment towards our customers, investors,
partners, employees and greater society.

Vision

To be an evolving organization providing farmers in India and

Asia at large with next generation seed and fertilizer products in the most
cost effective manner through sustained cutting edge research in fertilizers,
seed technology, plant nutrition and soil health.
 Products of Company

The buyer purchases a product only because it satisfies need

&desires. Thus, a product is a bundle of potential utility because customer is
more interested in the benefits they get, from the product rather than the
product characteristics in physical senses.

Product knowledge is very necessary, in every aspect from

supplier’s point of view or customer’s point of view. Through knowledge
indicates a satisfied transaction & a long term relationship.
 The size of product is small, but its importance is very because
without such product big product cannot be assembled. This product have
bundle of potential utility this product having characteristics in its physical
sense.

Due to automobile industries, other industries & home appliances

companies having the demand is increasing day by day.

Location of Plant :

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

Plant NANDED - 431603
Location 288 km FROM HUYBRABAD

263 km FROM AURANGABAD

Total Site 37,165 m²

Area
Total Floor 11,260 m²
Area
 Board of Directors

Managing Director Mr.Sheshrao Chavan

Vice President Mr.Swapnil Chavan

Senior Vice President Mr. Uttam Chavan

General Manager Mr. A.S. Ambekar

Marketing Manager Mr. Divakar Kulkarni

 Competitors

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

as follows –

Some of the public sector companies in Indian Fertilizer Industry

 National Fertilizers Limited

 Fertilizers & Chemicals Travancore Limited

 Rashtriya Chemicals &Fertilizers Limited

 Madras Fertilizers Limited

 Steel Authority Of India Limited

 Neyveli Lignite Corporation Limited

 Paradeep Phosphates Limited

 Pyrites, Phosphates & Chemicals Limited

 Hindustan Fertilizer Corporation Limited

Some of the private sector companies in Indian Fertilizer Industry

 Chambal Fertilizers & Chemicals Limited

 Ajay Farm-Chem Private Limited

 Balaji Fertilizers Private Limited

 Deepak Fertilizer and Petrochemicals Corporation Limited

 Bharat Fertilizer Industries Limited

 Coromandal Fertilizers Limited

 Gujarat Narmada Valley Fertilizer Co. Limited

 Meerut Agro Chemicals Private Limited

 Duncans Industries Limited

 Karnataka Agro Chemicals

 Godavari Fertilizers & Chemical Limited

 Shri Amba Fertilizers (I) Private Limited

 Tuticorin Alkali Chemi & Fertilizer Limited

 Gujarat State Fertilizers & Chemicals Limited

 Indo-Gulf Fertilizers & Chemicals Corporation Limited

 Production Department

Gajanan Fertilizers is situated at MIDC; Nanded Company produces

the fertilizers product. Company have advance machineries technology,
highly skilled professional and stringent quality control systems to
manufacture.

The manufacturing plants get their raw material in the form of

water. The manufacturing process starts with quality control test more over
there is decentralization of quality of every stage, wherever worker finds a
slight change in the quality or physical dimension they reject is stating it to
be defective one. This is one of the features of the Gajanan Fertilizers.

Production Process :
At the time of making Fertilizer there are
some steps. Firstly PAP (phosphors power) is one of the Raw Materials of the
Fertilizer, this power Mix with the MOP & URIYA. After making mixture from
this three raw material is add which is SSP (suppler power) & dolament.
Dolament is used only for chemical purpose. Form the all the raw material
after mixing product is made.
Plant Layout :

Packaging :

The packaging department looks after the Products

 Packaging is depend upon order given by the customer, some

customer gives order in number of pieces, some customer gives
order in a bulk quantity.
Therefore packaging department do works according to the order given by
the customers.

Marketing Department

Marketing Policies :
Marketing deals with identifying and meeting
needs of the customer. It is ‘meeting needs profitably’.
 Marketing is typically as the task of creating, promoting and
delivery goods and services to consumers and business. In fact marketing
people are involved in marketing ten types of entities goods, services,
experience events, person places, and properties organization information
and ideas.

Marketing policies of Gajanan Fertilizers is the important and its

working greatly affects the overall performance of the company. It
emphasizes on the 4ps the product, price, promotion and place.

In this marketing department marketing personnel perform the

essential sales promotion activities, and decide how much to spend on
advertisements what special features can improve a new product. They
usually give stress improving the existing product and its maximum sales.

Marketing deals with sales process with product to product and

market to market. Advertising strategies differ with area and customers.
Distribution Channel :
Sales Promotion :
Sales promotion activities of Gajanan Fertilizers
are very wide and active field of marketing department. It adds on the extra
value to the product so that it prompts consumer to buy to product.

It includes all those sales activities that supplement both personal

selling, advertising and helps to make them effective. It includes all such
promotional activities, which do not fall distinctly into advertising, personal
selling and publicity. Sales promotion is also known by the name of extra
purchase value {EPV}

In addition to increasing competition other reasons for the rapid

growth of sales promotion is an effective marketing technique are:

 Sales promotion makes an immediate effect on sales.

 Measurement of the effectiveness of the sales promotion is easier

as against the other sales promotion methods.

 Channels of distribution are emerging as powerful entities and

demand greater use of incentives to get desired results.
 As the powerful marketing technique with a capability to
complement and supplement the advertising function, sales promotion helps
marketers to achieve a variety of objective ultimately depend upon the
extent of the desired response of the customer. Hence, various sales
methods are build around these three target groups.

Further in terms of impact desired the variety of sales promotion

Activities offered are grouped into two categories:

 Strategy aimed at producing an immediately impact

 Strategy aimed at producing a delayed impact, i.e. carrying on

impact over a period of time

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

called upon to comply with the activity over a period of time before receiving
the full benefit of the activity. Price discounts, free samples etc. are the
popular examples of the delayed impact activities.

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

is an integral part of the overall marketing function and as such cannot be
neglected. Sales promotion activates. By their nature are such that it is very
difficult to implement them on natural basis. It is therefore required that the
sales promotion activities are region based and custom build to requirement
of that part or region.
Marketing Information System Benefits :

 It helps the marketing planning by making available reliable

information on the external environment and internal realities of
company.

 It helps effective taping the marketing opportunities and

provides.

 Effective defense against emerging marketing threats.

 It helps early spotting of changing trends.

 It provides marketing intelligence to the company.

 It facilitates the developed programs for achieving goals.

 It helps the company to adjust its production and services the

needs and last of customers,

 It helps the company to control it marketing activities.

 The quality of marketing decision is decided to a treat extent

 Quantity of marketing information available to the decision

maker.
The advantage of system in handling marketing information is:

 A system provides framework.

 A system helps to convert the raw data into processes

information.

 A system assures smooth operation.

 Human Resource Department

Manpower Planning :
As the product of Gajanan Fertilizers is personal
and the organization is small, manpower planning is according to the orders
of various industries, special features of manpower planning takes in the
form of;

 Hiring the employees for a short span of time.

 Average age of worker does not exceed forty years.

 All the HR problems are solved by the Proprietor or even by the

top manager if the case is severe. In this organization any
employee can contact Manager.

 Proprietor of this unit, discuss their decisions, with; head of

different department and then displays their plans into action
with involvement of all units.

 All the department head have versatile qualities and easily

solves different problems of organization.

 This leads to smooth running of function of the unit and reduces

communication problems which usually takes place in big firms.

 Readjustment of workers at all level takes place in this

organization.
Recruitment & Selection :
Recruitment and selection procedure of
Gajanan Fertilizer is very simple, Proprietor’s decision to recruit new
employee or reallocate the existing staff. Recruitment plan of the
organization depends on the goals for that year.

Functional requirement is the criteria for recruitment and

selection procedure. This company generally follows word of mouth
procedure if they have any vacancy and selects the candidate within the
organizational background. While surplus talents are taken into
consideration apart from the designed vacancy.

Methods of recruitment also depend upon post in the

organization. All the options are tried to get best alternative, private and
word of mouth recruitment are taken into first consideration and their
references are cross verified. Management student or campus interview and
casual callers’ recruitment are very rare. It is usually held in the month of
June and seeks experience candidates.

Training & Development :

Training and development takes place departmental wise.

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

b. A part from their training video cassettes, manual knowledge

etc. are given to newcomers.
c. After proper selection procedure the candidate goes though the
training of period of two weeks at least.

d. After training procedure the candidate is again tested and then

appointed permanently and the candidate’s skills and talents are
taken into consideration.

e. Management Associates organizes certain programs for the

training this group. Usually carried out department wise which
takes place after every three years.

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

 Finance Department

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

Management of funds is an important task of a Finance Manager. In a business
undertaking or in an education institution or in a hospital or in a part of society
or elsewhere management of funds is a primary concern of a Finance Manager.

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

The details may differ but the important features are universal in nature. The
finance function occupies such a major place in the organization that cannot the
sole responsibility of one executive. The important aspects of the finance
functions have to be carried by the top management.

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

involves financial decisions. The financial Controller is basically meant for
assisting top management. He has important role of contributing to good
decisions on issue, which involves all the functional areas of the business. He
must clearly bring out financial implications of all decisions and make them
understood. A finance manager may be known as a financial Controller, Vice
President (Finance), Chief Accountant and Treasurer etc. and has a prime
responsibility keeping in view the overall outlook of the enterprises.
Major Function of Finance of the Gajanan Fertilizer Department :

 GRN (Goods Received )

 Daily Banking Transaction
 Payment of Expenses
 Bank reconciliation
 Debtor age analysis
 Interplant Funding
 Preparation of Monthly Profit & Loss Account
 Finalization of Accounts
 Look after towards taxation matters of the organization

Finance Policies :
 Objective of the finance is to increase returns on capital
employed giving maximum returns to themselves.

 This unit follows maximization of profits tether then wealth. As

the firm gives, stress to cost and returns of the company in the
financial years. Case sources of the firm is form the sales, banks
for short-term loans they are nationalize and bank of
Maharashtra, from financial institution and from share capital.

 Working capital is managed with the motive of minimizing

inventory, minimizing debtors and minimizing the cost of raw
materials and also by sufficient credit from the suppliers without
disturbing the marketing field.

 In this organization much of their attention is given to marketing

field as this department wholly and solely depends on marketing
movements.

 The accounting policies are general.

  The financial statements have been prepared under historical
cost convention in accordance with the general accepted
accordance with the general accepted accounting principles and
provisions of companies act, 1956.

 The company follows mercantile system of accounting and

recognizes significant items of income and expenditure on
accrual basis.

 The company has maintained proper records showing full

particulars including quantitative details and situation of fixed
assets.

 The fixed assets are recorded at cost of acquisition less

acquisition less accumulated depreciation.

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

INVENTORIES ARE VALUED ON THE BASIS GIVEN BELOW:

1. Raw Material at cost.

2. Stores and consumables at cost

3. Pecking material at cost.

4. Semi finished goods-at direct cost, i.e. raw material and

conversion cost, except those purchased directly which are
valued at cost.
Personnal Person /Accounts Department :

Personnel Department of Gajanan Fertilizers is flat organization a

combination of line organization and functional organization. Members in the
top management. In which some are active, meetings. Frequency of meeting
depends upon on the issues emerging in the organization.

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

is very vast it starts with new strategy formation to appoint of new employee
based on the past data and information of MDO.
They are involved in making new strategies and innovations, which are
flowed downward.

Like the quality of products, decentralization of decision of

innovation ort strategies does not take place in personnel department.
This group does not have and HR department because of the unit is a
proprietorship as such as the top proprietor takes care of any eventuality.
 Suggestions

 For that the Aggressive marketing should be done for the

products.

 Training and development session should be taken for

employees of the firm.

 An employee must be able to work under any condition.

 Conclusion

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

factory and the manpower. Employed with GAJANAN FERTILIZERS Pvt.Ltd.
at different location.

Also as the consumer satisfaction is the prime goal of a

GAJANAN FERTILIZERS Pvt.Ltd. It cannot be achieved without giving such
kind of induction and orientation at each level.

Thus it was a learning experience from our side and will be very
thankful to all conserved personnel for their support and cooperation during
our induction period.