144 iffco

2010-11

IFFCO at a Glance

I am immensely happy to release new and updated edition of “IFFCO at a Glance" – a popular annual compilation providing key information of the Society in a concise format. Its vital information is ready reckoner of statistical data to IFFCO officials and visitors.

Important information in International Units is also available under the chapter “Information for International Guests”.

With Best Wishes

(Dr. U.S. AWASTHI) Managing Director

FOREWORD

I N D E XS. No Chapters Page No.

1. IFFCO In Brief 1-12

2. IFFCO Plants and Performance 13-36

3. Marketing and Sales Performance 37-50

4. Financial Performance 51-60

5. Human Resources,CSR, Bio/Water Soluble Fert. 61-74

6. Information and Communication Technology 75-80

7. Awards received by IFFCO 81-84

8. Investments by IFFCO 85-92

9. Visionary Fruits 93-120

10. Vision 2015 121-128

11. Information for International Guests 129-138

1

IFFCO IN BrIEF

IFFCO SADAN

2

OrIGIN OF IFFCO

Till mid sixties cooperatives in India had no production ►facility despite marketing nearly 70% of fertilisers.

IFFCO was established as the farmers’ own initiative in ►Cooperative Sector on 3rd Nov. 1967 with the proposed plants at Kalol & Kandla.

With the enactment of Multi State Co-operative Societies ►Act 2002, IFFCO is deemed to be registered as a Multi State Co-operative Society. The Society is fully owned by Cooperatives.

3

PrODUCTION CAPACITY

(As on March 2011)

Largest producer of fertilisers in the country ►

No. of Plant Locations : Five ►

Installed Annual Capacity (’000 MT) ►

UREA - 4242.2 ●NPK/DAP - 4335.4 ●TOTAL ‘N’ - 2628.2 ●TOTAL ‘P ● 2O5’ - 1712.8WSF - 15.0 ●

Contributed about 21.5% to the total ‘N’ 29.6% to the total ►“P2O5” produced in the country during the year 2010-11

4

SHArE CAPITAL

(As on 31st March 2011)

(Rs in Crore)

Authorised Share Capital : 1000.00

Subscribed & Paid up Caital : 425.95

(Entire Share Capital wholly owned by Cooperatives)

5

GrOWTH OF MEMBEr SOCIETIES (As on 31st March)

6

CUMULATIVE PrODUCTION TILL DATE

(In Lakh MT) (As on 31st March 2011) UNIT PRODUCT PRODUCTION KALOL UREA 156.35 PHULPUR - I UREA 162.89 PHULPUR - II UREA 117.18 AONLA - I UREA 194.33 AONLA - II UREA 128.22 TOTAL UREA 758.97 KANDLA NPK 291.45 DAP 165.28 PARADEEP NP 33.17 DAP 27.97 TOTAL NPK/DAP 517.87 TOTAL FERTS. 1276.84 NUTRIENTS ‘N’ 420.69 ‘P2O5’ 181.28

7

CUMULATIVE ACHIEVEMENTS TILL DATE

(As on 31st March 2011)

FERTILISER PRODUCTION 1276.84 Lakh MT

FERTILISER SALE 1482.69 Lakh MT

TURNOVER Rs. 1,64,542 Crore

PROFIT BEFORE TAX Rs. 8,465 Crore

PROFIT AFTER TAX Rs. 6,547 Crore

CONTRIBUTION TO EXCHEQUER Rs. 9,602 Crore

8

HIGHLIGHTS OF 2010-11

Highest Production of Fertilisers 85.83 lakh MT * (Previous best 81.98 lakh MT in 2009-10)

Highest Production of Urea 44.02 lakh MT (Previous best 43.24 lakh MT in 2009-10)

Highest Production of NP/NPK/DAP 41.81 lakh MT * (Previous best 38.74 lakh MT in 2009-10)

Highest Sales of Fertilisers 125.88 lakh MT ** (Previous best 118.27 lakh MT in 2009-10)

Highest Sale of Urea 68.23 lakh MT (Previous best 63.35 lakh MT in 2009-10)

Highest Sales of NP/NPK/DAP 57.65 lakh MT ** (Previous best 54.92 lakh MT in 2009-10)

* Includes 2385 tonne of Urea Phosphate at Kandla Unit** Includes 3873 tonne of Water soluble fertilisers

9


Highest Profit Before Tax Rs 1025.78 Crore (Previous best Rs. 807.09 crore in 2002-03)Highest Profit After Tax Rs. 791.49 Crore (Previous best Rs. 557.21 crore in 2002-03)Sales Turnover Rs. 21195.16 Crore (Best Rs 32933 crore in 2008-09)Highest Plant Productivity 1710 MT/Employee (Previous best 1669 MT/Employee in 2005-06)Highest Marketing Productivity 8622 MT/Employee (Previous best 7885 MT/Employee in 2009-10)Lowest Composite Energy Consumption 5.814 Gcal/MT Of Urea (Previous lowest 5.832 Gcal/MT of Urea in 2009-10)Highest Fertiliser Despatches 126.55 lakh MT (Previous best 117.66 lakh MT in 2009-10)

10

GrOWTH IN PrODUCTION CAPACITIES

('000 MT)

As on Date UREA NPK/DAP Total Ferts.Jan. ’75 - 415.6 415.6Apr. ’75 396.0 415.6 811.6Mar. ’81 891.0 415.6 1306.6Sep. ’81 891.0 881.3 1772.3Jul. ’88 1617.0 881.3 2498.3Dec. ’96 2343.0 881.3 3224.3Aug. ’97 2491.5 881.3 3372.8Dec. ’97 3217.5 881.3 4098.8Aug. ’99 3217.5 1600.1 4817.6Apr. ’01 3689.4 1973.6 5663.0Apr. ’02 3689.4 2191.1 5880.5Apr. ’04 3689.4 2415.4 6104.8Oct. ’05 3689.4 4335.4 8024.8Dec. ’08 4242.2 4335.4 8577.6Apr. ’11 4242.2 4350.4* 8592.6

* WSF = 15000 MT per annum Contd...

11


(Lakh MT)

13

IFFCO PLANTS & PErFOrMANCE

15

KALOL UNIT

YEAR OF COMMISSIONING : 1975

INVESTMENT : Rs. 71.23 Crore

YEAR OF EXPANSION : 1997

INVESTMENT : Rs. 149.70 Crore

PRODUCT CAPACITY TECHNOLOGY TPD TPAAMMONIA 1100 3,63,000 M.W. KELLOG & HTAS

UREA 1650 5,44,500 STAMICARBON and H & G

‘N’ 759 2,50,470

16

KANDLA UNIT

YEAR OF COMMISSIONING : 1975INVESTMENT : Rs. 24.26 CroreYEAR OF FIRST EXPANSION : 1981INVESTMENT : Rs. 28.60 CroreYEAR OF SECOND EXPANSION : 1999INVESTMENT : Rs. 205.30 Crore

PRODUCT CAPACITY TECHNOLOGY TPA

‘ P2O5’ 9,10,000 FOUR STREAMS (A,B,C & D) BASED ON TVA SLURRY GRANULATION PROCESS. TWO STREAMS (E & F) BASED ON AZF PIPE REACTOR TECHNOLOGY.‘N’ 3,51,540

17

PHULPUr UNIT


INVESTMENT : Rs. 205.2 Crore (Phulpur - I)


INVESTMENT : Rs.1190 Crore (Phulpur - II)

YEAR OF DEBOTTLENECKING : 2008

INVESTMENT : Rs.185.3 Crore

PRODUCT CAPACITY TECHNOLOGY TPD TPAAMMONIA 2955 9,75,150 KELLOG & HTAS

UREA 5145 16,97,850 SNAMPROGETTI

‘N’ 2367 7,81,011

18

AONLA UNIT


INVESTMENT : Rs. 651.6 Crore (AONLA - I)


INVESTMENT : Rs. 954.7 Crore (AONLA - II)

YEAR OF DEBOTTLENECKING : 2008

INVESTMENT : Rs.149.2 Crore

PRODUCT CAPACITY TECHNOLOGY TPD TPAAMMONIA 3480 11,48,400 HALDOR TOPSOE

UREA 6060 19,99,800 SNAMPROGETTI

‘N’ 2788 9,19,908

19

PArADEEP UNIT

INVESTMENT : Rs. 2237 Crore

PRODUCT CAPACITY TECHNOLOGY TPA

PHOS. ACID 8,75,000 JACOBS ENG.

SULPHURIC ACID 23,10,000 LURGI GmbH

P2O5 (Fert. Grades) 8,02,800 JACOBS ENG.

N 3,25,200

POWER 2 x 55 MW

20

KALOL EXPANSION PrOJECT - II

IFFCO has envisaged setting up 13.86 Lakh MT of Urea plant at Kalol.

Project cost is likely to be about Rs. 4660 crore.

No objection certificate received from Gujarat Industrial Corporation.

Environment clearance has been received from Ministry of Environment and Forests (MoEF).

Pre Project activities have been completed.

Project activities to start after firm allocation of Gas from GOI

21

PLANT HIGHLIGHTS OF 2010-11

KALOL

Produced 6.00 lakh MT of Urea with capacity utilisation of 110%. Achieved lowest specific energy consumption of 5.7310 Gcal/MT of Urea during 2010-11.

PHULPUR

Produced the highest ever 17.71 lakh MT of Urea with capacity utilisation of 104%.

Phulpur-I and Phulpur-II produced the highest ever 7.45 LMT and 10.26 LMT of Urea, respectively, with lowest specific energy consumption of 6.6698 Gcal/MT of Urea at Phulpur-I. Specific Energy Consumption at Phulpur-II was 5.6689 Gcal/MT of Urea.

Contd...

22


AONLA

Produced the highest ever 20.31 lakh MT of Urea with capacity utilisation of 102%.

Aonla–I produced 9.88 lakh MT of Urea and operated with specific energy consumption of 5.6763 Gcal/MT of Urea. Best production was 10.00 lakh MT of Urea in 2009-10.

Aonla-II produced the highest ever 10.43 lakh MT of Urea and operated with specific energy consumption of 5.5220 Gcal/MT of Urea.

Contd...

23


KANDLA

The unit produced 25.19 lakh MT of NPK/DAP during 2010-11. Best production was 26.86 lakh MT of NPK/DAP in 2005-06. Kandla Unit also produced 2385 MT of Urea Phosphate as trial production during 2010-11

PARADEEP

Produced the highest ever 16.62 lakh MT of NP/DAP during the year 2010-11 registering a rise of 10.8 % over last year.

Paradeep Unit also produced an all time high 19 lakh MT of Sulphuric Acid and 6.56 lakh MT of Phos. Acid during 2010-11.

24

TOTAL FErTILISEr PrODUCTION

(Lakh MT)

25

PrODUCT WISE PrODUCTION PErFOrMANCE

(Lakh MT)

26

NUTrIENT WISE PrODUCTION PErFOrMANCE

(Lakh MT)

27

UNIT WISE PrODUCTION PErFOrMANCE

UNIT PLANT 2006-07 2007-08 2008-09 2009-10 2010-11

KALOL AMMONIA 3.46 3.18 3.28 3.84 3.95

UREA 5.60 5.45 5.60 6.00 6.00

PHULPUR-I AMMONIA 3.41 3.76 3.93 4.23 4.35

UREA 5.73 6.30 6.63 7.23 7.45

PHULPUR-II AMMONIA 5.06 5.20 4.76 5.84 5.89

UREA 8.83 9.24 8.41 10.00 10.26

AONLA-I AMMONIA 5.08 5.10 5.69 5.78 5.86

UREA 8.85 8.76 9.87 10.00 9.88

AONLA-II AMMONIA 5.20 5.67 5.90 5.84 5.90

UREA 8.85 9.89 10.18 10.00 10.43

TOTAL UREA 37.86 39.63 40.68 43.24 44.02

Contd...

(Lakh MT)

28

UNIT PLANT 2006-07 2007-08 2008-09 2009-10 2010-11KANDLA 10:26:26 5.72 8.41 10.41 11.91 16.10

12:32:16 11.0 6.91 5.38 4.61 8.46

DAP 8.04 4.86 2.15 7.23 0.60

NPK/DAP 24.76 20.18 17.94 23.74 25.19 *

PARADEEP NP 3.32 2.73 8.70 10.98 7.45

DAP 4.18 5.93 4.37 4.02 9.17

NP/DAP 7.50 8.66 13.06 15.00 16.62

TOTAL (KDL+PRD) 32.26 28.84 31.0 38.74 41.81

TOTAL FERTS MATERIAL 70.12 68.47 71.68 81.98 85.83

NUTRIENTS N 22.17 22.36 23.29 25.85 26.13

P2O5 11.29 9.94 9.18 11.94 12.88

* Includes Urea Phosphate

(Lakh MT)

UNIT WISE PrODUCTION PErFOrMANCE

29

STrEAM DAYS ACHIEVED

UNIT PLANT 2006-07 2007-08 2008-09 2009-10 2010-11KALOL AMMONIA 327 315 336 344 354 UREA 328 320 331 345 348PHULPUR-I AMMONIA 324 341 328 346 359 UREA 337 332 319 331 353PHULPUR-II AMMONIA 316 329 293 344 329 UREA-I 309 339 299 342 322 UREA-II 308 322 301 346 327AONLA-I AMMONIA 321 313 338 347 333 UREA-I 311 285 335 337 327 UREA-II 325 307 343 343 313AONLA-II AMMONIA 326 334 346 322 344 UREA-I 313 330 331 318 345 UREA-II 324 322 334 316 350

Contd...

30


UNIT PLANT 2006-07 2007-08 2008-09 2009-10 2010-11

KANDLA TRAIN A 225 242 206 259 312

TRAIN B 303 249 203 279 311

TRAIN C 302 248 218 306 302

TRAIN D 299 239 194 281 296

TRAIN E 301 225 206 288 300

TRAIN F 293 235 190 293 291

AVERAGE 287 240 @ 203 @ 286 302

@ Low due to shortage of raw material

Contd...

31


UNIT PLANT 2006-07 2007-08 2008-09 2009-10 2010-11

PARADEEP

SAP TRAIN - I 197 268 248 316 334

TRAIN - II 180 221 271 316 291

PAP TRAIN - A 308 275 306 319 322

NP/DAP TRAIN A 97 165 232 261 268

TRAIN B 96 107 218 263 263

TRAIN C 190 151 220 262 278

AVERAGE 128 141 223 262 270

32

CAPACITY UTILISATION(As Percentage)

UNIT PRODUCT 2006-07 2007-08 2008-09@ 2009-10@ 2010-11@

KALOL UREA 103 100 103 110 110

PHULPUR-I UREA 104 114 109 104 107

PHULPUR-II UREA 102 107 93 100 103

AONLA-I UREA 102 101 106 100 99

AONLA-II UREA 102 114 109 100 104

KANDLA P2O5 96 73 60 87 79

PARADEEP P2O5 32 41 47 50 71

TOTAL N 93 94 94 98 99

P2O5 66 58 53 70 75

@ As per revamped capacity with effective dates.

33

SPECIFIC ENErGY CONSUMPTION OF UrEA PLANTS

ENERGY (Gcal/MT Urea)

PLANT 2006-07 2007-08 2008-09 2009-10 2010-11

KALOL 5.981 5.956 5.949 5.796 5.731

PHULPUR - I 7.098 6.862 6.895 6.687 6.670

PHULPUR - II 5.788 5.833 5.988 5.666 5.669

AONLA - I 5.673 5.706 5.697 5.690 5.676

AONLA - II 5.510 5.517 5.522 5.544 5.522

Composite Energy Consumption

5.923 5.907 5.943 5.832 5.814

Contd...

34

SPECIFIC ENErGY CONSUMPTION OF PHOSPHATIC PLANTS

ENERGY (Gcal/MT P2O5 )

2006-07 2007-08 2008-09 2009-10 2010-11

KANDLA 0.224 0.275 0.304 0.244 0.288

PARADEEP 3.164 2.558 2.111 1.784 1.104

35

COMMITMENT TO BETTEr ENVIrONMENT & QUALITY MANAGEMENT

All IFFCO Units and townships have attractive landscape surrounded by thousands of trees.

IFFCO is committed to improve safety, health and environment in and around our plants in line with international norms.

Kalol, Phulpur, Aonla and Kandla Units hold ISO-14001 Certificate for Environment Management System.

Kalol, Phulpur and Aonla Units have received ISO-9001 for Quality Management

37

MArKETING AND SALES

39

HIGHEST EVEr SALE

Marketing Division of IFFCO achieved highest ever sale of 125.88 lakh MT of fertilisers during 2010-11. Previous best was 118.27 lakh MT in 2009-10.

Society achieved highest ever sale of 68.23 lakh MT of Urea and 57.65 lakh MT of NP/NPK/DAP (includes 3873 MT of Water soluble fertilisers) during 2010-11. Previous best sale was 63.35 lakh MT of Urea and 54.92 lakh MT of NP/NPK/DAP during 2009-10.

40

MArKETING TErrITOrIES OF IFFCO

41

MArKETING CHANNELS

Distribution of fertilisers mainly through the Cooperative System:

State level Apex Cooperative Marketing Federation acts as wholesaler

Direct supplies to Societies in some States

IFFCO-NCDC Cooperative Societies

Small quantities to institutional agencies like Agro Industries Corporation etc

157 IFFCO Farmers Service Centres

42

DISTrIBUTION & WArEHOUSING

TRANSPORTATION

Both by Rail (91%) and Road (09%)

WAREHOUSING

Federations & Cooperative Godowns

Central Warehousing Corporation (CWC) and

State Warehousing Corporation (SWC)

43

TOTAL SALE OF FErTILISErS(Lakh MT)

44

SALES PErFOrMANCE(Lakh MT)

45

(In Lakh MT)

SALES PErFOrMANCE

PRODUCT 2006-07 2007-08 2008-09 2009-10 2010-11UREA OWN 38.81 39.66 40.71 43.22 43.74 IMPORTS 13.60 14.63 17.98 20.13 24.49 TOTAL 52.41 54.29 58.69 63.35 68.2320:20:0 1.97 4.05 8.20 11.38 7.5110:26:26 5.25 9.31 10.76 11.95 17.16 #12:32:16 9.80 8.84 5.51 4.62 8.38NP/NPK TOTAL 17.02 22.20 24.47 27.94 33.05DAP OWN 9.89 14.23 6.63 11.13 9.85 IMPORTS 6.57 2.36 21.91 15.84 14.71 TOTAL DAP 16.46 16.59 28.54 26.98 24.56MOP 0.21 0.16 0.88 0.00 0.00NP/NPK/DAP/MOP TOTAL 33.69 38.95 53.89 54.92 57.65 *TOTAL FERTS. 86.10 93.24 112.58 118.27 125.88 *

* Includes 3873 MT of water soluble fertilisers# Includes 1.32 LMT Imported NPK

46

SALES DUrING KHArIF SEASON(Lakh MT)

47

SALES DUrING KHArIF SEASON

PRODUCT 2006 2007 2008 2009 2010

UREA 23.34 23.34 24.81 27.70 30.02

NP 0.91 2.81 3.75 4.57 3.34

NPK 10:26:26 3.02 3.78 6.49 3.12 7.95

NPK 12:32:16 3.94 5.69 2.96 1.48 5.97

NP/NPK 7.87 12.28 13.20 9.17 17.26

DAP/MAP 7.23 7.82 15.15 18.18 11.49

MOP 0.00 0.00 0.88 0.00 0.00

TOTAL NPK/DAP 15.10 20.10 29.22 27.35 28.79

TOTAL FERTS. 38.44 43.44 54.03 55.05 58.81

(In Lakh MT)

48

SALES DUrING rABI SEASON(In Lakh MT)

49

SALES DUrING rABI SEASON

PRODUCT 2006-07 2007-08 2008-09 2009-10 2010-11UREA 29.07 30.95 33.89 35.65 38.21

NP 1.06 1.24 4.45 6.81 4.17

NPK 10:26:26 2.23 5.52 4.27 8.83 9.21 *

NPK 12:32:16 5.86 3.15 2.55 3.14 2.41

NP/NPK TOTAL 9.15 9.91 11.27 18.78 15.79

DAP/MAP 9.23 8.92 13.39 8.79 13.07

MOP 0.21 0.02 0.00 0.00 0.00

TOTAL

NPK/DAP 18.59 18.85 24.66 27.57 28.86

TOTAL FERTS. 47.66 49.80 58.55 63.22 67.07 #

# Includes water soluble fertilisers* Includes 1.32 LMT Imported NPK

(In Lakh MT)

50

HANDLING OF IMPOrTED FErTILISErS

Particulars 2006-07 2007-08 2008-09 2009-10 2010-11

OMIFCO UREA 9.10 9.76 9.55 10.19 10.02No. of VESSELS 32 32 30 32 31

UREA (GOI A/C) 4.56 5.36 7.82 10.33 14.49No. of VESSELS 12 19 26 30 30

DAP 6.78 2.19 21.98 15.88 14.75No. of VESSELS 15 6 66 39 33

MAP/NPK 0.38 0.0 0.50 0.0 1.32No. of VESSELS 3 0 7 0 4

TOTAL Fertilisers 20.82 17.31 39.85 36.40 40.58No. of VESSELS 62 57 129 101 98

Qty. (Lakh MT)

51

FINANCIAL PErFOrMANCE

53

FINANCIAL PErFOrMANCE

2006-07 2007-08 2008-09 2009-10 2010-11

SALES TURNOVER 10330.11 12162.82 32933.30 16808.57 21195.16

PROFIT BEFORE TAX 251.25 380.52 441.95 567.28 1025.78

PROFIT AFTER TAX 175.02 257.59 360.01 401.10 791.49

SHARE CAPITAL 422.92 423.93 426.28 426.24 425.95

RESERVES AND 3218.92 3264.73 3532.59 3844.26 4542.09 SURPLUS

NETWORTH 3641.84 3688.66 3958.87 4270.50 4968.04

NET ASSETS 10661.98 10998.49 17303.77 16319.45 16737.31 EMPLOYED

INVESTMENTS – JVs/ 740.46 770.57 914.00 892.33 1169.91 ASSOCIATES/OTHERS

(In Rs. Crore)

54

(In Rs. Crore)

PrOFIT BEFOrE TAX (PBT)

55

PrOFIT AFTEr TAX (PAT)(In Rs. Crore)

56

(In Rs. Crore)

TUrNOVEr

57

(In Rs. Crore)

NETWOrTH

58

CrEDIT rATINGS ASSIGNED TO IFFCO

CRISIL Ratings :-

AA-(outlook stable) rating on IFFCO’s Long Term Borrowing Programme. This rating indicates high degree of safety with regard to timely payment of interest and principal on the instrument.

“P1+” rating to IFFCO’s Rs. 100 Crore Commercial Paper Programme. This rating indicates that the degree of safety with regard to timely payment of interest and principal on the instrument is Very Strong.

Governance and Value Creation (GVC) rating at “GVC Level 2”. This rating indicates that the capability of the Society with respect to wealth creation for all its stakeholders, while adopting sound corporate governance practices, is high.

Contd...

59

CrEDIT rATINGS ASSIGNED TO IFFCO

FITCH Ratings :- Short Term Rating of “F1+ (Ind)” to IFFCO’s working

capital/short term borrowings. This rating indicates that the degree of safety with regards to timely payment of interest and principal on the instrument is very strong.

Long Term Rating of “AA (Ind) (outlook stable)” to the Long Term Debt Programme of IFFCO. This rating indicates high degree of safety with regard to timely payment of interest and principal on the instrument.

CARE Ratings :- PR1+ (PR one plus) rating to IFFCO’s working capital

facilities/ Short Term Loans having tenure upto one year. CARE ‘AA’ (Double A) rating to External Commercial Borrowings

and other existing long term borrowings having tenure of over one year.

61

HUMAN rESOUrCES,

COrPOrATE SOCIAL rESPONSIBILITIES AND

BIO / WATEr SOLUBLE FErTS.

62

PLANT PrODUCTIVITY PEr EMPLOYEE (MT)

(Production Units)

63

(Marketing Division)

SALE PrODUCTIVITY PEr EMPLOYEE (MT)

64

COrPOrATE SOCIAL rESPONSIBILITIES

Corporate Social Responsibility is our commitment towards sustainable economic development, working with employees and their families, the local community and society at large to improve their quality of life.

Society has undertaken activities in the areas of community development, environment protection and horticulture, health care, medical facilities and literacy enhancement/empowerment programme.

IFFCO spent Rs. 47.04 crore on various social development activities during 2010-11. It was Rs. 45.92 crore during 2009-10.

65

SErVICE TO FArMErS

Agricultural Extension and fertiliser use promotion programmes are an integral part of the marketing activity. Programmes are conducted through Area/State/Zonal offices under able guidance of agricultural scientists.

Programmes undertaken are :

Balanced Fertilisation programmes

Adoption of villages for all round socio-economic development

Farmers visit to various agricultural institutes and research farms

Farmers’ Meetings, Field Days and Crop Seminars

Static/Mobile Soil Testing Laboratories with Audio-visual aidsContd...

66

SErVICE TO FArMErS

PROGRAMME 2006-07 2007-08 2008-09 2009-10 2010-11

TWO PLOT 763 1006 806 881 843 DEMONSTRATION

FARMERS’ MEETINGS 3208 3433 3450 3586 3341

FIELD DAYS 714 779 807 825 800

CROP SEMINARS 151 169 124 153 155

CRITICAL INPUT 6011 6519 6842 8125 10929 PACKAGES

SOIL TESTING 652 530 542 497 484 CAMPAIGNS

Contd...

(Number)

67

PROGRAMME 2006-07 2007-08 2008-09 2009-10 2010-11

VETERINARY 120 165 121 119 140 CAMPAIGNS

MEDICAL CHECKUP 66 108 10 114 130

SALES POINT 989 1111 1070 894 824 PERSONNEL TRAINING

FARMERS 4269 5167 5912 3711 5131 TRAINING AND VISITS (PP)

VILLAGES ADOPTED 402 431 438 434 411

PP – Persons participated

Contd...

(Number)

SErVICE TO FArMErS

68

SErVICE TO FArMErS

ITEM 2006-07 2007-08 2008-09 2009-10 2010-11

GRANTS TO CORDET 172.20 186.47 225.16 236.54 251.75

DEMONSTRATION 215.50 252.22 249.01 347.67 340.88 EXPENSES

BENEFIT TO FARMERS 1085.56 1010.67 2036.60 1793.34 1283.62

TRAINING EXPENSES 184.73 183.26 192.13 164.97 217.34

OTHER PROM. 364.70 586.22 810.52 567.97 890.08 PROG/CROP FILMS/IRDP ETC.

SANKAT HARAN 798.00 822.00 880.00 948.00 1248.00 BIMA YOJANA

TOTAL EXPENDITURE 2820.69 3040.84 4393.42 4058.49 4231.67

Contd...

(Rs. In Lakh)

69

SErVICE TO FArMErS

Other Social Activities/Development Programmes include:

♦ Supply of fodder in drought prone areas

♦ Veterinary Checkup and Distribution of Medicines

♦ Human Health Checkup and Distribution of Medicines

♦ Providing drinking water facilities

♦ Assistance to School / School children

♦ Watershed development projects

70

COOPErATIVE rUrAL DEVELOPMENT TrUST (COrDET)

PROMOTED BY IFFCO

LOCATIONS

KALOL (GUJARAT)

PHULPUR (U.P.)

KANDLA (GUJARAT)

ACTIVITIES OF CORDET

Farmers’ Training

Soil Testing

Production of Bio Fertilisers

Demonstration Farming

Seed Multiplication

71

PrODUCTION OF BIO - FErTILISErS(Qty. in MT)

CORDET - PHULPUR & KALOL (Annual Capacity 325 MT & 200 MT)*

STRAIN 2006-07 2007-08 2008-09 2009-10 2010-11

Rhizobium 9.97 17.25 11.70 14.54 17.14

Azotobacter 158.06 168.82 224.76 316.48 361.61

PSB 204.00 211.01 284.08 368.38 431.65

Azospirillium 3.65 12.49 7.03 9.36 13.59

Acetobacter 18.59 5.59 2.35 10.52 14.24

Total Production 394.27 415.16 529.91 719.28 838.23

Capacity Utilisation (%) 164.28 172.98 220.80 137.01 159.66

* With effect from 01.04.2009, previously it was 240 MT

72

SALE OF BIO - FErTILISErS

STRAIN 2006-07 2007-08 2008-09 2009-10 2010-11

Rhizobium 9.99 17.66 11.60 14.52 17.22

Azotobacter 141.65 173.90 235.61 302.71 364.91

PSB 206.20 219.49 283.05 353.35 441.34

Azospirillium 2.37 11.30 8.80 9.94 13.45

Acetobacter 14.93 9.87 2.64 10.52 14.16

Total Sale 375.14 432.22 541.10 691.04 851.08

(Qty. in MT)

73

(Qty. in Litre)

PrODUCTION & SALE OF LIQUID BIO - FErTILISErS

STRAIN

PRODUCTION 2009-10 2010-11

Azotobacter 3637.75 8081.25

PSB 3941.25 7984.00

TOTAL 7579.00 16065.25

Capacity Utilisation 124.5% 263.4%

SALES

Azotobacter 1910.0 7603.50

PSB 2167.75 7759.25

TOTAL 4077.75 15362.75

Installed Annual Capacity = 5000 Ltr. (Phulpur) + 1100 Ltr. (Kalol) = 6100 Ltr./Annum

74

WATEr SOLUBLE FErTILISErS

Increase in area under drip irrigation

Demand for 100% water soluble fertilisers are increasing in the country

The present demand is mostly being met by imports

IFFCO successfully produced 165 MT, 470 MT and 2385 MT of Urea Phosphate during the year 2008-09, 2009-10 and 2010-11,respectively, at its Kandla Unit

Commercial production of Urea Phosphate at Kandla Unit has started from April 2011

Society is likely to produce 15000 MT of Urea Phosphate during 2011-12

75

INFOrMATION AND COMMUNICATION TECHNOLOGY

76

MAJOr ICT ACTIVITIES

Wide Area Network (WAN) upto Area Office level with Corporate Server at Delhi.

Virtual Private Network (VPN) connecting all Offices of IFFCO.

IP Telephones available upto Area Office. Many phones have video facility.

Video conferencing extensively used nationally and internationally

Among first Corporate to successfully implement e-procurement based on Public Key Infrastructure, Digital Certificate under legal framework of IT ACT 2000.

Integrated Corporate enterprise wide Applications in all Areas like HR, Finance, Marketing, Transportation, Materials, Maintenance, Production etc.

Biometrics Attendance Recording System introduced in Paradeep and Aonla Units.

Contd...

77

MAJOr ICT ACTIVITIES

All Software developed by in-house expertise, often consulted by other organizations.

HRMS, an in-house developed ERP, having 25 applications for better Corporate Governance and internal workflow.

Intranet applications on Rules & Procedures, News, Weather, Crop growing periods, Notice Board, Technical Papers, Telephone, Blood Group, Software Project Monitoring, Hardware Complaints and Annual Confidential Reports etc.

Multilingual Agri Information Portal to extend benefit of ICT to Cooperatives and farmers. More than 100 touch screen based Kiosks installed in 16 states.

Free Multilingual e-mail facilities to Cooperatives.

Work flow applications implemented to reduce paper work.Contd...

78

ICT ACTIVITIES DUrING 2010-2011

New infrastructure was set up at Corporate Office

Completed consolidation of HRMS at Corporate Office

Setting up of Disaster Recovery (DR) Site at Hyderabad completed

MIS Portal, HRMS, Plant Maintenance Management System, Product Dispatch System etc. further upgraded.

IFFCO has also provided software support to ITGI, ICPL, IKSL, IKSEZ and OMIFCO.

Contd...

79

IP BASED VIDEO CONFErENCING SETUP

DPC Conducted through Video ConferencingContd...

Multi-site VC Unit at Corporate office, New Delhi

80

IFFCO WIDE ArEA NETWOrK (WAN)

81

AWArDS rECEIVED BY IFFCO

82

MAJOr AWArDS rECEIVED DUrING 2010-11

Kalol Unit (35 years old) won the prestigious Fertiliser Association of India (FAI) awards for “Best overall Performance of an operating Fertiliser Unit for Nitrogen (Ammonia & Urea)” for the year 2009-10. Kalol was also awarded “Certification of Appreciation” by National Safety Council of India – Safety Award -2009 in recognition of Appreciable achievement in occupational Safety & Health during the assessment period of three year from 2006 to 2008.

Kalol Unit conferred with the BS OHSAS 18001:2007 accreditation in recognition of the Management Systems for Health Safety and Environments, in addition to ISO 9001:2008 and ISO 14001:2004. Kalol Unit also received many awards from Gujarat Horticulture Association for remarkable contribution towards Green Environment in Plant and Township.

Contd...

83


Phulpur Unit bagged the First Prize for “Energy Conservation” for the year 2009-10 in Fertiliser Sector and the “National Award for Prevention of Pollution” from Ministry of Environment & Forest. Phulpur Unit was declared runner – up for FAI “Best Overall Performance Award” for 2009-10.

Aonla Unit bagged the “National Safety Award” constituted by Ministry of Labour and Employment for the year 2008-09. Aonla unit also bagged Safety Health and Environment (SHE) award from International Fertiliser Association (IFA) and CII Environment Best Practices Award 2011, for the installation of CDR Unit. Aonla Unit also bagged Gold in Greentech Environmental Excellence Award 2010.

Contd...

84


Paradeep Unit made its presence in the list of recipients of Awards by receiving “Certificate of Merit” for the Energy Conservation for the year 2009-10. Paradeep Unit also received the Silver in Greentech Environmental Excellence Award 2010.

IT, Finance & PR Departments were also bestowed with various industry awards and accolades for their superb performance and innovative ideas. IFFCO was also awarded by FAI for Best Work done on transfer of improved Farm Technology.

85

INVESTMENTS BY IFFCO

86

INVESTMENTS OUTSIDE IFFCO(As on 31.03.2011)

Indian Potash Ltd (IPL)

IFFCO’s Equity : Rs. 2.68 Crore Percentage of Equity held : 34% Activity : Marketing of Potash and Imported Fertilisers

Industries Chimiques du Senegal (ICS)

IFFCO’s Equity : Rs. 80.37 Crore Percentage of Equity held : 18.54 % Plant Site : Darou, Senegal Products : Rock Phosphate, Phosphoric Acid and NPK Fertilisers

Contd...

87


IFFCO - TOKIO General Insurance Company Ltd. (ITGI)

IFFCO’s Equity Investment : Rs. 303.78 Crore Percentage of Equity held : 72.64% Activity : General Insurance

Oman India Fertiliser Company (OMIFCO)

IFFCO’s Equity : Rs. 329.08 Crore Percentage of Equity held : 25% Plant Site : Sur, Oman Products : Ammonia, Urea

Contd...

88


National Commodity and Derivative Exchange (NCDEX) IFFCO’s Equity Investment : Rs. 13.50 Crore Percentage of Equity held : 8.88.% Activity : On Line Multi Commodity Exchange

National Collateral Management Services Ltd. (NCMSL) IFFCO’s Equity : Rs. 4 Crore Percentage of Equity held : 13.33% Activity : Collateral Risk Management Services

IFFCO Chhattisgarh Power Ltd Project Cost (Estimated) : Rs. 7544 Crore IFFCO’s Equity investment : Rs. 66.60 Crore Debt : Equity Ratio : 70 : 30 IFFCO Equity : 74% Activity : Power Generation (1320 MW)

Contd...

89


Kisan International Trading FZE (KIT) Investment : Rs. 11 Crore* IFFCO’s Equity: Rs. 1.20 Crore Location : Dubai Activity : Special purpose vehicle (SPV) for shipping, logistics and investments in new overseas Joint Ventures. * Includes Rs. 9.80 crore towards 9 bonus shares received during 2007-08

Jordan India Fertiliser Company (JIFCO) Project Cost : USD 671 Million IFFCO Equity : 52% (IFFCO 27% + KIT 25%) (USD 56.33 Million paid) Activity : Phos. Acid Plant (1500 MTPD) Production expected by 1st Quarter of 2013

IFFCO Kisan Sanchar Ltd. (IKSL) Paid up Share Capital : Rs. 5 Crore IFFCO Equity : Rs. 3.65 Crore % of Equity held : 72.99 % Activity : Rural Telecom related Services

Contd...

90


LEGEND INTERNATIONAL HOLDING AUSTRALIA

ACTIVITIES : Rock Mining and Phosphates Project

ARIA CHEMICALS (ORISSA) LTD.

IFFCO EQUITY : 45% IFFCO INVESTMENT : 0.45 crore ACTIVITY : Aluminium Fluoride facility at Paradeep for production of 20000 MT Aluminium Fluoride

IFFCO Kisan SEZ Ltd.

Project Cost : Rs. 630 Crore IFFCO Equity : Rs. 48.75 Crore Activity : Setting up Multi product “IFFCO Kisan SEZ” at Nellore (AP)

Contd...

91


Others

IFFCO Kisan Bazar & Logistics Ltd. : Rs. 15 Crore

Universal Commodity Exch. Ltd. : Rs. 15 Crore

Indian Farm Forestry Development Cooperative (IFFDC) : Rs. 12.54 Crore

Grow Max Agri. Corp : Rs. 2.34 Crore

Maharashtra State Coop. Bank Ltd. : Rs. 0.10 Crore

92

INFrASTrUCTUrAL INVESTMENTS

Project/Location Objective Project Cost

Jetty at To handle liquid Raw Rs. 24 Crore Kandla Unit Materials

Barge Jetty at To handle Solid RMs Rs. 35 Crore Kandla Unit * and Imported Ferts.

Naphtha tank 100 tank wagons for Rs. 15 Crore Wagons movement of Naphtha to Phulpur

Railway line/siding * Speedy Movement Rs. 46.5 Crore of Fertilisers

Marine Cargo Transportation of Rs. 40 Crore Terminal at Fertilisers Paradeep *

* Work in progress

93

VISIONArY FrUITS

94

IFFCO’s GrOWTH

As on Production ('000 MT)

Sales ('000 MT)

Turnover (Rs. crore)

Net Worth (Rs. crore)

01.04.1995 (Before)

2935.6 3216.3 1932.9 1219.0

31.03.2000 (During Vision 2000)

5275.6 5172.1 4688.9 2386.7

31.03.2005 (During Mission 2005)

6153.7 6464.5 7397.0 3301.2

31.03.2010 (During Vision 2010)

8197.8 11826.5 16808.6 4270.5

31.03.2015* (During Vision 2015)Achievements During 2010-11

15000 15000 30000 7500.0

8583.4 12587.7 21195.16 4968.0

* Targets

95

INVESTMENT FOr CAPACITY INCrEASE

In the year 1993, IFFCO initiated major Expansion Projects for all the four operating units by setting up new plants or by way of expansion of existing plants

By the year 1999, all the four projects of IFFCO were completed at a cost of Rs. 2500 crore without any cost and time overrun

Investment to the equity capital were made from internal resources of the Society

Production capacity of the Society was doubled

Contd...

96


Aonla project completed ahead of schedule in Dec 1996 at a cost of Rs. 955 crore. Commercial production started from 25.12.1996

Kalol Ammonia and Urea Plants Revamped in August 1997 at an investment of Rs. 149.7 crore

Phulpur Expansion Project completed in December 1997 within 32 months from the zero date at an investment of Rs. 1190 crore. Commercial Production started from 22.12.1997

Kandla Expansion completed at a Project cost of Rs. 205.3 crore and commercial production started on 5.8.1999, 77 days ahead of schedule

Contd...

97


► Energy Saving Project (ESP) implemented in all Ammonia and Urea Plants at Kalol, Phulpur and Aonla units with total investment of Rs. 412 Crore (USD 90 Million).

► Capacity Enhancement Project (CEP) increased Urea capacity to 42.42 lakh tonne from 36.89 lakh tonne.

► Acquired NPK/DAP Plant of 2 Million MTPA at Paradeep alongwith Phosphoric Acid and Sulphuric Acid plant at a cost of USD 505 Million in October 2005.

98

INDUSTrIES CHIMIQUES DU SENEGAL (ICS)

ICS successfully recapitalised and restructured by IFFCO Consortium in April 2008.

IFFCO Consortium has taken over Management control of ICS Senegal.

Major rehabilitation work of ICS plant facilities and Rock phosphate mines for improving the production performance has been taken up to achieve full Capacity Utilisation.

ICS exported 3.10 lakh MT of Phos. Acid in terms of P2O5 to IFFCO during the year 2010 as against 2.57 LMT during 2009.

99

INDIAN POTASH LIMITED (IPL)

IPL is primarily engaged in trading of imported Potassic and Non-Potassic Fertilisers.

During 2009-10, IPL achieved sales turnover of Rs. 17004 crore with PAT of Rs. 184 crore.

IFFCO received a dividend of Rs. 0.97 crore from IPL for the year 2009-10.

100

IFFCO-TOKIO GENErAL INSUrANCE CO. LTD. (ITGI)

■ Diversified into General Insurance due to● Tremendous potential available● To serve the insurance needs of farmers● IFFCO’s Rural Brand Equity● Low gestation period

■ The scope includes a mix of following:● Rural Insurance Business● Fire Insurance Business● Marine Insurance Business● Miscellaneous Insurance Business

■ Operations began in Dec. 2000Contd...

101

OPErATIONS OF ITGI

■ Gross provisional premium in 2010-11 was Rs. 1988.86 crore

■ Cooperative Institutions like State, District and Urban Cooperative Banks, Cotton Cooperatives, Dairy Cooperatives and Sugar Cooperatives are used for selling ITGI products

■ To strengthen Cooperative Channels, ITGI is recruiting Agents from Cooperative Societies so that the benefits of Insurance reaches the village populace.

■ Cooperative Agents are trained and all the expenses are borne by ITGI. Society gets an additional income by way of Commission.

Contd...

102

SANKAT HArAN BIMA YOJANA BY ITGI

■ Linked with purchase of each bag of IFFCO/IPL fertiliser from Cooperative Society/FSC.

■ Maximum liability limited to Rs. 1 lakh irrespective of the number of bags purchased

■ Cash receipt is evidence of insurance cover

■ Policy provided insurance cover to 93.2 lakh farmers

■ Disbursed claims to the tune of Rs. 64.91 crore since September 2001

Contd...

103

INSUrANCE PrODUCTS OF ITGI

Apart from meeting general insurance requirements of rural area like policies for Home, Shops, Tractors, two Wheelers etc., ITGI has also launched :

Barish Bima Yojna

Mausam Bima Yojna

Kisan Suvidha Bima Yojna

Mahila Suraksha Bima Yojna

Janta Bima Yojna

Jansuraksha Bima Yojna

Janswasthaya Bima Yojna

Sankat Haran Bima Yojna

104

IFFCO KISAN SANCHAr LTD. (IKSL)

► IKSL incorporated in April 2007 with objective to use Information Communication Technology to empower farmers in rural India and to strengthen the cooperative network in the country.

► IKSL received the certificate of Incorporation on 12.04.2007 and certificate for commencement of Business on 13.06.2007.

► As on 31.03.2011, paid up share capital of IKSL was Rs. 5 crore, in which IFFCO held an investment of Rs. 3.65 crore with equity share holding of 72.99%.

Contd...

105

IKSL OPErATIONS

► IKSL has grown beyond its pilot stage and emerged as a key player in rural telecom retailing services in the country

► IKSL has commenced full fledged activities in 18 states

► Subscriber base of IKSL was around 45 lakh in March 2011

► About 14200 activating societies and 19600 transactive societies are engaged with IKSL

► IKSL forged strategic tie ups with State Agricultural Universities and Research Institutions to ensure the quality and relevance of information supplied through its VAS plateform

► Profit Before Tax was Rs. 19.12 Crore during 2010-11 with Net Profit after tax of Rs. 12.85 Crore

106

KISAN INTErNATIONAL TrADING FZE (KIT)

KIT has been set up by IFFCO as a wholly owned subsidiary of IFFCO in Dubai in April 2005.

KIT has become a leading international organisation to handle Import and Export of fertilisers and fertiliser raw materials and intermediates.

KIT is also catering to requirement of imported Urea, DAP, MAP for various customers in India.

During 2010-11, KIT achieved turnover of USD 825 million with a net profit of USD 13.08 million. KIT paid Dividend of USD 2.74 Million to IFFCO for the year 2010-11.

107

OMAN INDIA FErTILISEr PrOJECT (OMIFCO)

Grassroots Ammonia/Urea complex at Qalhat, Oman, at a cost of USD 892 million. Commercial production started from July 14, 2005.

The project comprises two Ammonia and two Urea plants of 2x1750 MTPD and 2x2530 MTPD respectively. Installed capacity of 1.652 million MT of Urea per annum.

Entire production of Urea is being purchased by GoI under Urea Offtake Agreement.

Surplus Ammonia being purchased by IFFCO. OMIFCO produced 2.08 million MT of Urea and 0.14

million MT of surplus Ammonia during the year 2010 and earned USD 151 million as Profit after Tax.

OMIFCO conferred with HIS MAJESTY CUP AWARD 2009 on December 28, 2009.

108

NATIONAL COMMODITY AND DErIVATIVE EXCHANGE (NCDEX)

NCDEX is one of the national exchanges for ”On Line Trading” in commodity futures. Agricultural produce occupies a quarter of commodity basket.

IFFCO holds 8.88% equity stake in NCDEX with an objective of empowering farming community and Cooperative Societies and for giving better return on their crop produce.

NCDEX is the leading exchange promoted by NABARD, ICICI, NSE, LIC and IFFCO. Other Major Shareholders are Jaypee Capital Services Ltd., Shree Renuka Sugars Ltd., CRISIL, PNB, Canara Bank and Goldman Sachs.

Contd...

109

NCDEX

There were over 820 Trading and Clearing Members and about 33600 trading terminals as on March 31, 2011.

Commodities traded on the Exchange stood at 46 comprising of 27 agricultural products, 6 energy, 6 metals and 7 bullion as on March 31, 2011.

Income during 2009-10 was Rs. 98.17 crore with Profit before Tax at Rs. 24.50 crore.

NCDEX has accredited over 400 warehouses with storage capacity of 1.3 million MT. NCDEX has 65 depository participants and 14 clearing Banks.

110

NATIONAL COLLATErAL MANAGEMENT SErVICES LTD. (NCMSL)

IFFCO and NCDEX promoted National Collateral Management Services Limited (NCMSL) on 28th September 2004 with the objective of :

■ Providing end-to-end Collateral Risk Management Solutions

■ Accreditation / Grading of Warehouses

■ Empanelment of Graders / Certifiers

■ Facilitating structures for Commodity Lending

■ Insurance tie up and adequate liability coverage

Other major shareholders are Canara Bank, Punjab National Bank, Corporation Bank, Bank of India, HDFC Bank, HAFED and Karur Vysya Bank

For the year 2009-10, NCMSL achieved total income of Rs. 127.70 Crore with PAT of Rs. 4.14 Crore

111

IFFCO KISAN BAZAr & LOGISTICS LTD.

Formerly IFFCO Kisan Bazar Ltd. was incorporated on February 26, 2004 with the objective to undertake business in Agri-input and Consumer goods for the benefit of Farmers and Cooperatives.

IKBLL invested Rs. 15 Crore to acquire 90 % shareholding in Baylis Generator’s Ltd. which holds patents to convert Mechanical Energy into Electrical Energy.

IKBLL has been identified as Special Purpose Vehicle (SPV) by IFFCO for setting up Barge Jetty for Solid Cargo Handling at Kandla along with Kandla Port Trust. MoU for the same signed on February 17, 2011.

112

IFFCO CHHATTISGArH POWEr LTD. (ICPL)

IFFCO has entered the power sector by incorporating a joint venture company named “IFFCO Chhattisgarh Power Limited” (ICPL) with Chhattisgarh State Electricity Board (CSEB) on January 25, 2006 to set up a 1320 MW coal based Mega Power Plant based on supercritical technology at an estimated project cost of Rs. 7544 Crore.

The project is envisaged to be financed with debt : equity ratio of 70:30.

The State Government has allocated Tara Coal Block for the ICPL project.

Contd...

113

IFFCO CHHATTISGArH POWEr LTD. (ICPL)

ICPL has formed a Joint Venture company named CMDC IPCL Coal Ltd. (CICL) with Chhattisgarh Mineral Development Corporation to develop Tara Coal Block.

CMDC holds 51% share capital and ICPL holds 49% share capital.

The process for land acquisition is in final stage alongwith other clearances like Environmental clearance and Forest clearance.

Commercial Operation by ICPL is expected to commence during the year 2013-14.

114

JOrDAN INDIA FErTILISEr COMPANY (JIFCO)

IFFCO and Jordan Phosphates Mines Company Ltd. (JPMC) have promoted a Joint Venture Company – ‘Jordan India Fertiliser Company (JIFCO)’ on March 6, 2008 to set up a Phosphoric Acid Plant with Annual Capacity of 475000 MT of P2O5 at Eshidiya.

IFFCO & its affiliates and JPMC will hold equity in ratio of 52% and 48%, respectively. JPMC will make available the required quantity of Rock Phosphate for the project.

The foundation stone of the Plant was laid at Eshidiya site on October 3, 2009 under patronage of His Majesty, King Abdullah II, the King of Jordan. Project implementation activities commenced from April 14, 2010. SNC Lavlin International, France, is Project Manager under EPCM Contract. Phos. Acid plant is expected to start commercial production by 1st Quarter of 2013.

115

LEGEND INTErNATIONAL HOLDINGS INC. AUSTrALIA

Legend has exploration interests in Queensland Territory, Australia, having phosphate deposits of 1.0 billion tonne at 16% P2O5.

Legend has been granted Mining Lease in one portion of D-Tree North (DSO belt) and also for Paradise North.

Legend’s project is significant for securing supplies for Rock Phosphate for Paradeep Unit in view of depleting reserves worldwide

116

AMErICAS PETrOGAS INC. (API), CANADA

API is Public Listed Canadian firm having interest in Oil & Gas in Argentina and Potash in Peru. IFFCO and its Associates acquired about 15% stake in Americas Petrogas Inc., Canada (API) alongwith 20% stake in Growmax Agri Corp., which is a subsidiary of API.

API’s 100% subsidiary ‘Petrogas Argentina, C.A.’ holds working interest in 16 blocks having 1.8 million acres in Neuquen basin of Argentina for exploration of oil and gas. Production of Crude Oil has commenced from April 2010.

Growmax Agri Corp. owns 100% of ‘Americas Potash Peru (APP) S.A.’ having mineral and surface rights to Potash deposits at Sechura Province in 820 Sq. Kms. APP is setting up Potash facility of 0.25 Million MT per annum of MoP.

IFFCO and its Associates would have right to 50% Potash Offtake from Peru project.

API initiated drilling of 1st deep Shale Gas well in Argentina in April 2011.

117

IFFCO KISAN SEZ (IKSEZ)

IFFCO is setting up a multi-product KISAN Special Economic Zone (IKSEZ) at Nellore with an investment of Rs. 630 crore.

The foundation stone was laid on 21.03.2008 by Late Dr. Y.S. Rajasekhara Reddy, the then Chief Minister of Andhra Pradesh.

The SEZ is having 1023 hectares (2527 acre) of land owned by IFFCO.

MoU between IFFCO, Fonterra - New Zealand, and Global Dairy Health Ltd. signed on November 11, 2010 for development and operation of Dairy Farms at IKSEZ. Technical feasibility study is being carried out by Fonterra.

Contd...

118


IKSEZ site is located on NH-5 (Howrah-Chennai Highway). It is close to Krishnapatnam port.

The project will consist of farmer friendly facilities like Logistics Zone with State-of-the-art Warehousing facilities, Cold Storage, Food Processing zone.

The project would also have Agribiotech Park, Demo Centres, Training Plots, Green Houses, Incubation Centres, Distribution Centre, Highway Rural Mart, Health Care Centre etc.

Contd...

119


Agro Food Park would be backed with Agriclinics, Nurseries, Soil Testing Centres, Microfinance, Smart Card Systems, Farmer and Rural Youth Training Centres, Rural Marts/Village Business Centres.

There would also be plenty of scope to increase and develop dairy and livestock farming in the region to involve “Women Power” to create secondary revenue streams in times of down turns.

The expected secondary and tertiary industries include Automobile Components, Pharmaceuticles and Leather products etc.

121

123

BrOAD VISION OF THE SOCIETY

● To augment the incremental income of farmers by helping them to increase their crop productivity through balanced use of energy efficient fertilisers

● To maintain the environmental health

● To make cooperative societies economically and democratically strong for professionalised services to the farming community to ensure an empowered rural India.

● To diversify into other profitable business areas, apart from fertiliser sector, for sustained growth and adequate return to member shareholders

124

VISION 2015

IFFCO successfully implemented its earlier Corporate Plans namely “VISION 2000”, “MISSION 2005” and ‘VISION 2010’ which resulted into becoming one of the largest producer and marketer of Chemical Fertilisers by expansion of IFFCO’s existing units, setting up joint venture companies overseas and diversification into new sectors.

IFFCO has now visualised a comprehensive Plan entitled ‘VISION-2015’ having objectives of :-

Production of fertilisers through expansion of existing units

Setting up of additional fertiliser production facilities in India and Abroad through joint ventures

Diversification into other profitable sectors

Strengthening raw material sourcing through Strategic joint ventures

Formulation of Strategic Alliances through IFFCO consortium

125

MAJOr SALIENT FEATUrES OF ‘VISION-2015’

Become Global Leader in Fertilisers Production to cater to Food Security needs of the Nation.

Maximise synergies of core business through Downstream value Additions and Forward/Backward integration.

Enhance presence in International markets through strategic joint ventures and Synergistic Acquisitions.

Promote Integrated Nutrient Management to improve efficiency of fertiliser use and to promote location specific research an efficient fertiliser practices.

Contd...

126

MAJOr SALIENT FEATUrES OF ‘VISION-2015’

Bring sustainability and strategies to prevent climate changes by reducing Energy consumption, Improving Resources management and promoting Renewable Energy sources.

Help Cooperative Societies to become economically strong, professionally managed and to equip Farming community with advanced agricultural practices for improved productivity to ensure empowered Rural India.

Achieve Fertilisers Production/Marketing target of 15 million tonne per annum with an annual turnover of Rs. 30,000 crore.

127

MAJOr PrOJECTS IN HAND

IFFCO CHHATTISGARH POWER LIMITED

JORDAN INDIA FERTILISER COMPANY

LEGEND INTERNATIONAL HOLDINGS INC.

AMERICAS PETROGAS INC.

IFFCO KISAN SEZ

128

TArGETS UNDEr VISION - 2015

Area of Operation Projected Target

Production of Fertilisers 15 Million Tonne

Sale of Fertilisers 15 Million Tonne

Turnover USD 6500 Million

Networth USD 1700 Million

129

IMPOrTANT INFOrMATION

FOr

INTErNATIONAL GUESTS

131

PrODUCTION PErFOrMANCE('000 MT)

132

('000 MT)

SALES PErFOrMANCE

133

FINANCIAL PErFOrMANCE*(USD Million)

2006-07 2007-08 2008-09 2009-10 2010-11

SALES TURNOVER 2266.37 2668.46 7225.38 3687.71 4650.10

PROFIT BEFORE TAX 55.12 83.48 96.96 124.46 225.05

PROFIT AFTER TAX 38..40 56.51 78.98 88.00 173.65

SHARE CAPITAL 94.72 94.95 95.47 95.46 95.40

RESERVES & SURPLUS

720.92 731.18 791.17 860.98 1017.26

NETWORTH 815.64 826.13 886.65 956.44 1112.66

NET ASSETS EMPLOYED

2387.90 2463.27 3875.42 3654.97 3748.56

INVESTMENTS – JV’S/Associates

165.84 172.58 204.70 199.85 262.02

*The Revenue and Balance Sheet items have been stated at the current Financial Year average rate of Rs. 45.58 per US$ and year-end rate of Rs. 44.65 per US$ respectively, to make the same comparable

134

(USD Million)

PrOFIT BEFOrE TAX & PrOFIT AFTEr TAX

135

TUrNOVEr AND NETWOrTH(USD Million)

136


Production of Fertilisers 8.58 Million MT (Previous best 8.20 million MT in 2009-10)

Highest Sales of Urea & NPK/DAP 12.59 Million MT (Previous best 11.83 million MT in 2009-10)

Highest Profit Before Tax USD 225.05 Million (Previous best USD 177.07 million in 2002-03)

Highest Profit After Tax USD 173.65 Million (Previous best USD 122.25 million in 2002-03)

Sale Turnover USD 4650.10 Million (Best USD 7225.38 million in 2008-09)

137

CUMULATIVE ACHIEVEMENTS

FERTILISER PRODUCTION 127.68 Million MT

FERTILISER SALE 148.27 Million MT

TURNOVER USD 36099.61 Million

PROFIT BEFORE TAX USD 1857.17 Million

PROFIT AFTER TAX USD 1436.38 Million

CONTRIBUTION TO USD 2106.63 Million EXCHEQUER

(Till 31st March, 2011)

138

(In Million MT)


139

Designed & Compiled by:Management Services Department

Website : www.iffco.in, www.iffco.coop

Produced by:Publicity Department

Indian Farmers Fertiliser Cooperative Ltd.IFFCO Sadan, C-1, Distt. Centre, Saket Place

New Delhi-110 017

Printed at:India Offset Press, A-1, Indl. Area Phase-1, Mayapuri, New Delhi- 1100 064

(3000 Copies)(May 2011)

Documents

144 iffco