IFFCO AT A GLANCE 200405

1
IFFCO AT A GLANCE
(Published in May 2008)
2
I N D E X

• S. No C o n t e n t s
  Page No.
• 1. Origin of IFFCO 01
• 2. IFFCO In Brief 02
• 3. Share Capital 04
• 4. Membership 05
• 5. Cumulative Performance 06
• 6. IFFCO Plants 08
• 7. Growth in Production Capacities 13
• 8. Achievements / Highlights of 2007-08 16
• 9. Production Performance 21
• 10. Marketing Territories and Channels 30
• 11. Distribution and Warehousing 32
• 12. Sales Performance 33
• 13. Financial Performance/Credit Ratings 40
• 14. Human Resources 47
• 15. Service to Farmers 49
• Cordet / Bio Fertilisers 54
• Information and Communication Technology 57
• 18. Major Awards Received 61

3
FOREWORD
The booklet IFFCO at a Glance is a popular
annual compilation providing key information of
the Society in a concise format. I am happy that
the booklet, apart from providing vital
information to the visitors, is being used by
IFFCO officials as a ready reckoner of
statistical data. Important Information have
been incorporated under chapter Vision 2010 for
convenience of our International Guests. With
Best Wishes (Dr. U.S.
AWASTHI)
Managing Director
4
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, the Society is deemed to be
  registered as a Multi State Co-operative Society.
  The Society is fully owned by Cooperatives.

5
IFFCO - IN BRIEF
(AS ON May 2008)

• 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 P2O5 - 1712.8

6
IFFCO - IN BRIEF

• Only Fertiliser Institution in the country to
  produce 68.47 lakh MT of fertilisers and 93.24
  lakh MT of sales during 2007-08
• Contributed about 20 to the total N and 25
  to the total P2O5 produced in the country
  during the year 2007-08
• Fertilisers marketed through 39564 Cooperative
  Societies and 158 Farmers Service Centres
• Service to the Farmers through a variety of
  programmes

7
SHARE CAPITAL
(As on 31st March 2008)
(Rs in Crore)
Authorised Share Capital 1000.00 Subscribed
and 423.93 Paid up Capital (All Share
Capital wholly owned by Cooperatives only)
8
GROWTH IN NUMBER OF MEMBER SOCIETIES
(As on 31st March)
9
CUMULATIVE PRODUCTION TILL DATE
(As on 31st March 2008)
(Lakh MT)
10
CUMULATIVE ACHIEVEMENTS TILL DATE
(As on 31st March 2008)
FERTILISER PRODUCTION 1037 Lakh MT FERTILISER
SALE 1126 Lakh MT TURNOVER Rs. 92005
Crore PROFIT BEFORE TAX Rs. 6445
Crore PROFIT AFTER TAX Rs. 4994
Crore CONTRIBUTION TO EXCHEQUER Rs. 5103
Crore
11
KALOL UNIT
YEAR OF COMMISSIONING 1975 INVESTMENT Rs.
71.23 Crore YEAR OF EXPANSION 1997 INVESTMENT
Rs. 149.70 Crore PRODUCT CAPACITY
TECHNOLOGY TPD TPA AMMONIA 1100 3,63,000
M.W. KELLOG HTAS UREA 1650 5,44,500
STAMICARBON and H G N 759 2,50,470

12
KANDLA UNIT
YEAR OF COMMISSIONING 1975 INVESTMENT
Rs. 24.26 Crore YEAR OF FIRST EXPANSION
1981 INVESTMENT Rs. 28.60 Crore YEAR OF
SECOND EXPANSION 1999 INVESTMENT 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
13
PHULPUR UNIT
YEAR OF COMMISSIONING 1981 INVESTMENT Rs.
205.2 Crore Phulpur - I YEAR OF EXPANSION
1997 INVESTMENT Rs.1190 Crore Phulpur
II YEAR OF DEBOTTLENECKING 2008 INVESTMENT
Rs.185.3 Crore PRODUCT CAPACITY
TECHNOLOGY TPD TPA AMMONIA 2955 9,75,150
KELLOG HTAS UREA 5145 16,97,850
SNAMPROGETTI N 2367 7,81,011
14
AONLA UNIT
YEAR OF COMMISSIONING 1988 INVESTMENT Rs.
651.6 Crore AONLA- I YEAR OF EXPANSION
1996 INVESTMENT Rs. 954.7 Crore AONLA-
II YEAR OF DEBOTTLENECKING 2008 INVESTMENT
Rs.149.2 Crore PRODUCT CAPACITY
TECHNOLOGY TPD TPA AMMONIA 3480 11,48,400
HALDOR TOPSOE UREA 6060 19,99,800
SNAMPROGETTI N 2788 9,19,908
15
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 M W
16
GROWTH IN PRODUCTION CAPACITIES
(000 MT)
17
GROWTH IN PRODUCTION CAPACITIES
(Lakh MT)
18
Commitment to Better Environment Quality
Management

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

19
HIGHLIGHTS OF 2007-08
Contd.
20
HIGHLIGHTS OF 2007-08
Includes Paradeep Unit
21
HIGHLIGHTS OF 2007-08
KALOL Produced of 5.45 lakh MT of Urea with
capacity utilisation of 100. Achieved lowest
specific energy consumption of 5.956 Gcal/MT of
Urea during 2007-08. PHULPUR Highest ever
yearly production of 15.54 lakh MT of Urea with
capacity utilisation of 110. Previous best was
14.56 lakh MT in 2006-2007. Phulpur-I operated
with lowest specific energy consumption of 6.862
Gcal/MT of Urea. Phulpur-II operated with
specific energy consumption of 5.8335 Gcal/MT of
Urea.
22
HIGHLIGHTS OF 2007-08
AONLA Highest ever yearly production of 18.65
lakh MT of Urea with capacity utilisation of
108. Previous best was 17.70 lakh MT of Urea
in 2006-07. Aonla-I and Aonla-II operated with
specific energy consumption of 5.7059 Gcal/MT and
5.5170 Gcal/MT of Urea , respectively.

• KANDLA
• The unit produced 20.18 lakh MT of NPK/DAP/MAP.
  Best production was 26.86 lakh MT of NPK/DAP in
  2005-06.
• The plant operated with specific energy
  consumption of 0.2237 Gcal/MT of P2O5. Best was
  0.222 Gcal/MT of P2O5 in 2005-06.
• Achieved P2O5 efficiency of 73.2 during 2007-08
  as compared to best of 99.51 in 2002-03.

23
HIGHLIGHTS OF 2007-08
PARADEEP Unit produced 8.66 lakh MT of NP/DAP
during the year 2007-08 registering a rise of
15.5 over last year. MARKETING
DIVISION Society achieved highest ever sales of
93.24 lakh MT of fertilisers during 2007-08.
Previous best was 86.10 lakh MT in
2006-07. Society achieved highest ever sales of
54.29 lakh MT of Urea and highest ever 38.95 lakh
MT NP/NPK/DAP/MOP during 2007-08. Previous best
was 52.41 lakh MT of Urea and 33.69 lakh MT of
NPK/DAP during 2006-07.
24
TOTAL FERTILISER PRODUCTION
(Lakh MT)
25
PRODUCTWISE PRODUCTION PERFORMANCE
(Lakh MT)
26
NUTRIENTWISE PRODUCTION PERFORMANCE
(Lakh MT)
27
UNITWISE PRODUCTION PERFORMANCE
(Lakh MT)
Contd
28
UNITWISE PRODUCTION PERFORMANCE
(Lakh MT)
29
STREAM DAYS ACHIEVED
30
STREAM DAYS ACHIEVED
31
STREAM DAYS ACHIEVED
32
CAPACITY UTILISATION
(As Percentage)
33
MARKETING TERRITORIES OF IFFCO
34
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
• 158 IFFCO Farmers Service Centres

35
DISTRIBUTION WAREHOUSING

• TRANSPORTATION
• Both by Rail (88) and Road (12)
• WAREHOUSING
• Federations Cooperative Godowns
• Central Warehousing Corporation (CWC) and
• State Warehousing Corporation (SWC)

36
TOTAL SALE OF FERTILISERS
(Lakh MT)
37
SALES PERFORMANCE
(Lakh MT)
38
SALES PERFORMANCE
(Lakh MT)
39
SALES DURING KHARIF SEASON
(Lakh MT)
40
SALES DURING KHARIF SEASON
(Lakh MT)
41
SALES DURING RABI SEASON
(Lakh MT)
42
SALES DURING RABI SEASON
(Lakh MT)
43
FINANCIAL PERFORMANCE
(Rs. Crore)

44
PROFIT BEFORE TAX (PBT)
(Rs. Crore)
45
PROFIT AFTER TAX (PAT)
(Rs. Crore)
46
TURNOVER
(Rs. Crore)
47
NETWORTH
(Rs. Crore)
48
CREDIT RATINGS ASSIGNED TO IFFCO

• CRISIL Ratings -
• AA/ Stable rating on IFFCOS Long Term Borrowing
  Programme. This rating indicates high degree of
  safety with regard to timely payment of interest
  and principal on the instrument.
• Assigned a P1 rating to IFFCOs 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 to IFFCO. 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.

49
CREDIT RATINGS ASSIGNED TO IFFCO

• FITCH Ratings -
• Short Term Rating of F1 (Ind) to IFFCOs Rs.
  100 crore commercial paper Programme.
• Long Term Rating of AA (Ind) to the Long Term
  Debt Programme of IFFCO. The outlook on the long
  term Rating is Stable.
• CARE Ratings -
• PR1 (PR one plus) rating to IFFCOs 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.

50
HUMAN RESOURCES
PRODUCTIVITY PER EMPLOYEE (MT)(Production
Units)


Including Paradeep Unit
51
HUMAN RESOURCES
PRODUCTIVITY PER EMPLOYEE (MT)(Marketing
Division)
52
SERVICE TO FARMERS

• Agricultural Extension and fertiliser use
  promotion programmes are an integral part of
  the marketing activity. Programmes are conducted
  at Area/State/Zonal offices under the 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 aids

53
SERVICE TO FARMERS
(Number)
54
SERVICE TO FARMERS
(Number)

55
SERVICE TO FARMERS
(Rs. In Lakh)
56
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

57
COOPERATIVE RURAL DEVELOPMENT TRUST (CORDET)

• PROMOTED BY IFFCO
• LOCATIONS
• KALOL (GUJARAT)
• PHULPUR (U.P.)
• KANDLA (GUJARAT)
• ACTIVITIES OF CORDET
• Farmers Training
• Soil Testing
• Bio Fertiliser Production
• Demonstration Farming
• Seed Multiplication

58
PRODUCTION OF BIO - FERTILISERS
CORDET - PHULPUR KALOL (Annual
Capacity 75 MT 165 MT)
(Qty in MT)
CORDET- KALOL commissioned w.e.f. 16.02.2004 with
annual capacity of 165 MT.
59
SALES OF BIO - FERTILISERS
(Qty in MT)
60
INFORMATION AND COMMUNICATION TECHNOLOGY

• 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.
• 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.
• Benefit of Pre-audit annual accounts by 1st week
  of April every year for the last five years.
• Server consolidated at Head Office and disaster
  recovery system set up at Kalol.

61
INFORMATION AND COMMUNICATION TECHNOLOGY

• 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 and Hardware
  Complaints 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 email facilities to
  Cooperatives.
• Work flow applications implemented to reduce
  paper work.

62
IFFCOs MPLS VPN
Airtel VPN
BSNL VPN
63
Remote offices
Saket office
Internet
Network Security Setup
Airtel
Spectra net- 1
VSAT
VSAT
VSAT
VSAT
VSAT
PIX 506
Spectra net- 2
Router
Gig0/2
PIX 506
IPS In Inline Mode
Phulpaur
Paradeep LAN
Aonla
External Switch
Kalol
Kandla LAN
Gig0/1
PIX Firewall in HA Mode
ASA Firewall
Internal Switch
SO AO Mktg offices
LAN
Core L3 Switch
MPLS CLOUD 600 Connections 91 Direct on
MPLS and 509 MPLS VPN Client
User Zone
Core Router In GLBP Mode
Checkpoint Firewall on Alteon
Call Manager VMS, ACS, Checkpoint Security
servers
Chandigrah
Servers
3560 L3 Switch
Servers
Lucknow
Bhopal
Banglore
Kolkata
VSAT Connectivity to Zonal Offices
64
MAJOR AWARDS RECEIVED
KALOL

• Seven Awards for Best Overall Performance from
  FAI
• Two Awards for Industrial Safety from GOI
• Award for Technical Innovation from FAI
• Two Raj Bhasha Shields for promoting Hindi
• Four Awards for Safety from National Safety
  Council, Chicago, one Award from Gujarat Safety
  Council and Certificate of Lowest Disability
  Injury Index
• Indo German Greentech Environment Excellence
  Award
• National Safety Award (Runner up)
• Two National Energy Conservation Award and
  Letter of Appreciation from Govt. of Gujarat
• Vishwakarma Rashtriya Puraskar to three
  employees from Govt. of India

Contd.
65
MAJOR AWARDS RECEIVED

• KANDLA
• Twelve Safety Awards from National Safety
  Council , Mumbai, GOI
• Twenty five Safety Awards from Gujarat Safety
  Council, Vadodra
• Nineteen Awards for safety from National
  Safety Council, USA
• Letter of Appreciation from GEB for Energy
  Conservation
• Raj Bhasha Award for promoting Hindi and
  Sahasrabdi Shield by
• Rashtriya Hindi Academy
• Eight Awards for Best Overall Performance and
  one Award for
• Excellance in Safety from FAI
• Golden Peacock Environment Management Award
• Certificate of Honour from Gujarat Safety
  Council for 3 million
• man hours without accident

66
MAJOR AWARDS RECEIVED
PHULPUR

• Four Awards for productivity from NPC
• Six National Safety Awards from GOI
• Seven Awards for Best overall Performance from
  FAI
• Two Awards for Technical Innovation from FAI
• Award for Best Production Performance in
  Nitrogenous Fertiliser
• Eight National Energy Conservation Awards
• Three Awards for Best Environmental Protection
  from FAI
• TERI Corporate Environment Award
• Best Environmental Excellence Award from
  Indo-German
  Greentech Foundation
• Two Best Technical Paper Award by FAI
• Contd

67
MAJOR AWARDS RECEIVED
PHULPUR

• Best Pollution Control Implementation Gold
  Award and Rajiv Ratna National Gold Award for
  Best Pollution Control
• Jointly received FAI Award for Best Overall
  Performance of an operating Fertiliser Unit for
  the year 2006-07 with Zuari Industries Ltd Goa
• Indira Gandhi Memorial National Award for
  Excellence in Indian Industries
• Best Chief Executive Gold Award to IFFCO-
  Phulpur
• Award for Excellence in Water Management
• First Prize to an Article titled Implementation
  of Energy Saving Project at IFFCO Phulpur
  Unit published in the Indian Journal of
  Fertilisers ( Fertiliser News) in March 2006

68
MAJOR AWARDS RECEIVED

• AONLA
• Award for Best Implemented Project (Second Prize)
  from GOI
• Four Awards for Conservation of Energy from GOI
• National Award for Excellence in Energy
  Management
• Indo German and Greentech Environment Excellence
  Award
• Award for Best overall performance from FAI
• Two Awards for Excellence in Safety from FAI
• Two Safety Awards from National Safety Council of
  India
• Rajiv Ratna National Gold Award 2005 for Best
  Executive
• Excellence Award for papers published on Safety
  and Health in Chemical Industry and Hazard
  Identification Risk Management

69
MAJOR AWARDS RECEIVED

• OTHERS
• IFFCO has been ranked 1st in Sales Turnover and
  2nd in terms of Networth and Profitability
  amongst unlisted enterprises by Economic Times
  Intelligence Group
• 1st Prize for Best Corporate Film from NCUI
• Best managed Workforce Award for the year 2004
  from Hewitt Associates and CNBC TV-18
• Three awards for Best Display in FAI Exhibitions
• Two Awards for Highly Commendable Accounts
• Awards in Appreciation of Initiative in Family
  Planning
• National HRD Award from National HRD Network for
  outstanding contribution in HR Development
• IFFCO Corporate film was adjudged the best by
  Public Relations Society of India (PRSI)

Contd
70
MAJOR AWARDS RECEIVED

• IFFCO Annual Report bagged the third prize,
  instituted by Public Relations Society of India
  (PRSI)
• FAI Golden Jubilee Award on Transfer of improved
  Farm Technologies
• IFFCO has bagged FAI Best Video Film Award
  2006-07 for film on Water Harvesting.
• IFFCO has also got Prestigious CIO 100 Award by
  International Data Group (IDGI India), the
  worlds leading Technology Media Event and
  Research Group .

71
VALUE ADDITION TO PHOSPHATIC FERTILISERS AT
KANDLA

• Annual negative balance for large no. of
  nutrients in the soil - a threat to sustainable
  agriculture.Survey reveals
• Replenishment of the depleted nutrients
• Partial or completely missing
• Large percentage of the samples from cultivated
  areas have shown deficiency of zinc and Boron
• Value added phosphatic fertilisers with Zinc
  micro-nutrients proposed to be produced at Kandla
  for field trial
• N P K Zn
• I) NPK Grade - I (Z) 10 26 26 0.5
• II) NPK Grade -II(Z) 12 32 16 0.5
• (Trial launched)
• Fortified NP/NPK grades with Boron (applied for
  registration in FCO)
• N P K B I)NPK Grade - I (B) 10
  26 26 0.3
• II)NPK Grade-II (B) 12 32 16 0.3
• III)DAP (B) 18 46 0 0.3

72
WATER SOLUBLE FERTILISERS

• Increase in area under drip irrigation
• Demand for 100 water soluble fertilisers
  increasing
• Indigenous capacity not available
• The present demand is mostly being met by imports
• IFFCO has successfully tried producing one of the
  water soluble fertilisers Urea Phosphate at its
  RD Laboratory at Kandla plant
• Pilot plant planned to be set up at Kandla unit

73
INVESTMENTS BY IFFCO
(As on 31.03.2008)

74
INVESTMENTS OUTSIDE IFFCO
Indian Potash Ltd (IPL) IFFCOs Equity Rs.
2.68 Crore Percentage of Equity held
34 Activity Marketing of Potash and
imported fertilisers Industries Chimiques du
Senegal (ICS) I II Percentage of Equity
held 19.09 Plant Site Darou,
Senegal Products Rock Phosphate, Phosphoric
Acid and NPK Fertilisers

75
INVESTMENTS OUTSIDE IFFCO (As on 31.03.2008)
IFFCO - TOKIO General Insurance Company Ltd.
(ITGI) IFFCOs Equity Rs. 193.90
Crore Percentage of Equity held
72.64 Activity General Insurance Oman
India Fertiliser Company (OMIFCO) IFFCOs
Equity Rs. 329.08 Crore Percentage of Equity
held 25 Plant Site Sur, Oman Products
Ammonia, Urea Indo Egyptian Fertiliser Co.
(IEFC) Project Cost USD 325 million IFFCOs
Paid up Equity Rs. 38.89 Crore Debt Equity
Ratio 70 30 IFFCOs Equity 76 El Nasr
Mining Co. 24 Activity Phos. Acid Plant
76
INVESTMENTS OUTSIDE IFFCO
National Commodity and Derivative Exchange
(NCDEX) IFFCOs Paid up Equity Rs. 3.60
Crore Percentage of Equity held
12 Redeemable Preference Share Capital Rs. 10
Crore Activity On Line Trading in
commodity futures National Collateral
Management Services Ltd. (NCMSL) IFFCOs
Equity Rs. 4 Crore Percentage of Equity
held 13.33 Activity Collateral Risk
Management Solutions IFFCO Chhattisgarh
Power Ltd Project Cost Rs. 6265
Crore IFFCOs Paid up Equity Rs. 11.10
Crore Debt Equity Ratio 70 30 IFFCO
Equity 74 CSEB 26 Activity
Power Generation (1320 MW)
77
INVESTMENTS OUTSIDE IFFCO
Kisan International Trading FZE
(KIT) Investment Rs. 11 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 580
Million IFFCO Equity 52 (Rs. 2.08 Crore)
JPMC Equity 48, Activity Phos.
Acid Plant IFFCO Kisan Sanchar Ltd. (IKSL) Paid
up Share Capital Rs. 5 Crore IFFCO Equity
Rs. 3.65 Crore (73)
78
INVESTMENTS OUTSIDE IFFCO

IFFCO Kisan SEZ Ltd. Project Cost Rs. 2400
Crore
Others Indian Farm Forestry Development Cooperativ
e (IFFDC) Rs. 8.60 Crore Maharashtra State
Coop. Bank Ltd. Rs. 10 Lakh IFFCO Kisan
Bazar Rs. 9 Lakh
79
INFRASTRUCTURAL INVESTMENTS
80
ACHIEVEMENTS UNDER VISION 2000
81
GLORIES OF VISION 2000

• 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

82
EXPANSION PROJECTS

• 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

83
DIVERSIFICATION AND JOINT VENTURES
84
Industries Chimiques Du Senegal (ICS)

• ICS successfully restructured by IFFCO Consortium
• IFFCO C onsortium now holds a majority 85 equity
  in ICS Senegal
• ICS mines Rock Phosphate and manufactures
  Phosphoric Acid for exports and Phosphatic
  Fertilisers for domestic consumption.

85
IFFCO-TOKIO GENERAL INSURANCE CO. LTD. (ITGI)

• Diversified into General Insurance due to
• Tremendous potential available
• To serve the insurance needs of farmers
• IFFCOs 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. 2000

Contd
86
PARTNERS IN ITGI

• Joint Venture Partner TM Asia Pte. Ltd.
• Total Equity Rs. 220 Crore
• IFFCO 72.64
• TM Asia Pte. Ltd. 26.00
• IPL 1.36

Contd
87
OPERATIONS OF ITGI

• Gross premium in 2007-08 Rs. 1236 crore
• Profit before tax in 2007-08 Rs. 11.86 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.

(Provisional)
Contd
88
SANKAT HARAN BIMA YOJANA BY ITGI

• With the purchase of each bag of IFFCO/IPL
  fertiliser from Cooperative Society/FSC, the
  buyer is automatically covered against accident
  upto an amount of Rs. 4000/- for one year under
  Sankat Haran Bima Yojana
• Maximum liability limited to Rs. 1 lakh
  irrespective of the number of bags purchased
• Premium _at_Re1/- per bag paid by respective
  manufacturer
• Cash receipt is evidence of insurance cover

Contd
89
NEW INITIATIVE BY 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
• Mahila Suraksha Bima Yojna
• Jan Kalyan Bima Yojna
• Janta Bima Yojna provides
• Fire and Allied Perils Cover for Household
  Goods
• Critical illness cover for five major diseases
  

90
OMAN INDIA FERTILISER PROJECT (OMIFCO)

• Grassroots Ammonia/Urea complex has been set up
  at Qalhat near Sur, Oman at a project cost of USD
  892 million.
• The project comprises two Ammonia and two Urea
  plants of 2x1750 MTPD and 2x2530 MTPD
  respectively. Installed capacity of 16.52 lakh MT
  of Urea per annum.
• IFFCOs equity 25.
• Commercial production started from July 14, 2005.
• Entire production of Urea is being purchased by
  GOI under Urea Offtake Agreement.
• Surplus Ammonia being purchased by IFFCO.

91
Power Project in Chhattisgarh (ICPL)

• IFFCO has entered the power sector by
  incorporating a joint venture company 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 cost of Rs. 6265
  Crore.
• The power company has started the process of
  land acquisition, appointed the main Engineering
  Consultant, obtained statutory clearances like
  stack height and has already initiated for other
  clearances like Environmental Clearances and Mega
  Power Project Status.

92
Power Project in Chhattisgarh (ICPL)

• The company is expected to achieve financial
  closure by the 3rd quarter of 2008. Power Finance
  Corporation appointed for advisory, appraisal and
  Loan Syndication.
• ICPL has signed a Joint Venture Agreement with
  Chhattisgarh Mineral Development for the
  development of Tara Coal Block and supply of Coal
  To ICPL Power Plant and has formed a new company
  namely CMDC ICPL Coal LTD.
• Commercial Operation by ICPL expected to commence
  in 2011.

93
IFFCO Kisan Sanchar Ltd. (IKSL)

• IFFCO launched a new subsidiary (IKSL) in
  April 2008 with objective to use Information
  Communication Technology to empower farmers in
  rural India and to strengthen the cooperative
  network in the company.
• IKSL received the certificate of Incorporation
  on 12.04.2007 and certificate for commencement of
  Business on 13.06.2007.
• As on 31.03.2008, 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.

94
Indo Egyptian Fertilisers Company, SAE (IEFC)
IFFCO promoted a joint venture in Egypt namely
Indo Egyptian Fertilizers Company SAE (IEFC)
along with EI Nasr Mining Company of Egypt to set
up a Phosphoric Acid plant with a capacity of
1500 MT of P2O5 per day. IEFC was incorporated in
Egypt as a Joint Stock Company on 15th November
2005. Shareholding of IFFCO with its Affiliates
and EI Nasr Mining Co. Egypt are 76 and 24
respectively. The preproject activities are
under progress and various clearance and licences
from the Egyptian Government are being pursued.
95
Jordan India Fertiliser Company (JIFCO)
IFFCO and Jordan Phosphates Mines Company Ltd.
(JPMC), have formed a limited liability Joint
Venture Company by the name of Jordan India
Fertiliser Company (JIFCO) on March 6, 2008 to
set up a Phosphoric Acid Plant of capacity 1500
MT of P2O5 per day at Eshidiya with Project cost
of US 580 million. IFFCO 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.
96
Kisan International Trading FZE (KIT)
KIT has been set up by IFFCO as a wholly owned
subsidiary of IFFCO in Dubai. 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 to India
through State Trading Enterprises like MMTC IPL.
97
National Commodity and Derivative Exchange
(NCDEX)

• NCDEX is one of the four licences / exchanges
  set up nation wide for On Line Trading in
  commodity futures. Agricultural produce occupies
  a quarter of commodity basket.
• IFFCO has picked up 12 equity stake in NCDEX at
  Rs. 3.6 Crore 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,
  NSE, LIC, CRISIL and IFFCO. Other major
  shareholders are PNB, ICICI Bank, Canara Bank and
  Goldman Sachs.

Contd
98
NCDEX - Highlights during 2007-08

• There were 890 Trading and Clearing Members and
  over 19000 trading terminals as on March 31,
  2008.
• Commodities traded on the Exchange stood at 54
  including 41 agricultural products, 2 energy, 6
  metals, 2 bullion and 3 plastics products as on
  March 31, 2008.
• Total income during 2007-08 was Rs. 123 crore.
  NCDEX earned Rs. 31.09 crore as profit after tax.

99
National Collateral Management Services Ltd.
(NCMSL)

• IFFCO and NCDEX has also promoted a subsidiary
  company by the name of National Collateral
  Management Services Limited (NCMSL) on 28th
  September 2004 with 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 ICICI Bank, Canara
  Bank, Punjab National Bank, Corporation Bank,
  Bank of India, HDFC Bank, HAFED and Karur Vysya
  Bank

100
IFFCO KISAN BAZAR LTD. (IKBL)
IFFCO Kisan Bazar Ltd. was incorporated on
26.02.2004 with an Authorised Equity Capital of
Rs. 1 Crore with the objective to set up a chain
of Super Stores across the Country .
Negotiations are in progress for strategic
alliance with the prospective Foreign partners
for operations of large format Retail Outlets in
India.
101
IFFCO KISAN SEZ (IKSEZ)

• IFFCO is developing a multi-product KISAN
  Special Economic Zone (IKSEZ) at Nellore - first
  of its kind with farmers Cooperatives as
  stakeholders along with other Strategic
  Investor(s).
• The foundation stone was laid on 21.03.2008 by
  Dr. Y.S. Rajasekhara Reddy, Honble Chief
  Minister of Andhra Pradesh.
• The SEZ is planned to be set up on 1023 hectares
  (2527 acre) of land owned by IFFCO with an
  estimated investment of about Rs. 2,400 crore.
• 
  

Contd
102
IFFCO KISAN SEZ (IKSEZ)

• The Project will be developed in 4 Phases, 1st
  Phase is expected to be completed by 2011. The
  site is located on NH-5 (Howrah-Chennai Highway)
  and 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, Model
  Dairy Farms, Incubation Centres, Distribution
  Centre, Highway Rural Mart, Health Care Centre
  etc.

Contd
103
IFFCO KISAN SEZ (IKSEZ)

• 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.

104
IMPORTANT INFORMATION FOR INTERNATIONAL
GUESTS
105
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.

106
VISION 2010

• The Society has embarked upon another growth plan
  titled VISION 2010 to achieve annual turnover
  of Rs. 15,000 crore (USD 3750 Million) by the
  year 2010.
• Society is exploring avenues for diversification
  into other profitable business areas, apart from
  fertiliser sector, for sustained growth and
  adequate return to member shareholders.
• Vision 2010 would mainly focus on farmer oriented
  schemes and strengthening of cooperative
  infrastructure.

Contd
107
VISION 2010

• Broadly identified business activities under the
  VISION 2010 are -
• Installation of Ammonia/Urea plants including
  acquisition
  of fertiliser units
• Generation of Power
• Production and Marketing of micro-nutrients,
  seeds, bio-fertilisers, pesticides etc.
• Value addition to agri-products and marketing
• Banking and Financial Services
• Information Technology and IT enabled services
• Establishments of Retail Chain in urban and
  semi-urban locations

108
INVESTMENT FOR CAPACITY INCREASE

• IFFCO has envisaged a major expansion/diversificat
  ion plan to invest USD 1 Billion to ramp up the
  Domestic Fertiliser Production Capacity,
  Acquisition of Plants, Joint Ventures in foreign
  countries and Energy Reduction Measures in
  existing Units
• Energy Saving Project (ESP) has been implemented
  in all Ammonia and Urea Plants at Kalol, Phulpur
  and Aonla units with total investment of Rs. 412
  Crore (USD 103 Million).
• Capacity Enhancement Project (CEP) implemented
  at Phulpur and Aonla units in May08.
• 
  Contd

109
INVESTMENT FOR CAPACITY INCREASE

• A State-of-the-Art phosphoric acid plant in Egypt
  (IEFC) alongwith EL Nasr Mining company (ENMC),
  Egypt with a project cost of USD 325 million
  having an installed capacity of 0.5 Million MTPA
  of P2O5. IFFCOs equity in IEFC is 76 and ENMCs
  equity is 24.
• Another Phos. Acid Plant (JIFCO) with Jordan
  Phosphatic Mines Co. Ltd. (JPMC) with project
  cost of USD 580 Million having capacity of 1500
  MT per day. IFFCO holding is 52.
• Acquired NPK/DAP Plant of 2 Million MTPA at
  Paradeep alongwith Phosphoric Acid and Sulphuric
  Acid at a cost of USD 505 Million in October
  2005.

110
US 1.5 Billion INVESTMENT IN POWER PROJECT

• 1320 MW Power Project at Chhattisgarh.
• IFFCO Chhattisgarh Power Ltd. with Chhattisgarh
  State Electricity Board (CSEB) incorporated on
  25.01.2006 .
• Salient features of the Project
• Total estimated project cost USD 1.5 billion
• Equity participation by IFFCO (74) and CSEB
  (26)
• Scheduled commissioning of first unit of
  500/660 MV in 2011
• Low tarrif electricity to farmers of
  Chhattisgarh
• Active participation of Government in the land,
  coal,
  water and infrastructure fronts

111
US 0.6 Billion INVESTMENT IN SEZ

• IFFCO has laid foundation stone for IFFCO KISAN
  SEZ at Nellore, India, on March 21, 2008.
  Special features are
• Estimated investment of USD 600 Million
• Closed to Krishnapatnam Port
• Farmer Friendly infrastructure planned
• Provision for Food Processing Zone
• Secondary and Tertiary Industries under
  consideration

112
IFFCO PLANTS
113

IFFCO SUBSIDIARIES

• IFFCO TOKIO GENERAL INSURANCE COMPANY LTD.
• INDO EGYPTIAN FERTILIZERS COMPANY, SAE
• JORDAN INDIA FERTILIZER COMPANY LLC
• IFFCO CHHATTISGARH POWER LTD.
• KISAN INTERNATIONAL TRADING FZE
• IFFCO TOKIO INSURANCE SERVICES LTD.
• IFFCO KISAN BAZAR LTD.
• IFFCO KISAN SANCHAR LTD.
• IFFCO KISAN SEZ LTD.
• INDIAN FARM FORESTRY DEVELOPMENT COOP. LTD

114

IFFCO ASSOCIATES

• INDUSTRIES CHIMIQUES DU SENEGAL
• OMAN INDIA FERTILIZER COMPANY S.A.O.C.
• INDIAN POTASH LTD.
• NATIONAL COMMODITY DERIVATIVES EXCHANGE LTD.
• NATIONAL COLLATERAL MANAGEMENT SERVICES LTD.
• COOPERATIVE RURAL DEVELOPMENT TRUST
• KISAN SEWA TRUST
• IFFCO FOUNDATION
• LEGEND INTERNATIONAL HOLDINGS INC.

115
CUMULATIVE ACHIEVEMENTS
(Till 31st March, 2008)
FERTILISER PRODUCTION 104 Million MT FERTILISER
SALE 113 Million MT TURNOVER
USD 22841 Million PROFIT BEFORE TAX USD
1600 Million PROFIT AFTER TAX USD 1240
Million CONTRIBUTION TO EXCHEQUER USD 1267
Million
116
GROWTH IN PRODUCTION CAPACITIES
(in Million MT)
117
PRODUCTION PERFORMANCE
(000 MT)
118
SALES PERFORMANCE
(000 MT)
119
FINANCIAL PERFORMANCE
(USD Million )
120
PROFIT BEFORE TAX (PBT) AND PROFIT AFTER TAX
(PAT)
(USD Million)
121
TURNOVER AND NETWORTH
(USD Million)
122
HIGHLIGHTS OF 2007-08

• Production of Fertilisers 6.85 Million MT
• (Best 7.01 million MT in 2006-07)
• Highest Sales of Urea NPK/DAP 9.32 Million MT
• (Previous best 8.61 million MT in 2006-07)
• Profit Before Tax USD
  95.20 Million
• (Best USD 167.21 million in 2002-03)
• Profit After Tax USD
  64.42 Million (Best USD 115.44 million in
  2002-03)
• Highest Turnover
  USD 3043.03 Million (Previous best USD 2282.39
  million in 2006-07)

123
MAJOR AWARDS RECEIVED DURING 2007-08

• Phulpur unit bagged First Prize for National
  Energy Conservation Award-2007 in Fertiliser
  Sector instituted by Bureau of Energy Efficiency,
  Ministry of Power, Government of India.
• Phulpur Unit has also received FAI award jointly
  with Zuari Industries Limited Goa for Best
  Overall Performance of an operating Fertiliser
  Unit for Nitrogenous for the year 2006-07.
• Aonla Unit received FAIs award for Excellence
  in Safety for the year 2006-07.
• IFFCO bagged FAI Best Video Film award 2006-07
  for film on Water Harvesting.
• IFFCO has got Prestigious CIO 100 Award by
  International Data Group (IDGI India), the
  worlds leading Technology Media Event and
  Research Group.
• Kalol unit has won the First Prize in maintaining
  the Institutional Gardens, organised by Gujarat
  Horticulture Association.

124
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