SUMMER TRAINING PROJECT REPORT

ON
MARKETING OF KISAN UREA
PRODUCED BY NFL WITH SPECIAL
REFERENCE TO BATHINDA & MUKTSAR DISTRICT

SUBMITTED TO
NATIONAL FERTILIZERS LIMITED

IN PARTIAL FULLFILMENT OF THE REQUIREMENT FOR

THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (2003-2004)

SUBMITTED BY:
NAMAN DHAWAN

ACKNOWLEDGEMENT
First of all and the foremost I will like to thank the ALMIGHTY GOD
for giving me the strength and knowledge to do whatever I have done
during and my summer training
I would also like to thank Miss. Shivani for giving his precious and
valuable time to me and guiding me in the preparation of the report ,
without their help which could had not been possible.
I would also like to thank my parents & all my friends who supported
me and helped me in the preparation of the report.

FORMAT No TH TF-18

NATIONAL FERTILIZERS LIMITED

HRD DEPARTMENT
Dated :
Certificate cum Relieving Order
The following student/s of year , Degree/
Diploma / MBA/ in . From
joined NFL On For vocational training
from to .. vide our earlier
Memo Dated and is /are hereby released, after
successful completion of the training on .. afternoon.

Sr. No

Name ( S/Shri)

Roll No

(Khushwinder Singh MIE)

Manager HRD

To concerned VT/s
CC To:
1. Chief Mgr. (F & A) with the request to release security of Rs. 50 to the above
Vocational Trainee/s.
2. Principal/
Training & Placement officer.
.
.
.

DECLARATION
I under signed Naman Dhawan hereby declare that the project report
prepared and submitted by me is my original work. The practical findings
and suggestions in this report are based on the data collected by me during
my summer training in the organization of NFL.
Thanking you,

CONTENTS

EXECUTIVE SUMMARY
INTRODUCTION
NFL - A PROFILE
OBJECTIVES
RESEARCH METHODOLOGY
DATA ANALYSIS & INTERPRETATION
RESULTS AND FINDINGS
CONCLUSION
SUGGESTIONS & RECOMMENDATIONS
ANNEXURE

EXECUTIVE SUMMARY

This is the crux of the whole summer training undertaken by a trainee. Or

we can say the whole project report given in 1 or 2 pages. To start with I got
the opportunity to do summer training at national fertilizers limited, Bathinda
. it is a govt . company, a public sector company. The project undertaken by
me was cc Marketing of kisan urea" with special reference to Bathinda and
Mukatsar district. the main aim of choosing this project was to have some
practical look into marketing. Although 3 districts namely bathinda,
mukatsar , and mansa come under bathinda area office but I choose
Bathinda and Mansa-for survey because it was difficult to cover the area
alone. About my field work a questionnare was prepared by me and total
number of respondents chosen was 50. the markets surveyed are raman,
maur, bathinda, rampura & goniana under bathinda district and malout ,
gidderwaha & mukatsar under mukatsar district. NFL sells its urea through
its private distributors, markfed and agro centers. After an interaction in the
market and the analysis of the data collected I found out that the NFL has
h_ghest allocation under the ECA which is one reason for its strong
presence in the market, the other reason for its sale in the market is that it
is the ctleapest urea available in the market. on the quality side NFL is bit
disappointing because not a single respondent said its quality is good, so
there is need for improvement. There is also .Iot to be done in the area of
advertisement & promotional activities. distributors are also violating the
rules by selling the urea at the same price to the ultimate consumer and the
, retailer. all this was that I could find out during my interaction in the

market also one important fact is that from the past three years the
bathinda unit is running in the losses. The marketing structure of NFL is
good and the the superiors gave me a lot of help during my training, but 5til
there is lot to be done. There is need for NFL to look into the all the findings
and take effective measures, then only it will become a true NATIONAL
company.

INTRODUCTION
There are many products in the market like, computer, paints, electronic
goods, automobiles etc. There are big MNC existing of these products. I n
this world of urban and FMCG products, fertilizers as product dose not find
any existence. But India being an agricultural country one must Know what
a fertilizer is the company producing it and how it is marketed. The
company national fertilizer limited is the largest producer of urea in the
country, It is a Govt of India undertaking. I had an. opportunity to do my
summer training in the organization. The topic allotted to me was marketing
of Kisan urea with special ref. To Bathinda and Mukatsar distt. Urea is the
most important and most sold fertilizer. It acts like the role which food plays
for our body. during my training I came to know about urea how it looks
Hke. urea is fertilizer which is put into the with the seeds are put in to the
soil for any crop urea is a must. this season of summer is known as kharif
season and the crops grown are cotton and other crops the winter season
is called the rabi season. wheat is one of the main crop of that season.
these are the two seasons in which urea ;s demanded. in the rabi season
the demand of urea is more because the consumption is more than the
kharif season. I got the areas of Bathinda and Mukatsar district for survey.
and the markets are Raman I Maur I Rampura , Bathinda and Goniana in
Bathinda district and Malout I Gidderwaha and Mukatsar in Mukatsar
district. All I have done during my summer training, the data collected and
the analysis and the findings during my interaction in the market are further
in the report.

INDIAN FERTILIZER INDUSTRY

At present, there are 64 large sized fertilizer units in the country. Of these,
39 units produce urea and 18 manufacture DAP among other fertilizers.
Besides the large units, there are 79 medium and small scale
manufacturers. The country is self-sufficient to the extent of 92% in case of
nitrogen nutrients. Therefore, the government decided to stall any
additional capacity in urea.
As of FY2000, the installed capacity of nitrogen (N) nutrients was
about 11 mn tons and that of phosphate (P) nutrients was 3.6 mn tons,
making India the third largest producer in the world. Production of N&P was
10 mtpa and 3 mtpa respectively while urea production (contains 46%
nitrogen) was 18.4 mtpa which is 3.8% .higher compared to last year. DAP
production declined marginally, by 1 %. The overall fertilizer production for
the said period increased by 5.3% yoy.
Urea being the most affordable fertilizer, dominates the nitrogenous
fertilizers, constituting more than 80% of consumption. DAP is the dominant
phosphatic fertilizer accounting for 58% of consumption, followed by SSP
with a 20% share. As mentioned earlier, potassic fertilizers are not
manufactured in the country and are completely. Imported. During the year,
the NPK ratio deteriorated to 8.5:3.1: 1 from 7.9:2.9: 1 in FY99. .

Trends in consumption
Mn ton
1960-61
1970-71
1980-81
1990-91
1995-96
1996-97
1997-98
1998-99

Mn to
1960-61
1970-71
1980-81
1990-91
1995-96
1996-97
1997-98
1998-99

N
0.2
1.5
3.7
8
9.8
10.3
11.1
11.3

Production
N
98
830
2164
6993
8777
8599
10086
10477

P
0.1
0.5
1.2
3.2
2.8
2.9
3.9
4.0

Total
0.3
2.2
5.5
12.5
13.7
14.2
16.3
16.6

0.2
0.6
1.3
1.1
1.0
1.3
1.3

P
52
229
841
2052
2558
2556
2976
3169

Imports
N+P+K
419
629
2759
2758
4008
2014
3246
1594

Against an all-India average consumption of 90 kg/hectare, states like

Punjab and Andhra Pradesh consume over 135 kg/ hectare, while
economically underdeveloped states like Madhya Pradesh and Orissa
consume about 30 kg/hectare.
Country consumption

India
China
Egypt
Bangladesh
Pakistan
USA

kg/hectare
90
370.7
345.4
135.4
113.1
107.1

The cumulative production of fertilizer nutrients during the first 11-month

period (April/February) of 1999-2000 was 13.1mn tons, which is an
increase of 5% over last year. Currently, the urea capacity is about 20.2mn
tons while consumption is about 21.7 mn tons. In future, demand is
expected to grow at a CAGR of 4% upto FY02 Le the demand for urea
would grow to around 23 mn tons while the estimated production would be
about 20.8 mn tons.
I ndia and China are net importers of fertilizers (both urea and DAP)
due to their domestic demand and hence influence prices. However, since
both these countries are currently out of the mar_et, the prices are
subdued. Currently, urea prices are about $164/ ton and DAP is $134/ton.

TYPES OF FERTILIZERS
Agriculture accoun_s for a third of India's national income. It provides
employment to over 70% of the population. Fertilizers playa key role in :
improving the crop yield and hence are integral to mOdern farming.
The main nutrients that deplete with successive cropping are nitrogen
(N), phosphorus (P) a.nd potassium (K). Fertilizers supplement the natural
deficiency as well as the depletion of nutrients. Organic manure (such as
cow dung) fulfils a small part of total nutrient requirement.
For optimum yield, a combination of fertilizers depending on the state
of soil, seed, crop, climatic conditions, etc is used. Excessive and! or
imbalanced use of fertilizers can adversely affect soil., Indian farmers, who
are generally uneducated, are not able to take a scientific decision on the
fertilizer mix from a long-term point of view. They use the cheapest mix.
This has' resulted in damage of soil quality due to excessive use of urea,
which is cheaper than P or K fertilizers. The key fertilizers used in India are:

Urea
which supplies around 83% of the total nitrogen requirement$. It is
manufactured from ammonia in ao en_f2rgy intensive process. Natural gas
is the preferred feedstock as it results in low variable cost compared to
naphtha. At present, only 50% of the total domestic capacity is gas based,
about 30% is based on naphtha and rest on fuel, oil and coal.

Single super phosphate

Supplies 19% of the total phosphatic nutrients. It is manufactured by
treating rock phosphate with sulphuric acid and calcium. Both rock
phosphate and sulphur are imported.

Di-ammonium phosphate
meets 50% of phosp_atic and 8% of nitrogenous nutrients. Rock phosphate
is the mairi' feedstock. Phosphoric acid is manufactured by , treating rock
phosphate"

with

sulphuric

acid.

It

is

then

reacted

with

ammoniatomanufactureDAP.
The integrated manufacturers have their own ammonia, phosphoric acid
and sulphuric acid plants, while sulphur and rock phosphate are imported.

Potassium fertilizers
are not manufactured in India due to the non-availability of the basic
feedstock. Muriate of potash (MOP) is imported from countries like Canada,
Jordan and Germany.
The dom_stic fertilizer demand was met largely by imports till the mid1970s. To reduce import dependence, the government implemented a
Retention Pricing Scheme (RPS) in 1977 to encourage domestic capacity
creation. Earlier, all fertilizers were under government control. However, in
1992-93, potassium and phosphatic fertilizers were deregulated.

The other companies prevalent in Punjab in this sector are:

COMPANYNAME

Allocation Under ECA

CHAMBAL FERTILIZERS

130000 Tonnes

FFCO aonla

100000 Tonnes

TATA CHEMICALS

30000 Tonnes

KRIBHCO

25000 Tonnes

GNVFC

21000 Tonnes

OSWAL CHEMICALS

15000 Tonnes

DUN CANS INDUSTRIES

10000 Tonnes

SRIRAM FERTILIZERS

10000 Tonnes

GSFC

10000 Tonnes

RCF thai

8000 Tonnes

One the reason for strong presence of kisan urea in Punjab is that it has,
the highest allocation under the ESSENTIAL COMMODITY ACT ( ECA ).
Then chambal fertilizers have the 2 highest allocation I then comes, " iffco
and- others follow in the order given above, ECA in a way puts a .
restriction on the competition between the companies. Bathinda plant being
located in Punjab and near the market its product is cheaper in the market.
the transportation cost is the major factor in the reason for the' low price of
the kisan urea produced by NFL.

NFL A PROFILE
COMPANY PROFILE
PLANTS
PRODUCTS
MARKETING STRUCTURE
FINANCIAL PERFORMANCE

NFL A PROFILE

National Fertilizers Limited, (NFL), a leading producer of Nitrogenous

Fertilizers in India, was incorporated on 23rd August, 1974 with two
manufacturing Units at Bathinda and Panipat. Subsequently, on the
reorganization of Fertilizer group of Companies in 1978, the Nangal Unit of
Fertilizer Corporation of India came under the NFL fold. The Company
expanded

its

installed

capacity

7.26

lakh

Mts.

installing

and

commissioning its Vijaipur Gas based Plant in Madhya Pradesh.

The Vijaipur Plant was a land mark achievement in project management in
India. The Plant was completed well within time and approved project cost,
in recognition of which it was awarded the 1st price in Excellence in Project
Management by Govt. of India. Subsequently the plant doubled its capacity
to 14.52 lakh Mts by commissioning Vijaipur" Expansion Unit in 1997.

NFL, a profitable public sector undertaking operates administrative control

of the Deptt. of Fertilizers in the Ministry of Chemicals & Fertilizers .
NFL, a Mini Ratna :Category-I Company, is a market leader in the
fertlizer industry with a market share of 12.6%. The Company's strength
lies in its sizeable presence, professional marketing team and its strong
distribution network nationwide.
Urea is an essential commodity under the Essential Commodities Act,
1955.
The Deptt. of Fertilizers plans and monitors the production, import and
distribution of fertilizers and management of subsidy for indigenous and
imported fertilizers.
NFL enters into a Memorandum of Understanding (MoU) with the
Govt. under which the Govt. undertakes to assist NFL with regard to
availability of inputs, expeditious processing of projects proposals and
clearance by environmental authorities, and in obtaining of ECA allocations,
commensurate with the availability of fertilizers from NFL plants. NFL on its
part, undertakes to adhere to its production and movement plans, achieve
its Essential Commodities Act allocation and provide regular feed back to
the controlling department.
NFL's

leading

product

is

Kisan

Urea.

The

Company

also

manufactures and markets Kisan Khad (CAN), bio-fertilizers and a wide

range of Industrial Products. In addition, NFL with a large & excellent
technical manpower base has made a mark in exporting its specialised
services in india,andabroad.

NANGAL PLANT
National Fertilizers Limited
Naya Nangal
Distt. Ropar
Punjab-140126

Plant

Installed
capacity

Commercial
Production

Cost of
Project

CAN

318160

22 Feb. 1981

31 Cr.

UREA

330000

Nov. 1978

132.50 Cr.

Heavy water

14.11

19 Aug 1962

Methanol

16.50

1984

BATHINDA PLANT
National Fertilizers Limited
Sibian Road
Bathinda
Punjab-151003

Zero date by the Govt.

26-09-74

commencement of production

Jan 1988

Location

8 kms. West of
Bathinda

Urea

155000 MT

Ammonia

297000 MT

Sulpher

8750 MT

PRODUCTS OF NFL

KISAN UREA
Kisan Urea is a highly concentrated, solid, nitrogenous fertilizer, containing
46.0%. It is completely soluble in water hence Nitrogen is easily available
to crops. It contains Nitrogen in amider form which changes to ammonical
forms and is retrieved by soil colloides for longer. duration. Urea is
available in granular form and can applied by drill and broadcasting.
Kisan Urea is ideally suitable for all types of crops and for foliar spray which
instantly removes nitrogen deficiency. Kisan Urea also has a strong and
long lasting effect on crop resluting in bumper crops Carbonic acid present
in Kisan Urea helps in absorption of other nutrients like phosphate and
Potash by roots of crop.

FOOD GRAINS
Rice
Wheat
Millets
Jawar
Bajra
Maize
HORTICULTURE
Apple
Banana
Grapes
Mangoes
Orange
Papaya
Pineapple

CASH CROPS
Sugarcane
Cotton
Jute
Fodder

VEGETBLES AND OIL SEEDS

Castor
Cotton Seeds
Groundnut
Mustard
Sunflower
Sesame
Soyabeen
Onion
Potatoes
Tomatoes
Mushroom
Cabbage
Cauliflower

KISAN KHAD
prOduce_he Nangal UiJit in Punjab, NFL's. Kisan Khad is Calcium Amonia
Nitrate (CAN) Nitrogenous fertilizer, contains 25% nitrogen, half. of which is
Ammonical form and half in Nitrate form. Availability of nitrogen in two form
in Kisan Khad help crops to meet its initial and long term Nitrogen
requirements and is unique feature.
Kisan Khad is Marketed all over India
ANKUR
1. Ankur is a non pressure liquid fertilizer having 32% nitrogen
2.ankur has nitrogen both in ammonical and nitrate form which is
immediately available and has long lasting effect.
3. it is a pale yellow solution with a specific gravity 1.3 , it can stay
as liquid even below 2 degree C.
4. it can be applied uniformity both basal as well as top dressing.
5. it can be mixed and applied with micro nutrients, weedicides and
insecticides etc. ' '.
6. it can be applied and sprayed with commonly used equipment by
farmer. It can also be broadcasted and applied through irrigation
water.
INDUSTRIAL PRODUCTS ARE:
Ammonia, Liquid nitrogen, Carbon slurry, Nitrogen gas, Heavy water, liquid

oxygen) oxygen gas, sulphur, Methanol. .

Marketing organization comprises of central marketing office, zonal office,

regional office, & district office. The functions of the offices are as follows:
MARKETING ORGANISATION
CMO:

sales planning,

preparation of

capital expenditure budget,

promotional budget and strategy, co ordination of movement and

warehousing, recruitment and management of dealers network, supervision
of activities of field officers, reporting on competitors activities, training of
field'. staff, dealers etc. preparation of reports for submission to govt.
departments

including

FICC,

liason

with

railways,

insuring

the

implementation of system and procedure at different levels, liason with

ministry on supply plan, ECA allocation are the following plans which CMO
performs.
ZONAL OFFICE: sales planning for zone, coordination with the plans for
the movement, preparation of zonal budget, implementing promotional
programmes as per approved budgets, credit control and cash floeJinput .
organizing training for field staff as well as dealers. Insure timely and
proper form of information in sales market.
REGIONAL OFFICE: preparation of sales and warehousing plan,
coordination and supervision of marketing activities. of regional office,
management of dealer network, keeping tracks of stocks. To comply the
state govt. procedures on time and renewal of fertilizer registration
certificate.

AREA OFFICE: preparation of sales and warehousing plans, order

solicitation, sale movement, execution of sale order, collection of payment.
development and management of dealer network. warehousing inspection,
reports and returns on sales, competitors promotional activities etc. to the
regional office.
DISTRICT

OFFICE:

sales

planning,

procurement

of

sales

order,

preparation of sale indent, execution of sales order, collection of payments,

warehousing inspection, development of dealer network, taking up
promotion acfivities as per programme. maintaining liaison with district
authorities, railways and institutional agencies. Submission of reports
concerning all aspects of marketing in the area. Liaison with. district govt.
official, warehousing inspection and standardization of. damaged material.
The marketing network of NFL is coordinated by three zonal offices at
Bhopal, Lucknow and Chandigarh and centrally controlled by office at New
Delhi.
The Chandigarh zonal office caters to state of Punjab, Haryana, Himachal
pradesh, Rajasthan and J & K.
The Bhopal office caters to M.P, Maharashtra, A.P., Orissa, Karnatka and
Tamil nadu.
The Lucknow office caters to U.P., Bihar and West Bengal. the company
has an edge over other in marketing since three of the four plants of the
company are located in the states of Punjab & Haryana.

Distributors of NFL
Co - operatives
The organizational step for the distribution of fertilizer in the co-operative
sector varies from state to state, although it is generally a three tier system
with the apex' state marketing federation functioning as the cooperative
marketing societies acting as sub wholesaler at the taluka at mandi, which
in turn lir)ked to a number of primary agricultural credit/service societies at
the village level. it is village level primary co operative perform the true
velating function and are in direct contract with famers. In Puniab it is
MARKFED through which it sells its urea.
State agro industries:
,
Agro industries development corporation have been setup in various
states to act as principal organizations for the development of agro based
activities. The activity' of these corporations also include marketing of
agriculture inputs such as fertilizers, pesticides, tractors & other agro
implements. Fertilizers is being distributed by. these.
organizations through' private dealers in same of the state such as Punjab,
U.P. these organizations have achieved good recognition in the distribution
of fertilizer. In Punjab it is PUNJAB AGRO INDUSTRIES CORPORA TIO N
L TD , Chandiaarh throuah which it sells its Qroduct.
Private dealers: these are the private distributors or wholesalers through
which it sells its product.

SEASONAL AGREEMENT
NFL enters into 6 month agreement with institutional agencies ( for rabi &
kharif ) regarding terms and conditions for sale of NFL fertilizer. The
agreement broadly covers various supply terms such as:
1. sales plan
2. stocking plan
3. handling and stocking plan margin and rebates'\ mode of payment
DEALERS NETWORK OF NFL
As per the government guidelines efforts are made ,so that the fertilizer
sold to the extent of 50% through institutional agencies, and," balancing
being distributed through private distribution channel ,comprising of:
1. small scale traders (SST)
2. ex- serviceman (EX-SM)
3. schedule cast and schedule tribe (SC/ST) entrepreneur development
scheme (EDS) multipurpose distribution centers (MPDC)

Marketing Plan
Marketing based on sound database forms nucleus of all marketing
activities. Development of sales plans and fixation of targets is the major
exercise I for which following factors are taken into consideration.
1. ECA allocation for the states
2. trends and projections of consumption.
3. requirement at macro and micro levels.
I
4. efficient and economic movement of fertilizers so as to ensure their
timely availability on the door steps of the farmers.
5. expansion and development of the market and to increase market
share by efficient and effective distribution system.
6. adequate supply of fertilizers along with other agro inputs in dry
land and low consumption areas.
Marketing strategy of NFL
The marketing strategy of NFL is based on the following objectives.
1. to evolve an effective fertilizer marketing! distribution system.
2. to educate farmers regarding balanced and judicious use of. fertilizers
with complete scientific package of practices.
3. to create and maintain image of organization and its products.
4. to carry out extensive marketing activities to ensure growth of
market

LOCATION OF NFL OPERATING PLANTS & ITS

MARKETING TERRITORY
IN THE YEAR 2003

MARKET SHARE OF NFL AND OTHER COMPANIES

Percentage share of NFL in Ferty (N)
Production of the country
2003-2004

PROFIT/LOSS AT BATHINDA UNIT OF NFL

YEAR
1990 - 91

PROFIT/LOSS ( in lakhs )
353.43

1991 - 92

1357.08

1992 - 93

1233.91

1993 - 94

8124.00

1994 - 95

6524.00

1995 - 96

1553.00

1996 - 97

- 3380.00 ( loss )

1997 - 98

5359.00

1998 - 99

- 2791.71 ( loss )

1999 - 00

- 142.63 ( loss )

2000 - 01
2001-2002
2002-2003
2003-2004

- 2666.44 ( loss )
-3352 (loss)
113
60.42

COMPARISON OF PRODUCTION & DESPATCH AT BTI UNIT

YEAR

PRODUCTION (in MT)

Despatch ( in MT)

1990 - 91

4,03,855

4,01,475

1991 - 92

5,41,500

5,40,556

1992 - 93.

4,90,205

5,01, 492

1993 - 94 ..

5,11,630

5,02,627

1994 - 95'

5,30,295

5,37,495

1995 - 96

5,31,045

4,88,334

1996 - 97 .

3,85,257

4,08,524

1997 - 98

5,67,367

5,66,341.35

1998 - 99

5,03,710

5,10,008. 65

1999 - 00

5,43,345

5,06,242. 25

2000 - 001

4,78,600

5,06,590. 65

2001-2002

514130

511241

2002-2003
2003-2004

511951
511500

511489
511500

OBJECTIVES
There are certain objectives in the mind of a trainee which he has to
achieve during his summer training and for the project undertaken.
Objectives show a route on which we have to procede. Mine objectives
were.
#. To have some practicql knowledge of marketing.
#. To have a look into the market of NFL in the areas under the Bathinda
area office.
#. Also to know why sale of kisan urea is less in the kharif season.
#. Where does the kisan urea stands in the market in terms of
advertisement, promotional activities and price.
#. What is the view of the ultimate consumer about the product kisan urea.

RESEARCH MEHODOLOGY
Research methodology is simply the procedure one has adopted during his
research namely the research design, data collection method, '. sampling
plan, sample size, sample size, field work, analysis and

interpretation,

limitations, scope.
RESEARCH DESIGN
An exploratory research design is used in this project which is " marketing
of kisan urea produced by NFL .. the reason being because as exploratory
design is to find out the problems. so my main aim was to know any such
problem in the marketing of NFL.
DATA COLLECTION
Primary data
70010 of the data collected is primary data which was collected from the .
dealers & retailers of the company by the way qf filling the questionnares
and personel interview.
Secondary data
30 % of the information collected is secondary in nature which is collected
from company records and internet.

SAMPLING PLAN
Sample unit
All the dealers and retailers who sell kisan urea were surveyed.
Sample size
Sample size was 50 which included the dealers from the districts of
Bathinda & Mukatsar which come under the Bathinda area manager.
Sampling media
The medium used to reach the sample size was bus & motor bike.
FIELD WORK
In my all the 8 markets Raman, Maur, Rampura, Bathinda, Goniana under
Bathinda district and Malout ,Gidderwaha & Mukatsar under Mukatsar
district were surveyed. a questionnare was prepared and was filled by each
and every dealer of each ttbthe 8 markets .1 also had a personal talk with
the dealers to know more about fertilizers and what it is all about. A copy of
questionnaire is attached at the end.
LIMITATIONS
"#. According to NFL policies the concerned authorities are not authorized
to provide any financial help to project researcher on summer training. it
was difficult to visit wide market of ferilizer on ones own expense.
#. It is a one man study so it was not possible to cover large no. of
districts in Punjab state.
#. The response of the dealers was satisfactory not so encouraging.

RESPONDETS OR DEALERS
IN BATHINDA DISTRICT
RAMAN (8)
MIs Mangat rai dev kumar
Mis FatUla trading Co.
Mis Sat pal Raj pal
Mis Vishnu khad bhandar .
Mis Des raj jugall<ishore
MIs Rama khad bhandar
Mis Kalra agro sales ,
MIs Raja ram sam prakash

DATA ANALYSIS & INTERPRETATION

Table no. 1
Consumer opinion on Qualitv of kisan urea
Area/factor

satisfactory

Good

Bathinda

Need for
Improvement
32

total
32

consumer opinion on quality of kisan urea

compared to other brands in BTI distt.

0%
Satisfactory
Good
need
formprovement
100%

INTERPRETATION: As from the above fig. We can see that the consumer
opinion on quality of Kisan urea compared to other brands is that there is
need for improvement. the reason for this data I found out during my
interaction in the market was that there is powder in the Kisan urea 'and its
granules are small compared to other brands.

Table no. 2
Consumer opinion on Quality of kisan urea
Area/factor

satisfactory

Good

Muktsar

Need for
Improvement
32

total
32

consumer opinion regarding quality of

kisan urea compared to other brands
in MKT distt.- .
0%
Satisfactory
Good
need
for improvement

INTERPRETATION: as from the above fig. We can see that the consumer
opinion on the quality of kisan urea compared to other brands in Mukatsar
distt. Is same as in the Bathinda disti, that is need for improvement. the
reason is same that there exists powder in the urea and its granules are
small in size compared to other brands.

Table no. 3
Area/fa cto r

Satisfactory

Qood

Raman

Need for
improvement
8

Maur

Bathinda
Rampura
Goniana
Malout

0
0
0
0

0
0
0
0

5
2
9
8

5
2
9
8

Gidderwaha

Mukatsar

total

50

50

Total
8

comparison chart

9
8
7

satisfactory

6
5

Good

4
Need for
improvement

3
2
1
0

raman

maur

bathinda

rampura

goniana

malout

gidderbaha

muktsar

INTERPRETATION: in every market of each distt. Compared the response

in regard to quality is same i. e need for improvement.

Table no. 4
Factor influencing purchase of kisan urea
Area
Bathinda

price
28

Quality
0

Brand loyalty
4

Total
32

factor influencing purchase of kisan

urea in bathinda distt.
price
quality
brand loyalty

87%

INTERPRETATION: As from the above fig. We can see that price with
87% is sole important factor influencing the purchase of Kisan urea in
Bathinda distt. The reason _or this I found out during my interaction in the
market may be it is the cheapest urea in the market, brand loyalty is a
factor to a little extent. with the next brand being 3-4 Rs. Expensive

Table no. 5
Factor influencing purchase of kisan urea
. Area/factor
Mukatsar

price

Quality

Brand loyalty

15

Total
18

factor influencing purchase of kisan

urea in mukatsar distt.

Price
Quality
Brand

83%

INTERPRETATION: as from the above fig. We can see that price with 83%
is the sole important factor influencing the purchase of kisan urea in
Mukatsar distt. The reason for this I found out during my interaction in the
market may be it is the cheapest urea in the market, brand loyalty is a
factor to a little extent. with the next brand being 3-4 Rs. Expensive

Table no. 6
Area/factor
Raman

price
7

quality
0

Brand loyalty
1

Total
8

Maur

Bathinda

Rampura

Goniana

Malout

Gidderwaha

Mukatsar

total

43

50

comparison chart

8
7
6
5

price
Quality
Brand Loyalty

4
3
2
1
0

raman

maur

bathinda

rampura

goniana

malout

gidderbaha

muktsar

INTERPRETATION: As above fig. Is. comparison chart showing every area

in each of the two distt. As we can see in each market price is sole
important factor influencing purchase of kisan urea by the consumer.

Table no. 7
Season in which sale of kisan urea is more
Area/season
Bathinda

Kharif
a

Rabi
32

Total
32

Season in which sale of kisan urea is

More in Bathinda distt.
0%

Kharif
Rabi

100%
INTERPRETATION: as from the above fig. We/can see that the sale of
kisan urea is more in rabi season than in kharif season in Bathinda distt.
The reason for this I found out during my interaction in the market may be
that the consumption of urea is double in rabi season for crops like . wheat
and the other reason is that the powder in the kisan urea harms the cotton
crop which is the main crop of kharif season.

Table no. 8
Season in which sale of kisan urea is more
Area/season
Mukatsar

Kharif
0

Rabi
18

Total
18

season in which sale of kisan urea is

more in mukatsar distt.
1%
Kharif
Rabi

INTERPRETATION: as from the above fig. Wf3 can see that the sale of
Kisan urea is more in rabi season than in kharif season in Mukatsar distt.
The reason for this I found out during my interaction in the market may be
that the consumption of urea is double in rabi season for crops like wheat
and the other reason is that the powder in the kisan urea harms the cotton
crop which is the main crop of kharif season.

Table no. 9
Area/season
Raman

Khaif
0

Rabi
8

Total
8

Maur

Bathinda

Rampura

Goniana

Malout

Gidderwaha

Mukatsar

total

50

50

comparison chart

9
8
7
6
5
4
3
2
1
0

Khaif
Rabi

raman

maur

bathinda

rampura

goniana

malout

gidderbaha

muktsar

INTERPRETATION: the above fig. Shows each market of each of the two
distt. We can see that in each market sale of kisan urea is more in . Rabi
season compared to kharif season, the reasons are same.

Table no. 10
Type of packing preferred
Area/packina
BaLhinda

Jute baa
0

Poly baa
32

Total
32

type of packing preffered in bathinda distt.

jute bag
0%
Kharif
Rabi

poly bag
100%

INTERPRETATION: As from the above fig. 'l'{e can. see that type of
packing of kisan urea preffered by consumer in Bathinda distt. is poly bag
with 100% votes. the reason for this preference I found out during my
interaction in the market is that the empty poly bag can be put to uses like
making of tarpal, pallis etc. jute bag cant be put to these uses.

Table no. 11
Type of packing preferred
Area/packinq
Mukatsar

Jute bag
0

Poly baq
18

Total
18

type of packing preffered in mukatsar distt.

jute bag 0%

Kharif
Rabi

poly bag 100%

INTERPRETATION: As from the above fig. We can see that type of

packing of kisanurea" preferred by consumer in Mukatsar distt. is poly bag
with 100% votes. the reason for this preference I found out during my
interaction in the market is that the empty poly bag can be put to uses like
making of tarpal, pallis etc. jute bag cant be put to these uses.

Table no. 12
Area/packinq

Jute baq

Poly baq

Total

Raman

Maur
Bathinda
Rampura

0
0
0

8
5
2

8
5
2

Goniana

Malout

Gidderwaha

Mukatsar

total

50

50

comparison chart
9
8
7
6
5
4

Jute Bag
Poly Bag

3
2
1
0

raman

maur

bathinda

rampura

goniana

malout

gidderbaha

muktsar

INTERPRETATION: As from the above fig, We can see that in every

market of each of the two distt. Poly bag of kisan urea is preferred over .
jute bag. the reasons are same that it could put to use afterwards also

Table no. 13
Other competitive brand of urea
Area/brand
Bathinda

IFFCO
13

Uttam
13

Sardar
6

total
32

Other competitive brand of urea in

Bathinda distt.
IFFCO
UTTAM
SARDAR

"
INTERPRETATION: as from the above fig. We can see that iffco and uttam
are the most competitive brands for Kisan urea in Bathinda distt. with each
getting 40% votes. The reason for this I found out during my interaction in
the market may be that they have better quality, there is not much diff. In
the price upto 3-4 Rs. And also after NFL they both have the highest
allocation under ECA respectively.

Table no. 14
Other competitive brand of urea
Area/brand
Mukatsar

iffco
8

uttam
9

sardar
1

Total
18

other competitive brand of urea in

mukatsar distt.
sardar 6%

IFFCO 40 %

INTERPRETATION:as from the above fig. We can see that uttam with 50%
and iffco with 44% are two most competitive brands for kisan urea in
Mukatsar distt. The reason for this I found out during my interaction in the
market may be that they have better quality I there is not much ditto In the
price upto 3-4 Rs. And also after NFL they both have the highest allocation
under ECA respectively.

Table no. 15

TOTAL

Area/packinq

IFFCO

UTTAM

SARDAR

Raman

Maur
Bathinda
Rampura

1
1
0

6
2
2

1
2
0

Goniana

5
2
9

Malout

Gidderwaha

Mukatsar

total

21

22

50

comparison chart
6
5
4

IFFCO
UTTAM
SARDAR

3
2
1
0

r a ma n

ma ur

ba t hi nda

r a mpur a

go ni a na

ma l out

gi d de r ba h a

mu k ts a r

INTERPRETATION: if we see each market of each of the two, distt, Iffco ,

has more presence in Raman I Goniana and Malout whereas uttam is in
Maur, Rampura, Gidderwaha & Mukatsar . sardar has its presence in
Bathinda only.

Table no. 16
Strongest brand in adv. & promotion

Strongest brand in adv &

promotion in bathinda distt.
13%

49%
38%

Kisan
Iffco
Uttam

INTERPRETATION: As from the above fig. We can see that uttam with
49% yes is the strongest brand followed by iffco regarding adv. &
promotion, kisan is weakest with 13% in Bathinda distt. the reason for . this
as I found out during my interaction in the market may be that it is the
cheapest brand & it is upto the dealer to sell it. There fore no need of adv. &
promotional activities.

Table no. 17
Stronaest brand in adv. & promotion
Area/brand

kisan

iffco

utta m

Total

. Mukatsar

18

strongest brand for advertisement/promotional activities in MKT d istt.

Uttam

Strongest brand in adv &

promotion activities in muktsar
district.
17%
50%
33%

Kisan
Iffco
Uttam

INTERPRETATION: As from the above fig. We can see that uttam with
50% & iffco with 330/0 are the two strongest brands in Mukatsar distt.
Regarding adv. & promotional activities. Kisan is weakest with 13% the
reason for this as I found out during my interaction in the market may be
that it is the cheapest brand & it is upto the dealer to sell it. There fore no
need of adv. & promotional activities.

RESULTS & FINDINGS

#. In every market under Bathinda and Mukatsar district the response is totally
in favour of improvement in the quality of kisan urea, as it contains powder
compared to other brands. The quality is worst compared to other brands.
#. Kisan urea is the cheapest brand available in the market so price is the
only factor influencing purchase behaviour. there is very very little brand
loyalty for kisan urea.
#. Sale of kisan urea is almost double in the rabi season compared to kharif
season because the powder in kisan urea harms the cotton crop of kharif
season.
#. Consumers prefer poly bag packing because it could be used
afterwards to make tarpal and pallis.
#. The main competitors of kisan urea in the., market are iffco and uttam
because there quality is better and price is reasonable.
#. There is no adv. and promotional activities by NFL for kisan urea.
#. Retailers in the market of Goniana and Bathinda are not satisfied with
the distribution system of NFL they are damaging the image of NFL.
#. Improvement in quality and cash payment system are two major
marketing support dealers like to have to increase the market of NFL.

CONCLUSION
It was a fruitful experience during my training at NFL. the main things I
came to know during my training is that NFL is the largest producer of urea
in the country and highest allocation under ECA in Punjab. it has a
wholesale distribution system. its urea is the cheapest urea available in the
market because the plant is max. 70. kms away from its markets, so
transportation cost is less. It has 4 plants in the country, its marketing
network is good.
If both districts of Bathinda & Mukatsar are
compared in Bathinda district retailers are not happy with the distribution
system. as far as the quality is concerned the response is same from both
the districts Le need for improvement, similar is the verdict for the
promotional programmes and activities. cheapest price of kisan urea
emerges as the sole element of marketing by the NFL that makes it stay in
the market.
NFL has to improve its., quality to create goodwill "among the farmers
and retailers and also the company is lacking in promotional programmes
in comparison to its. competitors.
Then only it _an become a true NATIONAL company.

SUGGESTIONS & RECOMMENDATIONS

#. One the main reason for the weak market of NFL is the quality of its
kisan urea', NFL should improve its quality, no powder & increase in
size of its granule to improve its market position,
#. To improve the ..Image in the minds of the retailers the company should
have a standard margin in each and every market.
#. NFL should organize farmer meetings and camps to tell if there are. any
steps taken to improve the quality and how to make the optimum'. use
of urea..
#. NFL should introduce promotional schemes like free gifts inside the
bags etc to boost the sales.
#. NFL should have some amount of control on its distributors to stop the
bad practice started by the distributors of selling the urea at the' same
price both tp the retailer as well as the consumer. Distributors should be
increased in the areas where there is only one to stop such practices,
#, The govt. should reduce the allocation of urea to the company,

QUESTIONNARE
1. Name of the firm_______________
,2. Which other brands you sell ?
3. Consumer opinion regarding quality of kisan urea compared to other
brands?
a) satisfactory
b) good
c) need for improvement
4. Factor influencing purchase ofkisan urea by the consumer?
a) price
b) quality
c) brand loyalty
5. In which season sale ofkisan urea is more?
a) Kharif
b) Rabi
6. Type of packing consumer prefers?
a) Jute bag
b) Poly bag
7.Which is the most competitive brand for Kisan urea?
a) IFFCO
b) Uttam
c) Sardar
8. Strongest brand regarding advertisement /promotional activities?
a) Kisan
b) IFFCO
c) Uttam

9. Dealer opinion on distribution system of Kisan urea?

a) satisfied

b ) not satisfied

",

10. Does company supports in promoting Kisan urea?

a) Yes

b) No

11. Annual turnover from urea and what is share of kisan urea?
12. What type of additional marketing support you would like to have?
a) credit

b) cash payment system c) quality

d) margin