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INTERNSHIP PROJECT REPORT ON “Perception of farmers towards RCF at Sangli Region” At Rashtriya Chemicals & Fertilizers Limited” Submitted to Rashtriya chemicals and fertilizers ltd Mr. H.S.K. Tangirala (Director and Project Guide) Centre for Management Education Udaybhansinhji Regional Institute of Cooperative Management, Gandhinagar- 382030, Gujarat. (Ministry of Agriculture, Government of India) 1 | Page

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Page 1: final vaibhav rcf

INTERNSHIP PROJECT REPORT

ON

“Perception of farmers towards RCF at Sangli Region”

At

“Rashtriya Chemicals & Fertilizers Limited”

Submitted to

Rashtriya chemicals and fertilizers ltd

Mr. H.S.K. Tangirala (Director and Project Guide)

Centre for Management Education

Udaybhansinhji Regional Institute of Cooperative Management,

Gandhinagar- 382030, Gujarat.

(Ministry of Agriculture, Government of India)

Submitted By

Mr. Vaibhav Mohite

Roll Number- 1511

Submitted in partial fulfillment of the requirement for the award of the

degree of

Post Graduate Diploma in Management – Agri. Business Management

BATCH- 2015-2017

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Rashtriya chemicals and fertilizers ltd.

RCF Colony, Chembur, Mumbai, Maharashtra 400071Phone:022 2552 2000

“PERCEPTION OF FARMERS TOWARDS RCF AT SANGLI REGION”

Submitted By

Mr. Vaibhav Mohite(Summer Internship May-June 2016)

Udaybhansinhji Regional Institute of Cooperative Management,Gandhinagar, Gujarat.

(Ministry of Agriculture, Government of India)

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PREFACE

Practical study plays a vital role in the field of education. How management principles are

implemented in business can only be known through practical study, students can be very well

aware about industrial environment like problems, opportunities, different situations etc. this

helps the student for better understanding and also gives them a chance to show their skills and

ability.

PGDM (Agri. Business) is the stepping stone to management career. In order to achieve

practical, positive and concrete result, the classroom learning has to be effectively supplemented

in relation to the situation existing outside the classroom for developing healthy managerial and

administrative skills in a potential manager. It is necessary that the theoretical knowledge must

be supplemented with exposure to the real environment. The report comprises all the important

aspects of my training and all the aspects have been presented under different headings in the

fourth coming pages. An attempt has been made to present a report covering different aspects of

my training. This report would not have been possible in present form without the support and

guidance that I received from various people at different stages of the project.

This report shows light on one of the key sector of Economy. I have prepared this project with

the help of collective information sustaining the theoretical principles. I have gone through all

the practical aspect of our research and the same has been depicted in this report. The report is

prepared in such a manner which can give comprehensive and relevant information about the

role of RCF Ltd. in the production of RCF especially with respect to the perceptions of farmers

and the other textile industries.

This report is submitted with a hope of fulfilling the entire requirement as per the rules and

regulation.

Mr. Vaibhav Mohite

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ACKNOWLEDGEMENT

I am highly overwhelmed while expressing my sense of gratitude towards all those who have

helped and guided me during the course of this project. I extended my heartiest thanks to

Rashtriya fertilizers and chemicals Limited for giving me such an opportunity for strengthen my

domain of knowledge.

I express my profound sense of gratitude and heartiest respect to Mr.Sanjeev Doshi (Chief

Manager HRD) RCF Ltd. and Mr. Bireshwar Banarjee (Senior Manager) RCF Ltd. For their

inspiring and affectionate guidance, concrete suggestion, unending benevolence and constant

encouragement during the course of this project and in the preparation of this report.

I extend my sincere thanks and deep sense of gratitude to all organization those have helped me

in getting the information about my project.

I feel immense pleasure in expressing my sincere and profound sense of gratitude to Mr. H.S.K.

Tangirala (Faculty Guide & Director, URICM) for his encouragement and guidance throughout

the project. I also express my deep and earnest regards to Mrs. Neelu Pandey (Programme

Director), PGDM-ABM, URICM, Gandhinagar for providing the necessary information during

the course of this project.

I owe a great deal to URICM, for laying the building block of logic and pragmatism in our lives.

This report in a way is a reflection of these values. The organizational traineeship Segment

(OTS) provided me with a unique opportunity of working with an organization. At last but not

least, I would like to thanks to my family and friend Ms. Nidhi Sharma for her kind and

continuous support.

VAIBHAV MOHITE

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DECLARATION

The undersigned, a student of Post Graduate Diploma in Management (Agri Business) 2015-

2017, Udaybhansinhji Regional Institute of Cooperative Management, Gandhinagar, Gujarat,

hereby declare that I have completed the Internship Project Report titled “Perception of farmers

towards RCF with the designation of Marketing Intern as a part of the course requirements for

PGDM (Agri- Business Management).

I also declare that the work undertaken by me is original and has not been copied from any

sources. I further declare that the information presented in this project is true and original

knowledge and has not been submitted any other Institute for any other examination.

Signature of the Student

Date:

Name of the Student: Mr. Vaibhav Mohite

Roll No.: 1511

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CERTIFICATE

This is to certify that, Mr. Vaibhav Mohite is a student of Post Graduate Diploma Management in

Agri-Business Management (2015-17), URICM, Gandhinagar, has completed the two months

Internship from 1st May to 30th June 2016 and Internship Report titled “Perception of farmers

towards RCF in sangli district” with the designation of Marketing Intern as a part of the course

requirements for PGDM (Agri Business Management).

Signature of the Faculty Guide

Name: H.S.K Tangirala

Director/Project Guide

URICM, Gandhinagar

Date:

Place:

No. of working hours

Month Dates No. of working

hours

Total hours

May 2nd to 31st 8 hrs. 176

June 1st to 30th 8 hrs. 176

TOTAL 352

Total 352 working hours were completed.

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EXECUTIVE SUMMARY

Project Title: titled “Perception of farmers towards RCF in sangli district”

Organization: Rashtriya chemicals and fertilizers ltd. Mumbai

Student Name: Mr. Vaibhav Mohite

Faculty Guide: H.S.K. Tangirala (Project Guide & Director)

Reporting Officer: Dr. Bireshwar Banarjee

Period: 1st May 2016 to 30th June 2016

Area: Sangli

Objectives:

To know farmers satisfaction towards RCF at Sangli, Maharashtra. To identify the farmers using RCF products in sangli region.

To know farmer perception towards RCF.

To check the customer loyalty towards the products of RCF.

To study the problems regarding fertilizers among farmers.

To study the suggestions of farmer for increase a marketing.

To provide conclusions and suggestions.

Targeted Area: Sangli, Maharashtra

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A Decision-Making Perspective on Marketing Research:

"Marketing research is not an immediate or an obvious path to finding solutions to all

Managerial problems."

Marketing is the process of planning and executing the conception, pricing, promotion, and

Distribution of ideas, goods, and services to create exchanges that satisfy individual and

Organization objectives. The marketing concept requires that customer satisfaction rather

Than profit maximization is the goal of an organization. In other words, the organization should

be consumer oriented and should try to understand consumers' requirements and satisfy them

quickly and efficiently, in ways that are beneficial to both the consumer and the organization.

This means that any research organization should try to obtain information on Consumer needs

and gather marketing intelligence to help satisfy these needs efficiently.

Marketing research is a critical part of such a marketing intelligence system; it helps to

improve management decision making by providing relevant, accurate, and timely (RAT)

Information every decision poses unique needs for information, and relevant strategies can be

developed based on the information gathered through marketing research in action. Too often,

marketing research is considered narrowly as the gathering and analysing of data for someone

else to use. Firms can achieve and sustain a competitive advantage through the Creative use of

market information. Hence, marketing research is defined as information input to decisions, not

simply the evaluation of decisions that have been made. Market research alone, however, does

not guarantee success; the intelligent use of market research is the key to business achievement.

A competitive edge is more the result of how information is used than of who does or does not

have the information. It includes the various steps that are generally adopted by researcher in

studying his Research problem along with the logic behind. There are two methods of data

collection primary and secondary.

Primary data are those which are collected afresh and for first time and thus happen to be

original in character. The Secondary data are those which have already been collected by

someone else and which have already been passed to statistical process.

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Primary Data:

Observation method

Interview method

Through Questionnaire

Secondary Data:

Publications of central, state and local governments

Technical and trade journals

Books, magazines and newspaper

Public records and statistics

Company records

In this particular project, the data being collected is of primary type. Following is the primary

That has been collected:-

Observation

Questionnaire

Interview

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INDEX

Preface…………………………………………………………. Acknowledge………………………………………………...... Declaration Certificate………………………………………… Executive Summery……………………………………………

Chapter No Particulars Page No 1 Introduction 13-20

1.2 Importance of the study

1.3 Scope of the study

1.4 History

1.5 Research methodology

2 About company 21-38

2.1 Introduction of company

2.2 RCF product range

2.3 Sustainability at RCF

2.4 History of RCF

2.5 Achievements

2.6 Future plans

2.7 SWOT analysis

2.8 Research and developments

2.9 Corporate social responsibilities

3 Data analysis 39-50

3.1 Education of farmer

3.2 Age of farmer

3.3 Income of farmer

3.4 Total land holding of farmer

3.5 Crops which farmers cultivate

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3.6 Mode of payment

3.7 Total expenditure on fertilizers

3.8 Technical guidance from experts

3.9 Awareness of RCF

3.10 Which single company comes in mind of farmers

3.11 Source which from you aware about the RCF

3.12 Availability of fertilizers

3.13 Use of RCF fertilizers in next season

3.14 Feedback of price

3.15 Farmers having problems or not from RCF

4 Findings and suggestions of the study 51-53

Conclusion………………………………………. Annexure………………………………………... Bibliography………………………………………

LIST OF GRAPHS

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NO. OF GRAPH

GRAPH TITLES PAGE NO

3.1 Personal information

3.1.1 Education of the farmer 39

3.1.2 Age of the farmer 40

3.1.3 Income of the farmer 41

3.1.4 Total land holdings of the farmer 42

3.1.5 crops which farmers cultivate in their area 42

3.1.6 mode of payment while purchasing fertilizers 43

3.1.7 Total expenditure on fertilizers 44

3.1.8 Technical guidance from experts, friends, ASC 45

3.2 About awareness of RCF fertilizers

3.2.1 Awareness of RCF 45

3.2.2 Which single company comes in mind of customers 46

3.2.3 Source from which farmers aware from the RCF 47

3.2.4 Availability of RCF fertilizers 47

3.3 Customer loyalty

3.3.1 Use of RCF fertilizers in next season 48

3.4 About farmers satisfaction

3.4.1 Feedback about pricing of RCF 49

3.5 Problems faced by farmers

3.5.1 Farmers having problem or not from RCF 50

CHAPTER 1

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INTRODUCTION

1.1 INTRODUCTIONLooking back at 5,000 years of recorded world history reveals two important facts about human

nature. First, human beings possess limitless potential for compassion, innovation and

achievement. Secondly, these qualities are brought to full bloom where and when people have

access to healthy food.

Experts estimate that there will be more than nine billion people on our planet by 2050. That’s

nearly three billion more people than are alive today. People from all walks of life with all kinds

of ideas, but who share one common challenge: each will experience hunger, requiring food to

survive. Fertilizer has played—and will continue to play—a key role in meeting this eternal

challenge.

“Fertilizer” and “plant food” are terms used to describe additives that increase soil’s fertility—its

capability of producing abundant crops. Nutrients are substances providing nourishment essential

for growth and the maintenance of life. Nutrients are what’s provided, through the application of

fertilizer, to enhance the fertility of the soil

What is fertilizer?

.A fertilizer (American English) or fertiliser (British English) is any material of natural or

synthetic origin (other than liming materials) that is applied to soils or to plant tissues (usually

leaves) to supply one or more plant nutrients essential to the growth of plants.

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The nutrients required for healthy plant life are classified according to the elements, but the

elements are not used as fertilizers. Instead compounds containing these elements are the basis of

fertilisers. The macronutrients are consumed in larger quantities and are present in plant tissue in

quantities from 0.15% to 6.0% on a dry matter (DM) (0% moisture) basis. Plants are made up of

four main elements: hydrogen, oxygen, carbon, and nitrogen. Carbon, hydrogen and oxygen are

widely available as water and carbon dioxide. Although nitrogen makes up most of the

atmosphere, it is in a form that is unavailable to plants. Nitrogen is the most important fertilizer

since nitrogen is present inproteins, DNA and other components (e.g., chlorophyll). To be

nutritious to plants, nitrogen must be made available in a "fixed" form. Only some bacteria and

their host plants (notably legumes) can fix atmospheric nitrogen (N2) by converting it to

ammonia. Phosphate is required for the production of DNA and ATP, the main energy carrier in

cells, as well as certain lipids.

Micronutrients are consumed in smaller quantities and are present in plant tissue on the order

of parts-per-million (ppm), ranging from 0.15 to 400 ppm DM, or less than 0.04% DM. These

elements are often present at the active sites of enzymes that carry out the plant's metabolism.

Because these elements enable catalysts (enzymes) their impact far exceeds their weight

percentage.

Mechanism of fertilizer

Fertilizers enhance the growth of plants. This goal is met in two ways, the traditional one being

additives that provide nutrients. The second mode by which some fertilizers act is to enhance the

effectiveness of the soil by modifying its water retention and aeration. This article, like most on

fertilizers, emphasises the nutritional aspect. Fertilizers typically provide, in varying proportions

three main macronutrients:

Nitrogen (N): leaf growth;

Phosphorus (P): Development of roots, flowers, seeds, fruit;

Potassium (K): Strong stem growth, movement of water in plants, promotion of

flowering and fruiting;

three secondary macronutrients: calcium (Ca), magnesium (Mg), and sulphur (S);

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micronutrients: copper (Cu), iron (Fe), manganese (Mn), molybdenum (Mo), zinc (Zn), boro

n (B), and of occasional significance there are silicon (Si), cobalt (Co), andvanadium (V)

plus rare mineral catalysts.

The nutrients required for healthy plant life are classified according to the elements, but the

elements are not used as fertilizers. Instead compounds containing these elements are the basis of

fertilisers. The macronutrients are consumed in larger quantities and are present in plant tissue in

quantities from 0.15% to 6.0% on a dry matter (DM) (0% moisture) basis. Plants are made up of

four main elements: hydrogen, oxygen, carbon, and nitrogen. Carbon, hydrogen and oxygen are

widely available as water and carbon dioxide. Although nitrogen makes up most of the

atmosphere, it is in a form that is unavailable to plants. Nitrogen is the most important fertilizer

since nitrogen is present inproteins, DNA and other components (e.g., chlorophyll). To be

nutritious to plants, nitrogen must be made available in a "fixed" form. Only some bacteria and

their host plants (notably legumes) can fix atmospheric nitrogen (N2) by converting it to

ammonia. Phosphate is required for the production of DNA and ATP, the main energy carrier in

cells, as well as certain lipids.

Micronutrients are consumed in smaller quantities and are present in plant tissue on the order

of parts-per-million (ppm), ranging from 0.15 to 400 ppm DM, or less than 0.04% DM.[2][3] These

elements are often present at the active sites of enzymes that carry out the plant's metabolism.

Because these elements enable catalysts (enzymes) their impact far exceeds their weight

percentage.

1.2 IMPORTANCE OF THE STUDY

The fertilizer industry in India going through rapid changes, there are varieties of good products

are available in the market. Innovation in seed sector, improvement in irrigation facilities,

increased food demand of nation these are some reasons for creating wide improvement in

agriculture. This improvement in agriculture also made possible due to increased awareness in

farmer, understanding and acceptance of modern technology. This situation directly and

indirectly helps to improve use of agrochemical and fertilizer. As development in agriculture has

been take place, the fertilizer industry also going through improvement phase. With this plus

point competition between fertilizer industries has become dangerous. Also government tries to

maintain and improve fertilizer availability in all parts of India with certified quality measures,

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for that purpose new private player are entered in this market. This study will help in knowing

the present competitor for company, Awareness and satisfaction level of farmer, perception of

farmer towards the use of product. This study also helps to search expectation of farmers, dealers

and retailers from company. This work will be of great importance for company for its sales

promotion and improve brand equity in farmers mind.

1.3 SCOPE OF STUDY

The present study was undertaken in eastern Haveli which known for its agriculture production

in various commodities like fruits, vegetable, flower and also for its cereals production. Most of

the farmers in this area are grown fruits like grapes, citrus, pomegranate, guava, clustered apple,

watermelon, papaya etc. Commercial vegetables like tomato, chilli, brinjal (fruity veg). Flower

crops like gladiolus, rose, marigold, etc on open field. Nursery business in this area are well

developed, all type of seedlings of agronomical crop, horticultural plants, ornamental plants and

aesthetic plant are sold through retail and wholesale business. They are deal with all over

Maharashtra for providing seedlings of various crops/plant. As a background of this area,

fertilizer consumption is very high. By targeting potential farmers in this area we can find out

various companies deals for micronutrient. This data is helpful for identifying competitors in that

area. On response of farmers we can judge the age, educational level of respondent and

awareness level about micronutrient as well as source of information. This study helps find

awareness about competitors of company and host Company on which company can take

decision about advertising camp and relative media which is found nearer to farmer.

This study found to be very useful for find out demand for existing products of company by

analysis farmer and dealer/retailer in that area. Also identify satisfaction level, influencing

factors, ignoring factors in use of micronutrient. With all this information we can find the

penetration of company in market and improve promotional activities.

Here is the list of some public sector Indian fertilizer industries:

Madras Fertilizers Limited

National Fertilizers Limited

Hindustan Fertilizer Corporation Limited

Steel Authority Of India Limited

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Fertilizers & Chemicals Travancore Limited

Rashtriya Chemicals &Fertilizers Limited

Paradeep Phosphates Limited

Pyrites, Phosphates & Chemicals Limited

Neyveli Lignite Corporation Limited

Some of the major private sector fertilizer companies in India are:

Nagarjuna Fertilizers & Chemicals Limited

Chambal Fertilizers & Chemicals Limited

Gujarat Narmada Valley Fertilizer Co. Limited

Godavari Fertilizers & Chemical Limited

Shri Amba Fertilizers (I) Private Limited

Gujarat State Fertilizers & Chemicals Limited

Maharashtra Agro Industrial Development Corporation

Mangalore Chemicals & Fertilizers Limited

List of cooperative sector Fertilizers Company:

IFFCO

KRIBHCO

1.4 HISTORY

Management of soil fertility has been the preoccupation of farmers for thousands of years.

Egyptians, Romans, Babylonians, and early Germans all are recorded as using minerals and or

manure to enhance the productivity of their farms. The modern science of plant nutrition started

in the 19th century and the work of German chemist Justus von Liebig, among others. John

Bennet Lawes, an English entrepreneur, began to experiment on the effects of various manures

on plants growing in pots in 1837, and a year or two later the experiments were extended to

crops in the field. One immediate consequence was that in 1842 he patented a manure formed by

treating phosphates with sulphuric acid, and thus was the first to create the artificial manure

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industry. In the succeeding year he enlisted the services of Joseph Henry Gilbert, with whom he

carried on for more than half a century on experiments in raising crops at the Institute of Arable

Crops Research.

The Birkeland–Eyde process was one of the competing industrial processes in the beginning of

nitrogen based fertilizer production. This process was used to fix atmospheric nitrogen (N2)

into nitric acid (HNO3), one of several chemical processes generally referred to as nitrogen

fixation. The resultant nitric acid was then used as a source of nitrate (NO3−). A factory based on

the process was built in Rjukan and Notodden in Norway, combined with the building of

large hydroelectric power facilities.

The 1910s and 1920s witness the rise of the Haber process and the Ostwald process. The Haber

process produces ammonia (NH3) from methane (CH4) gas and molecular nitrogen (N2). The

ammonia from the Haber process is then converted into nitric acid (HNO3) in the Ostwald

process.[98] The development of synthetic fertilizer has significantly supported global population

growth — it has been estimated that almost half the people on the Earth are currently fed as a

result of synthetic nitrogen fertilizer use.

The use of commercial fertilizers has increased steadily in the last 50 years, rising almost 20-fold

to the current rate of 100 million tonnes of nitrogen per year. Without commercial fertilizers it is

estimated that about one-third of the food produced now could not be produced. The use of

phosphate fertilizers has also increased from 9 million tonnes per year in 1960 to 40 million

tonnes per year in 2000. A maize crop yielding 6–9 tonnes of grain per hectare requires 31–50 kg

of phosphate fertilizer to be applied, soybean requires 20–25 kg per hectare. Yara International is

the world's largest producer of nitrogen based fertilizers.

Controlled-nitrogen-release technologies based on polymers derived from combining urea and

formaldehyde were first produced in 1936 and commercialized in 1955. The early product had

60 percent of the total nitrogen cold-water-insoluble, and the unreacted (quick release) less than

15%. Methylene ureas were commercialized in the 1960s and 1970s, having 25 and 60% of the

nitrogen cold-water-insoluble, and unreacted urea nitrogen in the range of 15 to 30%.

In the 1960s, the Tennessee Valley Authority National Fertilizer Development Center began

developing Sulfur-coated urea; sulfur was used as the principal coating material because of its

low cost and its value as a secondary nutrient. Usually there is another wax or polymer which

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seals the sulfur; the slow release properties depend on the degradation of the secondary sealant

by soil microbes as well as mechanical imperfections (cracks, etc.) in the sulfur. They typically

provide 6 to 16 weeks of delayed release in turf applications. When a hard polymer is used as the

secondary coating, the properties are a cross between diffusion-controlled particles and

traditional sulfur-coated.

Indian fertilizer industry scenario

One of the most significant achievements of the post-independence period of our country has

been the ability to achieve self-sufficiency in food grain production. Rapid growth and

improvement of fertilizer industry is one of the big factors responsible for this achievement.

Fertilizers are basic nutrient or original deficiency of nutrient in the soil thereby ensuring proper

soil health. Indian fertilizer industry has reached international levels of capacity utilization by

adopting various strategies for increasing the productions of fertilizers. These include the

following: Expansion and increase in efficiency through modernization and revamping of

existing fertilizer units. Reviving some of the closed fertilizer plants using alternative sources,

such as coal or liquefied natural gas for the production of fertilizers, especially urea. Establishing

joint venture projects with companies in countries that abound in cheaper resources of raw

materials. India is 3rd largest producer as well as largest consumer of fertilizer in world. First

fertilizer plant in India started at Ranipet in Chennai in 1906 with SSP production of 6000MT

capacity. Regarding nitrogenous fertilizers, India is self sufficient to an extent of 86per cent of

annual requirement (2007). The requirement of phosphate is met by imports as the reserve or

availability of rock phosphate is small in quantity.

1.5 RESEARCH METHEDOLOGY

1. Secondary Data

The researcher made an attempt to collect secondary data from various books, magazines,

newspapers, journals, internet blogs etc. the researcher will also collect updated information

from various websites.

2. Primary Data

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The researcher made an attempt to design a questionnaire. The questionnaire is formed in a way

which made it easy for the respondents to answer. Thus the questionnaires are administered by

the respondents.

3. Sample size

The researcher has made different categories of farmers who use HDPS from the population of

Vidarbha Region, Maharashtra. The researcher has made an attempt in understanding the impact

of HDPS in the growth of cotton. It is shown that from different age group the farmers of 18-25

age group use HDPS technique as compared to other age group people.

4. Data Analysis

A proper analysis of the data would be done with the help of suitable statistical technique,

suitable pictorial and graphical presentation will be done to make the data more explanatory.

1.6 SIGNIFICANCE OF THE STUDY The research will benefit the future researchers who take up the study in the similar area.

Individuals working in agricultural sector will reach benefit from a thorough knowledge of the

principles contained in this study. The readers will also come across some aspects which are

often sadly looked.

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CHAPTER 2

ABOUT COMPANY

2.1 INTRODUCTIONRashtriya Chemicals and Fertilizers Limited (RCF) a Government of India Undertaking is a

leading fertilizer and chemical manufacturing company with about 80% of its equity held by the

Government of India. It has two operating units, one at Trombay in Mumbai and the other at

Thal, Raigad district, about 100 KM from Mumbai. Government of India has accorded "Mini-

Ratna" status to RCF.

RCF is one of the earliest units set up in the country with a vision of growth in fertilizer

production for food security. It manufactures Urea, Complex Fertilizers, Bio-fertilizers, Micro-

nutrients, 100 per cent water soluble fertilizers, soil conditioners and a wide range of Industrial

Chemicals. It produces 23 lac MT Urea, 6.5 lac MT Complex fertilizers and 1.6 lac MT of

Industrial Chemicals every year. The company is a household name in rural India with brands

"Ujjwala" (urea) and "Suphala" (complex fertilizers) which carry a high brand equity. RCF has

countrywide marketing network in all major states. Apart from the own manufactured products,

the Company is also engaged in marketing of SSP and imported fertilizer inputs like, DAP, MOP

& NPK fertilizers. Besides fertilizer products, RCF also produces almost twenty industrial

chemicals that are important for the manufacture of dyes, solvents, leather, pharmaceuticals and

a host of other industrial products.

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Chemicals essential for every industry from food and drugs to Synthetic fibres, from textiles and

cement to pesticides and paints; from explosives to specialty solvents and dye stock are produced

by RCF. RCF also pioneered the manufacture of basic chemicals such a Methanol, Ammonia,

Ammonium Nitrate, Sodium Nitrate, Sodium Nitrite, Ammonium Bicarbonate, Methylamines,

Dimethyl Formamide and Dimethyl acetamide, Formic Acid, Argon in India. Today RCF is the

only manufacturer of Dimethyl Formamide in India.

RCF has always striven for upkeep of the plants through modernizing and upgrading technology.

Revamping and de-bottlenecking is the secret that has kept the company thriving for five

decades. As part of modernization, RCF has recently modernized its Ammonia – I, Nitric Acid,

Methanol and ANP plants. This has facilitated plants to sustain operations and meet

technological challenges of improved efficiency, lower energy consumption and maintain

environmental norms. It has also resulted in company achieving the highest standards of safety

and product quality.

Safety is paramount important factor of RCF work culture. Safety work culture is always

practiced in RCF. Depending upon the job scope and sensitivity of job, Safety Work Permits

(Class I and Class II) are issued for carrying out the job. Training of safety practices, use of

Personal Protective Equipment, rescue operations, firefighting methods are imparted not only to

RCF personnel but also to the contractor personnel in various training sessions including

refresher courses. RCF also has a disaster management plan in place in case of exigencies.

At the root of every successful product and project is a strong R&D base and its sound planning,

innovative ideas and perfect project management. Product development is a continuous process

at RCF. Advanced technical equipment and highly skilled technicians enhance the values of

innovation.

Since inception, RCF has successfully and safely operated two dozen chemical and fertilizer

plants for the past five decades at Trombay. The Company has operated plants at Thal for last

thirty years and maintained the quality of environment. This itself has been a huge challenge and

demonstrates company's commitment towards environment and concern about the

neighbourhood. RCF has spent more than Rs. 400 crore over the years in various pollution

abatement and environment improvement schemes. This includes massive drive for tree

plantation under "Chembur Green" Project. Complete transparency is maintained by the

Company in dissemination of environment related data and information. Through four dedicated

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continuous Ambient Air Monitoring Systems located around the boundary of the factory, real

time emission levels are displayed through an illuminated board placed at the entrance of the

factory for public viewing. No wonder that the company is maintaining ISO 14000 accreditation

for environment since fifteen years. Both the manufacturing units are accredited with ISO 9000

for quality and OHSAS 18000 for Occupational Health and Safety.

RCF also strongly believes in discharging its Corporate Social Responsibility diligently with an

objective to benefit the needy and for general good of the society. A host of CSR activities are

undertaken by the company which includes adoption of villages, providing drinking water,

providing schooling facilities and scholarship, providing Mid-day meal, providing special

coaching facilities to poor students to enable them get admission in IITs and NITs, Community

Medical facility through Mobile Medical Vans, special measures for SC/ST and under

privileged, providing training to farmers etc. As part of its social efforts, the company has

adopted 63 villages in Maharashtra, Karnataka and Andhra Pradesh for overall development, a

program that has brought about qualitative changes in the economic status of the farmers and

people of various professions in the village.

MISSION STATEMENT

"Exponential growth through business excellence with focus on maximising stakeholder value by

manufacturing and selling fertilizers and chemicals in a reliable, ethical and socially responsible

manner".

VISION STATEMENT

"To be a world class corporate in the field of fertilizers and chemicals with dominant position in

Indian market, ensuring optimal utilisation of resources, taking due care of environment and

maximising value of stake holders".

VALUE STATEMENT

"RCF shall deal in all aspects of Business with integrity, honesty, transparency and with utmost

respect to the stakeholders, by honouring our commitments, providing results and striving for

highest quality."

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2.2 RCF’s PRODUCT RANGE RCF is one of the leading producers of Fertilizers in India. Sujala, Suphala 15:15:15, Suphala

20:20:0, Ujjwala, Microla and Biola are its major fertilizers. All the products can be used with

different soil types and in various climatic conditions.

A) Among fertilizers

2.2.1 Microla (Micro Nutrients)

Over a period of years, we have been cultivating different crops in the field which has resulted in

the depletion of essential micro-nutrients in the soil. This has in turn affected the productivity of

the soil. This fact has also been validated in the soil analysis reports drawn over a period of time

indicating that the micronutrients in the soils are on the decline, resulting in lowering the quality

and yields of the crops

2.2.2 SUJALA (19:19:19) FOLIAR / DRIP Sujala(19:19:19)

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Rashtriya Chemicals & Fertilizers Ltd, manufactures 100% water soluble fertilizers containing

all the three major plant nutrients i.e. Nitrogen, Phosphorus and Potash for crops grown in green

houses as well as other field crops. Sujala is available in two forms Foliar grade and drip grade.

2.2.3 Suphala (15:15:15)

RCF produces two grades of complex fertilizers at its Trombay unit. They are commonly known

as “Suphala”, which has almost become a generic name for NP/NPK complexes in the farming

households of the country

2.2.4 Ujwala (Urea) 46%

RCF’s Ujwala urea is a chemical fertilizer produced in white round prill form containing 46%

nitrogen. It is 100% water soluble and is suitable for any type of soilor crop. It can be applied

through sowing, broadcasting or spraying. Ujjwala urea should be applied to different crops in

two to three split doses.

2.2.5 Biola (PSB)

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This multifaceted bio-fertilizer solubilises the fixed phosphorus in the soil and makes it available

to the crops. Bacteria multiply very fast in the soil and this helps to improve the texture and

structure of the soil. This also helps to enhance the growth of the crops and also induces

resistance against various pests and diseases.

2.3 SUSTAINABILITY AT RCFSustainability is core to RCF’s business. Our endeavour is to minimise carbon foot print.

Accordingly, RCF have reformulated CSR Policy which will guide sustainability initiatives in

the years to come. RCF have taken a number of initiatives to reduce energy consumption at both

of its units – Trombay and Thal (Maharashtra).

In addition, RCF has been focusing on water management to bring down the water usage and

conserve water at our plants. Almost 55% of our water requirement at Trombay is met through

water generated at our sewage treatment plant. The plant generates around 15 MLD of treated

water.

RCF along with BPCL is setting up one more sewage treatment plant at Trombay of similar

capacity. New STP will ensure the availability of process water for operation of RCF plants at

Trombay unit and will also benefit BPCL. Besides this it will also help to residents of Mumbai

and society at large, as about 15 MLD of additional potable water will be available for the

domestic use.

As a socially responsible company, we continuously strive for sustenance of the environment,

education and welfare of the farming community, propagation of sports and cultural activities.

This directly and indirectly helping the community in bettering the life and environment in which

they live. Our endeavor towards catering to educational needs of underprivileged children under

the flagship program ‘RCF Super - 30’ have been a thumping success. In its third year of

operation project has once again repeated success and recorded excellent success ratio. Out of 30

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students 28 students have cleared IIT Mains with very good marks and stand very good chance

of getting either IIT or NIT.  The students who are benefitted from this project, belong to the

backward districts of Maharashtra.

With a view to harness renewable energy sources, RCF has set up rooftop PV solar power

generating facilities atop its offices at Trombay, Thal and its marketing offices in Satara and

Ahmednagar. Recently, RCF has commissioned a 2MWp solar power generation plant at

Trombay Unit. As a part of expansion strategy we are planning to undertake major projects such

as Thal-III expansion project, Coal Based Fertilizer Plant at Talcher, Fertilizer project in Iran,

Installation of Gas Turbine at Thal and Trombay to name a few.

RCF’s Facebook page “RCF Kisan Manch” is growing in popularity with more than 5000

dedicated likes and visitors more than 60 lakhs. At ‘RCF Kisan Manch’ farmers are educated on

Scientific Agricultural practices.

We are proud of our accomplishments on the sustainability front so far; nevertheless we also

recognize that we have a long way to go further.

2.4 HISTORYRashtriya Chemicals and Fertilizers (RCF) was incorporated in the year 1978 under Companies

Act 1956. RCF was formed after the reorganisation of FCI into five companies.

Till 1992, the company was a wholly–owned PSU. During 1992 and 1993, 7.5% of the equity

was disinvested to financial institutions, public, etc. RCF has been a MoU signing company

since 1988–89.

RCF is one of the leading producers of fertilizers in India. Sujala, Suphala 15:15:15, Suphala

20:20:0, Ujjwala, Microla and Biola are its major fertilizer brands. All the products can be used

with different soil types and in various climatic conditions.

The company pioneered the manufacture of basic chemicals such as methanol, sodium nitrate,

sodium nitrite, ammonium bicarbonate, methylamines, dimethyl formamide, and

dimethylacetamide in India.

Today RCF is the only manufacturer of DMF in India. Product characteristics, consumer needs,

economy to the consumers and safety are the primary considerations in determining the type of

packaging and modes of transportation for each of the products.

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The company owns two complexes, one at Trombay, Mumbai and the other at Thal, Raigad

district, Maharashtra. The company has its marketing headquarters at Mumbai.

RCF also undertakes project management and renders O&M services to its clients in

fertilizer/chemicals industry

RCF offer turnkey projects, which involve total management, whose services includes

preparation of project report, budgetary offer detailed engineering, know–how, licence tie–up

along with performance guarantee, civil and mechanical erection with instrumentation including

procurement of equipment, commissioning, guarantee trial runs and successful operation

thereafter if desired.

The company also enters into joint ventures to conduct feasibility studies in area of fertilizers,

industrial chemicals and petrochemicals.

2.5 ACHIEVEMENTS1. RCF has won several awards for pollution control and clean technology.

2. Notable awards being the Indira Gandhi Memorial award for Pollution Control and the

Rajiv Gandhi Award for Clean Technology awarded to Thal.

3. It also received merit certificate for excellence in the achievement of MoU targets for the

year 1998–99, 1999–2000, 2000–01 and 2002–03.

HIGHLIGHT OF PERFORMANCE FOR THE YEAR 2014–2015

1. Income for the year increased by 16.91% to Rs. 7787.81 Crore as compared to Rs.

6661.64 Crore.

Gross profit for the year increased by 38.16% to Rs. 884.70 Crore as against Rs. 640.36

Crore of previous year.

2. Profit before tax increased by 38.74% to Rs. 509.63 Crore as compared to Rs. 367.32

Crore.

3. Highest ever profit after tax of Rs. 322.06 Crore as compared to Rs. 249.89 Crore,

registering an increase of 28.88%.

4. The Company's Performance during the year has been bolstered by higher volumes of

manufactured and traded fertilizers and higher energy efficiencies at both Trombay and

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Thal units, despite various challenges encountered on gas availability and delayed

disbursement of subsidy.

As in the past several years, your Company received 'MOU Excellent' rating for 2013–14

from Ministry of Heavy Industries and Public Enterprises.

2.6 FUTURE PLANS1. Fertilizer:

Your Company has set itself an ambitious target of achieving a total turnover of Rs. 8,300 Crore

in the current year (including Industrial Chemicals). In addition to the manufactured products

and imported urea, your Company also intends to market other fertilizers i.e. complex fertilizers,

SSP, water soluble fertilizers, Bentonite Sulphur, SOP, Ammonium Sulphate, Zinc Sulphate, city

compost/organic manure, etc., sourced either through import or marketing tie–ups with local

companies.

2. Industrial Product Division (IPD):

The sales turnover of the products like DMAC, DMF and Formic Acid needs to be increased by

exploring and developing new markets. Products having synergy with our product line need to be

considered for tie–up and trading – Methanol, Amines and DMF. Sale of high volume products

like Methanol, Ammonia, AN(Melt) and DNA will facilitate improvement in turnover as well as

profitability.

2.5.1 MAJOR EXPANSION AND DIVERSIFICATIONS

Company is planning to undertake major projects as under:

Additional Ammonia Urea project at Thal:

Company has plans to expand the capacity of Urea at Thal by setting up one single stream

Ammonia plant of capacity 2200 MTPD and one single stream Urea plant of capacity 3850

MTPD at the existing site. The selection of lump sum turnkey contractors (LSTK) for main

plants had been completed in March 2012 and proposal for approval of PIB/CCEA was

submitted. In view of delay in policy notifications and considerable lapse of time thereof, LSTK

bidder did not agree for extension of bid validity beyond March 2014. Fresh Pre–qualification

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bid was floated to explore possibility of inclusion of any new LSTK bidder and for giving

opportunity to existing pre–qualified bidders to change constitution of consortium. However, no

new bids were received. Fresh price bids were sought from the existing bidders. The revised bids

have been opened and Detailed Feasibility Report (DFR) has been prepared by PDIL. However,

the project cost now stands revised to Rs. 5,458.07 Crore as against Rs. 4500 Crore envisaged

earlier. Board of Directors of your Company has approved DFR and proposal has been

forwarded to DoF for PIB/ CCEA approval.

Coal Based Fertilizer Plant at Talcher:

Company, along with Coal India Limited (CIL), GAIL India Limited (GAIL) and Fertilizer

Corporation of India Limited (FCIL), is contemplating to set up a fertilizer complex, comprising

of 2200 MTPD ammonia plant, 3850 MTPD Urea plant at Talcher, Odisha through coal

gasification route. Coal will be made available by CIL from nearby coalfields. Land and certain

facilities needed for the project will be provided by FCIL. The project will utilize state–of–the–

art Coal Gasification Technology. MoU and Joint Venture Agreement amongst the proposed

promoters have been signed. The Coal gasification technology supplier is being identified and

pre – project activities for the downstream plants are underway. Project capital cost is estimated

to be appx. Rs. 9000 Crore.

The project is of strategic importance for the country as it aims to make breakthrough for an

alternative source of feedstock in the form of abundantly available coal from domestic sources in

place of natural gas. It will also aid much needed urea production capacity in the eastern part of

the Country.

Sewage Treatment Plant (STP) at Trombay:

Ensuring water availability has become critical for the smooth functioning of the Trombay unit

given the competing demand for water in the city. Recognizing this, Company has lined up

contract for setting up of a new Sewage Treatment Plant (STP) adjacent to the existing STP plant

of same 5 MGD capacity. Project cost for the same is approx. Rs. 198 Crore. A portion of the

treated process water will be supplied to BPCL and hence a part of the project cost will be

funded by them on mutually agreed terms. Project work is already underway at the site.

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Solar Power Plant (PV Grid Connected) at Trombay:

In the current era of rapidly depleting fossil fuel resources with access to conventional energy

resources such as oil, gas and coal becoming increasingly constrained and uneconomical it is

imperative to harness renewable energy sources to meet our demands. Your Company is setting

up a 2 MWp Grid connected Photovoltaic Solar power plant within factory premises of Trombay

unit with capital Cost of Rs. 14.60 Crore. Based on the average intensity of solar radiation, it is

expected to generate around 3 million units of power on annual basis. The power generated shall

be used for captive consumption of the Trombay unit and reduce our power import to that extent.

This venture is in line with the Solar mission of Government of India and leads RCF's foray into

generation ofrenewable energy resulting in to reduction in the overall carbon footprint of the

company.

Iran Project:

company has been nominated by the Government of India along with Gujarat Narmada Valley

Fertilisers & Chemicals (GNFC) and Gujarat State Fertilisers Corporation (GSFC) for the

proposed 1.3 million tonne Urea joint venture plant in Iran for import of Urea to India. SBI

Capital Market has been appointed to identify the Iranian partners for the Joint Venture Project.

The consortium is planning to set up the joint venture plant at Chahbahar in Iran, using natural

gas as feedstock which is abundantly available with in that country an estimated investment of

USD 903 Million.

2.7 SWOT ANALYSIS Strengths:

(i) Company's strength lies in its skilled manpower, high Brand Equity of its

manufactured Products such as Ujjwala, Suphala, Microla, Biola, and Sujala.

(ii) The wide spread marketing network ensures that your Company has country wide

reach.

(iii) The Farmer's Training Institutes and R & D Centre ensure that quality services are

provided to the farmers/dealers by educating them and providing inputs for better

crop realization.

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(iv) Your Company has a wide portfolio of chemical products and can withstand difficult

economic situations by adopting optimal mix of production.

(v) The well maintained plants and equipment ensure uninterrupted production.

Weaknesses:

(vi) The Plants have been in operation for a very long time, some of them since 1965. A

regular upkeep, maintenance and up–gradation of the plants have ensured that

production is not affected.

(vii) As the ultimate customers are farmers, Agro–climatic conditions have a large effect

on the performance of your Company.

(viii) The complex fertilizers are based on imported raw materials which are subject to

severe volatility in global raw materials prices and foreign currency exchange rate,

affecting the profitability of your Company.

Opportunities:

(i) Due to your Company's good reputation, several opportunities exist overseas, for

collaborations/ diversification in the field of manufacturing and mining of raw

materials and fertilizers and this affords opportunity for marketing of varieties of

products.

(ii) The increased demand–supply gap in the Country provides for opportunity to

expand its Urea base at Thai,

(iii) Alternate feedstock like Coal gasification gives an opportunity for undertaking

fertilizer projects

(iv) in other parts of the country closer to coal mines.

(v) Experienced and skilled manpower of your Company has been in demand for

rendering O & M service in India and abroad. In view of your Company's training

facilities, as well as the available skilled engineers and technicians, your Company is

in position to impart training to many foreign and Indian Companies.

All these opportunities would lead to substantial increase in turnover of your Company.

Threats:

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(i) Manufacturing and marketing of Fertilizers is the core business of your Company. In

the recent years, there has been high volatility in the prices of raw material resulting

in creation of scarcity, impeding production and marketing plans. The profitability is

susceptible to the input costs of major raw materials, such as Rock Phosphate,

Sulphur, DAP, MOP, MAP etc.

(ii) Production of Urea, Complexes and chemicals are susceptible to availability of

feedstock gas and its economic pricing.

(iii) The chemicals business is also exposed to cut throat global market competition from

cheaper import.

(iv) Department of Fertilizers, Government of India, (DoF) is under the process of

implementing a move to mop up the unintended gains that the fertilizer units are

making in nutrient "N" by use of domestic gas for manufacturing P&K fertilizers with

retrospective effect from 01.04.2010. This, if implemented, will not only have

adverse impact on the profitability but also operational viability of the Company.

Your Company has suitably represented to the DoF against this move.

(v) Uncertainty in government policies in respect of supply of feed stock gas, pricing of

fertilizers and subsidy thereon also affect the performance and competitiveness of the

Company.

2.7.1 Risk Management

Pursuant to clause 49 of the Listing Agreement, the Company has framed Risk Management

Policy for risk assessment and minimization procedures. Risk Management Policy, developed

with the objective of having a balanced approach towards business plan and mitigating the

associated risks, is in place. The system identifies better management practices to ensure greater

degree of confidence amongst various stakeholders and facilitates good Corporate Governance

practice. All risks associated with Operations, Environment, Finance, Human Resource, Legal,

Information security etc., are continuously monitored. The degree of impact of the perceived

risks financially, their likely effect on the assets, facilities and third parties are assessed

regularly. In order to mitigate losses arising out of such perceived risks, appropriate procedures

are being adopted to contain the risks. Also the practices adopted during emergencies, including

the communication system and mode of disseminating information are periodically reviewed and

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updated to minimise the impact on the Company. Quarterly report in respect of the same is

presented to the Board.

2.8  RESEARCH AND DEVELOPMENTYour Company has taken up several Research and Development projects, some of which are

taken up for commercial scale design and engineering, are as under:

Lab scale development of composite Bio fertilizer:

Bio fertilizers are known to play a vital role in soil fertility, crop productivity and production in

agriculture as they are eco–friendly. Composite bio fertilizer is combination of all three

microorganisms; namely Phosphorous (P) solubilising, Nitrogen (N) fixing and Potassium (K)

mobilizing bacteria. Phosphorus solubilizing bacteria solubilise insoluble inorganic phosphate

into soluble inorganic phosphate by producing organic acids and making available to plants.

Nitrogen fixing bacteria fix atmospheric Nitrogen symbiotically and are able to colonize the

legume roots of the plant. Potassium solubilising bacteria solubilise the Potash which is fixed in

the soil and make it available to the plant in an easily usable form.

The composite bio fertilizer with all the above bacteria is developed in laboratory. Your

Company will take further steps to commercialise the product after successfully completing the

field trials.

Trial production of water resistant plaster for external application from Calcined

Gypsum:

The R & D department of your Company has developed, in consultation with Institute of

Chemical Technology, a formulation for manufacturing an eco–friendly water resistant plaster

for external application on the walls from Calcined Gypsum. It has potential to replace

conventional sand cement mortar mix. The trial production of the product is done. Application

has been done on few buildings and feedback is awaited.

Development of Pot hole fill mix from Calcined Gypsum:

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The R & D department of your Company has developed new formulation using Calcined

Gypsum, for preparing a Pot hole fill mix. It is strongly bonded material which can be used on

roads to fill pot holes especially in monsoon. It is a cost effective alternative for commercially

available Cold Mix. Your Company will take further steps to commercialise the product after

successfully completing the trials.

Development of 100% water soluble fertilizer NPK (13:40:13):

The R & D department of your Company has developed 100% water soluble fertilizer N P K

13:40:13 under brand name Sujala. It is free flowing and suitable for all crops especially for root

development and bud differentiation. It comes in form of foliar and fertigation application. Trial

production is completed. It will be commercialized shortly.

Development of Micronutrient grade for Paddy Basal for Tamilnadu state:

Micronutrients are essential for plant growth and play an important role in balanced crop

nutrition. They include Boron (B), Copper (Cu), Iron (Fe), Manganese (Mn), Molybdenum (Mo)

and Zinc (Zn). They are as important to plant as primary and secondary nutrients, though plants

don't require as much of them. Lack of any micronutrient in soil can limit the crop growth even if

all other main nutrients are present in adequate amount. These micronutrients are state specific.

The R & D department of your Company has developed Tamilnadu state micronutrient grade

(No. XI) for Paddy crop basal application in solid form. The trial production is completed. It will

be commercialized shortly.

2.9 CORPORATE SOCIAL RESPONSIBILITIES (CSR) INITIATIVES

2.9.1 Education: Schools:

Your Company supports schools, at the two units, which impart education in Marathi, Hindi and

English mediums to students from Nursery to 10th Standard. Your Company undertakes the

upkeep, maintenance and bears the deficit expenditure incurred by the schools, located in

Company's residential colonies, which are run by reputed Educational Institutions.

Scholarship to meritorious students:

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Your Company offers a number of scholarships to students of SC/ ST/ OBC communities for

pursuing higher studies. Your Company's scholarship project for sending every year 10 students

to 6th Standard in Shivaji Military school in Pune and supporting the earlier batches in their

march to higher standards thereafter has received goodwill from all.

Supply of Mid–Day Meal:

Your Company is funding Mid–Day Meal Scheme for providing nutritious food to children

studying in twenty five unaided schools, providing education to poor children, in and around

Trombay area. The scheme is operated through an NGO, 'ISKCON Food Relief Foundation'

which supplies good and healthy meal to the children on behalf of RCF. In all, 6,000 students

have availed the benefit of this nutritious midday meal.

Programme for underprivileged Children:

Your Company has adopted the "Khel Khel Mein" programme of Wockhardt Foundation for

under privileged children of age group of 5 to 10 years, by setting up six centres of edu–

recreation with parallel learning in slums of Vashi Naka area, near Trombay unit.

RCF SUPER– 30 programme:

Your Company, in association with Centre for Social Responsibility and Leadership (CSRL), has

established a unit of Abhayanand Super 30 in Mumbai where about 30 underprivileged talented

students of Maharashtra state are provided 11 months of free residential coaching to enable them

to get admission in IIT/NIT and other premier engineering colleges. This year 26 of these

students were successful in the JEE mains examination.

Farmers' Education:

More than 30000 farmers attended & benefited from the training programmes conducted at the

two Farmers Training Centres in the last half decade and have used the knowledge to upgrade

their farm practices and have succeeded in reducing their overheads and increase in their wealth.

Special programmes designed for women farmers and the scheduled caste and scheduled tribes

are also organized on a regular basis so that they too join the bandwagon of the country's

agricultural renaissance.

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Your Company's efforts in rendering advisory services to farmers by conducting Soil diagnostics

to optimize soil productivity are well appreciated.

Based on the analysis, farmers are advised on soil fertility management through rational use of

manure, fertilizers and other inputs to make agriculture more productive and sustainable. During

the year, more than 143000 soil samples were analyzed and recommendations given through the

twelve static and six mobile soil testing laboratories.

Supply of drinking water to the villages:

Your Company has been providing drinking water for more than 20 years to seven villages

around Thal unit through pipelines laid down from the water reservoir in the unit and spent about

Rs. 114 lakh on this account during the year. About 16000 residents of the villages got benefit of

the scheme.

2.9.2 Community Medical Facility: Running of Mobile Medical Van:

Your Company has engaged Wockhardt Foundation and administered free primary health care

through mobile Medical Vans. Total of four Mobile medical vans are running in slums of

Trombay and villages of Thai and patients are benefited from free medical services including

supply of medicines. Through this facility, ailments like Blood pressure, low Haemoglobin

Levels, Oxygen saturation, Malaria, Hepatitis, Dengue, Typhoid, Diabetes, etc., are treated on

regular basis, through qualified Doctors. One medical van attends to approx. 25000 patients per

annum.

Running of pathology lab:

M/s Wockhardt Foundation is also engaged in the running of Pathology lab in Chembur near

RCF township. Nearly 3000 patients have benefited from this scheme.

Assistance to differently abled persons:

Your Company with assistance of ALIMCO (PSU) has extended services of providing Aids and

Appliances to nearly 75 differently abled persons belonging to the under privileged section of the

society.

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Distribution of sanitary napkins (Moksha):

Your Company has engaged Wockhardt Foundation for extending the medical services for

enhancement of female hygiene by free distribution of sanitary napkins (Moksha) through

mobile Medical Vans. The efforts in rendering novel services to the women in slum areas.

2.9.3 Chembur Green Project:

Your Company continued to support the Chembur Green project, launched to establish greenery

in the eastern suburb of Mumbai, by joining hands with Chembur Citizens' Forum, an NGO to

develop, beautify and maintain N. G. Acharya Garden (Diamond Garden), at Chembur for a

period of 5 years. Your Company continued distribution of free saplings and rendering advice to

various co–op. societies and also to individuals.

2.9.4 Conservation of Natural Resources (Solar System):

Your Company has continued to focus on conservation of Natural Resources by installation of

solar power system at Deaf & Dumb School at Patiala.

In addition 10 Bio Toilets inside factory premises were installed for Truck drivers, loaders and

cleaners etc. The bio toilet coverts the human waste into treated effluent and bio gas which is

free from Pathogens.

2.9.5 Contribution to "SWACHH BHARAT KOSH": Your Company has contributed Rs. 1

Crore in the national campaign of clean and green India.

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CHAPTER 3

DATA ANALYSIS

3.1 PERSONAL INFORMATION

3.1.1 Education

Education is one of the most important characteristics that might affect the person’s attitudes and

the way of looking and understanding any particular farming phenomena. In a way, the response

of an individual is likely to be determined by his educational status and therefore it becomes

imperative to know the educational background of the respondents. Hence, the variable

‘Educational level’ was investigated by the researcher

0102030405060

Education of the Respondents

Education of the Respondent

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GRAPH 3.1.1

ANALYSIS:

It is clear from the above Graph No.3.1 that 35 farmers from sangli, Maharashtra are illiterate

and 22 farmers having primary educational qualification which is from 1st to 4th std., 29 farmers

have secondary qualification (5th to 10th std), 56 farmers have higher secondary (11th to 12th std.)

education, 42 are graduates and 15 are Post Graduates respectively. Due to good education the

farmers can easily understand the cultivation processes, methods of agriculture, use of

agricultural inputs. It is suggested that the companies should not only send verbal

communication but also written communication to the farmers by way of newsletters, brochures

informing about the techniques.

3.1.2 Age of the farmer

Age of the respondents is one of the most important characteristic in understanding their views

about the particular problems by and large age indicates level of maturity of individuals in that

sense age becomes more important to examine the response.

less than 3030-40

40-50more than 50

01020304050607080

Age of the Respondents

Age of the Respondent

GRAPH 3.1.2

ANALYSIS:

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From the graph No.3.2 it is clear that 71 farmers from sangli region have the age less than 30

Years. 57 farmers have the age between 30-40yrs. 67 farmers are from the age group which is

between 40-50yrs and 4 framers have the age of 50yrs and above. It is found that most of the

farmers in the age of young generation and middle aged people. They can express their opinions

very clearly and have the knowledge on cultivation and how to use the inputs in the farms.

3.1.3 Income of the farmer

Income of a person plays an important role in shaping the economic conditions of an individual

which in turn is likely to have bearing on the responses about a problem posed to him. The

researcher, therefore in this study attempted to investigate the income as variable and the data

related to income of the respondents is presented in Graph. No.3.3

Below 50000

50000-100000

100000-200000

200000 onwards

0

2

28

170

Income of the farmers

Income of the farmer

GRAPH 3.1.3

ANALYSIS:

It is clear from the Graph No. 3.3 that 170 farmers from sangli region are in the income group of

2 lakhs & above. 28 farmers have income between Rs.1 lakh to Rs. 2 lakh. It is observed that 2

farmers have the income between Rs. 50000-100000 and there is no farmers have income below

Rs. 50000. The more the income, a farmer can spend more on the agriculture farms. Because of

good income the farmers are looking forward towards the new techniques of cropping.

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3.1.4 Total land holding

Landholding is very important for agriculture. If a farmer has sizable lands, then he will be a bit

careful in crop plan, use of various techniques of cropping & other Agri Inputs.

Marginal land small land medium large0

20

40

60

80

100

120

140

18

12552

5

Total land holding

Total land holding

GRAPH 3.1.4

ANALYSIS:

It is clear from the graph No.3.4 that 18 farmers from sangli region have marginal land, 125

farmers have Small Land, 52 farmers have medium land and 5 farmers hold large lands. Most of

the farmers have fragmented land and they have all requirements in small quantity.

3.1.5 Cultivated Crops by farmer

It is important to know which type of crops are cultivated and how many acres are used for each

crop. For each crop inputs are different.

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20%

1%

16%1%

63%

Cultivated crops

vegetebleswatermelongrapesfood grainssugercane

GRAPH 3.1.5

ANALYSIS:

It is clear from the Graph No.3.5, 62% from sangli of the respondents expressed that their lands

are used for cultivation of sugarcane, 1% each from sangli are under food grains and

watermelon, 20%of the respondents expressed that Vegetables are cultivated. 16% from

sangli respondents expressed that their lands are used for cultivation of grapes. Hence, it is

suggested that the RCF ltd. should take complete assessment through data providers and produce

the required inputs for the farmers. The company should also consider how many farmers are

their loyal customers.

3.1.6 Payment mode

It is important for knowing the which way customer purchase the fertilizers. Many of the

customers purchasing on credit and many of purchasing by cash.for analyzing the how much are

in the category of credit and how much are in the cash that’s why these survey is usefull.

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on cash on credit both0%

10%

20%

30%

40%

50%

60%

70%

on cash ; 10%on credit; 24%

both; 66%

Payment mode

GRAPH 3.1.6

ANALYSIS:

It is clear that from the above graph no.3.6, in sangli district 10% customers are purchasing

fertilizers on cash, the 24% customers purchasing fertilizers by credit and remaining 66%

customers using both methods while purchasing fertilizers. It is simply clear that majority of the

farmer using both cash and credit method depends on situation.

3.1.7 Total Expenditure on fertlizers

It is important for many of the farmers are spending lot of moneys on fertilizers and chemicals

which is useless. And for determining the farmers’ expenditure on fertilizers this survey is

important.

20-40%

40-60%

0.00%20.00%

40.00%60.00%

80.00%100.00%

5.50% 94.50%

Expenditure on fertilizers

Expenditure on fertilizers

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GRAPH 3.1.7

ANALYSIS:

It is clear that in graph no. 3.7, the above graph shows that in sangli district 94.50% of farmers

spend 40-60% money on fertilizers and 5.50% of farmers are spending 20-40% money on

fertilizers. This data is very important because land needs nutrients not a chemicals and majority

of people waste the money on fertilizers.

3.1.8 Guidance by progressive farmer or relative

Technical guidance before plantation is important because if farmer does not know about the

cultivation, use of fertilizers, farmer does not know which company is good or bad .Therefore the

guidance from ASC, relatives, friends, agronomists is important

Always

sometimes

never

0 20 40 60 80 100 120 140 160

53

143

4

Technical guidence before plantation

GRAPH 3.1.8

ANALYSIS:

It is clear in the graph no 3.8 the farmers in sangli districts are aware about the fertilizer

companies. 4 of farmers never take guidance before plantation, 143 farmers takes it sometimes

and 53 farmers of 200 takes it always at the time of plantations.

3.2 ABOUT AWARENESS OF RCF FERTILIZERS

3.2.1 Awareness of RCF

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The farmers should know about the producers of the fertilizers and Agri Input companies.

28%

72%

Awareness of RCF Fertilizers

Yes No

GRAPH 3.2.1

It is clear from the Graph 3.9 that 72% of the farmers from sangli are aware about RCF Limited

and 28% are not aware about RCF ltd, hence, the company has to do the promotional exercise,

Advertisement, seminars on the products etc.

3.2.2 Single company comes in mind of farmers

Every company should know that who its competitors are.Zuari industries, Deepak, IFFCO,

Narmada, Nagarjuna are the major competitors of the RCF ltd Ltd.

RCF Zuari Deepak IFFCO Narmada0

1020304050607080

65 70

36

1811

Single company comes in mind of farmers while purchasing fertil-

izers

Single company comes in mind of farmers while purchasing fertilizers

GRAPH 3.2.2

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ANALYSIS:

It is clear from the above Graph 3.10 that RCF Ltd is not very competitive in brand war

measurably in sangli District 65 farmers out of 200 purchasing RCF fertilizers. Competitors like

Zuari have 70 farmers mind-set in sangli Deepak fertilizers have 36, IFFCO have 18 and

Narmada is having 11 out of 200 in sangli Districts. RCF Ltd should do the rigorous exercise to

improve the brand by introducing quality aspects and by solving the problems of the end users.

3.2.3 Source while purchasing fertilizers

Source of awareness is important so that RCF Limited Company can use the same source very

effectively to promote its products.

Progressive farmer ASC RCF Agronomist Any other0

20406080

100120140160180

78

166

4 2

Source for awareness of RCF fertil-izers

Source for awareness of RCF fertilizers

GRAPH 3.2.3

ANALYSIS:

It is clear from the Graph No.3.11 that, 78 of the farmers from sangli have come to know about

RCF Ltd from progressive farmers and friends, 166 of the famers from s the agri. support

services, and 4 of farmers from RCF Agronomists. Then 2 from any others source. It is

suggested that the RCF ltd.should do more promotional exercise, do more advertisement, more

campaigns etc.

3.2.4 Availability of RCF

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Availability of rcf fertilizers in nearby stores is important. When customer wants to buy the

fertilizers that time fertilizer should be available to the customers.

Always

sometimes

Never

0100

200 27164

9

Availability of RCF fertilizers in ASC

Availability of RCF fertilizers in ASC

GRAPH 3.2.4

ANALYSIS:

It is clear in that graph 3.12 in sangli district 27 farmer always get fertilizers when they want,

164 get fertilizers sometimes and 9 farmers never get fertilizers when they want it. Therefore

company should help the farmer to easily get fertilizer.

3.3 CUSTOMER LOYALTY3.3.1 Use RCF in next season

In this survey we will aware about the customers loyalty. In that farmer use the RCF fertilizers in

their next season or not.

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Highly agree agree Neutral disagree13

110

76

1

use of RCF fertilizers in next season

use of RCF fertilizers in next season

GRAPH 3.3.1

ANALYSIS:

It is clear from the above Graph No. 3.13 that 13 farmers are highly agreed that they will use

RCF fertilizers for their next agriculture season in their cultivation. 110 are agreed, 76 are neutral

and 1 disagree and Even though RCF has created its place in the market it should concentrate on

its weaknesses.

3.4 ABOUT FARMERS SATISFACTION3.4.1 Feedback about price of RCF fertilizers

From this survey we will know about what farmer thinks about pricing policy of RCF.

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6%

88%

7%

Feedback regarding price of RCF fertilizers

lowAffordableHigh

GRAPH 3.4.1

ANALYSIS:

It is clear in graph no. 3.14 that in sangli district 88% farmers are saying price of RCF fertilizers

is affordable, 7% farmers are saying it is high and 5% farmers are saying it is low as compare to

other companies.

3.5 PROBLEMS FACED BY FARMERS3.5.1 Problems about RCF fertilizers

In that survey we also came to know that what type of problems farmers are facing by RCF? And

farmers have problem or not.

33%

67%

farmers having problems from RCF

YesNo

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GRAPH 3.5.1

It is clear in that graph no.3.15, in sangli district 67% farmers do not have problem from RCF

and 33% farmers are facing problems. Therefore company should focus on the problems which

the farmers are facing.

CHAPTER 4

FINDINGS AND SUGGESTIONS OF THE STUDY

4.1 FINDINGS

From this survey we find that more number of farmers are educated.

The age of farmers is probably 40-50 year.

Income of farmers are mostly more than rs.200000.

More than 66% of farmers are planting sugarcane in sangli districts.

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The farmers cultivating a crop in sangli district majorly sugarcane, vegetables, grapes,

food grains,etc.

Farmers using payment mode while purchasing ferilizers is mostly by cash and credit

both.

Farmers’ expenditure on fertilizers is 40-60%.

Farmers take a technical guidance from friends, relative, ASC as their by needs.

Most of the farmer are aware about the RCF fertlizers.

Many of the farmers are taking help from progressive farmers and ASC while purchasing

fertilizer and plantation.

They get RCF fertilizers sometimes in nearby ASC.

They trust on RCF.

They are satisfied with RCF products.

The farmers in sangli districts thinks that RCF fertilizers are affordable.

They have not major issue or problem from RCF.

80% farmers thinking that promotional activity will help RCF to increase market & help

them in purchase of RCF varieties.

In some village Fertilizers purchase done through Cooperative societies.

Leading companies do not take any Farmers meeting in this area.

More than 34% farmers are interested to purchase RCF fertlizers. Because RCF have

different range different varieties, Qualitative product & and they suffer from current one.

Farmers could not buy RCF fertilizers because of unawareness & unavailability.

Various farmers have misconceptions about RCF.

Various farmers are want to purchase RCF fertilizers but they have lack of

Knowledge about it.

Company can select preferable and cheapest source of Advertising by following data.

More than 60% - Retailer, Newspaper, Wall-painting, Hoardings & Agriculture

Exhibition.

40% to 50% - Mass Media (TV, Radio), Weekly bazars & company official

Near about 25%- Social networking & Informal gossip with friend

45% - Demonstration plot

Less than 5% - Govt. agency (KVK)

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Farmers are getting Agricultural products information from this source.

4.2 SUGGESTIONS

RCF should provide attention to increase the dealership of company in sangli area.

RCF should give attention toward the counter creation before starting season with

appointing season wise good marketing personnel with 3:1 ratio (i.e. 3 dealers,1

Marketing personnel).

The company should improve its network as many Dealers told that company person not

visit in their shops form long period of time.

Provide advertise material suitable for point of purchase with innovative idea and should

be with shop name of dealer.

Dealer and retailers has to be continuously motivated through Training programmes,

visit to Agriculture universities etc Exciting policies like discount, incentives, gifts, etc.

during off-season. Financial help for expansion, Credit business (whenever needed).

Counter creation by sale person of company to help retailer for expansion.

RCF seeds have tremendous scope to develop business in especially in sangli area.

promotional activities in the form of field demonstration, farmers meeting at villages.

level to make farmers familiar with product range of company in sangli district. Because

there was more response for field demonstration & farmers meeting to company. Dealers

and retailers are also working as like wheels of vehicle for company. So company should

not neglect them. Sales is indirectly depend on this because most of the farmers prefer

dealers /retailers recommendation that time he use push strategy for sale of product. So

company should provide yearly dairies, calendars, gifts, tours etc. to increase loyalty /

formality of dealers towards RCF.

More Advertising by:

Retailer

Newspaper

Wall-painting

Hoardings

Agriculture Exhibition

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Mass Media (TV, Radio)

Company official

Social networking

Demonstration plot

Now –a- day’s social networking site are the best media for advertising the

products.

Use Facebook, Whatsapp for it. Main thing is that it is totally free of cost.

Wall-painting & Hoardings must be at crowed place of village this is an easy & cheapest

way of advertising.

CONCLUSION

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I am greatly indebted to the PGDM Department of ‘Udaybhansinhji Regional Institute Of Co-

Operative Management’ Sector 30, Gandhinagar, Gujarat who gave me an opportunity to

undergo internship for a period of two months which was from 1nd May till 30th June 2016, which

completely changed my perspective towards life.

The internship provided me a practical experience and exposure of how challenging and

competitive the outside world is. The internship report consists of information about the

company & work done. This small attempt made me realize the importance of discipline, time

and professionalism when one is actually employed to an organization.

PGDM ABM

ROLL NO. – 1511

STUDENT’S SIGNATURE

Annexure

Questionnaire for farmer

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A. Personal Information

1) Name of the Farmer ____________________________________

2) Village name: ___________________________

3) Mobile no.: ___________________ (optional)

4) Education:

Illiterate Higher secondary (11th – 12th)

Primary (1st – 4th) Graduation

Secondary (5th- 10th) Post Graduation

5) Age:

Less than 30 30 – 40

40 – 50 More than 50

6) Income of the farmer:

Below 50,000 50,000 ‒100000

100,000 ‒ 200,000 200,000 on words.

7) Total land holding: Marginal land small land Medium Large

8) Land under cultivation:

9) Which type of crops do you cultivate?

Vegetables Fruits: Pomegranate watermelon grapes

Food grains Sugarcane

10) Which way you purchase fertilizers from retailer?

On cash on credit both

11) How much percentage of total expenditure you expend on fertilizers?

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20 – 40 % 40 to 60 % 60 – 80 %

12) Do you take technical guidance of any expert/ agriculturist/ agronomist/ progressive farmer

before application of fertilizers?

Always Sometimes Never

B. About awareness of RCF fertilizer 13) Which single company comes in your mind first when you think of fertilizers?

______________

14) Do you know about RCF fertilizers?

Yes No

If yes which of the following fertilizer of RCF you use? Know about Used

Urea

Suphala 15:15:15

Sujala 19:19:19

Biola

If no, which other brand of fertilizer you use?

zuari Nagarjuna Vanita agro

Narmada Deepak

Chambal IFFCO

15) From which source, first you aware about RCF fertilizers and its products

Progressive farmer or friend ASC

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RCF Agronomist Any other

16) On what basis you purchase RCF’s products than the others? (Give ranking): Rank

Availability in Fertilizer Retail store

Due to convey by retailer

Because of good quality & reasonable rate

Prices of RCF’s fertilizer products

Good results than the competitive fertilizers

Convey by progressive farmer or any relative

Any other (please specify)

17) Do you get RCF’s fertilizer in your nearby agro service centre / retail shop when you need?

Always Sometimes Never

C. Customer loyalty18) Do you will use RCF’s fertilizers in next season of cropping pattern/in future?

Highly agree Agree Neutral Disagree highly disagree

19) Do you trust RCF fertilizers?

Yes No can’t say

20) Do you suggest to other farmers, friends, relatives to use RCF’s fertilizer products?

Yes No

D. About farmers’ satisfaction21) Are you satisfied with RCF products?

Yes No

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22) When you get satisfied with the RCF products?

Good quality

Reasonable rate

Easy availability

Good results

23) What do you think about price of RCF fertilizers?

Low Affordable High

24) In purchase decisions of fertilizers, which factors mainly you consider while purchasing of

fertilizers? (Give ranking to the following factors)

Fertilizer Brand

Price of fertilizers

Quality granules in fertilizers

Availability in ASC

Better results

Suggested by ASC

E. Problems faced by farmers 25) Are you having problems with the products of RCF?

Yes No

26) What are the problems you are facing?

Quality

High Price

Linking of other products

Availability

F. Suggestions for company:27) What you suggest or which drawbacks you seen in RCF’s fertilizers?

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………………………..

………………………..

………………………..

BIBLIOGRAPHY

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www.rcfltd.com

http://profit.ndtv.com/stock/rashtriya-chemicals-&-fertilizers-ltd_rcf/reports-directors-

report

www.tfi.org

https://en.wikipedia.org/wiki/Fertilizer

Gupta, S. L. (1999). “Marketing Research”. Excel books, New Delhi. pp.297.

Kotler, Philip (2006). “Marketing Management”. Prentice Hall of India, New Delhi

David A Aaker, V Kumar, George S Day “Market Research” 9th Edition, Wiley India

Edition.

Thank you

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