|IFFCO –Nourishing Growth Fertilizing Future
Indian Farmers Fertiliser Cooperative Ltd popularly known as IFFCO was born in 1967 to serve the community in general and farmers in particular. It gradually grew in strength and stature by imbibing cooperative principles to become the world’s largest processed fertilizer cooperative. IFFCO has carved out a strong identify and is making sincere efforts to uphold the cooperative values with good corporate governance. In real sense, it is the – ‘Society of the Farmers, by the Farmers and for the Farmers’ which has established a popular Brand identity and Goodwill over the years. IFFCO displayed commendable overall performance especially in the areas of Production, Sales, Transportation, Specific Energy Consumption. It has five state of the art manufacturing units in India producing Urea, NP, NPK, DAP, water Soluble and Bio fertilizers and 18 joint ventures across the globe.
Vision and Mission
IFFCO’s mission is to augment the incremental incomes of farmers by helping them to increase their crop productivity through balanced use of energy efficient fertilizers; maintain the environmental health and to make cooperative societies economically and democratically strong for professionalized services to the farming community to ensure an empowered rural india.
The salient features of ‘Vision -2015’ are;
To stand as a global leader in fertilizer production to cater to the food security need of the nation.
- Maximizing the synergies of the Core Business through Downstream value additions and forward/ backward integrations.
- Enhancing presence in international markets through strategic joint ventures and synergistic acquisitions.
- Diversification into other profitable businesses to maximize returns to our stakeholders.
- Leveraging State of the Art Technologies and Global best practices to retain its global competitiveness.
- Promoting integrated Nutrient Management to improve efficiency of Fertilizer use and promoting location specific research on efficient fertilizer practices.
- To bring in Sustainability and Strategies to prevent climate change by reducing Energy Consumption, better Resources Management and promoting Renewable Energy sources.
- To help the cooperative societies become economically strong, professionally managed and to equip the farming community with advanced agricultural practices for improved productivity to ensure an Empowered Rural India.
- Achieve Fertilisers Production / marketing target of 15 million tone per annum with an annual turnover of Rs.30,000 crore.
IFFCO commissioned its Kalol and Kandla plants in Gujarat in early 1975 and subsequently added two more plants at Phulpur & Aonla in Uttar Pradesh in the year 1981 and 1988 respectively and acquired a DAP / NPK plant in 2005-06 at Paradeep in Odisha. IFFCO today meets almost one-third of the India’s demand of fertilizer. In the year 2012-13 IFFCO produced 79.02 lakh MT of fertilizers comprising all time high 45.10 lakh Mt Urea and 33.92 lakh MT of NP/NPK/DAP/ Water Soluble Fertilizers.
The Marketing of NPK/NP/DAP/UREA/Water Soluble Fertilizers are channelized through around 40,000 cooperative societies and 161 Farmers Service Centres spread over 29 states and Union Territories across the country. During 2012-13, IFFCO sold 100.54 lakh tone of fertilizer material comprising 62.32 lakh tone of Urea and 38.22 lakh tone of NPK, DAP, NP and Water Soluble Fertilizers. A total of 97.2 lakh tone of fertilizer material were dispatched from the plants and ports to various destinations during the year.
IFFCO recorded a turnover of Rs.21673.36 crore (USD 3984.86) during 2012-13, with a profit before tax of Rs.1107.43 crore (USD 203.61) and profit tax of Rs.728.72 crore (USD 133.98). The dollar figure are as per the rates prevailing at financial year-end. The society declared dividend of 20 percent to its shareholders for twelfth year in a row.
Awards and Accolades
Awards bestowed on IFFCO bears ample testimony to its splendid attainment. The Indian edition of Fortune magazine re-ranked IFFCO at Top Position in ‘Fertilizers and Agro chemicals’ category. Recipient of several awards at various national and international platforms for its initiatives in information Technology, Human Resources Management and Corporate Communications. Fertilizer Association of India Award for “Best Production Performance Award” was bestowed on Phulpur-II. Paradeep Unit won Best Technical Innovation Award and Environment Protection Award, Aonla Unit also baggedrunner-up award for Environment Protecton in the category of Nitrogenous Fertiliser Plants. FAI Golden Jubilee Award for the Best Work on “Transfer of improved Farm Technologies: was bestowed on IFFCO for its relentless efforts at the farm-level. IFFCO was placed in Top 100 CISO Award and CIO 100 Award. Phulpur Unit bagged National Energy and National Awad for Excellence in Energy Efficiency, Ministry of Power and National Award for Excellence in Energy Management by confederation of Indian Industry (CII).
The society witnessed growth in strength and stature from a modest membership of 57 in 1967 to around 40,000 cooperative societies at present, acquiring a cooperative character in totality.To encourage cooperatives and cooperative development work, IFFCO felicitate eminent cooperators with cooperative awards “Sahakarita Bandhu Award” and “ahakarita Ratna Award” every year and organizes the Jawaharlal Nehru Memorial IFFCO lecture.
Farmers Development Programme
IFFCo undertakes several social development activities in the areas of Community Development and welfare of poor and marginal farmers. The society continued to focus its efforts on the development of model agricultural villages with an aim to bring about an overall upliftment in the living standards of the rural community through integrated rural development with emphasis on agriculture development, creation of drinking water facilities, medical and veterinary checkup etc.
Various promotional and extension programmes during the year focused on improving soil health, promoting balanced use of fertilizer. During the year, 5072 field programmes, 1132 sale point personnel Training Programmes, 165 crop seminars were organized, 132010 soil samples were analysed in different states. It worked intensively in 17 special projects on agricultural, social and community development.
24 special projects on agriculture, social and community development programmes in various states are progressing well.
IFFCO has initiated a project Soil Rejuvenation and Productivity Enhancement Project in Bighapur block of Unnao district in Uttar Pradesh. The project is being implemented with a thrust on integrated approach viz., soil testing, green manuring, on farm preparation of organic manure, introduction of hybrid crops, water resource development etc. the results of the project are encouraging with farmers witnessing two-fold increase in their yield with an average increase of 25 per cent with the same input cost. The project has been now extended to over 600 villages all over India.
The society has instituted 18 chairs at Agricultural Universities / Cooperative institutions in the disciplines of agronomy, soil science, Agro Economics, Agricultural Extension, Cooperation and Fertiliser technology to provide a link between these institutions in areas of research, education and extension.
To strengthen the village societies, 227 Storage-cum-Community Centres are in operation and 4 more centres are in different stage of completion. These centres are utilized for storage of fertilizers and agricultural inputs, apart from providing venues for organizing agricultural extension activities and social functions for villagers.
IFFCO has been growing steadily with stepping up investments in related business through various Joint Ventures and Associates companies by looking at new opportunities that are unfolding as well as creating value addition in the core fertilizer sector. The details of its associates are as under:
IFFCO-Tokio General Insurance Company (IFFCO-Tokio)
During 2012-13, IFFCO-TOKIO recorded a GWP of Rs. 2649 crores and Profit Before Tax of Rs.196.28 crore. It has taken various measures to bring insurance to the doorsteps of beneficiaries and has opened Bima Kendras all over India. The unique rural products of the company like Sankatharan Bima Yojana, Barish Bima Yojna, Kisan Suvidha Bima Yojna, Mausam Bima Yojna cater to the insurance needs of the farming community. ITGI with its micro insurance initiatives like Janta Bima Yojna, Jansuraksha Bima Yojna, Janswathya Bima Yojna and Mahila Surakhsa Bima Yojna has been able to take forward the message and benefits of insurance to underprivileged particularly to rural masses.
Oman India Fertiliser Company (OMIFCO)
IFFCO contributed 25 percent in the equity of this company. During the year ended 31st December, 2012, OMIFCO had performed well. The Company Sold 18 Lakh MT of Urea, 1.5 lakh tone surplus Ammonia with its revenues at US$ 404 million and Profit after tax at US$ 201 Million.
Jordan India Fertilizer Company (JIFCO)
IFFCO and Jordan Phosphates Mines Company Ltd (JPMC) had formed a Limited Liability Joint Venture Company, namely Jordan India Fertiliser Company (JIFCO) in Amman, Jordan under the ‘FreeZone’ system to set up Phophoric Acid Plant with annual capacity of 4,75,000 tonnes. P205 at Eshidya in Jordan. IFFCO and KIT hold 52 per cent equity, while JPMC holds 48 percent equity. JPMC will make available the required quantity of rock phosphate for the project.
Industries Chimiques Du Senegal (ICS)
IFFCO holds 18.54 per cent equity in ICS, which manufactures phosphoric acid and phosphatic fertilizers. ICS has capacity to produce 660,000 MT of phosphoric acid (P205) Per year.ICS exported 363750 tonnes of phosphoric acid in times of P205 to IFFCO in the year 2012.
Kisan International Trading FZE (KIT)
Kisan international Trading FZE (KIT) was set up as a wholly owned subsidiary in Dubai in April 2005. KIT has made strategic investments in leading organizations like IFFCO – Canada, America Petrogas Inc, Canada, Growmax Agricorp, Canada and JIFCO who have credible resources of rock phosphate, potash, oil & gas and other products. These strategic investments allows IFFCO to have footprints across the globe. KIT has remained all along a profitable establishment.
Americas Petrogas Inc.Canada
IFFCO has ventured into Potash as well as Gas and Oil Exploration Sectors by acquiring 15 per cent stake in Americas Petrogas Inc.(API) along with 20 per cent stake in its subsidiary GrowMax Agri Corp., Canada, API.
IFFCO Canada Enterprise Ltd. (IFFCO Canada)
Incorporated July, 2012 in Quebec, Canada for setting up an Ammonia – Urea Project having initial capacity of 2200 metric tons per day of ammonia and 3850 metric tons per day of urea. IFFCO’s subsidiary KIT holds initial shareholding in this company.
Indian Farm Forestry development Cooperative Ltd. (IFFDC)
IFFDC was promoted in 1993 with the prime objective of development of wasteland for social forestry. IFFDC initially implemented afforestation and rural development projects in Uttar Pradesh, Madhya Pradesh and Rajasthan. With the passage of time, the area of operation has been extended to Uttarkhand, Jharkhand, Orissa, Chhattisgarh, Andhra Pradesh, West Bengal, Haryana, Punjab, Tamilnadu, Maharashtra and Gujarat. Afforestation in 28000 hectares of wasteland had been achieved by promoting 147 village level Primary Farm Forestry Cooperative Societies in various states of the country.
Indian Potash Limited (IPL)
IPL is primarily engaged in trading of imported potassic and non-potassic fertilizers. IFFCO holds 34 per cent in its equity. The company achieved the sales turnover of Rs.25773 crores during the year 2011 -12.
IFFCO kisan Bazar & Logistics Ltd. (IKBLL)
IKBLL is setting up a capative Barge Jetty with a handling capacity of 2.0 MMTPA adjacent to Kandla plant and next to Liquid Cargo jetty for receiving solid raw materials and imported fertilizers.
IFFCO Foundation, a think tank of IFFCO, continued to support farmer members in agricultural development through technology transfer. It provided forum for exchange of thoughts on issues relating to food security, agricultural & cooperative development.
Cooperative Rural Development Trust (CORDET)
Cooperative Rural Development Trust provides practical training to farmers to improve their skill in farming and allied areas i.e. animal husbandry, horticulture, bee-keeping, pisciculture, printing, tailoring, fruit and vegetable preservation etc. the trust operates from Phulpur in Uttar Pradesh and from Kalol and Kandla in Gujarat. It also provides free soil testing facilities to the farmers. During 2012-13, CORDET tested 78238 soil samples and organized 228 training programmes benefiting 11080 farmers including women from various states.
IFFCO Kisan Sewa Trust (IKSL)
IFFCO Kisan Sanchar Limited (IKSL) was incorporated in April, 2007 with the objective of empowering farmers with pertinent information to improve decision making ability towards sustainable agriculture and better living. During the financial year 2012-13, IKSL has further consolidated its activities in 18 states by providing location specific, time sensitive information and SMS alerts to its rural subscribers. In 2012-13 recorded a turnover of Rs.225 crore with a provisional Profit before Tax of Rs.8.25 crore.
IKSL has been roped in to manage Kisan Call Centre (KCC) services of the Deptt. Of Agriculture and Cooperation, Ministry of Agriculture. During the year, the total landed calls were 70,42,648.
IFFCO Kisan SEZ Limited (IKSEZ)
IFFCO is also setting up multi-product ‘IFFCO Kisan SEZ’ at Nellore (Andhra Pradesh) with primary Focus on Food Processing and Agri Based Industries. The formal approval for ‘Development, Operation and Maintenance of the Multi product Special Economy Zone” had been received from the Government of India. The Master plan of the SEZ has been finalized. Letters of intent have been received from various overseas and domestic investors for initiating their operations in SEZ.
IFFCO has 8.8.88 per cent stake in NCDEX equity. The exchange offers trading in 29 commodities which include 21 agriculture commodities, 3 bullion, 2 metals and 3 in energy sector. IFFCO with equity stake of 20.64%, is the largest shareholder in National Collateral Management Services Limited (NCMSL), which provides services to manage risks across various stages of commodity and inventory handling under a single umbrella. NCMSL operates in over 800 warehouses across India and recorded a total income of Rs.203.93 crore and PAT of Rs.10.15 crore.
Universal Commodity Exchange Ltd.(UCX)
UCX is the next generation national level commodity exchange for derivatives market across all commodity segments in which IFFCO acquired 15% stake by investing Rs.15 crore. UCX has started commercial operation from 19th April, 2013.