1. IFFCO - A SUCCESSFUL COOPERATIVE IN INDIA AND BEYOND
National Retail Consumer Conference [ 24th February, 2013]
IFFCO - A SUCCESSFUL COOPERATIVE IN INDIA AND BEYOND
G N Saxena
Director (Cooperative Development)
IFFCO, India

2. IFFCO- OVERVIEW
A MULTI- STATE COOPERATIVE SOCIETY INCORPORATED ON 3RD NOVEMBER 1967, AT THE INITIATIVE OF COOPERATIVE LEAGUE OF USA (CLUSA) NOW KNOWN AS NCBA; AND EFFORTS OF GOVERNMENT OF INDIA.
WHOLLY OWNED BY THE MEMBER COOPERATIVE SOCIETIES.
LARGEST PRODUCER & MARKETEER OF FERTILISERS IN INDIA, WITH ASSOCIATION OF ABOUT 40,000 MEMBER SOCIETIES & OVER 55 MILLION FARMERS.

3. GROWTH OF IFFCO
* AS ON 31ST MARCH, 2012

4. MANUFACTURING UNITS (FIVE)
PRODUCTION
MANUFACTURING UNITS (FIVE)
UNITS YEAR PRODUCT PROD. CAPACITY
KALOL UNIT (1975) UREA MILLION TONNES
KANDLA UNIT (1975) NPK/DAP MILLION TONNES
AONLA UNIT (1988) UREA MILLION TONNES
PHULPUR UNIT (1981) UREA MILLION TONNES
PARADEEP UNIT (2005) NPK/DAP MILLION TONNES
EVERY FOURTH BAG OF UREA AND EVERY THIRD BAG OF NPK/DAP PRODUCED IN INDIA IS OF IFFCO.

5. MARKETING CHANNEL
DISTRIBUTION OF FERTILISERS ONLY THROUGH THE COOPERATIVE SYSTEM:
STATE LEVEL APEX COOPERATIVE MARKETING FEDERATION ACTS AS WHOLESALER.
DIRECT SUPPLIES TO SOCIETIES IN SOME STATES.
158 IFFCO FARMERS SERVICE CENTRES.
SALE OF FERTILISER MATERIALS
DURING
UREA : MILLION TONNES
NPK/DAP : MILLION TONNES
TOTAL : MILLION TONNES

6. FINANCIAL PERFORMANCE
DURING YEAR *
TURNOVER Rs MILLION
(£ 3200MILLION)
PROFIT BEFORE TAX Rs MILLION
(£ 127 MILLION)
PROFIT AFTER TAX Rs MILLION
(£ 96 MILLION)
NET WORTH Rs MILLION
(£ 705 MILLION)
* AS ON 31ST MARCH, 2012

7. DIVIDEND
COMMENCED PAYING DIVIDEND TO ITS SHAREHOLDERS FROM THE VERY FIRST YEAR OF GOING INTO COMMERCIAL OPERATIONS IN
CONTINUOUSLY FOR LAST 38 YEARS , IFFCO IS PAYING DIVIDEND TO ITS MEMBERS.
FOR THE LAST CONSECUTIVE ELEVEN YEARS, IFFCO IS PAYING 20% (MAXIMUM PERMISSIBLE DIVIDEND AS PER BYE-LAWS) TO ITS MEMBER SOCIETIES.

8. TOTAL NUMBER OF DIRECTORS
GOVERNANCE IN IFFCO
IFFCO HAS A “REPRESENTATIVE GENERAL BODY (RGB)” WHICH AS PER LAW EXCERCISES THE RIGHTS OF THE GENERAL BODY.
MEMBER SOCIETIES FIRST ELECT MEMBERS OF RGB (ABOUT 1000) AND RGB MEMBERS ELECTS THE ELEVEN DIRECTORS ON THE BOARD.
THE COMPOSITION OF THE BOARD IN IFFCO IS AS FOLLOWS:-
ELECTED DIRECTORS
DIRECTORS FROM STATE FEDERATION 10
FUNCTIONAL DIRECTORS 7
COOPTED DIRECTORS
(EXPERTS FROM FIELD)
DIRECTORS AMONG THEMSELVES ELECT
CHAIRMAN AND VICE- CHAIRMAN OF IFFCO.
TOTAL NUMBER OF DIRECTORS 30

9. OUR CONCERNS EMPOWERMENT OF MEMBER SOCIETIES & FARMERS
IMPROVEMENT IN BUSINESS EFFICIENCY
AGRICULTURAL PRODUCTIVITY
ENVIRONMENT
DEPLETING SOIL HEALTH
ADHERENCE TO COOPERATIVE PRINCIPLES AND SUSTAINABLE DEVELOPMENT

10. SERVICE TO FARMERS MAIN THRUST OF SERVICE IS ON
PROMOTION OF BALANCED FERTILIZATION
TRANSFER OF MODERN AGRICULTURAL TECHNOLOGY TO THE FARMING COMMUNITY
SOIL REJUVENATION CAMPAIGN.
CONDUCTS VARIOUS EXTENSION AND PROMOTIONAL ACTIVITIES.
FARMERS MEETINGS
ON-FARM DEMONSTRATIONS
CROP SEMINARS
SOIL TESTING CAMPAIGNS
FIELD DAYS

11. CONTINUED…. SEED MULTIPLICATION PROGRAMME VILLAGE ADOPTION PROGRAMME
FARMERS VISIT TO RESEARCH INSTITUTES/ AGRI-VARSITIES, INTER-STATE AND MANUFACTURING PLANTS.
DISTRIBUTION OF CRITICAL INPUT PACKAGE (CIP) KITS.
SPECIAL PROJECTS ON LAND RECLAMATION, DRY LAND FARMING, WATERSHED MANAGEMENT PROJECT AND DEVELOPING WATER RESOURCES.

12. MEMBER EMPOWERMENT
ENHANCED PROFITABILITY OF MEMBER SOCIETIES THROUGH DIVIDEND ON THEIR EQUITY AND REBATES ON PRODUCT FOR THEIR ECONOMIC EMPOWERMENT.
MARKETING OF PRODUCTS ENTIRELY THROUGH MEMBER COOPERATIVES HELPS IN IMPROVING THEIR ECONOMIC VIABLITY & BUSINESS CAPABILITIES.
- HANDLING AND TRANSPORTATION OF FERTILISERS.
- STORAGE OF FERTILISERS IN SOCIETIES WAREHOUSES.
- INSURANCE BUSINESS
- RURAL TELEPHONY
PROVIDE ACCIDENTAL INSURANCE TO THE FARMING COMMUNITY THROUGH UNIQUE ACCIDENT INSURANCE POLICY“SANKAT HARAN BIMA YOJNA”.

13. IFFCO- DIVERSIFICATION
FERTILISERS
GENERAL INSURANCE
INTERNATIONAL TRADING
SPECIAL ECONOMIC ZONE
POWER GENERATION
RURAL TELEPHONY
FARM FORESTRY
COMMODITY EXCHANGES
MULTIPLE DIVERSIFICATION
ONE AIM :
TO EMPOWER THE FARMERS AND STRENGTHEN THE COOPERATIVE MOVEMENT

14. IFFCO ASSOCIATES - INDIA
IFFCO-TOKIO GENERAL INSURANCE COMPANY LTD.
IFFCO HOLDS 72.64% SHAREHOLDING WITH INVESTMENT OF Rs MILLION (£ 49 MILLION).
CATER THE INSURANCE REQUIREMENT OF THE FARMERS.
IFFCO KISAN SANCHAR LTD.
IFFCO HOLDS 72.99% SHAREHOLDING WITH INVESTMENT OF Rs MILLION (£ 0.5 MILLION).
PROVIDE TELECOM SERVICES IN THE RURAL INDIA.
IFFCO CHHATTISGARH POWER LTD
DIVERSIFIED INTO POWER SECTOR
THE PROJECT COST IS ESTIMATED AT Rs MILLION (£ 943MILLION).

15. CONTINUED…. NATIONAL COMMODITY & DERIVATIVE EXCHANGE
IFFCO HOLDS 8.88% SHAREHOLDING WITH INVESTMENT OF Rs. 135 MILLION (£ 1.6 MILLION).
FOR PROVIDING A PLATFORM FOR FARMERS TO GET REMUNERATIVE PRICES FOR THEIR AGRI COMMODITIES.
NATIONAL COLLATERAL MANAGEMENT SERVICES LTD.
IFFCO HOLDS 20.64% SHAREHOLDING WITH INVESTMENT OF Rs MILLION (£ 3.5 MILLION).
PROVIDES WAREHOUSING AND COLLATERAL RISK MANAGEMENT SERVICES.
UNIVERSAL COMMODITY EXCHANGE LTD.
IFFCO ACQUIRES EQUITY STAKE WITH INVESTMENT OF Rs. 150 MILLION (£ 1.8 MILLION).
TO ENSURE THAT FARMERS GET
MARKET PRICE FOR THEIR AGRI COMMODITIES.

16. IKBLL CONTINUED…. INDIAN POTASH LTD.
IFFCO HOLDS 34% SHAREHOLDING WITH INVESTMENT OF RS. 27 MILLION (£ 0.4 MILLION).
ENGAGED IN MARKETING OF POTASH AND IMPORTED FERTILISERS
IKBLL
IFFCO KISAN BAZAR & LOGISTICS LTD.
WHOLLY OWNED SUBSIDIARY OF IFFCO WITH INVESTMENT OF Rs.150 MILLION (£ 1.80 MILLION).
INCORPORATED WITH OBJECTIVE TO UNDERTAKE BUSINESS IN AGRI-INPUTS & CONSUMER GOODS.
EXPAND ITS ACTIVITY INTO SETTING UP & DEVELOPMENT OF LOGISTICS, INFRASTRUCTURE, INDUSTRIAL AND COMMERCIAL STRUCTURES.

17. IFFCO ASSOCIATES - OVERSEAS
OMAN INDIA FERTILISER COMPANY, OMAN
CO-PROMOTED BY OMAN OIL COMPANY SAOC.
IFFCO HOLDS 25% SHAREHOLDING WITH INVESTMENT OF Rs MILLION (£ 41 MILLION).
MANUFACTURES AMMONIA AND UREA.
JORDAN INDIA FERTILIZER COMPANY, JORDAN
JOINT VENTURE COMPANY, WITH JORDAN PHOSPHATE MINES COMPANY LTD (JPMC) TO SET UP A PHOSPHORIC ACID PLANT AT ESHIDIYA IN JORDAN.
INVESTMENT OF Rs MILLION (£ 34 MILLION) WITH EQUITY SHAREHOLDING OF 27 PERCENT.
EXPECTED TO START PRODUCTION IN 2013.

18. CONTINUED…. INDUSTRIES CHIMIQUES DU SENEGAL, SENEGAL
IFFCO HOLDS 18.54% SHAREHOLDING WITH INVESTMENT OF Rs MILLION (£ 10 MILLION).
MANUFACTURES PHOSPHORIC ACID FOR EXPORTS & PHOSPHATIC FERTILISERS FOR DOMESTIC CONSUMPTION.
KISAN INTERNATIONAL TRADING FZE, DUBAI
A WHOLLY OWNED SUBSIDIARY SET UP IN DUBAI, WITH INVESTMENT OF Rs. 12 MILLION (£ 0.2 MILLION).
HANDLE IMPORT, EXPORT & LOGISTIC SUPPORT FOR VARIOUS FERTILISER, FERTILISER RAW MATERIALS & INTERMEDIATES.

19. CONTINUED…. AMERICAS PETROGAS INC., CANADA
ACQUIRED ABOUT 15% STAKE IN AMERICAS PETROGAS INC. (API), CANADA, ALONGWITH 20% STAKE IN ITS SUBSIDIARY GROWMAX AGRI CORP., PERU.
API IS HAVING OIL & GAS FIELDS IN ARGENTINA AND POTASH PROJECT IN PERU
LEGEND INTERNATIONAL HOLDING INC., AUSTRALIA
IFFCO ENTERED INTO A SHAREHOLDERS AGREEMENT FOR EQUITY PARTICIPATION IN LEGEND AND IMPORT OF ROCK PHOSPHATE FROM LEGEND’S MINING PROJECT.

20. CONTINUED…. IFFCO CANADA ENTERPRISES LTD., CANADA
INTER- REGIONAL COLLABORATION BETWENN LA COOP FÉDÉRÉE COOPERATIVE OF CANADA & IFFCO.
ESTABLISH AN UREA FERTILISER PLANT IN BÉCANCOUR, CANADA WITH A COMBINED INVESTMENT OF $1.2 BILLION (£ 0.80 BILLION) .
EXPECTED TO START COMMERCIAL PRODUCTION IN 2017.

21. IFFCO SOCIAL ASPECTS
IFFCO IS COMMITED TOWARDS SUSTAINABLE ECONOMIC DEVELOPMENT, BALANCING CAPITAL GAINS WITH SOCIETAL DEVELOPMENT.
IFFCO UNDERTAKES ACTIVITIES IN THE AREA OF COMMUNITY DEVELOPMENT, ENVIRONMENTAL PROTECTION, HEALTH CARE, MEDICAL FACILITIES, LITERACY ENHANCEMENT PROGRAMS.
IFFCO SPENT Rs. 426 MILLION (£ 5 MILLION) ON VARIOUS SOCIAL DEVELOPMENT ACTIVITIES DURING

22. VEHICLES FOR SOCIAL DEVELOPMENT Cooperative Rural Development Trust
IMPROVE THE SKILLS OF THE FARMERS ON VARIOUS ASPECTS OF CROP PRODUCTION
ORGANISING TRAINING WORKSHOPS
SOIL TESTING AND ANALYSIS
Indian Farm Forestry Development Coop. Ltd.
DEVELOPMENT OF FARM FORESTRY
NATURAL RESOURCE CONSERVATION & MANAGEMENT
SUSTAINABLE RURAL LIVELIHOOD IMPROVEMENT
WOMEN EMPOWERMENT
MICRO- ENTERPRISE DEVELOPMENT

23. CONTINUED…. IFFCO FOUNDATION IFFCO KISAN SEWA TRUST
BRAIN TRUST OF IFFCO
PROMOTE COOPERATIVE DEVELOPMENT
ENHANCE TECHNICAL & BUSINESS COMPETENCE OF COOPERATIVES
ORGANIZE TRAINING WORKSHOPS
PROMOTES RURAL ART AND CULTURE.
IFFCO KISAN SEWA TRUST
PROVIDE RELIEF & REHABILITATION TO VICTIMS IN THE EVENT OF NATURAL CALAMITIES
UNDERTAKES PROGRAMMES FOR HEALTH CARE & CRITICAL MEDICAL ATTENTION OF NEEDY FARMERS.

24. IFFCO - PRESENCE IN INDIA
MANUFACTURING UNITS
COVERS WHOLE INDIA
ZONAL OFFICE : 5
STATE OFFICE : 20
AREA OFFICE : 70

25. GLOBAL PRESENCE
JORDAN
CANADA
DUBAI
SENEGAL
OMAN
PERU
AUSTRALIA

26. FUTURE PLANS – VISION 2015
TO STAND AS A GLOBAL LEADER IN FERTILIZERS PRODUCTION THROUGH EXPANSION OF EXISTING MANUFACTURING UNITS AND SETTING OF FERTILISER PRODUCTION FACILITIES IN INDIA AND ABROAD.
STRENGTHENING RAW MATERIAL SOURCING THROUGH STRATEGIC JOINT VENTURES & SYNERGISTIC ACQUISITIONS IN INDIA & ABROAD.
DIVERSIFICATION INTO OTHER PROFITABLE SECTORS AND USEFUL TO FARMERS.
TO HELP THE COOPERATIVE SOCIETIES BECOME ECONOMICALLY STRONG AND PROFESSIONALLY MANAGED.

27. IFFCO KISAN SEZ
INDIA’S FIRST AGRI-BASED SEZ IN NELLORE DISTRICT OF ANDHRA PRADESH.
SPREAD OVER APPROX HECTARES.
LOCATIONAL ADVANTAGE.
BASED ON THE CONCEPT OF
INTEGRATED AGROPARK.
CUSTOM DUTY, EXCISE DUTY, SERVICE TAX, SALES TAX EXEMPTIONS.
INCOME TAX HOLIDAY FOR UPTO 15 YEARS.
WORLD CLASS COMMON INFRASTRUCTURE.

28. BUSINESS OPPORTUNITIES
20 KM NORTH OF NELLORE TOWN.
LOCATED ON NH-5 CONNECTING TWO LARGE METROS.
HAS THE MOST PROMISING SEA PORT, KRISHNAPATNAM AT A DISTANCE OF JUST 40 KM.
BUSINESS OPPORTUNITIES
PROCESSING OF CEREALS & PULSES
PROCESSING OF FRUITS AND VEGETABLES
AQUALCULTURE
MEAT AND POULTRY
DAIRY PROCESSING
MEDICINAL AND AROMATIC PLANTS
FEED MANUFACTURING
NUTRACEUTICALS AND FOOD ADDITIVES
SPICES

29. GOVT. SCHEMES FOR FDI’s IN RETAILING
UNTIL 2011, FDI IN MULTI-BRAND RETAIL IN INDIA WAS PROHIBITED, EVEN SINGLE BRAND RETAIL WAS LIMITED TO 51% OWNERSHIP.
IN JANUARY, 2012 GOVT. OF INDIA APPROVED 100% OWNERSHIP FOR SINGLE BRAND STORES WELCOMING ANYONE IN WORLD TO INNOVATE IN INDIAN RETAIL MARKET PROVIDED RETAILERS SOURCE 30% OF ITS GOODS FROM INDIA.
IN SEPTEMBER, 2012 GOVT. OF INDIA OPENS FDI IN MULTI-BRAND RETAIL TRADING UPTO 51%, SUBJECT TO APPROVAL BY INDIVIDUAL STATES. 10 STATES HAVE ALREADY GIVEN THEIR APPROVAL .

30. INDIA’S POSITION IN WORLD AGRICULTURE

31. THANK YOU !