National Retail Consumer Conference
[ 24th February, 2013]
IFFCO - A SUCCESSFUL COOPERATIVE IN
INDIA AND BEYOND
G N Saxena
Director (Cooperative Development)
IFFCO, India
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.
GROWTH OF IFFCO
* AS ON 31ST MARCH, 2012
PRODUCTION
MANUFACTURING UNITS (FIVE)
UNITS
YEAR
PRODUCT
PROD. CAPACITY
1. KALOL UNIT
-
(1975)
-
UREA
-
0.55 MILLION TONNES
2. KANDLA UNIT
-
(1975)
-
NPK/DAP
-
2.45 MILLION TONNES
3. AONLA UNIT
-
(1988)
-
UREA
-
2.00 MILLION TONNES
4. PHULPUR UNIT
-
(1981)
-
UREA
-
1.70 MILLION TONNES
5. PARADEEP UNIT -
(2005)
-
NPK/DAP
-
1.90 MILLION TONNES
EVERY FOURTH BAG OF UREA AND
EVERY THIRD BAG OF NPK/DAP
PRODUCED IN INDIA IS OF IFFCO.
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 2011-12
UREA
NPK/DAP
TOTAL
: 6.8 MILLION TONNES
: 5.4 MILLION TONNES
: 12.20 MILLION TONNES
FINANCIAL PERFORMANCE
DURING YEAR 2011-12*
TURNOVER
Rs. 255990 MILLION
(£ 3200MILLION)
PROFIT BEFORE TAX
Rs. 10177.80 MILLION
(£ 127 MILLION)
PROFIT AFTER TAX
Rs. 7721.80 MILLION
(£ 96 MILLION)
NET WORTH
Rs. 56453.70 MILLION
(£ 705 MILLION)
* AS ON 31ST MARCH, 2012
DIVIDEND
COMMENCED PAYING DIVIDEND TO ITS SHAREHOLDERS
FROM
THE VERY FIRST YEAR OF GOING INTO COMMERCIAL OPERATIONS
IN 1975.
CONTINUOUSLY FOR LAST 38 YEARS , IFFCO IS PAYING DIVIDEND TO
ITS MEMBERS.
FOR THE LAST CONSECUTIVE ELEVEN YEARS, IFFCO IS PAYING
DIVIDEND @ 20% (MAXIMUM PERMISSIBLE DIVIDEND AS PER
BYE-LAWS) TO ITS MEMBER SOCIETIES.
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
11
DIRECTORS FROM STATE FEDERATION 10
FUNCTIONAL DIRECTORS
COOPTED DIRECTORS
(EXPERTS FROM FIELD)
DIRECTORS AMONG THEMSELVES ELECT
CHAIRMAN AND VICE- CHAIRMAN OF IFFCO.
7
2
TOTAL
NUMBER OF
DIRECTORS
30
OUR CONCERNS
EMPOWERMENT OF MEMBER SOCIETIES & FARMERS
IMPROVEMENT IN BUSINESS EFFICIENCY
AGRICULTURAL PRODUCTIVITY
ENVIRONMENT
DEPLETING SOIL HEALTH
ADHERENCE TO COOPERATIVE
SUSTAINABLE DEVELOPMENT
PRINCIPLES
AND
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
 FARMERS MEETINGS
 ON-FARM DEMONSTRATIONS
 CROP SEMINARS
 SOIL TESTING CAMPAIGNS
 FIELD DAYS
PROMOTIONAL ACTIVITIES.
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.
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”.
IFFCO- DIVERSIFICATION
MULTIPLE
DIVERSIFICATION
FERTILISERS
ONE AIM :
GENERAL INSURANCE
INTERNATIONAL TRADING
SPECIAL ECONOMIC ZONE
POWER GENERATION
RURAL TELEPHONY
FARM FORESTRY
COMMODITY EXCHANGES
TO EMPOWER THE
FARMERS AND
STRENGTHEN THE
COOPERATIVE MOVEMENT
IFFCO ASSOCIATES - INDIA
IFFCO-TOKIO GENERAL INSURANCE COMPANY LTD.
 IFFCO HOLDS 72.64% SHAREHOLDING WITH INVESTMENT OF
Rs. 3945.80 MILLION (£ 49 MILLION).
 CATER THE INSURANCE REQUIREMENT OF THE FARMERS.
IFFCO KISAN SANCHAR LTD.
 IFFCO HOLDS 72.99% SHAREHOLDING WITH INVESTMENT OF
Rs. 36.5 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. 75440 MILLION
(£ 943MILLION).
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
REMUNERATIVE PRICES FOR THEIR AGRI COMMODITIES.
GET
NATIONAL COLLATERAL MANAGEMENT SERVICES LTD.
 IFFCO HOLDS 20.64% SHAREHOLDING WITH INVESTMENT OF Rs.
277.50 MILLION (£ 3.5 MILLION).
 PROVIDES
WAREHOUSING
MANAGEMENT SERVICES.
AND
COLLATERAL
RISK
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.
CONTINUED….
INDIAN POTASH LTD.
 IFFCO HOLDS 34% SHAREHOLDING WITH INVESTMENT OF RS. 27
MILLION (£ 0.4 MILLION).
 ENGAGED IN
FERTILISERS
IKBLL
MARKETING
OF
POTASH
AND
IMPORTED
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.
IFFCO ASSOCIATES - OVERSEAS
OMAN INDIA FERTILISER COMPANY, OMAN
 CO-PROMOTED BY OMAN OIL COMPANY SAOC.
 IFFCO HOLDS 25% SHAREHOLDING WITH INVESTMENT OF Rs.
3290.80 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. 2705.40 MILLION (£ 34 MILLION) WITH
EQUITY SHAREHOLDING OF 27 PERCENT.
 EXPECTED TO START PRODUCTION IN 2013.
CONTINUED….
INDUSTRIES CHIMIQUES DU SENEGAL, SENEGAL
 IFFCO HOLDS 18.54% SHAREHOLDING WITH INVESTMENT
OF Rs. 803.7 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.
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.
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.
IFFCO SOCIAL ASPECTS
IFFCO
IS
COMMITED
DEVELOPMENT,
TOWARDS
BALANCING
CAPITAL
SUSTAINABLE
GAINS
WITH
ECONOMIC
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 2011-12.
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
CONTINUED….
IFFCO FOUNDATION
 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.
&
IFFCO - PRESENCE IN INDIA
MANUFACTURING UNITS
COVERS WHOLE INDIA
ZONAL OFFICE :
5
STATE OFFICE
: 20
AREA OFFICE
: 70
GLOBAL PRESENCE
JORDAN
CANADA
DUBAI
SENEGAL
OMAN
PERU
AUSTRALIA
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.
IFFCO KISAN SEZ
INDIA’S FIRST AGRI-BASED SEZ IN
NELLORE DISTRICT OF ANDHRA PRADESH.
SPREAD OVER APPROX. 1000 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.
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
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 .
INDIA’S POSITION IN WORLD AGRICULTURE