Description
An internship is a method of on-the-job training for white-collar and professional careers. Internships for professional careers are similar to apprenticeships for trade and vocational jobs. Although interns are typically college or university students, they can also be high school students or post-graduate adults.
“FACT” : AN ORGANIZATION STUDY
By, Arun.M.C III Sem,MBA- BU Reg No: 06UHCM6009
THE FERTILISERS AND CHEMICALS TRAVANCORE LIMITTED
? ? ? ?
FACT, India’s first large scale fertilizer unit. FACT was formed on the banks of River Periyar, Kochin, Kerala in 1944. FACT became kerala state public sector enterprises on 15th August 1960. The government of India became the majour shareholder on 21st November 1962
?
?
?
FACT Engineering and Design Organization (FEDO) was set up on 24 july 1965 to meet the emerging need for indigenous capabilities in vital area of Engineering, design and Consultancy for establishing large and modern fertilizer plants. FACT Engineering Works (FEW) was established on 13th April 1966 as a unit to fabricate and install equipment for fertilizer plants. The Cochin Division of FACT, the 2nd production Unit was set up at Ambalamedu and 1st phase was commissioned in 1973.
VISION AND MISSION
VISION
Within a decade FACT will emerge as a leader in the business if agricultural inputs industrial intermediaries and engineering consultancy and construction of industrial and infrastructure facilities.
MISSION FACT’s mission is to be a globally competitive producer and supplies of agricultural inputs and extend world class engineering and technology services with maximum share holder value.
DIVISIONS
?
UDYOGAMANDAL DIVISION
?
? ? ? ? ? ?
COCHIN DIVISION
PETROCHEMICAL DIVISION MARKETING DIVISION
FACT ENGINEERING & DESIGN ORGANIZATION
FACT ENGINEERING WORKS FACT RESEARCH & DEVELOPMENT CENTRE
COMPUTER SERVICE CENTREMANAGEMENT DEVELOPMENT CENTRE
DEPARTMENTS
? ? ? ? ? ? ? ?
HUMAN RESOURCE DEPARTMENT
MATERIALS DEPARTMENT
PRODUCTION PLANNING MARKETING DEPARTMENT SALES DEPARTMENT DISTRIBUTION DEPARTMENT MARKETING RESEARCH DEPARTMENT FINANCE DEPARTMENT
?
QUALITY CONTROL DEPARTMENT
PRODUCT PROFILE
Straight Fertilisers
? ?
Ammonium Sulphate Urea Factomfos 20:20:0:15 DiAmmonium Phosphate
Complex Fertilizers
? ?
Fertilizer Mixtures
?
? ? ?
NPK Mixtures Rose mixture Vegetable Mixture Garden Mixture Anhydrous Ammonia Sulphuric Acid Caprolactum Nitric Acid
Chemicals
? ? ? ?
COMPETITOR’S
?
SPIC
- Southern Petrol Industrial Chemicals
(Urea, di-ammonium phosphate and intermediaries)
?
MFL
- Madras Fertilizer Ltd (NPK 17:17:17 and variants Vijay urea, biofertilizers,Agro chemicals)
? ? ? ?
NFL MFL RCF IFFCO
- Nagarjuna Fertilizer Ltd.(Urea) - Manglore Fertilizer Ltd. - Rastria Chemical Fertilizers Ltd. - Indian Farmers fertilizer Co-operative. (Urea, di-ammonium phosphate and complex fertilizers)
SWOT ANALYSIS
STRENGTH ? High capacity utilization. ? ISO certification of most of the divisions. ? Good support with farmers/end user segment . ? One of the producers of Caprolactum in India is of world class quality.
?
Very large asset base.
Good engineering and consultancy design, perhaps one among the best in India fertilizer segment Strong dealer network in South India
Market share of some products are shrinking due to increase in competition from other manufactures. Interest burden created due to the ammonia plant has significant impact on operating results. The average ages of employees are very high. Due to freeze or recruitment the numbers of younger professionals are decreasing Some managerial personals were handling more than one position
?
?
WEAKNESS
?
?
?
?
OPPORTUNITIES Alternative less expensive sources of energy and other inputs. Large infrastructure facility Strong marketing network in South India Strong presence in the fertilizer segment. Opportunities for product diversification. FACT, Egypt and Syria project Planning to set up food processing unit THREATS Steep rise in the prices of raw materials/ feed stock like Naphtha Increased financial constraints Lack of product diversification Increasing competition in marketing of complex fertilizers High labour component impacting productivity Diminishing market for Caprolactum High cost for the raw material Naphtha
FINDINGS
? ? ?
? ? ?
High cost of production because of using naphtha as raw material Domestic products are affected by global competition Subsidy grants are now getting lower and lower, this will reduce the protection enjoyed in past Technology is getting obsolete Market capturing has to be improved Global competition is hitting very badly
SUGGESTIONS
?
FACT’s products have already captured South Indian market hence there is a need to expand operations to North India Cost of production can be reduced by using most modern methods and modify plant to become more efficient The programs like Agricultural seminars and farmers education about new way of cultivation are to be done more efficiently
?
?
?
The cost of Naphtha is very high and its use for the production of Ammonia leads to high cost of production, it could be changed with LNG as soon as possible
FACT Urea has high demand in South India. Large scale production is advisable by using imported ammonia which is available at cheaper cost. The ammonia plant in the island is more convenient for the production. So it will not incur any additional cost
?
CONCLUSION
It has been a great experience for me to do the Organization Study in an organization like FACT Ltd as I understood the importance of FACT for the farmers and also for the Indian economy. FACT is the mother unit of fertilizer industry in India, which has established a name for itself by its extra ordinary performance during the previous years. But now it is in the midst of crises as it is making huge losses. The main reason for this is due to the pricing mechanism of the central government for the fertilizer. Other than this there are many other reasons for its decline such as reduction in government subsidy, new economic policy of liberalization, privatization and globalization which has led to great challenges in the economic and industrial growth. The change of government attitude towards the public sector has reduced the protection enjoyed in the past. But FACT still plays its role as the pioneer in the progress of nurturing the South Indian soil
THANKS
doc_535302326.ppt
An internship is a method of on-the-job training for white-collar and professional careers. Internships for professional careers are similar to apprenticeships for trade and vocational jobs. Although interns are typically college or university students, they can also be high school students or post-graduate adults.
“FACT” : AN ORGANIZATION STUDY
By, Arun.M.C III Sem,MBA- BU Reg No: 06UHCM6009
THE FERTILISERS AND CHEMICALS TRAVANCORE LIMITTED
? ? ? ?
FACT, India’s first large scale fertilizer unit. FACT was formed on the banks of River Periyar, Kochin, Kerala in 1944. FACT became kerala state public sector enterprises on 15th August 1960. The government of India became the majour shareholder on 21st November 1962
?
?
?
FACT Engineering and Design Organization (FEDO) was set up on 24 july 1965 to meet the emerging need for indigenous capabilities in vital area of Engineering, design and Consultancy for establishing large and modern fertilizer plants. FACT Engineering Works (FEW) was established on 13th April 1966 as a unit to fabricate and install equipment for fertilizer plants. The Cochin Division of FACT, the 2nd production Unit was set up at Ambalamedu and 1st phase was commissioned in 1973.
VISION AND MISSION
VISION
Within a decade FACT will emerge as a leader in the business if agricultural inputs industrial intermediaries and engineering consultancy and construction of industrial and infrastructure facilities.
MISSION FACT’s mission is to be a globally competitive producer and supplies of agricultural inputs and extend world class engineering and technology services with maximum share holder value.
DIVISIONS
?
UDYOGAMANDAL DIVISION
?
? ? ? ? ? ?
COCHIN DIVISION
PETROCHEMICAL DIVISION MARKETING DIVISION
FACT ENGINEERING & DESIGN ORGANIZATION
FACT ENGINEERING WORKS FACT RESEARCH & DEVELOPMENT CENTRE
COMPUTER SERVICE CENTREMANAGEMENT DEVELOPMENT CENTRE
DEPARTMENTS
? ? ? ? ? ? ? ?
HUMAN RESOURCE DEPARTMENT
MATERIALS DEPARTMENT
PRODUCTION PLANNING MARKETING DEPARTMENT SALES DEPARTMENT DISTRIBUTION DEPARTMENT MARKETING RESEARCH DEPARTMENT FINANCE DEPARTMENT
?
QUALITY CONTROL DEPARTMENT
PRODUCT PROFILE
Straight Fertilisers
? ?
Ammonium Sulphate Urea Factomfos 20:20:0:15 DiAmmonium Phosphate
Complex Fertilizers
? ?
Fertilizer Mixtures
?
? ? ?
NPK Mixtures Rose mixture Vegetable Mixture Garden Mixture Anhydrous Ammonia Sulphuric Acid Caprolactum Nitric Acid
Chemicals
? ? ? ?
COMPETITOR’S
?
SPIC
- Southern Petrol Industrial Chemicals
(Urea, di-ammonium phosphate and intermediaries)
?
MFL
- Madras Fertilizer Ltd (NPK 17:17:17 and variants Vijay urea, biofertilizers,Agro chemicals)
? ? ? ?
NFL MFL RCF IFFCO
- Nagarjuna Fertilizer Ltd.(Urea) - Manglore Fertilizer Ltd. - Rastria Chemical Fertilizers Ltd. - Indian Farmers fertilizer Co-operative. (Urea, di-ammonium phosphate and complex fertilizers)
SWOT ANALYSIS
STRENGTH ? High capacity utilization. ? ISO certification of most of the divisions. ? Good support with farmers/end user segment . ? One of the producers of Caprolactum in India is of world class quality.
?
Very large asset base.
Good engineering and consultancy design, perhaps one among the best in India fertilizer segment Strong dealer network in South India
Market share of some products are shrinking due to increase in competition from other manufactures. Interest burden created due to the ammonia plant has significant impact on operating results. The average ages of employees are very high. Due to freeze or recruitment the numbers of younger professionals are decreasing Some managerial personals were handling more than one position
?
?
WEAKNESS
?
?
?
?
OPPORTUNITIES Alternative less expensive sources of energy and other inputs. Large infrastructure facility Strong marketing network in South India Strong presence in the fertilizer segment. Opportunities for product diversification. FACT, Egypt and Syria project Planning to set up food processing unit THREATS Steep rise in the prices of raw materials/ feed stock like Naphtha Increased financial constraints Lack of product diversification Increasing competition in marketing of complex fertilizers High labour component impacting productivity Diminishing market for Caprolactum High cost for the raw material Naphtha
FINDINGS
? ? ?
? ? ?
High cost of production because of using naphtha as raw material Domestic products are affected by global competition Subsidy grants are now getting lower and lower, this will reduce the protection enjoyed in past Technology is getting obsolete Market capturing has to be improved Global competition is hitting very badly
SUGGESTIONS
?
FACT’s products have already captured South Indian market hence there is a need to expand operations to North India Cost of production can be reduced by using most modern methods and modify plant to become more efficient The programs like Agricultural seminars and farmers education about new way of cultivation are to be done more efficiently
?
?
?
The cost of Naphtha is very high and its use for the production of Ammonia leads to high cost of production, it could be changed with LNG as soon as possible
FACT Urea has high demand in South India. Large scale production is advisable by using imported ammonia which is available at cheaper cost. The ammonia plant in the island is more convenient for the production. So it will not incur any additional cost
?
CONCLUSION
It has been a great experience for me to do the Organization Study in an organization like FACT Ltd as I understood the importance of FACT for the farmers and also for the Indian economy. FACT is the mother unit of fertilizer industry in India, which has established a name for itself by its extra ordinary performance during the previous years. But now it is in the midst of crises as it is making huge losses. The main reason for this is due to the pricing mechanism of the central government for the fertilizer. Other than this there are many other reasons for its decline such as reduction in government subsidy, new economic policy of liberalization, privatization and globalization which has led to great challenges in the economic and industrial growth. The change of government attitude towards the public sector has reduced the protection enjoyed in the past. But FACT still plays its role as the pioneer in the progress of nurturing the South Indian soil
THANKS
doc_535302326.ppt