National Retail Consumer Conference [ 24 - Co

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Transcript National Retail Consumer Conference [ 24 - Co

National Retail Consumer Conference [ 24

th

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 3 RD 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 31 ST MARCH, 2012

PRODUCTION

MANUFACTURING UNITS (FIVE) UNITS 1. KALOL UNIT 2. KANDLA UNIT 3. AONLA UNIT 4. PHULPUR UNIT 5. PARADEEP UNIT YEAR (1975) PRODUCT UREA (1975) (1988) (1981) (2005) NPK/DAP UREA UREA NPK/DAP PROD. CAPACITY 0.55 MILLION TONNES 2.45 MILLION TONNES 2.00 MILLION TONNES 1.70 MILLION TONNES 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 : 5.4 MILLION TONNES TOTAL : 6.8 MILLION TONNES : 12.20 MILLION TONNES

FINANCIAL PERFORMANCE

DURING YEAR 2011-12* TURNOVER PROFIT BEFORE TAX PROFIT AFTER TAX NET WORTH Rs. 255990 MILLION ( £ 3200MILLION) Rs. 10177.80 MILLION ( £ 127 MILLION) Rs. 7721.80 MILLION ( £ 96 MILLION) Rs. 56453.70 MILLION ( £ 705 MILLION)

* AS ON 31 ST 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 DIRECTORS FROM STATE FEDERATION FUNCTIONAL DIRECTORS COOPTED DIRECTORS (EXPERTS FROM FIELD) 11 10 7 2 TOTAL NUMBER OF DIRECTORS 30 DIRECTORS AMONG THEMSELVES ELECT CHAIRMAN AND VICE- CHAIRMAN OF IFFCO.

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 PROMOTIONAL ACTIVITIES.

FARMERS MEETINGS

ON-FARM DEMONSTRATIONS

CROP SEMINARS

SOIL TESTING CAMPAIGNS

FIELD DAYS

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.

ENHANCED

MEMBER EMPOWERMENT

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 TO EMPOWER THE FARMERS AND STRENGTHEN THE COOPERATIVE MOVEMENT SPECIAL ECONOMIC ZONE POWER GENERATION RURAL TELEPHONY FARM FORESTRY COMMODITY EXCHANGES

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 Rs. 150 MILLION (£ 1.8 MILLION).

WITH INVESTMENT TO ENSURE THAT FARMERS GET MARKET PRICE FOR THEIR AGRI COMMODITIES.

OF

 

CONTINUED….

INDIAN POTASH LTD.

IFFCO HOLDS 34% SHAREHOLDING WITH INVESTMENT OF RS. 27 MILLION (£ 0.4 MILLION).

ENGAGED IN FERTILISERS MARKETING OF POTASH AND IMPORTED

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.

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) EQUITY SHAREHOLDING OF 27 PERCENT.

WITH 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 VARIOUS IMPORT, INTERMEDIATES.

EXPORT & FERTILISER, LOGISTIC FERTILISER RAW SUPPORT FOR MATERIALS &

CONTINUED….

AMERICAS PETROGAS INC., CANADA

ACQUIRED INC. (API), ABOUT 15% STAKE IN CANADA, ALONGWITH AMERICAS PETROGAS 20% STAKE SUBSIDIARY GROWMAX AGRI CORP., PERU.

IN ITS

API IS HAVING OIL & GAS FIELDS IN ARGENTINA AND POTASH PROJECT IN PERU LEGEND INTERNATIONAL HOLDING INC., AUSTRALIA

IFFCO ENTERED INTO A FOR EQUITY PARTICIPATION SHAREHOLDERS AGREEMENT 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 MEDICAL FACILITIES, LITERACY ENHANCEMENT PROGRAMS.

CARE, 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

CANADA PERU SENEGAL JORDAN DUBAI OMAN 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 PULSES OF CEREALS PROCESSING VEGETABLES OF FRUITS AQUALCULTURE MEAT AND POULTRY & AND DAIRY PROCESSING MEDICINAL AND AROMATIC PLANTS FEED MANUFACTURING NUTRACEUTICALS ADDITIVES SPICES AND FOOD

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