CHAPTER-I INTRODUCTION INTRODUCTION Agriculture accounts for nearly 1/4th of Indias GDP and more importantly, about 2 /3rd

of the countrys population is depending on agriculture and allied activities for their livelihood. The importance in the overall economic structure of a cou ntry like India is well understood. On the strength of agriculture depends the a bility of the nation to feed its large and growing population, as well as to pro vide raw materials for the growth of Indias industry. Suffice to say that any end eavor aimed at economic development should start with agricultural development. Successive five year plans have stressed on self-sufficiency and self-reliance i n food grains production and concerned efforts in this direction have resulted i n substantial increase in agriculture production and productivity. This is clear from the fact that from a very modest level of 52 million tones in 1951-52, foo d grain production rose to above 206 million tones in1999-2000. Behind Indias suc cess story of not only meeting total requirement of food grains but also having their exportable surplus. The significant role played by chemical fertilizers is well recognized and established beyond and doubt. Chemical fertilizers have played a vital role in the success of Indias green revo lution and consequent self-reliance in food grain product production. The increa se in fertilizer consumption has contributed significantly to sustainable produc tion of food grains in the country. The Government of India has been consistentl y pursuing policies conductive to increased availability sand consumption of fer tilizers in the country. The production of Nitrogen (N) and Phosphorus (P) ferti lizer together has increased from mere 0.3 MT in 1950-51 to about 147 lakh MT in nutrients terms in 2001-02. Since there is no commercial viable source of Potas h (K) in the country its entire requirement is met through imports. The overall consumption of fertilizers in nutrient terms (N, P & K) currently is about 175 l akh MT per annum.

CHAPTER-2 REVIEW OF LITERATURE INDUSTRY PROFILE In India fertilizer industry is one with immense scope in future. The majority of the populace of India lives in rural areas and the foremost occupation in th e village is agriculture. Developments pertaining to different industries are be ing made on a massive scale to change the countrys economy from agrarian one to a n industrial one. Its extremely imported for the fertilizer industry in India to develop in terms of technological advancement in manufacturing process and innov ative new age products. In present scenario, there are more than 57 large and 64 medium and small scale fertilizers production units under Indian Fertilizers Industry. The first ferti lizer manufacturing unit in India was set up in the year 1906 at Ranipat in Chen nai. The main products manufactured in fertilizers industry are Phosphate based fertilizers, nitrogenous fertilizers and complex fertilizers.

OVER VIEW Fertilizer sector is very crucial economy because it provides a very important input to agriculture. The fertilizer industry in India has played a vital role i n achieving self sufficiency in food grains as well as in rapid and sustained ag ricultural growth. GROWTH OF FERTILIZER INDUSTRY IN INDIA India is the 3rd largest producer and consumer of fertilizers in world after Chi na and US. It accounts for about 15%of world fertilizer consumption. The growth of the India Fertilizer Industry has been largely determined by the policies pur sued by the government. Fertilizers is generally defined as Any materials organic or inorganic natural o r synthetic, which supplies one or more of the chemical elements required, used or intended to be used as a fertilizer of soil and crop and includes a mixture o f elements. The industry had a very humble e beginning in 1906 when the first manufacturin g unit of Single Super Sulphate9SSP0was set up in Ranipat, Chennai with an annua l capacity of 6000MT. The FACT Ltd at Cochin in Kerala and Fertilizers Corpor ation of India(FCI) in Sindri in Bihar were the first large sized fertilizer pla nts set up in late forties and fifties with a view to establish an industrial ba se to achieve self sufficiency in food grains. Indian government has derived [policies conducive to the manufacture and consump tion of fertilizers. Numerous committees have been formed by India t government to formulate and determinate fertilizer policies. The dramatic development of th e fertilizer industry and the rise in its production capacity has largely been a ttributed to the favorable policies. This has been resulted in large scale inves tments in all these sectors.

CHAPTER-III COMPANY PROFILE COMPANY PROFILE The Fertilizers and Chemical Travancore Ltd (FACT), one of the first fertilizer plants in India was incorporated in the year 1943 at Udyogamandal, Kochi, Kerala became a public sector company in 1960 and the Government of India became the m ajor share holder in 1962. FACT is a Multi product, Multi divisional, company fo cused in manufacturing and marketing of fertilizers, chemicals and carpolactam. FACT, the biggest central PSU in Kerala which has been in the red for many years , is poised for a turn around and currently is on the path of revival. An indica tion of this resurgence is the performance of the company for the year 2008-09, where it could achieved a record sale Turnover of Rs43 crores, after a decade of

continuous losses. During the year 2008-09, company could also establish its fi rst joint initiate- FACT RCF Building Products Ltd (FRBL) for converting the was te system to value added products. With the commissioning of the LNG Terminal at Kochi by 2012-13 the profitability of the company is expected to make a quantum jump as FACT will be able to switc h over from high cost of Naphtha to cheaper LNG from them on. All these developm ents are the positive signals of a bright future for FACT in the year ahead. FACT, a Government of India enterprise, has business interest in man ufacturing and marketing of fertilizers, captolactam, engineering consultancy an d fabrication of equipments. Units of FACT include the two manufacturing divisions; Udyogamanda l Complex(UC) and Cochin Division (CD), the consultancy unit FACT Engineering an d Design Organization (FEDO), the fabrication division FACT Engineering Works(FE W) and the Marketing Division. The company has also interest in Petrochemicals, Hydrometallurgy, and Pharm aceuticals. HISTORY OF FACT Agriculture has always been the mainstay of our people and we have been tillin g the land and repairing the harvests for hundreds of years. This naturally foun d us in a situation where the land was becoming less and less bountiful. The yie ld was getting lower and lower and in the early half of this century we found we had to depend on imports to meet our minimum food grain requirements. The simpl e truth that land had been losing its fertility through long years of repeated c ultivation dawned on us much too late. What we were putting back in the form of organic manure was hardly adequate to replenish the soil or to correct the imbal ance in the fertility status of the land under cultivation. Advanced countries e lsewhere had discovered the answer to this problem in chemical fertilizer and so me of the large scale farming entrepreneurs like foreign owned plantation in Ind ia also were importing chemical fertilizers for their own use. The second world war which cut off traditional sources of import of food grains aggravated our problem and the famine condition that prevailed in some part of the country made us set up and think chemical fertilizer was the answer, but we did not know have the technical know-how, raw materials, or the resources for se tting up the fertilizer plants. It was then a daring and foresighted administrat or of Travancore Dr. C.P. RAMASWAMY IYER had overcome the obstacles and paved th e way for setting up a chemical fertilizer factory, in a till then and adopting technology and raw materials that could be mustered up. The immediate objective was to grow more food using the wonder replenished, chemical fertilizers. This w as how FACT came to be founded in what is now known as Udyogamandal, on the bank s of river Periyar in 1944. It was then the first large scale fertilizer factory in the entire country. FACT has since the grown, expanded and branched out in a fantastic manner so tha t today it is not merely one of the biggest fertilizer enterprises in the countr y, but also legend of modern times and a triumph of the public sector. FACTs annu al sales turnover is around Rs 2147 crores during 2008-09. FACT today has three manufacturing divisions, two at Udyogamandal, its birth pla ce, which has by now become an industrial complex of several chemical industries , and the other at Ambalamedu close to Cochin Refineries Ltd. The overall produc tion capacity of the company now is the range of Rs 3.24lakh tones of Nitrogen, 1.27 lakhs of phosphate and 50,000 tones of captolactam. FACT has the widest ran ge of fertilizers which is made available to the farmers spread over a wide area covering the entire south. Straight fertilizers like Ammonium Sulphate Urea, MO P, and also complex fertilizers like Factomfos 20:20:0:13, FACT DAP and a host o f NPK mixtures to suit all crops and all soils. FACT also manufactures various g rades of Bio-fertilizers. FACT has also successfully branched out into the fields of chemical and fertiliz er technology, Engineering and Design capabilities, Research and Development and fabrication/ engineering services. FACT Engineering and Design Org (FEDO) and F ACT Engineering works (FEW) are well known names today not only in India but als o outside the country.

VISION OF THE COMPANY With in a decade FACT will emerge as a leader in the business if agricultural in puts industrial intermediaries and engineering consultancy and construction of i ndustrial and infrastructure facilities. MISSION OF THE COMPANY FACTs mission is to be a globally competitive producer and supplies of agricultur al inputs and extend world class engineering and technology services with maximu m share holders value. OBJECTIVE OF FACT 1) To maintain optimum levels of efficiency and productivity in all activit ies 2) To generate a reasonable rate of return on investment 3) To continuously improve the plant and operational safety to achieve stat utory pollution control standards 4) To carry out R&D activities for recovery of useful material and products from waste and products and improve the efficiency of fertilizers and chemicals 5) Cost reduction and technology up graduation in order to complete with th e rivals and to stay in the business 6) To invest in new business lines, where profit can be made on a sustainab le basis over the long term 7) To care the community around. STRATEGY The core business areas of FACT are the Production and Marketing of Fertilizers and Petrochemicals. In order to survive in the highly competitive environment an d the resilient to effects a market factor like. Volatility in raw material pric es, fluctuating market for caprolactam FACT has set forth a road map aimed at im proving the efficiency and productivity of its existing plants and for growth an d diversification schemes principally in the core sector relating to the product ion of fertilizers and petro chemicals. FACT also plans to foray into related se ctors like infrastructure development through joint venture projects in its land which will bring in additional revenue to the company and overall development t o the area. Improving the efficiency and productivity of existing plants. Growth and diversification in the core sector. Reorganizing marketing network with special focus to new products, trading, orga nic fertilizers, bio fertilizers etc. Revitalizing the Engineering and Design division of FACT (FEDO and FEW) by partn ering with profitable PSUs for ensuring multi fold growth. Effective and productive use of all other assets of the company such as Gypsum l and and HR for growth and diversification. Achieve 100% increase in turn over and a quantum jump in profits over the next f ive years.

MILE STONES 22-09-1943, Incorporation. 26-06-1947, Production started.

1959-60, 1st stage Expansion completed. 15-08-60, FACT came under public sector. 21-11-1962, Government of India became major share holder. 1962 Udyogamandal Division 2nd stage expansion completed. 24-07-1965, FEDO started. 13-04-1966, FEW started. 13-04-1966, CD phase1 license issued. 15-10-1966, UD 3rd stage expansion completed. 01-10-1971, UD 4th stage ammonia plant. 01-10-1973, UD 4th stage 150TDP ammonium phosphate. 27-04-1973, CD- 1st urea plant commissioned. 10-11-1976, CD 2nd sulphuric acid plant commissioned. 10-12-1976, Phosphoric acid plant commissioned. 10-01-1977, CD-11 NPK Trial run started. 01-04-1979, CD-11 NPK commercial production started. 18-05-1984, PD- caprolactum Technical Collaboration Agreement. 14-09-1984, PD- zero dates of ASCL project. 06-08-1985, PD- caprolactum license issued. 26-07-1989, CD P205- fertilizer Association of India Award, MOU Excellence Award . 13-12-1989, FEW shifted to Palluruthy. 20-12-1990, CD-12 MW Captive power plant. 01-03-1991, PD- caprolactum commercial production started. 01-03-1991, UD- New ammonium sulphate production started. 25-09-1993, Foundation Stone-900 TDP ammonia plant. 22-03-1198, 900 TDP Ammonia plant commercial productions started. 2000-01, MOU Award. 2004, Bio-fertilizer production started. 2009, Plans to start joint venture with Coir Board for the production of Bio-fer tilizers. FUTURE PLANS 1. Increasing the sales by reducing the cost 2. Reduce cost of production 3. Increasing the quality of export by maintaining good quality 4. Reducing the promotional cost 5. Expansion of business from South India to North India 6. FACT, Egypt and Syria projects

DIVISONS OF FACT UDYOGAMANDAL DIVISION FACT commenced operation at Udyogamandal with the commissioning of a 50000 to nes per annum Ammonium Sulphate plant in1947. In the decades that followed multi stage expansion programs were under taken bringing in the latest technologies o f the day which were quickly mastered and successfully implemented. Today the di vision is 40 year old small capacity plants and 10 year old state of the art tec hnology plants. The latest addition to this unit was 900 tones per day Ammonia c omplex set up with an investment of Rs 618crores. FACT Udyogamandal Division is certified to ISO 1400, the environmental system standards.

COCHIN DIVISION FACT Cochin Division was set up in the 1970s at Ambalamedu, 30km from Udyogaman dal and adjacent to the Cochin Refineries. Phase-1 of the division saw setting u p of an integrated Ammonia Urea complex utilizing Indian Engineering Skills. A l arge scale complex fertilizer plant of 485000 TPA was set up as Phase-ll, sulphu ric acid and phosphoric acid plant of economy scale were also set up. PETROCHEMICAL DIVISION FACT diversified into petrochemicals in 1990 with the production of Caprolactum. The versatile petrochemical product is the raw material for the manufacture of Nylon-6, which finds extensive application in textiles, tyre cord and engineerin g products. Thanks to high quality, the product has been acknowledged as among t he best in the world. The division is located adjacent to the Udyogamandal divis ion. Co product Ammonium Sulphate is transferred to the fertilizer plant of Udyo gamandal division for processing. FACT Petrochemical Division is one of the only two manufactures of caprolactum in India. Customer satisfaction through excelle nce in quantity of products and services comes first for them and hence they hav e strictly adhered to documented quality systems. In February 1996, FACT Petroch emical Division was certified to ISO 9002(1994) and ISO 14001(1996). This presti gious certification was conferred by RWTUV, the reputed German Quality Audit fir m. FACT ENGINEERING & DESIGN ORGANIZATION [FEDO] FACT Engineering & Design Organization (FEDO) was established in 1965 for utiliz ing the considerable indigenous plant building expertise accumulated by FACT in its process of nurturing the nascent chemical fertilizer industry. FEDO is today one of Indias premier project engineering organization, catering to a wide spect rum of industries like petrochemicals, refining, pharmaceuticals, hydrometallurg y etc. as well as petroleum storage ,environmental engineering, offsite faciliti es etc. The division undertakes project execution on consultancy and turnkey bas is, handling the intricacies of the technology sourcing, design and engineering, hardware procurement and construction with practiced ease. FEDO is ISO 9001 ce rtified. In the past forty three years, FEDO has serviced an impressive array of clients in diverse fields of operation FEDO takes up project both on a consulta ncy basis as well as on a turnkey basis, relieving the client of the tedious int ricacies of project management, technology sourcing, hardware procurement and co nstruction. FACT ENGINEERING WORKS [FEW] Established in 1966, FACT Engineering Works was originally conceived as a unit t o fabricate and erect equipment for fertilizer plants. Over the years, it develo ped capabilities in the manufacture of class1 pressure vessels, Heat exchangers, columns, towers etc. required for the fertilizer, petrochemical and petroleum i ndustries. FEW received ISO 9002 certification in1998. FEW have been providing r eliable engineering and fabrication services for over three decades to FACT. For its entire range of services, be it design and fabrication of pressure vessels, heat exchangers and storage tanks or large projects like fabrication and erecti on of plan and equipment or cross country pipelines, FEW has installed quality s ystem conforming to ISO 9001. FEW being a division of a chemical conglomerate op erating fertilizer and petrochemical plants have deep roots in the process indus try. FEW also have the experience as well as the capability to provide adequate resources to help tackle challenging fabrication problems.

BOARD of DIRECTORS Sri. Asokan A. Chairman& Managing Director. Sri. Asokan A. Director (Marketing). Sri. K. Madhavan Pillai Director (Finance). Sri. Sankaranarayanan V.G Director (technical). Sri. Mathew Kunnumkal IAS Official Part time Director. Sri. Sudhir Bhargava Official Part time Director.

Ms. Pratibha Karan Non-official Part time Director. Sri. T.M Jayachandran Non-official Part time Director. Sri. Khan Masood Ahmad Non-official Part time Director. Dr. R.K. Mishra Non-Official Part time Director. Dr. B.S. Ghuman Non-official Part time Director. Dr. Bodeih Non- official Part time Director. Sri. S. Balan Non- official Part time Director. Sri. K.C. Naredi Chief Vigilance Officer.

BRIEF PICTURE OF FACT NAME FERTILIZER AND CHEMICAL TRAVANCORE LTD (FACT) SLOGAN PIONEERS IN PROGRESS ESTABLISHED IN THE YEAR 1944 LOCATION UDYOGAMANDAL, COCHIN, KERALA PROMOTERS GOVERNMENT OF INDIA PRODUCTION UNITS OF FERTILIZERS UDYOGAMANDAL AND AMBALAMEDU CAPROLATUM UDYOGAMANDAL FABRICATION DIVISION PALLURUTHY,KOCHI CONSULTANCY DIVISION FEDO UDYOGAMANDAL MARKETING DIVISION HEAD OFFICE UDYOGAMANDAL AREA OFFICES TRIVANDRUM, CHENNAI, BANGALORE AND HYDRABAD LIAISON OFFICES TRIVANDRUM, CHENNAI, MUMBAI, NEW DELHI MARKETTING TERRITORY SOUTH INDIA, KERALA, TAMILNADU, KARNADAKA, ANDRAPRADESH MARKETING DIVISION HEAD OFFICE UDYOGAMANDAL

CHAPTER-IV PRODUCT PROFILE FACT PRODUCTS The major FACT products marketed includes: Straight Fertilizers (Ammonium Sulphate). Complex Fertilizers (Factomfos20:20:0:13). Imported Fertilizers(Urea, Potash) Bio Fertilizers (Azospirillum, Phosphobacter, Rhizobium). FACT Organic. Zincates FACTOMFOS (3% Zinc in FACTOMFOS) Zincates Gypsum (2% Zinc with 10% sulphur and 22% calcium). Chemicals (Anhydrous Ammonia, Sulphuric acid, Caprolactam, Phosphoric acid and S oda Ash).

CHAPTER-V RESEARCH METHODOLOGY OBJECTIVES OF THE STUDY The following are the objectives of the study: 1) To understand the various departmental functions that ensures smooth run ning of the company. 2) To interact with managers at different levels and find out their duties and responsibilities. 3) To find out various departmental processes carried out in FACT and to kn ow about functional as well as managerial aspects of FACT. 4) To study the structure of the company. SCOPE 1) 2) 3) 4) The study will provide an insight into the working of an organization. Based on the collected data swot analysis is possible. Suggestions could be made on the basis of inferences Advantagable ideas can be implemented in solving any problem.

RESEARCH METHODOLOGY Methodology implies the science of the method of study Source of Data 1) Primary Data Actual work in the organization Interview with departmental heads 2) Secondary Data Manuals Past Records Website FACT News and Annual reports

LIMITATIONS OF THE STUDY 1) It was not possible to get an in depth knowledge of the functioning of e ach department within the organization because of the tight schedule of the mana gers. 2) Lack of previous experience from my part was another major cause 3) Time constrain was another major factor which hindered the descriptive s tudy of the organization. 4) There was a difficulty in procuring most of the essential data as a part of managers inability to reveal it.

CHAPTER-VI ORGANIZATIONAL CHART

CHAPTER-VII DEPARTMENT PROFILE DEPARTMENT PROFILE The following are the various departments through which the objectives of the or ganizations are achieved. Human Resource Department Training Department Finance department Safety Department Production Department Research and Development Department Quality Control Department Marketing Department HR DEPARTMENT

HUMEN RESOURCE DEPARTMENT GENERAL INFORMATION Human resource management is one of the most complex and challenging fields of endeavor. It is considered to be the most expensive and important resource of ev ery organization. In FACT the scope of Human Resource Department is very vast. OBJECTIVE OF HR DEPARTMENT 1) To maintain the optimum man power required to sustain the growth of orga nization. 2) To motivate & manage human resource and train them to ensure their personal and organizational development. FUNCTIONS OF HR DEPARTMENT 1) Organizational human resource planning &development 2) Recruitment & selection 3) Employee records maintaining 4) Performance appraisal 5) Welfare program 6) Job evaluation 7) Handling employee grievances 8) Handling the legal issues within & outside the organization PROCESS The human Resource departments of FACT consist of 3 sections 1) Establishment 2) Industrial relation 3) Welfare Establishment section The main functions are; 1) Recruitment & selection 2) Transfer, rotation and placement of employees in consultation with divis ional heads

3) Wages and salary administration 4) Performance appraisal 5) Retrenchment INDUSTRIAL RELATION Industrial relation describes the relationship between management and individual employees and in that right it is sometimes called employee relations or person al relation. It embraces the relationship between management and trade union. In fact, interim industrial relations are used to all types of relationships betwe en all parties concerned with industrial enterprise. Industrial relation operat es only within the organization. The inter organizational relation is handled by the corporate cadre. 60% to 70% of management time is lost in resolving IR issu es. Therefore the HR department is of paramount importance. The main functions of Industrial Relations ar e: Communication between management and trade unions. Grievance handling. Settlement of dispute. Handling disciplinary actions. Safe guarding employee rights. Career related issues like promotion, transfer and rotation. Resolving daily petty issues. Healthy Industrial Relation helps the organization in the following ways: Leads to mental revolution. Conductive environment for new program me. High employee morale. Reduce industrial disputes. Reduce wastages. ROLE OF TRADE UNIONS Harmonious industrial relations, based on freedom of association are essential fo r the smooth working of the process of productions. Associations of employees or employers whose principal objects are the regulation of the relations between em ployees and employers or the imposing of the restrictive trade conditions. Trade unions provide necessary legal protection to union workers from civil cour t procedure for trade union activities. Trade union is the guild of the workers to speak in one voice with the management is more since their leaders are being recognized and respected. Various trade unions existing in the company are:UDYOGAMANDAL DIVISION 1) FACT Employees Association. 2) FACT Workers Union. 3) FACT Employees Congress. 4) FACT Employees Organization. COCHIN DIVISION 1) FACT Employees Union 2) FACT Employees Association 3) FACT Employees Sangh. 4) FACT Workers Congress. PETROCHEMICAL DIVISION 1) FACT Employees Association 2) FACT Workers Organization. FEDO 1) FEDO Employees Association. 2) FACT Employee Congress. FEW 1) FACT Employees Association. 2) FACT Employees Congress. Out of the ten recognized unions there are affiliated and others are independent FACT Employees Congress INTUC

FACT Workers Congress _ INTUC FACT Workers Association _ AITUC The recognized trade unions are provided with concern facilities by the company. The unions in Udyogamandal area are provided with office accommodation at subsi dized rates. FACT employees union of the company has no office accommodation. Re imbursement of rent is also given to the trade union of FEW. LONG TERM WAGE SETTLEMENT The company has a tradition of arriving at negotiated settlements in an atmosphe re of harmony for revision of wages and other benefits for the workman. The firs t long term settlement on wage revision was signed in 1959 and came into effect from 1/1/1959. Since then negotiated settlement on wage revision has been the pr actice. The last such long term settlement was signed on 20/08/05 followed by th e divisional settlements in December 2005, May 06. WORKERS PARTICIPATION IN MANAGEMENT FACT, as in many other areas is one of the pioneer industrial undertakings which initiated action to promote workers participation in management even as early o n 1959 when FACT has only one division, the idea of having the active associatio n of employees in various aspects of productive operations in true participative spirit, creation of a climate of involvement and commitment in order to motive the work force. So that the work force would contribute its best to the sustaine d growth and prosperity of the organization was in the mind of management. It wa s with this idea a Joint council, shop council and Joint labour management actio n group were formed. WELFARE Labour welfare in India has a special significance as the constitution provides for the promotion of welfare of the labour of human condition of works and secur ing to all work leisure and cultural opportunities. Labour welfare is a measure to promote the efficiency of labour. The various welfare measures provided by th e employer will have immediate impact on the health, physical and mental efficie ncy of workman. WELFARE MEASURES IN FACT Canteen providing food at subsidized rates. Medical treatment and Dispensary. Employee Welfare Fund. Transport facilities. Consumer Co-operative Societies. Education allowance to the children of employees. Personal Accidents Insurance Scheme. FACT Lalitha Kala Kendra. Scholarship for employees children. Sports and Recreation facilities. INDUSTRIAL ENGINEERING The main objective of this section is to make effective utilization of the manp ower resources and restructure it for the benefit of the organization. The main functions are; 1) Manpower planning that compose of manpower audit & forecast future requi rements 2) Custodian of manpower inventory 3) Work study Removing system bottlenecks Production incentive etc 4) Maintenance scheduling 5) Work environment study 6) Employee problem analysis ADMINISTRATION WING The wing is headed by DGM and maintains orderliness in internal affairs of th e department. The main functions are; 1) Checking the performance of each department 2) Consolidating the reports of different HR sections

3) Act as a linking chain between different sections 4) Office and admin work of HR department LEGAL SECTION The department looks after the legal affairs of the organization. It is entruste d with the duty of handling cases within and outside the organization in which t he company is involved. SOME KEY INFORMATION RECRUITMENT POLICY The recruitment policy is done as per prescribed recruitment specification with proper authority appointed by BOD. The following are the sources of recruitment 1) Confirmed employees within the division or company 2) Employment exchange as per provisions of employment Exchange Act 3) Employees on deputation from Government Of India 4) Casual labours who were initially taken after employment exchange 5) Transfer from public sector under takings 6) Apprentices who completed training in FACT 7) Dependents of deceased employees who died in service 8) External source

PERFORMANCE APPRAISAL Performance Appraisal in FACT started in 1962. In 1984, the system was furthe r revised to include potential assessment, assessment of training needs and perf ormance counseling. THE MAIN FUNCTIONS ARE; 1) Self appraisal for all management employees 2) Reporting & receiving officers specified for each level of appraisal 3) Assessment by the assessment committee 4) Grading on the basis of assessment 5) Communication of final rating to employees formally 6) Provision for appeal by employees formally

TRAINING DEPARTMENT

TRAINING DEPARTMENT The Training and Development activity of the company has been controlled with ef fect from April 2004. With this agreement of Management Development Centre (MDC) the training centre of Cochin Division, Udyogamandal Division and Petro- chemic al Division have been combined into one department called FACT Training Centre. Centralization was effected with a view of; 1) Utilizing all resources better and more productivity. 2) Identifying training needs of all employees based on a uniform approach and imparting required training.

Training centre of FACT has started job-oriented courses in Fire &Safety Enginee ring. New courses in Heavy Equipment Operation & Maintenance, welding technology and process plant operation are being organized. These courses are planned to b e offered in association with governmental agencies and statutory bodies. The ob jective is to convert the training center in to a Skill Development Academy wi th a view to provide facilities for skills development and making educated youth employable. AIMS and OBJECTIVES OF TRAINING 1) To identify training needs of the employees as a whole on the basis of u niform criteria. 2) To impart required training which equip the employees consist of officer s and workers of the company with knowledge and skill required for improved perf ormance in their respective areas. 3) To meet training needs with specific reference to ISO 9001:2000 and ISO 14001:2004 standard requirements. 4) To maintain a good data base of training details.

TRAINING AND DEVELOPMENT ACTIVITIES In addition to the in house programme conducted with internal as well as externa l facilities employees are nominated to attend specific program me outside the s tate as well as within the state. Such programs are chosen on the basis of their usefulness and relevance of the company to the employees. MANAGEMENT TRAINEES Company has a scheme of selecting management trainees on All India Selection Tes t and Interviews. Once selected, orientation training and other training program s are facilitated by the training Centre. Periodical review of the progress of t he management trainees is assessed by the training Centre and status reported to management from time to time WORKERS PARTICIPATION IN MANAGEMANT FACT is one of the pioneer industrial undertakings, which initiated action to pr omote worker participation in management. Even as early as1959, when FACT had on ly one division, the idea of having the active association of employees in vario us aspects of productive operations in true participative spirit, create a clima te of involvement and commitment in order to motivate the work force to enable t he work force to contribute their best to the sustained growth and prosperity of the organization was in the mind of management. It was with this idea that a jo int council, shop council and Joint Labour Management Action Group were formed. MANPOWER OF FACT As a part of cost reduction measures, from 1998 onwards FACT reduced its employe e strength FACT had more than 9000 employees earlier, but it is now reduced to l ess than 4000 employees by the successful implementation of VRS. FACT has severa l divisions, which all together consist of 3817 employees now.

FINANCE DEPARTMENT This department keeps the books of accounts and monitors the cost and profitabil ity of the division and ensures the sales cash-flow. The Finance Department also keeps the credit under control and examines the financial property on all trans actions. OBJECTIVES OF FINANCE DEPARTMENT To manage and account for the financial resources of the organization to forecas t its requirements in future and plan accordingly and check for deviation. To report the financial performance of the company to the management, stake hold ers and to comply with the Government rules and regulations. The Finance Department of FACT is divided into five sections.

 Bills and Materials. Sales Accounting. Costing, MIS, Budget. Cash, Bank, Pay-Roll. Tax and Duties. BILLS AND MATERIALS SECTION This section is further divided into: Bills Section. Stores Accounting Section. SALES ACCOUNTING SECTION The function of this section includes: Accountability for selling and distribution of products and by products. Recording Transactions. Transfer of information from the Depots to Head office. COSTING, MIS, AND BUDGET SECTION Cost Accounting The cost-centers of Udyogamandal Division comprises of process water, de-mineral ized water, steam, caprolactam plant products, ammonium, sulphuric acid, sulphur di oxide, phosphoric acid, pollution control, ammonium sulphate and ammonium ph osphate. Classifications of costs are mainly of two types: 1. Fixed cost which includes that of conversion cost of product of salaries , wages, insurance, plant maintenance, staff welfare expenses, overheads etc. 2. Variable cost which include that of raw materials, packing material etc. MIS It consists of the following functions: Divisional Reports. Profit and Loss account and its analysis. Production performance of the division. Inventory Position. Cost of production, actual and budget for the month. Specific information important to the management like major projects, man hour u tilization etc. BUDGETING The Budget prepared at FACT is mainly of two types: Revenue budget and Capital budget. There are two types of estimates undertakes at FACT Ltd: Budget estimate and Revised estimate. 4. PAY ROLL SECTION The main functions of Pay roll section are as under: Attendance Recording System. When an employee swipes his card on the badge-recorder, data such as badge numbe r and swiping time are displayed and a beep is sounded to confirm that data is a ccepted. ARS software is used for enouncing late or early deduction, capturing manual inp uts relating to leave/ short leave/ shift schedule and generating outputs such a s monthly attendance. Working Time For Administrative Staff, the working time is from 9.00 AM to 4.30PM with 12.30P M to 1.00PM lunch break. The working time on Saturday is from 9AM to 12PM. For Operating and Engineering staff the working time is from 8.00AM to 4.00PM, 4.00PM to 12.00AM and from 12.00AM to 8.00AM. VARIOUS TYPES OF AUDITS AT FACT Ltd 1. Statutory Audit. 2. Government Audit. 3. Internal Audit.

4. Cost Audit. 5. Income Tax Audit. 6. Sales Tax Audit. The main function of the Finance Department of the FACT includes: 1. Preparation of Final accounts. 2. Preparation of Bank Advice Statement. 3. Budget Preparation. 4. Pay roll system. 5. Calculation of Attendance bonus. 6. Auditing. 7. Preparation of Cost Sheet. 8. Preparation of monthly journals, ledgers, and trial balance. PUBLISHED ACCOUNTS OF FACT Ltd Profit and Loss accounts. Profit and Loss Appropriation accounts. Balance Sheet. Auditors Reports. Board of Directors Reports. Information required as per Stock and Exchange requirements. Some key Information about the Finance Department 1. Insurance scheme of FACT Ltd are now having a drastic change due to work ing capital shortage and lack of profit. 2. The corporate plan is prepared by taking the estimates and future projec tions for five years. 3. The Foreign Currency Management is undertaken by a committee which takes decision on periodic basis. The committee comprise of the chief of internal aud it who is the chairman of the committee and the members being the chief of finan ce C D, P.A and HO.

WORKING CAPITAL MANAGEMENT The working Capital Management of FACT is done with the aid of letter of credit and bank guarantee which are used for financing the import of raw mate rials. If more than the assigned quota is to be availed the Finance Department obtains permission of the Board of Directors. Apart from this, the banks supporting FACT Ltd are: State bank of Travancore. State Bank of India. Bank of India. State bank of Hyderabad. Bank of Baroda. Dena Bank. Canara Bank. At present, FACT has availed cash credit facility up to an amount of Rs188 cr ores and Loan on credit up to Rs100 crores and bank guaranteed up to the limit o f Rs 15 crores. CHALLENGES OF THE FINANCIAL DEPARTMENT Working Capital crunch. Low availability of Working Capital

SAFETY DEPARTMENT FACT has well established safety departments to look after the needs of re spective divisions. It is the firm opinion of the company that operation is so i mportant and to job is so urgent that one cannot find time to perform it safety. Further it aims to see that an employer remain as healthy as the entered the pl ant ,by providing safe environment and safe working conditions safe tools and pr ocedures to comes out all operations. FUNCTIONS OF SAFETY DEPARTMENT Functions safety department are not limited to reports accidents and arranging c ompensations it also involves making a detailed investigation regarding the caus e of the accident. communicate the suggestions to the concerned authority and th e necessary steps to improve the condition and to avoid further occurrence of si milar accidents Prevention at source by correction of unsafe acts, unsafe situation or both, goo d preventive maintenance programmes, ensuring material quality etc. By sticking the factory to the factorys act and regulatory and following laid dow n safety procedures. Safe production by prompt attention on built in safety or integrated safety. MATERIAL AND PURCHASE DEPARTMENT FUNCTIONS It deals with fertilizer production , Caprolactum consultancy, project mana gement of FEDO, fabrication of reactors vessels, pipe fabrication , FEW in Pallu ruthy workshop purchase and stores of raw materials, raw material movement throu gh transportation, downsizing, and integrating all department and thus by making profit. If the materials are purchased in bulky quantity it will get a price ad vantage. Main raw materials used in FACT are sulphur, phosphorous, rock phosphat e, ammonia, benzene, furnace oil, chlorine packing materials. The vendors for ra w materials are petrolactum companies and for doctrine it is TCC and for furnace oil cochin refinery, BPC, IOC company director will take last decision in vendo r selection. PURCHASE FUNCTION Decline the item and quantity required Framing the purchase requisition. Normally FACT is doing open tender procedure with pre qualification criteria. Pr esence of international vendors is also available. The product caprolactum is us ed as an input for nylon, plastics. For less value items the tendering is limite d. Vendors data collection There is vendor list which gives all information about the v endors. The vendor data collection is also done through magazines, newspapers. I n some cases vendors directly approach to FACT. FACT will check the technical, f inancial background and also the other clients of that particular vendor. If the vendor is suitable the department will make a proposal to the management to put the party in vendor list. MATERIALS STORES DEPARTMENT The main functions are collect the material from contractors and stores in go do wn, inspection, accepted it as GR and round bills it in stores, rejected items w ill be informed to the parties and get replaced, identify stores record point, d isposal of scrap and obsolete items or tendering it, keeping account of storage items, sending transport documents to bank and negotiation with the bank and pay ment of cash , direct payment for goods received. First Digit; It specify the division i.e., 1-CD, 2-UD, 3-PD, 4-FEW Second Digit; It specify the source that whether the raw material is imported o r indigenous. Third and fourth Digit; It gives which plant they belong to i.e., the user produ ct. Fifth Digit; IT SPECIFIES THE SUBSECTION OR SUBPLANT. Sixth Digit; It specifies the equipment items or the item group. Seventh7eigth Digit; IT describes the specification or the item Ninth, Tenth, E leventh Digit; It the items specification.

The operation that is carried under each division is same. Every stores activity has our section. They are; Receiving Holding Inventory control Dispatching

PRODUCTION DEPARTMENT Annual production target for the next year are prepared based on installed produ ction capacity of the plant and production data for the previous year. Necessary feedback is also taken from marketing while fixing the production targets. The production targets thus fixed are presented to the corporate office for review a nd approved by CMD. The Plant managers are informed the same. The production and consumption ratios for the previous years are duly considered. All the datas are complied to form the production budget. This production budget then acts as the basis for further performance monitoring. Based on the production plan, Purchas e Department initiates action for procuring raw materials. In the event of any c hange in the raw material, requirements are intimated to the Purchase Department . Production Planning Department receives data from all the plant and other inte rfacing department and complies them. Various MIS reports daily production repor ts; monthly reports and yearly reports are sent to the management. Various sections in this department are Ammonia Plant, Sulphuric Acid Pl ant, Phosphoric Acid Plant, and Ammonium Complex Plant. Sulphuric Acid Plant The sulphuric acid plant is designed to produce 1000 TPD of mon ohydrates. The plant is based on the double conversion double absorption process and was designed by FEDO in collaboration with Davy power gas Gmbh. Phosphoric Acid Plant The phosphoric acid plant is designed to produce 360 TPP of P205 through the deh ydrate route. The plant designed by FEDO in collaboration with M/S Socitie De Pr ayon of Belgium employs of the prayon convertible process to give a product havi ng strength of 30%. P205 a separate concentration section is provided to concent rate this weak acid to strong acid having strength of 45% P205.

RESEARCH

AND

DEVELOPMENT

RESEARCH AND DEVELOPMENT DEPARTMENT GENERAL INFORMATION FACT began research in a modest scale in 1962 with just four scientists. Ov er the years this nucleus has grown into a full fledged but compact integrated di vision with a team of about 12 personnel. The division is recognized by the Mini stry of Science and Technology for in house research and by the Ministry of Envi ronment and Forests, Government of India. R&D plays a vital role in giving the c ompany and its product the cutting edge in a competitive environment. FACT has won Indian Chemical Manufactures Association award twice for outsourci ng performance in development of technology and export of technolo0gy. OBJECTIVES To carry out in-depth research, to provide specialized services to other divisions of the organization and is involved in the production of environment f riendly bio-fertilizers QUALITY ASSURANCE OR QUALITY CONTROL CELL As per the directive from Ministry of Agriculture, Government of India, the qual ity control cell has been set up in R&D centre, for efficient monitoring of qual ity of fertilizer products at the dispatch and selling points. BIO-FERTILIZER RESEARCH AND DEVELOPMENT FACT has set up a TPA Bio-fertilizer plant at R&D premises. The plant was comm issioned during the end of 1999, to take up the production of N-fixing Bio-ferti lizers like Rhizobium, Azospirillum, and Bio-fertilizer like phosbofactor. The c arrier material employed is exfoliated vermiculite. The Bio-fertilizers plant at R&D centre is capable of producing three kinds of Bio-fertilizers namely Rhizob ium, Azospirillum, and Bacillus, Megatherium under the trade name BIO-FACT. Duri ng to the short shelf life, production of the Bio-fertilizers is based on specif ic demands of marketing division. Efforts are under way tp change over to a ne w carrier material called Lignite that conforms to the recently laid down FCO re gulations. QUALITY MAINTENANCE OF PRODUCTS AT VARIOUS DEPOTS ACROSS THE STATES Corporate Quality Survey FACT is committed to provide quality products to consumers. As a part of this st rategy, FACT R&D centre has been entrusted with checking the quality of fertiliz er samples from production division. The quality check is usually period wise; s ome times surprise visit are also conducted. Activities carried out Development and field testing of slow release fertilizers in order to increase the efficient use of plant nutrients. The slow release fertilizer project has be en selected for partial funding under PASTER scheme by DSIR, New Delhi, for Agro nomical evaluation by Tamil Nadu Agricultural University, Coimbatore and Kerala Agricultural University, Trissur. Presently a collaborative project between FACT and Tamil Nadu Agricultural University for agronomies evaluation of their slow release fertilizers on cotton and turmeric is under way. A field trial on field is going on at Coimbatore, under the supervision of FACT marketing division. BENEFITS DERIVED 1. During the year 2006-07,R&D centre has produced 3.91 MT of Bio-fertilize r and supplied to various Agro service centers and there by meeting the entire r equirement of the marketing division. 2. Functioning of quality control cell enabled to maintain good quality of

products and to reduce considerably the P205 loss due to extra nutrient content in NP 20:20

ORGANISATIONAL STRUCTURE OF QUALITY CONTROL DEPARTMENT

QUALITY CONTROL DEPARTMENT OBJECTIVES Customer satisfaction through excellence in quality of production and services. Adherence to documented quality system. Promoting quality culture among employees. Continuous improvement in Quality Management System. ACTIVITIES CARRIED OUT Reduction of air pollution from amorphous plant and phosphoric acid plants. Improving the quality of effluents on a continual basis. Minimize dust problem in sulphur handling and prevention of sulphur spillage to river. Reduction of condemnation of raw effluents with vapors condensation from Hyam pl ant. Reduction of noise level in SO2 or acid plant main air blower. Reduction of SO2 emission during start up of suphuric acid plant. Minimize and recycle waste water from phosphate plant and sulphuric acid plant. POLLUTION CONTROL MEASURES Hydro carbon-detectors are placed in vulnerable areas in the pla nt for transmission to control room. Computerized automatic ambient air monitori ng system is placed at stations, inside the plant and two in the township to mon itor ammonia, carbon monoxide, non-methane hydro carbon, sulphur dioxide and oxi des of nitrogens on a continuous basis. The company could maintain all effluent parameters with in the limits as prescribed by the statutory authority .The guid elines specialized by Kerala State Pollution Control Board are followed in the d isposal of all hazardous wastes generated. CHALLENGES OF QUALITY CONTROL Lack of expertise to handle raw materials quality checking aged machinery. Effluent discharge likely to exceed the permissible limit and high noise polluti on MARKETING DEPARTMENT FACT is maintaining a Multi-channel system in the Distribution and Marketing. In Kerala, it has a series of control depots and authorized retailers. The control

depot functions as storage cum storing point and majority of authorized retaile rs and co-operative societies. The main markets of FACT consist of South Indian states such as Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh. Because of the vast area of demand, Andhra Pradesh is considered to be the main market of FACT fertilizers. FACT also exports its other products like Caprolactam to different countries. Fertilizer sale during 2008-09 was8.33 lakh MT against 6.03 lakh MT during 2007 -08. A significant achievement during the year was the development of markets in other states of countries for Ammonium Sulphate. A total of 35000MT was exporte d to outside the normal marketing territories that are to West Bengal and to cou ntries like Bangladesh, Nepal, Sri Lanka, Oman, and Saudi Arabia. The Marketing is headed by a General Manager who reports to the Director (Market ing), FACT has two marketing department. The Marketing Department consists of various sections based on their functions t hey are: 1. Sales Department 2. Distribution Department. 3. Marketing Research and Development Department. 1. SALES DEPARTMENT The functions of the Sales Department include: Monitoring of sales in the area. Processing credit proposal for dealers and institutions. Monitoring the flow of MIS from marketing Research Department and from the field establishment. Monitoring the price in terms of FACT products. Processing and sending replies to audit queries at the division level. Sales force motivation through the internal and external training programmes. Preparation of sales reports. VARIOUS MARKETING STRATEGIES OF FACT LTD Agricultural Seminars. Sponsored Programmes. Fertilizer Demonstration. Dealers Meeting. Soil Sample. Co-operative Meet. Well planning. Exhibitions and Special Crop Campaigns. TV and Radio Advertisement. 2. DISTRIBUTION DEPARTMENT The physical distribution of the products is the main function of the Marketin g Division. Chief Distribution Manager is entrusted with the planning, monitorin g, implementation of product- distribution and coordinating the movement of prod uction units and ports. FACT Marketing Operations in respect of other fertilizer flow is a completely ce ntralized pattern of FACT distributes its fertilizers to four states of South In dia wiz Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh. 3. MARKETING RESEARCH DEPARTMENT The main functions of the Marketing Research Department include: Preparation of product wise, month wise and annual sales plan for each area. Publication of Annual Reports of the divisions. Monitoring and reporting competitors sale as per Performa prescribed. Collection, scrutiny, analysis and compilation of region- wise, area-wise sales performance of own and purchased products for providing information to managemen t and achievement against the target on a daily basis. Submission of monthly performance reports of the division to the CMD. Ensuring product availability, despatch monitoring and inventory control.

 Submission of various statements for publication in their fertilizer statistics boom. COMPETITORS OF FACT Ltd Urea: MCF, MFI, IFFCO, IPL. MOP: IPL, MCF. DAP: MCF, IFFCO, AND RCF. ACHEIVEMENTS OF FACT MARKETING DIVISION Fertilizer Festivals. Village Adoption Scheme. FACT Agricultural Study Centre (FACT Krishi Vijyan Kendra). FACT marketing network spread over South India. Operation of 4NPK mixture production centre in Kerala under FACT for the supply of tailor-made NPK combinations.

SALES TURN OVER YEAR QUANTITY VALUE(Rs Lakhs) (Lakh tones) SALES SUBSIDY TOTAL 1988-89 11.58 27,614 15,126 42,740 1989-90 8.99 20,902 14,128 35,030 1990-91 10.75 26,705 17,360 44,065 1991-92 11.02 33,628 24,047 57,675 1992-93 10.72 44,011 12,649 56,660 1993-94 11.25 48,204 10,878 59,082 1994-95 12.02 63,411 9,990 73,401 1995-96 13.30 77,260 7,897 85,157 1996-97 11.10 68,158 9,890 78,048 1997-98 12.61 81,249 15,166 96,415 1998-99 12.09 89,690 11,586 101,276 1999-00 13.16 98,800 27,474 126,274 2000-01 14.80 111,872 31,422 143,293 2001-02 12.26 96,841 2,699 99,510 2002-03 10.45 71,643 16,616 88,259 2003-04 7.78 46,051 15,236 61,287 2004-05 7.84 53,117 19,712 72,829 2005-06 9.83 69,671 36,578 106,249 2006-07 9.47 67,196 40,216 107,412 2007-08 6.03 42,267 29,236 71,503

CORPORATE SOCIAL RESPONSIBILITY Some of the measures taken by FACT as part of Corporate Social Responsibility ar e; 1. Dealer Network The dealer network plays a very crucial role in marketing of fertilizer in the c ountry. In most cases dealers not only gives the fertilizers but also imparts su bstantial knowledge and information on the use of fertilizer and improved agricu ltural products. 2. Community Awareness Community awareness programs on safety, pollution control measure in plants, ons ite emergency plan and so forth are being carried out through the public relatio ns department. 3. Social welfare The company has implemented the reservation policy of the government of India fo r scheduled caste and scheduled tribes as well as for the other backward classes . It is presently employing 1855 SC/ ST/ OBC employees, and has been actively im plementing the special recruitment drive for the employment of SC and ST. Conseq

uent to this drive; the company has been implementing the directives of the Gove rnment of India on reservation for other back ward classes. 4. Hospitals There are two full-fledged hospitals, one each at Ugyogamandal complex and Ambal amedu respectively. These hospitals provide both inpatient and outpatient treatm ent to the company employees who are members of the contributory health scheme. The hospitals also extend their service to those who are not members. 5. Schools Schools are established both at Udyogamandal complex and at Ambalamedu. Schools provide free education to the children of company employees and on payment basis to children of neighboring public sector employees and for general public. The curriculum ranges from ICSE, Plus two and SSLC.

CHAPTER-VIII SWOT ANALYSIS

SWOT ANALYSIS SWOT analysis helps the business firm in matching its strengths & weakness with opportunities and threats operating in the environment. An effective strategy ca pitalizes on the opportunities through the use of firms strength, and neutralizes the environmental threats by minimizing the of firms weakness. STRENGTH 1) High capacity utilization 2) ISO certification for most divisions 3) Being a Government firm they get all needed help from Government at time 4) Good engineering and consultancy design perhaps one among the best in In dian fertilizer industry 5) One of the producers of caprolactums in India which is of world class qu ality 6) Well qualified and tecnically qualified staff 7) FEDO has own process know how for hydrgen, sulphuric acid, ammonium sulph ate, DAP and complex fertilizers 8) FEDO has worked in allocation with much international capacity of custom izing and designing projects to the equipments of Indian consumers 9) India being an agrarian economy has always a scope for fertilizers

WEAKNESS 1) The Government controls the finished products but the price of the raw m aterials are uncontrolled. So it is forced to operate in an uneconomic situation 2) The average ages of employees are very high. Due to freeze on recruitmen t the numbers of younger professionals are decreasing 3) Interest burden created due to the ammonia plant has significant impact on operating results

4) Market share of some products are shrinking due to increase in competiti on from other manufactures 5) Several unskilled jobs, which would be sub contracted are undertaken by the permanent employers at high cost 6) Lack of product line diversification OPPORTUNITY 1) Switching over to LNG as feed stock and fuel would reduce the cost of in puts substantially and improve the profitability of products 2) Strong marketing network in Southern India 3) Scope for expansion and diversification 4) High demand for by-product gypsum 5) Joint ventures with other organizations for profitable business 6) Strong presence in the fertilizer segment 7) Acquire technology to utilize possible input resources 8) Ammonium sulphate has greater demand in foreign countries which increase its export opportunities 9) DCM group in the Netherland is planning to make huge investments in FACT petrochemical division in order to increase production capacity of caprolactum. THREATS 1) Steep rise in the prices of Hydrocation and other raw materials like sul phur, rock, phosphate, naphtha etc 2) Scarcity of raw materials in the international market 3) Increasing competition in marketing of complex fertilizers 4) High cost of power 5) Increased financial constraints 6) Unfavorable Government Of India Policy

CHAPTER-IX FINDINGS AND SUGGESTIONS FINDINGS AND SUGGESTIONS FINDINGS Since the organizational structure enables proper scheduling of the activities a nd representation of each individual is fixed. The short falls are easily identi fied and remedial actions are taken immediately. The strong market network that FACT has built over the years has helped FACT sur vive competition. Majority of the workers were satisfied with the timings of the company. Due to planning in all departments there is less chance of redundancy activities and optimization of cost and times has been the priority. All most of the employees were highly satisfied with the companys rules and regul ations. Since for every year new implementation/ suggestion, varied approvals are requir ed from every level, that the implementation is delayed causing huge loss for th e organization. The organization in its efforts to become profitable is increasingly reducing it s strength of employees. The excess employees in the organization were reduced through VRS scheme. Some of the departments strongly feel that the reduction in ammonium plant has a

dded considerable load in existing employees and further reduction will only agg regate the situation as many areas of plant need attention. The average age of the employees in the organization is 48 years as no fresh rec ruitments do not happen in the organization from 1997. Only in the year 2009 t he company decided to hire management trainees. The organization feels that the bio-fertilizer which is the new product of the c ompany will capture the market and will be a profitable venture. The joint venture with the Coir Board for the supply of carrier materials for bi o-fertilizer production will be expected to reduce the cost of production of bio -fertilizers. The waste product Gypsum which has been fetching only a few amount of money till the recent years has suddenly became the major source of revenue for the organi zation due to the demand by the cement industry and also the new found applicati on in construction activities. SUGGESTIONS Programmes like agricultural seminar and farmers education about the new way of c ultivation are to be done efficiently. The cost of Naphtha is very high and its use for 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 available by using imported ammonia which is available at cheaper cost. The ammonia plant in the island is more convenient for production. FACTs products have already captur ed South Indian market and hence there is a need to expand operations in North I ndia. Cost of production can be reduced by using most modern methods and modify plant to become more efficient.

CHAPTER-X CONCLUSION CONCLUSION It has been a wonderful experience to do my organizational study in an esteemed organization like FACT. I am fortunate that my first organizational exposure wa s with an eminent company like FACT. I was able to visit the various departments and get an insight into the functioning of the departments. FACT ever since its inspection as the first large scale fertilizer factory in the country has been a pacesetter in transferring modern farming technology to traditional bound farm ers of the country. The company believes in attaining business superiority by me eting customers needs and providing them high quality products. FACT has always made continuous welfare projects. FACT has always made continuous improvement in its environmental performance and prevention of pollution. The company has alwa ys been in the fore front of community development by constantly undertaking mul titudinous welfare projects. FACT has established a name for itself by its years of extraordinary performance Now the company 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 t he fertilizer. Other than this there are many reasons for its decline such as re duction in government subsidy, new economic policy of liberalization, privatizat ion and globalization which has led to great challenges in the economic and indu strial growth. The change of government attitude towards the public sector has r educed the protection enjoyed in the past. But FACT still plays its role as the pioneer in the progress of nurturing the South Indian soil

1) 2) 1) 2) 3) 1) 2)

BIBLIOGRAPHY MAGAZINES: FACT Marketing Manual. FACT Personal Manual. JOURNALS: The Story of FACT Ltd T.T.THOMAS. FACT Marketing Annual Report 2009-10. FACT Annual Report 2009-10. WEBSITES: Www. factltd. Com Www. Fedo. com

ABBREVEATION CMD CHAIRMAN AND MANAGING DIRECTOR CVO CHIEF VIGILANCE OFFICER DGM DEPUTY GENERAL MANAGER D (T) DIRECTOR TECHNICAL D (F) DIRECTOR FINANCE CS COMPUTER SERVICE FA FINANCE AND ACCOUNTS DGM (LS) DGM LEGAL SERVICE DGM (CM) DGM CORPORATE MATERIALS DGM (CF) DGM CORPORATE FINANCE DGM (IA) DGM INTERNAL AUDIT IND.REL INDUSTRIAL REELATION PUB.REL PUBLIC RELATION UD UDYOGAMNDAL DIVISION PD PETROCHEMICAL DIVISION PRO PERSONNEL RELATION OFFICER MDT MANAGER IN DEVELOPMENT AND TRAINING