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Trade and Business Development of IFFCO at the International Arena

Trade and Business Development of IFFCO at the International Arena. G.N Saxena Director (Coop.Dev) INDIAN FARMERS FERTILISER COOPERATIVE LTD. NEW DELHI (INDIA). IFFCO - IN BRIEF.

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Trade and Business Development of IFFCO at the International Arena

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  1. Trade and Business Development of IFFCO at the International Arena G.N Saxena Director (Coop.Dev) INDIAN FARMERS FERTILISER COOPERATIVE LTD. NEW DELHI (INDIA)

  2. IFFCO - IN BRIEF • IFFCO is a Multi State Cooperative Society registered on 3rd Nov 1967. Commercial Production commenced in the year 1975 • Produces 10 million Tonnes of Fertilisers annually • Contribute about 20% to the total ‘N’ and 25% to the total “P2O5” produced in the country • Markets Fertilisers through 38,955 member Cooperative Societies • Sales, Service and Support to the Farmers through a variety of programmes

  3. Growth of IFFCO

  4. STRATEGY BY IFFCO FOR TRADE AND BUSINESS DEVELOPMENT • Multi-State Cooperative Law provides for encouragement to active participation of members in business • IFFCO bye-laws encouragemore equity and business • Federations to lift Fertilizers in proportionate to their shareholding • International tie-ups after Demand Analysis / Market Research • Technology Transfer : • Technical alliances with other countries • Joint-Ventures

  5. STRATEGY BY IFFCO FOR TRADE AND BUSINESS DEVELOPMENT(cont..) • Establishment ofKISAN INTERNATIONAL TRADING, FZE, Dubai • ASpecial purpose Vehicle (SPV) • To Scout for Raw Materials and same to India / Joint Venture Projects • For Shipping, Canalising, Routing and Logistics Monitoring of the Raw Materials

  6. STRATEGY BY IFFCO FOR TRADE & BUSINESS DEVELOPMENT(cont..) Marketing Development • Supply of Quality Fertilizers • Marketing through the cooperative network only • Transportation Support (Subsidy) to carry fertilizers in interior area • Utilize Infrastructure of cooperative, mainly utilization of warehouses of Cooperatives • Financial Support to Weak Member cooperatives • IFFCO supplies fertilizers to neighboring countries on demand

  7. STRATEGY BY IFFCO FOR TRADE AND BUSINESS DEVELOPMENT(cont..) • Expertise in procurement of raw materials • Rock Phosphates, • Phosphoric Acid, • Sulphur • Buy-back arrangements for Ammonia and Urea from Oman India Fertiliser Company • Effective Services of Kisan International Trading FZE (KIT)

  8. IFFCO’s Global Presence IFFCO has entered into JV- Projects and diversified into different areas Oman India Fertiliser Company (OMIFCO): • Annual capacity of 1.6 Million MT Urea and 0.25 Million MT Ammonia • The Actual project cost USD 892 million (saving of about USD 80 million on estimates)

  9. IFFCO’s Global Presence(cont..) Industries Chimiques du Senegal (ICS) • IFFCO holds about 20% of the paid-up share capital. • Under long term buy-back agreement , 0.5 Million MT phosphoric acid is lifted by IFFCO IFFCO Tokio - General Insurance Company Ltd( ITGI) • IFFCO holds 74% equity share • Balance equity subscribed by Millea Asia, Singapore; a group company of Tokio Marine & Fire Insurance Company

  10. IFFCO’s Global Presence (cont..) Indo Egyptian Fertiliser Company SAE, Egypt • To set up a Phosphoric Acid Plant of 0.5 Million MTPA capacity • IFFCO holds 76% equity. The estimated Project cost is USD 325 Million • Pre-project activities have been started. The plant is expected to start commercial production in 2009

  11. IFFCO’s Global Presence (cont..) Phosphoric acid plant at Jordan • Signed an MOU with Jordan Phosphates Mines Company (JPMC) • To set up a 1500 t/day phosphoric acid plant to be located in Southern Jordan • IFFCO and its associates to have 52 percent equity participation. • The estimated project cost is USD 350 million

  12. IFFCO’s Global Presence (cont..) IFFCO Kisan Bazar • Incorporated in the year 2004 • Objective to Setup a chain of Fair Price Super Stores across the Country. • Negotiations are in progress for strategic alliances with prospective foreign partner for setting up large Retail Outlets in India • MoU signed with NTUC Fair Price, Singapore

  13. IFFCO’s Global Presence (cont..) IFFCO Chhattisgarh Power Ltd. • Joint Venture Company with Chhattisgarh State Electricity Board (CSEB) • Set up a 1000 MW coal based mega power plant; Scheduled to be commissioned in 2010 • The total estimated project cost is USD 1 billion • Equity participation by IFFCO 74% • The Company to supply electricity to farmers at a cheaper rate • IFFCO’s investment is 9.25 million USD

  14. OTHER INITIATIVES • IFFCO KISAN SANCHAR LTD. • Cheaper cell - phone • Information with focus on the farmers • Tie-up with some companies in China / Hong Kong • Marine Organic Phosphate Fertiliser • Company from Indonesia named • Madura Guano phosphate Fertiliser • Group of companies for Oil refineries at Paradeep • Mutual Assistance Agreement with Mauritius Agriculture Cooperative Marketing Federation, Mauritius

  15. THANKS!

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