Case Study: Iffoc's Road to Success

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  • Topic: Cooperative, Orissa, Fertilizer
  • Pages : 14 (4301 words )
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  • Published : December 14, 2012
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CASE STUDY ON
IFFCO’S ROAD TO SUCCESS

(SCENARIO OF OSWAL CASE)

SUBMITTED BY:
VIGYA ROY

APEEJAY INSTITUTE OF TECHNOLOGY AND MANAGEMENT

CASE STUDY

INTRODUCTION:

IFFCO was founded under the visionary leadership of Mr. Paul Pothen, with a very noble object of economic betterment of farmers through mutual aid and cooperation. No doubt the object was very noble but the task was gigantic. It was therefore necessary to have the cultural values and mission of the organization ingrained in the human resource inducted at the initial stage. A care was therefore taken to induct such people who were not only good in their respective field of specialization but also had a flair for rural development and economic betterment through mutual aid and cooperation. Having laid the foundation, thus, it was also imperative that a highly dedicated and motivated team be created and given an environment in which they could unleash their creativity and do their best to achieve the organizational goal. This was achieved through trust and empowerment. Cooperatives are supposed to be functioning on the principle of democracy, mutual aid, cooperation and democratic functioning although these are very good words to hear but they have certain inherent weaknesses. It is often said that cooperative property is everyone’s property and therefore lack of ownership, conflict of interest and lack of focus are a few very major challenges facing such organizations. In order to ward off the possibility of such repercussions, it was decided at the very outset that while the ultimate control and policy making will be vested with the General Body of Co-operators but the management and executive leadership of the organization would be left to professional managers to implement the policy.

IFFCO had the advantage of being a late comer in the field of fertilizer production. Normally it is the early birds who are in an advantageous position but contrary to the normal trend we had the advantage of learning from the mistakes of large fertilizer giants like Fertilizer Corporation of India., who did tremendous pioneering work in the field of fertilizer manufacturing but were saddled with certain inherent weaknesses like huge manpower and not a very efficient technology. IFFCO went for the best technology and optimum manpower. Of course some extra burden had to be taken initially owing to various socio-economic reasons, such as providing employment to land losers. This extra burden was however was taken care of in due course of time with the expansion of all the plants of IFFCO with least addition to manpower.

ORIGINS AND EVOLUTION OF IFFCO

IFFCO is a multi-state Co-operative Society set up in 1967 with the help of Govt. of India, National Cooperative Development Corporation and about 57 Co-operative Societies as shareholders. It made a humble beginning with a very modest capital of 5.49 lakhs. The objective was that the needs of farmers, such as fertilizers, should be met through co-operatives. The first plant was set up in Kalol in Gujarat, and after that the second plant was set up in Kandla, again in Gujarat, followed by Phulpur and Aonla in Uttar Pradesh.

IFFCO commissioned an ammonia - urea complex at Kalol and the NPK/DAP plant at Kandla both in the state of Gujarat in 1975. Ammonia - urea complex was set up at Phulpur in the state of Uttar Pradesh in 1981. The ammonia - urea unit at Aonla was commissioned in 1988.

In 1993, IFFCO had drawn up a major expansion programme of all the four plants under overall aegis of IFFCO VISION 2000. The expansion projects at Aonla, Kalol, Phulpur and Kandla were completed on schedule. All the projects conceived as part of VISION 2000 had been realized without time or cost overruns. All the production units of IFFCO have established a reputation for...
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