PROJECT REPORT ON

MARKET RESEARCH AND PROMOTION OF MAHADHAN KRANTI IN SHIRUR TAHSIL OF PUNE DISTRICT

AT DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION LTD, PUNE

By Mr. Dadar Dhanraj Ashok (Regn. No. 08/ 223)

Submitted to MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI, DISTRICT- AHMEDNAGAR (MS)

in partial fulfilment of the requirements for the degree of MASTER OF BUSINESS MANAGEMENT (AGRICULTURE)

COLLEGE OF AGRICULTURE, PUNE- 411 005

(2009)

MARKET RESEARCH AND PROMOTION OF MAHADHAN KRANTI IN SHIRUR TAHSIL OF PUNE DISTRICT
A Project submitted to the MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI, DISTRICT AHMEDNAGAR, (MAHARASHTRA) in partial fulfilment of the requirements for the degree of MASTER OF BUSINESS MANAGEMENT (AGRICULTURE)

By Mr. Dadar Dhanraj Ashok (Regn. No. 08/ 223) Approved by

Mr. R.K.Kolhe Project Supervisor and Deputy Manager (Agri business sale) Deepak Fertilisers & Petrochemicals Corporation Ltd.Pune.

Prof. J.P.Yadav Project Guide and Asstt. Professor of Agri.Economics College of Agriculture, Pune.

Dr. R. K. Rahane Professor, M. B. M. (Agri.), College of Agriculture, Pune

Dr. B. R. Ulmek Associate Dean, College of Agriculture, Pune

Master of Business Management (Agri.), COLLEGE OF AGRICULTURE, PUNE- 411 005 (Maharashtra) (2009)

 CERTIFICATE OF ORIGINALITY

This is to certify that the project entitled Market Research And Promotion of Mahadhan Kranti in Shirur tahsil of Pune district is an original work of the student and is being submitted in partial fulfilment for the award of degree in Master of Business Management (Agri.) of Mahatma Phule Ahmednagar. This report has not been submitted earlier either to this University or any other University/ Institution for the fulfillment of the requirement of a course of study. Krishi Vidyapeeth Rahuri- 413 722, District-

Mr. Dadar D.A. (Sign of Student)

Prof. J.P.Yadav Project Guide and Asstt. Professor of Agri. Economics, College of Agriculture, Pune- 5

Place : Pune Date : / /2009

Prof. Jyoti P. Yadav,

M.Sc. (Agri.)

Project Guide and Asstt. Professor of Agri. Economic College of Agriculture, Pune- 5

CERTIFICATE
This is to certify that the Project entitled Market Research And Promotion of Mahadhan Kranti in Shirur tahsil of Pune District ' submitted to the Mahatma Phule Krishi Vidyapeeth, Rahuri, District Ahmednagar (Maharashtra), in partial fulfilment of the requirements for the degree of MASTER OF BUSINESS MANAGEMENT

(AGRICULTURE) embodies the results of a piece of bonafide work carried out by Mr. Dadar Dhanraj Ashok(Regn. No. 08/223) under my guidance and that no part of the project work has been submitted for any other degree or diploma. The assistance and the help rendered during the training period have been duly acknowledged. The suggestions made by the Evaluation Committee are incorporated in this project draft

Place : Pune. Date : / / 2009

(J.P.Yadav)

CONTENTS
Cha. No. Title Certificate of Originality Certificate of Project Supervisor Certificate of Project Guide Acknowledgement EXECUTIVE SUMMARY 1 INTRODUCTION 1.1 1.2 1.3 1.4 1.5 2 Global scenario Indian scenario Importance of study Objective of study Scope of study 2 3 4 5 5 Page i ii iii iv

RESEARCH METHODOLOGY 2.1 Selection of sample respondents 2.2 Data collection 2.3 Analytical Data used 7 7 8

RESULTS AND DISCUSSIONS 3.1 Profile of company 3.2 Profile of Shirur Tahsil of Pune District 3.3 General Information 3.4 Farmers Perception of Mahadhan Kranti 3.5 Competition analysis of market players 3.6 Nutrient status of soil sample from sample farmers 3.7 Promotional competition 3.8 Findings 3.9 Conclusion 3.10 Suggestions REFERENCES APPENDIX 1. Questionnaire for farmer 2. Questionnaire for dealer VITA

9 14 15 17 21 24 25 28 29 30

LIST OF TABLES
Sr. No. 1 2 3 4 Table No. 3.1.1 3.3.1 3.3.2 3.3.3 Title Fertilizer products of DFPCL Distribution of sample farmers on the basis of Age Distribution of sample farmers on the basis of Education Distribution of sample farmers on the basis of Land holding 5 6 7 8 3.4.1 3.4.2 3.4.3 3.5.1 Distribution of sample farmers according to Awareness Distribution of sample farmers according to Use Distribution of sample farmers according to Acceptance Preferences given by dealer/sub-dealer regarding competition 9 10 11 3.5.2 3.6 3.7 Availability of micronutrient fertilizer in market Nutrient status of soil from sample farmers Promotional activity according to company wise 23 24 26 18 19 20 22 Page No. 13 16 16 17

LIST OF GRAPHS/CHART/FIGURES
Sr. No. 1 2 3 4 5 6 7 No. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Name of the graphs / graphs/ maps Distribution of sample farmers according to Awareness Distribution of sample farmers according to Use Distribution of sample farmers according to Acceptance Preferences given by dealer/sub-dealer regarding competition Availability of micronutrient fertilizer in market Nutrient status of soil from sample farmers Promotional activity according to company wise Page No. 18 20 21 22 23 25 27

EXECUTIVE SUMMERY
MARKET RESERCH AND PROMOTION OF MAHADHAN KRANTI
By Dadar Dhanraj Ashok

Registration no. 08/223 A Candidate for degree of

MASTER OF BUSINESS MANAGEMENT (Agri.)

College of Agriculture, Pune-411005. 2009

PROJECT SUPERVISOR : PROJECT GUIDE DEPARTMENT : : MR. R. K. KOLHE PROF. J. P. YADAV AGRICULTURAL ECONOMICS

World fertilizer market is characterized by great competition. It has become necessary to have good knowledge and understanding about changing marketing situation and different marketing strategy while launching various products in market. The project was carried out in Deepak Fertilizer and Petro Chemical Private Ltd. which is well known in farmer community as Mahadhan in as well as in agribusiness sector. Is brand of quality and believe in Indian market. It is one of the most admired & progressively growing corporate companies so on that basis the project was undertaken to help to company to assemble the information regarding of competitors in micronutrient fertilizer segments. The project helps to company to gather information regarding the activities of competitors in market regarding the micronutrient as well as other specialty product of DFPCL. Also this will helps to company to make plans, srategies and arrange marketing activity. The company entered in micronutrient fertilizer segment but at time facing various challenges regarding marketing awareness of product advertisement, production over the market. So main objective of the project is to create the awareness of the DFPCL micronutrient fertilizer among the farmers & dealer/ distributor. The research approach used was the survey, in which 40 farmer and 10

dealer / distributor were selected. Survey was conducted in Shirur tahsil of Dist.-Pune in Maharashtra state. For collection of data questionnaires were used for farmers as well as dealers / distributors with an intention to find the perception of farmer and market of DFPCL micronutrient fertilizer the study on sales promotion activities was conducted. With the prevailing strong agricultural market fundamentals and anticipated progressive recovery of the world economy, world fertilizer demand is seen to be slightly rebounding in 2009-10 to 165.4 Mt (+3.6 %) with growth rates of 2.6 per cent for N, 6.1 per cent for P and 4.1 per cent for K. Consumption, production and import of fertilizer from 1981-82 to 2006-07 shows that total consumption of N,P,K was 60.64 Lakh tones total production of only nitrogenous and phosphatic fertilizer was 40.93 Lakh tones and imports of N P K fertilizer was 10.54,3.43, 6.44 Lakh tonnes respectively.Maharashtra states consumption of fertilizer in year 200405, 2005-06, 2006-07 was 173921,196838,225897 tonnes. It was estimated that in India nearly 55 % of the increases in food grains production had come from increased application of fertilizer with adequate moisture. Thus fertilizer will continue to play a vital role in increasing agril production in the country in years to come. Objective of study was to study farmers perception about Mahadhan Kranti, analyze the competition in market, analyze the nutrient Status of soil in Shirur tahsil and also study promotional activities of Dfpcl. Findings from this study was that Majority of farmers belongs to marginal and small Size group of land holding.67.50 per cent farmers are aware about Mahadhan Kranti . 67.50 per cent farmers are using Mahadhan Kranti. More than 50 Per cent farmers are satisfied with Mahadhan Kranti. Ranade chemicals secures top position in Micronutrient sale as well as the in availability of micronutrient and is the

main competitor of DFPCL.Soil analysis indicates the deficiency of Ca, Mg, Fe and Zn.Farmers meeting, field assistance and result demonstrations are the main promotional activities. The Study concluded that market in shirur tahsil was majority of farmers are aware about Mahadhan Kranti. Ranade is main competitor in the market.Ca, Mg, Fe and Zn deficiency defines the need of micronutrient use. Result demonstration is an important promotional activity. Suggestions related to study about farmers that more efforts are needed to develop awareness in farming community regarding benefits of micronutrient

fertilizer through farmer meetings result demonstration and advertisement. Timely and

continuous supply of micronutrient fertilizer prior to the season should be maintained to increase the sale of micronutrient. Need to develop the efficient network at field level. Dealers need to be involved in sale promotion activities by launching attractive schemes dealers. Dadar D.A. Pages 1 to 30

1. INTRODUCTION
Any natural or manufactured material that contains at least 5% of one or more of the three primary nutrients - nitrogen (N), phosphorous (P), or potassium (K) can be considered as fertilizer. Industrially manufactured fertilizers are sometimes referred as "mineral" fertilizers. There are several sources of plant nutrients. The two most important are organic manure and mineral fertilizers. When manure and crop residues are used, mineral fertilizers supply the outstanding nutrient balance needed for good crop yields. In most parts of the world, the balance to be supplied by mineral fertilizers is substantial. Fertilizer production entails gathering raw materials from nature, treating them in order to purify them, increasing their concentration, converting them into plant-available forms and often combining them into products that contain more than one nutrient. Soils may be naturally low in nutrients, or it may become deficient due to nutrient removal by crops over the years without replenishment or due to growing of high yielding varieties that have higher nutrient requirements than the local varieties. Macronutrients are needed by plants in large quantities. The "primary nutrients" are nitrogen, phosphorus, and potassium. Today, sulphur is also considered as a key macronutrient. Macronutrients include both primary and secondary nutrients. Micronutrients (or "trace elements") are required in very small amounts for correct plant growth. They need to be added in small quantities when they are not provided by the soil. Fe, Zn, Cu, Mn, B, Mo and Cl are called micronutrients. These elements required in very minute quantities and they mostly act to estimate, activate or accelerate the enzymatic activities in metabolic process of plants. These are required in traces and hence called micronutrient, normally the requirement is met by soil expect few like Mg, Zn and S are need to be supplied separately (Singh, 1996) Micronutrients are sold in forms which vary in physical state, chemical reactivity, cost and relative agronomic effectiveness. Therefore, it is important to select the most effective and economical source for each particular crop and specific soil condition. There are two general philosophies to micronutrients fertilization insurance or prescription application. The insurance or shotgun philosophy has been used to add low amounts of more than one, and sometimes all micronutrients to soil. This method

help to supply all micronutrients removed by a crop and considered as maintenance programme Premium fertilizers containing all micronutrients used to be promoted in this manner, usually maintenance programme do not consider specific crop needs not levels of available micronutrients in the soil, many of the micronutrients applied with this philosophy may not be needed by the crop and there may be wastage of resources still, may be economical on high-value crops, such as fruit crops, vegetables etc. The cost of fertilizer used will be usually low in comparison with the possible decreases in income due to loss in yields and or quality of these high value crops. Every plant nutrient, whether required in large or small amounts, has a specific role in plant growth and food production. One nutrient cannot be substituted for another. Increased knowledge acquired over the years about the plant requirements, sources and most effective methods of applying micronutrients has increased their use in many regions. Higher crop yields, usually resulting from higher rates of N, P, and K. also may have increased needed for micronutrients. In addition, dramatic shift in the tropics to higher analysis fertilizers such as urea, triple super phosphate and diammonium phosphate, has decreased the amounts of some micronutrients applied to the soil as fertilizer contaminants.

1.1

Global scenario
World fertilizer consumption seen as dropping by 5 per cent in 2008-09. As

like other commodities, fertilizers have been affected by the economic downturn. Aggregate world fertilizer demand in 2008-09 has been decreased by 5.1 per cent compared with the previous year, from 168.1 to 159.6 Mt nutrients. Nitrogen has been much less affected, as farmers cannot afford drastic cuts in N- fertilizer application rates without immediate yield penalties, contrary to the situation with P and K fertilizers, P and K fertilizer demand is estimated to be decreased by 1.6 per cent and 14 per cent, respectively. Thus, the global N: P2O5:K2O ratio is seen as deteriorating from 1.00:0.38:0.28 to 1.00:0.36:0.24. Drops in consumption are registered in all the regions except South Asia and Eastern Europe and Central Asia (EECA). Two regions viz., South Asia and Eastern Europe where farmers enjoy strong governmental support for greater fertilizer use. The largest contractions in volume are observed in Western and Central Europe, North America and Latin America. With the prevailing strong agricultural market fundamentals and anticipated progressive recovery of the world

economy, world fertilizer demand is seen to be slightly rebounding in 2009-10 to 165.4 Mt (+3.6 %) with growth rates of 2.6 per cent for N, 6.1 per cent for P and 4.1 per cent for K.

1.2

Indian scenario
Use of micronutrient for agriculture and horticultural crops has increased

markedly in recent years. Increased use is related to higher nutrient demands from more intensive cropping practices and also from farming marginal lands. The pragmatic fertilizer policies perused by the government along with promotional efforts by central and state government have made it possible for the country to consume little more i.e. 18.1 metric tonnes in 1999-2000 of plant nutrients N+P+K as against less than 70,000 tonnes in 1951-52. All-India consumption of N, P and K fertilizer from 1951-52 to 2006-2007 in units of tonnes shows increase in consumption from 65.6 tonnes to 21651 tonnes. Consumption, production and import of fertilizer from 1981-82 to 2006-07 shows that total consumption of N,P,K was 60.64 Lakh tones total production of only nitrogenous and phosphatic fertilizer was 40.93 Lakh tones and imports of N P K fertilizer was 10.54,3.43, 6.44 Lakh tonnes respectively. In terms of C.I. F value imports was to the tune of Rs.716.62 Corer. for the year 1981-82. Comparing this with year 2006-07, it is clear that total production of N P K was 216.51 lakh tonnes as total consumption of nitrogenous and phosphatic fertilizer was 160.96 lakh tonnes, total import of 2006-07 was of Rs. 4647.18 Rs crore.(source: Department of Fertilizer) State-wise consumption of fertilizer in year 2004-05, 2005-06 and 2006-07 shows clear cut idea of the status of fertilizer industry in India. Total consumption of fertilizers was 447721, 542232, 534852 tonnes respectively for the year 2004-05,200506,2006-07 in south zone and that in west zone was 508238, 545218,625292 tonnes respectively for the year 2004-05,2005-06,2006-07 . Maharashtra states consumption of fertilizer in year 2004-05, 2005-06, 200607 was 173921,196838,225897 tonnes. It was estimated that in India nearly 55 % of the increases in food grains production had come from increased application of fertilizer with adequate moisture. Thus fertilizer will continue to play a vital role in increasing agril production in the country in years to come.

1.3

Importance of study
The use of micronutrient fertilizer along with other major nutrient plays an

important role in increasing production, productivity and farm income. Equally important is that higher doses of fertilizer are required to replenish the nutrient that is removed by the crop to prevent soil degradation. There is considerable scope for increasing fertilizer consumption in India. Fertilizer consumption per hectare of arable land is significantly low compared to other countries including our neighboring countries viz. Bangladesh. But now a days there is great emphasize on balanced and integrated use of plant nutrient including secondary and micronutrient fertilizers. The fertilizer industry on its part can play a significant role in these efforts. Timely and normal rainfall, good inflow into the major reservoirs during the year and increase in irrigated acreage provides impetus to cropping and higher consumption of fertilizer. Maintenance of good soil condition is far important to get better yield and to maintain good crop growth. The need for maintaining good soil condition has given birth to the concept of integrated nutrient management. This concept of INM is improving the status of agrochemical and fertilizer sector worldwide. The fertilizer industry is growing through improvement phase. With the established fertilizer companies, new companies are emerging in this sector which is leading to dangerous competition in the market. The demand for fertilizer of company has become uncertain, shortening the life of product in the market. In such a situation, evaluation of product in the market becomes important. This project will help to evaluate the awareness, acceptance of Mahadhan Kranti and also to know the competition in the market. The study will also help to identify the promotional activities of DFPCL as well as the competitors in market. This project will be of great importance for its sale promotion and brand establishment in market.

1.4

Objective of study
1) To study farmers perception about Mahadhan Kranti. 2) To analyze the competition in market. 3) To analyze the nutrient status of soil in Shirur tahsil. 4) To study promotional activities of DFPCL.

1.5

Scope of study
Considering the need of market research, the project entitled, Market

Research and Promotion of Mahadhan Kranti has been selected. The fertilizer industry in India is playing a significant role by emphasizing the concept of integrated nutrient management. Increased awareness, improved varieties, understanding and acceptance for modern farming methods are helpful to improve the fertilizer industry. But as new players are entering in the sector, the fertilizer companies have to face the dangerous competition in the market. One product of a company cannot be established in market due to high competition and the product life in market is shortening. Under this situation, understanding the awareness of product among the farmers, their acceptance for the product in market and market strategies of other players in market need to be emphasized. The market research on all these aspect will be helpful for promoting the product in the market and to establish the brand in the market. Thus study has wide scope to know the competitors, satisfaction level, and perception of farmers towards the use of product. This work will prove to be of great importance for constructing strategic policies for promotion of its product and sale.

2. RESEARCH METODOLOGY
The objectives of study are focused on farmers perception, generation of demand by promoting the product, analyzing nutrient status and the competitors activities. The object of any scientific investigation is to draw the useful conclusion in the light of the objectives of the study. In order to arrive at the conclusion it is essential for the investigator to adopt appropriate method and procedure. Keeping this in view, this chapter has been devoted to explain methodology adopted to fulfill the objectives under study. It deals with the procedure used for selection of sample, method of data collection, type of data collected, source of data and analytical procedure used in study to get the result as per the objectives of the study.

2.1

Selection of sample respondents

Simple and personal approach of sampling technique was used to select sample

respondents from the Shirur Tehsil of Pune district. The sample selected was inclusive of farmer respondents and dealers respondents, in all 40 farmers and 10 dealers were selected as sample.

2.2
source. 2.2.1

Data collection
Data was collected from two source that is primary source and secondary

Primary data Primary data was collected from the farmers and dealers with the help of

specially designed questionnaires for study purpose by personal approach and interviews. 2.2.2 Secondary data Secondary data was collected from the references and, published information, official websites of various organizations like Department of Fertilizers, Ministry of Agriculture, Govt. of India, etc. The data related to products was collected from the websites of different companies.

2.2.3

Questionnaire design

The questionnaire used for data collection was consist of open ended, closed ended, dichotomous and multiple choices questions. This design of questionnaire helped to collect appropriate data which was required for the research. 2.2.4 Year of study The study has been carried out in 2009- 2010

2.3

Analytical tools used

The collected data were compiled and analyzed with tabular method of

analysis. Simple percentages were calculated and used for interpretation of results. To find out the perception levels, score card method was used.

3.

RESULTS AND DISCUSSION

This section deals with the analysis of data concerned to the different aspects of the present study and presentation of results. Data analysis represents probable result as per the data collected from selected sample. Methods used for analysis was percentage method. As per objective results are presented along with interpretation of result.

3.1

Profile of Company
The genesis of Deepak Fertilizers And Petrochemicals Corporation could be

said to be in the year 1970 when Mr. C. K. Mehta set up Deepak Nitrite Ltd, combining his skills in trading and manufacturing. DNL grew by leaps and bounds, surpassing expectations of all investors and also won many prestigious awards like the Sir P.C.Ray award, for being the Best Chemical Industrial Unit in India. In 1983, Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL) started commercial production of ammonia (in technical collaboration with Fish International Engineers (USA) using natural gas as feedstock. This marked the fulfillment of a need for lateral integration into the world of basic building block chemicals, premium fertilizers and petrochemicals. At the time, this was India's only merchant ammonia manufacturer. The International Finance Corporation initially supported this venture of Deepak group in the form of equity participation in DFPCL. The company undertook major expansion and diversification in 1989 to achieve forward integration of ammonia and diversification in Methanol. In July 1992, DFPCL commenced commercial production of Low Density Ammonium Nitrate (LDAN), Nitro Phosphate (NP), Dilute Nitric Acid (DNA), and Concentrated Nitric Acid (CNA). This has resulted in a multi-product portfolio for DFPCL consisting of chemicals, petrochemicals, fertilizers and other agri-inputs. DFPCL has a chemical storage terminal at Jawaharlal Nehru Port Trust (JNPT) to provide support to its logistics management system and ensure a window to the world trade in chemicals. It is in the process of adding new storage facilities for Ammonia, Methanol and other products. The company also leases port storage capacities at Bombay Port Trust and Vishakhapattanum

3.1.1

Business of DFPCL DFPCL's business can be broadly categorized into

1.

Chemicals This division of DFPCL manufactures Methanol, various grades of Nitric Acid

and Ammonia. DFPCL not only largest producers of Methanol in India, but also one of the largest manufactures of various concentrations of Nitric Acid and Low Density Ammonium Nitrate, blast. DFPCL is the only one company making pilled Ammonium Nitrate (AN). 2. Agribusiness This division of DFPCL manufactures 23:23:0 pilled Nitro Phosphate Fertilizers under the brand name Mahadhan. DFPCL markets Mahadhan through a network of over 1000 dealers. Mahadhan is one of most widely accepted fertilizer brands in India due to companies rigorous efforts. 3. Specialty Retailing Ishanya is India's first International Design Centre and Specialty Mall - a centre for excellence in space design and the one-stop shop for interior and exterior products. Ishanya foundation is focused on Women Empowerment, Education and Health. 3.1.2 Social Responsibilities The company has been contributing towards social causes for nearly two decades. The Deepak Charitable Trust and the Deepak Medical Foundation with the support of DFPCL and Deepak Nitrite Limited are carrying on development activities for society the trust has been actively working in the area of mother and childcare through an integrated network of women health workers. 3.1.3 Goals of DFPCL

1. To increase the national agricultural productivity by providing agriculture inputs and services. 2. To provide the agriculture inputs and services with least consumption of real resources and at least cost. 3. To obtain for its employees as decent a standard of living and as good a quality of life as possible, consistent with the general socio-economic conditions in the country. 4. To secure as high a return on the rate of investment as possible, keeping in view the requirements of other competing objectives.

5. To promote self-reliance in all activities in relation to company's operations including process know-how, design and engineering, erection, commissioning, operations, maintenance of plants and marketing of products. 6. To manufacture and market industrial chemicals related to agricultural inputs and also others based on similar technology and intermediates, by-products, coproducts and waste from the main operations. 7. To promote, organize, and perform research and development in products, technology, engineering, soil science and agronomy in furtherance of various corporate objectives. 8. To improve the environment and minimize to the maximum extent technologically possible, the harmful emissions, atmospheric discharges and effluents. 9. To upgrade the quality of human resources continually and promote organizational and management development. 10. To co-operate nationally and internationally in exchange of information and services of personnel. 11. To have corporate growth at a pace consistent with availability of resources and developmental needs of the economy. 12 To produce fertilizer and chemicals efficiently, economically and in environment manner. 13 To join hands in growth of national economy.

3.1.4

Recognition & award Deepak Fertilizers and Petrochemicals' (and the Deepak group's) unwavering

commitment to quality, safety and community development is reflected by the numerous awards they have received. A few of these awards recognizing DFPCL are British Safety Council Award, Environment, Agriculture and Rural Development Award, Annual Fertilizers Association of India (FAI) Honor, National Safety Council of India Safety Awards 2000.

3.1.5

Director Body of DFPCL C. K. Mehta S. C. Mehta S. S. Marathe R. A. Shah D. Basu N. C. Singhal U. P. Jhaveri S. R. Wadhwa Smt. Parul S. Mehta S. Rama Iyer
Chairman

Vice Chairman & Managing Director

Non-Executive Director

Non-Executive Director

Non-Executive Director

Non-Executive Director

Non-Executive Director

Non-Executive Director

Non-Executive Director

NonExecutive Director

3.1.6 Product line profile The Agri-Inputs Marketing division of DFPCL has a vast and growing network across rural India through which company distribute its bulk specialty fertilizers. DFPCL trade fertilizers, but all of its fertilizers are sold under the brand name "MAHADHAN", which has become one of the best known brands in the sphere of influence. Companies marketing focus is primarily in the states of Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh, Uttar Pradesh, West Bengal, Punjab, & Haryana. DFPCL has a two-tier marketing network. First, DFPCL developed its own dealership network consisting of over 1000 dealers, thus ensuring doorstep delivery when needed. Secondly, It relies on an institutional network i.e. sugar co-operatives, which in turn sell MAHADHAN products to shareholders or farmers. It also has strategic tie-ups with various Marketing Federations like Fertilizers Co-operation of India, Duncans.

Table 3.1.1

Fertilizer products of DFPCL Specialty Fertilizers a) Bensulf Natural fertilizers

Bulk Fertilizers a) Complex Fertilizers: 1)Mahadhan Power (23:23:00) 2)DAP (Chetak) b) Mixtures: (Bhudhan) 1)18:18:10 2)20:20:00 3)20:10:10 c) Straight Fertilizers: 1)SSP (Super) 2)MOP (Potash)

(Granular a) Crop Plus (Micro b) Natural Potash c) Natural Phosphorus d) Natural Zinc e) Natural Megacal f) Natural Chilli & Veg.

Sulphur) b) Kranti

Nutrients) c) Shakti (Secondary Nutrients) d) MgSO4 e) ZnSO4 f) Amruta (Water Soluble Fertilizer)

Spcl. g) Natural Soybean Spcl. h) Natural Cotton Spcl.

Table 3.1.1 depicts the product line DFPCL which include bulk fertilizer viz. complex, mixture and straight fertilizers; specialty fertilizer viz. Kranti ,Shakti etc. and Natural fertilizer viz. crop plus ,Natural potash 3.1.7 Agri Lab Services To provide services to the farmers like soil testing, plant tissue testing water analysis DFPCL set up a well equipped agri lab and provides all these facilities under one roof. a) Analysis of N,P,K and S along with micronutrient in addition to pH and electrical conductivity.(EC) b) Computerized fertilizer recommendation based on the above analysis. c) Testing of water to check its suitability for irrigation and advice farmers accordingly. d) Testing of plant tissue samples for all measure and micronutrient and advice farmer on scheduling for fruit crops. e) Analysis of manure, organic and chemical fertilizer to check quality. 3.1.8 Profile of product Mahadhan Kranti It is one of the specialty products of the Deepak Fertilizer which provides

micronutrients to the crop in balanced proportion. It supplies Ca, Mg and S in addition

to other micronutrients, which increase the efficiency of utilization of N, P and K. It is also suitable for application along with fertilizer as well as it is available in different crop specification formulations. For Sugarcane This formulation special made for sugarcane crop enriched with Mg (3% Mgo). It supplies Fe and Zn in large quantity. It helps to minimize the Fe deficiency it helps to increase the sugar content and yield. For Vegetables Mahadhan Kranti for vegetables provide balanced nutrient supply as it is, enriched with magnesium, It also contain 4 % extra iron to sustain good vegetative growth. It helps to increase the root growth and green flower formation. For Fruits The formulation is for fruits Mg based (5 % Mgo) micronutrient fertilizer enriched with addition boron nutrient 2.0%. It ensures lush green growth by preventing of dropping flower and fruit. It helps to improves fruits quality and yield. For Field crops Mahadhan Kranti for field crops is especially suitable for the calcareous soil with high pH range. It prevents the general chlorosis in pulses, oil seeds and cereals. This formulation availability of also increases the availability of N.P and K makes the nutrient easily available, it also helps to increases the availability of N, P, and K.

3.2
district. 3.2.1

Profile of Shirur Tahsil of Pune District

The area selected for the collection of primary data is Shirur tahsil of Pune

General Information:The study area was selected from Pune district of Maharashtra state. The

peculiarity of study area i.e. Shirur tahsil was that main city is divided in distinctly in semi modern and rural area. The tahsil is well developed due to the Koregaon Bheema and Ranjangaon Industrial area. There also famous Ranjangaon Ganesh temple and Sambhaji maharaj Samadhi place at Vadu (Bk). There was an old Sugar factory i.e.Shirur taluka Sahkari Sakhari Karkhana ltd. 3.2.2 Geographical location:Pune district is located between 17 degree 54 and 10 degree 24 north latitude and 73 degree 19and 75 degree 10 east longitude. Shrigonda and Parner tahsil of

Ahmednagar district are on north-east of Shirur tahsil. Haveli tahsil on the south-east. Khed tahsil on north east. 3.2.3 Soils and Rivers Soil of the Shirur tahsil is medium to black with good soil condition of water holding capacity. Shirur is situated between Bheema and Ghodnadi which play vital rolel in providing the irrigation facilities to agriculture area. 3.2.4 Climate and rainfall:Shirur tahsil is characterized by hot and dry climate. April and May are the hottest month in Shirur as well as Pune District. December and January are coolest months, when average temperature falls as low 110C. Humidity is low during summer months due to increased evaporation losses from the atmosphere. Rain fall is uncertain which totally depends on monsoon season which low rainfall intensity. Average rainfall of Shirur is between 550 to 750 m.m.

3.3

General Information of sample farmers

The data were collected from 40 farmers and 10 dealers from Shirur Tahsil.

Selected farmers were progressive farmers. The information of sample farmers is given in this section. 3.3.1 Distribution of sample farmers on the basis of age. Age is an important factor for perception of new concepts. The concept of integrated nutrient management is a new emerging concept which stresses the micronutrient use along with major nutrient for maintaining good soil condition. In view of this, to get an idea about the perception of new concept, it is essential to know the age group wise distribution of sample farmers.

Table 3.3.1

Distribution of sample farmers on the basis of age. Age <30 30-40 >40
No. of Respondents(N= 40) Percentage

Sr. No. 1 2 3

6 18 16

15 45 40

It is observed from the Table 3.3.1 that 45 per cent of farmer belongs to age group 30-40 and 40 per cent above fourty. This revealed that the most of farmers

belongs to middle age group thats with good knowledge and experience therefore they may be accept the new ideas like integrated micronutrient use. 3.3.2 Distribution of sample farmers on the basis of education Education is very vital to understand the use and importance of new concepts such as integrated micronutrient management. In view of this, the sample farmers were distributed according to their education level to understand their capacity to acquire the knowledge. Table 3.3.2 Distribution of sample farmers on the basis of education Education Primary Secondary Graduation
>Graduation No. of Respondents(N= 40) Percentage

Sr.No. 1 2 3 4

5 19 10
6

12.5 47.5 25
15

From Table 3.3.2 it can be revealed that 25 per cent of farmers secured graduation.15 per cent farmers were post graduate while 47.5 per cent farmers secured secondary education. From the table it can be revealed that most of the farmers were well educated and would able to can implement the new concept in their farming business.

3.3.3

Distribution of sample farmers according to land holding The information relating to land holding of sample farmers is given in Table

3.3.3. Table 3.3.3 Distribution of sample farmers according to Land holding Particulars Marginal ( < 1 ha ) Small ( 1- 2.5 ha ) Medium ( 2.5- 5 ha) Large ( > 5 ha ) No. of farmers 15 12 8 5 Percentage 37.5 30.0 20.0 12.5

Sr.No. 1 2 3 4

From the Table 3.3.3, it can be observed that out of 40 sample farmers, 15 were having marginal land holding i.e. below 1 ha. 12 farmers were having small land holding i.e. 1 to 2.5 ha. While 20 per cent farmers were from medium size group having 2.5 to 5 ha land holding. From the table it can be revealed that majority of sample farmers were having marginal or small holding.

3.4

Farmers perception about Mahadhan Kranti

To find out the sample farmers perception about Mahadhan Kranti different

aspects such as use, acceptance of Mahadhan Kranti as well as awareness regarding Mahadhan Kranti has been studied. 3.4.1 Distribution of sample farmers according to awareness regarding Mahadhan Kranti For the effective use of micronutrients, the know how about micronutrients is essential. The awareness of sample farmers about Mahadhan Kranti was observed by examining the know how about the Mahadhan kranti.The questions regarding the content and usefulness were asked to the sample farmers to find the awareness regarding Mahadhan Kranti. The results about the awareness were given in Table 3.4.1

Table 3.4.1

Distribution of sample farmers according to awareness regarding Mahadhan Kranti

Size groups Total Marginal Small Medium Large 8 10 5 4 27 Awareness (53.33) (83.33) (62.50) (80.00) (67.50) 7 2 3 1 13 Non-awareness (46.67) (16.67) (37.50) (20.00) (32.50) 15 12 8 5 40 Total (100) (100) (100) (100) (100) (Figures in the parentheses are percentages to the total) Particulars From Table 3.4.1, it can be revealed that from 40 sample farmers 27 (67.50 per cent) farmers were aware about Mahadhan Kranti while 13 (32.50 per cent) farmers were not aware. 83.33 and 80.33 per cent farmers were aware about Mahadhan Kranti from small and large size group. While 16.67 and 20.00 per cent farmers were not aware about Kranti from small and large size group respectively. The awareness about Mahadhan Kranti was observed to be 53.33 and 62.50 per cent from the farmers of marginal and medium size group. The non-awareness was observed in 46.67 and 37.50 per cent sample farmers from marginal and medium size group respectively.

Figure 3.1

Distribution of sample farmers according to awareness regarding Mahadhan Kranti

3.4.2

Distribution of sample farmers on the basis of use of micronutrients The information regarding the users and non users of micronutrient among the

sample farmers is given in Table 3.4.2

Table 3.4.2 Distribution of sample farmers according to use of Mahadhan Kranti Particulars Marginal 12 ( 80.00) Size groups Small 7 (58.33) Medium 4 (50.00) Large 4 (80.00) 27 (67.50) Total

Users

Non-users

3 ( 20.00)

5 (41.67)

4 (50.00)

1 (20.00)

13 (32.50)

15 Total (100.00)

12 (100.00)

8 (100.00)

5 (100.00)

40 (100.00)

(Figures in the parentheses are percentages to the total) The distribution of users and non users of Mahadhan Kranti is presented in Table 3.4.2 The table reveals that out of 40 sample farmers from all size groups, 27 farmers were using the micronutrient, while 13 farmers were not using micronutrient. 67.50 per cent farmers were users and 32.50 per cent farmers were non users. From the marginal size groups 80 per cent farmers were users and 20 per cent were non users of Mahadhan Kranti. From small and large size groups the per cent users of micronutrient were to the tune of 58.33 and 80 per cent respectively while that of non users were 41.67 and 20 per cent respectively. The medium size group represented by sample farmers showed equal per cent of users and non users i.e. 50 per cent.

Figure 3.2

Distribution of sample farmers according to use of Mahadhan Kranti

3.4.3

Distribution of sample farmers according to acceptance of Mahadhan Kranti. Acceptance of micronutrient Mahadhan Kranti was examined on the basis of

satisfaction derived by farmers Table 3.4.3 Distribution of sample farmers according to acceptance of Mahadhan Kranti Particulars Size groups Marginal 8 (53.00) 7 (37.00) 15 (100.00) Small 6 (50.00) 6 (50.00) 12 (100.00) Medium 4 (50.00) 4 (50.00) 8 (100.00) Large 3 (60.00) 2 (40.00) 5 (100.00) Total 21 (52.50) 19 (47.50) 40 (100.00)

Acceptance

Non- acceptance

Total

(Figures in the parentheses are percentages to the total) Table 3.4.3 indicates the distribution of 40 sample farmers from different size groups as per acceptance and non acceptance of Mahadhan Kranti. From the Table 3.4.3, it can be revealed that from marginal size holding 53 per cent farmers who accepted Mahadhan Kranti were 37 per cent non accepted. The per cent of farmers from large size group who accepted Mahadhan Kranti was 60

while that of non acceptance was 40. From small and medium size group 50 per cent rejected to accept the micronutrient. At general level, out of 40 sample farmers, 52.50 per cent farmers rejected Mahadhan Kranti.

Figure 3.3

Distribution of sample farmers according to acceptance of Mahadhan Kranti

3.5

Competition analysis of market players

Competition analysis was done to get on idea of position of DFPCL

(Mahadhan) in market on the basis of sale of micronutrient fertilizer and price of micronutrient fertilizer. 3.5.1
Competition for micronutrient fertilizer sale

The data was collected of micronutrient fertilizer sale of all companies of last year. The preference scale of 0 and 1 was used to find out the competition of different market players For different companies in market promoting their micronutrient, the question whether the product was sold or not was given for non sale of product, the result was presented in Table 3.5.1

Table 3.5.1 Company Preference

Preference given by dealer/sub-dealer regarding competition.

Aris Fertilizer Deepak Ranade Karnataka Agro chemical Rich Fertilizer Green Crop Fertilizer

Fertilizer Chemicals

10

From Table 3.5.1, it was observed that Ranade chemicals secured first position with preference score of 10. The second position was secured by Aris and Rich fertilizer with preference score of 7 and 6 respectively while as per the preference score 5, Deepak and Green crop were on fourth position while Karnataka Agrochemicals Pvt. Ltd. secured last position with preference score of 4 . From the table it was revealed that Deepak fertilizers being on third position need to improve its sale.

Figure 3.4 3.5.2

Preference given by dealer/sub-dealer regarding competition

Availability of micronutrient Availability of micronutrient fertilizer is indeed an important aspect which in

turns increases the sale of micro nutrient and also helps to balance the demand and supply forces. The data was collected on availability of micronutrients from the dealers by using the preference scale method. The preference scale of 0 and 1 was used to find out the availability of micronutrients in market The score 1 was given for the availability and 0 was given for non availability of micronutrient and the result is presented in Table 3.5.2 Table 3.5.2 Company Percent Availability of micronutrient fertilizer in market.
Aris Deepak Ranade Karnataka Rich Fert. Green Crop

From the Table 3.5.2, it can be revealed that Ranade chemicals secured first position with score of 8. The second position was secured by Aris with the

preferences score of 6. With the preferences score of 5, Deepak fertilizer secured third position, Karntaka Agro and Green crop with preferences score of 3; secured fourth position. Rich fertilizer with preferences scores 2 secured last positions. From the table, it can be observed that the dealers response regarding availability of Mahadhan Kranti was less than Ranade and Aris. Deepak fertilizer need to improve the availability of micronutrient to cope up the demand and supply gap to secure better position in market.

Figure 3.5

Availability of micronutrient fertilizer in market according to company-wise

3.6

Nutrient status of soil samples from sample farmers

Use of micronutrient for agronomic and has increased markedly in recent years

increased use is related to higher nutrient demands from intensive cropping practices and also from farming marginal lands. The intensive cropping and farming are two important factors which make the soil deficient for different micronutrient .The deficient or excessive availability of one micronutrient may cause synergetic or antagonistic effect on availability of other micronutrient and which directly hamper the crop yield. As Mahadhan Kranti is a micronutrient supplier which supplies Ca, Mg, and S in addition to other micronutrient, the effort was made to analyze the soil for Ca,

Mg, S Fe and Zn availability of all the sample farmers which may in turn help to recommended the Mahadhan Krantion the basis of analyzed sample. The result of an analyzed soil sample have been given in Table 3.6 Table 3.6 Nutrient status of soil samples from sample farmers Micronutrient Ca No. of Samples(N = 40) 14 Sufficient Status Deficient Sufficient Deficient Sufficient Deficient Sufficient Deficient Sufficient Deficient 26 18 22 23 17 4 36 9 31 Percent 35 65 45 55 57 23 10 90 23 77

Mg

Fe

Zn

From the Table 3.6, can be it observed that, 65 per cent soils are deficient in calcium. In case magnesium 55 per cent soils observed to be deficient. 90 per cent soils samples observed to be deficient in Fe while 77 per cent soils were deficient in Zn . Sulphar was found to be sufficient in 57 per cent of soils found to be deficient in S From the data it can be revealed that all the soils need reclamation with by using micronutrient fertilizer, Mahadhan Kranti can provide the deficient micronutrient viz: Ca, Mg, Fe and Zn as it is enriched with all these micronutrients required by the soil which were tested.

Figure 3.6

Nutrient status of soil samples from sample farmers

3.7

Promotional activities of DFPCL

Promotion is the generatic term which encompasses all such tools in marketing

mix that aims at persuasive communication. All activities involving in the persuasive communications are called promotional activities. These activities make potential buyers of a product aware of the existence of a product and its merits converting the potential buyers into actual consumers. In the modern competitive environment, promotion is considered to be a key weapon in marketing for the companys growth and its success. Any company wish to stay in business has to develop and execute sale promotional programmes. The promotional activities under taken by DFPCL and other market players, categorized in two groups viz, With the farmers and To the farmers. Medias like advertisement through news papers, T.V., Radio, and Hoarding, wall painting belonging to the category to the farmers were used by all the competitors. The stress was given to study the promotional activities under the category With the farmers which include method demonstrations, field assistance, farmers meetings, result demonstrations. The response to the promotional activities performed by all the companies was studied and presented in Table no 3.7

Table3.7 Promotional activities according to company wise Sr. No Promotional Activities with the farmers Method demonstration
DFPCL Ranade Aris Karnataka Greencrop Richfield

Response to company(N = 40)

15 (37.5) 10 (25) 17 (42.5) 12 (30)

4 (10) 11 (28) 9 (22.5) 6 (15.5)

5 (12.5) 4 (10) 5 (12.5) 4 (10)

6 (15.5) 3 (6.5) 3 (6.5) 5 (12.5)

4 (10) 2 (5) 3 (6.5) 6 (15.5)

6 (15.5) 10 (25) 3 (6.5) 7 (17.5)

Field Assistant

Farmers meeting Result Demonstration

(Figures in the parentheses are percentages to the total) The Score card method was used.

Figure 3.7

Promotional activities according to company wise

From Table 3.7 it is shown that Deepak fertilizers are in top position regarding promotional activities like Method demonstration, Farmers meeting, Result demonstration .While Ranade is top in field assistant promotional activity.

3.8

Findings
Followings are some findings observed after studying the data of

collected

to study

farmers, perception competition

analysis

promotion

products, and 1.

nutrient status of Shirur tahsil.

Majority of farmers belongs to marginal and small Size group of land holding.

2. 3. 4. 5.

67.50 per cent farmers are aware about Mahadhan Kranti 67.50 per cent farmers are using Mahadhan Kranti More than 50 Per cent farmers are satisfied with Mahadhan Kranti Ranade chemicals secures top position in Micronutrient sale as well as the in availability of micronutrient and is the main competitor of DFPCL

6. 7.

Soil analysis indicates the deficiency of Ca, Mg, Fe and Zn. Farmers meeting, field assistance and result demonstrations are the main promotional activities.

3.9
1. 2. 3. 4.

Conclusions
Majority of farmers are aware about Mahadhan Krantiand using it. Ranade chemical is main competitor in the market. Ca, Mg, Fe and Zn deficiency defines the need of micronutrient use. Result demonstration is an important promotional activity.

3.10 Suggestions
1. More efforts are needed to develop awareness in farming community regarding benefits of micronutrient fertilizer through farmer meetings result demonstration and advertisement. 2. Timely and continuous supply of micronutrient fertilizer prior to the season should be maintained to increase the sale of micronutrient. 3. 4. Need to develop the efficient network at field level. Dealers need to be involved in sale promotion activities by launching attractive schemes for dealers.

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REFERENCES
Philip Kotler and Gray Armstrong. 2008. Principle of Marketing. Pearson education, inc. 5: 123-139 www.dfpcl.com Kailas Suryavanshi a Report on Forward and backward linkage for productivity improvements through mahadhan sarathi2005-2007. Parabat Aniket 06/120 a Thesis on A Study of role perception and performance of the members of farmers-scientist forum under NARP,Solapur.

Farmers Questionnaire ----------------------------------------------------------------------------------------------------1) Name of the Farmer: Age : Address: Contact No: Education:

2) Land under cultivation (ha.):

Irrigated: Un-Irrigated: Total

3) If Irrigated, then which type of method used for irrigation? a) Drip irrigation b) Sprinkler irrigation c) Other (specify)

4) Cropping pattern: Sr.No. Season Name of crop Area (Ha) Yield

5) Which type of fertilizers do you use? a. Chemical fertilizers b. Organic fertilizers c. Biofertilizers 6) Are you using micro nutrient fertilizers? Yes / No If yes, Which are those? ------------------------------------------------------------------------------------------------------------------------------------------------

7) Are you satisfied from that? Yes/No fertilizers If no, what are the reasons? ------------------------------------------------------------------------------------------------------------

8) Which method do you use for fertilizer application? a) By Spraying: b) By Drip irrigation: 9) Source of information for using a particular company fertilizer? a. Agro service center. b. Agriculture Officer. c. Other farmer. d. Company salesperson. e) Other (Specify)10) do you heard about MAHADHAN KRANTI micronutrient fertilizer? Yes/No If Yes give reason .. .

11) Name the micronutrient fertilizers (and name of manufacturing company) you used? Sr. No. Name of micronutrient Company Name of Crop (s) Fertilizer

12) What are the reasons for using these fertilizers? 1. Price 2. Quality 3. Service 4. Other (specify) 13) Reactions of farmer towards the use of water soluble fertilizers. Particulars Reactions of farmer

1.Price 2.Packing size 3.Application 4.Durability 5.Hazards 6.Availability 7.Crop suitability

14) Why these MAHADHAN KRANTI used? What type benefits you have seen after use ? 15) What is your annual expenditure on water soluble fertilizers? 16) Do you get MAHADHAN KRANTI fertilizers as and when you require? Yes / No. If No, what are the reasons? -----------------------------------------17 )What are your suggestions on the following points? a. Price of w.s fertilizer -----------------------------b. Packaging ---------------------------------------c. Availability ------------------------------------------d. Ingredients ----------------------------------------------e. Any other (specify) --------------

QUESTIONARRIE FOR DEALER

Name of party Name of responsible person Address Education Contact noCommand area 1-5 villages 5-10 villages 10-20 villages Tahsil 1) Which farming inputs are available in your shop for sale? Fertilizers Water soluble fertilizers Pesticides Biofertilizers Micronutrients Other 2) Whether the Farmers are aware of micronutrients? 3) Whether the Farmers demand micronutrients ? 4) Total turn over of last 3 year 2006-07 2007-08 2008-09 5) Total turnover of micronutrient fertilizers per year

6) Name of micronutrient fertilizers company wise Deepak Zuari RCF Randey chemicals Others

7) Which companies micronutrient are more sale? Why?

8) %share of MAHADHAN KRANTI in total micronutrient fertilizers sale? 9) What about the supply of MAHADHAN KRANTI ?

10) Which bag size is more preferable by farmers? Why? 25kg 2) 10kg

11) What are the promotion activities carried out by different companies?

12) What is the reaction of farmers about price of MAHADHAN KRANTI?

13) What should be done to increase the sale of MAHADHAN KRANTI? Suggestions.

VITA

Mr. Dadar Dhanraj Ashok

(Regn. No. 08/223)

A candidate for the degree of MASTER OF BISUNESS MANAGEMENT (AGRICULTURE) - 2009 --------------------------------------------------Title of the Project : Market research and promotion of Mahadhan Kranti in Shirur tahsil of Pune dist. Department : Master of Business Management (Agri.) Biographical facet * Personal information : Born on 27th August, 1986, at Pune, Tahasil Haveli, Dist. - Pune.Son of Mr. Dadar Ashok Sakharam and Mrs.Dadar Padmini Ashok.

*Educational qualification: Attended S.S.C. Examination at New English School, Kombhali, securing First Class with Distinction in the year 2002. Passed H.S.C Examination from M.G.Jr.College, Karjat bagging Second Class, in the year 2004. Obtained B. Sc. (Agri.) degree with Second Class in the year 2008, from College of Agriculture, Kolhapur, a constituent college of Mahatma Phule Krishi Vidyapeeth, Rahuri. * Permanent address: A/p Kombhali ,tal:Karjat , Dist: Ahmednagar Pin code:414402 Contact No. :9423389676 / 02489240136 email : dnathdhanraj69@rediffmail.com

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