Corporate Profile MCF

8/4/2019 Corporate Profile MCF

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The name of the company is given to you for the assignment.

1. Take any product / service of the company2. Targeting the Rural Market - what is the USP the company has made?3. Which is the strategy adopted?4. Take the 6 A's of marketing and analyze.5. Prepare for a presentation of ten minutes (with the company profile)6. The evaluation of the assignment and presentation will be made with the help of Bs. Communicationfaculty member.

The presentations will start from Monday the 8th August 2011. The students will be called to present onrandom basis.

Corporate Profile Mangalore Chemicals and Fertilizers Limited

(MCF), with a turnover of over Rs. 2,081.73 Crore (FY 2009-2010), is the only manufacturer of chemical fertilizers in the stateof Karnataka. The factory is strategically located at Panambur, 9km north of Mangalore City, on the banks of the Gurpur River, infront of the New Mangalore Port. The plant is well connected,both by rail and road. The West Coast National Highway (NH-l7)from Kochi to Mumbai separates MCF from the New MangalorePort.

The Company is a part of the UB Group with Group shareholdingof 30.44%. Dr. Vijay Mallya is Chairman of the Board of Directors. The operations are managed by a team of highlydedicated and experienced professionals.

The New Mangalore Port is an all-weather port capable of handling ships up to 30 feet draft. Naphtha, Fuel Oil, Ammoniaand Phosphoric Acid - the main raw material are obtainedthrough the port. The plant site is well linked, both by rail and road.

The Company has capacity to manufacture 2,17,800 MT Ammonia (intermediate product),3,79,500 MT Urea, 2,55,500 MT Phosphatic Fertilizers (DAP & NP 20:20:00:13), 15,330 MTAmmonium Bi-Carbonate (ABC) and 33,000 MT Sulphuric Acid (SAP) annually. . The designand engineering of the Ammonia/Urea plants was done by Humphreys & Glasgow Limited,London, a leading international firm in the fertilizer field and their associates, Humphreys &Glasgow Consultants Pvt. Ltd., Bombay. (The firm is now merged with Jacobs Engineering,USA). The Phosphatic plant is designed and engineered by Toyo Engineering Corporation,Japan. PDIL and Furnace Fabrica the Indian firms were involved in the construction of ABC andSAP respectively.



The construction work started with the first pile driven on October 15, 1972 by the then Chief Minister, Shri D. Devaraj Urs.

The Ammonia/Urea plants were commissioned in March 15, 1976.

1976 Ammonia & Urea production commenced1982 60 tons per hour auxiliary boiler installedAmmonium Bi-carbonate plant commissioned

1984 Purge gas recovery unit installed1985 Captive power plant commissioned1986 Di-ammonium phosphate plant went on stream1993 2.5 Million Gallons reservoir constructed1999 Marketing of Granulated Fertilizers2002 Installation of Pipe Reactor.

20:20:0 & 16:20:0 complexes producedMarketing of micro nutrient - Zinc Sulphate

2003 SAP R/3, integrated software system, OPERATION MITE, implemented.MCF receives ISO 14001 Certification2005 Receives OHSAS certification2006 Installation of 100 TPD Sulphuric Acid plant2008 Installation of Imported Fertilizers Handling Unit

Board of Directors

Dr. Vijay MallyaChairman

Dr. Vijay Mallya, is the Chairman of the $ 2 billion UB Group. Dr.Mallya took over the reins of the Group in 1983 at the age of 28 and has,since then, steered the UB Group to a multinational conglomerate.

Instrumental in shaping the Kingfisher brand as one of the most popularbeers across the globe. Dr. Mallya has received several awards both inIndia and overseas. He was conferred a Doctorate in Philosophy inBusiness Administration ( honoris causa ) by the University of SouthernCalifornia and nominated as a Global Leader for tomorrow by the Genevabased World Economic Forum ( WEF).

In recognition of Dr. Vijay Mallya‟s contribution to the development of Trade and Industry in Karnataka, the Federation of Karnataka Chambers of Commerce and Industry conferred upon him “ Sir M. VisveswaraiahMemorial Award” for the year 2001.

Dr. Mallya is a former Member of Parliament and on board of severalPublic Companies in India and abroad.



S. R. GupteUB GroupNominee

Mr. S. R. Gupte, Handled diverse assignments in sectors like finance,administration and personnel with oil major Caltex and airline major AirIndia, both in India and abroad for more than two decades. He joined AirIndia in 1969 and worked in various positions in India and abroad. He was

entrusted with the functions of Deputy Managing Director and took over inthe acting capacity as Chairman and Managing Director of Air India in1990.

Mr. Gupte joined the UB Group in March 1992 as Executive ViceChairman and is on the Board of a number of Public Limited Companies.He has been on the Board of the Company from December 1996.

Deepak AnandManaging Director

Mr. Deepak Anand, has over 36 years senior managerial experience inIndia and Overseas with large companies.

He started his career in the management consultancy division of A.F.Ferguson & Co. (AFF), the then largest firm of chartered accountantsand management consultants in India. During his 15 years (1973-1988)with AFF, he rose to become a Director in the Firm and directedassignments in India and abroad.

Mr. Anand joined the UB Group in 1988 as Senior Vice President,Corporate Planning and Coordination. He held various senior managementpositions in the group including Head of Liquor manufacturing, CEO of Kissan Food Products and CEO of UB Global Corporation Ltd ( UBGCL ).

Mr. Deepak Anand, took over as Managing Director of MangaloreChemicals & Fertilizers Limited, in April 2005. MCF has been growingrapidly under his leadership. Mr. Anand is now charting out a new visionand growth strategy for the Company.

Shrikant GRuparelIndependentDirector

Mr. Shrikant G Ruparel, was the Managing Director of Kolhapur SugarMills between 1971 and 1981. He was also on the board of State Bank of India for 18 years. He held Chairmanships of various companies andcouncils including Indo-US joint Business Council, Indo-France jointBusiness Council and Indo-Swedish Business School.

Mr. Ruparel is also on the Advisory Board of Stanford Research Instituteand holds important positions in various other educational centres. He is onthe Board of several public Companies.



Pratap NarayanIndependentDirector

Mr. Pratap Narayan, started his career in the Sales Tax Department of Madhya Pradesh. He worked in Indian Railways in various capacitiesbefore taking over as Deputy Director and Joint Director – Planning inRailway Board.

Mr. Pratap Narayan was the first Executive Director of Fertilizer IndustryCo-ordination Committee and retired as a Director General of the FertilizerAssociation of India. He has taken up various international assignmentsand was member of various committees appointed by the Government onpolicy issues such as Gokak Committee to review pricing of phosphatesand energy consumption norms under Stage II of new pricing scheme forIndian Urea Industry etc., Mr. Narayan has co-authored a book with Dr. HL S Tandon on Indian Agriculture, Past, Present and Future.

N. Sunder RajanIndependentDirector

Mr. N Sunder Rajan, served in various capacities in the Finance Ministry,Ministry of Tourism and Civil Aviation, Lok Sabha Secretariat and the

Office of the Director of Audit, Washington DC before retiring as DeputyComptroller and Auditor General of India.

He has served on the Boards of Vayudooth Limited, Hotel Corporation of India Limited, Airline and Allied Services Limited. He retired from theGovernment in May 2003 as Deputy Comptroller and Auditor General of India.

B. S. Patil, IASIndependentDirector

Mr. B S Patil, IAS, held several important assignments. He has wide

ranging experience from heading State financial institutions to industrialdevelopment. The industrial and IT development in Karnataka owes a greatdeal to him for initiating imaginative policies for attracting investments. Heretired as the Chief Secretary to the Government of Karnataka.

K. Prabhakar Rao

Mr. Prabhakar Rao, has been working with MCF since 1978 and hashandled various responsibilities in the Company. As Director – (Works),he is presently responsible for production, maintenance, quality control,technical services, projects, safety and logistics at the Company‟s plant in

Mangalore.

Mr. Rao has widely travelled and participated in many National andInternational symposiums. He has attended various Management



Director (Works) Development Programs in premier Institutions such as IIM Bangalore &Ahmedabad.

Awards & Recognitions From the year 1996-97, the Company‟s performance dramatically

improved with higher levels of production in all the plants. In fact, the rated capacity of Ureawas manufactured for the first time in 1996-97 since commissioning in 1976, a singular

achievement!

We are proud of having received the following

Awards:

FAI Award for 'Improvement in overall performance of a Company‟ for three

consecutive years 1996-97, 1997-98 and 1998-99.

Letter of recognition in 1997 from DirectorateGeneral of Factory advisory Services andLabour Institutes (DGFASLI) for maintaininggood safety and occupational health standards.

MCF received the „Honest Tax paying

businessmen‟ award from Commercial Taxes

Department, Mangalore Division, a uniqueinitiative taken by Government of Karnataka tohonour the prompt Tax payers. Mr. P. C. Jain,Senior Vice President (Works), MCF,Mangalore, received the award in a felicitationfunction held at Mangalore on 18th March2005.

MCF has been awarded the prestigiouscertificates on 1. Environment ManagementSystem conforming to ISO 14001:2000 in2003 which was updated to latest version ISO

Mr. S.S. Barnala, Hon'ble UnionMinister for Chemicals & Fertilizers,presenting Mr. D.P. Mehta, ManagingDirector, the Fertilizer Association of India Award for "Improvement inOverall performance of a Company"for 1997-98.



14001:2004 in 2005 and 2. OccupationalHealth & Safety Management Systemconforming to OHSAS 18001:1999 standard in

2005 which was updated to latest versionOHSAS 18001:2007 in 2008.

The certificates were awarded by DETNORSKE VERITAS (DNV), the Netherlands,a global certifying agency

Awards instituted by MCF - 2006-2007 & 2007-2008

Mangala Ratna AwardFor highest overall sales by a dealer over the entire marketing territory

List of Awardees Company M/s. The Kerala Cardamom Processing & Marketing Company Ltd.City Thekkaddy , KeralaAward MANGALA RATNA Award

Area Excellence Award

For highest performing dealer in each area

List of Awardees

Company M/s. Manjunatha TradersCity K R PetAward Area Excellence - I, Bangalore Area

Company M/s. Keerthi Krishi KendraCity MysoreAward Area Excellence - I, Hassan Area

Company M/s. Venkatakrishna Trading CompanyCity KampliAward Area Excellence - I, Davangere Area

Company M/s. Shri Venkateshwar FertilizersCity Mahalingpura

Award Area Excellence - I, Hubli AreaCompany M/s. Srideep Trading CompanyCity GangavathiAward Area Excellence - I, Raichur area

Company M/s. Desu Veeraiah SonsCity OngoleAward Area Excellence - I, Nellore area

Company M/s. Universal Fertilizer Corporation



City SalemAward Area Excellence - I, Coimbatore area

Company M/s. P.Kothandan & Co.City KancheepuramAward Area Excellence - I, Trichy area

Company M/s. Athanikal Agro AgenciesCity ThuruthikaraAward Area Excellence - I, Calicut area

Area Level Area Excellence awards for second and third best performance.

Territory Level

Best Performance award for each of the territory

Special award

Best performing institutional agency branch in Karnataka

Ten Year RecordRs. Crores

09-10 08-09 07-08 06-07 05-06 04-05 03-04 02-03 01-02 00-01 Profit and Loss Account Sales 2,075.642,469.621,655.941,371.051,082.32878.02614.21562.79571.18680.63

Other Income 6.09 14.42 9.09 3.44 3.81 9.74 5.47 6.55 11.76 8.08

Interest 23.44 36.00 15.43 16.34 6.72 4.33 3.03 3.80 7.17 4.61

Depreciation 18.37 16.96 15.91 15.22 11.35 11.08 10.64 10.25 8.96 7.59

Profit before Tax 84.53 43.26 58.34 41.97 38.66 36.68 22.45 20.78 20.58 40.15

Balance Sheet

Net Fixed Assets 385.27 336.51 324.60 307.43 299.16250.71255.89256.78145.30108.75Investments 0.05 0.05 0.05 0.05 – – – – – – Net CurrentAssets

181.75 486.45 465.06 303.98 278.13196.41117.53121.77 94.62122.90

Total 567.07 823.01 789.71 611.46 577.29 447.12 373.42 378.55 239.92 231.65 Share Capital 118.55 118.55 118.55 118.55 118.55118.55118.55118.55123.36123.36Reserves &Surplus

311.06 270.65 254.25 228.87 212.07197.70178.10167.33 48.21 48.67

Loan Funds 98.16 396.79 380.01 228.43 213.69101.50 48.27 68.02 49.52 59.62



Deferred TaxLiability

39.30 37.02 36.90 35.61 32.98 29.37 28.50 24.65 18.83 –

Total 567.07 823.01 789.71 611.46 577.29 447.12 373.42 378.55 239.92 231.65

Significant Financial Ratios

09-10

08-09 07-08 06-07 05-06 04-05 03-04

02-03

01-02 00-01

Return on AverageCapital Employed %

17.83*11.09* 12.16* 11.70* 10.97* 13.27* 9.39* 9.60* 11.77 19.89

Operating Profit toSales [%]

5.79 3.31 4.87 5.11 4.89 4.82 4.99 5.03 4.37 6.50

Current Ratio [Times] 1.56 2.61 2.57 2.32 2.33 2.86 1.76 2.18 1.84 2.46Quick Ratio [Times] 1.06 2.05 2.00 1.70 1.65 1.97 1.23 1.25 1.25 1.63Sundry Debtors toSales [Months]

0.29 0.19 0.32 0.79 0.36 0.68 1.66 2.37 1.98 2.54

Inventory of Finished

Goods to Sales[Months]

0.08 0.06 0.14 0.17 0.62 0.13 0.34 0.84 0.27 0.42

* Capital employed is excluding Revaluation Reserve.

Mangala Urea

Product Description

Urea is a Synthetic organic compound containing 46% Nitrogen in Amide form. Available in the form of white solid prills free flowing for easy application. Being Hygroscopic, urea is packed in moisture proof High Density Poly Ethylene bags.

Details

Features & Benefits



Less acidifying than many other nitrogenous fertilizers. Hence most suited for high pHsoils.

High concentration of nutrients makes packing, storage and transport cost cheaper.

Application

Can be applied to soil. Also suitable in solution form as spray. Application is recommended in split doses for better use efficiency.

Technical Details

Moisture per cent by weight (Maximum) - 1% Total Nitrogen per cent by weight (Minimum)- 46% Biuret percent by weight (Maximum) - 1.5%

Packing

Packing - 50 kg HDPE Bag

Mangala DAP

Product Description

DAP contains the second most important primary nutrient element, Phosphorous besidesNitrogen,

Single most important source of nutrient Phosphorous. Available in free flowing granular form. For differentiation with other low analysis compound fertilizers, DAP granules are

coloured with black. Granules are stronger, harder and of uniform size.



Details

Features & Benefits

It is completely soluble in Water It has good storage properties.

Total water soluble P2O5 helps plants to utilise moisture better and makes roots growstronger and deeper even in acidic soils Being non- hygroscopic, DAP can be conveniently stored well even in high rainfall areas High concentration of nutrients makes packing, storage and transport costs per unit cost

of nutrient very low. Nitrogen being present in an easily absorbed Ammoniacal form, loss due to leaching is

minimum.

Application

DAP is suitable for all crops and soils

Recommended for initial application

Technical Details

Moisture per cent by weight (Maximum) - 1.5% Total Nitrogen per cent by weight (Minimum) - 18% Ammoniacal nitrogen form per cent by weight (Minimum) - 15.5% Total Nitrogen in the form of Urea per cent by weight (Maximum) - 2.5% Neutral ammonium citrate soluble phosphates (P2O5) per cent by weight (Minimum) -

46% Water soluble Phosphates (as P2O5) per cent by weight (Minimum) - 41%

Packing


Ammonium Bi Carbonate



Trade Enquiries &

Distributors

Product Description

Food grade product with 99.8 % purity on dry weight basis. White crystalline product. Being very hygroscopic, it is packed in air tight, laminated HDPE bags.

Details

Features & Benefits

Carbon dioxide (CO2) liberated from Ammonium bicarbonate is vital to the baking

industry. It plays an important role in texturing the crumb structure and leavening. Best source of CO2 for baking industry - increases shelf life, does not spoil flavour,

leaves no residual odour. Gives off more CO2 per unit weight than any other brand.

Application

Ammonium Bicarbonate is used in:- Ingredient for fire extinguishers

http://www.mangalorechemicals.com/trade-enquiries.asp?links=ac








- Dyes and pigments- De-greasing of textiles- Blowing-agent for rubber foam products- Cooling baths

- Ceramic industry and light weight brick production- Catalyst manufacture- Smelling salt mixed with oil of lavender- Pharmaceutical industry- Florescent powder- As a fertilizer- Chrome leather tanning : Leather treated with ABC yields - Fullness & tightness- Smoother grain characteristics- Higher chromium uptake leading to pollution reduction in chrome tanning

- Better chromium distribution- Better colour absorption

Technical Details

CharacteristicsMangalaAmbica

As per Food IndustryPrescription

Ammonium bicarbonate per cent byweight minimum. dry basis

99.8 98.00

Chloride (as Cl) per cent by weight(Maximum)

0.001 0.2

Sulphate (as SO4) per cent by weight(Maximum)

0.001 0.1

Iron (as Fe) per cent by weight(Maximum) 0.002 0.004

Non volatile matter per cent by weight(Maximum)

0.01 0.1

Heavy metals (as Pb) in parts permillion (Maximum)

2.5 2.5

Copper (as Cu) per cent by weight(Maximum)

Nil 5.00



Arsenic (as As2 O3) per cent by weight(Maximum)

Nil 0.6

Tarry matterPassesTest

To pass test

Packing

Packing - 25 kg HDPE packing

Mangala 20:20:00:13

Product Description

Contains 20% Nitrogen & 20% P2O5 Contains 13 % Sulphur, a Major Secondary plant nutrient. Granules are uniform and light grey in colour

Details

Features & Benefits

It has good storage properties. Least hygroscopic and does not readily absorb moisture from the air. It can be kept

indefinitely without quality deterioration Due to high water solubility, has a greater mobility in the soil. Being non- hygroscopic, can be conveniently stored well even in high rainfall areas

Application



Suitable for all crops both for initial application and top dressing Granules are stronger, harder and of uniform size which facilitates easy application.

Technical Details

Moisture per cent by weight (Maximum) - 1% Total Nitrogen per cent by weight (Minimum) - 20% Ammoniacal nitrogen form per cent by weight (Minimum) - 18% Total Nitrogen in the form of Urea per cent by weight (Maximum) - 2% Neutral ammonium citrate soluble phosphates (P2O5) per cent by weight (Minimum) -

20% Water soluble Phosphates (as P2O5) per cent by weight (Minimum) - 17%

Packing




Community Care

UK-MCF-TGB Gram Vikas Project

As a responsible corporate citizen, responsive to theneeds of the community around is our objective. Thegovernment of UK had, in 1975, granted an aid of Rs.40 lakhs under the Colombo Plan for overalldevelopment of villages in developing countries.

Several villages were surveyed and finally Sanganakalvillage of Bellary district and Herur village of Raichurdistrict were selected for overall up-liftment of thepoor farmers of these villages with marginal landholdings. For this, a trust was formed under the nameUK-MCF-TGB-GRAMA VIKAS PROJECT. Theprimary objectives of the trust are to sustain andenhance agricultural productivity and help farmersdiversify into allied activities like dairy, poultry, silk rearing, etc.

Community Hall, Herur, RaichurDistrict

Certain agencies committed to rural development, The University of Agricultural Sciences,Department of agriculture and Tungabhadra Grameena Bank, have actively co-operated withMCF in meeting the social objectives of the Trust.

The activities of the Trust over the years has included rural education in health care, setting upreading rooms, empowering women, providing drinking water, conservation of energy, donatingcritical equipment to rural hospitals, furniture to rural schools, construction of communitycenters and rural hostels and training villagers in subsidiary occupations.

Some of the developmental activities undertaken by the Trust are:

Adopting Sangankal village in Bellary District, Herur village in Raichur District, Kulinjevillage of Kundapur Taluk and Lingappayyana Kadu village in Dakshina KannadaDistrict for a period of three years for overall development.

The projects undertaken include construction of Community bath and toilets, providingbetter infrastructure to the schools, improving their libraries, construction of communityhalls and hostels and providing water distribution systems.

Formation of a Mangala Farm Club in the villages and organizing sports activities, freehealth check-up, eye camps, etc. in association with the Lions Club.

Participation in the construction of a 'Mangala Bhavan' Auditorium in the Rotary School,Moodabidri, Dakshina Kannada District, by giving financial assistance.

Providing Sewing Machines to Mahila Mandals, plant protection equipment to YuvakaMandals, Swasthic Chulhas under the non-conventional Energy Resource Scheme,community TV sets, etc. in different villages.

Extending financial assistance for surgeries and intra-ocular lens implants to the disabledin association with reputed eye hospitals.



Documents

Corporate Profile MCF