EXECUTIVE SUMMARY

Agriculture has always been the main stay of people of India for over 100 years .about three fourth of making population of India is engaged in cultivation .the prettily of land is losing day by day due to repeated cultivation .Organic manure alone was used to sustain the partiality of the soil in ancient days .there was severe scarcity for food grains during their second world war and the country had to increase the productivity by using chemical fertilizers. Chemical fertilizers differ radically from other product in the kind of satisfaction provided to the customer .whereas products like television, motor cars tea, and other FNCG products etc provided immediate and direct satisfaction to the users and they were able to appreciate the value and the utility of the product directly and instantly. Fertilizers provided only an indirect satisfaction that too, only fit used as a part or total package of scientific forming practice volume wise to the customer products were not much a model to the fertilizers. This particular study which the researcher conducted was mainly to know the farmers attitude and opinion and to know whether they are satisfied with the fact fertilizers, this study was conducted in Ernakulum district where was no of who take their occupation as a agriculture..Indias 60% populations are farmers so its an apt study to know the farmers opinion about the fact fertilizers. Here in Ernakulum district most of them are preferring \cultivating rubber, pepper, banana and coconut and paddy are rarely cultivated. Other small cultivations are been doing by farmers. Fact fertilizers are widely used by the customers in Ernakulum areas where fertilizers are preferred most. The main objective of the study were to know the customer preferences in the selection of fertilizers ,to find out the satisfaction level from the use of fact fertilizers to see the farmers perception on farming to identify the potential competitors of fact products

INTRODUCTION
According to Philip kotler satisfaction is a personal feeling of pleasure resulting from comparing a products perceived performance in relation to his or her expectation .Depending on the extent to which his requirement are mind a customers may be classified as satisfied customer and dissatisfied customer and delighted customer, if the requirement adequately met the customers will be delighted. Thus satisfaction is depending on his expectation and performance of the product or service. In every business customers are the important objectives though Customer satisfaction cannot deliver in isolation. There are many stakeholders to business and one has to satisfy all these stakeholders in order to satisfy the end customer. These stakeholders include employees of the organization, suppliers, intermediaries marketing, and stockholders of the firm. Any attempt to increase customer satisfaction by increasing marketing expenditure may hurt the other players, like increased marketing expenditure will hit the bottom line making stockholders unhappy. So a business should strive to bring a balance between goals of different stakeholders in the business, which is possible by managing and linking work processes. Companies are focusing more on managing the core business processes more efficiently which includes new product development and introduction, customer acquisition and retention and managing the order to purchase cycles. These core business processes should be aligned to the organizations. In the public sector the definition of customer satisfaction is often linked to both the personal interaction with the service provider and the outcomes experienced by services users.

PROFILE OF FERTILIZER INDUSTRY

India is the third largest manufacturer of nitrogenous and phosphatic fertilizers in the world. The Indian fertilizer industry provides a vital input for agriculture ensuring self reliance in food grain production and food security of the nation. Growth and development of fertilizer industry is playing an important role in the growth of the economy as a whole. Fertilizer is generally defined as any material, organic or inorganic, natural or synthetic, which supplies one or more of the chemicals required for the plant growth. Sixteen elements are identified as essential elements for the plant growth, of which nine are required in macro quantities and seven in micro quantities. Of the 16 elements, carbon, oxygen and hydrogen are supplies by air and water and are, therefore, not treated as nutrients by the fertilizer industry. The main aim of the industry is to provide the primary and secondary nutrients which are required in macro quantities. Although the components of finished fertilizer products are relatively simple chemicals, highly developed manufacturing technologies are employed in the production of fertilizers, and the production plants are capital intensive. The production process varies in accordance with the nutrients produced. Quality control during production focuses on the declared nutrient content of the products and, in case of solid fertilizers, on physical properties. Chemical fertilizers are divided into three groups of Nutrient elements. They are Nitrogen, Phosphorous and Potassium. The significant challenge being faced by the Indian fertilizer industry is the volatility of the prices of feed stock and raw materials and limited availability in international market. The cost of feed stock and raw material constitute a large part of the total cost of production of fertilizers. The Government has played and continued to play an important role in ensuring the availability of feed stock and raw materials at a reasonable price

INTERNATIONAL SCENARIO
The use of manure and compost is probably as agriculture itself and many other materials such as ground bones, wood ash from burning the fallen trees. Dried blood and fish were employed long before the chemistry of soil and crops was understood. The disappearance of frontiers combined with improvements in the technology of fertilizer manufacture and more effective transportation led to a growing role of fertilizers for producing the needed food and fiber. World's leading fertilizer producers are Russia and United states. Other leading producers include China, Canada, France and India. The fertilizer industry in United States is organized into separate segments for producing and marketing Nitrogen, Phosphate or Potash intermediates and products. Industry in the European Union is governed by a wide number of manufacturing regulations. Regulations pertaining to the fertilizer industry cover the health and safety of employees and general public, conditions for the safe storage and transportation of manufactured fertilizer material and intermediates, limits on emissions to the atmosphere and water [fresh and marine], limits on noise levels, and the treatment and disposal of waste products resulting from the production of fertilizer or fertilizer intermediates. All fertilizer manufactures in the European Union strive to minimize the environmental impact of their manufacturing processes, both by improving the efficiency of those processes and by abating emissions.

NATIONAL SCENARIO
The Indian fertilizer industry has helped in the growth of the Indian economy. The fertilizer sector by enhancing the agricultural productivity has in turn resulted in providing major support to the farmers who are primarily dependent on agriculture. Fertilizer has also played a pivotal role in Indians food security. The Industry had a very humble beginning in 1906, when the first manufacturing unit of Single Super phosphate [SSP] was set up in Ranipet near Chennai with an annual capacity of 6000 MT.

The Fertilizers and Chemicals Travancore of India Ltd.[FACT] at Cochin in Kerala and the Fertilizer Corporation of India [FCI] in Sindri in Bihar [now Jharkhand]were the first large sized fertilizer plants set up in forties and fifties with a view to establish an industrial base to achieve self-sufficiency in food grains. Subsequently, green revolution in late sixties gave an impetus to the growth of Fertilizer industry in India. The seventies and eighties then witnessed significant additions to the fertilizer production capacity. The fertilizer industry in India consists of three major players- the Government owned Public undertakings, Co-operative Societies like IFFCO, KRIBHCO and units from Private sector. There are about 33 major producers producing N and NP/NPK fertilizers in the country at present. The fertilizer industry of India had made constructive use of the fertilizer subsidy provided by the government of India to ensure that the country achieved reasonable selfsufficiency in food grain production. The fertilizer industry has organized itself through Fertilizer Association of India [FAI] to coordinate with the Government of India to achieve the macro- economic objectives related to agricultural sector and to provide other services. The problem of Industry are the seasonal demand for its product, large working capital requirements, long credit period enjoyed by the buyer and the constant clamor of environmentalist lobby for slashing the use of chemical pesticides and fertilizers. Indian agriculture has witnessed a low rate of growth of around 1.5% in recent years. Low and unbalanced use of fertilizer could be the major cause for this. Adoption of new and improved technology and development and utilization of alternate and cheaper sources of feedstock coupled with education and awareness creation among farmers on balanced use of fertilizers are essential to correct the situation. Fertilizer Industry in India is almost solely dependent on imported raw materials like Rock Phosphate and Sulphur and intermediate products like Phosphate and complex fertilizers. This overdependence and high volatility of prices of feed stock are major issues confronting the industry.

STATE SCENARIO
Kerala has high degree of land use. The states agricultural productivity is decreasing year by year. The production and cultivation of rice is decreasing and the farmers are attached to commercial crops like rubber and coconut. Due to decrease in the cultivation of rice, the consumption of nitrate and potash has come down. In the per hectare consumption of fertilizers among different states in India, the position of Kerala is one of the low ranking states

COMPANY PROFILE
The birth of FACT emerged out of a crisis situation that guided the enlightened perception of a far-sighted visionary. It is a tale of initiative, enterprise, innovation and adventure,

unheard in the annuals of industrial developments in India. It was conceived by the foresighted statesman and administrated, Sir C.P. Ramaswamy Iyer, the Divan of Travancore (Kerala in older days was known as Travancore). THE FERTILIZERS AND CHEMICAL TRAVANCORE LIMITED popularly known as FACT, was indeed a revolution when it was established as the first large scale fertilizer factory in the country. Since then it has played a major role in creating fertilizer consciousness among our farmers, and giving a positive direction to the Modernization of agriculture in India. And that, of course is an interesting story-a Story of never ending challenges and constructive response. During the 2nd World War, there was an acute storage in the supply of food all over the world. The 1940s were a time of critical food storage in our country. The traditional approach to cultivation was not of much help in finding a solution to this problem. Hence, the search for a long term solution led to the introduction of fertilizer in our agricultural scenario. And when it came, it did through the vision of Dr. C.P. Ramaswamy Iyer, who mooted e idea of increasing food production by the application

of fertilizer as a long term solution to food problem. To give concrete shape to his idea, he sought the help of Seshayee Brothers, one of the most popular industrialists at that time for making a fertilizers company. And Indias first large scale fertilizer plant was set up in 1944 at Udyogamandal on the banks of the river Periyar in Eloor panchayath in the Kerala state. Shri N. Gopalaswami was appointed as the first chairman of FACT. The new venture of course had to go through many teething troubles. For instance, the raw material necessary for the production of ammonium salts were not available in the state. But this deficiency was overcome by adopting a revolutionary method known as the FIREWOOD GASIFICATION PROCESS. However, initial difficulties notwithstanding, the plant at Udyogamandal went into commercial production in 1947, with the slated capacity to manufacture 50,000 tonnes of Ammonium Sulphate(10,000 tonnes of N). This was followed by the production of SUPERPHOSPHATE in a new plant with a capacity of 44,000 plants. A sulphuric acid plant of 75 tonnes per day also installed which was considered large going standard at that time. Meanwhile the inner dynamics of FACT was finding another expression in the formation of new unit with the help of the state Government and Methur Chemical & Industrial Corporation Ltd. For the production of caustic soda which later become todays Travancore-Cochin Chemical Ltd., a Kerala Government undertaking. This indeed was a big leap forward as it replaced all the imports of that product, saving a considerable amount of foreign exchange. FACT was the first to use it by-product, chlorine, as hydrochloric acid to produce Ammonium Chloride. These by-products produced by FACT paved the way for setting up of other industrial units around the FACT complex viz. Hindustan Insecticide Ltd., Indian Rare Earth Ltd., etc. In the late 50s, the Udyogamandal Division launched its first expansion with an outlay of Rs.3 crores. Highlights of the period were the installation of two plants to produced Phosphoric Acid & Ammonium Phosphate. The second stage of expansion involving

Rs. 2 crores saw the replacement of the Firewood Gasification Process and the Electrolytic Process by the Texaco Oil Gasification Process for which a new plant was set up. FACT became a Kerala State Public Sector Enterprise on 15th August 1960. On 21st November 1962, the Government of India became the major shareholder. The 2nd stage of expansion of FACT was completed in 1962. The third stage of expansion of FACT was completed in 1965 with setting upon a new Ammonium Sulphate Plant. FACT has been a pace-setter in marketing evolving a continuous and comprehensive package of effective communication with farmers and promotional programmes to increase the fertilizer consciousness among our farmers. In fact, FACT was the first fertilizer manufacturer in India to introduce the village adoption concepts since 1968 to improve agricultural productivity and enhance the overall socio-economic status of farmers. FACT has a well organized marketing network, capable of distribution over a million tones of fertilizers. With the licensing of Cochin Division in 1966 FACT further expanded and by 1976 the production of sulphuric acid, phosphoric acid and Urea was started. In 1979 production of NPK was commercialized.

VISION & MISSION OF THE COMPANY

VISION To be a market leader in fertilizer, petrochemical and a significant player in all other business including engineering /technical service providing maximum customer satisfaction,& reasonable return to shareholders adhering to business ethics & professionalism & adequate concern for community & environment MISSION To function as a dependable & globally competitive producer of fertilizer & other products & to develop self reliance in the field of engineering, & technology especially in the field of fertilizers, chemicals, petrochemical, & oil & gas industries.

OBJECTIVES OF THE COMPANY

a. To produce & market fertilizers & Caprolactum& other products efficiently and economically besides achieving reasonable & consistent growth. b. To effectively manage the resources & assets of the company to ensure a reasonable return on investment c. To focus on cost reduction & technology up gradation in order to become competitive in its line of business d. To invest in new business lines, where profit can be made on a sustainable basis over the long term e. To constantly innovate & develop new products & services to satisfy customer requirement f. To provide services to the farming community by organizing technical training, soil testing and other productivity improvement services in agriculture.

DIVISIONS OF COMPANY
I. UDYOGAMANDAL DIVISION

FACTs one of oldest plant which started production of Ammonium sulphate using firewood gasification process in 1947. Later it has gone through expansion process with modern technology. Today it has an installed capacity of 76050 tonnes of N & 29700 tonnes of P205. Apart from fertilizers like Ammonium Sulphate & Ammonium Phosphate sulphate, it produces chemicals as intermediate products like sulphuric acid, phosphoric acid, Sulphur dioxide etc. Ammonium Sulphate liquor obtained as a byproduct from the Caprolactum plant is converted as a useful fertilizer product in a new Ammonium sulphate plant 2,25000 TPA capacity put up in October1990, at a cost of Rs35crores.

As a replacement to the existing high energy consuming old Ammonia plants at Udyogamandal, a new 900 TPD capacity Ammonia plant at a cost of Rs 642crores was put up in March1998. FACT Udyogamandal plants received ISO 14001 certification in March 2004 conforming to the Environmental Management System standard

II.

PETROCHEMICAL DIVISION

This division of FACT manufactures Caprolactum, the raw material for Nylon-6, which is extensively used for the production of tyre -cord, textile filament yarn & engineering plastics. FACT, one of the only two manufacturers of this product in India has the capacity to produce 50000 MT of Caprolactum in a year. FACTs Caprolactum, exported to various countries including the USA, not only earns precious foreign exchange but also appreciation on account of its excellent quality. The Caprolactum plant also produces 225000 MT of Ammonium Sulphate/year as co-product & small quantities of Soda Ash & Nitric Acid, as by-product The plants has been certified ISO 9001: 2002 since April 1996 by RWTUV-Germany & ISO14001 since December 1999 by DNV, Netherlands

III.

COCHIN DIVISION

FACT Cochin Division was set up in the 1970's at Ambalamedu, 30 km from Udyogamandal and adjacent to the Cochin Refineries. Phase-I of the division saw the setting up of an integrated Ammonia urea complex utilizing Indian Engineering skills. A large scale complex fertilizer plant of 485,000 TPA was set up as phase-II. Sulphuric acid and Phosphoric acid plant of economy scale were also set up.

IV.

FACT ENGINEERING & DESIGN ORGANISATION

For utilizing the considerable indigenous plant building expertise accumulated by FACT in its process of nurturing the nascent chemical fertilizer industry, FACT Engineering & Design Organization was established. It entered into many industrial Sectors like petrochemicals, refining, pharmaceuticals, hydrometallurgy etc as well as Petroleum storage, environmental engineering, offsite facilities etc. The major work of FEDO is project execution on consultancy and turnkey basis, design and engineering, hardware procurement and construction with practiced ease .FEDO is an ISO 9001certified project consultancy organization FEDOs multi disciplinary project functions are carried out to ensure world class standards in process economics & plant performance through various departments. The overall project management & construction management are the responsibilities of Project & construction groups. FACT ENGINEERING WORKS FEW, the Fabrication and Engineering Division of FACT was established in the year 1966.It is one of the leading contracting firms in the country offering services through the manufacturing wing with modern fabrication and testing facilities. Present range of equipments fabricated by FEW includes items like Heat Exchangers in Carbon Steel, Alloy Steel, Penstock Pipes, and Towers etc. Since 2006 FEW has also been producing ship building components. Project wing of FEW undertakes design engineering, fabrication and erection of plant piping etc. It can also handle the design, fabrication & erection of large size Storage Tanks including Ammonia Storage Tanks, Vessels etc. The quality system of Manufacturing Wing as well as Project Wing has been certified to ISO 9001 since 1998.

VI.

MARKETING DIVISION

When FACT became the first large scale producer of chemical fertilizer in India the full responsibility for selling the fertilizer concept to the tradition bound farmers also rested on the company. The farmers were reluctant to try the new product. Then FACT understood the need to persuade the farmers to buy the product with necessary instructions. Then FACT under took the responsibilities of fertilizer promotion program with a well structured dealer network. They also

used multimedia publicity campaign like the press, cinema, the outdoor and other forms of printed word, also under took demonstration, farming on farmers own plots, where the farmers in neighborhood could come and watch for them-selves the activities and the transformation taking place right before their eyes. THE FERTILIZER FESTIVAL was a novel idea introduced by FACT in fertilizer promotion. This was a real media in which there were opportunities for farmer education programmes, entertainments, recreation and exchange of ideas.. THE VILLAGE ADOPTION SCHEME was another new concept developed by FACT for the first time in the country. A whole village was adopted and a scheme to improve agricultural productivity and the overall socio- economic status of the village was launched. As a result. FACT has so far adopted more than 100 villages in the states of Kerala, Tamil Nadu, Karnataka and Andhra Pradesh. FACT AGRICULTURAL STUDY CENTRE (FACT Krishi Vigyan Kendra) was a new experiment in agricultural extension work. These Kendras operated in villages on a rotating basis and trained farmers in modern and scientific methods of cultivation. Regular fortnightly classes were arranged by experts in the concerned fields for a period of six months. FACT marketing network is spread over the states of Kerala, Tamil Nadu, Pondicherry, and Karnataka & Andhra Pradesh and has around 100 field storage points and 7000 retail selling points in these states. The total sale of fertilizers during 2009- 2010 was 10.45 Lakh Mts.

CORPORATE RESPONSIBILITY
Village Adoption Programme
Under the village adoption Programme, 10 progressive farmers having at least one acre of land, in a village is identified. The soils of the plots are analyzed for major, secondary and micro nutrients. Based on the soil test results, soil and crop specific nutrients as per the respective State Agricultural University recommendations in the form of a proprietary fertilizer mixture developed by FACT are given to the farmers. In addition, micronutrients specified by the

University were supplied free of cost. FACT has conducted 7 such Village Adoption Programmes in Kerala, Tamil Nadu, Andhra Pradesh and Karnataka.

Farmer Training Programme

The farmer training programme is intended to impart training to impart training to limited group of 20-25 farmers on balanced use of fertilizers based on soil test results. The objectives of this programme are to create awareness on soil sampling methodology and use of balanced fertilizer based on soil test results. FACT has conducted 13 two day Farmer Training Programmes in all the four southern States.

Field Demonstration
The Field Demonstration Programme aims to demonstrate the effectiveness of correct fertilizer application at farmer level. For this one acre of plot of the farmer is divided into 2 equal cents plots-control plot and treatment plot. In control plot, farmers practice is followed. In treated plot, Agricultural University recommended FACTMIX is given based on soil test results. The yield difference between treated plot and control plot are compared. FACT has conducted 9 Field demonstrations during the year 2010-11. During the year, a farmers application was explained to the farmers.

Drinking Water supply to residents of Eloor Municipality

FACT is supplying drinking water for more than 3000 households of Eloor Municipality.

Official Language
FACT continued to give top priority for the implementation of the provisions of the Official Language act and Rules and the related instructions given by Government of India. Official Language Implementation Committee meetings are held regularly under the Chairmanship of Chairman and Managing Director and the progress is reviewed in the use of Rajabhasha. Company is providing incentives for encouraging employees who are doing excellent work in Hindi. Parliamentary Committee on Official Language has visited FACT Head

Office in June 2010 and at Madurai Regional Office in January 2011. During the year 20102011, FACT has conducted Hindi workshops, spoken Hindi classes, Rajabhasha Orientation Programme and Rajabhasha seminar. In addition to this, the company has conducted various competitions for spouse and children of FACT employees, students of neighboring schools, and students of the schools in Ernakulum Revenue District and for the employees of other Public Sector Undertakings.

Pollution Control Activities

Production units of FACT are certified for ISO 14001, which always give top most priority to ensure clean air and better living environment to the inhabitants around the factory. The treatment plants and emission control facilities are kept in operation along the with the parent plants throughout the year and treated liquid effluents and gases emissions discharged from plants confirmed to the standards prescribed by the Kerala State Pollution Control Board. FACT has three computerized ambient air quality monitoring stations to monitor the quality monitoring stations to monitor the quality of the air around the factory and to ensure clean environment in the locality. The company is maintaining all effluent parameters within the limits as specified by the Statutory Authorities. Part of the treated effluent generated is used for dilution purpose in the Effluent Treatment Plant and for irrigation in Plant area. During the year saplings were planted at company premises as a measure of Green-belt development. During the year 2010-11, Udyogamandal Division secured Third Place among large scale industries in making substantial and sustained effort in Pollution Control, from Kerala State Pollution Control Board.

Short term strategies/projects

In order to improve the efficiency of operation and profitability, FACT has undertaken certain short term projects. The following are the main Short-term Projects being implemented by FACT to improve the operational efficiency and profitability.

Feed Stock conversion of Ammonia Plant to LNG

LNG is expected to be available at Kochi by end of 2012. It is proposed to carry out modifications in the Ammonia Plant for using cheaper LNG as feed stock and fuel for Ammonia manufacture as soon as it is available. The project will bring an energy saving in the Ammonia. The total cost of the project is estimated as Rs 31.57 Crore. The payback period of this project on account of energy savings alone is just six months.

Conversion of fuel for the boilers to LNG

It is also proposed to carry out modification in the 5 boilers at Udyogamandal Complex to use LNG. The total cost of the revenue is expected to Rs. 45 Crore to be implemented in 2 phases.

Automation of Bagging & Wagon Loading System at Cochin Division

The product handling and dispatch facilities at Cochin division-NP plant is manual. The scheme includes automation of bagging and loading operations with high capacity automated bagging machines and wagon and truck loading machines, at an estimated total cost of Rs 24 Crore.

Sulphuric acid Storage Facility at Willington Island

The company has decided to set up its own Sulphuric acid storage facility at Willington Island to enable receipt of Bulk Acid shipments of above 5000MT. It is proposed to set up 2 storages of 8200 MT each. The total cost of this project is Rs 12 Crore. The benefits of this project are the availability of Bulk quantities of Sulphuric Acid which will facilitate increasing captive production of phosphoric acid.

 Automation of mixing centre at Cochin Division

FACT is planning to set up a granulated fertilizer mixing plant at Cochin Division, Ambalamedu. The project is proposed to be executed on a Lump sum Tumkey (LSTK) mode with the Project Management Contract (PMC) handled by FEDO.

Revamp of Phosphoric Acid Plant at Cochin division

One of the major problems being faced by the company to sustain higher levels of production at present is the non availability of sufficient quantities of imported phosphoric acid. In order to meet the challenge posed by this problem, FACT intends to revamp its phosphoric acid plant at Cochin Division to increase the capacity from 360 Tons per day to 500 tons per day. The revamp would meet the companys requirements for producing 2500 MT of NP complex fertilizer on a daily basis.

. Production Marketing of SSP

Taking cue from the increasing prices of DAP, the Government of India has been promoting the production and marketing of SSP in the country. FACT intends to set up a 500 Tons per day SSP plant. The estimated cost of this venture is approximately Rs 66 crore. The DPR is being prepared by FEDO and the funding avenues including JV participation are being examined. FACT has also plans to enter into the area of SSP marketing from existing SSP plants in the southern region through a tie-up with the owner of the existing plants.

long term strategies/projects

. New Urea Plant Udyogamandal
FACT has a proposal for setting up a new Urea Plant of capacity 1500 MT per day at Udyogamandal utilising the CO2 being vented from the Ammonia Plant at a project cost of Rs 940 Crore. A pre Feasibility report has been prepared by FACT Engineering And Design Organization (FEDO). It is proposed to prepare a DPR based data collected from the Bids received,

A New 1000TPD NP Plant

FACT is considering to set up an additional NP plant of 1000 TPD capacity at Cochin Division along with the revamp of Willington Island Facilities for handling increased volumes of Rawmaterials utilizing modern equipments to increase the discharge rates from shipments. The estimated project cost is Rs 283 Crore (including Port improvement schemes) distributed over 3 years. OUTLOOK FOR THE FUTURE FACT has submitted a Financial Restructuring proposal to the Government of India, requesting assistance to tide over the interest burden and for sustainable growth of the company in the long run. On implementation of the financial restructuring package and new projects for expansion and, modernization, FACT is expected to sustain profitability in the coming years. The profitability will further improve once FACT is able to switch over from Naphtha to LNG /NG as feed stock which is expected by 2012-13.

COMPETITORS OF FACT
The major competitors of fact are the following:

SPIC Urea, Di ammonium phosphate and

Short for Southern Petrol Industrial Chemicals.

intermediaries. Aim to be globally competitive and JV for hybrid seeds, JVS for urea and phosphoric acid abroad.

MFL

Madras fertilizer LTD (products NPK 17:17:17 and variants Vijay Urea, Bio-fertilizers, Agrochemicals) Plans to switch over to LNG from naphtha and import ammonia.

NFL

Nagarjuna Fertilizer LTD (product-urea)

MFL

Mangalore Fertilizer LTD. (products urea, complex fertilizers)

RCF

Rastria Chemicals Fertilizers LTD. (Products urea, DAP, MOP, Complex Fertilizer)

IFFCO

Indian Farmers Fertilizers Co-operative (Product- Urea, Ammonium Phosphate and Complex Fertilizers

Chambal Fertilizers and Chemicals-Urea KRIBCO

Produces urea only, participating in Indo Oman and Indo Iran projects for cheaper gas.

Environmental objectives (ems of fact)

I. II. III. IV. V. VI. Reduction of air pollution from ammonium phosphate plant Improving quality of effluents on a continuous basis Minimize dust pollution in Sulphur handling and prevention of its spillage to river Minimize and recycle effluents from phosphate plant Zero effluent discharge from Sulphuric acid plant Reduce treated effluent to river

Environmental policy
Continual improvement in its environmental performance and prevention in pollution Compliance with environmental rules, regulations and other requirements applicable Conservation of resources and waste minimization

Training for improved environmental management

TABLE 3.1 BRIEF DESCRIPTION ABOUT FACT

Name Slogan Established in the year Location Promoters

Fertilizers And Chemicals Travancore Ltd (FACT) Pioneers in Progress 1944

Udyogamandal, Cochin, Kerala Government of India

Production units Udyogamandal & Ambalamedu of Fertilizers Fabrication Division FEW, Palluruthy, Cochin

Engineering and Udyogamandal Consultancy Division FEDO Marketing Division Head Office Area Offices Udyogamandal

Udyogamandal, Chennai, Bangalore and Hyderabad

Regional Offices Udyogamandal, Palakkad, Coimbatore, Madurai, Trichy, Chennai, Bangalore, Belgaum, Hassan, Hyderabad, Hospet, Kakinada, Nellore and Vijayawada. Marketing Territory South India: Kerala, TamilNadu, Karnataka, Andhra Pradesh

PRODUCTS
FACT manufactures straight fertilizers, complex fertilizer, fertilizer mixtures and chemicals.

STRAIGHT FERTILIZERS
AMMONIUM SULPHATE: Ammonium sulphate is a nitrogenous fertilizers containing 20.6% nitrogen, entirely in ammonical form. It has excellent physical properties-non hygroscopic, crystalline, and free flowing. it is ideal as a straight nitrogenous fertilizer and also as an ingredient in fertilizer mixtures . it is the most widely preferred nitrogenous fertilizer for top dressing on all crops. Another unique advantage is that it contains 24% sulphur, an important secondary nutrient. b. COMPLEX FERTILIZERS: FACTAMFOS 20-20-0-13 (Ammonium phosphate sulphate) - It is a chemical blend of 40 parts of ammonium phosphate and 60 parts of ammonium sulphate. It contains 20% N and 20% P2O5. The entire N is in ammonical form and P is completely water soluble. In addition, Factamfos contains 13% sulphur, a secondary plant nutrient which is now attaining great importance in the agricultural scene. Factamfos 20-20-0-13, with the granular form and non-hygroscopic and free flowing nature, has excellent physical properties. It is ideal for application on all soils and all crops. It can also be used for foliar application. c. FACT MIX FACT prepares on a very large scale all the standard NPK mixtures under the brand name FACT MIX for different crops for Kerala as stipulated by the Department of Agriculture. In addition, FACT prepares special tailor made fertilizer mixtures of any required grade for plantation crops like coffee, tea, rubber etc. FACT mixtures are superior in quality with the presence of ammonia cal nitrogen, water soluble Phosphorous, and other major nutrients like sulphur, calcium etc.

d. CAPROLACTAM: It is the raw material for Nylon-6. The product quality of FACT Caprolactam is among the best available in the world. e. GYPSUM: A by-product of phosphoric acid, gypsum (95% by weight CaSO4) is an ingredient for manufacture of Portland cement, Plaster of Paris, Gypcrete, Gypboard, etc., and is also used as inert filler in pharmaceuticals, paper, paints, insecticidal dusts, etc. It also has widespread usage as soil ameliorant with its liming properties. It is a rich and cost effective source of Sulphur and Calcium with 16% Sulphur and 22% Calcium. FACT is marketing bagged Gypsum in brand name FACT Gypsum in all 4 southern states as a soil conditioner with fertilizing properties. f. IMPORTED FERTILIZERS FACT imports Urea and Potash from Gulf countries and Russia for consumption in all 4 southern states as per requirement. Urea with 46% Nitrogen in the granular/prilled form and Potash with 60% K2O serves the nutritional requirement in the four southern areas. g. BIO FERTILIZERS Three types of bio fertilizers namely Azospirillum, Phosphobacter and Rhizobium are produced and marketed as BIO FACT. h. FACT ORGANIC FACT is also marketing organic manure produced from city compost, in brand name FACT ORGANIC.

i. ZINCATED FACTAMFOS This special product containing 0.3% Zinc in FACTAMFOS has been launched to address the widespread deficiency of Zinc in most soils of South India. j. ZINCATED GYPSUM This soil amendment and ameliorant contains 2% Zinc in addition to 16% Sulphur and 22% calcium for rectifying alkaline soils and improving soil fertility and physical properties.

Topic selection
About three fourth of making population of India is engaged in cultivation. Indias 60% populations are farmers so its an apt study to know the farmers opinion about the fact fertilizers. This particular study which the conducted was mainly to know the farmers attitude and opinion and to know whether they are satisfied with the fact fertilizers, this study was conducted in Ernakulum district where was no of who take their occupation as agriculture. The main objective of the study were to know the customer preferences in the selection of fertilizers ,to find out the satisfaction level from the use of fact fertilizers to see the farmers perception on farming to identify the potential competitors of fact products .

Significance of study
The need of the study is to identify the factors affecting (price, quality, quantity, availability complaint, redressal service) of the customer. The project study also helps to identify the customer satisfaction of FACT fertilizers in Ernakulam and to know problems faced by the farmers.

Scope of the study This also helps to know the reactions of customers towards the product.
This also helps to identify the movement of the product in the market This study will help the organization to know the farmers satisfaction The study also helps to determine the FACT fertilizers having good quality

Definition of the problem

The topic of the project study is customer satisfaction of FACT fertilizers in erankulam district.

STATEMENT OF THE PROBLEM

The farmer who is the customer here is also unique. They suffer from a combination of economic educational and social backwardness sportingly low standard of living; extremely poor purchasing power and large side illiteracy are striking features of majority fertilizer consumer. Fertilizer is also a unique product it is quite different from most of the other product s in these consumer goods as well as producer goods categories..Fertilizer by itself cannot and does not bring nearest return to its user. It is just one among the several items which acting in concert contributes to the increased forming returns. Fertilizers are a highly seasonal product .it is also a higher cost, high volume product. The cost of a unit quantity of fertilizer has always been sizable and the farmers had to use it in relatively large volume. Agriculture in itself is also a unique venture .There is fundamental difference between agriculture and industry. In agriculture operations it is very difficult to establish a measurable relationship between the cost of inputs used and return derived from it. A variety of uncertainties always envelope agricultural operation...

OBJECTIVE
There are primary and secondary objectives

Primary objectives
To find out the farmers satisfaction with FACT fertilizers in

eranakulam

Secondary objectives

To identify the FACT fertilizers having good quality To analyze the relationship between price and farmers satisfaction To analyze the relationship between higher yield and farmer satisfaction

Methodology
The methodology used to collect the information from farmers through a well structured 20 questions particularly on the mentioned category. It includes primary and secondary data collection, the primary data collected from farmers through Questionnaire. The questionnaire comprised of 20 questions regarding the customer satisfaction of FACT fertilizers in eranakulam district. The secondary data collected from company web sites, text books ,etc

Universe
Universe is the total population available for the study.

Sampling
This study was conducted among the farmers of eranakulam district.

Tools of the study

The main tool used for the study is Questionnaire and it includes 20 questions relating to the subject customer satisfaction of FACT fertilizers in eranakulam district. A structured questionnaire is used for the study.

Limitations of the study

As some information is of secret in nature, they are not revealed by the company management
Respondents opinion is susceptible to change

Size of the sample was very little in number Interaction with company professional was limited due to their busy schedule

Review of literature
Customer satisfaction can be said to be in existence when the expectations of the customers are met or surpassed by the services or products of a business organization. Customer 14 satisfaction and customer services are two different things entirely; customer service is defined by the business organization while customer satisfaction is defined by the customers. Therefore, a business organization that wants to satisfy customers could define its services according to the wants or needs of the customers (Scott Dru, 2000, 47). Quality customer

service, which is determined by the customers, should be seen as a means to an end of achieving customer satisfaction and retention. Any company that wants to achieve customer satisfaction must take real cognizant of the quality they offer to their customers in terms of services or products. . In todays world of doing business, there have been various topics that have been dominating but majority have to do with satisfying the customers of business organizations. It is a confirmed reality that a satisfied customer will give more value, often and over a long period of time if not lifetime. In other words, an unsatisfied customer will be angry, find a way of doing business with another business organization in order to derive satisfaction, thereby causing a loss in the customer lifetime value of the angry customer by the business organization that does not satisfy the customer (Richard Gerson 1993, 5-6).

The importance of customer satisfaction

The significance of customer satisfaction is enormous in the business world, it has so many advantages and few are shown below:

Customer loyalty and Retention:

The major importance of satisfying customers is to make them addictive to their products and services and retain them for their life time. In every industry or market there are numerous competitors or business organizations producing goods and services to succeed. Therefore, business organizations have to ensure that they put their

strategy in the right order to satisfy their customers in order to differentiate their products and services.

Increase in sales: When a business organization satisfies its customers, the customers will be
encouraged to buy more and often. Quality products and services defined by the customers needs and wants have to be provided at all time to ensure this sales increase. In order to ensure customer satisfaction, business organizations have to define and redefine their corporate goals and objectives in order to make all that is involved in the organization to work towards this cause.

Increase in Profits: So far the business organization has put every arms of the business
together towards satisfying the customer, then the operations and delivery will be effective, efficient and customized for the customers taste as known, offering the best quality services and products as expected by customer will result into high cost savings and increase in profits .

Co products Reduction: The possible costs that may be attached to the production and
delivery of products and services will be reduced since the aim is to satisfy the customers. Quality that meets up with the customers expectations will lead to low time cost, reparation costs, operational costs, return costs and costs of acquiring new or lost customers

Increase in the market share: Customers all around the world always want to get value for
their money and above all be satisfied with the products offered to them. As a result of this, a business organization that majors on satisfying customers will have more customers, values and loyalty in the market it operates

Price leadership: Huge quality of goods and services that are provided as expected by the

customers will cause no trouble when a slight increase in price is done in order to increase profitability. All customers want is to get value for their money and then they are satisfied. As a result of this, a business organization that focuses on customer satisfaction may easily set the pace in price setting in his market

Improved Goodwill: Goodwill is the positive reputation, which may be as a result of good
relationship with the customers or good ethical relationships with the public in general, of a business organization over a period of time, this reputation is valued as an asset and it can increase the worth of the business organization. As a result of continuous customer satisfaction by a particular business organization, their goodwill will continue to improve because majority or all their customers are happy to do business with them.

Marketing and advertising: When existing customers that do business with a business
organization are satisfied, they are going to refer the business to their friends, family and relatives so that they can also enjoy the good customer experience. Therefore, the marketing and advertising projects that may be needed to embark on may be minimal (Richard Gerson 1993, 11).

Long term success and survival: When a business organization set it as its goal to satisfy
its numerous customers, majority of the machineries in the business organization will be effective. They will also be successful because the major reason why their existence is attained and their long term survival will not be shaken

Mechanisms to satisfying customers

There are processes or guidelines that business organizations need to follow when they are thinking of embarking on satisfying customers. Business organizations have to follow all these guidelines or plans that they will use to attain their goals in terms of satisfying and retention of their customers. As highlighted in the Graph1, customer satisfaction is related to customer loyalty and this is also related to profits, Therefore, business organizations need to have a firm and efficiently planned mechanism towards delivering satisfaction to their customers. These mechanisms are managing for customer satisfaction, clearing the barriers, building the foundation, using the tools and managing customer satisfaction. All these arms of the mechanisms will be analyzed and explained in the subsequent chapters (Scott Dru, 2000, 3).

Managing for customer satisfaction

A business organization that is traditionally into the market for the major traditional business reasons is different from a business organization that wants to satisfy customers. Therefore, before a business organization starts setting policies and programs on how they will satisfy their customers, they need to re-structure their organizational form or structure and insert satisfying customers into their goals and visions as well (Roberts-Phelps Graham,2001, 82). The major change that needs to be done in a business that wants to satisfy customers is to demolish their traditional organizational chart and ritual burning. This is needed because it is hard for customers to go through the hierarchical structure of organization in order to derive satisfaction and time wastage is another major reason. In addition, managements or managers that want to satisfy their customers have to be communicators rather than dictating to their human resources. They should also endeavor to facilitate policies rather than determining

policies, they need to treat their human resources in a motivating manner and encourage them so that they could offer their best abilities for satisfying customers of the business organization.

Research methodology
The term research refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solutions towards the concerned problem or in certain generalizations for some theoretical formulation. Research methodology is a systematic way to solve the research problem.

Research Design
Research Design is a conceptual structure or it constitutes the blue print for the collection, measurement and analysis of data. Research design is a frame work or blue print for conducting the marketing research project. A research design serves as bridges to reduce the gap between the researches have previously made some studies. A review on available literature will bring out information on them.

Data Collection
Data collection methods are mainly two types Primary data collection and Secondary Data collection, Questionnaire was the main tool used for collecting data. Secondary data collected through company references, web sites & journals.

Tools used for analysis

The analysis of data is done through simple percentage method. Tables, bar diagrams and pie diagrams are the tools mainly used for the presentation .

Sample size

The number of sample size is 100 respondents from different districts.

Sampling technique
The selection of the respondent was using the technique of Convenience sampling. Questionnaire was the main tool used for communication with consumers.