Internship Report
Submitted By
Shahzad Javed
Roll No.
M06MBA033
Submission Date
22/09/2008
Hailey College of Banking & Finance
Executive Summery
Allahdin is a rapidly growing Group of Companies. It started its business in 1994. The main focus of activities encompasses areas of agrochemicals, seeds & fertilizers. The group is one of the biggest agrochemical products manufacturer and seller in the country. Lyallpur Chemicals & Fertilizers (Private) Limited was incorporated on June 04, 1958 as a public limited company under the companies act, 1913. Since incorporation the company was a subsidiary of National Fertilizer Corporation of Pakistan (Private) Limited.
In February 2007 it has been taken over by Al-hamd Chemicals (Private) Limited through privatization commission.
The company is principally engaged in the business of manufacturing Single Super Phosphate (SSP), Zink Sulphate and Sulphuric Acid.
The manufacturing unit is situated at Lahore Road, Jaranwala and registered office of the company is situated at Suit number 18, 3rd Floor, Shane Arcade, New Garden Town,
Lahore.
The status of the company has been changed from non listed “Public Limited” to “Private Limited” in this financial year 2007-08.
The turnover for the year ending 30th June 2008 is Rs. 845 million (including Subsidy of
Production Capacity
Products Rated Plant Capacity
Sulphuric Acid 46,000 M. Tons per annum Single Super Phosphate (P & G)) - 18% P2O5 85,000 M. Tons per annum Zinc Sulphate (21% Zinc) 1,500 M. Tons per annum
Major Suppliers
Rock Phosphate---Imported from Egypt and Jordon (El-Waha For Trade Co).
Sulphur--- Purchased from Pak Arb Refinery (PARKO) and Oil & Gas Development Co
Limited.
Zink Ash---Purchased from International Industries Limited.
Marketing Objectives
• Experience an increase in new customers who are turned into long-term customers.
• Maintain positive, steady growth each month in market development.
• Generate brand equity at the Farmer's Market as well as within the commercial traders market.
Target Market
Their target market is the farmer, who has harvesting area in province Punjab.
Sales Target
2007.8 2008-09
Sales 72,439 Tons 90,000 Tons Advance Booking 68,705 Tons 108,000 Tons
CONTENTS
Particulars Page No.
Group Introduction
………01
Management Philosophy
……… …03
Mission Statement ………04
Vision Statement ……….. 04
Group and its Associates ……… ………..05
Warble Chemicals (Pvt) Limited ………
05
Welcon Chemicals (Pvt) Limited ……….
06
Weal-Ag. Corporation ……….
07
Agri Village International ………
08
Nasco (Pvt) Limited ………
08
Al-Hamd Chemicals (Pvt) Limited ………..
09
Lyallpur Chemicals & Fertilizers (Pvt) Limited ………..
09
Hi-Warble Pharmaceuticals (Pvt) Limited ………
10
Welcon International ………
10
Nasco Industries ………
11
Farm Fertilizers (Pvt) Limited ………..
11
Lyallpur Chemicals & Fertilizers (Private) Limited …….12
Introduction ………12
Management Philosophy ………14
Core Values ………14
Particulars Page No.
Vision Statement ………. 15
Company Information ………..16
Hierarchical Structure ……….19
List of Share Holders ………20
Capital Holdings ……….20
Manufacturing and Trading Products of Company …...…21
Manufacturing Products ………
21
Input Ratios of Manufacturing Products ………
21
Production Capacity ……….
22
Percentage of each manufacturing product in the total production ………..
22
Major Suppliers ………..
22
Trading Products ………23
Productions Process ……….
24
Process Block Diagram Of Sulphuric Acid (H
2so
4) Plant ……….24
Process Block Diagram Of Single Super Phosphate (SSP) Plant .25
Process Block Diagram Of Zinc Sulphate Plant ……….26
Rock Acid Reaction For Manufacturing of SSP …………27
Human Resource Department . . . .………28
Introduction ………28
The Purpose of HRM ……….28
Structure of the Human Resource Department ………….29
Objectives of Human Resource Department ……….30
Organizational Objective ………
30
Personal objective ………
30
Particulars Page No.
Selection Procedure ……….31
Role of HRD in Recruitment Process ………31
Procedure of Joining the Company ……….31
Recruitment Process ……….32
Internal Job Posting ……….32
Self Nomination ………32
Nomination by Employees Supervisor …………33
External Job Posting ……….33
Advertising ……….
33
Employment Agencies ………
33
Casual Applications ……….
34
Leasing ……….
34
The Hiring Procedure ……….34
Call for application ………..
34
Preliminary interview ……….
35
Applications blank ………
35
Check of References ……….
36
Psychological test ……….
36
Intelligence test ……….
36
Mechanical Aptitude test ……….
37
Clerical Aptitude Test ……….
37
Interest Test ………
37
Employment interview ……….
37
Approval by the supervisor ……….
38
Particulars Page No.
Training Needs Assessments ……… 41
Organization analysis ………
41
Operation analysis ………
41
Individual Analysis ……….
41
Operative Training ……….41
On the Job Training ...………
41
Off the Job Training ……..
42
Workers Training Program ………..
42
Special Courses ………..
42
Selling and Technical skills training program ……….
43
Evaluating Training Programs …….43
Reaction ………
43
Learning ……….
43
Behavior ……….
44
Results ………
44
Management and Career Development ………44
Evaluation of HRD Performance ……….45
Salary Administration ………..45
Promotions ……….46
Demotions ………..47
Commission and Salaries ………..47
System of Communication ………48
Particulars Page No.
WOT Analysis of HR Department ………..49
Conclusion ……….50
Suggestions
……….50
Sales and Marketing ……….
51
Products
………..51
Situational Analysis ………..52
Market Summary
……….52
Seasonal Variation
………..52
Market Potential
……….53
Marketing Strategy
……….54
Marketing Objectives ……….
54
Financial Objectives ………..54
Target Market
………..54
Positioning
……….54
Marketing Mix
………54
Product
………54
Place ……….55
Promotion ……….55
Price ………55
Sales Forecast ……….56
Sale During 2007-08 ……….57
Sale During 2008-09 ………57
Sales Target ………..57
Sales Incentive ……….59
Particulars Page No.
Controls ………60
SWOT Analysis
………61
Financial Statement Analysis ………..
62
Classification of Accounting Ratios ……….62
Financial Statements ………..66
Analysis of Accounting Ratios ………..68
Purpose of Study
The basic purpose of this report writing is:
• To analyze Lyallpur Chemicals & Fertilizers (Pvt) Limited from financial prospective.
• To know how different operations are carried out in Lyallpur Chemicals & Fertilizers (Pvt) Limited.
• To bridge the gap between theory and practice.
Scope of Study
In a limited time and limited available data I was not able to cover every aspect of the organization. However this report covers inception of Lyallpur Chemicals & Fertilizers (Pvt) Limited, vision and mission statement, different products offered by the company, SWOT analysis of Lyallpur Chemicals & Fertilizers (Pvt) Limited, Problems, Recommendations and in the end conclusion.
Methodology of Study
For completion of this report the fountain head of information and knowledge was
Primary Data
The primary data is collected through following means:
• Discussions with staff
• Through personal observation
Secondary Data
Secondary data is collected through following means:
• Through consulting documents
• Annual reports.
• Internet
• Books
Acknowledgment
I have no words to express my deepest sense of gratitude and thanks to Almighty Allah (The Compassionate & the Merciful) who enabled me to complete this report. I appreciate deep appreciation and gratitude to Lyallpur Chemicals & Fertilizers (Pvt) Limited staff Specially Mr. Ahmad Jamal and other staff for their valuable suggestions and kind cooperation.
I am grateful to the Hailey College of banking and finance & my respected teachers who gave me an opportunity to enhance my capabilities. This was very much helpful for me because, I have learnt a lot by applying theoretical knowledge in practical field.
I am also grateful to all the employees of Lyallpur Chemicals & Fertilizers (Pvt) Limited who guide me. The behavior of all the department supervisors was very good and they gave a lot of time to guide me. At the end, I would like to thank to my parents who always guided, supported & directed me to the right ways that enabled me to reach this stage.
Thanks to all!
Shahzad Javed M06MBA033
Allahdin Group of Companies
Allahdin is a rapidly growing Group of Companies. It started its business in 1994. The main focus of activities encompasses areas of agrochemicals, seeds & fertilizers. The group is one of the biggest agrochemical products manufacturer and seller in the country. They say, “We have played vital role in breaking the monopoly of the multinational giants and have brought down the prices of agrochemicals in the country through indigenous production and competitive selling”.
Allah Din Group of Companies has developed an integrated network of marketing facilities and a team of agricultural graduates across the country, who are expert in the field of latest techniques of agricultural production and provide services to the growers in increasing their yield of various crops. The Group has developed the labs equipped with the latest/modern equipments. The Group has maintained its land farms for practical experience of agricultural production research & development. The results of experience are disseminated to the farmers.
Allah Din Group has now entered into fertilizer manufacturing industry after purchasing Lyallpur Chemicals and Fertilizers (pvt) Limited, from privatization Commission of Pakistan.
Presently with the high level of commitment, hard working and better business strategies Allahdin Group of Companies is the largest importer of pesticides in Pakistan. Allahdin Group of Companies is not only distributing pesticides and fertilizers through their own distribution network but is also supplying a complete range of pesticides and SSP (Single Super Phosphate) fertilizers to the farmer and dealers. Allahdin Group Of Companies as group with strong presence in all pesticide segments seized the opportunity to maintain position as a leader of agricultural business. The prime objective of Allahdin group is to
optimize the technical assistance in a bid to provide the high quality product, prepared at the most modern manufacturing facility.
Allahdin group says, “Our employees pay explicit attention to values, they believe values are not hard like structure rather they are well passionate on compromising and proud to be part of a dynamic team. We grow with people and it draws from life, to redraw life, to meet the challenge of a changing world it challenges everyone to go beyond what they think that they are capable of doing to constantly redefine. The people who work with us don’t just accept future they are helping it to create it. They believe that sow is act and you reaping a habit. People on operational level are not just to implement the strategic plans but they feel and are regarded as a team thus our employees work like a team”. The agro chemical division of Allahdin group of companies handles the imports, manufacturing and sale of about 1/4th share of total business of the country which is
around Rs.2 – 3 billion and this volume is compatible with their competitor M/S Ali Akber Group of Companies. It means that 50% market share is covered by both the biggest groups. The rest 50% is covered by multinational and other companies of the sector.
During next year group plans to expand the business of agro chemicals by 25- 35% both in imports & manufacturing.
Management Philosophy
“We are committed to ensuring the safe and plentiful harvest of tomorrow. A global population grows and society became so industrialize, it demands more food from less land, plants, to meet these changing needs, ALLAHDIN GROUP is dedicated discovering and developing innovative solutions for sustainable agriculture, applying advanced potential through effective crop protection. As we believe in protecting and improving the quality of human life, we are strongly committed to develop and manufacture cost-effective pesticide products.”
Mission Statement
“Our mission is to improve our Group’s self-image & sense of community together with its perception and standing in the community at large with that believe that Agri Village is as different and distinct from competitors and other companies”.
Vision Statement
“
Our vision is to achieve a sustained increase in corporate sector with the interests of our stockholders, Business Partners, Customers, Employees and the whole pesticide sector”.The Group and its Associates
i)- Warble Chemicals (Pvt) Limited
Warble Chemicals (Pvt) Limited is one of the main pesticide company of Allahdin Group which came into existence in 1997 with the high level of commitment, hard working and better business strategies. Warble Chemicals (Pvt) Ltd is now one of the largest importers of pesticides in Pakistan. Warble is not only distributing pesticides through his own distribution network but is also supplying a complete range of pesticides to a number of local companies.
The objectives behind the establishment were to feed small distribution houses in the local market. Through this business, unit objective is to give products to small companies and small multinationals, like ICI, Niche Men etc.
Warble is the first in the pesticide sector to start the formulation facility at Multan (Heart of Cotton Belt) comprises of high tech formulation plant, filling lines and packaging facilities with annual capacity 4 million litters.
Warble is equipped with all pre-requisites for meeting the future challenges successfully. Warble (Pvt) Limited has Agri-Graduates and a high number of professionally qualified persons in Sales, marketing, Production, finance & administration.
Warble Chemical is fully committed to provide effective & economical solutions to Pakistani farmers. They are offering a complete product range of insecticides, fungicides and herbicides to their distributors and farmers for each crop.
The import of Rs. 849 million & turnover for the year ending 30th June 2008 is Rs.
1021.176 million and equity Rs. 239.473 million. Haji Atta-ur-Rehman Chief Exec. Mrs. Ghazala Asmat Director Mr. M. Saeed Qureshi Director Ch. Iftikhar Nazir Director
ii)- Welcon Chemicals (Pvt) Limited
Welcon Chemicals (Pvt) Limited is one of the largest pesticide company in Pakistan. This is incorporated in December 1994 and has 95 qualified staff and experience filed staff. They said we are one of the most leading Agri Business house in Pakistan. In other word you can say that we are one of the biggest importer and leading distributors, having own formulation plant, high tech quality control lab with complete product range.
The objective of the company is to provide quality and competitive priced products from imports to the technical advisory services for its end users and small distribution houses. Welcon Chemicals (Pvt) Limited with strong presence in all pesticide segments are seizing the opportunity to maintain our position as one of the leaders in Agro-Business. Its team is consisting of highly professional and skilled. Welcon is operating countrywide and providing services to the end users, through eight regional and sixty zonal and area offices.
The imports of Rs. 600 million and turnover for the year ending 30th June 2008 is Rs.
787.093 million and with the equity Rs. 108.250 million. Ch. Iftikhar Nazir Chief Exec.
iii)- Weal-Ag. Corporation
Weal-Ag is the Pakistan's leading generic manufacturer and distributor of crop protection products. The group ranks amongst the Pakistan's largest manufacturers of crop protection chemicals, with a wide range of advanced, environmentally friendly products. Weal-Ag Corporation is mainly in business of developing, manufacturing and distributing pesticides. In conformity with the demands of current market, it is equipped with sophisticated instruments. It has become a sole producer. Since its establishment it has developed into an integrated group. The introduction of Weal-Ag, highly profitable and highly marketable products has brought to its attention. Meanwhile, it has emphasized the importance to collaboration with the research institutions.
The entity is dealing with the import and marketing of agrochemicals besides, seeds and fertilizers, also marketed through a chain of retail outlets in the area. The entity enjoys good credibility for sales of quality products on reasonable rates.
The turnover for the year ending 30th June 2008 is Rs. 73.146 million and equity Rs.
8.423 million.
Ch. Iftikhar Nazir Partner Haji Atta-ur-Rehman Partner Mrs. Ghazala Asmat Partner
iv)- Agri Village International
It is dealing with multifarious activities of various grower’s friendly supplies & services pertaining to pesticides, seeds & fertilizers. The turnover for the year ending 30th June
2008 is Rs. 5.456 million and equity Rs. 47.103 million. Ch. Zia-ur-Rehman Partner
Mrs. Abida Atta Partner Mr. Waqas Siddique Partner
v)- Nasco (Pvt) Limited
NASCO (Pvt) Limited is a conglomerate having diversified business interests in the area of Pet Bottling in Allahdin Group of Companies. NASCO (Pvt) Limited is the leading player in the Pet Bottling Production creating value for Allahdin group requirements at all levels.
NASCO (Pvt) Limited pet bottling plant has great value in pesticide sector. Nasco Pet bottle plant started its work in March 2004 and its main emphasize is to fulfill the requirements of bottles of pesticide market. Nasco team is consisting of highly professional and skilled .With the help of competent employees group is able to produce the different type and different size of pesticide pet bottles according to the demands of the customer/consumer.
Nasco said, “We are the one who are manufacturing the different kinds of bottles for our different companies like Welcon Chemicals, Warble Chemicals, Weal-Ag Corporation and other pesticides companies according to their limits. we are also producing the different types of Caps, Stoppers and Mearing Cup that are going to be produced from the Moulding Machine and they really provides the boosting support to enhance the financial profit of the Allahdin group.
The turnover for the year ending 30th June 2008 is Rs. 11.544 million and equity Rs.
6.456 million.
Ch. Zia-ur-Rehman Chief Exec. Haji Atta-ur-Rehman Director Ch. Iftikhar Nazir Director
vi)- Al-Hamd Chemicals (Pvt) Limited
It deals in marketing of Fertilizer in the country. It started its business in February 2008 with paid up capital of Rs. 150.000 million. It is expected that the turn over for next year would be around Rs. 800.000 millions.
Ch. Iftikhar Nazir Chief Exec. Ch. Zia-ur-Rehman Director
vii)-Lyallpur Chemicals & Fertilizers (Pvt) Limited
The unit Lyallpur Chemicals and Fertilizers (Pvt) Limited is situated at Jaranwala Distt. Faisalabad, has been purchased from National Fertilizers Corporation of Pakistan Limited (NFC) through Privatization Commission of Pakistan. The entity is dealing in production of single super phosphate, sulphuric acid and zink sulphate. The turnover for the year ending 30th June 2008 is Rs. 845 million (including Subsidy of RS. 325 M) and equity Rs.
503.130 million including revaluation surplus. Ch. Iftikhar Nazir Chief Exec. Ch. Zia-ur-Rehman Director Hafiz Khalil-ur-Rehman Director Mrs. Ghazala Asmat Director
Allah Din Group of Companies have purchased the unit through open bidding from PC / NFC. M/S Al-Hamd Chemicals (Pvt) Limited was the highest bidder, however the PC advised to match the reserve price and finally the bid was approved by the Federal Government.
PRICE OF LC&FL PAID TO PC
Rs. Millions
Bid price 280.200
50 % Shares of GHS/VSS 7.136
Total 287.336
For LC&FL the imports of raw materials for next year may be around Rs.330 Million.
viii)- Hi-Warble Pharmaceuticals (Pvt) Limited
The Company has started its business of pharmaceutical products and trying to introduce the medicines in the country (which is presently being imported and sold by others at higher prices) that would provide relief to the common man through reduced pricing of medicines. The turnover for the year ending 30th June 2008 is Rs. 27.758 million and
equity is minus Rs. 20.540 million.
Ch. Iftikhar Nazir Chief Exec. Haji Atta-ur-Rehman Director Mr. M. Siddique Director Mr. Waqas Siddique Director
ix)- Welcon International
This is altogether different activity of the group. By this, the group has launched into the export services, initially of carpets. The export of other items is being envisaged. The
exports for the year ending 30th June 2008 is Rs. 92.069 million and equity Rs. 52.862
million. The export for next year may be around Rs. 300 million. Ch. Iftikhar Nazir Sole Proprietor
x)- Nasco Industries
This is a cotton ginning unit , initially the ginning activity is being carried out, however the further process of oil expelling has been envisaged and planned during coming cotton season. The turnover for the year ending 30th June 2008 is Rs. 8.525 million and equity
Rs. 27.424 million.
Haji Atta-ur-Rehman Partner Ch. Zia-ur-Rehman Partner
Ch. Khalil-ur-Rehman Partner
xi)- Farm Fertilizers (Pvt) Limited
Newly constituted company for expansion in sale of Fertilizer products. This company is also qualified bidder for purchase of Hazara Phosphate Fertilizers Ltd. Haripur, NWFP from NFC through Privatization Commission. Its paid up capital is initially Rs. 0.500 million only. No business operation carried out upto March 2007. However on response from PC the raising of funds for purchase of HPFL shall be arranged through equity viz-a-viz from banks/DFIs.
Haji Nazir Ahmed Chief Exec. Miss Zara Iftikhar Director Mrs. Abida Atta Director
Lyallpur Chemicals & Fertilizers (Private) Limited
Introduction
Lyallpur Chemicals & Fertilizers (Private) Limited was incorporated on June 04, 1958 as a public limited company under the companies act, 1913. Since incorporation the company was a subsidiary of National Fertilizer Corporation of Pakistan (Private) Limited.
Lyallpur Chemicals & Fertilizers Limited was initially established with 50 Tons/day capacity of Sulphuric Acid manufacturing and Single Super Phosphate (Powder) manufacturing plant having rated capacity of 36000 Metric Tons per year.
Subsequently, another Sulphuric Acid unit of 50 Tons/day capacity was installed in August, 1975 and rated capacity of Single Super Phosphate (Powder) unit increased to 72,000 Metric Tons per annum.
The plants of Lyallpur Chemicals & Fertilizers Limited were closed down in July, 1996 due to uneconomical operation when subsidy on import of raw material (Rock Phosphate) was withdrawn by the Government of Pakistan. Later, the plants were rehabilitated at a cost of Rs. 21.981 million and restarted in May, 1999. A Zinc Sulphate Plant of 5 Metric Tons/day capacity was also started in Lyallpur Chemicals & Fertilizers Limited Jaranwala site and put into operation in March, 2001.
However in February 2007 it has been taken over by Al-hamd Chemicals (Private) Limited through privatization commission. The company is principally engaged in the business of manufacturing Single Super Phosphate (SSP), Zink Sulphate and Sulphuric Acid. The manufacturing unit is situated at Lahore Road, Jaranwala and registered office of the company is situated at Suit number 18, 3rd Floor, Shane Arcade, New Garden
Town, Lahore. The status of the company has been changed from non listed “Public Limited” to “Private Limited” in this financial year 2007-08.
Total area including factory area & housing colony is 67 Acres.
Price of Lyallpur Chemicals & Fertilizers (Private) Limited Paid to Privatization Commission
Rs. Millions
Bid price 280.200
50 % Shares of GHS/VSS 7.136
Total 287.336
The turnover for the year ending 30th June 2008 is Rs. 845 million (including Subsidy of
RS. 325 M) and equity Rs. 503.130 million including revaluation surplus.
MANAGEMENT PHILOSOPHY
“We are committed to ensuring the safe and plentiful harvest of tomorrow. A global population grows and society became so industrialize, it demands more food from less land, plants, to meet these changing needs, Lyallpur Chemicals & Fertilizers (Private) Limited is dedicated discovering and developing innovative solutions for sustainable agriculture, applying advanced potential through effective crop protection. As we believe in protecting and improving the quality of human life, we are strongly committed to develop and manufacture cost-effective fertilizers products.”
CORE VALUES
“At Lyallpur Chemicals & Fertilizers (Pvt) Limited we comprehend our core values to be the most significant factor leading to the existence and growth of this prestigious organization.
How we accomplish our mission is as vital as the mission itself. Thus these values are not only on paper and pen but lounge deep in the heart of each individual working or associated with Lyallpur Chemicals & Fertilizers (Pvt) Limited.”
MISSION STATEMENT
“Our mission is to improve the quality of life by manufacturing the fertilizer products. We will achieve it by reducing the cost of fertilizer products while striving hard to maintain high quality”.
VISION STATEMENT
“Our vision is to be the National wide leader in providing fertilizer products and combined solutions for pesticide sector”.
COMPANY INFORMATION
Board of Directors
Chairman Ch. Iftakhar Nazir
Chief Executive Ch. Iftakhar Nazir
Directors Ch. Zia-ur-Rehman
Hafiz Khalil-ur-Rehman Mrs. Ghazala Asmat Company Secretary Muhammad Ashraf Zia Chief Financial Officer Mr. Faisal Khalid
Audit Committee
Chairman Mr. Ahmad Jamal
Members Haji Bashir Ahmad
Mrs. Naziran Begum Head of Internal Audit and Secretary Mr. Muhammad Tariq
Auditors M/S Anjum Asim Shahid Rehman Chartered Accountants
Bankers
Emirates Global Islamic Bank (Y-Block, DHA, Lahore)
The Bank of Punjab (New Garden Town, Lahore)
Askari Commercial Bank Limited (Main Boulevard, Gulburg III, Lahore)
Faysal Bank Limited
(MM Aalim Road, Gulberg III, Lahore)
Habib Bank Limited (Jaranwala Branch, Jaranwala)
Muslim Commercial Bank Limited (New Garden Town, Lahore)
Saudi Pak Commercial Bank Limited
(Gulburg III, Lahore)
Saudi Pak Industrial and Agricultral Iinvestment Co. (Pvt) Limited
(Gulburg III, Lahore)
Standard Chartered (New Garden Town, Lahore)
National Bank of Pakistan (New Garden Town, Lahore)
United Bank Limited (New Garden Town, Lahore)
Registered Office Suit #18, 3rd Floor, Shan Arcade,
New Garden Town, Lahore, Pakistan.
Factory Mauza Chak No. 128/GB, Lahore Road, Jaranwala, Dist. Faisalabad.
Hierarical Structure of Lyallpur Chemicals &
Fertilizers (Pvt) Limited
Hafiz Khalil-ur-Rehman (Director) Ch. Zia-ur-Rehman (Director) Mrs. Ghazala Asmat (Director) M. Afzal Choudhry (MD Production) M. Javed Opal(Sr.Manager Maintenace) Mukhtar Ahmed (Sr.Manager Production)
M. Ashraf Zia
(GM. Finance & Accounts)
Abdul Salam (HR Manager) Talib Hussain (Manager Finance) Zafar Iqbal (Business Manager)
Rao Amir Sharif
(Manger Marketting)
Irfan Javed
(Marketting Officer) Imran Saeed (Marketting Officer)
Tanveer Abid (Admin Officer)
Ch. Iftakhar Nazir
(Chairman) M. Idrees (Manager Accounts) M. Faisal Bajwa (Manager Accounts)List of Share Holders
Name S/O , W/O Address Occupat ion NTN CNIC Shares Held 1 Al-Hamd Chemicals (Pvt) Ltd. NA Suit No.3 3rd Floor, Shan Arcade New Garden Town Lahore Limited Co 25816 70 Reg. No. 0053057 999,996
2 Ch. Iftikhar Nazir Haji Nazir Ahmed 154-L Model Town Lahore Industria list 09885 96-0 35202-9177226-9 1 3 Ch. Zia-ur-Rehman Haji Nazir
Ahmed H#18, St# 1 Block # 3 Jehanian Distt. Khanewal Industria list 13232 62-2 36101-5222868-3 1 4 Hafiz Khalil-ur-Rehman Haji Nazir Ahmed H#18, St# 1 Block # 3 Jehanian Distt. Khanewal Industria list 22464 52-2 36101-1270197-7 1 5 Mrs. Ghazala Asmat Ch. Iftikhar Nazir 154-L Model Town Lahore House wife 10079 68-8 35202-1441328-8 1 1,000,000
Capital Holdings
Associates (Al-hamd) 99.9996% Directors 0.0004 % Financial Institutions % General Public % Others % Total 100 %Manufacturing and Trading Products of Company
1. Single Super Phosphate (SSP) Fertilizer
• Manufactured in the form of Powder and Granular
• Use in preparation of land before cultivation
• Cheaper than other fertilizers
• Alternate of DAP Fertilizers
• More beneficial than DAP fertilizers 2. Sulphuric Acid
• Known as king of chemicals
• Mostly in-house use
• Use in production of SSP and Zink Sulphate 3. Zink Sulphate
Input Ratios of Manufacturing Products
1. Single Super Phosphate
1 Metric Ton SSP = 68 % Rock Phosphate + 36 % Sulphuric Acid
( Extra amount is wastage )
2. Sulphuric Acid
1 Metric Ton Sulphuric Acid = 35 % Sulpher + Water
3. Zink Sulphate
Production Capacity
Products Rated Plant Capacity
Sulphuric Acid 46,000 M. Tons per annum Single Super Phosphate (P & G)) - 18% P2O5 85,000 M. Tons per annum Zinc Sulphate (21% Zinc) 1,500 M. Tons per annum
The Management is making efforts to enhance the production capacity of fertilizer from 85,000 Metric Tons to 240,000 Metric Tons.
Percentage of each manufacturing product in the total production
Single Super Phosphate 90%
Sulphuric Acid 07 %
Zink Sulphate 03 %
Major Suppliers
1. Rock Phosphate---Imported from Egypt and Jordon (El-Waha For Trade Co).
2. Sulphur--- Purchased from Pak Arb Refinery (PARKO) and Oil & Gas Development Co Limited.
3. Zink Ash---Purchased from International Industries Limited.
S t a ck Fi ll lin g P o in t T o S S P & Z n S OP la n t s 4 1 3 4 oC S U L P H U R M E L T I N G P I T S S U L P H U R S T O R E F U R N A C E B O IL E R H O T G A SF IL T E R A C ID S T O R A G E T A N K S P R E H E A T E R C O N V E R T O RS O 3 A C I D E XP O R T P U M P D R Y IN G T O W E R B L O W E RA IR 7 5 0 ~ 8 5 0 o C 4 6 0 o C 4 3 0 o C 3 0 0 o C 7 5 o C 5 5 o C A I R 1 7 0 o C A C ID C IR C U L A T IO N P U M P A B S O R P T I O N T O W E R
There is not any trading product of Lyallpur Chemicals & Fertilizers (Pvt) Limited. In fact Lyallpur Chemicals & Fertilizers (Pvt) Limited is a manufacturing concern and its holding company Al-Hamd Chemicals (Pvt) Limited is trading concern.
F O R BA G G I N G & L O A D I N G S U L P H U R I C A C I D B U C K E T E L E V A T O R R O C K S H E D S G R IN D IN GM IL L F IN E R O C KH O P P E R M E T E RP IO D O C U R IN G S H E D D E N M IX E R D IL U T E A C ID T A N K D IL U T E A C ID P U M P M A IN B E L T C O N V E Y O R C O N V E Y O RM E T A L L IC A C ID D IL U T IO N U N IT W A T E R
Process Block Diagram Of Sulphuric Acid (H
2so
4) Plant
S T A C K I N G & D E S P A T C H S U L P H U R I C A C I D B U C K E T E L E V A T O R Z I N C A S H R E A C T O R S S E T T L IN GT A N K S F I L T E RP R E S S P A C K IN G & S E A L IN G M A C H IN E C R Y S T A L I Z A T I O N P IT E V A P O R A T O R B U L K S T O R E C E N T R IF U G EM A C H IN E W A T E R M O T H E R L IQ U O R P I T ST EA M 4 5 oC 3 5 oC 3 0 oC 5 0 oC M U D M U D
Process Block Diagram Of Zinc Sulphate Plant
Phosphoric Acid (Free
Acid)
Calcium Mono
Phosphate
Calcium Di Phosphate
Calcium Sulphate
Rock + Acid
Tri Calcium Phosphate
(Rock)
HUMAN RESOURCE DEPARTMENT
Introduction
In Lyallpur Chemicals & Fertilizers (Pvt) Limited Human Resource department is helping people and organization to reach their goals. Along the way, the department is facing many challenges arising from the demands of the employees, the organization, and society. The domestic and international environments are particularly turbulent because of the growing diversity of the workforce and the globalization of businesses. Challenges also result from ever-changing laws, especially laws that address the need for equal employment opportunity. Within these constraints, the human resource department is contributing in the organization's "bottom line" in ways that are both ethical and socially responsible.
The Purpose of HRM
The purpose of human resource management in Lyallpur is to improve the productive contribution of people to the organization in ways that are strategically, ethically, and socially responsible.
Structure of the Human Resource Department
Objectives of Human Resource Department
Manager Human Resource
& Administration
Deputy Manager
HR
Deputy Manager
Admin
Assistant Manager HR Administration Officer Computer Operator SecrateryManagers and HR departments achieve their purpose by meeting objectives. Objectives are benchmarks against which actions are evaluated. Sometimes they are carefully thought out and expressed in writing. More often objectives are not formally though out and expressed in writing.
The main objectives of Human Resource Management are not only to reflect the intention of senior management, they also must balance challenges from the organization, the HR function, society, and the people who are affected. Failure to do so can harm the firm's performance, profits, and even survival. These challenges spotlight some objectives that are:
Organizational Objective
To recognize that HR management exists to contribute to organizational effectiveness. Even when a formal HR department is created to help managers, the managers remain responsible for employee performance. The HR department exists to help managers achieve the objectives of the organization. HR management is not an end in itself; it is only a means of assisting managers with their human resource issues.
Personal objective
To assist employees in achieving their personal goals, at least insofar as those goals enhance the individual's contribution to the organization. The personal objectives of employees must be met if workers are to be maintained, retained, and motivated. Otherwise, employee performance and satisfaction may decline and employees may leave the organization
Not every HR decision can meet these organizational, functional, societal, and personal objectives every time. Trade-offs do occur. But some serve objectives are a check on decisions. The more these objectives are met by the department's actions, the larger its
contribution will be to the organization's bottom line and the employee's needs. Moreover, by keeping these objectives in mind, HR specialists can see the reasons behind many of the department's activities.
Recruitment and Selection
Selection Procedure
Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
Role of HRD in Recruitment Process
Human resource department of Lyallpur is responsible for designing the selection system and managing its everyday operation. In Lyallpur Chemicals & Fertilizers (Pvt) Limited human resource mangers in cooperation with other managers largely set the overall strategy, they are likely to be influential in deciding, e.g., whether the department should focus on choosing people who are best qualified for current vacancies of for those who have the greatest long term potential. The personnel managers also decide how the guidelines for equal employment opportunities met and whether the company needs outside legal assistance in formulating its affirmative action plan.
Procedure of Joining the Company
On joining the Company the following formalities must be completed:
The documents listed below shall be forwarded immediately to Human Resource Department for completion of their record.
i) Duplicate copy of appointment letter duly signed by the employee in acceptance of the terms and conditions embodied therein.
ii) Four copies of recent passport size photograph.
iii) Photocopies of all academic certificate especially metric certificate. iv) Photocopies of testimonials from previous employers.
v) Fitness certificate. vi) Photocopy of CNIC
vii) Clearance letter from previous employer.
Recruitment Process
In general the sources of recruitment can be classified into two types:
i).
Internal Job PostingFilling a job opening from within the firm has the advantages of stimulating preparation for possible transfer, or promotion and increasing the general level of morale.
Self Nomination
Human Resource office publishes a monthly newsletter that list the Lyallpur's job posting program to different routes to nomination for a job, self nomination and nomination by an employee supervisor.
Positions available the announcements carry information about the nature of the position and the qualification needed, and any employee whose interested bid on the job that is enter the competition for it.
Informal communications among managers lead to discourage that best candidates for a job is already working in a different section of the firm.
Despite some minor problems, most employees were pleased that an internal job posting program was established. Most successful nominees were happy with their new assignments and unsuccessful nominees identified needed skills and gained a more realistic idea of additional training or experience required for careers alternatives.
ii). External Job Posting
Lyallpur Chemicals & Fertilisers (Pvt) Limited also go to external sources for positions whose specification can not beam by present personnel. Lyallpur uses following outside sources:
1). Advertising
Advertisements are placed in various newspapers. More information about the company and jobs specifications are included in the ad to present some self-screening.
2). Employment Agencies
Additional screening is affected through the utilization of private employment agencies. The agency has specialized in various types of workers and job e.g. sales office, execution or engineer.
3). Casual Applications
Unsolicited applications both at the gate and through the email constitute a much used source of personnel.
4). Leasing
To adjust short term function in personnel needs. The possibility of leasing by the hour or day is considered. Lyallpur is not only obtains well trained and selective personnel but avoids any obligation in pension, and other fringe benefits.
.
The Hiring Procedure
In the hiring procedure, Lyallpur is considering the following steps to discover significant information about an applicant:
1. Call for application 2. Preliminary interview 3. Applications blank 4. Check of References 5. Psychological test 6. Employment interview 7. Approval by the supervisor 8. Physical examinations 9. Introduction or orientation
1). Call for Application
First of all, an ad is given in the newspaper for the vacancy.
2). Preliminary Interview
In this step, the more obvious facts and impressions are of the type generally obtained in an initial interview. Appearance and facility in appear are quickly evaluated. Applicants are often asked why they are applying for a job with Lyallpur. An idea of education and
experience is obtained by asking for the last grade finished in school and the names of jobs previously performed.
3). Application Blank
The application form is a sheet or small, booklet with blanks to be filled in by the applicants. Its purpose is to supply organization with basic information about the candidate's back ground: education work experience, previous salary, and so forth.
In Lyallpur factual information is to be obtained by means of an application blank. Weighted application form is established and used with caution. It is used for two prime objectives:
i). Lyallpur has established the selection of more stable employees to decrease labor
turnover. They have discovered and utilized the particular data that devote stability facts relating to home ownership, marital status, age, sex etc.
ii). Lyallpur has also established job proficiency as the major objective and have
correlated biographical items with production records.
The application blank is continuously updated. The entire blank is restudied and reweighted every 1 year at the minimum.
4). Check of References
The purposes of the reference check are to obtain information about past behavior of applicants and to verify the accuracy of information given not he application blank. Lyallpur uses combination of letters and telephone calls, as a method of checking.
Reference includes only: 1) Dates of employment 2) Job title
3) Absentee record
4) Promotions and demotions 5) Compensation
6) Stated reason for termination.
5). Psychological Test
In Lyallpur, clericals jobs are subjected to the greatest amount of testing, applicants for unskilled hourly jobs are tested least. The factors measured are usually of the psychological type, such as ability to reason, capacity for learning, temperament and specific aptitude.
Types of Psychological Tests:
Following types of tests are being used in Lyallpur to identify talents.
i). Intelligence test
These tests concentrate on a person's abilities with worlds numbers logical reasoning and spatial relationships. This type of test is used for managerial posts.
ii). Mechanical Aptitude test
Lyallpur uses mechanical aptitude tests. Inventions are asked which fall into the general area of understanding area of under standing mechanical relationships. Some questions
relate to knowledge of tools and equipment. This type of test is suitable for technical posts.
iii). Clerical Aptitude Test
This test deal with questions concerning office vocabulary, automatic, spelling and detail checking. This type of test is used for clerical posts, such as computer operator.
iv). Interest Test
Lyallpur realizes that a person who is interested in a job or task will do much better than one who is uninterested. The applicant is asked whether he likes, dislikes or is indifferent to many examples of school subjects, occupations, amusement, and peculiarities of people and particular of activities.
6). Employment Interview
Interviewing is probably the most widely used single method of selection. Lyallpur shapes interviewer behavior is to establish a specific system for conducting the employment interview.
Lyallpur considers following things to set up such a system:
1). To know what to look for in applicant focus only those knowledge, skills, abilities and other characteristics (KSAOs) necessary for the job.
2). Develop interview questions that are strictly based on the job analysis results, use "open-ended" questions and use questions relevant to the individual's ability to perform, motivation to do a good job.
3). Conduct the interview in a relaxed physical setting. Begin by putting the applicant at ease with simple questions and general information about the organization and the position being filled.
4). To evaluate applicants, develop a form containing a list of KSAOs weighted for overall importance to the job.
7). Approval by the Supervisor
After the employment interview the immediate supervisor approves the candidates. The candidate's recruitment is confirmed after probationary period.
8). Physical Examination
The physical examination step found in most business. Physical examination includes matching of an applicant's physical capabilities to job requirements to a simple check of general physical appearance and well being.
In having the physical examination procedure Lyallpur has at least three basic objectives that are:
1). In first, it serves to ascertain the applicant physical capabilities e.g. can the applicant work standing up.
2). The second objective of examination is to protect the company against unwarranted claims under worker's compensation laws or against lawsuits for damages. If a record of a new employee’s physical condition at the time of entry does not exit, a claim could possibly be filed for injuries greater than were incurred after starting to work.
3). Third objective of physical examination is to prevent communicable diseases from entering the organization.
Training and Development
Orienting and Training Employees
In Lyallpur both human resource directors and other managers play critical role in the development of orientation programs. Human resource managers have assumed leadership in developing such programs.
Orientation of New Employees
After the selection of successful employees the first step in their introduction to company policies, practices and benefits is an orientation program.
In 2007 an orientation programme was conducted by the management after taking over NFC. The main objective of that programme was to get familiarize with the organization culture of both old and new employees.
The Orientation program in Lyallpur is completed in three phases:
The first phase is usually conducted by the staff personnel unit. Subjects covered include products of the company, employee benefits, salary schedules, safety, probationary period, timed recording and absence, holidays equal employment opportunity programs, packing and the grievance procedure.
The second phase of most organized induction program is performed by the immediate supervisor. The inductee is introduced to fellow employees, given a tour of the department, and informed about such details as locker and rest rooms, supply procedures, hours of work overtime, call in procedures, rest and lunch periods, and lunching facilities.
The complete in action program will provide for phase three follow up some week later. The interview, conducted by either the supervisor or a personnel specialist is concerned with:
1). Employee satisfaction with the job and organization. 2). Supervisor satisfaction with the employees.
Dissatisfactions may be cleared up by explanations or actual transfers to a different job. In any event, the interest in the employee evidenced by the more act of having a follow-up interview will help to increase the level of employee satisfaction.
After the employee has been received, selected and inducted, he or she must next be developed to better fit the job and the organization. No one is a perfect fit at the time of hiring, and some training and education must take place.
Lyallpur is a cultural organization in which importance has been given to training. The management consider the training as an "Investment in their Asset". They believed that planed development programs will returns values to the organization interims of increased productivity, high reined morale, reduced costs and greater organizational stability and flexibility to adapt to changing external requirements.
Lyallpur management is initially interested in training and educational programs in order to promote employment and utilize the talents of its citizens.
Training Needs Assessments
In Lyallpur there are three level of analysis for determining the needs of training:
Focus on identifying where within the organization training is needed.
2). Operation analysis
Attempt to identify the content of training, what an employee must do to perform competently.
3). Individual Analysis
Determines how well each employee is performing the task that make up his or her job. At this level, training needs may be defined in terms of a simple equation.
Desired performance - Actual Performance = Training need
Operative Training
The development of operative calls for specific, increased in skills and knowledge to perform a particular job. In Lyallpur there are primarily two basic methods in use:
1). On the Job Training
Since most jobs in Lyallpur can be learned in a relatively short period of time, this method is most widely used. It has the advantage of strongly motivating the trainee to learn since it is not located in the artificial situation of a classroom. The fact that the success of the system depends almost entirely upon the immediate supervisor, the trainer, means that the personnel unit has a major responsibility for making a good, effective reaches out of every supervisor.
Major types of on the job training implemented in Lyallpur is Apprenticeship
programme which include both class room instructions as well as on the job training.
This type of training is given to the new inductees and usually two years long.
2). Off the Job Training
There are three methods used in Lyallpur for Off the Job training:
i). Workers Training Program
During the first quarter of 2008, a worker's training program was organized by fertilizer division of Allahdin Group. This was a part of on the job training. This program was inaugurated by Manager Human Resource of Lyallpur. The main agenda of the program was to explore the hidden talent of their worker and to make them cognizant of their own potentials. Manager HR, the divisional head, and his team conducted the program in a very interesting and entertaining manner with the help of IQ testing riddles and different games. High degree of enthusiasm was observed among the participating workers.
ii). Special Courses
The second system of operating training classified some educational courses rather than training.
iii). Selling and Technical skills training program
This is another strange experience for all participants after the budget and strategy session. This program was hold day and night from 25-04-2008 to 27-04-2008 at BZU,
Multan. The objective of the program was to convert their sales staff into technical sales staff.
Evaluating Training Programs
Training must be evaluated by systematically documenting the outcome of the training in terms of how trainees actually behave back on their job and the relevance of the trainees behavior to the objectives of the organization.
To assess the utility or value of training, in Lyallpur management seek ensures to four questions.
1. Did change occur?
2. Is the change due to training?
3. Is the change positively related to the achievement of organizational goals? 4. Will similar change occur with new participants in the same training programs? In evaluating training programs, measures of change fall into four categories:
Reaction
How do participants feel about the training program?
Learning
To what extent have trainees learned what was taught?
Behavior
What on the job changes in behavior occur because of attendance at the training program?
Results
In what extent have cost related behaviour outcomes or quality improvement, turn over or accident reduction (productivity) resulted from the training?
Management and Career Development
Management and employee development programmes are "those organization sponsored programmes aimed at educating supervisory and supervisory employees above and beyond the technical requirements of their job". Human relations, "decision making" and the executive’s role" are examples of courses included in management development. The HRD of Lyallpur is mainly responsible for providing information about what seminars are available outside and also develop budgets and plans for sending managers to outside seminars but the final decision of attending the seminar is to be made by immediate supervision of the managers involved.
The commonly used training methods in ICI are: 1. Lecture / Discussion 2. Films / Videotapes 3. Case Study 4. Management Games 5. Behavior Modeling. Evaluation of HRD Performance
HRD of Lyallpur is working very well. Such as planning, managing people, resulting people, its objectives and its mission, guiding principle are very good and helping in overall organization.
Managers of HRD are expected to organize and to be accountable for the work of other people. In this process, managers act as employers as such they create and sustain the employment relationships of their organizations.
Salary Administration
Salaries of Sales Force 1). Fixed Salary
Fixed salary is given to helpers and apprentice salesmen/managers during their first six months of training period.
2). Fixed Salary and Commission
All the salesman who have passed the test and the managers who have completed six months training are paid according to this plan.
Employees Services
Bonus
After the completion of two years of service, salesmen and helpers are entitled to bonus (if any) to be paid at the end of each year.
After completion of one year's service, a Manager will be entitled to become the member of Provident Fund.
a). The Manager will deposit every month 6% of his actual pay to his PF.
b). After five years of continuous contribution by the manager, he will be entitled for 100% of company's contribution.
Annual Leaves
An employee after completion of one year of service will be entitled to the following leaves:
a). Casual Leaves 10 days with pay b). Sick Leaves 14 days with pay c). Privilege Leaves 10 days with pay
Promotions
The manager on transfer from one station to another will be entitled to the following allowances:
a). Actual transport fare for him and his family. b). One day daily allowance for himself.
c). Average salary for the period in between handing over and taking over of the charge.
Demotions
An employee may be demoted on showing bad performance. Not only the low level employees but the managers are also demoted if the required targets are not achieved in repeated year.
Commission and Salaries
The administration department deals with the salaries, commissions and other fixed benefits of the employees. In this way, Lyallpur has its own system of evaluating the salary and commission for individual employees in the organization. The basic salaries of the employees of Lyallpur is very low, however, a good package of salaries come into existence after adding the house allowance, conveyance allowance and commission. Schedule of salaries and commission is as under:
Personnel of grade "1" gets 2000/- Rs.(B.P) Personnel of grade "2" gets 2800/- Rs.(B.P) Personnel of grade "3" gets 4600/- Rs.(B.P)
The above employees get more in form of a percentage share in net profit. Salaries of managers are also varies work wise ranging from 430/- Rs. to 3150/- Rs. They enjoy, too, the commission ranging from .09% to 3% of the net profit.
Formally defined a Company structure is the system of communication and authority that links people and groups together to accomplish tasks that serve the organizational purpose.
Structure can be described in the form of an organization chart. Lyallpur 's organizational chart shows that it has functional structure.
Negotiating With Union
Labor Union do alter the work environment. The personnel department is deeply involved with decisions that effect compensation, work hours and other terms and conditions of employment to ensure uniformity of treatment. In Lyallpur one labor union member is granted the status of collecting bargaining agent (CBA). Management wants effective work performance through good relationship with CBA. The union is only for rank and file workers.
Union management meetings are held every month. At the end of the year, Annual meeting is held with the employees.
A reasonable agreement is reached which is workable for both the management and the work force. Management always wants to provide a conducive and congenial work environment for the work force.
Strengths
• Qualified management
• Recruitment procedure
• Training methods
• Computer literacy programs
• Compensation and benefits packages
• Handsome salary package for professionals
Weakness
• Time consuming recruitment procedure
• Inter-department relations • Union disputes • Communication system Opportunities • Availability of professionals • Agricultural specialists Threats • Labor disputes • Political references • Price competition • Strong competitors Conclusion
Training process in Lyallpur leads to improved profitability, enhances job knowledge and skills, helps employees to identify and understand organizational goals, improves labor management relations and increases information by reducing communication gap at all levels of the organization. Thus training in Lyallpur develops certain skills among the employees, such as effective problem solving, handling stress, frustration and conflict, improved communication skills and sense of growth and learning. These skills are required because ICI has a diverse product range.
Suggestions
In the light of my research following recommendations are suggested.
• Lyallpur should have to launch employee awareness training programme through off the job training. These programmes must clearly define company goals and bring about awareness of corporate culture of Lyallpur amongst the less educated employees.
• They should have to train their employees according to the macro-environment of the country.
• It is also suggested that Lyallpur should have to hire professional trainers to distinct their employees from their rivals.
Al-Hamd Chemicals (Pvt) Limited
Al-Hamd Chemicals (Pvt) Limited is subsidy of Allahdin Group of Companies and it is holding and trading company of Lyallpur Chemicals & Fertilizers (Pvt) Limited. Its core undertaking is to benefit the farmer‘s worth through prosperity & fruitful land. HFC founded in late 2006. HFC is a leading manufacture & distributor of Single Super Phosphate (SSP) and have a solid vision to get more share in SSP market as well as in fertilizers sector of Pakistan.
Products
Super Kisan Single Super Phosphate (Powder & Granular) is the major product for marketing. It contains;
• P2O5 18% • Gypsum 46%
• K2O, Magnesium & Zinc
Agronomic Aspects of SSP
Why SSP is better than DAP for Pakistani Soil?
• Nutrients Contents & Low PH
• SSP Being Highly Acidic in Nature (PH-2)
• Due to Availability of Gypsum (46 %)
• Combination of SSP & Urea, SSP & CAN
• SSP for the Reclamation of Saline, Alkali Soils
• It Softens the Soil
• SSP Changes the Orchard Soil Alkalinity
SSP is more beneficial for all crops, especially for root crops like:
• Potato • Sugar beet • Sweet Potato • Carrot • Turnips • Radish
• Onion & Garlic
Market Summary
Fertilizer is one of the key inputs to agricultural production. Balanced usage of fertilizer helps in increasing crop yield from 30 to 60 percent in different regions of the country. Almost the entire available soil in the country is nutrient deficient. To overcome the problem of nutrient deficiency, use of fertilizer has become vital for achieving the agricultural production. However, the main impediment in exploring the full potential of the soil has remained below par due to imbalances in fertilizer usage specially, in terms of over application of nitrogenous fertilizer compared to phosphatic fertilizer.
Realizing the importance of balanced nutrition, the prices of 50 Kg bag of these fertilizers were reduced by Rs 250 for encouraging a more balanced use of key fertilizers (nitrogenious, phosphatic, potassic fertilizers) in 2006. Following the steep increases in international prices of phosphatic and potassic fertilizers, the Government in July 2007, further increased the relief in price from Rs 400 to Rs 470 per bag.
The domestic production of fertilizers during the year 2007-08 remains near to 6.24 million Metric Tons. Provisional figures shows that total nutrients off take during fiscal year 2007-08 was 3,577 thousands tons depicting a decrease of 2.6 % over year 2006-07. Nitrogen offtake increased by 10.4 %, whereas phosphate and potash decreased by 36.0 & 38.10 per cent respectively. The high prices of phosphatic and potassic fertilizers altered the ratio in favor of nitrogen which negatively effective our crop productivity. Increased international prices of phosphatic and potash fertilizers overshadowed the subsidy effect and eventually off take could not increase and remained at almost last year’s level.
Seasonal Variation
Rabi: October-November
Kharif: April-May
There are two seasons of crops in Pakistan Rabi & Kharif. Rabi refers to the crops for which seeds are sown in October-November and harvested in April-May, whereas, kharif seeds are sown in April-May and harvested in October-November. Urea is needed in the middle of these crops, therefore, in the months that fall between sowing and harvesting urea off take increases. Phosphate fertilizers are mainly used at the time of sowing the seeds.
As for as the production of fertilizer in kharif & Rabi is concerned it is more or less independent. However, in terms of consumption Rabi needs a lot of fertilizer as major crops of Pakistan (Wheat and Sugarcane) grow in Rabi season and weather conditions are more suitable to use fertilizer due to minimum rainfall. In the Kharif season only cotton is grown and that does not require much fertilizer as compared to other crops.
