by soil testing campaign, collection of soil from farmers' fields,

getting them analyzed in reputed laboratories and finally

handing over the results of the analysis with the
recommendation of fertilizer dosage on the basis of nutrient
status of the soil and the crop which is to be grown.The soil test
report is handed over to the farmer on the basis of a specially
designed software developed by PPL. In a span of three years,
30,000 samples have been tested and farmers have benefited
from these specialized services.

3.Navratna Samachar

PPL publishes a quarterly agricultural magazine ‘Navratna

Samachar’ for farmers since 2005. The magazine is
published in Hindi, Bengali, Oriya, Telugu and Marathi
languages and is circulated to farmers free of cost. The
magazine covers details on complete agronomic solutions for
various types of crops, tips on different income generating
schemes, fertilizer recommendations given by various States
for different types of crops grown in the State, subsidy
announced by State Governments for various types of
agricultural and horticultural crops. The magazine also
covers success stories of farmers and experiences of Star
Dealers in implementing various schemes in the Star Dealer
Villages.

The origins of vision:

9
PPL, which is in the business of making & selling phosphatic
fertilizers, was a Public Sector Unit managed by Government till
January 2002. In February 2002, it was privatized with the
K.K.Birla group holding a major share, shared with the OCP
group of Morocco and the Government of India.

Since its privatization in 2002, PPL’s new management

achieved a major turnaround in the first 3 years of its
operations, mainly through financial and administrative
reforms. This resulted in establishing discipline in the
operations of all areas and translated into major results, turning
the company from red to black.

In continuation, PPL chose “business process optimization” as

the fundamental theme for its vision to achieve the next
turnaround. Identifying, defining, monitoring, measuring and
improving the critical performance parameters related to all
core business processes, was the core of the strategy that was
adopted to achieve the vision. Building a reliable, robust and
scalable technical architecture, was considered imminent to
implement the strategy.

It is the vision & the way the vision is translated into strategy
and then into execution, that distinguish a strong business
value generating initiative from a poorly envisioned one.

The salient elements of PPL’s vision were the following.

IT is an essential strategic tool to establish & operate a long-

term sustainable business model that can offer a competitive
edge.

A great deal of business value is achievable through business

process reengineering and optimization.

A strong Business Process Model & a robust Information

System are the most essential ingredients for long-term

27
 sustenance, dynamic business decisions and agility to
respond to continuing internal and external changes.

A reliable, robust and scalable IT infrastructure must be

established to realize the strategic value of IT.

The strategy:

The vision is typically translated into strategy and then into

execution plan defined as a project. The soundness of the vision
certainly impacts the quality of the strategy that emerges and
subsequently the execution aspects of the project that is
defined. Typically the strategic alignment of IT initiatives to
business vision, add to their success rate substantially.

Briefly the following strategic aspects were part of the

considerations in the definition of Project EMPOWER at PPL.

Elements of Strategic aspects Execution

implementati aspects
on

ERP Product Focus on business process Visits to fertilizer

evaluation mapping & product companies who
suitability to business already
processes implemented ERP
Focus on process products.
optimization & usage of Evaluation based
best practices on systematically
compiled business
requirements in all

27
 functional areas.
Organization Business must own & drive MD acting as
structure the project in line with the Executive Sponsor.
vision. All business
All policies decided in line process owners
with the vision stated. acting as Steering
All Functions must be Committee, chaired
represented adequately in by MD.
the project team Project core team
constituted by
managers from all
functions & IT.
Preparatory Focus on business process Business process
process study optimization. study defined all
Current state assessment. existing processes.
Mechanisms to measure & Process
monitor performance. performance
Identifying areas for measurement
improvement. parameters &
Setting performance mechanisms were
targets. identified &
defined.
Process
improvement areas
were identified in
all functions.
Expectations from
SAP
implementation
were defined.
IT architecture IT is a strategic IT infrastructure
preparation investment, essential to was designed &
build a dynamic & agile built with long term
business model to meet considerations.
the business challenges Sized for
and growing competition. reasonable
A robust & scalable IT business volumes

27
 infrastructure was Scalable for growth
considered essential for in the next 5 years.
building a long term Planned
sustainable business redundancy at
model. several levels, to
meet single point
failures.
IT process
discipline, service
levels &
preparedness for
disasters & other
eventualities, in
line with the
business criticality
of SAP.
ROI Plan Specific well-defined All business
preparation quantifiable targets were process owners
considered essential to visualized the
Identify major areas of planned business
business benefits & process
visualize results. improvements,
Estimate returns & likely through identifying
payback period. possible targets in
Act as guiding factors to their respective
ensure the desired quality functions in terms
in processes. of the CTQ
Measure the business parameters.
success of the project. All business
Commitment, involvement process owners are
& ownership of process committed to &
owners. owned the project.
End users of all
functions, were also
committed by
default, through the
example of their

27
 respective business
owners.
Implementatio Standard features of the All process
n policies product must be used to customizations
the maximum extent. were discussed by
Process customizations Steering
must be kept to a Committee, before
minimum. being approved or
Best practices must be disapproved.
adapted to the maximum There were almost
extent. no customizations
made to the
standard business
processes in SAP.
Implementatio Project is a business People in middle
n team initiative, and is not an IT management level,
initiative. with good
Business processes to be knowledge of
studied & analyzed in full operating business
depth & detail for processes, were
reengineering & selected as core
optimization. team from
functions various
functions, to
represent business
requirements.
User Focus on user knowledge, First level user
preparation understanding, practice & training during the
(user regular disciplined usage. project prior to go-
awareness live.
creation / Ongoing continuous
training) training & support
post-go-live, to
make users
comfortable with
SAP.
Implementatio To-Be process design Constant transfer of

27
n methodology purely based on a knowledge from
comparative study of the consultants to core
new process & the as-is team and core
process. team to process
To-be process design with owners & users.
full clarity & understanding Process enabling
by all users, through gap core team to study
analysis. & analyze the as-is
Inter-functional integration processes & design
addressed in the to-be the to-be
process design. processes, guided
by consultants &
process owners.
Core team testing,
master data
preparation, data
transfer,
implementation &
end-user training.

Objectives:

The objectives of the project EMPOWER, were defined as

follows.

Improvements in operational efficiencies: PPL wanted to

achieve major improvements in the operational efficiencies of
the business, especially in those areas where there was no
computerization in the past, such as Production, Plant
Maintenance, Quality management etc. Even in the areas
computerized with legacy applications, PPL expected significant
improvements in the controls & monitoring.

Integration of all functions: Prior to Project EMPOWER, only

a few functional areas such as Finance, Materias & Payroll were
computerized through legacy applications in islands. Others
were handled completely manually. Needless to say, there was

27
little or no integration. Most information was manually prepared
& there were also occasions when different functions maintain
different datas related to a common business process theme.

Hence PPL was expecting a fully integrated operational

environment, enabling one single voice of PPL on one single
theme.

Information driven business decisions: Business decisions

made based on factual information of related areas, are better
in quality than those made based on gut feelings & emotions.
Thus PPL expected the ERP system to facilitate an information
system, forming a robust basis for quality business decisions.

Continuous performance monitoring: Whatever needs to

be improved, needs to be measured, and whatever needs to be
measured, needs to be defined. Along with a robust business
process model, PPL was looking for a performance measuring
mechanisms in place, so that the performance of business
processes is constantly measured, monitored and improved.

A reliable, robust & scalable technology infrastructure: A

reliable IT infrastructure is a must, in order to implement the
ERP system and to achieve the objectives stated above. It is
also felt essential that such an infrastructure be robust and
scalable to meet the growing business needs of the future.

Project conditions:

Prior to the SAP implementation project, the IT investments

were very “scattered” and not tied down by any well-designed
long-term IT strategy. It was quite a challenge to protect the
investments, while designing & implementing a long-term
strategy with focused objectives for the long and short terms.

27
The IT infrastructure required substantial enhancements to
ensure the reliability, robustness and scalability required for
SAP application. The legacy applications that were being used
primarily included – Financial accounting system covering
general & sales accounts, Materials management system
covering inventory & purchase operations and Payroll system.

In business operations, administrative and financial controls

were in place through manually operated procedures, in most
functional areas, especially in those connected to financial
expenditures. A LOAM (Limit of Authority Management) system
was manually in place and was in rigorous operation. Operating
policies covering important business areas such as Finance &
Accounts, Budgets, Costing, Marketing, Sales accounting,
Purchase, Human Resources, performance management, travel,
payroll, employee benefits etc were fairly well-defined and were
manually in operation.

Business processes were defined & documented in most of the

important functional areas. In places with legacy application
support, business operations used a combination of systems &
manual operations. In others, they were purely manual.
Business process awareness, clarity and maturity levels were
fairly good among top & senior management. MIS was nearly
fully manual through Excel worksheets, except for some reports
offered by the few legacy systems. General IT savviness among
employees was about average.

Preparations:

The preparations for Project EMPOWER included a host of

important activities that played a very important role in the
successful SAP implementation. These included the following.

ERP product selection & ordering: We carried out the

evaluation of a short-list of popular ERP products, following a

27
well-defined systematic methodology, to select the one product
best suited for PPL’s requirements. We selected MySAP ERP
product.

Implementation partner selection & ordering: We

evaluated ERP implementation partners, to select the best &
most suited to PPL. PPL retained M/s Siemens Information
Systems Limited (SISL) as implementation partner, who played
a very crucial role in studying, analyzing, designing &
implementing PPL’s business processes in SAP.

Hardware sizing, selection & ordering: Plan, architecture,

suitably size, select vendor and order IT infrastructure for the
project, including - LAN, WAN, servers, SAN, clients, data centre
preparation etc. among others.

BPMS Diagnostic study: We conducted a comprehensive

Business Process Management System (BPMS) Diagnostic study
of all business processes of PPL. IT lead the BPMS project to
study & analyze the present business processes, identify
Critical-to-quality (CTQ) parameters for effectiveness &
efficiency, identify areas for business process improvements,
design management dashboards and identify projects for
improvements. This was facilitated by an external consultant
and involved a team of around 15 functional managers of PPL,
managed by IT.

The conclusions of the BPMS (Business Process Management

System) diagnostic study conducted at PPL, prior to Project
EMPOWER, proved to be very useful in the design of the new
business processes in SAP.

Project organization & human resources: We identified the

project organization & human resources for the project,
prepared project office equipped with all administrative
facilities and create general awareness to all. Our MD kindly
agreed and acted in the vital role of “Executive Sponsor” for the
project, defining the vision of the project and providing the
27
most crucial direction, while all members of top management
offered their valuable time acting as the Steering Committee
for the project, offering their full commitment & support in the
form of policy level decisions & valuable guidance to the entire
project.

Besides the role of the Steering Committee, PPL’s top

management have also played the important role of “Business
Process Owners” in the project, providing the most essential
inputs on the current processes & future requirements in each
business area and guiding the process design.

The project core team members were also selected and were
dedicated for the implementation project full time. Head of IT,
who was a member of both the Steering Committee and the
project core team, acted in the role of Project Manager. The
team from the implementation partner’s side including the
Project Manager as well as consultants for all modules was also
discussed and tentatively decided. The team from our
implementation partner consisted of a Project Manager and a
team of functional & technical consultants.

Project vision, objectives & goals: The concept, vision &

objectives, approach as well as other detailed plans for
execution, were reconfirmed & approved by the Steering
Committee during this preparatory phase. Also a quantified ROI
(Return on Investment) plan was prepared based on the
targeted goals, resulting in an estimated payback period of less
than 3 years.

Project scope: SAP implementation was carried out in the

modules of FI, CO, MM, SD, PP, PM, QM, HR, Payroll, EP & ESS,
BIW modules covering Finance & Accounts, Costing &
Controlling, Supply & Distribution, Sales, Production, Materials
Management, Plant Maintenance, Quality Management, Human
Resources & Payroll. In addition, the project also included
customization & implementation of a product named INotify,
along with an interface to SAP, to capture & post all Supply &
27
Distribution and Sales related transactions into SAP. INotify
provides a PDA-based front-end to Field Sales Officers operating
from various parts of India and also an online interface to
Regional Offices in India.

Project execution:

The SAP implementation went live on 6 th February 2008. The

present layer of implementation mostly addresses the basic
operational / transactional aspects of PPL’s business processes.
More advanced layers of planning & strategic support, which
need a very stabilized & reliable foundation at the transactional
level, are planned in future as enhancements through the
implementation of advanced modules.

Some of the important elements that contributed significantly

to the success of the entire project, are detailed below.

Technical architecture: The technical architecture acted as a

robust platform for the execution of the project. The servers,
primary storage, backup systems, local & wide area
connectivity were carefully designed, sized & implemented to
ensure trouble-free & reliable project execution from start to
end. A three-tier (development, quality & production) landscape
was chosen for the SAP servers with a reliable DB system &
RAID-based storage to run SAP. The data centre was also
redone, with all necessary facilities. All these well-planned
infrastructural arrangements ensured that the project team’s
attention is never diverted from the core project issues to
infrastructural issues.

Process re-engineering: Mere reproduction of business

processes in the existing form from legacy system to SAP will
result in mere status quo to prevail without any added benefits.
Process optimization, based on process reengineering, was the
key theme of project EMPOWER. Thus, process reengineering

27
actually played a very important role in the success of the
project, especially in ensuring that the new system is not a
mere substitution to the old system, but carries a major value
addition to the business. The results of the BPMS diagnostic
study that was conducted prior to project EMPOWER, helped
immensely in designing the reengineered to-be process design.

Implementing the changes in processes was only possible with

the full ownership, involvement & support of our MD & all
members of top management. These changes helped to
improve process efficiencies, add controls, reduce costs or
improve quality.

Field sales integration: Considering the remote areas of

PPL’s sales footprint in India, the field sales integration was
more of technology challenge, than any other. As, even a
reliable internet connection was not assured in these areas, we
based our solution on a software product, known as INotify,
supplied by M/s Mobien Technologies, that works based on
simple GSM SMS technology, which had a near 100% reach all
over India. INotify was customized to PPL’s needs to capture all
field-originating supply & distribution as well as sales
transactions on hand-held PDAs from Sales Officers and to
convey them to the INotify server at Corporate Office in the
form of structured SMS messages, where they are identified &
stored as transactions. Further, a nightly interface transfers all
transactions from INotify to SAP.

Initially the system suffered due to several hardware issues,

SMS losses and other issues. However, with a sincere focused
effort we could fill in all gaps to make it a robust operation. The
INotify system brought with it several benefits. It saved huge
one-time & recurring costs of software for sales personnel.
Further, it helped in simplifying the data capture procedures &
time in field, which simulated multiple lengthy & time-
consuming transactions in SAP through the SAP interface, for
the sales personnel.

27
Transition & go-live: Transition decision was strategically
very crucial for the success of the project. It required a well-
calculated balance between - continued activities of integration
test & user training to ensure reasonable quality Vs ensuring
timely go-live & project completion. Prior to go-live, master
data migration was an important task that involved crucial
decisions as well as sizable efforts. In several functions such as
Plant Maintenance, data was available only in hard copies,
entered into Excel, cleaned and uploaded into SAP.

Post-go-live stabilization: It needed about 6 months of post-

go-live duration to stabilize the SAP application, assuring
reasonably adequate knowledge/awareness levels to users,
reasonably low backlogs, error correction capabilities. During
this period, users needed sizable attention and support from
core & IT teams.

Business benefits:

In general & in principle, all users and process owners

acknowledged several benefits that resulted from the SAP
implementation initiative. As the business support offered by
the pre-project legacy applications, was quite low, in
comparison, the impact of SAP implementation was felt in a
major way, especially in operational efficiencies.

The stated objective of organization-wide integration of

business processes, was fully met through SAP. The objectives
of information based business decisions & continuous
performance monitoring, are also fulfilled to a large extent.
However, these are subject to continuous improvements
through fine-tuning of business processes & enhanced reporting
facilities. A reliable, robust & scalable IT infrastructure is also
well-established.

27
Some of the important business benefits from the project,
especially referring to business operational efficiencies, are
furnished below.

Some of the major benefits resulted from the basic

computerization of various activities, which were earlier
manually operated, as listed below.

Manual legacy operations Business benefits

implemented in SAP from computerization
Field sales integration, Well-disciplined capturing &
Supply & distribution storing of transactions with
operations & related vendor validations
accounting Single information base
Production operations at all referred by all
plants Integration with other
Integrated materials functions, especially with
valuation & accounting Finance.
Vendor accounting View & monitor process
integration with purchase efficiencies regularly &
process identify bottleneck areas
Plant maintenance of all Significantly faster business
plants operations, compared to
Quality management of all earlier manual operations.
materials.
Costing operations
Personal development &
administration
Payroll integration with
Finance
All activities of assets
management

In SAP, several accounting entries resulting out of various user

function operations, are automatically made, which is a
substantial change from the earlier legacy practice. This has
resulted in several major benefits, as detailed below.

27
Typical accounting Typical benefits
entries automated

Materials inventory & Precise & error-free

consumption entries accounting entries passed
Plant repair & maintenance directly by user transactions
entries on a realtime basis, in line
Contract labour expenses with the respective
Primary freight & handling functional transactions.
expenses No further data capture
Warehouse rent expenses efforts by Accounts users.
Miscellaneous services Perfect integration of all
expenses functions with Finance
PIS Dealer payment All reconciliations between
collections Finance & other functions,
Capital WIP through assets are substantially eliminated.
under construction Financial information
Asset transactions available real-time from
Subsidy booking functional operations
Depreciation postings No consolidation of accounts
Payroll booking across locations of PPL

Some of the important business benefits seen in individual

business functions are briefly furnished below.

Functi Business benefits

on

Finance Account reconciliations are substantially reduced.

& Bank reconciliations are also automated.
Account Inventory quantities, valuations & locations are
s well-integrated real-time with materials
transactions
Balance sheet and P&L statement are available
real-time
Reports printing avoided through queries online.

27
Material Significant reduction in overall purchase cycle
s time for stores & spares, leading to efficient
inventory management
Better visibility of materials stocks, valuations,
receipts, consumptions to all users
Substantial improvements in CBP (Consumption
Based Planning) items inventory monitoring
Quality Timely control of process parameters in FG
production, based on timely quality inspection
reports of FG, leading to significant savings in
production costs through optimized raw materials
consumption.
Improved quality inspection cycle times,
contributing to overall reduction of purchase
cycle times
Availability of quality information to all concerned
on realtime basis
Significant savings on the inventory of procured
materials stocks due to saving in quality
inspection time
Producti Long-term & short-term planning of production
on on all plants.
Close monitoring & improved scheduling of
production activities
Real-time visibility of production information, raw
materials & consumables stocks to Production &
other users
Close monitoring of plant shutdowns by reasons
Improved raw materials & other materials
procurement planning, leading to effective
prevention of stock-outs
Plant Effective planning, scheduling & monitoring of
Mainten preventive maintenance, giving substantial
ance improvement in the operations compared to
manual operations.
Effective monitoring of maintenance costs, job
status & spares consumption

27
 Repetitive cause & failure tracking for root-cause
analysis
Effective planning of spares
Marketi Online visibility of stock transfer & sales
ng, information facilitating better planning.
Supply Improved monitoring of sales, stock receipts &
& dealer payments from sales field.
Distribu Prompt & easy stock accounting of FG in field,
tion resulting in online stocks visibility
Visibility of dealer collections, resulting in
improved follow up & collections.
Sales Faster & smoother dealer invoicing & dealer
Account accounting.
s Automatic vendor liability creation in H&T
services & Warehouse rent payments.
Faster & smooth processing of H&T bills.
Faster & smooth processing of Warehouse rent
bills.

Apart from these business benefits, as can be seen from the

live operations after go-live, SAP has facilitated improving
several elements of our work culture, such as - transparency in
working, sharing of a single unified corporate vision &
information base, quicker, better, information-driven business
decisions, person-independence etc. SAP has surely brought in
the much-desired cross-functional integration of processes, and
thus, of people.

Profit loss account

(Rs crore)
Mar ' Mar ' Mar ' Mar ' Mar '
10 09 08 07 06
Income
Operating income 2,984. 5,114.4 2,451. 2,055. 1,952.7
14 4 89 63 8
Expenses
Material consumed 588.62 461.72 106.13 149.42 188.13
Manufacturing expenses - - - - -
Personnel expenses - - - - -

27
Selling expenses - - - - -
Adminstrative expenses 2,275. 4,382.4 1,914. 1,695. 1,704.6
55 2 73 27 7
Expenses capitalised - - - - -
Cost of sales 2,864. 4,844.1 2,020. 1,844. 1,892.8
16 3 86 69 0
Operating profit 119.97 270.31 431.03 210.94 59.98
Other recurring income 167.00 495.30 34.87 11.58 24.63
Adjusted PBDIT 286.97 765.61 465.90 222.52 84.60
Financial expenses 72.94 52.62 63.87 46.13 37.46
Depreciation 30.48 33.47 38.17 34.02 24.98
Other write offs - - - - -
Adjusted PBT 183.55 679.53 363.86 142.36 22.16
Tax charges 28.17 141.70 0.70 0.59 0.63
Adjusted PAT 155.38 537.83 363.16 141.78 21.53
Non recurring items - - - - -
Other non cash -3.83 -0.72 - -3.15 -9.42
adjustments 250.18
Reported net profit 151.55 537.11 112.98 138.63 12.10
Earnigs before 107.91 -43.64 - - -771.96
appropriation 551.33 634.95
Equity dividend - - - - -
Preference dividend - - - - -
Dividend tax - - - - -
Retained earnings 107.91 -43.64 - - -771.96
551.33 634.95

Balance sheet
(Rs crore)
Mar ' Mar ' Mar ' Mar ' Mar '
10 09 08 07 06
Sources of funds
Owner's fund
Equity share capital 575.45 575.45 575.45 575.45 575.45
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 107.91 -43.64 - - -771.96
580.74 664.30
Loan funds
Secured loans 1,043. 850.72 27.85 136.19 226.35
07
Unsecured loans 83.28 427.25 757.89 764.75 695.56
Total 1,809. 1,809. 780.44 812.09 725.40
72 78
Uses of funds
Fixed assets
Gross block 779.02 769.68 749.53 729.28 725.25

27
Less : revaluation reserve - - - - -
Less : accumulated 556.98 532.87 500.27 463.64 431.91
depreciation
Net block 222.05 236.81 249.25 265.64 293.34
Capital work-in-progress 14.47 4.68 7.81 3.23 2.10
Investments 6.05 821.30 - - -
Net current assets
Current assets, loans & 2,182. 2,453. 1,255. 1,029. 1,004.8
advances 50 14 45 61 5
Less : current liabilities & 615.35 1,706. 732.07 487.70 577.87
provisions 15
Total net current assets 1,567. 746.99 523.37 541.91 426.97
15
Miscellaneous expenses not - - - 1.31 2.98
written
Total 1,809. 1,809. 780.44 812.09 725.40
72 78
Notes:
Book value of unquoted 6.05 821.30 - - -
investments
Market value of quoted - - - - -
investments
Contingent liabilities - - - - -
Number of equity 57.55 57.55 57.55 57.55 57.55
sharesoutstanding (Lacs)

Ratios
(Rs crore)
Mar ' Mar ' Mar ' Mar ' Mar '
10 09 08 07 06
Per share ratios
Adjusted EPS (Rs) 270.01 934.63 631.09 246.37 37.41
Adjusted cash EPS (Rs) 322.98 992.78 697.42 305.50 80.81
Reported EPS (Rs) 263.36 933.37 145.21 189.89 21.03
Reported cash EPS (Rs) 316.33 991.53 211.53 249.02 64.44
Dividend per share - - - - -
Operating profit per share 208.49 469.74 749.03 366.56 104.22
(Rs)
Book value (excl rev res) 1,187.5 924.17 -9.20 -156.68 -346.68
per share EPS (Rs) 3
Book value (incl rev res) 1,187.5 924.17 -9.20 -156.68 -346.68
per share EPS (Rs) 3
Net operating income per 5,185.7 8,887. 4,260.8 3,572.2 3,393.4
share EPS (Rs) 5 73 3 1 8
Free reserves per share - -75.83 - - -
EPS (Rs) 1,009.2 1,156.6 1,346.6
0 8 8
Profitability ratios

27
Operating margin (%) 4.02 5.28 17.57 10.26 3.07
Gross profit margin (%) 2.99 4.63 16.02 8.60 1.79
Net profit margin (%) 4.80 9.57 3.36 5.28 0.61
Adjusted cash margin (%) 5.89 10.18 16.13 8.50 2.35
Adjusted return on net 22.73 101.13 - - -
worth (%)
Reported return on net 22.17 100.99 - - -
worth (%)
Return on long term funds 14.17 40.45 54.80 23.21 8.21
(%)
Leverage ratios
Long term debt / Equity 1.65 2.40 - - -
Total debt/equity 1.65 2.40 - - -
Owners fund as % of total 37.76 29.38 -0.67 -10.94 -27.09
source
Fixed assets turnover ratio 3.83 6.64 3.27 2.82 2.69
Liquidity ratios
Current ratio 3.55 1.44 1.71 2.11 1.74
Current ratio (inc. st 3.55 1.44 1.71 2.11 1.74
loans)
Quick ratio 2.88 1.11 1.42 1.52 1.17
Inventory turnover ratio 7.99 9.28 11.41 7.19 5.93
Payout ratios
Dividend payout ratio (net - - - - -
profit)
Dividend payout ratio - - - - -
(cash profit)
Earning retention ratio 100.00 100.00 100.00 100.00 100.00
Cash earnings retention 100.00 100.00 100.00 100.00 100.00
ratio
Coverage ratios
Adjusted cash flow time 6.06 2.24 1.96 5.12 19.82
total debt
Financial charges 3.93 14.55 7.29 4.82 2.26
coverage ratio
Fin. charges cov.ratio 3.50 11.84 2.91 4.11 1.99
(post tax)
Component ratios
Material cost component 16.66 10.82 4.32 7.26 10.22
(% earnings)
Selling cost Component - - - - -
Exports as percent of total - - - - -
sales
Import comp. in raw mat. - - - - -
consumed
Long term assets / total 0.10 0.30 0.16 0.20 0.22
Assets

27
Marketing
PPL's wide range of specially formulated fertilizers are
marketed under the brand name 'NAVRATNA' catering to
almost all types of crops. The products are well established
and are sold through private and institutional channels
throughout the country. Aggressive marketing initiatives
have been undertaken to increase market share of these
specially formulated fertilizers throughout the marketing
territory.

Besides manufactured products, PPL also markets its by-

product Phospho-Gypsum which is used for soil conditioning
in alkaline soils. Phospho-Gypsum enriches soil with Calcium
and Sulphur, thus increasing the yield. Phospho-Gypsum is
also being promoted as supplement for sulphur deficient
soils. Gypsum is also preferred by cement and brick
industries. PPL imports and markets Muriate of Potash (MOP)
through its network of private and institutional trade
throughout the country.

PPL has been undertaking rural upliftment programmes in

selected districts where fertilizer consumption is very low.
Soil sample collection, analysis and recommendation of
balanced fertilizer use are critical inputs for educating
farmers on soil health and balanced fertilization. Field
demonstrations on a package of practices for effective
utilization of agro inputs like seeds, fertilizers, pesticides and

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timely irrigation are carried out throughout PPL's marketing
territory. Crop seminars, farmers' meetings, distribution of
crop and product literature, publicity van campaigns,
retailers' meet and training to farmers are also carried out by
qualified field staff in the marketing areas.

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CONCLUSION
Indian is a developing country.Most of its
people are dependent on farming so Paradeep
phosphate limited helps them by producing
fertilizer.The training is properly provided to
employees for its development.But recent
scenario the product of Paradeep phosphate
limited that "NAVARATN DAP" is banned.
Vision and mission:-
Vision:-
To be the one-stop solution for the farm
economy

Mission:-
To create value for farmers and stakeholders by
providing integrated agri solutions to all farm
needs.

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 BIBLIOGRAPHY
Website:
www.paradeepphosphates.com
www.adventz.com
www.indiankanoon.org
www.freewebs.com/epgorissa

Newspapers
1.India Today
2.Business Times
3.Economics Times
4.Indian Express
5.The Hindu

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