I

A
Project report on
Distribution channel of
Agrochemicals
At
Gujarat Insecticides Limited

Ankleshwar
In the fulfilment for the degree of MBA
Masters in Business Administration, 2017

Narmada College of Management, Bharuch

Internal Guide: Dr. Chetna Makwana
External guide: Mahesh Patel
Submitted by: Bhumika Sanjay Patil
Enrolment Number: 167370592039

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Narmada Education & Scientific Research Societys

NARMADA COLLEGE OF MANAGEMENT - 737

(Approved by AICTE & affiliated to Gujarat Technological

University)

ZADESHWAR, BHARUCH 392011.

Phone :- (02642) 231466, Fax :- (02642) 230595

230595

E-Mail :- Web :-
[email protected] www.ncmbharuch.org

Institute's Certificate

This is certified that Summer Internship Project report titled

Distribution channel of Agrochemicals and pesticides is the
bonafied work of Patil Bhumika Sanjay Bhai (Enrollment-
167370592039) who carried out the research under my supervision. I
also certify further, that to the best of my knowledge the work
reported here in does not form part of any other project report or
dissertation on the basis of which a degree or award was conferred
on an earlier occasion on this or any other certificate.

Faculty Guide Director

(Dr. Chetna Makwana) (Dr. Trupti Almoula)

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DECLARATION

I, the undersigned, hereby declare that the project report entitled DISTRIBUTION
CHANNEL in GIL (Gujarat Insecticides Limited) Ankleshwar. Submitted to Gujarat
Technical University, in partial fulfilment of the requirement for the award of MBA
Masters in Business Administration under the guidance of Dr. Chetna Makwana. My
original work and conclusions drawn there in is based on the material collected by myself.
The report submission is my work has not been duplicated from any source. I shall be
responsible for any unpleased moment/situation.

Place: Bharuch

Date:

Student Name: Bhumika S. Patil

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ACKNOWLEDGEMENT

A successful project is the result of team work and co-ordination that includes not only the
group of developers who put forth the ideas, logic and efforts but also those who guide
them. So, at the completion of the project, I feel obliged to extent my gratitude towards all
those who made valuable contributions throughout my training period.

I am thankful for all knowledge, guidance and support imparted by Mr. Mahesh Patel to
guide me who gave me invaluable knowledge during the project.

In addition, I wish to convey deep sense of gratitude towards Dr. Chetna Makwana Who
was there to help anytime I needed. At the end just as significantly I would like to express
my sincere thanks to who have provided me excellent knowledge and support throughout.

Bhumika S. Patil

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Table of Contents

SR. NO TITLE PAGE

NO
Chapter 1 Industry profile
Introduction
Agrochemicals &pesticide use
Application techniques
Major players in Indian market
Challenges before agrochemicals company
Growth of Indian agrochemicals company
Chapter 2 Company profile
Introduction
Board of director
Role of GIL at global presence
Company profile
GIL awards
Chapter 3 Departmental structure
Finance department
Sales accounting department
QC department
Purchase department
Safety department
HR department
Marketing department
Chapter 4 Distribution channel at GIL (Introduction to
the topic)
Executive summery
Literature review
Background of the problem
Proposed study
Method of data collection
Distribution channel at GIL
Types of distribution channel
Importance of distribution channel
Role of distribution channel
Chapter 5 Data analysis and interpretations
Chapter 6 Result and findings
Chapter 7 Recommendation
Chapter 8 Limitations
Chapter 9 Bibliography and annexure

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ABSTRACTS

The project is about studying, optimising and controlling the functions carried out by
each department in GIL.
Studying the SOPs and risks associated with each sub process carried out by the
organization.
Initially, it is very important to study and understand each department and their
working and scope of work.
The understanding working of the department we first need to go through the SOPs
of each department and process.
Then after SOPs one of the important aspect is interaction with the employees and
their way of working.
It is also important to attend the problems and suggestions of employee.
Next step will be to understand the IFC guidelines applicable in the present session
and rules regarding it.
Identify the topics and points which are applied to us and also evaluate its
importance.
Collection of documents which prescribes control as started is to be done as next
step.
Finally, we need to produce the scripts pertaining to each documents and each risk.
This process is to be carried out by organization.
And its verification will be done by the organizations internal Chartered Accountant
audit firm.

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CHAPTER: 1
INDUSTRY PROFILE

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Introduction of GIL

Introduction of agro chemical industry

Agrochemical and agrichemical, a contraction of agricultural chemical, is a generic
term for the various chemical products used in agriculture. In most cases,
agrichemical refers to the broad range of pesticides, including insecticide,
herbicides, and fungicides and concentrated of raw material manure.

Agrochemical Types

Agrochemicals Pesticides

Key segments
Insecticides: - Insecticide is used to ward off of kill insects. Consumption of insecticides for
cotton has come down to 50% from 63% of total volume after introduction of BT cotton.

Fungicides: - fungicides are used to control disease attacks on crops. The growing
horticulture to the government market in India owing to the government support has given a
boost to fungicide usage.

Herbicides: - Herbicides are the fastest growing segment of agrochemicals. Their main
competition is cheap labour which is employed to manually pull out weeds.

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Bio-pesticide: - These are pesticides derived from natural substances like animal, plants,
and certain minerals. Currently a small segment, bio-pesticides market is expected to grow
in the future owing to government support and increasing awareness about use of non-toxic,
friendly pesticide.

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Agrochemical & pesticides use

An agrochemical or agrichemical, a contraction of agricultural chemical, is

a chemical product used in agriculture. In most cases, agrichemical refers
to pesticides including insecticides, herbicides, fungicides and nematicides.

Pesticides are used to control various pests and disease carriers, such as
mosquitoes, ticks, rats and mice. Pesticides are used in agriculture to control
weeds, insect infestation and diseases. Herbicides to kill or inhibit the growth of
unwanted plants, also known as weeds. Insecticides to control insects.

The term pesticide covers a wide range of compounds including insecticides,

fungicides, herbicides, rodenticides, molluscicides, nematicides, plant growth
regulators and others. Among these, organochlorine (OC) insecticides, used
successfully in controlling a number of diseases, such as malaria and typhus, were
banned or restricted after the 1960s in most of the technologically advanced
countries. The introduction of other synthetic insecticides organophosphate (OP)
insecticides in the 1960s, carbamates in 1970s and pyrethroids in 1980s and the
introduction of herbicides and fungicides in the 1970s1980s contributed greatly to
pest control and agricultural output. Ideally a pesticide must be lethal to the targeted
pests, but not to non-target species, including man. Unfortunately, this is not the
case, so the controversy of use and abuse of pesticides has surfaced. The rampant
use of these chemicals, under the adage, if little is good, a lot more will be better
has played havoc with human and other life forms.

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History

The practice of agriculture first began about 10,000 years ago in the Fertile Crescent of
Mesopotamia (part of present day Iraq, Turkey, Syria and Jordan) where edible seeds were
initially gathered by a population of hunter/gatherers1. Cultivation of wheat, barley, peas,
lentils, chickpeas, bitter vetch and flax then followed as the population became more settled
and farming became the way of life. Similarly, in China rice and millet were domesticated,
whilst about 7,500 years ago rice and sorghum were farmed in the Sahel region of Africa.
Local crops were domesticated independently in West Africa and possibly in New Guinea
and Ethiopia. Three regions of the Americas independently domesticated corn, squashes,
potato and sunflowers.

It is clear that the farmed crops would suffer from pests and diseases causing a large loss in
yield with the ever present possibility of famine for the population. Even today with
advances in agricultural sciences losses due to pests and diseases range from 10-90%, with
an average of 35 to 40%, for all potential food and fibre crops3. There was thus a great
incentive to find ways of overcoming the problems caused by pests and diseases. The first
recorded use of insecticides is about 4500 years ago by Sumerians who used sulphur
compounds to control insects and mites, whilst about 3200 years ago the Chinese were using
mercury and arsenical compounds for controlling body lice4. Writings from ancient Greece
and Rome show that religion, folk magic and the use of what may be termed chemical
methods were tried for the control of plant diseases, weeds, insects and animal pests. As
there was no chemical industry, any products used had to be either of plant or animal
derivation or, if of mineral nature, easily obtainable or available. Thus, for example, smokes
are recorded as being used against mildew and blights. The principle was to burn some
material such as straw, chaff, hedge clippings, crabs, fish, dung, ox or other animal horn to
windward so that the smoke, preferably malodorous, would spread throughout the orchard,
crop or vineyard. It was generally held that such smoke would dispel the blight or mildew.
Smokes were also used against insects, as were various plant extracts such as bitter lupin or
wild cucumber. Tar was also used on tree trunks to trap crawling insects. Weeds were
controlled mainly by hand weeding but various chemical methods are also described such
as the use of salt or sea water5,6. Pyrethrum, which is derived from the dried flowers
of Chrysanthemum cinerariaefolium Pyrethrum daisies, has been used as an insecticide
for over 2000 years. Persians used the powder to protect stored grain and later, Crusaders
brought information back to Europe that dried round daisies controlled head lice7. Many
inorganic chemicals have been used since ancient times as pesticides8, indeed Bordeaux
Mixture, based on copper sulphate and lime, is still used against various fungal diseases.

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Application techniques of Agrochemicals & pesticides

Pesticide application refers to the practical way in which pesticides,

(including herbicides, fungicides, insecticides, or nematode control agents) are delivered to
their biological targets (e.g. pest organism, crop or other plant). Public concern about the
use of pesticides has highlighted the need to make this process as efficient as possible, in
order to minimise their release into the environment and human exposure (including
operators, bystanders and consumers of produce). The practice of pest management by the
rational application of pesticides is supremely multi-disciplinary, combining many aspects
of biology and chemistry with: agronomy, engineering, meteorology, socio-
economics and public health, together with newer disciplines such
as biotechnology and information science.

Seed treatment: Seed treatments can achieve exceptionally high efficiencies, in terms
of effective dose-transfer to a crop. Pesticides are applied to the seed prior to planting, in the
form of a seed treatment, or coating, to protect against soil-borne risks to the plant;
additionally, these coatings can provide supplemental chemicals and nutrients designed to
encourage growth. A typical seed coating can include a nutrient layer
containing nitrogen, phosphorus, and potassium, a rhizobial layer
containing symbiotic bacteria and other beneficial microorganisms, and a fungicide (or other
chemical) layer to make the seed less vulnerable to pests.

Spray application: One of the most common forms of pesticide application,

especially in conventional agriculture, is the use of mechanical sprayers. Hydraulic sprayers
consist of a tank, a pump, a lance (for single nozzles) or boom, and a nozzle (or multiple
nozzles). Sprayers convert a pesticide formulation, often containing a mixture of water (or
another liquid chemical carrier, such as fertilizer) and chemical, into droplets, which can be
large rain-type drops or tiny almost-invisible particles. This conversion is accomplished by
forcing the spray mixture through a spray nozzle under pressure. The size of droplets can be
altered through the use of different nozzle sizes, or by altering the pressure under which it is
forced, or a combination of both. Large droplets have the advantage of being less
susceptible to spray drift, but require more water per unit of land covered. Due to static
electricity, small droplets are able to maximize contact with a target organism, but very still
wind conditions are required.

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A manual backpack- type spray

Spraying pre- and post-emergent crops: Traditional agricultural crop

pesticides can either be applied pre-emergent or post-emergent, a term referring to
the germination status of the plant. Pre-emergent pesticide application, in conventional
agriculture, attempts to reduce competitive pressure on newly germinated plants by
removing undesirable organisms and maximizing the amount of water, soil nutrients, and
sunlight available for the crop. An example of pre-emergent pesticide application
is attained application for corn. Similarly, glyphosatemixtures are often applied pre-
emergent on agricultural fields to remove early-germinating weeds and prepare for
subsequent crops. Pre-emergent application equipment often has large, wide tires designed
to float on soft soil, minimizing both soil compaction and damage to planted (but not yet
emerged) crops. A three-wheel application machine, such as the one pictured on the right, is
designed so that tires do not follow the same path, minimizing the creation of ruts in the
field and limiting sub-soil damage

Large self-propelled agricultural 'floater' sprayer, engaged in pre-

emergent pesticide application

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Spraying inefficiencies: In order to better understand the cause of the spray

inefficiency, it is useful to reflect on the implications of the large range of droplet sizes
produced by typical (hydraulic) spray nozzles. This has long been recognized to be one of
the most important concepts in spray application (e.g. Himel, 1969]), bringing about
enormous variations in the properties of droplets.
Historically, dose-transfer to the biological target (i.e. the pest) has been shown to be
inefficient. However, relating "ideal" deposits with biological effect is fraught with
difficulty]), but in spite of Hislops misgivings about detail, there have been several
demonstrations that massive amounts of pesticides are wasted by run-off from the crop and
into the soil, in a process called endow-drift. This is a less familiar form of pesticide drift,
with ex. drift causing much greater public concern. Pesticides are conventionally applied
using hydraulic atomisers, either on hand-held sprayers or tractor booms, where
formulations are mixed into high volumes of water

Spraying inefficiency

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Pesticides application cycle

Seed treatments

Quality and
Assessment of Spray application
Equipment

Spraying
Improved targeting
inefficiencies

Spraying pre- and

Herbicide
post-emergent
volatilisation
crops

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Major players in Indian market

TOP 10 PESTICIDES COMPANIES IN

INDIA 2017

Company Name Market Capitalization (Cr)

Bayer CropScien 13498.69
PI Industries 11502.24
Rallis India 4772.27
Monsanto India 4350.21
Sharda Crop 4212.39
Dhanuka Agritec 3993.31
Bharat Rasayan 1215.12
Insecticides 1111.93
Meghmani Organi 951.14
Nagarjuna Agric 424.71

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Challenges before Agrochemical Company

High R&D costs since R&D to develop a new agrochemical molecule takes an
average of 9 years and approx USD 180 Mn Indian companies typically have not
focused on developing newer molecules and will face challenges in building these
capabilities, while continuing to remain cost competitive.
Genetically modified seeds possess self-immunity towards natural adversaries which
have the potential to negatively impact the business of agrochemicals.
Since, the number of end users is large and widespread, effective distribution via
retailers is essential to ensure product availability. Lately, companies have been
directly dealing with retailers by cutting the distributor from the value chain thereby
reducing distribution costs, educating retailers on product usage and offering
competitive prices to farmers.
Support for Integrated Pest Management (IPM) & rising demand for organic
farming.
Some agro-chemicals are extremely hazardous to the health of workers and the
general public and also to the environment. However they can be used safely if
proper precautions are taken. One main obstacle in achieving safe working
conditions is the wide geographical distribution of agricultural workers, who are
often considered self employed.
Agro-chemicals are used world-wide to improve or protect crops and livestock.
Fertilizers are applied to obtain good yields from crops that are protected from
insects and diseases by the timely use of pesticides. Animals are similarly protected
from parasites and diseases by veterinary treatment such as vaccination, oral dosing
or immersion dipping.
Agrochemicals are the chemicals used in agriculture, including chemical fertilizers,
herbicides, and insecticides. Most are mixtures of two or more chemicals; active
ingredients provide the desired effects, and inert ingredients stabilize or preserve the
active ingredients or aid in application.
Some agro-chemicals are extremely hazardous to the health of workers and the
general public and also to the environment. However they can be used safely if
proper precautions are taken. One main obstacle in achieving safe working
conditions is the wide geographical distribution of agricultural workers, who are
often considered self employed.

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Growth of Indian Agrochemical Company

Indian agrochemical industry, which is estimated at $ 4.4 billion in FY15, is expected to
grow at 7.5 percent annually to reach $ 6.3 billion by FY20, with domestic demand growing
at 6.5 percent per annum and export demand at 9 percent per annum, according to a report
jointly presented by Tata Strategic Management Group (TSMG) and FICCI at the latters
sixth National Conference on Agrochemicals 2016 in New Delhi.
The report - titled as Next generation Indian agriculture: Role of crop protection solutions
- was released by Hukumdev Narayan Yadav, chairman, Standing Committee of Parliament
on Agriculture and Farmers Welfare. Agrochemicals play a critical role in ensuring food
and nutrition security of the nation. With estimated 355 MMTPA (million metric tonne per
annum) food grain requirement by 2030 from current 253 MMTPA, efficient usage of crop
protection products and solutions for Indian agriculture are the need of the hour. In order to
realise the true potential, industry, government and regulatory bodies need to work in
tandem and embrace digital technologies to further improve farmer connect, commented
Manish Panchal, senior practice head - chemicals & energy at Tata Strategic
Management Group.
As per the report, the industry is dominated by insecticides accounting for 60 percent of the
overall demand,
Followed by fungicides and herbicides contributing 18 percent and 16 percent, respectively.
The report highlights the changing food consumption patterns in India, demand patterns and
future growth potential of crop protection industry in India. As per the report, there is a need
of crop protection and crop enhancement solutions to overcome the challenges faced by
Indian agriculture in ensuring food and nutritional security of the nation. To ensure
sustainable agriculture in the country, it has also suggested adoption of the best global
practices and the latest technologies which include agronomy, fustigation, seed treatment
and biotechnology development.

As per the report, the industry is dominated by insecticides accounting for 60 percent of the
overall demand, followed by fungicides and herbicides contributing 18 percent and 16
percent, respectively. The report highlights the changing food consumption patterns in India,
demand patterns and future growth potential of crop protection industry in India. As per the
report, there is a need of crop protection and crop enhancement solutions to overcome the
challenges faced by Indian agriculture in ensuring food and nutritional security of the
nation. To ensure sustainable agriculture in the country, it has also suggested adoption of the
best global practices and the latest technologies which include agronomy, fertigation, seed
treatment and biotechnology development.

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The Indian agriculture sector is currently facing critical challenges like reduction in arable
land, decreasing farm size, increasing pest attacks, low per hectare yield and a shift towards
animal products consumption, all of which are leading to demand outpacing supply in the
countrys food chain. Agrochemicals could play a significant role in overcoming this
imbalance. Indian crop protection market is supported by strong growth drivers. Current
consumption of crop protection products in India at 0.6 kg per hectares (ha), is much lower
than the world average of 3 kg per ha. This offers immense opportunities for future growth.
With several products going off-patent globally, the sector is opening opportunities for
generics, contract manufacturing & research for Indian players who can leverage their large
scientific talent pool.

Despite the strong growth drivers, Indian agrochemicals industry faces challenges in terms
of low awareness among farmers and rising sales of non-genuine products (approximately
25 percent by volume). With large number of end users spread across the vast geography,
managing availability through a distribution network is a challenge for all the major players.
A collaborative approach by the industry, government & regulatory bodies is the need of the
hour to realise full potential of the agrochemicals industry.

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Chapter: 2
Company Profile
Gujarat Insecticides Ltd (GIL)

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GUJARAT INSECTICIDES LIMITED

ANKLESHWAR
Gujarat Insecticides Ltd (GIL) was established as a joint sector company in 1980, with an
aim to manufacture sophisticated and modern technical grade pesticides. The promoters of
the Company were M/s Gujarat Agro Industries Corporation Ltd, Ahmedabad, a
Government of Gujarat Enterprise and M/s Gharda Chemicals Ltd, Mumbai, a company
engaged in Research & Development and also in manufacturing of pesticides,
intermediates. In August 1996, M/s Gharda Chemicals Ltd purchased the entire holdings of
M/s Gujarat Agro Industries Corporation Ltd. Since then Gujarat Insecticides Ltd became
the subsidiary of M/s Gharda Chemicals Ltd, Mumbai.

GIL has set up new records by manufacturing technical pesticides in the Country with
indigenously developed technical know-how.? Formerly, such pesticides were either
imported or produced in foreign multi-national sectors. In July 2008 the Company has
obtained the IMS? (Integrated Management Systems) Certification, which covers ISO 9001
Quality Management System, ISO 14001 Environmental Management System and OHSAS
18001 (Occupational Health & Safety Audit System)?

GIL also actively participates in educational, social and rural development

projects. Ankleshwar Taluka Educational Development programmes, Mobile Library
Projects, Mobile Laboratory Projects, and Mobile Medical Van for rural areas, tree
plantations in GIDC area as well as adjoining villages, adopting villages for their betterment
and participating in State Governments? Gokul Gram Yojna etc are covered under this
projects for which the Company was awarded the Social Responsibility award in 1998
by ICMA, Mumbai.

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Industrial overview (Globally)

The global agrochemical industry is expected to reach an estimated value of $261.9 billion
by 2019. The major drivers of agrochemical industry are increasing demand for food with
rising population and consumer awareness associated with the benefits of fertilizers and
pesticides in crops production.

World top ten agrochemical companies in 2016

Company name Sales % Market share

Sygenta $7458m 19%

(Switzerland)
BASF(Germany) $7285m 19%
Dow Agro Science (USA) $4297m 11%
Monsanto (USA) $3779m 10%
Bayer (Germany) $3599m 9%
Dupont (USA) $2369 6%
Makhteshim Agan (Israel) $1895m 5%
Nufarm (Australia) $1470m 4%
Sumitomo Chemical (Japan) $1029m 3%

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Industrial overview (Nationally)

India is the 4th largest producer of agrochemicals globally, after USA, Japan, and China.
The agrochemicals industry is a significant industry for the Indian economy. The Indian
agrochemicals market grew at a rate of 11% from USD 1.22billion in FYO8 to an estimate
USD 1.36 billion FYO9. Indias agrochemicals consumption is one of the lowest in the
world with per hectare cons umpteen of just 0.58 kg compare to US (4.5 kg/ha) and Japan
(11 kg/ha). Indian population is increasing and the per capita size of land is decreasing, the
USA pesticide in India has to improve further.

Top ten Agrochemical companies in India

1. Bayer Crop Science Ltd

2. PI Industries Ltd
3. Dhenuka Agritech Ltd
4. Monsanto India Ltd
5. Rallis India Ltd
6. Sharda Crop Chem. Ltd
7. Excel Crop Care Ltd
8. Insecticides India Ltd
9. Meghmani Organics Ltd
10. Bharat Rasayan Ltd

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Industry overview (Local Level)

NO COMPANY NAME LOGO

1. Eagle Plant Protect
Private Ltd

2. Sikko Industries Ltd

3. Aspire Speciality
Chemicals

4. M.J. Export

5. Sristi Innovations

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6. Aushadh Agri Science

Private Ltd

7. Redox Industries Ltd

8. Aryan Crop Protection

Pvt. Ltd

9. M.K Incorporation

10. Indichem

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Board of Directors

Dr. K.H Gharda

(Chairman &management Director)

Mr. D.H Mirani

(General Manager)

Mr.R.N Chhawsaria HP Barate

(GM Production) (DGM Productiom)

MR. HP Nagar RB MAIDMWAR

(GM QA &R&D) (DGM Project)

MR.JR Panchal HC Vyas

(GM Finance) (DGM Finance)

MR.HR Patel

(Safety Manager)

MR. AK zalwadia HM Upadhyay

(GM Marketing) (DGM Admin person & legal)

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Role of GIL at global presence

ASIA

Bangladesh - Carbendazim | Cypermethrin | Deltamethrin | Temephos

China - Deltamethrin | Cypermethrin | Alphacypermethrin
India - Cypermethrin | Anilofos | Alphacypermethrin | Chlorpyrifos | Isoproturon |
Fenvalerate | Quinalphos| Carbendazim | Mepiquat Chloride | Acetamiprid | Cartap
hydrochloride | Clodinafop | Deltamethrin | Dicamba | Fipronil | Indoxacarb | Permethrin | S
ulfosulfuron | Temephos |
Indonesia - Chlorpyrifos | Cypermethrin
Malaysia - Chlorpyrifos | Cypermethrin | Triclopyr | Anilofos
Nepal - Alphacypermethrin | Deltamethrin
Pakistan - Isoproturon
Philippines - Chlorpyrifos | Cypermethrin
S.Korea - Mepiquat Chloride
Taiwan - Chlorpyrifos | Temephos | Alphacypermethrin | Cypermethrin | Fipronil |
Metazachlor | Triclopyr
Thailand - Chlorpyrifos | Cypermethrin | Anilofos
Vietnam Deltamethrin

MIDDLE EAST

Cyprus - Temephos
Saudi Arabia - Chlorpyrifos | Deltamethrin
Turkey Alphacypermethrin

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Company policy
CORPORATE SOCIAL RESPONSIBILITY POLICY

1. PREAMBLE Gujarat Insecticides Limited is committed to the up liftment of the weaker

sections of the society and promoting social projects for the benefit of the society at large.
The Company has been spending a fair percentage of its profits on such projects. Dr K H
Gharda, the Founder and CMD of Gharda Chemicals Limited and Chairman of Gujarat
Insecticides, has way back embarked on social causes. The Company wants to take-up
upliftment of Adivasi and Backward students, in particular Girls, and wants to provide them
better educational and rehabilitation facilities.

2. INTRODUCTION In accordance with Section 135 of the Companies Act 2013 and
Schedule VII of Companies Act 2013, the Companys Corporate Social Responsibility
Policy (CSR) is enunciated.

3. OUR CSR POLICY Gujarat Insecticides Limited shall strive to reach out to the under-
privileged, needy and weaker sections of the society and to address the social, educational,
cultural, environmental and economic needs of such sections of the society. The company
shall give preference to the local area of its operations.

4. SCOPE OF CSR ACTIVITIES

(a) Gujarat Insecticides Limited has been making contributions to various charitable
institutions for furtherance of their objects in the normal course of business.

(b) The CSR initiatives of Company are in addition to the normal contributions made by
Company.

(c) The CSR Projects shall be reviewed and updated as and when deemed necessary.

Policy relating to the remuneration to Directors, Key Managerial Personnel and other
Employees:

Objectives: To have a well-defined policy for compensation to directors, key managerial personnel
and all employees, taking into consideration the objectives and long-term goals of the company. The
policy strives to implement and review the structure by regular benchmarking and which shall be
comparable with industry standards.

Executive Directors: The remuneration to the Chairman & Managing Director and Executive
Director/s shall be recommended by the NRC to the Board. The remuneration consists of fixed and
variable compensation and shall be paid by way of salary, commission, bonus and perquisites as
approved by the board and within the overall limits prescribed in the Companies Act and/or as
approved by the shareholders.

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Key Managerial Personnel, Senior Management and other Employees: The remuneration
to KMPs, senior management and other employees involves a balance between fixed and incentive
pay reflecting short and long term performance objectives appropriate to the working of the
company and its goals. The company has a scheme of profit sharing incentives which is distributed
to all employees based on a percentage of the annual profits of the company.

GUJARAT INSECTICIDES LIMITED, VIGIL MECHANISM POLICY

Gujarat Insecticides Limited ,(GIL) follows highest standards of business ethics and
management practices in the conduct of its business. The Vigil Mechanism Policy is
applicable to all employees and/or Directors in Gujarat insecticides Limited , with a purpose
to raise concerns about unacceptable, improper or unethical practices being followed in the
organization, without necessarily informing the superior. Individuals will be protected
against any adverse action and/ or discrimination as a result of such a reporting, provided it
is justified and made in good faith. The assurance and co-operation from the Management in
safeguarding the interest of the individuals who choose to report matters of principles of the
Management is reinforced by the Vigil Mechanism Policy. In the process, it is also ensured
that the Policy is not misused. This Policy is issued pursuant to Section 177 of the
Companies Act, 2013, read with Rule 7 of the Companies (Meetings of Board and its
Powers) Rules 2014.

The relevant provisions are reproduced here below:-

Section 177(9) - Every listed company or such class or classes of companies ), as may be
prescribed, shall establish a vigil mechanism for directors and employees to report genuine concerns
in such manner as may be prescribed.

Section 177(10) - The vigil mechanism under sub-section (9) shall provide for adequate safeguards
against victimisation of persons who use such mechanism and make provision for direct access to
the chairperson of the Audit Committee in appropriate or exceptional cases. Provided that the details
of establishment of such mechanism shall be disclosed by the company on its website, if any, and in
the Boards report.

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.
GIL Awards

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CHAPTER: 3
DEPARTMENTAL STRECTURE

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Departments at GIL

Finance department
Sales accounting department
Quality control department
Purchase department
Store department
Safety environmental health
HR department
Security department
Lab and R&D department
Sap handling team
Production department
Export import logistic
Report and maintenance department
Security department
Internal auditors

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Finance department

Finance is a field that deals with the study of investments. It includes the dynamics
of assets and liabilities over time under conditions of different degrees of uncertainty and
risk. Finance can also be defined as the science of money management. Finance aims to
price assets based on their risk level and their expected rate of return. Finance can be broken
into three different sub-categories: public finance, corporate finance and personal finance.

The part of an organization that manages its money. The business functions of a finance
department typically include planning, organizing, auditing, accounting for and controlling
its company's finances. The finance department also usually produces the
company's financial statements

Companys finance department:

8 key functions

The Past

The role of the VP Accounting will typically cover functions that look at the recent past
last month, last quarter, last year. Typical designations for this role will include the CPA,
CA, and CGA.

1. Bookkeeping and Payables/Receivables

Bookkeeping is the most basic financial activity in a company. Before a business owner
ever considers hiring a CFO, they bring in a bookkeeper, who tracks all of the transactions
in the organization, covering both sales and expenses. As the organization grows, they might

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hire more specialized payables and receivables clerks, to take over functions such as
corresponding with vendors and suppliers, above and beyond recording transactions.

2. Financial Reporting and Control

Financial Reporting and Control is the function that takes raw accounting entries and
transforms them into usable and comparable financial statements. Requiring far more
judgment than the bookkeepers role, this function involves everything from ruling on how
to implement accounting principles to designing financial processes of the organization,
selecting accounting systems, liaising with external auditors, and ensuring that there are no
gaps or oversights in existing processes.

3. Tax and Compliance

Running a business involves paying tax, and paying tax means doing a lot of calculations
and filling out a lot of forms. Often using the financial statements as a basis, along with
various other configurations of the information produced by Bookkeeping and
Payables/Receivables, the Tax and Compliance function will make sure all of the
government forms and filings are sent complete and on-time to the taxman. A strong Tax
and Compliance function will go one step beyond simple compliance, and will find ways to
minimize tax, so as to maximize the companys net income.

The Future

The role of the VP Strategic Finance typically looks to the future, using the past as a
starting point but being aware that the future doesnt always look like the past. Typical
designations or degrees for this role will include the CMA, CFA, MBA and MFIN. Note
that the larger number of headings below doesnt indicate the VP Strategic Finance works
harder than the VP Accounting!

4. Strategic Planning and Financial Planning & Analysis

This function, FP&A for short, is the true bridge between the Past and the Future. FP&A
regularly creates strategic and financial plans that forecast what financial results (sales and
expenses) will look like in future periods. Then, they compare actual resultsprepared with
the assistance of the Financial Reporting and Control functionto determine areas where
the business can improve. With this variance analysis complete, they can then prepare
more accurate forecasts for the future. A strong FP&A function will not only generate
annual forecasts but will be able to update them even over the course of a day or two, and to
run many scenarios that examine the effects of, say, losing a big customer or an economic
contraction.

5. Treasury & Working Capital Management

The key role of Treasury is to make sure that the company doesnt run out of cash. This
means, among other things, forecasting the upcoming working capital (receivables, payables

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and inventory) needs of the company, investing surplus cash in short-term instruments to
generate modest interest income, and managing currency risk.

6. Capital Budgeting

Capital Budgeting is the function responsible for selecting between the various uses of
capital, or capital projects. After all, most organizations will have money available to invest
in the business, with the hopes of either growing sales or reducing expenses. But the
opportunities for spending typically exceed the amount available to spend, so Capital
Budgeting develops business cases to evaluate and identify the most effective projects. A
strong Capital Budgeting function will not only forecast project benefits, but will also track
these benefits over time to determine whether the use of capital was as effective as
originally anticipated.

7. Risk Management

Risk Management is a function that is rapidly developing after the financial scandals of the
early 2000s (Enron, WorldCom, the Great Recession and Lehman/Bear Stearns collapse,
etc.). In the financial services industry, the function is particularly central as most
institutions run with a high amount of debt (leverage), though leaders in other industries are
also bulking up this function. Risk Management takes a hard look at some of the key risks
faced by the companycurrency, interest rate, market, operational, legal, etc.and tries to
quantify the possible impacts so that they can be mitigated as much as possible. If FP&A
looks at the base case scenario for the companys financial results, Risk Management takes
a wrecking ball to it.

8. Corporate Development & Corporate Strategy

Corporate Development and Corporate Strategy can be widely defined, but it is the area of
Finance most heavily populated by former investment bankers and management consultants.
As such, common tasks that fall to this function include sourcing and analyzing mergers &
acquisitions deals, raising debt and equity financing, making capital structure decisions and
providing insight into high level strategic decisions such as entering a new market.

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Companys finance Department:

Budget Manual
Finance department covers each and every department, for finance department, for
that the individual department is responsible to make their departments rough
budget by getting approximate amount of the probable transactions.

Each department submits their report to the finance department.

Then analysis is done and make out that given all the details are responsible or not
and then final approval is done.

After getting budget reports, final report preparation is done with some of flexibility.

After that, budget is held with MD and ED and approval is got from them.

Then the budget is finalized.

Budget Period
Budget period is 1 year followed by the GIL. i.e. 1st April to 31st March. Principal
budget factor.

Raw material availability

Shut down period

Production capacity utilization

Sales

Cost of production

Bills and payment section

The main activity of the bills and payment section is to receive the bills of the
transaction and to make payment of the bills raised.

Payment of service like civil, mechanical, electrical and instrumentation and control.
Payment of chemicals and catalyst.
Payment of due able taxes like sales tax, service tax, etc.
Make the foreign payment of imported material.

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Payment of maintenance expenses and stores expenses of the whole organization.

Payment of purchasing raw material like rock phosphate, water, power, coal, fuel oil,
natural gas, etc.

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Sales accounting department

In bookkeeping, accounting, and finance, Net sales are operating revenues earned by a
company for selling its products or rendering its services. Also referred to as revenue, they
are reported directly on the income statement as Sales or Net sales.

In financial ratios that use income statement sales values, "sales" refers to net sales,
not gross sales. Sales are the unique transactions that occur in professional selling or
during marketing initiatives.

Revenue is earned when goods are delivered or services are rendered. The term sales in
a marketing, advertising or a general business context often refers to a free in which a buyer
has agreed to purchase some products at a set time in the future. From an accounting
standpoint, sales do not occur until the product is delivered. "Outstanding orders" refers to
sales orders that have not been filled.

What are the Key Roles of the Accounting Department?

While some people may have a differing opinion, the essential roles and duties of virtually
any accounting department should include the following:

Money out making payments and keeping the bills paid

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Key Positions in an Accounting Department

Now that you know the roles of the accounting department, who are the key players. These
are the key positions that youll find across most business accounting units.

Chief Financial Officer (or CFO) CFOs are typically the head financial executive of large
businesses. They oversee the financial strategy, health of the business, and manage the rest
of the financial department. CFOs are very forward thinking and will help businesses
navigate through growth stages and downturns. With their knowledge of company finances,
they help senior management understand the financial impact of real-time decisions to
ensure the fiscal success of the business.

Their duties include financial planning, reporting and controls, short and long term business
strategy, investments, hedging, mergers and acquisitions, cash management, internal risk
management, corporate finance, auditing and accounting.

Financial Controller Financial Controllers are key players within accounting departments
and work alongside CFOs, COOs, and Financial Directors. Their function and
responsibilities include financial accounting, preparation, reporting, analysis, budgeting,
project management and more. Their key role tends to focus on immediate financial issues
and management.

Treasury Manager The treasury managers role in the accounting department revolves
around the formulation and development of treasure policies. This includes identifying the
best investment opportunities, developing great banking relations, optimizing credit
facilities, and minimizing finance costs.

Accounting Manager An accounting manager is responsible for a companys accounting

activities that include maintaining and reporting on both the cost and financial sets of
accounts but does not handle or negotiate. The accounting manager establishes and enforces
the accounting principles based on statutory requirements and auditing policy.

Chief Accounting The chief accountant holds the same responsibilities as the accounting
manager, but the role simply differs in terms of the job title.

Accounting Supervisor Shares the same responsibilities as an accounting manager and

provides support as a member of his/her team.

Accountant Accountants play a key role in finance departments such as the measurement
and interpretation of financial information. The results of their work ensure compliance, and
provide the groundwork for greater financial strategies.

Bookkeepers Bookkeepers provide the day-to-day efforts needed to record and assess
basic accounting data. They typically do not take a strategic role.

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These are just some of the main roles and functions of the accounting department in
businesses, there are many more responsibilities the accounting department is responsible
for and a number of subcategories. Those will depend upon the specific nature of your
business. For instance, inventory control and tracking, government forms and tax filings and
fund raising might be other essential areas of focus that your accounting department would
be responsible for.

Defining those responsibilities is essential for your business. While the specific roles may
vary from business to business, one thing is certain: if your accounting department does not
perform these key functions effectively and efficiently, you could be headed for some
serious (and not so pleasant) surprises. prefer to do this!), then check out our Accounting
Services to learn more.

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Quality Control Department

Quality control (QC) is a procedure or set of procedures intended to ensure that a

manufactured product or performed service adheres to a defined set of quality criteria or
meets the requirements of the client or customer.

Quality control, or QC for short, is a process by which entities review the quality of all
factors involved in production. ISO 9000defines quality control as "A part of quality
management focused on fulfilling quality requirements.

The Agrochemicals Control Section is one of the Sections of the Divisions of Legislations
of the Department of Agriculture. It has the responsibility to implement the legislation
concerning plant protection products and biocides. In the context of implementation of this
legislation, the Section deals with the procedures for authorising plant protection products
and biocides and the procedures for authorising the plant protection products retailer shops,
salespersons, warehouses and factories, and the workshops using biocides for professional
use. The Section ensures the implementation of legislation by carrying out the relevant
controls, both at market level and use level.

Modern humans are distinguished from other species by their extensive use of tools to
control and adapt to their surroundings. Early stone tools such as anvils had no holes and
were not designed as interchangeable parts. Mass production established processes for the

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creation of parts and system with identical dimensions and design, but these processes are
not uniform and hence some customers were unsatisfied with the result. Quality control
separates the act of testing products to uncover defects from the decision to allow or deny
product release, which may be determined by fiscal constraints. For contract work,
particularly work awarded by government agencies, quality control issues are among the top
reasons for not renewing a contract.

The simplest form of quality control was a sketch of the desired item. If the sketch did not
match the item, it was rejected, in a simple Go/no go procedure. However, manufacturers
soon found it was difficult and costly to make parts be exactly like their depiction; hence
around 1840 tolerance limits were introduced, wherein a design would function if its parts
were measured to be within the limits. Quality was thus precisely defined using devices
such as plug gauges and ring gauges. However, this did not address the problem of defective
items; recycling or disposing of the waste adds to the cost of production, as does trying to
reduce the defect rate. Various methods have been proposed to prioritize quality control
issues and determine whether to leave them unaddressed or use quality assurance techniques
to improve and stabilize production.

Quality Control Cycle

Initiate:Asses
ment is done
and it
influance
Act: Having specification
identified the and Plan:Plan
gaps, short procedures based on
falls, or assesment
failures, take results and
appropriate standards
action to
remedy

continuous
Assesment: Implement
On going Plan:
through out Qualified
the responce staffing
and after system
changes process
affects
poerations

Evallution:
Evalluate Monitoring:Mon
performance is itoring againts
there added standards &
values specifications
shortfall or no
value at all

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Purchase Department

Purchase department buys Raw Materials, Spare parts, services etc. as required by the
company or Organization. Purchase management is one of the most Crucial Area of the
Entire Organization. Thus, Needs Intensive management. Purchase is the Main Activity in
Area of Material management.

Functions of a Purchasing Department in an Organization

Procuring Materials: - One role of the purchasing department is to procure all necessary
materials needed for production or daily operation of the company or government
organization. For a manufacturing company, this might include raw materials such as iron,
steel, aluminium or plastics, but it also might include tools, machinery, delivery trucks or
even the office supplies needed for the secretaries and sales team. In a retail environment,
the purchasing department makes sure there is always sufficient product on the shelves or in
the warehouses to keep the customers happy and keep the store well-stocked. With a small
business, it is especially important to keep inventory ordering at a reasonable level;
investing large amounts of capital in excess stock could result in storage problems and in a
shortage of capital for other expenditures such as advertising or research and development.
Purchasing also oversees all of the vendors that supply a company with the items it needs to
operate properly.

Evaluating Price: - A purchasing department also is charged with continuously evaluating

whether it is receiving these materials at the best possible price in order to maximize
profitability. This can be challenging for a small business that may purchase in lesser
quantities than a larger vendor and which thus may not receive the same type of bulk
discounts. A purchasing department in a small business needs to shop around to find the best
vendors at the most reasonable prices for the company's particular size orders. Purchasing
department staff may communicate with alternate vendors, negotiate better pricing for bulk
orders or investigate the possibility of procuring cheaper materials from alternative sources
as part of their daily activities.

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Paperwork and Accounting: - Purchasing departments handle all of the paperwork

involved with purchasing and delivery of supplies and materials. Purchasing ensures timely
delivery of materials from vendors generates and tracks purchase orders and works
alongside the receiving department and the accounts payable department to ensure that
promised deliveries were received in full and are being paid for on time. In a small business,
this means working closely with the accounting department to ensure that there is sufficient
capital to buy the items purchased and that cash is flowing smoothly and all payments are
made on time.

Policy Compliance: - The purchasing department also must ensure that it is complying with
all company policies. For example, in a small business, individual staff members may
communicate with the purchasing department about purchasing needs for things such as
office supplies or computers. Before making a purchase, the purchasing department must
ensure that it heeds the proper protocols for purchase and budget approval and must ensure
that any items are purchased in accordance with the overall purchasing policy of the
organization.

Activities of purchase Department

The basis and main activity of purchase department is to purchase the right
thing at the right time which fulfils the need of the required part in the
organization.
1st one has to get the requisition from the users.
Then to find suitable vendors who offer best services and having suitable terms and
condition at lowest price.
If required make negotiations with supplier.
Make follow up to get material as soon as possible.
The duty of purchase department is over when material is reached to store as per all
our aspects.

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Steps involved:
1. Receipt requisition

2. Decide numbers of vendors

3. Approval of vendor list

4. Floating of inquiry

5. Receipt of tender

6. Vendor rating

7. Technical recommendation

8. Approval from finance department

9. Placing the orders

10. Follow up

11. Pre dispatch inspection

12. Goods receipt note

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Warehouse

Warehouse is a commercial building for storage of goods. Warehouses are used

by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.
They are usually large plain buildings in industrial areas of cities, towns and villages.

They usually have loading docks to load and unload goods from trucks. Sometimes
warehouses are designed for the loading and unloading of goods directly
from railways, airports, or seaports. They often have cranes and forklifts for moving goods,
which are usually placed on ISO standard pallets loaded into pallet racks. Stored goods can
include any raw materials, packing materials, spare parts, components, or finished goods
associated with agriculture, manufacturing and production. In Indian English a warehouse
may be referred to as a go down.

Functions of warehouse

(1) Storage:
This is the basic function of warehousing. Surplus commodities which are
not needed immediately can be stored in warehouses. They can be supplied
as and when needed by the customers.

(2) Price Stabilization:

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Warehouses play an important role in the process of price stabilisation. It is achieved by the

creation of time utility by warehousing. Fall in the prices of goods when their supply is in

abundance and rise in their prices during the slack season are avoided.

(3) Risk bearing:

When the goods are stored in warehouses they are exposed to many risks in the form of

theft, deterioration, exploration, fire etc. Warehouses are constructed in such a way as to

minimise these risks. Contract of bailment operates when the goods are stored in

warehouses.

(4) Financing:

Loans can be raised from the warehouse keeper against the goods stored by the owner.

Goods act as security for the warehouse keeper. Similarly, banks and other financial

institutions also advance loans against warehouse receipts. In this manner, warehousing acts

as a source of finance for the businessmen for meeting business operations.

(5) Grading and Packing:

Warehouses now-a-days provide the facilities of packing, processing and grading of goods.
Goods can be packed in convenient sizes as per the instructions of the owner.

Types of Warehouses:
Warehouses can be classified into four groups viz:
(a) Private warehouses

(b) Public warehouses

(c) Bonded warehouses

(d) other type of warehouses

(a) Private Warehouses:

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Private warehouses are constructed and owned by the business enterprises in order to store

the products produced by them. These are exclusively owned and used by the producers

themselves and are not meant for other manufacturing or business units.

On account of heavy cost of construction and maintenance of these warehouses, there

number is quite small. Only big business houses can afford to have such type of warehouses.

(b) Public Warehouses:

These are also known as duty paid warehouses. A public warehouse or duty paid warehouse

is one which is open for public at large. Most of the business organisations, especially small

and medium scale, cant afford to have their own warehouses on account of large financial

investment in their construction and maintenance.

They make use of these types of warehouses, which may be owned by an individual or some

agency whose main object is to provide storage facilities to people for certain fees or

charges. These warehouses operate within rules and regulations formed by the government.

Public warehouses are very useful to businessmen. These warehouses are usually situated

near railway lines or main roads, so as to provide quick transportation services. Goods lying

in the warehouse can be hypothicated to banks and other financial institutions for getting

loan and financial assistance.

Public warehouses ensure greater security and handling of goods on account of latest

mechanical devices used in handling and preserving the goods. Goods can be branded,

graded and packed in desired sizes in the warehouses.

(C) Bonded Warehouses:

Bonded warehouses are used for imported goods which are not granted
clearance on account of non-payment of custom duty by the importer of

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these goods. Such warehouses are situated near the ports. Goods cant be
removed from these warehouses until the custom duties are paid.

Bonded warehouses may be run by the government or private agencies

(when granted licenses to operate such warehouses). In both the cases there
is a strict control and supervision imposed by custom authorities on their
operation and functioning.

Importer of the goods has some control over his goods and he can inspect
and check the goods as and when he wants. After making part payment of
the custom duty, goods can be proportionately withdrawn from these
warehouses.

Goods kept in these warehouses can be branded, packed, graded, labeled

and canned in the warehouse itself. Bank loans can be raised with the help
of receipt issued by these warehouses by giving that receipt as collateral
security.

There is a least possibility of goods being exposed to any risk of theft,

damage and deterioration. The entrepot trade i.e., re-export of imported
goods is greatly facilitated as the importer can have the delivery of goods
without paying any custom duty.

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Safety department

The Department of Safety was an artist-run community space founded in 2002, located
in Anacortes, Washington's old police and fire station. It housed an all-ages music venue, art
gallery, artist residency program, zine library, darkroom, artists' studios and living amenities
for a handful of residents. Department of Safety provided hostel accommodations for
travellers from 2002 until 2005, when the operators decided to focus on the Artist in
Residence program. Department of Safety hosted music festivals, workshops, high school
classes, Hundreds of concerts, art exhibits, recording sessions, weddings, Halloween parties
and lectures.

As defined by the World Health Organization (WHO) "occupational health deals with all
aspects of health and safety in the workplace and has a strong focus on primary prevention
of hazards."[6] Health has been defined as "a state of complete physical, mental and social
well-being and not merely the absence of disease or infirmity."[7] Occupational health is a
multidisciplinary field of healthcare concerned with enabling an individual to undertake
their occupation, in the way that causes least harm to their health. Health has been defined
as It contrasts, for example, with the promotion of health and safety at work, which is
concerned with preventing harm from any incidental hazards, arising in the workplace.

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FUNCTIONS & DUTIES OF SAFETY ORGANIZATION

Monitoring implementation of all directives issued by Rly Board & HQs in

matters pertaining to safety.
Ensuring super checks of functioning of operational & maintenance machinery
on the division.
Super check of coaching & goods trains, conduct night inspections, joint
inspections with officers of civil, engineering, S& T, electrical & Mechanical
departments.
Implementation of safety circular & safety drives on the division.
Co-ordination of improvement in crew & guard booking lobbies, running
rooms for running staff. To coordinate disaster management functions, relief,
& restoration etc. Assisting authorities in conducting inquires in serious
accidents.
Counselling & monitoring of staff involved in maintenance & operations.

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HR department

A human resources department is a critical component of employee well-being in any

business, no matter how small. HR responsibilities include payroll, benefits, hiring, firing,
and keeping up to date with state and federal tax laws.

Human Resources (HR) is concerned with the issues of managing people in the
organisation. The Human Resources department is responsible for many people related
issues in an organisation. The process of recruiting suitable candidates for the organisation.
Identifying and meeting the training needs of existing staff.

Activities of HR department

The main activity of the department is to fulfill the need of every department by
providing efficient manpower.

It is also the duty of the department to keep personal profile of each and every
employee it the organization.

HR department is to give transfer and promotion to employee.

HR department is to handover the performance appraisal o f the employees for

making the easy way for evaluation.

To keep good industrial relation within the organizational and out side the
organization

HR department is to implement the training and development program of the

employee.

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Role and importance of human resources

Human Resources (HR) is concerned with the issues of managing people in the
organisation.

The Human Resources department is responsible for many people related issues in an
organisation.

Under the HR departments remit are the following roles:

The process of recruiting suitable candidates for the organisation

Identifying and meeting the training needs of existing staff
Ensuring employee welfare and employee relations are positive
Ensure the working environment is safe for employees
Raising awareness of current workplace legislation
The Human Resources Department also covers five key roles.

Executive role in this role the HR department are viewed as the specialists in the
areas that encompass Human Resources or people management.
Audit role in this capacity the HR department will check other departments and
the organisation as a whole to ensure all HR policies such as Health & Safety,
Training, Staff Appraisal etc are being carried out in accordance with the companys
HR policy.
Facilitator role in this role, the HR department help or facilitate other departments
to achieve the goals or standards as laid out in the HR policies of the organisation.
This will involve training being delivered for issues that arise in the areas relating to
people management.
Consultancy role the HR department will advise managers on how to tackle
specific managing people issues professionally.
Service role in this capacity the HR department is an information provider to raise
awareness and inform departments and functional areas on changes in policy.

Details included in the employees personal file:

Code

Short name

Full name

Status

Date of joining

PC No.

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Gender

Father name

Date of birth

Location

Address

Designation

Social category

Blood group

Recruitment and selection process

For recruitment students who have throughout first class are called for the written
test.

Then personal interview is taken by the HR people.

Then according to the performance in the written test and personal interview
students are selected as trainees.

Training is given to the trainees under experiences staff of GIL.

Then performance of trainees is evaluated, and as per their merit job is given to
them

Types of training programs

Time management training

Effective communication training

Personality development training

Technical training

Behavioral training

Health related training

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Functions of human resource department

Appraisal

Annual Leave
Income application

Training Resignation

New hire Promotion

Manpower
requisition

Six Main Functions of a Human Resource Department

An efficiently run human resources department can provide your organization with structure
and the ability to meet business needs through managing your company's most valuable
resources -- its employees. There are several HR disciplines, or areas, but HR practitioners
in each discipline may perform more than one of the more than six essential functions. In
small businesses without a dedicated HR department, it's possible to achieve the same level
of efficiency and workforce management through outsourcing HR functions or joining a
professional employer organization.

1. Recruitment

The success of recruiters and employment specialists generally is measured by the number
of positions they fill and the time it takes to fill those positions. Recruiters who work in-
house -- as opposed to companies that provide recruiting and staffing services -- play a key
role in developing the employer's workforce. They advertise job postings, source candidates,

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screen applicants, conduct preliminary interviews and coordinate hiring efforts with
managers responsible for making the final selection of candidates.

2. Safety

Workplace safety is an important factor. Under the Occupational Safety and Health Act of
1970, employers have an obligation to provide a safe working environment for employees.
One of the main functions of HR is to support workplace safety training and maintain
federally mandated logs for workplace injury and fatality reporting. In addition, HR safety
and risk specialists often work closely with HR benefits specialists to manage the company's
workers compensation issues.

3. Employee Relations

In a unionized work environment, the employee and labour relations functions of HR may
be combined and handled by one specialist or be entirely separate functions managed by two
HR specialists with specific expertise in each area. Employee relations are the HR discipline
concerned with strengthening the employer-employee relationship through measuring job
satisfaction, employee engagement and resolving workplace conflict. Labour relations
functions may include developing management response to union organizing campaigns,
negotiating collective bargaining agreements and rendering interpretations of labour union
contract issues.

4. Compensation and Benefits

Like employee and labour relations, the compensation and benefits functions of HR often
can be handled by one HR specialist with dual expertise. On the compensation side, the HR
functions include setting compensation structures and evaluating competitive pay practices.
A comp and benefits specialist also may negotiate group health coverage rates with insurers
and coordinate activities with the retirement savings fund administrator. Payroll can be a
component of the compensation and benefits section of HR; however, in many cases,
employers outsource such administrative functions as payroll.

5. Compliance

Compliance with labour and employment laws is a critical HR function. Noncompliance can
result in workplace complaints based on unfair employment practices, unsafe working
conditions and general dissatisfaction with working conditions that can affect productivity
and ultimately, profitability. HR staff must be aware of federal and state employment laws
such as Title VII of the Civil Rights Act, the Fair Labour Standards Act, the National
Labour Relations Act and many other rules and regulations.

6. Training and Development

Employers must provide employees with the tools necessary for their success which, in
many cases, means giving new employees extensive orientation training to help them

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transition into a new organizational culture. Many HR departments also provide leadership
training and professional development. Leadership training may be required of newly hired
and promoted supervisors and managers on topics such as performance management and
how to handle employee relations matters at the department level. Professional development
opportunities are for employees looking for promotional opportunities or employees who
want to achieve personal goals such as finishing a college degree reimbursement programs
often are within the purview

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Marketing Department

A marketing department promotes your business and drives sales of its products or
services. It provides the necessary research to identify your target customers and
other audiences. Depending on the company's hierarchical organization, a marketing
director, manager or vice president of marketing might be at the helm. A marketing
department promotes your business and drives sales of its products or services. It
provides the necessary research to identify your target customers and other
audiences. Depending on the companys hierarchical organization, a marketing
director, manager or vice president of marketing might be at the helm. In some
businesses, a vice president of sales and marketing oversees both the marketing and
sales departments with a strong manager leading each department. Its important to
keep a strong marketing department intact regardless of the economy so you remain
visible and keep sales strong.

Marketing is the process by which goods and services produced are taken away from
production centers in order to be sent to customers consumption center.
In GIL. Marketing department is divided into two sections based on the different
products. Agrochemicals and pesticides
At GIL, marketing is mainly required for the agrochemicals as it is a Gharda ltd
control product and its quality and price is same through the country.
In industrial products, GIL has a well developed market in India as well as outside.
GIL being in diversified product range it needs to market each product differently
and uniquely.

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Marketing Regions

Ahmedabad
Bhopal
Mumbai
Pune
Hydrabad
Lucknow
Mohali
New Delhi
Jaipur

In marketing department there are different departments

General marketing and agriculture

Promotion mix and agriculture services

List of competitors and difference in companys product features and competitors

Customer satisfactory measurement and importance of feedback

Product mix, product life cycle, branding and packaging

Pricing method and strategy, sales volume

Distribution channel management

Transportation and movement control

Demonstration farm

Soil testing laboratory

Tissue calculate laboratory

Public relation, advertising and media planning

Difference in companys features and competitors

Particle size
Packaging

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Distribution
Handing
Customer services
Physical features

The 10 Responsibilities of Marketing Departments

1. Listening to customer needs: To establish a marketing strategy, its necessary to get

closer to the clients and listen in order to find out what their needs are. Its a marketing
department task, to plan the necessary means for receiving customer feedback:

Company Internal Channels: Create surveys or capture information of the sales team and
customer support (departments closest to the customer) that may be relevant to enhancing or
redirecting the marketing strategies in the future.

Channels outside the company: Perform searches and create actions in social networks that
help to better understand the needs of users, in order to convert them into customers.

2. Track trends and monitor competition: Similar to the previous point, its important
to know the position of the company regarding the market and the competition. Thats
why from marketing, you must watch the competition to learn what they do best or to
identify their mistakes in order to avoid falling into them.

3. Work and transmit brand values: Conceptually, a brand is a representation of the

feelings that the products, services and company shares show. The marketing
department is responsible for creating and disseminating images, messages and ideas
that best communicate the brand values.

4. Coordinate efforts with those of the marketing partners of the company: Around the
businesss marketing there are lots of contributors: publishers, designers, journalists,
consultant. The work of these contributors must be aligned with the objectives of the
company, and is the department itself who should control it to do so.

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5. Innovate: Customers need to be surprised, and every day, given the higher offer, they
are more demanding with this. The marketing department should work on new
promotions, affiliate programs, customer retention techniques, improvements in the
conversion of their messages and actions, Its not a matter of inventing entirely different
disruptive actions; youll find innovation in the small details and in the continuous
improvement.

6. Communicate with the rest of the company: A company is a chain of members

pursuing a common goal: to fulfil its mission and maximize its profits, while respecting
the principles of business ethics.

A chain is as weak as its weakest link. It doesnt matter that the commercial or production
department are doing an impeccable job, if the marketing department fails, the entire
company will fail and the efforts of other departments will be in vain. That is why the
marketing department must ensure that their actions are aligned with the overall objectives
of the company and that they report the work they are doing.

7. Help improve sales processes and customer: As mentioned above, its the
responsibility of the marketing department to know the users and especially the customers
feelings.

A good way for better knowing the customer is that all departments that have more direct
contact with the customer shall be working with the empathy maps.

8. Manage marketing budgets: Like any other department, the marketing department should
be able to plan its budget for the next years activities, stretching it in order to make the
most of it.

9. Calculate the ROI (Return Of Investment) of the companys actions: Marketing

activities are an investment of time, money and effort. As an investment, every action
should be measured in order to check whether they meet the intended objectives and in
order to compare a certain action with others. Faced with questions as should I invest in
telemarketing, social media, traditional media? The answer is unique: measure them all and
choose based on the numbers.

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10. Define strategic marketing plans: The most cost-effective strategies are those that are
planned for the long term. To do so, you must draft a document setting out the objectives
to be achieved in the following months; the actions that are to be undertaken; the
strengths of the company; the competition; the target markets In addition, these
strategic plans must also be aligned both with the strategic plan of the company and with
other departments plans.

Role of Marketing Department

Production

Sales Packaging

Advertising
Role of Distribution

Marketing
Event
Pricing
Managemant

Research
Public Relations
&Development

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A
Research report on
Distribution channel of
Agrochemicals and pesticides
At
Gujarat Insecticides Limited

Ankleshwar
In the fulfilment for the degree of MBA
Masters in Business Administration, 2017

Narmada College of Management, Bharuch

Internal Guide: Dr. Chetna Makwana
External guide: Mahesh Patel
Submitted by: Bhumika Sanjay Patil
Enrolment Number: 167370592039

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CHAPTER: 4 Introductions to the Topic

DISTRIBUTION CHANNEL At GIL

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Literature review
Introduction
Most producers do not sell their goods directly to the final user, betweenthem a stand a set o
f intermediaries performing variety of functions. The intermediaries are a chain each passing
the product down to the chain to the next organization, before it finally reaches the
consumer or end user. This process is known as the distribution chain or the
distribution channel.
Eachof the element in this chain will have their own specific needs which theproducer must
take into account along with those of all the important end-user. A distribution
channel includes several inter-connected
intermediariessuchas farmer service center, cooperative societies, distributors, whole seller e
tc.Each intermediary receives the goods at one pricing point and moves it to the next higher
pricing point until it reaches the final buyer.

1. Communication Strategies in Marketing Channels: A Theoretical Perspective

Jakki Mohr and John R. Nevin

Journal of Marketing

Though the marketing literature acknowledges that communication plays a vital role in
channel functioning, it provides no integrated theory for channel communication. The
authors build a theoretical model to help understand the role of communication in marketing
channels. They propose a contingency theory in which communication strategy moderates
the impact of channel conditions (structure, climate, and power) on channel outcomes
(coordination, satisfaction, commitment, and performance). When a communication strategy
matches the channel conditions, channel outcomes will be enhanced in comparison with the
outcomes when a communication strategy mismatches channel conditions.

2. Modelling consumer choice of distribution channels: an illustration from

financial services

Heidi Winklhofer (University of Nottingham, Nottingham, UK)

Sally McKechnie (University of Nottingham, Nottingham, UK)

With channels of distribution changing rapidly and multichannelling becoming increasingly

widespread, studies of consumers will need to focus not just on understanding product choice, but
also on understanding the reasons for channel choice. Although the choice of individual channels
and the adoption of new channels has been researched, there is little to suggest that we have a more

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general understanding of why consumers, although purchasing essentially similar products, use some
channels rather than others. Using the example of financial services, where multichannelling has
been the norm for some time, this paper reports on an exploratory study to identify those factors
which influence channel choice. Based on the results of focus group discussions, the paper argues
that channel choice in financial service can usefully be conceptualised as being determined by
consumer, product channel and organisational characteristics, with productchannel interactions and
consumerchannel interactions being particularly important.

3. Assessing Measurement Error in Key Informant Reports: A Methodological

Note on Organizational Analysis in Marketing

Lynn W. Phillips
Journal of Marketing Research

The author examines the reliability and validity of measures of organizational characteristics
used in previous marketing studies in the areas of strategic planning and distribution
channels. Key informants in 506 wholesale-distribution companies provided reports on (1)
characteristics of the firm's product portfolio and (2) characteristics of the firm's power-
dependence relations with its major suppliers and customers. In contrast to previous
investigations, which sampled only a single informant per unit of analysis, data were
collected from multiple informants in each firm. Results showed that informant reports often
achieved convergent and discriminant validity when variance due to methods factors was
explicitly modeled. However, partitioning of variance according to trait, method, and
random error components showed that informant reports often exhibited less than 50%
variance attributable to the trait factor under investigation. Implications of the findings are
discussed for those marketing studies which focus on organizations or organizational
subunits as the unit of analysis.

4. Organizing and Managing Channels of Distribution

Gary L. Frazier

During the past three decades, tremendous strides have been made in our understanding of
how firms should organize and manage their channels of distribution. Still, we have barely
touched the surface of all the managerial issues that need to be addressed. A variety of
research needs still exist regarding constructs and issues examined in prior channels
research. Furthermore, many issues of managerial importance relating to the organization
and management of channels of distribution have received no attention in empirical
research. The purpose of this article is to provide a perspective on how channels research
should proceed in the future to promote the most progress. It is hoped that the article will
help to shape the future direction of marketing thought with regard to channels of
distribution and its fundamental domain.

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5. Output Sector Munificence Effects on the Internal Political Economy of Marketing

Channels

F. Robert Dwyer and Sejo Oh

Like any system, a marketing channel will thrive only to the extent it can secure critical
resources from the environment. Using a resource dependence perspective, the authors
hypothesize that a weaker member's access to relatively munificent output markets can
mitigate a power advantage held by the channel partner that otherwise is used to
bureaucratize the channel and endanger the quality of the channel relationship. The authors
use a structural equation model to analyze data from dealer informants in the auto industry.
The results suggest munificence affects the internal workings of the channel.

6. Distribution Channels as Political Economies: A Framework for Comparative

Analysis

Louis W. Stern and Torger Reve

This paper presents a unifying framework for the analysis of distribution channels which
encompasses both economic and sociopolitical determinants of channel member behavior
and provides a suitable departure point for comparative work. The framework integrates
present approaches to the study of marketing channels and provides an essential, but
heretofore missing, basis for comprehensive empirical research in the area.

7. The Role of Interorganizational and Organizational Factors on the Decision

Mode for Adoption of Interorganizational Systems

G. Premkumar,

K. Ramamurthy

The dramatic growth of interorganizational systems (IOS) has changed the way
organizations conduct their business, and has resulted in significant tangible and intangible
benefits being realized by participating firms. However, the implementation of these IOS
requires the cooperation and commitment of all the participating members. These members
may have complex economic and business relationships among themselves that can result in
a number of social, political, and economic factors influencing the adoption and
implementation of IOS.

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This study examines the role of interorganizational and organizational factors on the
decision mode for adoption of IOS, in the specific context of electronic data interchange
(EDI). Four interorganizational factors, based on the socio-political framework derived from
research in marketing, and five organizational factors based on research in IS were used in
the study. The data for the study were collected through a large scale field survey. Two
respondents, the sales/purchase manager and the IS manager, from 201 firms responded to
the survey. The results of discriminant analysis of the data reveal that two
interorganizational variables, competitive pressure and exercised power, and two
organizational variables, internal need and top management support, are important variables
to differentiate firms with proactive decision mode from firms with reactive decision mode.

The study also evaluates the differences between proactive and reactive firms on three
implementation outcomes. Proactive firms are found to have greater extent of adaptation,
more external connectivity with trading partners, and better integration of EDI information
in their internal IS applications.

8. SupplyChain Management: The Industrial Organisation Perspective

Lisa M. Ellram

While supply chain management concepts are receiving increasing attention in

literature and practice, the supply chain management philosophy is supported by a
limited theoretical base. The industrial organisation literature related to the
advantages, disadvantages and applications of vertical integration and obligational
contracts is explored. The industrial organisation literature regarding vertical
integration and obligational contracts is related to supply chain management. The
advantages and disadvantages which supply chain management shares with vertical
integration and obligational contracts are discussed. It is concluded that supply chain
management is a way of combining many of the advantages of vertical integration
and obligational contracts, while overcoming some of their disadvantages. Using the
industrial organisation literature and findings from two case studies, prerequisites are
developed for supply chain management, and three competitive situations are
described. Supply chain management holds promise as a competitive form, provided
that certain hazards are avoided, and that a competitive advantage results.

9. International Market Entry and Expansion Via Independent or Integrated

Channels of Distribution

Erin Anderson and Anne T. Coughlan

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Manufacturers introducing an industrial product to a foreign market face a difficult decision.

Should the product be marketed primarily by captive agents (company salesforce and
company distribution division) or by independent intermediaries (outside sales agents and
distributors)? This is an issue of downstream vertical integration. The authors explore the
issue through an empirical investigation of distribution channel choice in foreign markets by
U. S. semiconductor companies. Using original interview data, they develop scales to
measure key variables. With these measures they build a logistic regression model of what
factors affect the form of the distribution channel chosen in various foreign markets. The
results indicate that integration is associated with the degree of transaction specificity of
assets in the distribution function and whether or not the product being introduced is highly
differentiated. There is evidence that the product will be sold through whatever channel is
already in place, if any. Further, American firms seem more likely to integrate the
distribution channel in highly developed industrialized countries (Western Europe) than in
Japan and Southeast Asia, which are more culturally dissimilar. Implications for managers
faced with a channel choice are explored.

10. Power Measurement in the Distribution Channel

Adel I. El-Ansary and Louis W. Stern

The measurement of power is a prerequisite for the analysis of the distribution channel as a
behavioral system. This article presents a model for power measurement and the results of a
first attempt to empirically measure power relationships within a specific channel of
distribution.

11. Electronic commerce, marketing channels and logistics platformsa

wholesaler perspective

NiklasAldin

FredrikStahreOpens

Electronic commerce may impose new demands which the supply chain has to react to,
while at the same time being an enabler of effective marketing and logistics. This paper
describes alternative strategies for wholesalers conducting electronic commerce and how
logistics may support the development of marketing channels and improve flexibility.
Related issues with logistics implications are the decisions whether or not to use multiple
channels and if intermediaries should totally bypass dealers, or rather collaborate by letting
them manage the marketing relations and bypass them logistically. The concept of logistics
platforms is discussed, based on empirical findings. Empirically the base is a case study of
an intermediary with extensive use of business-to-business electronic commerce in a supply

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chain with independent dealers. The paper compares theoretical aspects with findings from
the case and gives some indications of the potential of electronic commerce and logistics
platforms.

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Research Methodology

Background of problem: The basic purpose behind the study was to

understand the awareness about agrochemicals and effectiveness of distribution channel
because farmers are the ultimate customers of agrochemicals. In 21st century providing
services are the most important criteria to survive in this competitive world. If you want to
satisfy your customers you should understand their needs and how much they are aware
about agrochemicals and which they are using.

Proposed study:
Title of the study:

Distribution channel at GIL

Justification of title:
Today agriculture is considered as back bone of countrys economy. Due to heavy
consumption in agrochemicals industry, organizations now believe in the 3S rather
than 4P s. 3S are: sales, service, satisfaction. To understand this, focus on the
distribution channel is very important to understand this, fuscous on the distribution
channel is very important to understand customers need and provide customer
satisfaction.

Objectives of the study:

To study the pattern of agrochemical distribution.

.

To study the effectiveness of various distribution channel

To study the distribution channel of GIL.

To know companys image in distribution channel.

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To study the consumption pattern.

Research Methodology

This deals with the research methods and techniques used for the study of the distribution
channel. It includes research designs, types of data, method of data collection, analysis and
interpretation and limitation of study.

Research Design:

The objective of the study was restricted up to descriptive research design. Survey
techniques by interviewing the respondents with the help of questionnaires. In this study of
respondents are retailers and customers and co-operatives of south Gujarat.

Sample selection:

The private retailers and customers are the samples for the study of distribution channel.
The selections of the retailers are random in nature.

Sample size:

No particular technique is used to determine the sample size. However, considering

the requirement of the data and to draw definite conclusion of the study, it is decided
to collect the information from 25 retailers and 25 customers.

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Method of data collection:

Primary data is the basic need for this study. To obtain the required data, personal
interview method with the help of a questionnaire is adopted.

Secondary data are also used the for the proper understanding of the organizational
structure and to study distribution channel, and marketing of the agrochemicals and
pesticides industry.

Distribution channel at GIL

Distribution channel plays a decisive role in the business of agrochemicals &

pesticide. The nature of the business is such that without extensive channels the
products will not flow smoothly from the factories to the retailers.

Most of the channels consider their distribution channels as the important factor of
their marketing mix.

Own networks of sales depots owned and operated by them may not be cost effective
to them.

They have recognized that it is not possible to carry the channel function through
such net worth in a cost effective manner. They also depend on co- operative
channels and private trade for carrying out their distribution job.

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Distribution channel of GIL

Manufacturing Plant

Agro Industry Bulk Comp any's Own

GIL Gharda
Corporation Marketers/Retailers Outlets

District Level Private Traders

Agro State Outlets Agro Service Taluka Level Retailers/Private

Centers Societies Trader

Farmers
Farmers

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Types of Distribution Channels in Agrochemicals

In marketing, goods can be distributed using two maintypes of channels: direct distribution
channels and indirect distribution channels. A distribution system is said to be direct when
the product or service leaves the producer and goes directly to the customer with no
middlemen involved.

Manufacturers and consumers are two major components of the market. Intermediaries
perform the duty of eliminating the distance between the two. There is no standardised level
which proves that the distance between the two is eliminated.

Direct Channel or Zero Level Channels:

When the manufacturer instead of selling the goods to the intermediary sells it directly to
the consumer then this is known as Zero Level Channel. Retail outlets, mail order selling,
internet selling and selling.

1. Indirect Channels:

When a manufacturer gets the help of one or more middlemen to move goods from the
production place to the place of consumption, the distribution channel is called indirect
channel.

2. Direct Channel:

When the manufacturer or the producer supplies goods directly to the consumers is called
direct channel. The manufacturer in this stage of distribution channels performs all the
marketing functions himself. No middleman is involved. In the direct channels of
distribution, the manufacturer attempts to reach the consumers through his

Own retail stores,

House to house selling,
By mail and
By sales from the factory door.

The manufacturer to consumer link no doubt appears to be simple and low cost method of
distribution channels, but it is not practicable for marketing of the large amount of consumer
goods. Imagine for a moment, the difficulties which a producer of soap, hairpins, toothpaste,
shoe polish, cigarettes, beverages etc will face in selling the goods directly to the
consumers.

Indirect Channel

Indirect channel are also called exclusive distribution channels. It can be defined as
marketing of goods first to retailer who in turn sell it to consumers is known as Indirect
Channel of distribution. It is a most effective method of products distributions, and

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effectively used for promoting clothes, machines, automobiles, furnitures etc. The reasons
for selecting indirect channels of distribution are:

Better control on the supply of goods.

Speedy disposal of products.
Lesser expenses on selling.
Better training of sales people and
Rapid feedback.
Selective Distributive Channel

The marketing through Wholesaler is one of the widely used ways of distribution in all over
the world. These distribution Channels enables the manufacturer to sell goods in lot to a few
selected wholesalers, who sell it to retailers, who further in turn to sell products to the
consumers. The wholesaler acting as middleman, take little to the goods, assume risks,
appoint dependable retailers, provide goods on cash as well as a credit and thus spreads sale
on a wide market. These types of distribution channels are effective for the promotion of
drugs, hardware, tobacco, toys, food products etc.

Intensive Distributive Channel

In intensive distribution channels, the producer uses many wholesalers and retail middlemen
for the promotion of the product. The producer uses this route of marketing for saturating
the market with the product.

Distribution Channels for Industrial Goods

The distribution channels through which the industrial goods travel from the place of the
production to the final consumers is known as industrial distribution channels. In the
distribution of industrial goods, there are fewer middlemen and shorter channel of
distribution, which should be in your mind:-

Technical Information

The industrial goods are mostly purchased by the industrial users in large quantities. They
are therefore, purchases directly from the manufacturer of the source of supply.

Purchase in bulk

The industrial user buys products mostly of technical nature. The technical information
regarding the performance, standard of the product, the installation of machinery, the
maintenance services etc cannot be reliably furnished through the middlemen. The industrial
user thus wants direct dealing with the manufacturer to get full technical information of
products. The middleman is thus eliminated from the distribution channels.

Direct Contact

Another reason for short channel of distribution for industrial goods is that most of the
industrial markets are generally concentrated in a small geographical area. The purchasers

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of industrial goods directly contact the sellers and thus there does not arise the need of the
agent.

Contact on Telephone & Fax

The industrial users generally purchase good in bulk. The cost of direct correspondence is
probably through contacts on telephones, mobile number, Fax, or in person etc. The buyers
therefore, eliminate middleman and contact the manufacturer directly for the purchase of
industrial goods.

Related Posts:

What is Wholesaling | Types and Importance of Wholesaler

Marketing Intermediaries and Distribution Channels
The Economic Security of Online Companies
Wholesalers Definition | Characteristics and
International Business and Its Different Forms

Distribution channel through co-operatives

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Importance of distribution channel

Channels of distribution for a product the route taken by the title to goods they are from the
producers to the ultimate consumers. It is very important because product in one place while
the consumption scattered in many place. So there is big gap between producers and the
consumers. So through channels of distribution can only fill the gap. A channel of
distribution connects a link between the producers and the consumers.
The middle man plays an important role in consumer orientation demand. The
middlemen are specialist in concentration equalization and dispersion, i.e.
Collects output of various producers
Subdivide the products according to the needs of the consumers.
Disperse this assortment to the consumers.
The success of channels of distribution [COD] is completely depending upon the middlemen
as they create time and possession utility. The COD helps in making products available at
right time in the night place and in the right quality.
Marketing is a comprehensive term, which includes distribution also, distribution is a
function to distribution or sub divided the producer's goods to various specific markets
which incurred to all ultimate consumers.

Role of channels of distribution

Channel of Distribution plays a very important role in achieving the marketing objectives of
a company. Undoubtedly, the manufacturer of product or services creates involve utility but
the distribution channels create time and place utilities. According to Drucker, "both the
market and distribution channels are offer more crucial than the product. They are primary;
the product is secondary.

In an ever widening market, particularly in consumer goods market distribution channels

have a distinctive role in the successful implementation of marketing plans and strategies.
These channels performing the following marketing functions the machinery of distribution.

The searching out of buyers and seller.

Matching goods to requirements of the market (merchandising)
Offering products in the form of assortments packages of items usable and
acceptable by the consumers /users.
Persuading and influencing the prospective buyers to favour a certain products and
its maker implementing pricing strategies in such a manner that would be acceptable
to the buyers and ensure effective distribution functions.
Participating actively in the creation and establishment of market for a new product.
Offering pre- and after sales service to customer

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Transferring of new technology to the users along with the supply of products and
playing green resolution in our country.
Providing feels back information, marketing intelligence and sales forecasting
services for their regions their suppliers.

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Chapter 5
Data analysis and interpretation

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1. Since what time you are in the business?

13%
20%
0 to 5 years
5 to 10 years
17% more than 10 years

Interpretation: According to the study, 20% retailers are connected with agrochemical
business, 17% retailers are connected since last 5 to 10 years and less of retailers are with
agrochemicals more than 10 years.

2. How many villages do you cover?

20
18
16
14
12
10 Series1
8
6
4
2
0
up to 5 5 to 10 10 to 15 15 to 20

Interpretation: From the study we can say that most of the channels cover villages between
5 to10. And most of the co-operative covers the whole district. It shows that the retailers are
trying to cover more villages to increase their business. And it is directly related with the
time they are in the same business.

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3. Which other product do you sell along with

agrochemicals?

31 pesticides
19 seeds
others

Interpretation: All the channels of distribution also include the sale of pesticides, seed, and
other items like fertilizers. So it is easy for the farmers to get every product needed in the
farming from the same place. It is the way to attract the customers to the particular dealer.

4. By which way you mostly communicate with the

consumers?

telephone
11 tv
26
internet
others

Interpretation: communication of the new types in fertilizer, discounts etc. Are to be

communicated by different channels to the retailers and farmers. From the study we can see
that telephone is the main communication way adopted by the channels. Then by television
and internet.

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5. Which promotional tools are effective?

35

30

25

20
Series1
15

10

0
radio hordings pamphlets others

Interpretation: According to the retailers most effective promotional tools which are
helpful to the farmers are radio and hoarding. Then the agriculture demonstration given by
the experts is more effective than pamphlets and other tools

6. Does the company helps to build the network?

yes
no

45

Interpretation: co-operatives and most of agro centres say that company helps them to
build the strong network. While nearly about 5 % of the dealers says that company does not
help them to build strong network. Most of them are private retailers.

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7. Does the company pay any special attention for your

development?

18
yes
no
32

Interpretation: Yes we can see that company is paying attention for the retailers
development, and some suggestions are here, because of regular meetings and seminars,
personal guidance , company providing good offers, etc.

8. How do you handle the stock?

30

25

20

15 Series1

10

0
computer card system manual others
system

Interpretation: According to the study 27% of the dealers handle the stock manually; some
of the educated dealers also use card system to keep the record. Card system is mostly not
used by them.

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9. How frequently do you get the goods after placing

indent?

10 11
very fast
fast
9
medium

20 slow
veryslow

Interpretation: Because of the problem of the less production of agrochemicals and

unavailability of the agrochemicals on time, it directly affects the placement of indent done
by retailers. It says that 20% placement is fast and 11% of stock placement is fast. And
some of them do well before the season.

10.Are you satisfied with the way, orders are dealt with?

4 6

strongly satisfied
satisfied
not satisfied
40

Interpretation: we can see that 40% of the retailers are satisfied from the company
and 6 % retailers are strongly satisfied with the company, less retailers are not
satisfied because of some reasons.

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11.What are the average Agrochemicals Sales in a year?

26% < 500 MT

40%
500MT-1000MT

10% 1000MT-1500MT
1500MT-2000MT
18% >2000MT
26%

Interpretation: According to the study, 40% retailers says that average sales is <500MT.
26% of them says that average sales of agrochemicals in a year is between 500MT &
1000MT. 18% of them says that it is between 1000MT & 1500MT. 10% of them says that it
is between 1500MT and 2000MT. Only 6% believe that it is more than 2000MT.

12.what are the Important factor in buying the

agrochemicals?

18

16

14

12

10

8 Series1

0
availability price brand image quality

Interpretation: Most of the retailers are like to buy agrochemicals because of price,
availability, quality and fewer retailers are going through quality.

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13.How do you take decisions about purchase?

others

company media
Series1
internet

past experience

0 5 10 15 20

Interpretation: As we can see retailers take major decisions refers to company

media, past experience and sometimes internet also.

14. Quantity needed by you is available at a time?

10%

yes
no

40%

Interpretation: AS we can see quantity is needed by retailer at a time is available 40%,

and fewer times it is not available which only 10%.

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15. How frequently do you purchase?

8
16
in a week
11 in two weeks
in a month
15 more than a month

Interpretation: As per the land area, economic condition of the farmers and
weather situation retailers purchase the fertilizer. From 50 respondents 16% retailers
purchase it in more than a month, 15% retailers purchase it in a month
approximately. Many less of them purchase agrochemicals in a week or in two
weeks because they have to keep some of the stock of fertilizer because of its high
demand.

16. Do you have regular customers on bases of stock?

yes
no

43

Interpretation: we can see that 43% retailers have regular customers which buys
agrochemicals from them and very fewer customers which are not buying fertilizers
from retailers.

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17.what amount of agrochemicals do you purchase

from the company ?

18 as per company sale

15 as per requirement
19
as per order

4 others
13

Interpretation: As we can see that 19% of stock is purchase by the retailers as per
customers order, than 18% of stock is purchased by the retailers as per requirement,
than 13% retailers purchase the stock as per order of customers.

18. Which techniques do you use to sell the

remaining stock to the customers/consumers?

30%
25%
20%
15%
10% Series1

5%
0%
Series1
discount
sample
others

Interpretation: Mostly retailers are using discount techniques and sample

techniques to stock out the remaining stock.

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19. Are you satisfaction with your different services

provided by company?

yes
no

48

Interpretation: As we can see that satisfaction level is 48% , retailers are satisfied
with the companys different services and only 2% retailers are not satisfied.

20. Suggestions:

17

yes
33 no

Interpretation: 33% of the retailers are not giving any suggestion to the company.
Very less retailers are suggested many things to the company like company have to
gave good offers, than provide qualitative products no issue of price, please send
order as soon as possible after its ordered.

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Chapter: 6
Results and findings

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According to the study, most of the retailers are connected with agrochemical
business, 17% retailers are connected since last 5 to 10 years and less of retailers are
with agrochemicals more than 10 years.
From the study we can say that most of the channels cover villages between 5 to10.
And most of the co-operative covers the whole district. It shows that the retailers are
trying to cover more villages to increase their business. And it is directly related with
the time they are in the same business.
All the channels of distribution also include the sale of pesticides, seed, and other
items like fertilizers. So it is easy for the farmers to get every product needed in the
farming from the same place. It is the way to attract the customers to the particular
dealer.
Communication of the new types in fertilizer, discounts etc. Are to be communicated
by different channels to the retailers and farmers. From the study we can see that
telephone is the main communication way adopted by the channels. Then by television
and internet
According to the retailers most effective promotional tools which are helpful to the
farmers are radio and hoarding. Then the agriculture demonstration given by the
experts is more effective than pamphlets and other tools
Co-operatives and most of agro centres say that company helps them to build the
strong network... Most of them are private retailers.
According to the study most of the dealers handle the stock manually; some of the
educated dealers also use card system to keep the record. Card system is mostly not
used by them.
Because of the problem of the less production of agrochemicals and unavailability of
the agrochemicals on time, it directly affects the placement of indent done by retailers.
Retailers are satisfied from the company and 6 % retailers are strongly satisfied with
the company, fewer retailers are not satisfied because of some reasons.
Average sales of the agrochemicals is < 500MT, according to the view of retailers.
Most of the retailers are like to buy agrochemicals because of price, availability,
quality and fewer retailers are going through quality.
As we can see retailers take major decisions refers to company media, past experience
and sometimes internet also.
As per the land area, economic condition of the farmers and weather situation retailers
purchase the fertilizer. From many respondents 16% retailers purchase it in more than
a month, 15% retailers purchase it in a month approximately. Many less of them
purchase agrochemicals in a week or in two weeks because they have to keep some of
the stock of fertilizer because of its high demand.
Many retailers have regular customers which buys agrochemicals from them and very
fewer customers which are not buying fertilizers from retailers
Most of stock is purchase by the retailers as per customers order and as per
requirement, than fewer retailers purchase the stock as per order of customers.

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Mostly retailers are using discount techniques and sample techniques to stock out the
remaining stock.
As we can see that satisfaction level is very high, retailers are satisfied with the
companys different services and few retailers are not satisfied.

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Chapter:7
Recommendation

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The network of agrochemicals distribution should be further strengthened in the ruler

area.
Making the entire agriculture products available unrder one roof should be tried view
of need of the retailers and farmers also.
If possible, supply of costly agrochemicals should be supplied in small packets of
25.Kg that marginal farmers are able to buy it from the retailers when they needed.
Right type of agrochemicals at right place and at right time needs to be made available
at retailer outlets.
The benefits of the modern farming technology should be extended to all the farmers
through the retailers and unproductive land be put to productive use through scientific
management.
GIL is having good image among the retailers and farmers, according to farmer if GIL
starts producing seeds, they would prefer to buy GILs products because of its quality
image.

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Chapter: 8
Limitations

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For the study non-probability will be used and sample may not be true representative
of the universe.
Due to the time and money constraints, sample size will be limited to 50 for
distribution channel and retailers, which may not be adequate for the generalization
of the findings.
Study is carried out in the south Gujarat zone, at Bharuch and Ankleshwar only.
As, a June month is the busiest month of the retailers and farmers, it is difficult to
get their response.

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Chapter:9
Bibliography and Annexure

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www.gilgharda.com
GIL green book by GIL ltd.
Philip kottler, Marketing Management
Distribution channel of agrochemicals, Wikipedia
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