business opportunities for eco-friendly product of ocean agro india ltd. (oail)

70 Pages·2002·1.62 MB·English

BUSINESS OPPORTUNITIES FOR ECO-FRIENDLY
PRODUCT OF OCEAN AGRO INDIA LTD. (OAIL)
IN WESTERN MAHARASHTRA

A PROJECT REPORT
Submitted by
CHAVAN PRAVIN KHANDERAO
Reg. No. 04-1783-2011

In partial fulfillment for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL AGRIBUSINESS

UNDER THE GUIDANCE
OF
Dr.SANJIV KUMAR
(Assistant Professor)

INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE
ANAND AGRICULTURAL UNIVERSITY
ANAND - 388 110
JUNE– 2013
INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE
ANAND AGRICULTURAL UNIVERSITY
ANAND -388110

CERTIFICATE

This is to certify that the project entitled “Business Opportunities For
Eco-Friendly Product Of Ocean Agro India Ltd. (OAIL) In Western
Maharashtra” of M.B.A (International Agribusiness) embodies
bonafide research work carried out by Pravin Khanderao Chavan under
my guidance and supervision and that no part of this project work has
been submitted for any other degree. The assistance, guidance and help
received during the course of investigation have been fully
acknowledged.

Place: IABMI, Anand ( Dr. SANJIV KUMAR)
Date: Advisor
DECLARATION

I hereby declare that the project entitled “Business Opportunities For
Eco-Friendly Product Of Ocean Agro India Ltd. (OAIL) In Western
Maharashtra” submitted for the M.B.A (International Agribusiness)
degree is my original work and this has not formed the basis for the
award of any degree associate ship or other similar titles.

Place: IABMI, Anand Pravin Khanderao chavan
Date: Reg. No: 04-1783–2011
ACKNOWLEDGEMENT

Indeed the words at my command are not adequate, either in the form of
spirit, to convey the depth of my feeling of gratitude to industry guide Mr.
Vivek Shah (Marketing Department) Ocean agro India ltd. for his
scholastic guidance, constructive criticism, constant encouragement and
pertinent suggestions in planning and execution of this project.
I am also grateful and express my sincere thanks to Mr.Kauishik Patel
(M.D.) Ocean agro india Limited for providing me the necessary
information needed during the project work. I have an enormous
pleasure in expressing my deepest sense of gratitude and humble
indebtedness towards my college guide Dr.Sanjiv Kumar, Assistant
Professor, International Agri-business Management Institute, AAU,
Anand for his steadfast inspiration, expert guidance, painstaking effort
and keen abiding interest during the entire research work. With profound
respect, I extend my gratitude to Dr. G. B. Valand, Principal,
International Agri-Business Management Institute, AAU, Anand for
providing necessary facilities during the project work.
I feel imperative to express my sincere thanks for the generous help
received from Dr.Pundir,Prof. T. S. Shibin, Prof.Y.A.Lad, Prof.
Mahesh Prajapati, Prof. Dilip Vahoniya and Prof. Vimal shah for their
kind co-operation and valuable help during the project work.
I am very much thankful to my all classmates and special thanks to
Rupesh Gaikwad, Ganesh Patil, Prathamesh Hule, Amol Kumbharkar,
Anna,Ramesh Deokar,Chakradhar,Vaibhav Patil, Kunal Patil, Pravin
& Sandip Chavan for their cooperation directly or indirectly in
completion of project work.
At the last but not the least, I think that the words are insufficient to
express deep sense of feeling and respect towards my parents, without
their encouragement, blessing and benediction it would not be possible to
me, to complete this course. Their patience and sacrifice always have
been the vital source of inspiration for me.

Date:
Place: Anand Pravin Khanderao Chavan
BUSINESS OPPORTUNITIES FOR ECO-FRIENDLY
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PRODUCT OF OCEAN AGRO INDIA LTD. (OAIL)
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INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE
ANAND AGRICULTURAL UNIVERSITY
ANAND 388 110
2
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1
3

JUNE 2013
“BUSINESS OPPORTUNITIES FOR ECO-FRIENDLY PRODUCT
OF OCEAN AGRO INDIA LTD. (OAIL) IN WESTERN
MAHARASHTRA”
Name of student Advisor
Pravin Khanderao Chavan Dr. Sanjiv Kumar
Reg. No. 04-1783-2011 A s s i s t a nt Professor

INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE
ANAND AGRICULTURAL UNIVERSITY
ANAND -388110
ABSTRACT
Bioproducts include manure, slurry, worm casting, peat, seaweed,
biofertilizer, biopesticide and humic acid. A bioproducts adds nutrients
through the natural processes of Nitrogen fixation, solubilizing
phosphorus and stimulating plant growth through the synthesis of growth
promoting substances.
Since 1971, Ocean Agro (India) Limited (OAIL) has been working in the
field of Agro Products, Plastics, Packaging Materials, and irrigation
equipment’s such as Drip and Sprinkler Systems. OAIL has its presence
in Bio-Technology, Bio-Fertilizer, Bio-Pesticides, and Bio-Fungicides.
Company has introduced Neem products since 1987. The company has
set up ultra-modern plant at Nandesari near Baroda. Company produced
24 products and sells them in the Indian market.
The study was taken up with the objectives of studying the market status
of bioproducts in the study area, profile of existing agri input Dealers and
identifying potential dealers for Ocean Agro India Limited.This study
i
was done in western region of Maharashtra viz. Kolhapur, Sangli, Satara
and Pune districts. Primary as well as secondary data were used in the
study. Primary survey was done with the help of semi-structured
schedules. Samples of 200 dealers were selected convenience for in-depth
investigation to meet the stipulated objectives of the study.
21% dealers in the study area are agriculture Specialist, 44% are 10th -
12thpass& remaining 35% graduates.19% of the dealers don’t sell the
bioproducts, remaining 81%respondents prefer to sell chemical and
bioproducts both. All agriculture specialist dealers sell the bioproducts.
No dealer sells only bio products. It was found that in 1-10 villages-
coverage category Satara district was on the top where 19 dealers dealt in
this category. In 11-20 villages-coverage categories, Sangli led with 20
dealers and Satara and Kolhapur were at bottom with 13 dealers each. 21-
30 and above 30 villages-coverage category Kolhapur was on the top.
Dealers with turnover of`31-50 lakh were 28% ,similarly dealers having
turnover of`50-70 lakh covered 28% of the sample, dealers having
turnover below `30 lakh were27% and only 17% dealers had turnover
above`70 lakh.53% dealers purchased bioproducts on credit and 13% on
cash. In Kolhapur district there was high demand of bioproducts for
sugarcane followed by vegetable, flower and pulses/oilseed. Sangli
district was also showing more demand of bio product for sugarcane
followed by vegetables, pulses/oilseeds and flowers. In Satara and Pune
bioproducts demand was more for vegetables than sugarcane. Kolhapur
district was dominated by moderate sale category dealers (`10-20 lakhs),
Pune has more number of high sale category dealers (>`20 lakhs), Sangli
and Satara are dominated by low sale category dealers (<`10 lakhs). In
terms of product range Nature care organic company is leading with 14
bio products in its bouquet. The product range of Krishi tech Organic Ltd
ii
was 12.Vasudaagrochem, Indus biotech, &Biostadt offeres 10, 7, & 3
bioproducts respectively.Biostadt gives highest margin to dealer i.e. up to
35%, followed by nature care which gives margin up to 32%. For Indus
biotech &Krishi tech it is up to 30% & 28%. Dealers give more
preference to Biostadt & Nature care due to high margin and good result
of their products. The study revealed that out of 161 dealers 48% dealers
sell bio products due to more margin given by company, 17% dealers sell
bio products due to farmers demand, 14% dealers sell these products as
they feel that demand of bio products will increase in future. 21% dealers
were selling bio products due to other reason like companies trade
activities. Dealers are facing Acceptability as the biggest problem in sale
of bioproducts.
It can be concluded by this study that Western Maharashtra region is
good for doing business of bioproducts as it is well established &
awareness among dealers is high about the bio products, dealers are well
educated, majority of the dealers turnover is above 30lakhs. As per the
prescribed parameters for dealership of OAIL, 71dealers can be
considered as potential dealers for OAIL.

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TABLE OF CONTENT
PAGE
CHAPTERS TITLE
NO.
ABSTRACT i
TABLE OF CONTENT iv
LIST OF TABLE vii
LIST OF FIGURES vii
LIST OF ABBREVIATION x
I INTRODUCTION 1

1.1 Industry profile 1
1.1.1 Overview of organic and bio product approach in
1
farming
1.1.2 Overview of organic and bio product industry 4
1.1.3 Organic agriculture: Indian scenario
5
1.1.4 Overview on organic and bio-fertilizer industry
7
1.1.5 Organic fertilizer
9
1.1.6 Humic acid

9
1.1.7 Other concentrated organic manures 10
Company profile
1.2 10
1.2.1 Company's philosophy on code of governance
12
1.2.2 Board of directors 12
1.2.3 Infrastructure 13
1.2.4 Warehousing and packaging 13
iv