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Fertilizer Industry Analysis

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MICHAEL PORTERS’ FIVE FORCES MODEL OF FERTILIZER INDUSTRY

Submitted by: Charushila Satish Bankar
Roll no.: 0125
Div: A

INTRODUCTION TO FERTILIZER INDUSTRY: Today, Indian Fertilizer Industry is developing in terms of technology. Indian manufacturers are adopting advanced manufacturing processes to prepare innovative new products for Indian agriculture. India has entitled as the third largest producer and exporter of nitrogenous fertilizer. The tremendous demand of fertilizers has led the country to invest huge in the public, co-operative and in private sectors. At present, India has more than 63 large sized plants of fertilizers, manufacturing wide assortment of fertilizers including nitrogenous, phosphatic, Ammonium …show more content…

4. But even though the prices are high, farmers have to use them to get high production. Hence they prefer to buy them from co-operative societies which provide at concessional rate with credit facilities. 5. Also variety of substitutes are available like FYM, compost, green manures, biofertilizers which along with increasing production protect the soil fertility.
Thus, the bargaining power of buyers is high here.
THE THREAT OF SUBSTITUTES: MODERATE
A wide range of substitutes are available. They are as follows- 1. Bio-fertilizers, 2. manures(FYM,cattle dung), 3. ,green manures(vegetable,household waste), 4. vermicompost(Roundworms) 5. A wide range of mixed fertilizers.
The prices of these organic fertilizers are low compared to inorganic fertilizers. As Indian rural farmers are price sensitive they can go for these substitutes. Also it protects the soil from getting deteriorated, reducing soil fertility.
But, the cost of switching to the substitute is high.
Hence, the bargaining power of buyers(farmers) is moderate.
RIVALRY AMONG THE EXISTING COMPETITORS: HIGH Below the list of Public Sector Fertilizer Company in India 1. Brahmaputra Valley Fertilizer Corporation Limited 2. Hindustan Copper Limited 3. FCI Aravali Gypsum And Minerals India Limited 4. Hindustan Fertilizer Corporation Limited 5. Madras Fertilizers Limited 6. Neyveli Lignite Corporation Limited 7. Paradeep

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