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Detailed SWOT Analysis of National Fertilizers – The Second Largest Producer Of Fertilizers In India

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Last time we studied the SWOT analysis of La Poste which is the postal and express courier services industry in France. This time around, let us dive into the detailed study or SWOT analysis on National Fertilizers. Let’s get started.

National Fertilizers Limited (NFL) – Miniratna company is an Indian state-owned corporation that manufactures chemical, organic fertilizers, and industrial chemicals. In 2018, it was the second-largest producer of fertilizers in India. The company comes under the ownership of the Ministry of Chemicals and Fertilizers.

Another aspect that made National Fertilizers the giant it is now, is its marketing efforts. So if you are interested in learning the latest marketing efforts which are digital marketing – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Before we go into the SWOT Analysis of National Fertilizers, let us know about National Fertilizers as a company.

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About National Fertilizers

SWOT Analysis of National Fertilizers - National Fertilizers Plant

National Fertilizers established on 23 August 1974 is a leading Indian company in fertilizers and beyond be a dynamic organization committed to serving the farming community and other customers to their satisfaction through timely supply of fertilizers and other products & services. NFL initially began operating two plants in Bathinda and Panipat and slowly evolved to have five plants in Nangal and Bathinda in Punjab, Panipat in Haryana and two at Vijaipur (Madhya Pradesh).

National Fertilizers Limited produces and markets fertilizers under the Kisan Urea name in India. It offers fertilizers for use in various types of crops, such as food grains, cash crops, vegetables and oilseeds, as well as for horticulture.

The company also manufactures and markets biofertilizers, including Rhizobium, phosphate solubilizing bacteria, and acetobacter used to supplement chemical fertilizers. In addition, it produces and markets a range of industrial products comprising methanol, nitric acid dilutes, ammonium nitrate, sulfur, industrial-grade urea, liquid oxygen, liquid nitrogen, carbon slurry, carbon dioxide gas, anhydrous ammonia, sodium nitrite, sodium nitrate, liquid argon, liquid carbon dioxide, and off-grade methanol.

Today NFL comprises a central marketing office at Noida, four zonal offices at Bhopal, Lucknow and Chandigarh and Hyderabad, 14 state offices and 39 area offices spread across the country.

Quick Stats on National Fertilizers
Owner Government of India
Year Founded 1974
Origin Bathinda & Panipat
No. of Employees 3,000+
Company Type Public
Market Cap Rs2671.2 Crore (2022)
Annual Revenue Rs12,301.05 Crore (2019)
Net Income/ Profit Rs298.45 Crore (2019)

 

SWOT Analysis of National Fertilizers - National_Fertilizers


Products of National Fertilizers

National Fertilizers has been in the Chemical industry for more than a century and deals in:

  • Urea
  • Ammonia
  • Organic fertilizers
  • industrial chemicals


Competitors of National Fertilizers

National Fertilizers’ top five major competitors are:

  • Mangalore Refinery and Petrochemical
  • Fauji Fertilizers Company Limited
  • Bharat Agri Fertilizers and Realty Limited
  • Coromandel International Limited
  • Chambal Fertilizers and Chemical Limited


Now that we have understood the company’s core products and services, let’s dive deep into the SWOT analysis of National Fertilizers.

SWOT Analysis of National Fertilizers

SWOT analysis is a study that is undertaken by the majority of companies to determine their core strengths, weaknesses, opportunities and threats. It is a framework that is used to evaluate a company’s competitive position which later helps in strategic planning. 

SWOT analysis can be conducted by any popular brand or any brand which is still new in the market can make use of this template to evaluate internal and external variables that might influence the brand authority and market development.

SWOT Analysis of National Fertilizer - SWOT Infographics of National Fertilizer

Below is a step-by-step detailed guide to help you with the SWOT analysis of National Fertilizers.

Strengths of National Fertilizers

The strengths are basically what makes the brand different from the other competitors and what the organization excels at. Following are the strengths:

  • Known Name: NFL is popularly known in the market as ‘KISAN’. It engages in the leading manufacturing and marketing of Neem Coated Urea, four strains of Bio-Fertilizers (solid & liquid), Bentonite Sulfur and other allied Industrial products like Ammonia, Nitric Acid, Ammonium Nitrate, and Sodium Nitrate. 
  • Expanding Operations: Apart from manufacturing fertilizers, NFL is also expanding its foothold in international markets through setting up businesses of imports and trading of various agro-inputs like Non-Urea Fertilizers, Certified Seeds, Agrochemicals, Bentonite Sulfur, City Compost through its existing PAN India dealer’s network under single window concept.
  • Reach and Distribution: National Fertilizers has a strong R&D setup based in Nangal, Panipat, Bathinda and Vijaipur as well as in its headquarters in Noida. The R&D primarily focuses on efficient & safer undertakings, value-added products and suggests the implementation of energy-saving schemes. This makes sure that the products are made easily available to their customers at the right time.
  • Sustainability: NFL takes various initiatives to ensure that environmental impacts are kept in mind while aligning the practices. The company adopts best practices for energy conservation, environmental management and social upliftment leading to sustainable development. Feed and fuel in NFL Plants use cleaner and greener fuel.  
  • Brand Reputation: National Fertilizers has been in the business of producing chemicals for a large number of years. Also, with the variety of products and services it provides, it is established as a leader in the industry. This helps the corporation to gain a reputation and get recognized easily.

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  • Dealer Community: National Fertilizers has built a very strong relationship with its dealers that not only helps in supplying the products but also promotes the company’s core products and training.
  • Financial Position: National Fertilizers has a very strong financial position in the market with consecutive profits over the years along with accumulated profit reserves which can be utilized for future expenditures or marketing activities.
  • Skilled Labor Force: National Fertilizers has invested heavily in the employees that have made them not only skilled but are also highly motivated.


Weaknesses of National Fertilizers

The weaknesses are a major drawback that stops the organization from performing at its optimum level. They are the areas in which businesses can make improvements. The major drawbacks are as follows:

  • Research and Development: National Fertilizers has a good share of expenditure on the research and development department but it is spending way less than a few of the players within the industry which have benefitted as a result of their innovative products.
  • Diversity in the Workforce: The local workers contribute to the majority of the workforce at National Fertilizers making it difficult for outsiders to adjust and hence resulting in the loss of talent.
  • High Employee Turnover Rates: National Fertilizers has a very high employee turnover rate as compared to its competitors which means it spends a lot on training activities as employees keep leaving and joining.
  • Need to Invest More in New Technologies: According to the country’s scale of expansion and the geographical areas, National Fertilizers need to invest more money in technology to integrate the processes across the board. Currently, the investment in technology is not on par with the vision of the company.
  • Limited Success Across the Core Business: Although National Fertilizers is one of the leading organizations in its industry it faces challenges in moving to other product segments with its present culture.


Opportunities of National Fertilizers

Opportunities are the favourable external factors that may give the organization a competitive advantage over others. The opportunities for National Fertilizers are as follows:

  • Social Media: Over the years the number of active users on social media channels has increased and with this National Fertilizers can make use of its social media handles to promote its products, interact with customers and even provide after-sale services.

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  • Transport Industry: The transport industry has been booming and is expected to boom in the next few years as well which has resulted in more demand for National Fertilizers products which is helpful for National Fertilizers to scale its business.
  • Globalization: Increased globalization doesn’t restrict National Fertilizers anymore to conducting activities in their own country which can act as an opportunity to extend operation in other countries and thus enter new markets and unleash the potentials of other new markets.
  • Population: The population has been growing and is expected to grow at a positive rate in the upcoming years. This is beneficial for Nordea as there will be an increase in the number of potential customers that it can target.
  • Expansion to Other Global Markets: The company is planning to expand its international activities with a particular focus on Asia. This serves them as an opportunity to acquire a new customer base.


Threats of National Fertilizers

Threats are those factors that have the potential to provide harm to the organisation in any form. The threats of National Fertilizers are as follows:

  • Technological Advancements: The technological advancements by a few competitors can pose a threat to National Fertilizers as today’s customers are more attracted to new technological advancements and may be lost to competitors’ offerings thus reducing the market share of National Fertilizers.
  • Competition: There is always an ongoing competition that puts downward pressure on the prices. This could lead to lower profits if it makes changes in the price or may also result in lower market share if it doesn’t make price changes.
  • Exchange Rate: The exchange rate also keeps fluctuating and makes it difficult for a company like National Fertilizers because it extends service internationally while its suppliers are local.


This ends our complete SWOT analysis of National Fertilizers. Let us conclude our learning below from the SWOT analysis of National Fertilizers.

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To Conclude

National Fertilizers is a well-known company with a significant global presence. In the SWOT analysis of National Fertilizers, we observed that the company is heavily reliant and enjoys strong brand recognition and trust with its customers. It has a strong distribution network and has reached across all the markets it serves, but suffers from an increasing number of suppliers in the same space and better R&D efforts by its competitors.

Also, one point not to miss out on is that National Fertilizers is in line with its marketing effort. It has created a customer base for itself by tapping into the digital era and creating a social media presence on several platforms. If you are interested in learning digital marketing, don’t forget to check out IIDE’s 3 Month Advanced Digital Marketing Course.

We hope this blog on the SWOT Analysis of National Fertilizers has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of National Fertilizers, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of National Fertilizers in the comments section below.

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