Home / This Week / Cover Stories / Engro Fertilizers: an icon of Pakistan’s corporate sector

Engro Fertilizers: an icon of Pakistan’s corporate sector

In 1965, the Company was incorporated as Esso Pakistan Fertilizer Limited, to manufacture and market fertilizer. In 1968 urea plant was commissioned; which marked the largest foreign investment in private sector in the history of Pakistan. In 1978 Esso Pakistan Fertilizer Company Limited was renamed as Exxon Chemical Pakistan Limited. In 1991 Exxon divests its equity from fertilizer business globally; the Company was renamed as Engro Chemical Pakistan Limited through an employee led buyout. In 2005 annual production capacity was increased to 975,000 tons from 850,000 through de-bottlenecking of base plant. In 2007 construction of world’s largest single-train urea plant started. In 2010, Enven plant started producing urea with demerger of Engro Chemical Pakistan Limited and transfer of fertilizer business to a separate company, Engro Fertilizers Limited. In 2011 Enven capitalized and started commercial production taking total site capacity to 2.275 million tons. In 1QCY15 Engro Corp sold its trading arm Engro Eximp (the single largest importer of phosphate fertilizers in Pakistan) to Engro Fertilizers Limited. 2018 marked highest ever fertilizer sales and company got Dupont level 4 rating in Safety. In 2019, the Company posted second highest-ever profit after tax and also launched e-logistics business.

Engro Fertilizers has evolved from a single product company to a multi-business company and so has the advertising tagline. From the ‘heeray jaisa dana’ in the 90s, the tagline was reshaped in 2000s as ‘Behtar zindagi, Engro se’. Moving on to the 2010s, with the Company achieving it 50-year milestone, the tagline was developed as ‘Bharosay ke pachas saal’. With the Company moving into multi-businesses, the tagline has now moved to ‘bejai se katai tak’ (seed to harvest).

Engro Fertilizers is the second largest urea player in Pakistan. The company has over 50 years of experience of operating in Pakistan, a demonstrated in‐house capability of project execution and strong working relationships with leading international technology, construction and financial partners.

The main reason for the high brand equity is the delivery of product. Engro Fertilizers is the flag bearer of innovation in agriculture and has come up with new and improved products over the years, which have helped the farmer grow and sustained the food security situation of the nation.

The Company is cognizant of its part in ensuring food security for the nation and therefore has always believed in being the gold standard for digital innovation and advancement. The Company recently implemented SAP Hana aimed to ensure accurate, efficient and uninterrupted business operations. The Company has also launched a Dealer Management System, which has not only allowed our sales force to provide uninterrupted and top-notch services on the go but has also empowered our customers to have access to real time information about their account and orders. Furthermore, the Company has leveraged technology to achieve monthly reporting of financial results within 24 hours of the next month. This is an industry first and has enabled complete transparency and rapid decision making.

Engro Fertilizers (EFERT) aims to be the leading, innovative, and a socially responsible brand in the agriculture landscape of Pakistan, which can help the farmer grow.

Engro Fertilizers (EFERT) has produced 1.69 million tons of Urea in 9MCY20; the Company aims to produce 2.2 million tons Urea during the full year 2020. In spite of a 4.3%YoY decline in industry’s Urea sales during 9MCY20, EFERT’s Urea sales have increased by 9%YoY. It takes EFERT’s market share to 35% from 31%. Based on indigenous gas-based production only (production from RLNG based manufacturers not included), management expects industry to have 1.2 million tons excess inventory by the end of 2020. As per the management, export of surplus Urea can potentially generate US$408 million along with the income tax revenue of US$4 million, taking total benefit to US$412 million. Following the rising trend in international DAP prices, the Company has increased DAP prices to Rs3,902/bag in September 2020 from Rs3,361/bag in August 2020. Along with this Company, has also increased Urea price by Rs25/bag due to better farm economics.

Check Also

Fertilizer earnings future revised as urea offtake set to beat outlook

Fertilizer earnings future revised as urea offtake set to beat outlook

Pakistan’s leading brokerage house, Topline Securities has revised its earnings forecasts fertilizer companies operating in …

Leave a Reply