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Internship Report On Foji-Fertilizer

Internship Report On Foji-Fertilizer

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Published by Jamil Ahmed
Internship Report On Foji-Fertilizer by $linky City
Internship Report On Foji-Fertilizer by $linky City

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Published by: Jamil Ahmed on Sep 06, 2009
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05/11/2014

 
INTRODUCTION
FFC occupies a special niche in the industrial and agricultural development of the country with asuccessful track record of excellence business performance. The company moved from one highlevel of achievement to other establishing records year after year and is now ranked as a top tier  player in the fertilizer industry with highest production capacity and market participation.During the year, FFC acquired 100% management control. Of PSFL, a wholly owned subsidiary of  NFC, through competitive bidding on payment of RS.8.15 billion to the Privatization commission.With the integration of PSFL, which now stands dissolved and merged with FFC effective july1,2002, pursuant to a scheme of amalgamation approved by the Honorable High Court of Sindh, the production capacity of our urea manufacturing facilities has more than tripled from 570 thousandtones p.a. in 1982 to almost 2 million tones p.a. in this short span of less than 25 years of existence.FFC now owns three mega plants worth over 1 billion dollars in terms of replacement value, besides over 49% stake in FJFC.2002 was a difficult year and business conditions were challenging because of the economic fall outof the recent regional crisis. Uncertain economic and weather conditions, high natural gas prices,global product oversupply, falling international urea prices and weak domestic demand contributedto an extremely difficult operation environment during the year which created a downward pressureon prices and margins.These adverse factors are continuing since past few years and have created intense competition for the industry players; however, once again our diversification has paid dividends and strategiesimplemented over the years allowed the company to maintain solid financial foundation throughoutthis prolonged downturn.With a vision to acquire self - sufficiency in fertilizer production in the country, FFC wasincorporated in 1978 as a private limited company. This was a joint venture betweenFauji Foundation (a leading charitable trust in Pakistan) and Haldor Topsoe A/S of Denmark.1
 
The initial authorized capital of the company was 813.9 Million Rupees. The presentshare capital of the company stands at Rs. 3.0 Billion. Additionally, FFC has Rs. 1.0Billion stakes in the subsidiary Fauji Fertilizer Bin Qasim Limited (formerly FFC-JordanFertilizer Company Limited).FFC commenced commercial production of urea in 1982 with annual capacity of 570,000metric tonsThrough De-Bottle Necking (DBN) program, the production capacity of the existing plant increased to 695,000 metric tons per year. Production capacity was enhanced byestablishing a second plant in 1993 with annual capacity of 635,000 metric tons of urea.FFC participated as a major shareholder in a new DAP/Urea manufacturing complex with participation of major international/national institutions. The new company FaujiFertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited)commenced commercial production with effect from January 01, 2000. The facility isdesigned to produce 551,000 metric tons of urea and 445,500 metric tons of DAP. Thisexcellent performance was due to hard work and dedication of all employees and the progressive approach and support from the top management. In the year 2002, FFCacquired ex Pak Saudi Fertilizers Limited (PSFL) Urea Plant situated at Mirpur Mathelo,District Ghotki from National Fertilizer Corporation (NFC) through privatisation processof the Government of Pakistan. This acquisition at Rs. 8,151 million represents one of thelargest industrial sector transactions in PakistanRecently Fauji Fertilizers Company offered the highest bid of Rs 8.151 billion for thePak-Saudi Fertilizers Limited here on Saturday. Second highest bidder was the DawoodHercules that offered Rs 3.78 billion while the lowest bid of Rs 3.602 billion wasreceived from Engro Chemicals. In simple words Fauji Fertilizers Company offered Rs4.50 billion rupees more than Engro and Rs 4.371 billion more than Dawood Hercules in bidding for Pak-Saudi Company. Sealed bids for the privatization of Pak-Saudi Fertilizer Company were opened by journalists on the request of Privatization Minister in the presence of bidders, senior government officials and private sector representatives. Three2
 
companies, Fauji Fertilizers, Engro Chemical and Dawood Hercules filed bids for thesaid company. Fauji Fertilizers offered Rs 135.85 for each share of the Pak-SaudiCompany, Dawood Hercules offered Rs 70 per share, while Engro Chemical offered Rs66.70 for a share. Seeing a far high difference in the price offered by Fauji Fertilizers, theother two bidders did not take interest in contesting privatization of the said company andwished a good luck for FFC. Announcing price offers by the private sector, Minister for Privatization Altaf Saleem declared the Fauji Fertilizers Company as the highest bidder that intends to buy 100 percent shares.
NATURE OF THE BUSINES
The company is a public company incorporated in Pakistan under the Companies Act,1913, (now the Companies Ordinance, 1984 and its shares are quoted on the stock exchanges in Pakistan. The principal activity of the company is manufacturing, purchasing and marketing of fertilizer, including investment in other fertilizer manufacturing operations.
FFC HISTORY
FFC was incorporated on May 8, 1978.
Based Unit at Goth Machhi commenced commercial production in June 1982with annual designed capacity of 570 thousand tones urea.
Based Unit up-graded in April 1992 to produce 695 thousand tones annually.
Expansion Unit at Goth Machhi commenced commercial production in March1993 with designed capacity of 635 thousand Tonnes.
FJFC founded in November 1993 with initial contribution of Rs. 1 billion. Thecompany’s investment in FJFC now stands at over RS 4 billion.
PSFL acquired on May 31,202 and merged with FFC on July 1,2002. Situated atMirpur Mathelo the plant has annual designed production capacity of 574 thousandtones.3

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