Executive Summary

Engro Chemical Pakistan Limited is the second largest producer of Urea fertilizer in Pakistan. The company was incorporated in 1965 and was formerly Exxon Chemical Pakistan Limited until 1991, Exxon decided to divest its fertilizer business on a global basis. The employees of then Exxon Chemical Pakistan Limited, in partnership with leading international and local financial institutions bought out Exxons 75% equity. This was at the time and perhaps still is the most successful employee buy- out in the corporate history of Pakistan. Renamed as Engro Chemical Pakistan Limited, the company has gone from strength to strength, reflected in its consistent and enviable financial performance, growth of the core fertilizer business and successful business diversification into our fields. Its performance & outlook is following the declared vision, To be the premier Pakistani enterprise with a global reach, passionately pursuing value creation for all stake holders Engro Chemical Pakistan Limited produced a large quantity of fertilizers such as Engro Urea, Engro DAP, Engro Zorawar and Engro Zarkhez and the subsidiaries company like Engro Vopak Terminal Limited, Engro Polymer & Chemical Limited, Engro Energy Limited and then diverse all the activities to make food products in Engro Foods Limited by the names of Olpers, Olwell HCLF, Olpers Cream, Tarang. Engro has never been a company to rest on its laurels. Their employees and culture drive them to achieve greater success. They look for new and exciting ways to return value to their customers and their shareholders. They said about their employees, Our employees performance can only flourish in a sound work environment. That is why Engro is committed to supporting it leadership culture through systems and policies that foster open communication, maintain employees and partner privacy, and assure employees health and safety. Engro people are some of the best in the best in the world with a shared passion to learn and stretch beyond their limits. It is our people who make Engro a great company and an exciting place to work. The company shows a good financial performance in every field, the sales of the year 2007 were Rs.23.2 billion which is higher than 2006 by 32%. The profit after tax was 3.15 billion which is a new record of the company and higher by 24% over the 2006 profit of Rs 2.55 billion. Infact Engro Chemical Pakistan Limited is going towards success and making progress day and night. They really do what they said Growing with Pride

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Company Introduction
Engro Chemical Pakistan Limited is the second largest producer of Urea fertilizer in Pakistan. The company was incorporated in 1965 and was formerly Exxon Chemical Pakistan Limited until 1991, when Exxon decided to divest their fertilizer business on a global basis and sold off its equity of 75% shares in our company. The Employees of Engro, in partnership with leading international and local financial institutions bought out Exxons equity and the company was renamed as Engro Chemical Pakistan Limited. Engro is a public limited company listed on the Stock Exchanges of Karachi, Lahore and Islamabad. Engro accomplished significant progress not only in its base urea fertilizer business but also in diversification projects. Urea production was increased from an annual capacity of 270,000 tons in 1991 to 850,000 tons in 2001. Further expansion plans are being developed to debottleneck plant capacity to 1.2 million tons in stages. In addition, Engro has over thirty years of experience of fertilizer marketing in Pakistan with an elaborate dealer network. As part of our growth and diversification plans, we have established a $60 million 50:50 Joint Venture company named Engro Vopak Terminal Limited in 1995, between Engro and Royal Vopak (formerly Royal Pakhoed), a Netherland based company and one of the foremost terminal operators in the world. This joint venture company has built a modern Jetty & Terminal at Port Qasim, Karachi for handling and storage of bulk liquid chemicals, which was completed in 1997. This is a key infrastructure for the development of capital intensive chemical industry in the heavy industrial zone of Port Qasim, Karachi. Engro has also formed another Joint Venture company with Mitsubishi and Asahi Glass of Japan named Engro Asahi Polymer & Chemicals Ltd. to develop a Polyvinyl Chloride (PVC) resin project at Port Qasim, Karachi, with an initial capacity of 100,000 tons per year based on imported Vinyl Chloride Monomer. The project has been successfully completed and commenced production in November 1999. The plant production is being marketed both in domestic and export market under the brand name SABZ. Engro has 50% equity in this $74 million venture. Construction of Engros 100,000 tons p.a. capacity NPK fertilizers plant at Port Qasim at a cost of US $10 million was completed in 2001. The plant is in production and considerably benefiting the countrys agriculture by providing balance nutrition to improve farm yields. During the year 2004 the products generic name of NPK was replaced by Zarkhez. In April 2003 Engro acquired 51% intrest in the Automation & Control Division of Innovative (Private) Limited, a Lahore (Pakistan) based company that provides process control industrial solutions in the knowledge based services sector. The joint

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venture has been named as "Innovative Automation & Engineering (Private) Limited (IAEL)".The aquisition was part of Engros diversification strategy. Our Seeds business completed four years of operations and during this period, the Company has made significant progress in developing its own hybrid seeds of maize and sunflower crops and launched two new maize hybrids of imported origin. All seed products are being marketed under the brand name of Bemisal. Engro has announced plans to set up a milk processing facility to produce and market branded UHT milk, cream and other milk products. The plant to be located in Sukkur is expected to cost Rs 1 billion and will be completed by March end 2006. All major equipment is on order and civil construction is expected to commence soon. Engro plans to procure raw milk supplies from Sindh and lower Punjab

Growing with Pride

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Mission Statement
Our mission is two fold:

To help farmers maximize their farm produce by providing quality plant nutrients
and technical services upon which they can depend. To create wealth by building new businesses based on company and country strengths in Petrochemicals, Information Technology, Infrastructure and other Agricultural sectors. In pursuing the mission we shall at all times be guided in our conduct and decision making by our Core Values.

Where we are going

Our Vision
To be the premier Pakistani enterprise with a global reach, passionately pursuing value creation for all stake holders

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Values that we live by

Core Values

Our employees performance can only flourish in a sound work environment. That is why Engro is committed to supporting it leadership culture through systems and policies that foster open communication, maintain employees and partner privacy, and assure employees health and safety.

SAFETY, HEALTH & ENVIRONMENT

We will manage and utilize resources and operations in such a way that the safety and health of our people, our neighbors. Our customers and our visitors are ensured. We believe our safety, health and environmental responsibilities extend beyond protection and enhancement of our own facilities, and we are concerned about the distribution, use and after use disposal of our products.

ETHICS AND INTEGRITY

We do care how results are achieved and will demonstrate honest and ethical behavior in all our activities. Choosing the course of highest integrity is our intent and we will establish and maintain the highest professional and personal standards. A wellfounded reputation for scrupulous dealing is itself a priceless asset.

LEADERSHIP
We have leaders of high integrity, energy and enthusiasm who have the necessary managerial, professional and people skills to inspire a group or an organization to set high goals and achieve them willingly. We believe that leadership skills need to be strengthened at all levels within our organization and that managerial and professional impatience is a necessary foundation.

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QUALITY & CONITNUOUSE IMPROVEMENT

We believe that quality and a relentless commitment to continuous improvement are essential to our ongoing success. To this end, we define quality as understanding the customer's expectations, agreeing on performance and value, and providing products and services that meet expectations 100 percent of the time. Our motto is, "Quality in all we do."

ENTHUSIASTIC PURSUIT OF PROFIT

Successfully discharging our responsibilities to our shareholders to enhance the longterm profitability and growth of our company provides the best basis for our career security and meaningful personal growth. We can best accomplish this by consistently meeting the expectations of our customers and providing them with value.

EXTERNAL & COMMUNITY INVOLVEMENT

We believe that society must have industrial organizations that it can trust. Trust and Confidence are earned by our performance, by open and direct communication, and by active involvement in the communities in which we live and conduct our business."

CANDID & OPEN COMMUNICATIONS

We value communications that are courteous, candid and open and that enable each of us to do our jobs more effectively by providing information that contributes to the quality of our judgment and decision making. Effective communication should also provide the means for gaining understanding of the company's overall objectives and plans and of the thinking behind them.

ENJOYMENT & FUN

We believe that excitement, satisfaction and recognition are essential elements of a healthy, creative and high-performing work environment. Having fun in our work should be a normal experience for everyone.

INNOVATION
Success requires us to continually strive to produce break through ideas that result in improved solutions and services to customers. We encourage challenges to the status quo and seek organizational environments in which ideas are generated, nurtured and developed.

INDIVIDUAL GROWTH & DEVELOPMENT

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We strongly believe in the dignity and value of people. We must consistently treat each other with respect and strive to create an organizational environment in which individuals are encouraged and empowered to contribute, grow and develop themselves and help to develop each other.

TEAMWORK & PARTNERSHIP

We believe that high-performing teams containing appropriate diversity can achieve what individuals alone cannot. Consciously using the diversity of style. Approach and skills afforded by teams is strength we must continue building into our organization.

DIVERSITY & INTERNATIONAL FOCUS

We value differences in gender, race, nationality, culture, personality and style because diverse solutions, approaches and structures are more likely to meet the needs of customers and achieve our business goals. Corporate Responsibility Report

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PRODUCT PORTFOLIO
Fertilizers
A specific product line that focuses on balanced crop nutrition and higher yield for the farmer

Nitrogenous Fertilizers

ENGRO Urea - A trusted name with farmers

Compound Fertilizers

ENGRO Zarkhez- Towards Balanced Fertilization

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Phosphatic Fertilizers

ENGRO Di-Ammonium Phosphate (DAP) & Zorawar - Leading Phosphatic fertilizers

Engro Urea
ENGRO UREA is a trusted high grade fertilizer containing 46% N, with moderate hygroscopic. It has a pH value of 6.8 (organic molecule) and is suitable for all crops on all soils. Engro Urea is an excellent source of Nitrogen for the vast majority of cultivated soils of Pakistan.

Engro DAP
Engro DAP contains 46% P2O5 and 18% N. More than 90% of P is water soluble. It has a pH value of 7.33 and is a good source of P fertilizer for all crops. It is an equally good source on problem soils (saline sodic) with coarse texture. On an overall basis it suits to about 90% soils of the country.

Engro Zorawar

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Engro Zorawar is one of the highest grade phosphatic fertilizers. It is acidic in reaction (pH >= 3.5) and contains 52% P2O5 of which more than 90% is water soluble, while the rest is citrate soluble. In addition to P, it contains 12% N, 2% sulphur and 1% calcium. It is a good fertilizer for all crops on all soils of Pakistan and produces excellent results on alkaline soils, due to its acidic nature. The acidic pH of Engro Zorawar also tends to slow down the rapid conversion of soluble P to water insoluble compounds, keeping it plant available for a greater period of time.

Engro Zarkhez
Engro Zarkhez is homogenously granulated fertilizer which maximizes crop yield by providing balanced nutrition for a wide variety of crops through the uniform availability of Nitrogen, Phosphorous and Potassium. Engro Zarkhez grades are specially produced to suit the requirements of individual crops and soils, and provide convenience to the farmer through ready availability of of precise quantities of different nutrients.

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Chemical Handling & Storage

Developing Pakistan's First Cyrogenic Storage Facility

Chemical Handling & Storage by Engro Vopak Terminal

Limited
A state of the art jetty and terminal at Port Qasim, Karachi for handling and storage of LPG and bulk liquid chemicals. Storage Capacity Number of Tanks Draft Sea Berth 69,000 m3 20 10 meters Vessels up to 75,000 dwt (currently 45,000 dwt) at Jetty Capacity 13 meters draft Access Sea/Road/Pipeline Products Handled & Stored Paraxylene Acetic Acid Phosphoric Acid (Handling only) Vinyl Chloride Monomer

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Acrylonitrile Liquefied Petroleum Gas Mono Ethylene Glycol

PVC Resin

Expansion and backward integration

PVC Resin by Engro Polymer & Chemicals Limited

Polyvinyl chloride (PVC) Resin: A synthetic resin, composed of repeating units of vinyl Chloride. It is very versatile and is used in a wide variety of products

1. SABZ PVC AU-58

AU-58 is a medium-low molecular weight suspension resin. It offers high fusion rate in processing, and has a narrow particle size range. It is very low in fish-eyes, gel count and foreign matter and has excellent heat stability and clarity. It is recommended for transparent and opaque rigid / semi-rigid PVC applications.

Applications
Rigid PVC sheet, PVC bottles, injection moulded PVC products like non-pressure PVC pipe fittings and conduit fittings, rigid PVC extruded film and sheet.

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2. SABZ PVC AU-60

AU-60 is a medium-low molecular weight suspension resin. It offers high fusion rate in processing and has a narrow particle size range. It is very low in fish-eyes, gel count and foreign matter and has excellent heat stability and clarity. It is recommended for transparent and opaque rigid PVC applications.

Applications
Rigid PVC sheet, PVC bottles, injection moulded PVC fittings for pressure application, rigid PVC extruded film and sheet, PVC welding rods.

3. SABZ PVC AU-67S

AU-67S is a medium molecular weight suspension resin. It has a porous particle structure and large interior surface. It has high plasticizer take up and absorption rate. On mixing, it results in free-flowing powder with dry feel. It is very low in fish-eyes and foreign matter. This grade has been specially designed for both transparent and opaque plasticized applications.

Applications
PVC shoes, sandals and soles (expanded and compact), PVC film, sheet and artificial leather, PVC cables, PVC garden hose and tubes with reinforcements, tubular film and tubing, PVC flooring and tiles, PVC water stops / expansion joints and plasticized PVC compounds.

4. SABZ PVC AU-67R

AU-67R is a medium molecular weight suspension resin. It has a narrow range of particle size distribution, high bulk density, and excellent dry-flow properties. This results into a high and uniform production rate in the extrusion process. This grade has been specially designed, and is recommended for rigid PVC applications.

Applications
Rigid PVC pipes, conduits and ducting,, PVC profiles such as doors, windows and other sections, PVC corrugated pipes, PVC shrinkable film and also twist wrap candy film, rigid PVC compounds for extrusion.

5. SABZ PVC AU-72

AU-72 is a high molecular weight suspension resin. It has a high plasticizer take up and absorption rate. On mixing, it results in free-flowing powder with dry feel. It is free from gels and foreign matter. It has superior dielectric properties and physical strength, which makes it an ideal choice for electric insulated PVC cables.

Applications
PVC cables, flexible calendared PVC film, sheet and leather, flexible PVC extrusion and injection moulded products.

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Power Generation

Our 217 MW Power Plant.

Power Generation by Engro Energy Limited

Engro identified a Power Project based on low BTU, high H2S gas from Qadirpur gas field. The project is unique as it will convert low BTU high sulphur content permeate gas, which is currently being wasted and flared, into 217 MW electric power

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industrial Automation

Providing process control solutions to your industrial units

Industrial Automation By Avanceon (formerly known as Engro

Innovative Automation Pvt. Limited)
Market leader in industrial automation business providing process control solutions to Industrial units. It offers Power & Energy Management Software solutions as well as High end Software that integrate production and business application. Human Machine Interfaces Variable Frequency Drives Distributed Control System Industrial & ERP Software Non-Contact Online Measurement Vibration Monitoring Analytical & Combo Solutions Weighing Conveyers Motors Field & Process Instruments With other Sensors Security & Monitoring Solutions Control Valves Combustion Products Programmable Logic Controllers

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Foods by Engro Foods Limited

Olpers: Standardized at 3.5% fat, Olpers is a premium, UHT all-purpose milk. Olwell HCLF: (High Calcium, Low Fat) Olwell is a premium quality milk for the
health conscience.

Olpers Cream : UHT Cream standardized at 40% fat Tarang: Liquid tea whitener

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Challenges and Issue Faced

In the year 2008, Engros focus will be on flawless implementation of the significant growth initiatives in al businesses, viz., fertilizer, food, energy, chlor-vinyls, chemical storage and industrial automation. Engro has also put in place plans to continue to source and retain quality people to sustain its growth ambitions. Urea demand is expected to be rebusting whilst phosphates demand is expected to be affecting by high international prices. The Board would like to take the opportunity to express its appreciation to the dealers, customers and employees for their dedication throughout the year. The Board also acknowledges the support and corporation received from the Government, Joint Venture, Partners, Bankers, Suppliers, Contractors and other Stakeholders. These are the following challenges and issues faced by the organization at starting:

Shortage of irrigation water

Both during the rabi (winter) and kharif (summer) seasons for crop sowing, which led to reduced farmer income. As a result, overall urea off-take fell by 1% to 4.0m tons whereas demand for DAP (Di-Ammonium Phosphate) fertiliser dropped by 5% to 1.2m tons. ECPL faced a marginal decline in urea volumes (0.6%) and a 17% decline in volume sales of imported DAP fertilizer. The sales drop in case of DAP is attributable to drought conditions and insufficient supply sourcing in a period of uncertainty relating to GST levy in Pakistan. The Govt. imposed a 15% GST on the selling price of DAP and other fertilizers w.e.f. Sept 02, 2001.

Increase in Gas Price

Fertilizer Policy was announced in Aug 02 which maintained subsidy on feedstock (gas used as raw material - constituting 20% of COGS/ton) with fixed feedstock price

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increases stipulated for the next 5 years. However, fuel stock (gas used for running the plant - constituting 40% of COGS/ton) prices would continue to be deregulated and adjusted every 6 months. During FYE 01, gas price increase was much lower as compared to previous years as there was no increase in feedstock prices while fuelstock went up by 15%.

Start-up losses on NPK operations

ECPL expanded into 100k NPK (blended fertilizer) plant, which came online in Apr 01. However, initial teething problems limited sakes to 24k tons against production of 31k tons. NPK business showed a loss of PKR 109m. However, the plant is currently operating at 80% of its design capacity and some reductions in operating expense have been achieved.

Loss of Production
ECPLs urea production during the year was down by 2% to 790k tons on account of certain production issues which were significantly smoothened towards the end of the year.

Competitive Strategies
Before formulation an effective strategy for getting competitive edge, the manger must conduct competitive analysis. This involves assessing both environmental and organizational factors influencing ability to compete effectively. This competitive situation could be find out with help of SWOT analysis:

Strengths
Strong, professional management (management practices & principles inherited from Exxon Chemicals USA, after the management buyout in 1991). Subsidized gas pricing during the last 10 years has resulted in strong accumulated reserves. Low gearing will provide financial strength to the Company in coming years. 50% joint venture, Engro Vopak, has completed fourth year of profitable operations. Future dividend income will hedge against ECPLs core-business risk.

Weakness
While Engro Vopak is performing satisfactorily, deterioration in operating results of Engro Asahi could result in Asahi calling on financial support from ECPL.

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Engro Urea does not command the same market premium as competitor Fauji Fertilizers product Sona. However, Sona urea is sold mainly in the Punjab province, whereas Engro has a strong niche in Sindh province.

Opportunities
New petrochemical projects will help improve Group profitability through 1) clear synergies, and 2) reduction in business risk through capturing a larger segment of the value-addition chain. Agriculture business projects like blended fertilizers, hybrid seeds etc.

Threats
Dumping of imported fertilizer in the local market. Government action is often protracted. During 1999, ex-Soviet states dumped huge quantities of urea in Pakistan. Even though the government imposed 10% regulatory duty, it was too little and too late to be effective. Takeover by the Burewala Group. The takeover attempts may subside, however the management of Engro Chemicals may become too drawn into this battle while it continues, causing reduced focus on operations. Droughts directly affect demand. Engro urea sells primarily in southern part of the country where the droughts are more frequent.

When we talk about our competitor in the market, our main competitor is FFC. FFC was incorporated in 1978 as a private limited company. This was a joint venture between Fauji Foundation (a leading charitable trust in Pakistan) and Haldor Topsoe A/S of Denmark. FFC-Jordan Fertilizer Company Limited is a joint venture between FFC and Jordan Phosphate Mines Co. Jordan. The largest urea manufacturing facility of Pakistan consisting of two ammonia/urea units owned by FFC is built at Goth Machhi in district Rahim Yar Khan. Goth Machhi is situated at a distance of 2 kms from the main Lahore-Karachi highway and is adjacent to the main railway line. The two plants are based on natural gas from Mari Gas Fields and have an annual designed production capacity of 1.3 million tons of urea. FFC commenced commercial production of urea in 1982 with annual capacity of 570,000 metric tons.

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Through De Bottle Necking (DBN) program the production capacity of the existing plant increased to 695,000 metric tons per year. Production capacity was enhanced by establishing a second plant in 1993 with annual capacity of 635,000 metric tons of urea. FFC participated as a major shareholder in a new DAPS/Urea manufacturing complex with participation of major international/national institutions. The new company (FJFC) commenced commercial production with effect from January 01, 2000. The facility is designed to produce 551,000 metric tons of urea and 445,500 metric tons of DAP. Fauji Fertilizer Company currently has 1,769 employees. With sales of 16.79 billion Pakistan The following tables provide a comparison of operating performance of ECPL with its closest competitor and market leader - Fauji Fertilizer Company:

Market

Engro Chemical 19%

Fauji Fertilizer 40% 1,300,000 tons per annum (1 plant) Sells prilled urea. Affiliate (FFC Jordan) DAP. Sona urea very popular product, esp. in northern Pakistan. Sona is granular urea which is perceived to be better.

share Capacity 850,000 tons per annum (2 Products plants) Aside from sale of Engro urea, ECPL also sells imported DAP, NP, MOP and seeds. Brand Engro Urea popular brand in southern part of the country.

NPK fertilizers and hybrid manufactures granular urea &

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Vision

To become a diversified chemical company operating internationally. A number of projects involving backward & forward integration are under consideration.

Setting up industrial units in the fields of petroleum refining, paper & pulp, mineral acid, & off-shore fertilizer manufacturing.

Government policies
In Mar 02, the Govt. imposed 15% GST on selling price of urea (PKR 6,660/ton) with the entire impact allowed to be passed on to the customer. In response to the above, prices in fact, have increased by 5.7% since March which is considered sufficient to protect margins. Given the decline in domestic fertilizer off-take, the Govt. has allowed export of 0.23m tons of urea in order to reduce inventories. However, exports at current prices are not a viable option. The local urea ex-factory price in FOB terms currently stands at US$ 120/ton. Add US$6-8 for local transportation to port and another US$20 freight to Middle East. Thus, US$146-148/ton international price would be required to make exports viable. However, Middle East bagged prices currently stand at US$ 112115/ton. To date, the fertilizer industry in Pakistan has been subject to preferential treatment in the form of subsidized gas prices. However, in line with IMF conditionality aimed at de-regulation, the Fertilizer Policy announced in Aug-01 envisages a gradual withdrawal of subsidy offered to the industry

Suppliers
Mari Gas Company is the sole gas supplier to ECPL, with the latter having a total gas allocation of 103 MSCFD. Payments to Mari Gas are made on a fortnightly basis. The competitive analysis for Engro Chemical Pakistan is as fallows

Porters Competitive Forces Model:

Porters Competitive Forces model analyzes the nature and intensity of competition in a given industry in terms of five major forces. Rivalry: Engro Chemical Pakistan has rivalry with the other fertilizer manufacturing companies in the fertilizer Industry of Pakistan. The companies that offer rivalry to Engro Pakistan are i. Fuaji Fertilizer Company Limited ii Dawood Hercules iii Pak Saudi Fertilizer Limited

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iv Pak Arab Fertilizer Various competitive tactics among rivals lower prices that can be raise costs of doing business. Bargaining Power of Customers: At Engro Chemical Pakistan Limited there is no customer power of bargaining, because the company is already giving good quality at a reasonable rate. Bargaining Power of Suppliers: In the fertilizer industry of Pakistan there is comparison between the rivals in prices. But as Engro Pakistan is not an autonomous body in manufacturing their products so they face encounter bargaining power of suppliers. Threat of substitute products: Engro Pakistan as threat from their rivals in the industry, but they maintain their quality standards and manufacturing status at a relatively affordable rate.

Culture
Our employees bring expertise and dedication to the workplace

Organizational Culture: The shared values, principles, traditions and ways of doing things that influence the way organizational members act. Sources of Organizational Culture: The organizations founder (vision and mission). Past practices of the organization ( the way things have been done ) The behavior of top management.

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Our people and our culture drive us to achieve greater success. We look for new and exciting ways to return values to our customers and our shareholders. The culture of Engro consists of Two Factors: 1. Our People. 2. Quality and Training.

1. Our People: More than 700 employees bring expertise and dedication to the workplace. We value each employee, value their inputs and view. Continuously striving to become employer of choice, we provide a workplace where people feel confident, valued and inspired. 2. Quality and Training: Employer development is one of the pivotal areas for organizational development. To organizational competence levels, new training programs encompassing performance management, leadership and competency development are introduced.

Improvisation through Six Sigma: the legend leads again

Engro is among the first Pakistani companies implementing six sigma across all areas and utilizing it as a management system to execute its strategic objectives. Among the focus areas, employee development is the most critical and six sigma is leveraged to help bring out the best in our people. Employees will drive improvements in other areas; speed, innovation, perfection and in becoming world class professionals. Six Sigmas robust problem solving methodology and statistical toolkit allows the company to benchmark processes against global standards in a language that is comparable across any industry or function. It helps ensure that Engro sustains its promise of delivering high quality products and services to its customers on time, every time. The learning does not stop here. The Company has a range of additional training programs, both core management and technical, which are used on a regular basis to

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develop skills and knowledge. In addition, specific one-off programs may be developed on a need basis. Alternatively, individuals may attend externally run programs and there may be cases where learning by planned job experience is the best answer. Employees contributions to assessing their own training needs are welcomed as are the suggestions for suitable programs. How employees learn culture: Stories Engro is best known for its quality and diversification. The customers are satisfied from products. It is our people who make Engro a great company. Rituals In Engro all the employees are fully dedicate to their workplace and our tradition is diversification and our core values. Symbols Engro symbols motivate the employees which is Growing with Pride Language In Engro mostly that language is used which is easily understandable by the employees, so the employees easily understand the culture of the organization.

Financial Position of the Company

Stakeholders:
Any constituencies in the organization external environment that are affected by the organization decision and actions. These are the stakeholders of Engro Pakistan Employees Contract Employees Customers Consumers Vendors Shareholders Dairy Formers Students Patients Total Lives Touched 1664 3005 68,000 3,100,000 3500 11,365 51,000 4300 32,500 3,275,334

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Financial Positions in Last Five Years:

Highlights of Year 2007 1. Sales for the year were Rs. 23.3 billion, higher by 32% due mainly to higher turn over of Phosphates and Zarkhez. 2. Profit before tax at Rs. 4.2 billion was 23% higher than 2006 principally because of higher other income from joint ventures and subsidiaries. 3. Profit after tax was 3.15 billion which is a new record of the company and is higher by 24% over the 2006 profit of Rs. 2.55 billion.

Five Year at Glance

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Million Rupees Net sales Operating expense Profit before tax Profit after tax Employee costs Taxes, duties & development surcharge Workers fund Property, plant & equipment Capital expenditure Long term investment Long term liabilities Net current assets Dividends and Shares Shareholders funds Shares outstanding at year end Dividend per share. Rs. Dividend payout rate Bonus shares (thousand matric tons) Engro urea production Engro urea sale Zarkhez/ Engro NP production

2007
23183 3279 4235 3155 1050 5890 316 6109 8024 4108 15423 11132 15482 193 7.0 41% _ 954 874 125 135

2006
17602 2756 3445 2547 950 4633 251 6319 391 1480 1800 2042 9370 168 9.0 58% _ 969 945 108 116

2005
18276 2641 3220 2319 804 4162 215 6351 377 748 2890 2211 7376 153 11.0 77% _ 912 840 157 143

2004
12796 2233 2315 1611 795 3911 156 6492 520 2580 1618 6586 153 8.5 81% _ 870 891 121 114

2003
11884 2534 2323 1557 749 3457 168 6648 370 85 3236 1796 6199 153 8.0 79% _ 955 930 72 86

Growing with Pride

Why Engro is Successful?

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Engro has never been a company to rest on its laurels. Our people and our culture derive us to achieve greater success. We look for new and exciting ways to return value to our customers and our shareholders. Its tough and demanding but also fun and always interesting. You will have opportunity to succeed as an individual and as part of a team. Our business gives you flexibility for change the opportunity to learn about new markets and provides unparalleled career options. Engro people are some of the best in the world with shared passion to learn and stretch beyond their limits. It is our people who make Engro a great company and an exciting place to work. Key Success Factors

Brand leadership: Farmers perception plays a major role in determining a brands success; Manufacturing technology: Newer technology helps achieve low-cost leadership within the industry Economies of scale. Our core values. Diversification of our business. Our corporate culture

Engro Chemical Pakistan has gone strength to strength, reflected in its consistent and enviable financial performance, growth of the core fertilizer business diversification into our fields. Its performance & outlook is following the declared vision, To be the premier Pakistani enterprise with a global reach, passionately pursuing value creation for all stake holders

Conclusion:
In the conclusion section we first say that Engro is doing good business. If investors feel that Pakistan is not a good place to invest they look at the success of the Engro Pakistan, how they are doing business in that situation when there is economic crisis, bad position of the stock exchange.

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Engro Chemical Pakistan Limited is the first company in history of chemical industry who makes fertilizers as well as food products together. First they only manufactured fertilizers only but they diverse their business into many fields like, Engro Vopak Terminal Limited, Engro Polymer & Chemical Limited, Engro Energy Limited, Engro Innovative Automation Pvt. Limited, and Engro Foods Limited. The culture of the company is very outstanding. The culture is maintained in such a way that more values returns to their customers and shareholders. More than 700 employees bring expertise and dedication to the workplace. The management of the organization is very professional and they are ready to compete all the challenges. The company financial performance is very good and continusely increased. Infact Engro Chemical Pakistan Limited is growing by leaps and bound and they prove that what they say, Growing with Pride

References:
For this project we visit the website of the company and collect data and also we visit Engro North Zone to collect information about the management. These are the following references from where we gather information.

www.engro.com,pk www.engrozarari.com www.wikipedia.com www.scribed.com www.slideshare.com www.inpopk.com

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