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FFC occupies a special niche in the industrial and agricultural development of the country with a successful track record of excellence business performance. The company moved from one high level 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 thousand tones 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 out of the recent regional crisis. Uncertain economic and weather conditions, high natural gas prices, global product oversupply, falling international urea prices and weak domestic demand contributed to an extremely difficult operation environment during the year which created a downward pressure on 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 strategies implemented over the years allowed the company to maintain solid financial foundation throughout this prolonged downturn. With a vision to acquire self - sufficiency in fertilizer production in the country, 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.
The initial authorized capital of the company was 813.9 Million Rupees. The present share capital of the company stands at Rs. 3.0 Billion. Additionally, FFC has Rs. 1.0 Billion stakes in the subsidiary Fauji Fertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited). FFC commenced commercial production of urea in 1982 with annual capacity of 570,000 metric tons 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 DAP/Urea manufacturing complex with participation of major international/national institutions. The new company Fauji Fertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited) 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. This excellent 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, FFC acquired ex Pak Saudi Fertilizers Limited (PSFL) Urea Plant situated at Mirpur Mathelo, District Ghotki from National Fertilizer Corporation (NFC) through privatisation process of the Government of Pakistan. This acquisition at Rs. 8,151 million represents one of the largest industrial sector transactions in Pakistan Recently Fauji Fertilizers Company offered the highest bid of Rs 8.151 billion for the Pak-Saudi Fertilizers Limited here on Saturday. Second highest bidder was the Dawood Hercules that offered Rs 3.78 billion while the lowest bid of Rs 3.602 billion was received from Engro Chemicals. In simple words Fauji Fertilizers Company offered Rs 4.50 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. Three
companies, Fauji Fertilizers, Engro Chemical and Dawood Hercules filed bids for the said company. Fauji Fertilizers offered Rs 135.85 for each share of the Pak-Saudi Company, Dawood Hercules offered Rs 70 per share, while Engro Chemical offered Rs 66.70 for a share. Seeing a far high difference in the price offered by Fauji Fertilizers, the other two bidders did not take interest in contesting privatization of the said company and wished 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 was incorporated on May 8, 1978. Based Unit at Goth Machhi commenced commercial production in June 1982 Based Unit up-graded in April 1992 to produce 695 thousand tones annually. Expansion Unit at Goth Machhi commenced commercial production in March FJFC founded in November 1993 with initial contribution of Rs. 1 billion. The PSFL acquired on May 31,202 and merged with FFC on July 1,2002. Situated at
with annual designed capacity of 570 thousand tones urea.
1993 with designed capacity of 635 thousand Tonnes. company’s investment in FJFC now stands at over RS 4 billion. tones. Mirpur Mathelo the plant has annual designed production capacity of 574 thousand
since inception. the The company’s annual Reports have been adjudged as one of the best reports in exchequer in the form of taxes and government levies. In terms of import substitution this has resulted in national savings of well over 3 billion dollars in foreign exchange. The aggregate designed production capacity of FFC is three plants now stand at Since inception to 2002. FFC has produced and marketed 21million tones of urea. farmers. Since inception the company has contributed Rs. highest ever.5 million Man-hours of operation without injury were achieved in 2003. in 1997. fertilizers. door-step since 1986. FFC was the first company in Fertilizer sector to achieve ISO 9002 certification FFC has been placed amongst the list of top 25 companies of PAKISAN BY KSE 21. for eight years consecutively. including 2002. the Chemical sector twice by joint committee of ICAP/ICMAP. topping the list in 1997. Since inception the company has sold/marketed almost 28 million tones of FFC is the only company providing Mobile Farm Extension Services at the FFC was the first company in fertilizer Sector to achieve in 2002 the highest ever. 42 billion to the national The company earned a net profit after tax of over Rs. 4 . almost 2 million tones annually. 3 billion for the fifth time The company was the highest tax payer in the corporate Sector ub 1993/1994.
5 . FFC's vision for the future envisages diversification and undertaking ventures at home and abroad in collaboration with leading international partners.Vision Statement Vision Statement FFC is focused on harmonizing its capabilities and maximizing its potential.
6 .Mission Statement FFC's mission is to sustain its role as the leader in industrial and agricultural advancement of Pakistan by setting and achieving new and higher goals. providing customers and profitable returns to its shareholders. The Company is committed to ensuring products safe and and allied conducive high services to work quality its environment. and taking initiatives.
faireness and respect. To deliver exclusive values and services to the shareholders and customers through its strategies To place great value on social responsibilities and welfare To develop a culture based on principles of honesty. 7 . To hire and retain satisfied workforce To play a vital role in agricultural development of the country To provide the quality products To set high standards for production and sale and achieve these objectives To be environment-friendly organization To promote education in the farmers community by awarding merit scholarships. To create the agricultural awareness in farmers through media and training. To provide farmers technical services through technical services department free of cost. • • • • • • • • • • • • • • To sustain its role as market leader in urea production and marketing.Objectives of the company The broad objectives of the company are. To help upgrade the capability of fertilizer research. To provide a neutral common platform to resolve contentious issues in fertilizer sector. extension and marketing personnel in the transfer of fertilizer technology. integrity.
This performance record is considered unparalleled in the country and matches high standards any where in the world. Building on the foundations of the last 20 years. the company is confident to take on the new challenges. Three projects in a span of less than 20 years have been set up. the company is preparing to harmonize itself with new century. FFC 's vision for the 21st century looks for diversification and establishing projects beyond the territorial limits of the country in collaboration with world famous international industrial holdings.Vision 21 FFC has progressed remarkably from its inception in 1978 till to date. At this point in time. The list of different projects that are being evaluated at present are: Oil Refinery Paper Mill Project Software Development House Off-Shore Fertilizer Complex Mineral Acid Production Petrochemical Revamp of existing FFC facilities 8 . Each of these have incurred an investment of over 300 million US$ amounting to one of the largest investments in Pakistan.
QULITY POLICY OF FFC 9 .
Rahim Yar Khan Goth Machhi. Rahim Yar Khan. Gen.. Karachi Office D-143. Gen. Karachi. Sadikabad. Sadikabad.5.F. Marketing Division Lahore Trade Centre. Goth Machhi. Lahore. 11 Shahrah-e-Aiwan-e-Tijarat. Rahim Yar Khan Mir Pur Mathelo Fauji Fertilizer Bin Qasim Limited Company Information Chairman Lt. Kehkashan Clifton. Mahmud Ahmed. Auditors A. It markets the whole production of FFBL. Sadikabad. Rawalpindi Cantt. Syed Muhammad Amjad. KDA Scheme . PLANT-I PLANT-I PLANT-III PLANT-IV Goth Machhi.) M. Ferguson & Co. Akram Khan (Retd) 93-Harley Street. HI(M) (Retired) Secretary Registered Office Plantsite Brig(Retd. 10 . Block-4. HI.Company Manufacturing Facilities The Company has three plants and is a shareholder in FFBL. HI(M) (Retired) CHIEF EXECUTIVE AND MANAGING DIRECTOR Lt.
TD is manned by a team of highly trained project engineers. Project Feasibilities and Project Development. development of new projects.Chartered Accountants BUSINESS AREAS OF THE COMPANY Engineering Manufacturing Marketing Engineering After the successful start-up of the first plant in mid 1982. include monitoring plant performance. advising management on technical matters and development of a technological base along with consultancy functions. Since 1982. TD is equipped with latest computing facilities along with engineering software from world famous engineering designer M/s Haldor Topsoe of Denmark and other technical software purchased from the engineering companies as well as in-house developed 11 . Nearly half of the strength is located at the plant to provide on-the-spot assistance to the manufacturing units besides feeding vital plant data to the Head Office for immediate processing. process engineers and IT specialists. a group of selected engineers was assigned to Technology Division-TD (then called CED) Head Office with the objective of providing engineering and technical backup to the plant operations Additional responsibilities that are assigned to TD. Project Management. handling capital investment projects. TD has made tremendous progress in the field of Plant Engineering. The development of TD was equally supported by the FFC management which has recognized the need to promote research and technological development activities.
finance and administration. FFC Plant Expansion Project 2 and the Fauji Fertilizer Bin Qasim (formerly FJFC) Project. distribution. Delegations from China. TD’s role in all projects starts from the conceptual stage and concludes at the successful commissioning and handing over of the project to the Operation Group. Over the years. The success achieved so far by TD proves that FFC now possesses requisite in-house capabilities to ensure successful completion of large scale projects within allocated budgets and assigned project schedules. setup in July. is built at Goth Machhi in district Rahim Yar Khan. sales.software related to engineering and other general purpose need of the company. Manufacturing The largest urea manufacturing facility of Pakistan consisting of two ammonia/urea units owned by FFC.Goth Machhi is situated at a distance of 2 kms from the main Lahore-Karachi highway and is adjacent to the main railway line. TD’s most significant contributions to date have been successful project management of FFC Project 1 debottlenecking. 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. field warehousing. the plants have demonstrated an operational excellence which has become a reference for the engineering companies whose process technologies are used here. 12 . 1978 is responsible for all marketing operations including planning. This technology enables TD to undertake detailed process/engineering design related assignments and to provide most valuable assistance to other departments within the company. the company started marketing its urea under the brand name "Sona". farm advisory services. With the commencement of commercial production in June 1982. Middle East and Far East keep visiting the plant site for gaining first hand knowledge before deciding to purchase a new plant Marketing Division.
Subsequent to this decision FFC started import of these fertilizers and as a result timely supplies were arranged. FFC had to face very tough competition from the beginning. the other manufacturers namely Engro. When FFC came into the market with its production in June 1982. phosphate and potash based fertilizers. The Marketing Division now has the necessary expertise to handle fertilizer imports and exports. marketing quality products backed by efficient and effective support services with emphasis on developing the market through practical and innovative farmer education. FFC pioneered urea exports which not only helped in stabilizing domestic urea but also earned valuable foreign exchange for the country. enhanced the brand image of its product Sona urea which has become the number one brand.Marketing The company markets not only Sona urea but also imported nitrogen. 13 . FFC believes in selling a programme rather than just a product. Ltd). This competition coupled with the huge surplus of urea in the domestic market posed a great challenge to the company in the initial years. During the period 1983 to 1986 when a large urea surplus existed in the country. Farmers were thus provided with quality product in bags with guaranteed correct weight and this brought about a very positive qualitative change in the phosphatic fertilizer business in the country. FFC not only met the challenge by capturing the desired market share but in the process. The Company is also marketing half a million tonnes of sona urea granular manufactured by Fauji Fertilizer Bin Qasim (formerly FFC – Jordan Fertilizer Co. For this. Dawood Hercules and National Fertilizer Corporation were already well established in the market. the company has adopted a customer oriented strategy. The brands of Engro (Engro) and Dawood Hercules (Babber Sher) were considered premium brands in Sindh and Central Punjab respectively. The Government of Pakistan deregulated the trade and prices of phosphatic fertilizers on 21 August 1993.
A” with equity of 800 Million Moroccan Dirhams. where OCP already has a large chemical complex.350 metric tones per day of Di- 14 .300. It is not a grass root project and will utilize basic infrastructure and ancillary facilities already present at Jorf Lsafar Site.000 MT Phosphoric Acid per year by consuming 1. The cost of the project is estimated at US$ 203 Million and is likely to start commercial production by early 2007. Morocco . have entered into a Joint Venture Company in Morocco named “Pakistan Maroc Phosphore S. Fauji Fertilizer Bin Qasim Limited Fauji Fertilizer Bin Qasim Limited is a US$ 461 Million Project. The project is sponsored by the largest and well known industrial group of Faujis and Jordan Phosphate Mines Company. Fauji Fertilizer Bin Qasim Limited at a glance: Capital Cost: $461 million Joint Venture of Fauji Foundation and Fauji Fertilizer Company Limited Production Capacity: 1. Fauji Fertilizer Company Limited and Fauji Fertilizer Bin Qasim Limited.000 MT Phosphate Rock and 370.IT is a Joint Venture Office Cherifien des Phosphates (OCP) Group of Morocco and Fauji Group including Fauji Foundation. The proposed project is planned to be located at Jorf Lasfar . one of the largest in private sector in Pakistan.670 metric tones per day of Granulated Urea and 1. producing both DAP and Granular Urea for the first time in the country.000 MT Granular Sulfur. This Project will produce 375. It will meet total requirement of phosphoric acid for the DAP production in FFBL plant at Bin Qasim.
a preliminary feasibility was undertaken in 1992. the detailed feasibility studies was completed and the Lake Charles. ammonia plant was procured for relocation. a wholly owned subsidy of Office Cherifien Des Phosphates. followed by urea in April 1999.A. 2003 and supply of DAP in the market started thereto. After initial discussions with the Jordan Phosphate Mines Company. New plants of DAP and urea were installed and the first production of DAP commenced in Nov 1998. 2003. Termination agreement with Jordan Phosphate Mines Company Limited (JPMC) was signed on 24/06/2003. Pakistan was importing almost one million tons of urea and 800. By 1993. USA. with the same JPMC is no more a partner or equity holder in the Company. DAP Plant recommenced its production on September 22. Company History Of FFBL By the early nineties. A long term agreement for the Supply of Phosphoric Acid between Maroc Phosphore S. 15 . At that time management of Fauji Fertilizer embarked on the FFC-Jordan Fertilizer Project in order to make Pakistan self-sufficient in urea and reduce the import of DAP.Ammonia Phosphate (DAP) FFBL has the distinction of producing 13% of urea and 31% of Di-Ammonia Phosphate of the country's total requirement.000 tons of DAP per annum. Morocco was signed on July 21.
Vision Statement of FFBL Our vision and overall corporate strategy is to: Be a leading fertilizer company with a diverse product base Gain excellence in operations Ensure exemplary Business Ethics Ensure Safety. Healthy and friendly environment Exercise effective corporate governess 16 .
Mission Statement of FFBL To produce competitively priced. quality fertilizers and achieving sustainable and viable growth rate through excellence and generating optimum profits to the total satisfaction of all stakeholders 17 .
It is the sole producer of DAP SONA DAP 18 .PRODUCTS OF FFBL Sona Granular It produces 13% of total production SONA Granular SONA DAP FFBL produces 31% of country’s demand.
Jehangiria Fauji Cereals. Nukerji. Rawalpindi Fauji Metals.and fairplay finds it rather difficult to adjust to the ‘cavy’ conditions. A large number of these simply 19 . Sangla Hill Fauji Foundation Experimental & Seed Multiplication Farm. Karachi. Rawalpindi.Fauji Foundation Profile of a Welfare Organisation for Ex-Servicemen AN ARMY OF BUSINESS INTERESTS Institute of Management & Computer Sciences 1 College of Education 1 Intermediate Colleges 2 Model Schools 81 Vocational Training Centres 67 Technical Training Centres 9 Referral Hospitals 6 Rural Hospitals 5 Fauji Foundation Medical Centres 24 Mobile Health Units 2 Dispensaries 27 Wards in CMH 1 1 (CMH Mardan) Fauji Corn Complex. Sind. Rawalpindi Foundation Gas. Islamabad. Tando Muhammad Khan Fauji Sugar Mills. Fauji Institute of Information Technology & Medical transcription Fauji Foundation Institute of Management & Computer Sciences. Fauji Medical Transcription. Fauji Software Company. Fauji Cement Company Ltd Fauji Fertilizer Company Ltd Fauji Jordan Fertilizer Company Ltd Fauji Kabirwala Power Company Ltd Mari Gas Company Ltd OVERVIEW OF AN EX-SERVICEMEN’S WELFARE ORGANISATION An ex-serviceman who spends his life in an atmosphere of discipline . Rawalpindi Fauji Polypropylene Products. Rawalpindi. Rawalpindi Fauji Oil Terminal Company. Hub Chowki Fauji Sugar Mills. Khoski Fauji Sugar Mills. NIC Project.
Far from it.and monetary environments in the country do not permit full social benefits to these otherwise potential human resources. 20 . I went on to find the sore point of employment of retired officers and for which a very large number of applicants come up. levies and other liabilities as surcharges et al and is never a defaulter on any count. It is unfortunate that the economic conditions .cannot adjust to the non-egalitarian environments .and some are simply baffled and disillusioned. Sciences 9 66 2 Medical: Hospitals Day Health Centres Mobile Dispensaries 12 24 48 The data explains that some quarters thought that the Foundation was a rather ‘privileged’ outfit. it is here that the Fauji Foundation comes in a big way in providing them social security and such facilities as education for their children and health coverage. the Foundation pays its full quota of taxes.942 Technical Training: Technical Training Centres Vocational Training Centres Fauji Institutes of Comp. Education Colleges Schools Scholarships 2 64 1.30.
Finally.and its present assets stand at over 9 billion which were just around Rs 18 million in midfifties. But now some more vacancies have been created within the Foundation.irrespective of the profits made by it. FF in fact has a massive mandate as it rightly claims to be ‘A charitable trust for the welfare of ex-servicemen.and are terribly oppressed and miserable once they shed their uniforms. and their dependents.and over a short period of time it has grown phenomenally . He must be congratulated for that. I have tried just to highlight some of its more important facets. FF is unique in this respect that it looks after the welfare of a good over nine million exservicemen who are invariably ignored by the other government agencies . It is not possible to present the entire budget of the Foundation in this presentation nor even a glimpse of its entire gamut of activities.and a real success story. one should think that Fauji Foundation is a unique outfit for the welfare of exservicemen.in providing. Fauji Foundation (FF) may be singled out for its unique performance and operation. as he did so admirably so far. 21 . Of course it must make money for its dual role but as I have put it the outfit has much loftier overall goals which are humanitarian and not purely money minting which any thrifty and miserly business house can easily make notwithstanding the dubious means employed for this goal.categorically that the number of vacancies with the Foundation is very small and now the GHQ Welfare Directorate has also been associated with the process of finding work for retired officers. education and re-employment facilities. It is both highly humanitarian and forward looking in its industrial planning.’ No other business house in the country has such a massive egalitarian mandate . One should hope that the present MD will continue with the good work of presenting the activities of his outfit personally. FF is a bit of a miracle . These poor souls notwithstanding their expertise are misfits and it is FF which comes to their rescue . It is run with vision and egalitarian purposes. Surely it is remarkable feat . health.
and beyond for education and technical training stipends. technical training. education. Sons of ex-servicemen up to the age of 18 years . The performance of FF is more remarkable especially as the foundation is a selfsupporting entity in entirety. the foundation has to do well in its commercial ventures where it must invest wisely. A very brief business profile of FF is indicated as below: Fully Owned Projects include: 22 . It is a charitable trust which receives no financial assistance from either the Federal or the Provincial governments. FF beneficiaries include the following categories of service personnel: • Released. • • • • • This is a mouthful . employment. It has to generate its own funds for the massive humanitarian mandate. and run the business shrewdly. Legally wedded wives and widows of the above personnel.and it also earned the coveted ‘The World Veterans Federation Rehabilitation Prize’ in 1997 at Seoul (Republic of Korea).) Cadets of service academies invalided out of service for disabilities attributable to military service. It also does not get any donations from any other source. Invalid sons of ex-servicemen for medical treatment (No age bars.FF has earned a very considerable applause outside the country . It runs that the prize was awarded ‘for its remarkable achievements in looking after ex-servicemen and their families in providing healthcare.and divorced daughters until remarried. retired and discharged personnel of the Regular armed forces who are citizens of Pakistan. artificial limbs and other facilities for the rehabilitation of disabled ex-servicemen. The citation for this remarkable prize is worth quoting.’ Very few like outfits or NGOs can boast of such a remarkable performance. thus enabling them to be full-fledged citizens contributing to the welfare of their communities.and out of sheer necessity. Unmarried daughters of ex-servicemen .
Fauji Oil Terminal and Distribution Company Limited. Marketing prospects for the finished goods/products. The industrial units/ projects have been set up with great care and some of the factors which have been taken into account for this area: Availability of raw material in the area. over labour intensive smaller projects. Availability of civic amenities. Fauji Sugar Mills Tando Mohammad Khan.Jordan Fertilizer Company Limited. Fauji Sugarcane Experimental & Seed Multiplication Farm. FFC. Fauji Polypropylene Products Foundation Gas. Fauji Sugar Mills Sangla Hill. Fauji Corn Complex. Fauji Sugar Mills Khoski. Preference given to declare tax free areas by the government. New Projects consist of: Fauji Kabirwala Power Company Limited. Fauji Cereals. Geological and environmen Parameters related to the project. Fauji Cement Company Limited. It is through wise investment and expert management that FF has established a nitche in the Private Sector. administrative facilities and infrastructure. Mari Gas Company Limited. 23 . Shareholding Projects include: Fauji Fertilizer Company Limited. Setting up of profit earning intensive mega projects with foreign investors.
In fact as commonly . the management of this outfit has been most prudent to have developed to such an extent from almost a scratch over such a short time.and rather erroneously thought there was no arbitrary consideration for setting up of a particular project in a special area. And sure. Creation of a balance between the province and different regions within the province by setting up of projects on the basis of percentage of ex-servicemen residing in the area. This growth is indicated in an inset. Finally here we have an outfit which has set a pace both in industrial development . In fact it is far from it .and the lenders.and there is a perfect rationale for the location of every such facility. 24 . It will be seen that it is most accelerated in the medical and education sectors especially in the current year. The main factors taken into account for each location are as below: Proliferation of the benefits to the area which are densely populated by the exservicemen. Terms and conditions and at times restrictions imposed by financial institutions .and welfare sectors which is most confidence giving. At first glance it appears that the welfare projects have been established somewhat arbitrarily. And at some repetition the criteria for such locations has a perfect reason. It is most confidence giving and interesting to see the pace of growth of welfare projects. Setting up of the projects in areas with good communications and other administrative facilities needed for the smooth running of these projects. and many ex-servicemen who do not have such facilities located in their areas feel that way.
INTRODUCTION TO INDUSTRY 25 .It is heartening that the foundation has in its pipeline still higher goals .and diverse investment which I am sure will be equally profitable as the previous investments have been.
Following World War II. Potassium. These are referred to as the minor nutrients.nitrogen. or micronutrients. These are commonly referred to as macronutrients. simply. Coupled with growing food demand and the development of higher-yielding 26 . Minor nutrients or Micronutrients There are a number of other nutrients plants need in small amounts. The analysis found on each bag or bulk shipment of fertilizer tells the farmer or consumer the amount of nutrients being supplied. and potassium. Just like the human body needs vitamins and minerals. plant food. phosphorus. phosphorus. new technologies allowed for the rapid expansion of fertilizer production. Fertilizer makers take those three nutrients from nature and put them into soluble forms that plants can easily use. Macronutrients Plants need large amounts of three nutrients – nitrogen. but end up being mixed together in varying amounts to match the needs of a particular crop. These many nutrients are typically produced separately. Plants need large amounts of three nutrients -.About Fertilizer Fertilizer is. States have a system of laws and regulations that ensure the fertilizer is properly labeled and delivers the amount of nutrients stated on the bag. plants need nutrients in order to grow. Our world would be vastly different without commercial fertilizers.
929 14.414 8. We've used the most recent developments in science to study our products and make sure safety comes first.664 9.588 13.137 14.931 11. Today.474 19. The following data is about consumption and then production.999 10. the abundance of food we enjoy is just one way fertilizers help enrich the world around us. we will have to work hard to ensure our products are safe. GLOBAL OVER VIEW OF FERTILIZER World Fertilizer Use Our world would be vastly different without agriculture and agriculture is impossible without fertilizer.106 12. In order to capture the important benefits of fertilizer. While fertilizers provide many important benefits that are necessary for our way of life.799 17.490 15.182 33. fertilizer helped fuel the Green Revolution.003 52.097 22.612 12.crop varieties.884 47.760 16. the improper use of fertilizers can harm our environment.179 10.736 31. Around the globe it is produced and used.920 12.231 9. years ending June 30* World Consumption Item Nitrogenous Fertilizers Phosphate Fertilizers Potash Fertilizers Total Fertilizers 1961/62 1962/63 1963/64 1964/65 1965/66 1966/67 11.688 41.981 37.329 27 . In thousand metric tons of nutrient.
302 135.312 33.173 67.480 122.263 49.357 82.661 20.917 80.317 82.399 95.970 35.810 63.778 22.354 72.237 129.525 15.549 30.147 115.117 70.472 116.946 31.801 21.695 85.853 25.849 22.177 34.579 137.756 33.536 36.277 59.244 23.009 25.962 29.730 Major Fertilizer Producing Countries Million metric tons.339 120.046 31.050 13.370 22.566 30.190 28.720 115.577 22.140 19.117 22.945 91.542 20.196 31.288 32.131 20.252 57.435 100.870 23.368 137.684 23.420 45.543 79.417 139.005 26.410 25.704 131.490 133.037 19.430 78.732 20.175 75.435 17.104 33.612 37.749 22.754 112.811 79.096 21.700 30.112 125.471 31.041 22.401 19.606 125.054 24.949 81.308 73.167 140.374 28.323 28.657 72.590 81.051 20.210 16.663 31.1967/68 1968/69 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 24.115 77.829 134.310 78.986 25.475 81.472 33.198 137.673 26.685 24.159 143.086 33.388 72.442 33.241 31.607 108.938 24.463 34.223 60.681 134.425 44.291 37.970 18.476 145.452 61.167 27.120 54.293 33.492 19.769 36.046 129.482 69.711 56.928 14.814 84.885 22.959 25.534 21.248 28.776 60.456 24.204 38.481 75.144 39.836 70.340 18.435 24.633 73.609 27.188 138.568 35. years ending June 30* Country 1997/98 1998/99 1999/00 2000/01 2001/02 Nitrogen 28 .210 26.
we continue to improve our environmental performance.4 Canada Russian | Federation Belarus Germany Israel 9.7 3.9 2.2 5.0 3.4 3.5 3.4 7.4 Phosphate 8.0 1.9 9.4 3.3 1.7 Potash 8.5 1.4 2. Fertilizer and the Environment The fertilizer industry is committed to producing and helping farmers use fertilizer in ways that meets the environmental challenges of modern society.6 1.7 10.7 21.9 11.5 10.0 3.0 1. At both production sites and across the world in daily working with farmers.3 3.7 3.4 9.6 5. 29 .6 7.China India United States Russian Federation Canada 20.5 United States China India Russian Federation Brazil 9.8 10.2 3. Here's a rundown on the position on some of the hottest current issues.4 3.2 1.0 6.9 5.7 2.7 3.2 3.3 6.1 21.4 3.4 3.7 8.4 1.4 3.2 4.5 9.0 6.1 3.7 22.4 1.0 4.5 13.2 4.4 3.7 9.4 1.1 10.5 10.9 22.8 Source: Food and Agriculture Association (FAO) FERTILIZERS ISSUES The core purpose of The Fertilizer Institute is to bring the viewpoints and interests of members to bear on public policy issues.7 3.9 1.5 7.8 4.1 3.5 4.5 1.2 10.5 3.5 6.1 13.3 3.7 1.6 3.
and when blended into other fertilizers. Metals in Fertilizers Some fertilizer products contain very small amounts of metals that are not beneficial to plant growth. tariffs. fertilizer is an important part of the export economy. Recent evidence also indicates that perchlorate is naturally occurring in the atmosphere and in certain arid environments. and often undetectable. The primary manufacturer of these Chilean nitrates has modified its manufacturing process to reduce perchlorate contents below 100 ppm. thieves are stealing fertilizer products to manufacture the illegal drug methamphetamine. These metals occur in products because they occur in nature as part of the ore bodies or in the raw materials used to make fertilizers. Perchlorate is also used as a solid propellant for fireworks.International Trade As an internationally-traded commodity. Fertilizer manufacturers serve customers around the globe. road flares and air bags. mainly as a propellant for rocket fuel. Chilean nitrate fertilizers represent about 1/10th of 1 percent of the commercial fertilizer market. A joint TFI/EPA round robin study 30 . the perchlorate content is usually less than 10 ppm. Methamphetamine In some areas. This practice needs to stopped urgently. Perchlorate Perchlorate is a compound found in natural deposits and is also manufactured for various industrial purposes. including in trace amounts in Chilean nitrate deposits. the members believe free trade benefits both manufacturers and consumers of fertilizer products. and non-tariff barriers to trade. The members of The Fertilizer Institute support the removal or reduction of trade-distorting subsidies. Three separate scientific studies on the safety of these metals in fertilizers have all come to the same conclusion -that they generally do not pose a threat to human health or the environment.
another area of concern for the fertilizer industry. Fertilizer transportation is regulated at both the Federal and state level. The importance of fertilizer in agrarian economy is above abord. Transportation Fertilizer is transported from manufacturing plants and terminals by rail. truck.published in 2002 indicated that commercial fertilizers in general do not contain perchlorate. The Fertilizer Institute has worked to monitor transportation issues -. Population Land Population with agricultural profession over 150 millons 796096 km square 70 % 31 .whether hazmat or rail mergers -.on behalf of its members PAKISTAN Pakistan is a agricultural economy. barge and pipeline. The respective Boards hold jurisdiction over the railroads and over rail mergers. In the past.
565 355.372 38.004 46.907 52.341.675 1.064.762 179.816 1.559 816.412 312.674 133.007.767 249.063 987.045 281.381 212.317 249.484 285.116 52.901 57.422 1.698 1.684 0 58.334 250.209 1.665 466.021 60.250 0 52.006 237.700 650.238 0 59.875 1.669 124.589 298.369 385.157 915.672 209.829 311.184 729.963 146.942 2.981 0 NFC PakNFC PakNFC PakAmercian 0 0 0 0 0 0 0 0 0 2.475 288.226 FFC Total 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 China* Arab Kharif Season 57.207 461.Domestic Production of Fertilizer by Products Urea (tonnes) PERIOD Dawood Hercules 153.203 218.856 157.740 59.347 310.776 225.660.896 48.600 700.143 1.054 54.416 391.546 45.340 197.413 1.641 214.219 57.099 1.218 252.997.360 1.586.000 115.805 1.260 292.007.719 62.667 32 .456 271.665.017 176.688.290.834 1.866 721.522 NFC Engro PakSaudi 130.956 9.224.622 24.955 329.451 3.120 320.928 56.973 367.610 217.899 60.258 375.432 56.982 244.008.534 142.062 273.108.499 2.204 290.865 52.544.559 54.908 58.778 151.162 312.030 2.408 312.752 63.223 286.900 689.352 304.243 207.100 698.373.600 137.262.378 128.314 1.710 59.510 322.580 58.559 2.022.
228 60.301.400 610.120 Fiscal Year 112.184 134.900 1.103.298 256.501 471 41.094 165.287 272.555 0 0 0 0 0 0 0 0 0 69.100 1.777 416.341.624.657 53.669 333.320 407.306.306.967 857.590 182.971 241.448 903.032 926.455 299.012.134 264.730.486 53.568 114.396 602.223 251.054 925.744 57.417.487 0 0 0 0 0 0 0 625.221 405.408 190.457 424.276 118.188 110.590.072 0 0 0 0 61.313 3.965 62.873 2.188.994 1.906 369.140 978.095 525.588 413.140 489.925 47.643 280.695 186.774 1.902.322 41.241 Domestic Production of Fertilizer by Products Urea 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 402.523 123.628 173.000.364 31.930 39.254 701.057 138.026 323.090 214.780 168.970 109.375 2.572 350.913 582.001 1.714 39.677 398.199 167.263 152.050.852 41.157 329.942 562.115 306.822 91.696 0 0 Rabi Season 60.767 617.168 270.011 193.064 380.686 274.144.971 1.074.392 544.683 47.488 40.952 1.929.739 72.299 218.800 702.474 44.732 1.036.747 74.222 538.453 332.900 765.128 413.478.313 60.110 3.089.603 60.1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 190.933 126.461 1.020 87.046 33 .571 318.184 50.071 102.746 1.775 127.540 1.296 2.278 1.078 416.793 766.769 85.649 100.108.836 1.633 136.880 106.528 1.701 48.345 1.685 34.620 111.846 271.869 630.499 57.989 41.459 136.446 188.776 64.619 360.734 313.642.595 565.100 622.258.602 308.865 2.474 307.597 430.026 512.618.200 2.931.737 2.464 123.468 53.854 3.920 295.438 731.918 141.356.600 309.150 380.500 1.085 291.121 629.064 115.654 1.802 161.
383 624.464 517.546 2.750 109.434.278 384.671 1.796 1.135 3.168 3.676 605.704 424.344 73.1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 377.610 1.663 692.720 102.829 4. Dawood Hercules (DH) 34 .188 818.151 3.734.914 411.736.677 871.259.364 772.518 2.101 435.690 310.104 96.000 122.453.374 780.590 0 0 124. MAIN FERTILIZER PRODUCER IN PAKISTAN 1.732 602.107 397.457 3.498.877.838 300.625 98.809 101.407462 4.257 4.284.799 663.195 1. 3.717 1.836 556.960 887.721 412.612 200.600 289.703348 2. Fauji Fertilizer Company (FFC) Fauji Fertilizer Bin Qasim (Pvt) Ltd. (FFBQ) National Fertilizer Corporation of Pakistan (Pvt) Ltd.962 376.550.968.834 *: M/S Schon Group purchased the plant operated for sometime and now is closed.258.073.510 855.327 0 0 65.667 92.050 618.422. 4.124 233.545 26. 2.028 3.986 97.983.070 0 0 0 0 112.
Haripur. No. Pak American Fertilizer (Pvt). 1 2 3 4 5 Plant and Location Lyallpur Chemicals and Fertilizer Limited. (NFC)12 NFC 12 NFC12 NFC NFC NFC NFC Product SSP SSP10 SSP3 Urea1 Urea4 CAN9 NP Urea Start Year 1957 1967 1989 1998 1962 1980 Capacity 0 90 90 346 92 450 305 557 Pak. Saudi Fertilizers Pvt. Ltd. Ltd. Daudkhel Pak Arab Fertilizer (Pvt).FERTILIZER PRODUCTION IN PAKISTAN Fertilizer Production Capacity in Pakistan 2002-03 000 Tones S. Faisalabad Jaranwala Hazara Phosphate Pvt. Multan Company Name National Fertilizer Corporation of Pakistan (Pvt) Ltd. Mirpur Mathelo FFC 35 . Ltd. Ltd.
Domestic Production Of Fertilizer in Pakistan Product Wise. Machi Ghot Fauji Fertilizer Company (FFC) 10 Fauji Fertilizer Bin Qasim (Pvt) Ltd.260 67 329 0 306 000 Tons 2002-03 425 888 613 0 102 290 2.284 0 315 0..983 325 374 0 285 2001-02 398 872 517 0 99 301 2.703 4.499 3.877 3. Domestic Production Of Fertilizer 1997-98 Urea Dawood Hercules Engro NFC Pak-Saudi NFC Pak-China NFC Pak-Arab NFC Pak-Amercian FFC Sub Total DAP Sona FFC CAN NFC PAK-ARAB AS NFC PAK-American NP NFC PAK-ARAB 385 663 618 27 92 0 1. Urea Total Total All Products Fauji Fertilizer Bin Qasim (Pvt) Ltd.5 293 1998-99 1999-2000 2000-01 412 772 625 97 97 125 1423 3. Dharki Schon Pak-China Dawood Hercules (DH) Urea13 Urea5 Plant1 Urea8 1982 1971 1968 102 445 850 8 (Dahirki) Engro Chemical Pakistan Limited (ECPL) Plant2 Urea 11 NPK Plant 1 Urea6 1993 2001 1982 1330 Plant 2 Urea7 Urea2 DAP2 1993 1998 1998 550 446 4.272 5. Sheikpura Engro Chemical Pakistan Ltd.407 0 335 0 305 36 . Karachi.6 7 Pak-China.753 100 9 Fauji Fertilizers Co. (FFBQ) Product Wise.073 4. Haripur (Presently not in operation) Dawood Hercules.968 298 386 0 261 376 781 605 0 110 234 1.551 46 339 0 284 436 818 603 73 102 200 1736 3. Ltd.
060 78 81 160 2 5.40% Fertilizer Policy 2001 Fertilizer Policy has been announced with effect from 1st July.894 4 17 21 1 4. England.Wala NFC Hazara Fert.SSP NFC LC&FL J. 37 .187 75 72 147 75 5. Private 6 Total 10 Employment 7. Public 4 b. Sub Total N:P:K TOTAL 0 0 0 1 3. Local Installed Capacities (000 Tons) Public Sector Private Sector Total Total Investment Contribution to GDP 1.384 5.373 4. In next 10 years Pakistan will need additional 2 million tons of fertilizers for local consumption.269 Spot analysis SPOT ANALYSIS OF FERTILIZER SECTOR Number of Units a.128 78 84 162 63 5. Japan. USA. Denmark.753 Rs. 2001.242 73 73 146 1 5. 87 Billion 0.563 Technology High Technology Source of Machinery Italy.
The feedstock gas prices are frozen for 10 yrs in case of new plants but only for 7 yrs in case of expansion / BMRE. For Existing Plants. the government has decided to dedicate the shallow reservoir of Mari Gas field to the Fertilizer Industry. 12.5%.5%. first served basis. Recognizing the expected growth in fertilizer demand. 5%. annually gas prices would increase effective July 2001 to July 2006 @ Nil.10 MMBTU or prevailing Middle East price which ever is higher. 15% respectively. For new Investments the price of feed gas will be the Middle Eastern Price prevailing on the date of signing of the GSA or $ 0. 10%. Fuel Gas price will be same as for other industrial consumers in the country. Thereafter the price is to be $ 1.Salient Features Policy has four parts: Existing Fertilizer Plants New Fertilizer Plants Existing Plants Planning for expansion and BMR NPK Compounds.77/MMBTU which ever is higher and a discount (less the discount of 10%) Gas will be allocated to new fertilizer plants on the principle of first come. 7. 38 .
e. Mono-Ammonia Phosphate. machinery & equipments (not Manufactured Locally) for fertilizer Projects.e. Triple Super Phosphate etc. 10%. Second hand machinery/plant is importable at same duty as new plants i. Di-Ammonia Phosphate.Custom duty of 5 % under SRO: 457(I)/2004 is leviable on import of plant. To ensure this objective Ministerial Committee would meet when required. Duty free import of raw materials for NPK production i. to reduce the cost of fertilizer inputs. Reduction in withholding tax on import of certain types of fertilizer from 6% to 1%. BMR resulting in enhanced production capacity would be available for 5 years. 39 . Tax relief: First year allowance or Initial Depreciation Allowance @ 50% of Machinery & equipment cost or as provided under income tax laws shall be allowed. Selling price shall remain deregulated and benefit would be passed to customers. Withholding taxes at the time of import of fertilizer shall be adjusted against assessed income tax of the year in case fertilizer is imported by a manufacturer of Fertilizer. Concessions as per declining in concession policy for additional feed gas in the case of expansion.
100/.845 4.170 5.170 4.223 Supply – Demand Projection Urea Deficit / Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Supply Demand 4.048 -1.130 National Fertilizer Development Centre (NFDC) 40 .300 1.966 4.433 1.612 4.170 4.727 4.170 4.178 Supply 292 450 450 450 450 450 450 450 450 DAP Deficit / Demand 1.179 1.238 1.499 4.A relief of Rs.123 1.505 1.580 Surplus -777 -673 -729 -788 -850 -915 -983 -1.013 000 Tons 2002-03 0 17 1.per bag in the price of Phosphatic Fertilizer.141 2000-01 86 15 773 47 0 0 0 15 22 958 2001-02 0 32 919 26 0 0 20 5 11 1.090 4.055 -1.390 4.218 4.069 1.170 5.170 4.365 1. Import of Fertilizers Product Urea AS DAP NP TSP SSP SOP 10:15:20 MOP Total 1999-00 114 21 819 122 15 22 11 5 12 1.124 30 9 0 16 0 0 1.170 4.170 5.170 4.348 Surplus -220 -329 -442 -557 -675 -796 -920 -1.
000. NFDC is a multidisciplinary research and development organization at the federal level that integrates disciplines such as economic planning. agronomy and soil science. trade and use. marketing and credit. extension and use made it desirable for the Government to have neutral institution with the objectives to provide a common platform. Per hectare average fertilizer use for cropped area increased from about 5 kg in 1964-65 to about 55 kg in 1981-82 and 147 kg in 2003-04. OBJECTIVES OF NFDC 41 . 2.000 nutrient tonnes mark in 2004-05. trade. 1997. with a view to helping in the formulation of Government policies and their implementation and to give support to other institutions.000 nutrient tonnes mark in 1992-93 and touching 3. extension and training. After a brief period of aid from the United Nations Development Programme (UNDP) it has been assisted by the Food and Agriculture Organization (FAO) of the United Nations with Trust Funds from Norway (NORAD) upto May 1981. privatization and deregulation.000. research. the 100.000 nutrient tonnes mark in 1966-67. Bottlenecks in fertilizer imports and production. The existence in Pakistan of a number of agencies and organizations.000 nutrient tonnes mark in 1979-80. and from the Netherlands upto December.The National Fertilizer Development Centre (NFDC) was set up by the Government of Pakistan (Planning and Development Division) in December 1977.222. research. production and imports.000 nutrient tonnes mark in 1956. agronomic efficiency and impact on crop productivity are increasing both in frequency and intensity due to increasing fertilizer use consumption in Pakistan crossed the 10. 1. In co-operation with the various federal and provincial institutions. working on different aspects of fertilizer production. pricing and subsidies. NFDC studies all fertilizer-related problems from the supply source to the farmers' fields.
To promote efficient. on all matters related in any way to the fertilizer sector of Pakistan and its relations with the international fertilizer community.The current broad objectives of NFDC are: To provide objective and comprehensive advice to all levels of Government. extension and marketing personnel in the transfer of fertilizer technology. so that timely actions can be taken to effect improvement. 42 . To monitor the status of all aspects of fertilizer use development: production. To launch new initiatives in soil fertility and plant nutrition management. prices and evaluate situation critically for the information and action by the concerned organizations. to the fertilizer industry and to other parties as may be relevant. deregulation/privatization of fertilizer in order to facilitate policy decisions. imports. consumption. crop responses to fertilizers and problems faced by farmers. impact of input prices on crop output. To help upgrade the capability of fertilizer research. To conduct fertilizer use surveys at farm level to monitor fertilizer use by crops. To conduct research studies on physical and economic returns on fertilizer use to farmers. balanced and environmental friendly integrated use of plant nutrients for sustainable agricultural growth. To provide a neutral common platform to resolve contentious issues in fertilizer sector. impact on crop productivity.
investigations with new products and application techniques) Fertilizer advisory services promotion of blends/compounds Assist soil testing laboratories Establishment of a regional centre on pant nutrition management and development. special programmes and areas of special interest and collaboration. training courses contributions to and participation in national and international fora and computerized library documentation and retrival of literature. fertilizer use surves. These include data base. seasonal and annual). (monthly. fertigation. 43 .PROGRAMMES AND ACTIVITIES NFDC's programmes are classified as core activities. fertilizer bibliographic updates. special technical notes. fertilizer situation reviews. balanced fertilization and fertilizer use efficiency Fertilization in horticulture (e. crop responses.g. intenrational prices. fertilizer esearch reviews. Core activities Constitute those regarded as the central functions of NFDC. integrated crop nutrition. e.g. demand forecasting. Special programmes and areas of special interest and collaboration include: Studies on privatization in the fertilizer sector Fertilizer use development programme.
Netherlands : NFDC and LEI. soil testing and soil fertility laboratories and extension and training organizations. Some joint activities are being planned. At the provincial level NFDC maintains liaison with the Provincial Governments. Ministry of Finance and the credit institutions.ESCAP. The most important among these are: Ministry of Food and Agriculture. Agricultural Economics Institute (LEI). Department of Plant Protection. Hague. etc. Hague. importers and distributors. Pakistan Agricultural Research Council. pesticides associations. Land and Water Development Division and is termed as a `Centre of Excellence’.ORGANIZATIONAL LINKS OF NFDC National NFDC works in close collaboration with the Federal Ministries and their executive arms concerned with fertilizer use development. NFDC is also represented on various committees at national and provincial level. Ministry of Industries and Production and the National Fertilizer Corporation operating public sector fertilizer plants. NFDC is regarded as a pioneer institution of the FAO Plant Nutrition Management Service. Bangkok : NFDC is a technical liaison office for 44 . Ministry of Petroleum and Natural Resources. etc. NFDC works in close liason with private sector fertilizer producers and marrketing agencies. the Netherlands have signed a memorandum of understanding for technical co-operation between both the organizations. agricultural universities and research institutes. and testing laboratories. Fertilizer Advisory Development and Information Network for Asia and the Pacific (FADINAP) . International Food and Agriculture Organization (FAO) of United Nations : NFDC since its establishment is getting financial as well as technical support from FAO. its Fertilizer Cell.
Muscle Shoals. training programmes and information management/dissemination in the country. establishment of soil test crop response calibration studies. USA : NFDC has close technical collaboration with IFDC in human resources development and exchange of technical know-how. France : NFDC is a member of IFA and shares international statistics of fertilizer consumption. Egypt : NFDC has signed a MOU with EFDC for technical co-operation in the field of fertilizer use development activities.Paris. National Fertilizer Secretariat. Other International Institutions : NFDC shares information with number of national/regional institutions such as : Fertilizer Association of India. Cairo. International Fertilizer Industry Association (IFA) . Manila. International Fertilizer Development Centre (IFDC). FADINAP and jointly had carried a number of studies. Philippines. Morocco : World Phosphate Institute and NFDC work jointly in promotional activities particularly on balanced fertilization. production and trade in addition to studies on Plant Nutrition Management World Phosphate Institute (IMPHOS). 45 . Egyptian Fertilizer Development Centre (EFDC). Fertilizer and Pesticides Authority. International Potash Institute (IPI). Sri Lanka and Arab Fertilizer Association. Switzerland : IPI and NFDC has close technical collaboration and some joint studies on potash use development are carried out in the country.
Various types of fertilizers are used in the country but urea remains the commodity with in the largest demand sector. The urea market is dominantly shared by three manufacturers namely. All the three are listed at the Karachi Stock Exchange. Dawood Hercules Chemicals Limited. This. Indigenous production of urea has improved requiring lesser import of the commodity. DEMAND VS SUPPLY The demand for urea has been increasing consistently and significantly. the demand has flattened out gradually. The other manufacturer controlling any significant market share is Pak Saudi Fertilizer. It was encouraging to note that urea off-take during these six months increased by 18 per cent as compared to the corresponding period last year. This is due to two factors: the government of Pakistan (GoP) besides offering various incentives to the fertilizer manufacturers to keep the cost of production low also extending soft term loans to growers for the purchase of various inputs. on the one hand. 46 . FFC-Jordan Fertilizer Company Limited is a joint venture between Fauji Fertilizer Company and a Jordanian company. Fauji Fertilizer Company Limited. Fauji has the largest production capacity and contributed 46 per cent of the total sale in 1997 followed by Engro 20 per cent and Dawood 11 per cent. according to the manufactures.FERTILIZER INDUSTRY’S PERFORMANCE Three leading manufacturers of urea in the country have recently released their accounts for the first half of 2005. on the other hand. has helped the country in achieving self sufficiency in the production of urea and. Still the off-take was comparable with the consumption in the pervious two years. But. has reduced the foreign exchange expenditure on import of the product. Engro Chemical Pakistan Limited . The demand for phosphatic fertilizer took a quantum leap registering a 16 per cent increase. The manufacturers have been able to take the fullest advantage of the GoP policies and have expanded the production capacities over the years.
In their views.2 million tonnes. When the first urea manufacturing plant was established in the country in 1967 by Exxon Chemical. it is a temporary phase as there is an over supply situation in the global markets. The policy has encouraged establishment of new units and expansion of installed capacities by the manufacturers. The policy has benefited the country. The manufacturers do not agree with this. They say that they have been importing expensive urea in the past and selling at lower prices – virtually subsidising urea sale — a responsibility of the government. at present the international prices of urea are lower than its domestic price. Therefore. some of the analysts believe that the advantage of supply of gas at concessional rates to fertilizer manufacturers is not being passed on to the farmers. And therefore. with the enhanced availability of indigenously produced urea and an elaborate dealers network the manufacturers have been able to minimise such incidence.Consumption of urea is seasonal. In the past. However. This capacity will be further increased by one million tonnes by the end of this year when the current expansion by ECPL and FFC-Jordan starts commercial production. The total installed capacity in the country now exceeds 3. during the peak consumption period. GAS SUPPLY One of the factors responsible for phenomenal increase in the indigenous production of urea is the policy of the government regarding supply of gas (feedstock) at concessional rate. they should not be asked to lower the domestic price. In their views. its installed capacity was only 148. they suggest that efforts should be made by the manufacturers to lower urea price. However. if the price of urea has declined in the international market.000 tonnes per annum. some unscrupulous elements used to indulge in black marketing of the commodity. At this time the GoP must protect the local industry. 47 .
The urea sale is directly linked to the purchasing power of farmers and the availability of credit to them. urea has to be used to overcome the deficiency. particularly in Punjab. With the commencement of DAP type fertilizer by FFC-Jordan the import bill of the commodity will be reduced partly because the country will be importing a major portion of the raw material from Jordan. the fertilizer industry. They say that by the end of this year the installed capacity in the country will be 48 . the income of cotton growers was adversely affected due to curl leaf virus (CLV) attacks on cotton crop. concerted efforts should be made to make this a regular export commodity. While many other industries enjoying similar incentives have not taken the fullest advantage of the GoP policies. Some of the industry experts say that the country has exported urea in the past and. it is most probably. During the last few years. The industry has achieved the stage of potential earner of foreign exchange for the country. they could not get the similar income mainly because the climatic conditions of the area were not suitable for the cultivation of sugarcane. The cash flow to farmers is directly related to the prices of agriculture produce and the yields achieved during the preceding year. urea production capacity in the country has been increased which has gradually lowered the import bill of urea. The export of surplus production can be done by the urea manufacturers to pay for the import of DAP type fertilizer and completely free the GoP from its import. When there is a bumper crop and support prices are higher. The result was that per acre yield was low and recovery of sugar was also below than the average recovery achieved in Sindh – the main sugarcane growing belt in the country. many of the farmers. the growers get more cash inflow. The country is almost self sufficient in indigenous production of urea. in order to avoid further losses. But. The manufacturers also say that over the years. which has exploited the best advantage of the policy. therefore. Following the losses incurred to the cotton growers on various grounds. switched over to sugarcane cultivation.NEED FOR NITROGENOUS FERTILIZER Since the lands in the country are deficient in nitrogenous material.
LOGISTICS During the peak demand period the three urea manufacturers. They also said that while all the other urea manufacturing unit had increased their installed capacity. To substantiate their point of view they quoted the example of Dawood Hercules.000 tonnes. the other group believes that the industry is still to achieved the status of potential export earner. The quantities imported over the year have varied sharply. Engro. face serious logistic problems. Therefore. However. and import of another 450. The plant has been running above designed capacity in the past. Market Fauji Engro Dawood Others Share 60% 20% 10% 10% 49 . The manufacturers have been demanding. While the total import of urea in 1994 was only 78. heavy traffic and frequent traffic jams on National Highway as all these units are located within a radius of 100 kilometers. during the last few years. During 1997 the capacity utilisation was around 82 per cent.increased by one million tonnes. According to these analysts. Fauji and Pak Saudi. for a long time. of the government to expand the roads but the problem still persists. the country is expected to achieve surplus in 2007 — may be a temporary phase but the country must make the best efforts to exploit this potential. Dawood Hercules had not been able to expand its capacity in spite of increasing demand for urea in the country. the capacity utilisation of urea manufacturing units remained low on account of load-shedding of gas.000 tonnes is expected before the end of the year. This include availability of trucks and railway wagons.
000 tonnes per annum besides improving plant energy efficiency and strengthening the environment conservation measures. the annual production capacity will be enhanced to 850. the project economics remain unchanged due to enhancement in gas utilisation efficiency. The Company has already expanded the urea production capacity to 750. Engro Asahi Polymer & Chemical Limited (EAPCL) is a joint venture of ECPL with Asahi Glass and Mitsubishi Corporation of Japan for the production of PVC resin. After undertaking major expansions. After the completion of current expansion programme.Engro Chemical Pakistan Limited. However.000 tonnes of resin annually.000 tonnes per annum. due to the fault in the system. fertilizer plants in some other areas were able to achieve at least 10 to 12 per cent production above the designed capacityindicating capacity utilisation at 85 per cent as against a capacity utilisation of 76 per cent during the corresponding period in 2004. The jetty and chemical storage facility at Port Qasim was built at a cost of US$ 65 million. ECPL is diversifying its operations. The project cost is estimated around Rs. Any increase in demand for gas or reduced gas availability. The project is also being built at Port Qasim. The project cost due to the change in scope and delayed commissioning has increased from US$ 59 million to US$ 72 million. was established in 1967 with an installed capacity to produce 147. The delay in manufacture and shipment of some critical equipment by an overseas supplier has delayed completion of project from March 2004 to last quarter of the year. It will have a capacity to produce 100. according to the Company sources. 4 billion.000 tonnes of urea annually. The Company operates on a gas network which is primarily domestic consumer oriented. It is believed that the average capacity utilisation for the year will improve to 90 per cent 50 . Dawood Hercules Chemicals Limited has not been able to enhance its production capacity lately. formally known as Exxon Chemical Pakistan. immediately results in diversion of supply to domestic consumers particularly in winter months. Engro Paktank Terminal Limited. the 50:50 joint venture of the Company with Royal Pakhoed of The Netherlands was formally inaugurated in May this year.
Efforts should be made to enable the industry to earn foreign exchange after freeing the country from its import liability. OUTLOOK By the end of year 2005. the industry has become a potential foreign exchange earner.provided there is no load-shedding of gas. 51 . To ensure availability of urea at competitive prices the government must avoid any escalation in the gas (feedstock) prices in the near future as the government intends to enhance production of food and cash crops in the country. approximately one million tonnes of additional urea manufacturing capacity is expected to come on stream in the country. the ability to recover escalation in cost through higher prices will be limited. However. The policies of the government assign the highest priority to allocation of gas for the fertilizer industry to boost agriculture production in the country. With the present downward trend in the international price of urea. It is necessary that the government abides by the policy and meets industry demand for allocation of additional gas at reasonable price. to achieve capacity utilisation above designed capacity the Company needs supply of gas at optimum level. This would not only improve the availability of the product but would also result into greater competition. To remain successful in the tough competition it will be necessary for the manufacturers to focus on cost control and improved productivity. Besides. This will not be possible without improving the pipeline network.
BOARD OF DIRECTORS Chairman Lt. Istaqbal Mehdi Brig. Ghazanfar Ali (Retired) Syed Zaheer Ali Shah Mr. Mahmud Ahmed. Munawar Ahmed Rana (Retired) NOMINATED BY Fauji Foundation Fauji Foundation Fauji Foundation National Investment Trust (NIT) Fauji Foundation Fauji Foundation Government of Pakistan (GOP) National Bank of Pakistan (NBP) National Investment Trust (NIT) Pak Kuwait Investment Company Fauji Foundation Responsibilities. Khawar Saeed Dr. Tariq Iqbal Khan Brig. Nadeem Inayat Mr. Gen. Powers and Functions of Board of Directors 52 . HI(M) (Retired) DIRECTORS Dr. HI(M) (Retired) Chief Executive Officer and Managing Director Lt. Qaiser Javed Brig. HI. SI(M) (Retired) Mr. Gen. Syed Muhammad Amjad. Haldor Topsoe Mr. Aftab Ahmad (Retired) Brig. Arshad Shah.
Each year. donations. borrowing.The role and responsibilities of the chairman and the chief executive officer are distinct. The board has also adopted vision and mission statements and an over all corporate strategy for the company and formulated policies including risk management. as a model corporate citizen . loans and advances. acquisition and disposal of of fixed assets and write-off inventories. delegations of financial powers. clearly defined and documented and are carried out separately by the two officers. The board exercise its powers to carry out its duties with a sense of object judgment and independence in the best interests and the company has circulated a” statement of ethics and business practices” to establish a standard of conduct.terms of credit and discount. Management 53 .safety and environment . healthy . transitions with related parties. loans and advances. policies and strategies along with maintenance of their record have been delegated to the management under the supervision of the Chief Executive and Managing Director of the company and is executed and controlled through management committees. for the board and employees of the company. these courses are also attended by the management of the company. the director attend the orientation coerces of their duties and responsibility to manage the affairs of the company on behalf of the shareholders. charities. investments and disinvestments of funds with maturity period exceeding six months. bad debts. Implementations of the decisions. decisions on material transitions or significant matters are documented through resolution passed at their meetings and circulated for approval. procurement of the goods and services marketing . human resource management including succession planning . The board monitors the operations of the management through three standard committees.
Muhammad Saleem Suleman SI(M) (Retired) Meetings of the Board. Abid Maqbool General Manager Marketing Dr. 54 .Chief Executive Officer and Managing Director Lt. Gen. Mahmud Ahmed HI(M) (Retired) GENERAL MANAGERS General Manager Technology & Operations Mr. Abdul Waheed General Manager Industrial Relations General Manager Plant (Goth Machhi) Mr. Tahir Javed General Manager Plant (Mirpur Mathelo) Syed Iqtidar Saeed COMPANY SECRETARY Brig. Muhammad Sadiq General Manager Admin General Manager HR General Manager Technical Operations Mr. Abdul Waheed Sheikh General Manager Finance (Operations) Mr.
The chief Financial Officer and the Comp[any Secretary are the employees of the company and are not entitled to cast votes at the meetings.The chairman presides over meetings of the board and encourages the participation and contribution of executive and non executive directors. In these meetings the issues generally discussed are: Approval of quarterly financial statements Approval of half yearly financial statements Approval of annual financial statements Annual business plans Annual budgets Quarterly forecasts and annual forecasts Cash flow projections Performance monitoring Internal audits reports External audit recommendations Agreements and contracts Amendment of laws Agreement with staff unions’ Collective Bargaining Agents (CBA) Status of payments of debts and obligations and repayments of loans The board. gives the recommendations to strengthen and formalize the corporate decision making process. after each meeting. The directors meet at least once in each quarter. Minutes of each meeting are recorded and circulated by the company within 30 days. Written notices of the meetings along with agenda and its details were circulated seven days in advance. In 2004 a total of seven meetings were held which were also attended by chief Financial Officer and the Comp[any Secretary. 55 . Additional meetings are called upon when required.
Tries to devise strategies to over come problems if any.Meeting of the Marketing Division. 56 . Annual meeting of all the managers of Marketing Division is also held. Sales of all regions are rewieved. Expenses for the month are approved. In monthly meetings the targets and plans for next month are also set. In these meetings monthly sales of FFC against the same period of last year and monthly sales of competitors’ are also analyzed. Sales performance of all sales officers are compared with targets Best sales officer of the month is selected and rewarded. All the heads of departments meet every Tuesday to To present the weekly reports to GMM To discuss the sales situation To look at the competitors’ activities To monitor the performance against monthly and annual plans To monitor fertilizer supply and demand situation. In every month a monthly meeting is held in which reports for the month of all departments are presented to GMM. These meetings are presided over by GMM. All these meetings are held at Lahore marketing office.
Marketing Network 57 .
Finance 8.Departments in Marketing Division Marketing Division Lahore contains the following departments. Procurement 7. Human Resources 5. Distribution 2. Technical Services 10. These departments are listed according to the schedule of my internship schedule at the office. 1. General Manager Marketing 58 . Regional Office Lahore 14. IT Unit 9. Planning 11. Administration 4. Warehousing 3. Sales Promotion 12. Industrial Relations and Welfare 6. Sales North Zone 13.
Sultan Ahmad Mr.Introduction of All the Departments: Sales Promotion No of the executives Department Head Senior SPO SPO No of the Staff Total employees Objectives To create .augment and maintain the demand of FFBL and FFCL products To enhance and sustain brand image and corporate image Improve company visibility in the mind of consumers To safe guard company logo To strengthen brand loyalty 3 Mrs Nabila Mr. Iqbal Ahmad 3 6 59 .
of staff Employees Total Regions 1.I. Off. D.Khan 4 5 3 5 Dr. Faisalabad 3. Muhammad Sadiq Zia Mahmood Minhas Functions of North zone Conduction sale forecast for regions include in North zone Monitoring sales allocation as per decided ratios Monitoring daily sales Studying competitors price structure Co-coordinating regions included in North zone Managing sales force of North zone Checking and inventory Coordination wit top management 60 . Sahiwal 4. Peshwar 5.) Regional officers No. Lahore 2.Sales North Zone General Manager Marketing Senior Sales Manager North zone contains these regions Total No of Management Employees (lhr.
Sheikhupura 3. Masood Mr. Gujranwala 2. Sialkot 6. Zahid Nawaz 3 The regional office Lahore is a front line department. M.For three days Tuesday –Thursday the officers are on field visits and for rest 2 working days they perform their office work. Muhammad Sadiq Zia Mahmood Minhas Mr. of staff Employees Dr. Ensuring availability controlling warehouses Monitoring of product Monitoring and keeping record of turnover of productivity REGIONAL OFFICE LAHORE General Manager Marketing Senior Sales Manager Regional Manager Sales officer Lahore Technical sales Officer No.Din 4. The districts included in Lahore region : Lahore Region 1. Rawalpindi 5. regional TSO and the sales officer Lahore district are working with assistance of stock members . It is actually involved with direct sales of fertilizer and interacting with dealers. The regional manager. Hafizabad 61 . Arshad Mahmood Mr.B.
Salman Ali 3 Distribution department is of the major department helping the sales force. their sales and closing stocks Appointing and terminating dealers as regard to their performance. The primary function of distribution department is to ensure effective and efficient distribution of product from plants up to the final customers.4 MT approx) Satisfying 3580 dealers . Objectives of Distribution Department Ship out entire production of FFC and FFBL plants and imported fertilizer in accost effective manner(3.Activities Monitoring product wise /district wise achievement with respect to targets Monitoring current market situation with respect to fertilizer industry Monitoring competitors activities in detail Managing warehouses. literate goal is to have a strong dealer network Distribution Department General Manager Marketing Senior Distribution and Warehousing Manager Senior Executive Distribution Executive Distribution Distribution Officer No. Muhammad Sadiq Mr. 62 . Riaz Ahmad Mr. of staff Employees Dr. Afzal Mughal Mr.Shakeel Ahmad Mr. 1632 direct customers and 169 warehouses.
Coordinate with plant management to ensure smooth operations. Follow up of product quality complaints. Maintain liaison with Pakistan railway . timely delivery and documentation. Monitor packing availability and arrange safe storage of surplus production during lean months.correct weight. Truck generation for 1556 sales points. Plan and undertake self imports/exports and ensure prompt handling . port authorities and suppliers. NLC. quality packing . Transportation Arrangements Private trucking contractions NLC Pakistan railways Dispatches 2004 Fig in KT Ex Goth Macchi Ex Mirpur Mathelo Ex Bin Qasim Ex Port Total Road 1348 652 871 244 3315 Rail 111 73 85 12 282 Total 1459 725 956 256 3397 Ratio 92:08 90:1 91:09 95:05 92:08 63 .
Ahsan khan 3 The ware housing department is involved in completing the formality For hiring And dehiring of warehouses (on need basis) . This department works in collaboration with distribution department. of staff Employees Dr.Retd. Shakeel Ahmad Brig. The record of inventories is maintained and physical inspection of the warehouse and product are carried out to ensure safety and security. appointment of handling contractors. watch and ward contractors. Muhammad Sadiq Mr.Customer served Dealers Direct customers 3580 1632 Total 5212 Warehousing Department General Manager Marketing Senior Marketing Service Manager Senior Distribution and Warehousing Manager Warehousing Manager Senior Executive Warehousing Warehousing Manager No. 64 . Riaz Ahmad Mr. Asad Sultan Mr. Ghulam Rasool Sahi Mr.
Preparing the operational . Zone wise Warehouses and capacity Zone North Central South Total Regions 5 5 4 14 Warehouses 63 53 49 165 Capacity MT 136700 119400 78400 334500 65 .Functions of warehousing department Coordinating of warehouse department with regions regarding warehouse selection. Preparing weekly capacity reports. Formulating warehouse plans. Warehousing department is considered with processing of o Lease agreements o Watch and ward agreements o Handling agreements o Watch and ward bills • • • • Conduct the training of warehouse supervisors. planning capacity of warehouses To conduct inspections of the warehouses on planned and surprise basis Each warehouse is inspected around 17 time a year. capital and revenue budgets on yearly basis. training of supervisors.
Type of Warehouses Strategic Warehouses Permanent warehouses Temporary warehouses Purely temporary warehouses s 66 .
Muhammad Khalid Maj. For company gussets and officers Ensure the implementation of company policies and rules Provision of uniform to entitle staff (Qasids. and ticketing etc. Retd. and Photocopy facility. • • • Company maintained Company assisted cars/Jeep Pool transport 67 . Retd. Khaani 3 Administration department is involved with conducting the administration function of the fauji fertilizers of the marketing division Functions Provision and maintenance of transport i.Administration Department General Manager Marketing Administration Manager Administration Esxecutive No. electricity. telephone. i. of staff Employees Dr. E-mail. Jeeps and Poor vehicles Ensure availability of utilities like gas. Chowkidars. Muhammad Sadiq Col. transport. electricians and drivers) Ensure proper maintenance of the office premises and guesthouses Take disciplinary action under the rules where necessary Disposal of unusable assets of company Managing three major types of transport system related to marketing division. Under take protocol duties. reception. Cars.e.e.
Holding of marketing division transport is as under Company assigned cars Company assisted cars Company maintained cars 23 91 63 Total=177
Human Resource Department
General Manager Marketing Administration Manager Senior Executive HR HR Officer-I No. of staff Employees Dr. Muhammad Sadiq Col. Retd. Muhammad Khalid Col. Retd. Asad Sukhaira Mr. Qamar 3
The FFC Management, acknowledging the importance of human resources has always placed personnel management at the top of its priority list. The Human Resources Department, therefore, right from the inception of the Company has played a vital role in steering the Company through all its phases, operations and progress. The functions of Human Resources Department vis-a-vis personnel management and human resources development are going side by side and it is due to the progressive approach and dynamic philosophy of the management that Personnel Management remains abreast with the latest style of management ensuring high level of motivation and satisfaction of the work force under varied situations. Personnel policies are kept updated and are periodically modified to respond to the latest socio-economic changes and market trends of the country.
Hiring quality manpower, keeping them happy, satisfied and motivated are the pillars of the Human Resources Department; justice, fair play and merit oriented treatment are some of the ingredients of processing cases by the Human Resources Department. For Human Resource development, another aspect which receives its due share is training. The employees are exposed to various kinds of cross training, technical courses, management courses, workshops and seminars both at home and abroad. At Plant site, the Company has a Technical Training Centre, which is unique, and the only centre in Asia having a true replica of the Plant for providing realistic training as far as possible, to the employees. Employees' welfare has all along received due consideration by the Management. A number of agreements have been signed with CBA Workers Union, resulting in handsome remuneration packages to employees. The company, since its inception, has undertaken five salary revisions for Management employees, to remain amongst the top paying organizations of the country. It is due to the sheer sincerity, welfare oriented policies and concern for every single employee that there has never been any strike, lock out or go slow in FFC. Human resources department of the marketing division is responsible for the employees related to marketing division. Maintaining their attendance and payroll of the staff while officers and executives get their pay directly from head office. Functions Work out warehouse supervisor visor’s requirements in consultation with regional manager and arrange recruitment and transfer activities according to head office instructions. 1. Maintain up to date personal records, statistics including leave records , relating to management and non- management employees. 2. Interpret company policy and provision of necessary ruling where required.
Handling cases relating to following subjects
Employment/appointment of non management employees. Temporary / contract / daily wages according to authorization. Promotion of non management employees Pay and allowances of non management employees. Leaves (annual, causal, special, sick) are managed for all employees. Transfer claims of all employees. House/rent allowances advances Also the House building loans
Industrial Relations and Welfare Department
General Manager Marketing Administration Manager Senior Executive IR & W No. of Staff Employees 2 Dr. Muhammad Sadiq Col. Retd. Muhammad Khalid
The IR department in organization is formed under the IRQ 69 [industrial relation ordination] of Punjab labor laws act and is under the approval of Management & joint Labor Department of Punjab Govt .IR basically deals with the Labor laws implication in an organization and has to negotiate legislatively with the CBA certified labor union at the office .The criterion for formation of IR department is a office having at least 50 employees and its provisions given in the Punjab as well as GOP labor laws. The IR department not only negotiates with the labor unions but also responsible handling with the labor
Retd. Khalid Col.One of the functions of IR department at FFC to tackle with all types of court problems.3 zonal officies.14 regions.Finance and distribution offices at Goth Macchi . Ghyoor Procurement department at marketing is responsible for the purchases. of Staff Employees 2 Dr. Muhammad Sadiq Col. There are labor courts at regional level . Purchases for the following offices are made by Lahore Marketing Division. Retd.At present there are 24 courts in Pakistan.s.Mirpur Mathelo distribution office at FFBL port and head office requirements GOALS “To procure quality goods at the most economical and competitive rat 71 .5 FAC. Any employee who may have a complaint about the management can go to the court so IR department representative follow the case Major Activities Leave records of workers Appointment records Record of upgrading Annual increment record Vertical performance appraisal records Staff no allocation Procurement Department General Manager Marketing Administration Manager Senior Executive procurement Manager Procurement No.
• • • • Quality, Economical and timely procurement of items /spares for marketing division and plants ensuring complete backup support /after sales services. Price enquiry of different items to estimate the price so that the budgeted amount may be endorsed on the PR before initiation Disposal of obsolete /surplus/scrap material Continuous updating of reliable vendors list for both plants and marketing division
PROCEDURES INVOLVED IN PROCUREMENT STEPS
• • • • • • • • • Raising of purchase request Approval of PR Request for quotation Bid opening Comparative statement Placement of order Delivery receipt of goods Verification of bills against orders Final payment
General Manager Marketing Administration Manager Senior Executive IT No. of Staff Employees Dr. Muhammad Sadiq Col. Retd. Khalid Mr Sherazi
Information Technology unit was properly setup in FFC Marketing division Lahore. IT unit is one of the most important departments working at marketing division Lahore. The Unit has to play a leading role in the marketing division in order to enable all the department to perform all their functions effectively and efficiently .It enables the management to make timely decisions.
OBJECTIVES OF IT UNITS
• • • • • To meet computing needs of all the departments of all the departments of the marketing divisions. To design and develop, efficient, effective and user friendly information systems To provide the maintenance services and proper updating of all these systems To properly cope with the security and ethical challenges related to information technology and information system To design proper feed back and control procedures toward achievement of its goals.
SYSTEMS DEVELOPED BY I.T UNITS
• • • • • • • • Sales accounting system General accounting system Order processing system Regional information system Sales promotion system Distribution management system Procurement system Human resource system
The finance department working at marketing division Lahore is responsible for all the sales collections either sales are made directly through plant or through warehouses. the finance department is divided into two sections. 1. General accounting 2. Sales Accounting
Specific responsibilities of General accounting
Payroll of permanent and temporary staff employees Deduction of income tax from payroll and deposition in govt. treasury. Forwarding detailed of provident fund contribution of permanent employees to head office. Reimbursement of regional imprested/distribution imprested. Forwarding of L/C opening request to head office for import of fertilizer. Processing of export related documents. Deduction of income tax from various supplies and deposit into government treasury. Maintenance of books of account including fixed assets ,supplies , employees etc Payment of telephone , electricity and medical bill Payment in respect of bags and line for imported fertilizers Clearing and forwarding charges in respect of import of fertilizer
Specific responsibilities of the Sales Accounting
Maintenance of dealership records Processing and banking of sales and proceeds received from field force for the sale of fertilizer
Board of directors. Transfer of data to plants for shipment Transfer of funds to head office recording of invoices for sales ex-warehouses Receiving data from plants for direct sales Processing of bank Guarantees for secured credit sales Monitoring of unsecured credit sales to fauji sugar mills/forms Preparation of pricing and discount structure for various fertilizers Receiving data from plants for warehouse shipment Recording of stock movement reports Overall reconciliation of stock movement with intimation of head office Follow up receivables for sale through rail Recording of stocks receives from FFBL for sale on their behalf Sending the information regarding dealers balance recovery of receivables on various accounts to field force for Annual Business plan of FFC Review and development of Historical data Key assumptions Inputs from regions Review meeting SMs/RMs/Deptt.Managers GMM Collation and submission to Head office. approval Budgetary control Circulations to cost controllers Quarterly budget variance reports Monthly revised cash flow statements 75 . review by management.
Review of import requirements of fertilizer FFC related statements/ reports Daily / fortnightly Remittance status Sales status Monthly Trial balance and related schedule Receivables report along with age analysis Revised cash flow statements Finance dept progress report Capital budget utilization statues Progress report of sales and w/h dispatches Stock report to insurance company and banks Bank reconciliation statements Tax deduction at source Dealer network status report Quarterly Budgeted vs actual expenses comparison Performance review of marketing operations Yearly 76 .
Company is providing technical services all over the country free of cost. The 14 technical officers are serving in 14 regions all over the country in coordination with sales officers. Senior technical executive who is reporting to SMSM heads the technical department. Muhammad Sadiq Mr. AurangzaiTechnical Mr. Trial balance and related schedule Proposed capital and revenue budget Inputs for tax returns Inputs for company’s annual reports Technical Department General Manager Marketing Technical Services Manager Technical Services Executive Services Officer Dr. Mission Statement of Technical Department ‘Help the farmer optimize utilization of his resources to rejuvenate farm productivity and increase his income’ Objectives Farmer education /training Dissemination of latest and complete package of technology Promotion of balanced fertilizer use Focus on increasing farmers income Counter fertilizer misconception Enhancing crop yield/overall crop production Supplement government effort for agricultural 77 . Naseem Ahmad Technical department is providing support function to sales. Riaz Ahmad Mr.
village meetings. All the centers are fully equipped with modern sophisticated computerized Soil & Water Testing Laboratories and high-tech extension equipment. D. Khan.G. Our organization in pursuit of its national commitment and moral obligation maintains regular contact with farmers and Agricultural Institutions to ensure constant and efficient transfer of latest technology. The company is providing quality farm advisory services all over the country through its 5 Farm Advisory Centers and 14 Regional Technical Services Officers. Farm Advisory Centers are located at D. Soil Testing is a valuable tool to propagate appropriate and balanced use of chemical fertilizers and to identify soil problems. Fertilizer recommendations are developed on the basis of soil analysis and recommendation reports are delivered to the growers for proper and balanced fertilizer use. for increasing the agriculture production in general and the farmers’ economic returns in particular. we have 78 . Khan. Mirpur Khas and Kasur. providing multifarious advisory services through crop demonstrations.I. crop seminars. FFC has also established a micronutrient testing laboratory at Farm Advisory Centre Jhang having Atomic Absorption Spectrophotometer and other analytical instruments. Besides these five farm advisory centers. Soil/water samples are collected from farmers’ fields and analyzed in the laboratories. Each centre has a team of five Agricultural Experts. farmer meetings. farm visits and group discussions.Functions Establish proper linkage sales and technical services Increase and faces on farm management expertise Professional development on personnel Collaborative research Farm Advisory Services Fauji Fertilizer Company Limited has been providing Agricultural Advisory Services to the farming community throughout Pakistan since 1981. Jhang. The soil/water testing and micronutrient analysis facility is offered free of cost. Moreover. field days.
In these documentaries all the components of crop production are covered with sufficient elaboration. FFC has also adopted the pragmatic approach of telecasting crop documentaries on PTV before the onset of sowing season of major crops. wheat. We encourage our farmers to get registered on our mailing list by sending a request in writing or through e-mail at the following addresses to receive copies of our published material free of cost.14 Technical Services Officers based at 14 Regional Offices of FFC spread all over the country extending these services in their respective areas. For any further information or agricultural advisory service. and orchards grown in Pakistan. we publish a quarterly Urdu News Letter “Zari Report” containing season specific information regarding crops. 79 . Cotton. For a stronger direct link and timely guidance of farmers. agro-grams. Following is the list of crop brochures available with us: • Wheat Brochure • • • Maize Brochure Banana Brochure Oil Seed Brochure • Sugarcane Brochure • • Mango Brochure Vegetable Brochure • • • Rice Brochure Citrus Brochure Guava Brochure • • • • Cotton Brochure Potato Brochure Apple Brochure Salt-affected Soils Brochure These brochures and Zari Report are also available in the Kashtkar Desk of our website . posters and pamphlets containing latest information regarding production technologies of crops. a “Fertilizer Guide Book” has also been published containing comprehensive information on various fertilizers available in Pakistan. vegetable. To improve the fertilizer use efficiency and to obtain optimum crop yields. their application methods and their economic use. we also publish crop. orchard brochures. please visit any of our nearest Farm Advisory Centers or Regional Offices closer to you. sugarcane and rice documentaries can be viewed in the Kashtkar Desk of our website. To further strengthen our advisory services and facilitate our farmers. fruits. improved agronomic practices and articles on agricultural issues. vegetables.
Technical Services Department (Marketing Division) Fauji Fertilizer Company Limited Lahore Trade Centre. Lahore Phones: 042 – 6365119 Farm Advisory Centre D. Kasur Phone: 0492-671848. Chiniot Road. 3360223 Planning Department The planning department is the integral part of fauji fertilizer company.heads it. 3 – km Khudian Road. Dial Road. Khan Jhang Phone: 0961 – 741701 Near Chenab College.I.671118 Farm Advisory Centre Kasur Farm Advisory Centre Vehari Faqiriay Wala.5 – km. Senior executive planning who is responsible to SMSM . Phone: 0471 . Khanewal Road.I. 0492-2003977 2. Vehari Phone: 067-3361913. 11-Shahrah-e-Aiwan-e-Tijarat. The department coordinate the activities 80 . D. Khan Farm Advisory Centre Jhang Faqir Manzil.
of all other departments within marketing division . Functions Coordination and development of annual business plan Provision of historical information to regions and senior sales managers for developing sales forecast Finalizing sales forecast with coordination related sales force Preparation of fertilizer data book Monitoring international fertilizer price trend Preparing Pakistan industry Urea market participation reports Chairman’s report for board of directors meeting containing analysis.Major responsibility of the department is collection of information about competitors and analyzing their strategies. These reports are prepared on need basis Preparation of Fertilizer Industry Report Reviewing FFC sales performance on quarterly basis Develop plans for training of officers Monthly analysis of FFC ex-plant road and rail fright analysis 81 .FFC performance And industry situation.
Board of Directors and Executive Committee devise strategies keeping in view the vision. Corporate responsibility for the overall strategy . Top management and middle management are given powers to carry out the operations for the achievement of long-term objectives. polices are devised at the peak level. These strategies are executed according to the instructions of top level of hierarchy.Policy Formulation Procedure At FFC. business and macroeconomic risks faced by the company and devising business ventures for sustained growth in long term profitability of the company aimed at enhancing the shareholders returns. accuracy. assets management and operations of the company and for identifying and overcoming any challenges . Corporate Governance Practices Good governance has always been vied as an inspiration by the board in enhancing the timeliness . mission and the objectives of the company. They encourage the views and suggestions of employees as well. It helps in the effective implementation of the formulated strategies.management levels. comprehensiveness and transparency of financial and non financial information and the board endorses the practices contained in the code of corporate governance of the listing regulations in performance of the board’s duties and enforcement at all management and non. 82 .
Good auditing can be said to consist of substantial verification of the accuracy and completeness of a FFC records and of the safety and efficiency of its operations. In addition to this. the FFC tends to compete aggressively for them. Among the factors determining the level of deposits in a FFC are some that the FFC usually cannot affect significantly. they can never the less influence the amount the FFC hold. some direct spotchecking has an important place in the audit program even where controls are well developed.Managerial Policies: AUDIT PRACTICES A number of excellent manuals are available for the professional auditor or the member of a director’s examining committee who wishes to familiarize himself with specific audit techniques. some of the leading are monetary and fiscal policy and the level of general economic activity. POLICIES REGARDING EMPLOYEES Some of the policies adopted by the FFC regarding employees and personnel are as: 83 . In FFC most direct form of auditing is simple rechecking have a second person redo what someone else has already done. POLICIES FOR ATTRACTING DEPOSITS Although management and directors of FFC do have absolute control over the level of their deposits. Because deposits are so important to the profitable operation of FFC.
In the process of learning the first few simple tasks the employee grasps the relationship between what he is doing and the work of the department or the FFC as a whole. the FFC maintains close relationships with guidance directors of local high schools and colleges it also encourages employees to bring in their friends and it see to it that students have opportunities to visit the FFC and head about some of the advantages of working there. TRAINING The newly hired employee generally starts as a clean state on which nothing has yet been written. to challenge the 84 . There is a known need for officer replacements in five or 10 years.RECRUITMENT The standards set by FFC when it first selects its employee largely determine the caliber of the staff in the future. The employee’s attitude towards the FFC and job are shaped by the first few weeks of experience. As we can say. Thus FFC emphasizes both cases i. The FFC urges the recruitment of several young MBA’s at competitive salaries.in short for orientation. good training is an art if not a science and should be entrusted only to those within an organization who have an aptitude for it or who have received special training in the instruction of others. New employees have a fundamental need for a broad idea of their job. aptitude. interest or previous experience for clerical personnel.e. it behooves management to look for prospective employees who are believed at the outset to have officer potential because of their education. The FFC allows summer employment programs to allow college students to see the challenges of fertilizer careers and are always alert for able and interested people employed at other companies or in other fields.
The major portion of communication necessary for the day to day operations of a FFC consists of simple person to person conversation more complex ideas. A more effective incentive is a well designed profit sharing plan with benefits that vary from year to year in direct proportion to the financial success of the FFC operations. however. first. gain clarity if they are put in writing. ranging from daily or weekly officers meetings to annual weekend conferences. The salary administration of FFC is reasonable as at many factors contribute towards the working conditions job security. 85 . second. hospitalization. and group life insurance are the rules prevailing in the FFC. the relationship of the FFC salary scale to salaries paid for comparable jobs in the community and the industry and. the relationship of the salary paid to one person to that paid to others for jobs of comparable difficulty within the FFC. prestige and opportunity for advancement all enter into the competitive package. FFC provides fringe benefits to or better than those offered in other industries pension plans. The FFC makes the communication channel more effective by staff meeting eventually it is an extent ion of the conversational or discussion technique but embraces a larger segment of the organization. It is a two way street. Thus the FFC is talented in the ability to write clearly which is an invaluable management talent that needs constant practice and development. listens as well as interacts. Such meetings are regular features of efficiently operated FFC and take a wide variety of forms.employees so that they will continue to be interested in FFC and will realize the need for continued training as their responsibilities become greater. COMMUNICATION A good deal of verbal interchange takes place in FFC each day. The competent officers discuss rather than directs. SALARY (PAY SCALES) The principal criteria for a well considered salary policy are.
EDUCATION: FFC focuses on the higher quality of education. practices/styles FFC has the strong management system to run the business. Jobs are being designed to fit the people who hold them in the hope that greater employee motivation (which is essential to higher productivity) will result. Sensitivity training and / or organizational development programs have been used to aid in the broad development of Top executive talent and teamwork. The officers employed in the FFC are mostly graduated from either foreign universities or some of the leading universities in the country. GROWTH OPPORTUNITIES FFC provides growth opportunities to its employees and officers. methods and relationships are structured not only to satisfy technological and organizational requirements but also to accommodate human needs for meaningful and self-fulfilling work. 86 . Job contents. There are many planned policies which are adopted by the company. making them feel insecure about their jobs. RETIREMENT The FFC does not emphasis on having regular employees. as it deals with many leading institutions. MOTIVATION LEVEL Job design for motivation is another personnel approach that has been increasingly emphasized in recent years. Today FFC is one of the most successful companies and its all due to its superb managerial policies. Major managerial policies. Therefore most of the time the employees are interested in finding secure and more appropriate job. Mostly the employees are hired on contractual basis.
Meetings are held where decisions are taken for the efficient functioning of the company’s marketing and sales areas because the company depends a lot on its marketing and sale policies. Products are sold throughout Pakistan with no change in prices anywhere. however. In case of consumer products the freight are born by the company. The various personnel strategies can be that the employees are chosen solely on the basis of merit and they are given monetary rewards and incentives with a view to increasing the commitment and motivation of the employees. promotion and customer contacts. The customers are offered no discount and also products are sold on cash basis. Marketing. Just because of this policy the company continues to benefit from the efforts of its valuable people. supports all these sales strategies by product development through the creation of public awareness. Marketing and Sales Policies Marketing and sales departments serve as backbone in the company. The management believes that their employees are major assets of the company. FFC has fully planned and organized marketing and sale policies. In case of industrial products freight are the responsibilities of the customer.Human Resource Policy FFC has strong human resource policy. Marketing budget is carefully determined and sales people incentives and salaries are reviewed from time to time. There are certain other essential things about the sales strategies. Although the salaries are not really competitive if you look at the market scenario yet the employees are quite satisfied as they are working in an excellent environment and enjoying as an employee of a market leader. 87 . the strength of FFC through training and development activities the human resource policies aim at the improved working conditions all over the organization. the cost of change in design is charged to the customer. who are actually. Moreover.
e. investment is made only in the projects. Thus synergy is given a lot of importance. Internal Strong Relationship Packages maintain a strong relationship between the departments. Customer Relationship FFC adopts the strong customer relationship policy. which will increase the sales in the future. They try to acquire the related companies or part of business to give a boost to the business growth.Backward Integration Strategy FFC follows the backward integration to support their business. Financial Policies FFC has the well established rules for their financial transactions. They think customer as the king. All departments are interrelated. One of the most important strategies in this regard is of investment. FFC has many other policies to run their business. They are following 20 – 80 strategy in dealing with the customers. These all contribute to the success to the success of the FFC. Before making investment future is seen rather than the present i. 88 . It is one of the main aspects of strategic management that all the various functions performed in the company by the different departments must have interrelation and collaboration if company wants to achieve success.
training communicating with and coordinating others. The role of manager is to assemble the best work team he can obtain and then to provide a supportive motivational environment to guide that team to accomplish agreed upon objectives. The management styles adopted by the FFC affect greatly. It involves organizing. The essence of management is the activity of working with people to accomplish results. motivating. IMPACT OF MANAGEMENT STYLES ON EMPLOYEES: MOTIVATION The term motive implies action to satisfy a need. MANAGING THE ORGANIZATION The management of the FFC focuses on some of the objectives that it wants to achieve. The way managers treat and deal with their subordinates in order to accomplish the multiple objectives of the organization is determined primarily by management system of beliefs about the nature of man and about the determinants of cooperation in an organized endeavor. coordination and evaluation of people to achieve these goals. and employees are motivated in order to enhance their performance and achieve the derived goals.MANAGERIAL STYLES Management is process of utilizing material and human resources to accomplish designated objectives. Motivation can be defined as a willingness to expend energy to achieve a goal or a reward. MORALE AND PRODUCTIVITY 89 . leading. direction. It involves the organization.
that management should put its eggs in the basket that creates a high-motivated work force. Recruitment and Selection Criteria FFC has designed a sound but easy method of recruitment. The employees are happy and are also productive workers. Sometimes other factors are considered such as length of service. Job attitudes and morale are quite positive for two reasons. Firstly employees gain social satisfaction from interactions at the work place. which in turn advertises the vacancy in the leading newspapers and asks for the qualified people. In other words we can say. Recruitment of Workers Minimum qualification for the post of the workers is Matriculation 2nd Division with science subjects. it sends its requirement to the Human Resource Department. education.The employees of the FFC possess high morale. only interview method is used to select the best candidate. The guiding principles for Recruitment FFC encourages the recruitment of fresh graduates than experienced once. The management believes in developing the employees according to the requirements of the organization. If the performance of the 90 . The workers should not be more than 21 years old and must be medically fit. In case of the posts requiring some experience. These are employed as "Apprentice Trainee". previous work history and the like. Working conditions and supervision good. secondly high morale result from high motivation to produce. When any department needs an employee. PROMOTION FFC decisions about promotions are decided upon the basis of merit in one’s present position and ability and potential to assume the impossibilities of higher level positions. training courses completed. except for high managerial posts where experience is must. and thus exhibit high productivity.
2) Recruiting & Hiring For recruiting and hiring some factors are taken into consideration. Keeping in view the time constraints. 91 . and Time required filling the vacancy. he is hired. Normally workers get promotion after two years on the recommendation of their supervisors. These applications and CVs are screened out on the basis of: Merit. and Experience etc. Budget constraints Process The recruiting and hiring process starts from the applications submitted by the degree holders. Institute. This post is not advertised. They provide their CVs along with the applications. it sends its requirement to the Human Resource Department.worker is satisfied during the probation period. These factors are as follow: Nature of the job. the Human Resource Department contacts the authorized institutions. Recruitment of Executives 1) Job Identification When any department requires an employee. advertisements are given in the newspapers. Otherwise if the vacancy has to be filled immediately. universities etc.
First impression. Social acceptance. 20 or 30 applicants (according to the job requirement) are chosen for the first interview. Confidence. I. Normally two interviews are taken. After taking the test. Leadership skills.R. Relevant knowledge. Then successful candidates are called for final interview which is taken by: 92 . the top 10.R Department lists out the salient features of the CVs (only the accepted CVs).R. the selected applicants are informed about the date and time of the interview. and Some questions about the particular job. Data sufficiency. In this interview they observe: • • • • • • • • • Alertness. are selected for interview. approximately 50% of the applicants are selected for the further process. Manager and the departmental head. Basic mathematics. who have given the test. Then the H. H. Interests. Through telephone calls or letters.R.Q. and Maturity According to these observational factors rating or grading is made. Manager and the departmental head take first interview. for which the applicants have applied. Then the H.After this. Manager takes a test based on: English comprehension. Normally 5% rating in each factor is acceptable. Normally 30% of the applicants. Communication skills. At this stage the selection of applicants also depends on the H.
this orientation is two months. Some external courses may be offered not only to the existing employees but also to the new trainees. various processes. After the final interview. • • • • • • LUMS PIM Intek Solution British Council Informatics Employers Federation of Pakistan Performance & Appraisal 93 . the participants may ask to put forward a short report or presentation . the selected applicants are sent for medical test and then the Industrial Relations Manager issues them the appointment letters. the trainee goes to H.R. The trainee is given a brief view (orientation) of the company. Training & Development* Appointed persons are trained for six months. After the 6 months training. Manager and tells him what he has learnt in this program.• • • • General Manager Deputy General Manager Human Resource Manager Departmental Head (sometimes) Previous traits or factors are once again examined. rules & regulations etc. After the orientation program. In the Consumer Products Division after one year they are given the designation of “Assistant Manager Sales”. they are given the title “Management Trainee”. These courses are held in.
maintenance. Plants Goth Machhi Operational performance of the plants 1&2 Goth Machhi was excellent during the year with a total “SONA” urea production of 1458 thousand tonnes. With on going efforts to improve plant reliability and performance. System implementation through enforcement of FFC. maintenance turnarounds are now schedule on bi-annual basis. The particulars of the candidates are written on the top of the form. 94 . This Performa is named as (PPE) Performance Planning & Evaluation. improve operations and maintain its position at the leading fertilizer manufacturer in the country.s operational. Cost effective and professional solution are adopted to address any major potential reliability threats. there is a Performa. plant operating efficiencies surprised all previous records with large margins. The continued with selective investments necessary to sustain profitability . various modification jobs were also executed to improve operational efficiencies. Annual maintenance turnarounds of both plants were carried out in the first quarter of 2004 and were executed safely and successfully within the stipulated time. Immediate officer appraises performance. Plants reliability improvements projects remained of prime importance and significant progress has been achieved by addressing major unreliable areas and chronic problems. Comprehensive inspection and major overhauls of equipment and machines were carried out in house .Performance & appraisal are two sides of a coin. which is filled by immediate officer. Plant Sites The year witnessed exceptional performance at every level . Plant 1 created a new record of daily urea production this year. For the appraisal of the performance. There are seven sections in this form. plant monitoring. housekeeping and safety practices remained in the lime –light and deficiencies were overcome utilizing the gap analysis approach.
95 .In our endeavour of self reliance in areas of critical maintenance activities. We are pleased to report that the company was able to achieve the required “SONA urea” quality level for”FFC urea” produced by the plant 3.3 Gcal/ Met ammonia. Utilization of the safe natural gas would also result in 18 thousand tonnes of additional urea production. To fulfil our commitment with the GOP for enhanced urea production. Dedicated booster compressor have been planned to be commissioned in the first quarter of 2005 to boost gas supply pressure and further expansion of raw water resources and its optimization is currently under way to meet water requirements. annual maintenance turn around of the plant was deffered to 2006 after careful technical review of efficiency maintained during tge period of meet the increase in demand. detailed engineering of energy revamp project of plant 1 Ammonia unit is under process and commissioning is expected in 2006. we are confident that benefits will continue to acquire to the company by providing value added quality products to our customers. refurbishment of old bimetallic stripped of plant 3 was successfully completed in the fabrication shop which made this expensive equipment operational again at plant 1. The exchanger has completed its useful life and order has been placed for a new exchanger with modified design. this implantation would result in an energy saving of 0. 14% in excess of last year output.The continious decline in natural gas supply pressure from Mari gas field poses a new challenge with a direct impact on production . general water shortage in the country with frequent canal closures and declining water fliw in the rivers in the past few years has also put more strain on our water supply wells. ]evaluation of existing BFW heat exchanger E-211 was carried out for vibration and leakage estimation. which was formally declared As “SONA urea” on March 2004. Plant Mirpur Mathelo Taping the potential of our recently acquired plant Mirpur Mathelo has resulted in a noteworthy efficiency of 125% of name plate capacity with annual production 716 thousand tonnes.
new inventory management system and computer training of all employees. Almost all the piping isometrics of Urea Hydrdolyzer projects have been approved and most of the piping / equipment erection work has been completed. the marks are modern fiber optic network . Information technology culture was successfully inculcated at the plant in order to reduce and simplify routine workload and to keep pace with modern technology. 96 . FFC has also planned de. Cooling tower packing replacement for another two cells shall be completed before the onset of next summer season and is expected to yield a saving of Rs. 12.bottlenecking of its plant three for increasing nameplate production capacity to 725 thousand tonnes annually in a normal year. The project is ready for commissioning after turnaround 2006 and will help reduce NH3 contents of effluent water and provide additional urea production of 17 MTPD.50 million per annum through improved energy efficiency.To meet its commitment to the Govt .
Promotion 1. Place 3. there are no limits to how much these variables can be altered. However. Marketing mix often is viewed as “controllable” variables because they can be changed. Price 4. These components are called marketing decision variables because a marketing manager can vary the type and amount of each element. One primary goal is to create and maintain a marketing mix that satisfies consumer’s needs for a general product type. Product 2. It includes product 97 . Place. PRODUCT: It can be defined as every want satisfying attribute a consumer receives in making an exchange.MARKETING MIX Marketing Mix consists of major components: Product. They are not totally controllable. Promotion and Price. Major components of Marketing Mix: 1. including psychological as well as physical benefits.
straight nitrogenous and most widely used fertilizer in the country. and the service accompanying the product. Product Sona Urea Sona Urea is the most concentrated solid. transportation. product testing. but FFC is producing in prilled as well as granular forms. It includes selection. PRICE: It is the value that one puts on the utility that one receives of goods and services. transportation and storage costs as low as possible. 2. Place: It is the making available of products in quantity desired to as many customers as possible and to hold the total inventory. 3. readily soluble in water and both contain 46% Nitrogen. warehousing. Mostly it is manufactured in the form of prills. and specific pricing strategies. and inventory control. product research and development. pricing policies. and evaluation of channels. free flowing.planning. 4. Because of 98 . Coordination. Promotion: It is used to facilitate exchanges by informing one or more groups of people about an organization and its products. It includes price determination. personal selling. Promotion includes such areas as sales management. Prilled and granular fertilizers are white in color. advertising sales promotional programs and all other forms of marketing communications.
0 ~ 5.its high solubility. The highest concentration of plant nutrients i na bag helps saving costs of transportation. From nutrients' concentration point of view.30 0.82 ~ 2. It is the widely used phosphatic fertilizer in the world as well as Pakistan.87 Dust Free 2. The solubility of DAP is more than 95%. which is highest among the phosphatic fertilizers available in the country.80 ~ 0. storage and application. 32 KG of nutrients / bag.5 ) makes it an idea fertilizer for Basal application to meet the initial requirement of most of 99 .e. Due to high solubility it can also be used through fertigation as well as by foliar application. Urea is the best suited to our soild because some of the salient physical and chemical charecteristices of Sona Urea Prilled and Granula are below. handling.0 1. Its nitrogen to phosphoris ratio ( 1 : 2.30 0. it is suitable for solution fetilizers and folira application. it has got the highest quantity of total nutrients in a 50 KG bag i.80 ~ 0. Description Physical Condition Nitrogen(%) Moisture (%) Biuret (%) Fines (%) AV Prill Size (mm) ActualStatus Prilled Free Flowing Prills 46 < 0.0 DAP Sona DAP is the most concentrated phosphatic fertilizer containing 46% P2O5 and 18% Nitrogen.0 Granular Free Flowing Granules 46 < 0.87 < 1.
FFC SOP contains 50% K20 in addition to 18% sulfur. Its salient characteristics are listed below: Sona DAP Description Nitrogen(%) P2O5 (%) Crushing Strength (Kg) Size (mm) Moisture (%) Actual Status 18 46 6 2~4 < 0. Use of potassic fertilizer in Pakistan is minimal. Potash is an important nutrient for activation of enzymes in the plant body and helps increasing sugar and starch contents. which is also an important nutrient especially for oil seed crops and it also has an ameliorating effect on salt-affected soils. As readily soluble in water so it can be used through fertigation as well as foliar application. which needs to be promoted for qualitative as well as quantitative crop production. Potash improves the resistance of the plants against pests.7 FFC SOP This fertilizer is an important source of Potash. which is a quality nutrient for production of crops especially fruits and vegetables. SOP is well suited fertilizer for all types of crops and soil. Having an ultimate acidic effect on the soil. diseases and stresses like water / frost injury etc.the crops. it is well suited for our alkaline soils. 100 .
1035 101 .Price Sona Urea(P) Sona Urea(G) Sona DAP Sona SOP Sona Boron Rs.485 Rs. 480 Rs.
Because fertilizers is required in all the parts of the country and FFC being a national firm takes it as it obligation that its product is distributed trough out the country. Distribution Distribution department is of the major department helping the sales force. For this purpose company gives some discount to those dealers. who belong to far-flung areas. But to make the whole system very smooth a company is having well structured distribution department. quality and price are the same as suggested by the company policy. The distribution department makes contract with private contractors to accomplish the tasks. There is a great demand of fertilizers in the country and company is having in advance orders.PLACEMENT The product is distributed directly from the plants.4 MT approx) Satisfying 3580 dealers . Truck generation for 1556 sales points. Objectives Ship out entire production of FFC and FFBL plants and imported fertilizer in accost effective manner(3. 1632 direct customers and 169 warehouses. Which coordinates with carriers both company and individuals. The contractors are responsible for any loss to the product on the way. The company also ensures that the prices of the product do not vary in any part of the country because of transportation cost. The management also pays surprise visit at different dealers shop to ensure that the quantity in the bag. 102 . The primary function of distribution department is to ensure effective and efficient distribution of product from plants up to the final customers.
Monitor packing availability and arrange safe storage of surplus production during lean months. NLC. timely delivery and documentation. quality packing . Follow up of product quality complaints. Plan and undertake self imports/exports and ensure prompt handling . Maintain liaison with Pakistan railway .correct weight. port authorities and suppliers. Transportation Arrangements Private trucking contractions NLC Pakistan railways Dispatches 2004 Fig in KT Ex Goth Macchi Ex Mirpur Mathelo Ex Bin Qasim Ex Port Total Road 1348 652 871 244 3315 Rail 111 73 85 12 282 Total 1459 725 956 256 3397 Ratio 92:08 90:1 91:09 95:05 92:08 103 . Coordinate with plant management to ensure smooth operations.
Customer served Dealers Direct customers 3580 1632 Total 5212 Zone wise Warehouses and capacity Zone North Central South Total Regions 5 5 4 14 Warehouses 63 53 49 165 Capacity MT 136700 119400 78400 334500 Type of Warehouses Strategic Warehouses Permanent warehouses Temporary warehouses Purely temporary warehouses 104 .
FFC is using different mediums to promote its product. But FFC does it for many good reasons one of them is to protect its brand name. Especially promotion becomes crucial when company needs to introduce a new product. But in fertilizer industry in Pakistan companies need little promotion to achieve its objectives. FFC in spite of all these hurdles take all the option to promote their product. many problems including media and education level arises. As a matter of fact. IN fertilizer industry the users mainly residing in rural areas. And the reason is because demand is greater than supply. Fertilizer industry is different from FMCG’s. So.Promotion Promotion is the backbone of the successful marketing network. that is SONA Actually company wants that whenever any former in the country thinks to use fertilizers the only name that should come into his mind should be SONA. 105 .
which is working under marketing service department.FFC marketing division Lahore has a sales promotion department. is responsible all the promotional activities. The department is using various ways to promote their products. These are Different Medias used at FFC for promotion Television Radio CCTV Print media Road side Point of purchase Electronic Media Ptv Ptv -world KTN (Sindhi Language) GEO Indus T.V ARY-Digital Campaigns Kharif campaign Rabi campaign 106 .
Radio National radio channels Add duration 10sec-60sec All around the year CCTV Islamabad airport Multan airport Faisalabad airport Lahore railway station Multan railway station Hyderabad railway station Faisalabad railway station Daewoo coaches Daewoo lounges Print Media National daily’s Regional news paper International magazines National magazines Regional cultural magazines Add size 108 pcm(standard size of add) Road side Advertisement 107 .
Jumbo hoardings Bill boards Ware house boards Dealer shops boards Plastic whole signs Point of Purchase Crop posters Corporate posters Crop booklets Agro grams Zari reports Buntings 108 .
Company Analysis in Terms Of: Vertical Analysis (Common size statements) Horizontal Analysis (indexed analysis) Ratio Analysis o o o o o o o Liquid ratios Financial leverage / solvency ratios Coverage ratios Activity ratios Profitability ratios Du-pont analysis Market ratios Book values per share (with assumed changes) Projections of income statement (with assumed changes) Sensitivity analysis 109 .
Balance Sheet Balance sheet SHARE CAPITAL & RESERVES share capital capital reserve reserve for issue of bonus shares revenue reserve NON CURRENT LIABILITIES DEFERRED TAXATION 2407000 CURRENY LIABILITIES trade & other payables interest & mark up accrued short term borrowings current portion of long term financing loan murabaha taxation proposed dividend TOTAL LIABILITIES ASSETS FIXED ASSETS (TANGIBLE) property. plant & equipment FIXED ASSETS (INTANGIBLE) goodwill LONG TERM INVESTMENTS LONG TERM LOANS & ADVANCES 67328 LONG TERM DEPOSITS & PREPAYMENTS 3492 CURRENT ASSETS stores. spare & loose tools stock in trade trade debts loans & advances deposits & prepayments other receivables short term investments cash & bank balances TOTAL ASSETS 1727309 219180 1407736 86368 24633 560895 4464157 1055830 26443107 3040 1686980 681297 1876381 63982 23111 560526 2200845 1834148 27219468 63920 5831105 74233 100000 2184088 1741 83333 598297 2522000 3356904 83562 2972333 1447011 1740 41667 329910 384743 27219468 2004 2949703 160000 442455 8742749 2868403 2003 2564959 160000 8797753 4556886 26443107 2004 9180716 1778464 5866999 2003 9259008 1883079 7083151 110 .
16 -96.87 CURRENT ASSETS stores.63 -37.07 102. plant & equipment FIXED ASSETS (INTANGIBLE) goodwill LONG TERM INVESTMENTS LONG TERM LOANS & ADVANCES 5. spare & loose tools stock in trade trade debts loans & advances deposits & prepayments other receivables short term investments cash & bank balances TOTAL ASSETS 2.Horizontal Analysis SHARE CAPITAL & LIABILITIES SHARE CAPITAL & RESERVES share capital capital reserve reserve for issue of bonus shares revenue reserve NON CURRENT LIABILITIES DEFERRED TAXATION -4.05 -0.84 -42.00 -0.33 LONG TERM DEPOSITS & PREPAYMENTS 14.98 34.85 0.00 0.06 100.43 -2.35 -100.00 -2.17 2004 15.56 -17.99 6.05 111 .85 73.70 -11.39 -67.83 -24.56 CURRENY LIABILITIES trade & other payables interest & mark up accrued short term borrowings current portion of long term financing loan murabaha taxation proposed dividend TOTAL LIABILITIES ASSETS FIXED ASSETS (TANGIBLE) property.64 50.00 81.59 0.85 -5.94 0.
Horizontal Analysis of Balance Sheet There is a decrease in cash and bank balance during 2003-2004. Total liabilities have increased by 14. which is of 2.61% which is due to increase in stockholder’s equity increased by 46. There is overall decrease in Total assets.3%.85%. 112 . company is attracting more capital from investors in order to expand its operations.
HORIZONTAL ANALYSIS LIABILITIES: 150 100 113 .
ASSETS: 120 100 80 114 .
VERTICAL ANALYSIS : Under vertical analysis of income statement each item is stated as a percentage of net sales. Under common size statements all items are stated in term of percentages. Under vertical analysis of balance sheet each asset is stated as a percentage of Total assets and each liability and stockholder’s equity item is stated as a percent of Total Liabilities and Stockholder’s Equity. as calculated in vertical analysis. 115 .
23506 0.306994 10.315141 2.33273 0.085555 6.587815 32.413485 100 2004 11.326618 0.280727 0.32155 16.37817 8.423252 0.102561 CURRENY LIABILITIES trade & other payables interest & mark up accrued short term borrowings current portrion of long term financing loan murabaha taxation proposed dividend TOTAL LIABILITIES ASSETS FIXED ASSETS (TANGIBLE) property.84745 2003 9.006584 0.02237 116 .259574 0.91988 5.738368 100 22.502977 6. plant & equipment FIXED ASSETS (INTANGIBLE) goodwill LONG TERM INVESTMENTS LONG TERM LOANS & ADVANCES LONG TERM DEPOSITS & PREPAYMENTS 0.605073 1.01612 6.74128 0.918133 26.265427 12. spare & loose tools stock in trade trade debts loans & advances deposits & prepayments other receivables short term investments cash & bank balances TOTAL ASSETS 6.013206 CURRENT ASSETS stores.323641 0.06249 10.011168 6.71875 6.197696 2.153078 1.828874 5.05151 0.007359 34.007579 34.006392 0.725624 22.88212 3.084906 2.1549 0.059283 8.Vertical Analysis vertical analysis SHARE CAPITAL & RESERVES share capital capital reserve reserve for issue of bonus shares revenue reserve NON CURRENT LIABILITIES DEFERRED TAXATION 9.992836 100 0.532171 0.262582 100 9.093155 2.212037 1.316088 0.893526 0.18725 0.121139 16.673234 33.
42 to 11. 117 . but some of the current & fixed assets are also increasing at the same time .which means these liabilities are increasing. current portion of financing ) showing a little bit higher increase . There is an overall decrease in the assets of the company in 2004 as compared to 2003. But the company is using its assets productively in its operations.Vertical analysis of balance sheet Vertical analysis shows that There is an increase in the capital from year 2003 to 2004 which is 9. There is also increase in the reserves of the company due to which the worth of the company has been increased. murabaha. Some of the current liabilities of the company are increasing with the minor fractions but some of the current liabilities (trade payables. but are backing up the short term investments and some of the other current assets.15. this significant increase shows that people are willing to invest in the business of the company. including fixed and current assets.
66044 118 .Income Statement PROFIT AND LOSS ACCOUNT 2004 sales cost of sales gross profit other incomes 21027030 13157653 7869377 933762 8803139 OPERATING EXPENSES distribution cost other operating expenses operating profit financial cost NET PROFIT BEFORE TAXATION provision for taxation NET PROFIT AFTER TAXATION EARNING PER SHARE basic & diluted 1766652 560494 6475993 372949 6103044 2099000 4004044 13.57441 \2003 21034629 13701319 7333310 457413 7790723 1851170 488206 5451347 520838 4930509 1786000 3144509 10.
7962 -28.78122 17.3944 23.33447 EARNING PER SHARE basic & diluted 27.99515 OPERATING EXPENSES distribution cost other operating expenses operating profit financial cost NET PROFIT BEFORE TAXATION provision for taxation NET PROFIT AFTER TAXATION -4.5252 27.1398 12.Horizontal analysis 2004 sales cost of sales gross profit other incomes -0.310028 104.03613 -3.80686 18.96798 7.33447 119 .56565 14.
120 . Financial charges have been decreased by 28% which is good sign for the company and it is due to increase in the equity financing. Net profit increased by 27% which is tremendous achievement for the company.Horizontal analysis of Income Statement: During 2003-2004 there is a significant decrease in cost of goods sold by 4%.
79842 1.57495 37.665588 30.320963 25.04237 8.44077 41.476098 23.86303 2.13697 34.800583 2.401814 2.42505 4.02476 9.773665 29.91606 2.490761 14.174571 37.86582 100 65.03761 OPERATING EXPENSES distribution cost other operating expenses operating profit financial cost NET PROFIT BEFORE TAXATION provision for taxation NET PROFIT AFTER TAXATION EARNING PER SHARE basic & diluted 8.Vertical analysis 2004 2003 sales cost of sales gross profit other incomes 100 62.9492 121 .982389 19.43996 8.
Vertical analysis of income statement: There is a very slight decrease in the sales but as compared to that decrease there is a huge decrease in the cost of goods sold. at the same time increase in the other incomes and decrease in the operating & financial costs leading to a huge increase in the profits of the company. due to which increase in the gross profit. 122 .
Ratio analysis Liquid ratios: Liquid ratios: (i) Current ratio (ii) Quick ratio (iii) Cash to C.213 CHART: 1.2 1 123 .051 0.119 2003 1.036 0. liability ratio 2004 1.957 0.076 1.
and this position has improved within the years 2004 and 2003. but the company must maintain a specific cash position to improve its cash liquid position.INTERPRETATIONS: (i) Company has a sound current ratio in 2004 than 2003. this means that company can readily pay off its liabilities. 124 . (ii) But the quick ratio is better than the current ratio. (iii) The cash to current liabilities ratio is weak which means company’s cash is more readily utilized.
167 0.324 0.245 0.4 125 . due to payments of debts and increase in equity level the company’s position of debt to equity has a significant 0.45 INTERPRETATIONS: (I) In year 2004 the company’s debt has been reduced against the proportion of the equity.Solvency / financial ratios Solvency / financial ratios (i) Debt equity ratio (ii) Debt to total assets ratio (iii) Total capitalization ratio (ix) Debt to fixed assets ratio 0.108 0.195 0.409 CHART: 0.163 0.261 2004 2003 0.
but in 2004 this situation has reduced to 26%. (ix) Fixed assets were backed by 40% debt financing in 2003. (ii) There is a 6% decrease in the debt backing up the total assets. this is a significant sign that the company’s debt position is decreasing and it’s assets position is improving.there is a decrease of 13% in the debt equity ratios of 2004 and 2003. Sign of increasing equity.decrease in 2004 as compared to the 2003. Coverage ratios Coverage ratios 2004 2003 126 . there is a decrease in the debt portion of capitalization which is of 8%. in 2004. (iii) In 2003 the debt portion in the capitalization is 24% while in 2004 it is 16%. showing trend of investment in equity.
(i) Interest coverage ratio 10. it is also due to the decrease in the cost of the good sold and other operating expenses. 127 .645 INTERPRETATIONS: Although the interest expenses of the company are increasing but the interest covering capacity of the company is also increasing in 2004 as compared to the 2003.466 Debt coverage ratio -- 17.364 3.
Turnover ratios (i) Debtors turnover ratio 11.21 Debtors collection period (days) (ii) Creditors turnover ratio Creditors payment period (days) 18.51 (iii) Inventory turnover ratio 20.11 Inventory over in days (ix) Total assets turnover 0.773 (x) Investment turnover 1.131 2004 2033 14.94 24 6.23 58.54 60.03 6.08 0.795 1.196 18.15 32 19.72
(i) In 2004 there is a more rapid turnover of 14.94 against 2003 turnover which is 11.21, at the same time the debtors collection period has also decreased from 32-days to 24-days. This is healthy sign for the company point of view. (ii) The creditors turnover of the company is decreasing from 19.72 in 2003 to 6.23 in 2004, and the payment period is also increasing from 18.51 in 2003 to 58.54 in 2004. With this help the company is in a position to use its cash and different resources for other productive works. (iii) Inventory is showing a tremendous increase in the turnover from 20% to 60%, a tremendous increase of 40% from 2003 to 2004,but at the same time the company’s inventory turnover in days has decreased from 18-days to 6-days, which is a remarkable achievement for the company. (iv) Total assets are showing an increased turnover of 79% in 2004 as compared to 77% of 2003. (v) Increase in the investment in the form of equity is showing a gradual improve in its turnover from year 2003 to 2004.
Profitability ratios (i) Gross profit ratio (ii) Net profit ratio 0.149 (iii) Return on investment ratio 0.115 (ix) Return on equity ratio 0.223 0.151 0.272 0.374 0.190 2004 2003 0.349
which is due to the decrease in cost of goods sold. (iii) Investments are showing a constant and gradual improve in their returns improving from 11. (ii) The net profit is improving from 14% in year 2003 to 19% in year 2004.INTERPRETATIONS: (i) Gross profit of the company is showing an increase of 3% from year 2003 to 2004. (iv) Increase in equity also showing an improving trend in their returns from 22% to 27%. 131 .55% to 15. there is an increase of 5%. This is a slow increase but we know that the sales are also decreasing. this shows that the company’s other expenses are also decreasing although the financial cost is increasing.14% in 2003 to 2004 respectively.
2239 0.Du pont analysis: Du pont analysis: 2004 0.2723 2003 0. 0. total assets. net profit and equity is improving from 22% to 27% in 2003 to 2004 respectively.25 132 .3 INTERPRETATIONS: (i) Du pont analysis shows that company’s position of sales.
Market ratios: Market ratios: 2003 (i) Earning per share 10.69 0.81 2004 13.84 9.087 (V) Intrinsic value per share 108.69 (Vi) Price earning ratio 8.81 0.091 8.57 133 .74 10.38 121.66 (ii) Dividend per share (iii) Dividend payout ratio (iV) Dividend yield ratio 0.96 0.
(Vii) Market price to book value 16 ratio 2.41 2.1 INTERPRETATIONS: 14 134 .
57 in year 2004. due to this position the shares of the company have huge market price from its face value. Showing a great market appreciation of the company’s shares in 2004. This increase will strengthen the company’s position in the eyes of the present as well as the potential investors. (iii) Dividend payout ratio of the company showing almost no change from year 2003 to 2004.(i) Company’s earning per share is increasing from 10. 135 .3 separate from the quarterly announced dividends in the form of interim and other dividends. (ii) Company’s dividend is showing an increase of Rs. (iv) Dividend yielding capacity of the company is showing an increase of 1% from year 2003 to year 2004. (vi) Price earning ratio is showing a slight decrease in the year 2004.66 in year 2003 to 13. (v) Intrinsic value of the shares of the company is increasing from 108 in year 2003 to 121 in year 2004.
PROJECTIONS The projections of the income statement for year 2005 shows that if company raise its capital through debt financing then its earning per share increases to 16. Increasing cost by 50% will lower down the net profit after tax to 4983721.4 and 3051522 respectively. While increase in sales and decrease in cost leads an increase in the net profit after tax.38 while raising capital through equity keep the earning per share to 15. Therefore company must raise its capital through debt financing.60. SENSITIVITY ANALYSIS Sensitivity analysis shows that increasing tax to 40% and 50% will lower down the earning after tax to 3661826. Decrease in the assets value at the time of liquidation leads to the liquidity value per share as 40.88/ share. 136 .BOOK VALUE PER SHARE It is suggested that the company should raise its capital through debt financing instead of equity financing because through debt financing the company’s book value of the share increases while through equity financing the book value per share decreases as u can see from the calculations given.
51 73.96 1.46 53.1 2001 8.22 17.61 40.2 2000 8 4.5 2004 12 10.59 1.06 21.08 1. Price earning ratio analysis: 12 10 8 6 4 2 0 price earning ratio 1999 2000 2001 2002 2003 2004 Company’s price earning ratio is showing a decreasing trend from year 1999 to 2001 and then increasing trend from year 2001 to year 2004.24 139.19 41.02 1.1 2003 10 8.27 2.85 2002 9 7.52 15.86 95.81 10.45 Dividend payout ratio (before tax) analysis: 14 12 10 8 6 4 2 0 divdend payout ratio(before tax) 1999 2000 2001 2002 2003 2004 Company’s dividend payout ratio is increasing constantly in the last five years.SIX YEARS TRENDS OF COMPANY’S MARKET year dividend payout ratio(before tax) price earning ratio market price to book value ratio dividend yield ratio market value per share 1999 8 5.46 16.32 16. 137 .5 3.76 1.
but from 2001 to 2004 the market price in relation to the book price is increasing and showing a huge increase in 2004.5 0 market price to book value ratio 1999 2000 2001 2002 2003 2004 Market price of the company was decreased from year 2000 to year 2001.5 1 0.Market price to book value ratio analysis: 3 2. 138 .5 2 1. Dividend yield ratio: 25 20 15 10 5 0 dividend yield ratio 1999 2000 2001 2002 2003 2004 The dividend yielding capacity of the company is showing a decreasing trend from 2001 to 2004.
Market value per share: 160 140 120 100 80 60 40 20 0 market value per share 1999 2000 2001 2002 2003 2004 The market value of the shares of the company is showing a constant increasing trend from year 2001 to year 2004 Training Programme 139 .
Industrial Relations and Welfare 6. These departments are listed according to the schedule of my internship schedule at the office. Administration 4. Regional Office Lahore 14. Sales North Zone 13.During my internship at FFC my training programme was arranged in the following manner by visiting these departments. Planning 11. Technical Services 10. Procurement 7. Sales Promotion 12. Distribution 2. Warehousing 3. IT Unit 9. General Manager Marketing Distribution Department Distribution department is of the major department helping the sales force. Human Resources 5. The primary function of distribution department is to ensure effective and efficient distribution of product from plants up to the final customers. Finance 8. Departments in Marketing Division Marketing Division Lahore contains the following departments. 1. Objectives 140 .
Maintain liaison with Pakistan railway . Truck generation for 1556 sales points. Monitor packing availability and arrange safe storage of surplus production during lean months. port authorities and suppliers. Plan and undertake self imports/exports and ensure prompt handling . NLC.correct weight.4 MT approx) Satisfying 3580 dealers . 1632 direct customers and 169 warehouses. Follow up of product quality complaints. quality packing . timely delivery and documentation. Coordinate with plant management to ensure smooth operations. Transportation Arrangements Private trucking contractions NLC Pakistan railways Dispatches 2004 Fig in KT Road 1348 652 871 244 3315 Rail 111 73 85 12 282 Total 1459 725 956 256 3397 Ratio 92:08 90:1 91:09 95:05 92:08 Ex Goth Macchi Ex Mirpur Mathelo Ex Bin Qasim Ex Port Total Customer served 141 . Ship out entire production of FFC and FFBL plants and imported fertilizer in accost effective manner(3.
technical courses. The functions of Human Resources Department vis-a-vis personnel management and human resources development are going side by side and it is due to the progressive approach and dynamic philosophy of the management that Personnel Management remains abreast with the latest style of management ensuring high level of motivation and satisfaction of the work force under varied situations. another aspect which receives its due share is training.Dealers Direct customers Total 3580 1632 5212 Human Resource Department The FFC Management. At Plant site. management courses. workshops and seminars both at home and abroad. justice. For Human Resource development. operations and progress. The employees are exposed to various kinds of cross training. fair play and merit oriented treatment are some of the ingredients of processing cases by the Human Resources Department. keeping them happy. the Company has a 142 . The Human Resources Department. Hiring quality manpower. therefore. Personnel policies are kept updated and are periodically modified to respond to the latest socio-economic changes and market trends of the country. acknowledging the importance of human resources has always placed personnel management at the top of its priority list. satisfied and motivated are the pillars of the Human Resources Department. right from the inception of the Company has played a vital role in steering the Company through all its phases.
management employees. Interpret company policy and provision of necessary ruling where required. Maintain up to date personal records. A number of agreements have been signed with CBA orkers Union. statistics including leave records .Technical Training Centre.Employees' welfare has all along received due consideration by the Management. lock out or go slow in FFC. resulting in handsome remuneration packages to employees. Maintaining their pay directly from head office. to the employees. and the only centre in Asia having a true replica of the Plant for providing realistic training as far as possible. welfare oriented policies and concern for every single employee that there has never been any strike. Human resources department of the marketing division is responsible for the employees related to marketing division. which is unique. 143 . relating to management and non. The company. It is due to the sheer sincerity. 4. has undertaken five salary revisions for Management employees. their attendance and payroll of the staff while officers and executives get Functions Work out warehouse supervisor visor’s requirements in consultation with regional manager and arrange recruitment and transfer activities according to head office instructions. to remain amongst the top paying organizations of the country. since its inception. 3.
employees etc Payment of telephone . 3. Forwarding of L/C opening request to head office for import of fertilizer. electricity and medical bill 144 . treasury. Maintenance of books of account including fixed assets . General accounting 4.supplies . Sales Accounting Specific responsibilities of General accounting Payroll of permanent and temporary staff employees Deduction of income tax from payroll and deposition in govt. Leaves (annual. causal. House/rent allowances advances Also the House building loans Finance department The finance department working at marketing division Lahore is responsible for all the sales collections either sales are made directly through plant or through warehouses. Temporary / contract / daily wages according to authorization. Reimbursement of regional imprested/distribution imprested. Deduction of income tax from various supplies and deposit into government treasury. special. Promotion of non management employees Pay and allowances of non management employees.Handling cases relating to following subjects Employment/appointment of non management employees. Forwarding detailed of provident fund contribution of permanent employees to head office. Processing of export related documents. Transfer claims of all employees. the finance department is divided into two sections. sick) are managed for all employees.
Payment in respect of bags and line for imported fertilizers Specific responsibilities of the Sales Accounting Maintenance of dealership records Processing and banking of sales and proceeds received from field force for the sale of fertilizer Transfer of data to plants for shipment Transfer of funds to head office recording of invoices for sales exwarehouses Receiving data from plants for direct sales Processing of bank Guarantees for secured credit sales Monitoring of unsecured credit sales to fauji sugar mills/forms Preparation of pricing and discount structure for various fertilizers Receiving data from plants for warehouse shipment Recording of stock movement reports Overall reconciliation of stock movement with intimation of head office Follow up receivables for sale through rail Recording of stocks receives from FFBL for sale on their behalf Sending the information regarding dealers balance to field force for recovery of receivables on various accounts 145 .
Board of directors. approval Budgetary control Circulations to cost controllers Quarterly budget variance reports Monthly revised cash flow statements Review of import requirements of fertilizer FFC related statements/ reports Daily / fortnightly Remittance status Sales status 146 .Managers GMM Collation and submission to Head office. review by management.Annual Business plan Review and development of Historical data Key assumptions Inputs from regions Review meeting SMs/RMs/Deptt.
Monthly Trial balance and related schedule Receivables report along with age analysis Revised cash flow statements Finance dept progress report Capital budget utilization statues Progress report of sales and w/h dispatches Stock report to insurance company and banks Bank reconciliation statements Tax deduction at source Dealer network status report Quarterly Budgeted vs actual expenses comparison Performance review of marketing operations Yearly Trial balance and related schedule Proposed capital and revenue budget Inputs for tax returns Inputs for company’s annual reports 147 .
The department coordinate the activities of all other departments within marketing division .heads it. Functions Coordination and development of annual business plan Provision of historical information to regions and senior sales managers for developing sales forecast Finalizing sales forecast with coordination related sales force Preparation of fertilizer data book Monitoring international fertilizer price trend Preparing Pakistan industry Urea market participation reports Chairman’s report for board of directors meeting containing analysis. Senior executive planning who is responsible to SMSM .FFC performance And industry situation.Major responsibility of the department is collection of information about competitors and analyzing their strategies.Planning Department The planning department is the integral part of fauji fertilizer company. These reports are prepared on need basis Preparation of Fertilizer Industry Report Reviewing FFC sales performance on quarterly basis Develop plans for training of officers Monthly analysis of FFC ex-plant road and rail fright analysis 148 .
Senior technical executive who is reporting to SMSM heads the technical department.Technical Department Technical department is providing support function to sales. Company is providing technical services all over the country free of cost. The 14 technical officers are serving in 14 regions all over the country in coordination with sales officers. Mission Statement of Technical Department ‘Help the farmer optimize utilization of his resources to rejuvenate farm productivity and increase his income’ Objectives Farmer education /training Dissemination of latest and complete package of technology Promotion of balanced fertilizer use Focus on increasing farmers income Counter fertilizer misconception Enhancing crop yield/overall crop production Supplement government effort for agricultural Functions Establish proper linkage sales and technical services Increase and faces on farm management expertise Professional development on personnel Collaborative research 149 .
providing multifarious advisory services through crop demonstrations. Farm Advisory Centers are located at D. D. we have 150 .Farm Advisory Services Fauji Fertilizer Company Limited has been providing Agricultural Advisory Services to the farming community throughout Pakistan since 1981. village meetings. Soil/water samples are collected from farmers’ fields and analyzed in the laboratories.G. FFC has also established a micronutrient testing laboratory at Farm Advisory Centre Jhang having Atomic Absorption Spectrophotometer and other analytical instruments. Each centre has a team of five Agricultural Experts. Fertilizer recommendations are developed on the basis of soil analysis and recommendation reports are delivered to the growers for proper and balanced fertilizer use. Khan. farmer meetings. Khan. The soil/water testing and micronutrient analysis facility is offered free of cost. All the centers are fully equipped with modern sophisticated computerized Soil & Water Testing Laboratories and high-tech extension equipment. Mirpur Khas and Kasur.I. crop seminars. farm visits and group discussions. The company is providing quality farm advisory services all over the country through its 5 Farm Advisory Centers and 14 Regional Technical Services Officers. Our organization in pursuit of its national commitment and moral obligation maintains regular contact with farmers and Agricultural Institutions to ensure constant and efficient transfer of latest technology. Moreover. Besides these five farm advisory centers. Soil Testing is a valuable tool to propagate appropriate and balanced use of chemical fertilizers and to identify soil problems. field days. for increasing the agriculture production in general and the farmers’ economic returns in particular. Jhang.
In these documentaries all the components of crop production 151 . orchard brochures. To improve the fertilizer use efficiency and to obtain optimum crop yields. we publish a quarterly Urdu News Letter “Zari Report” containing season specific information regarding crops. FFC has also adopted the pragmatic approach of telecasting crop documentaries on PTV before the onset of sowing season of major crops. fruits. improved agronomic practices and articles on agricultural issues. we also publish crop. a “Fertilizer Guide Book” has also been published containing comprehensive information on various fertilizers available in Pakistan. To further strengthen our advisory services and facilitate our farmers.14 Technical Services Officers based at 14 Regional Offices of FFC spread all over the country extending these services in their respective areas. For a stronger direct link and timely guidance of farmers. vegetables. vegetable. posters and pamphlets containing latest information regarding production technologies of crops. and orchards grown in Pakistan. agro-grams. Following is the list of crop brochures available with us: • • • • Wheat Brochure Maize Brochure Banana Brochure Oil Seed Brochure • • • • Cotton Brochure Potato Brochure Apple Brochure Salt-affected Soils Brochure • • • Sugarcane Brochure Mango Brochure Vegetable Brochure • • • Rice Brochure Citrus Brochure Guava Brochure These brochures and Zari Report are also available in the Kashtkar Desk of our website . their application methods and their economic use.
Technical Services Department (Marketing Division) Fauji Fertilizer Company Limited Lahore Trade Centre. please visit any of our nearest Farm Advisory Centers or Regional Offices closer to you.are covered with sufficient elaboration. Khanewal Road. Lahore Phones: 042 – 6365119 Farm Advisory Centre D. sugarcane and rice documentaries can be viewed in the Kashtkar Desk of our website. Chiniot Phone: 0471 . 152 . Khan Road. Khan Farm Advisory Centre Jhang Faqir Manzil. Dial Road. wheat. Jhang Phone: 0961 – 741701 Near Chenab College. D.I. 2. 3 – km Khudian Road.I.5 – km. We encourage our farmers to get registered on our mailing list by sending a request in writing or through e-mail at the following addresses to receive copies of our published material free of cost.671118 Farm Advisory Centre Kasur Farm Advisory Centre Vehari Faqiriay Wala. 11-Shahrah-e-Aiwan-e-Tijarat. Cotton. For any further information or agricultural advisory service.
Gulshan-e-Hussain.Kasur Phone: 0492-671848. Mirpur Khas Phone: 0233 – 860760 153 . Ali Farms. 0492-2003977 3360223 Vehari Phone: 067-3361913. Farm Advisory Centre Mirpur Khas 162-A. Hyderabad Road.
The IR department not only negotiates with the labor unions but also responsible handling with the labor One of the functions of IR department at FFC to tackle with all types of court problems.The criterion for formation of IR department is a factory having at least 50 employees and its provisions given in the Punjab as well as GOP labor laws.At present there are 24 courts in Pakistan. There are labor courts at regional level .IR basically deals with the Labor laws implication in an organization and has to negotiate legislatively with the CBA certified labor union at the factory .Industrial Relationship Department The IR department in organization is formed under the IRQ 69 [industrial relation ordination] of Punjab labor laws act and is under the approval of Management & joint Labor Department of Punjab Govt . Any employee who may have a complaint about the management can go to the court so IR department representative follow the case Major Activities Leave records of workers Appointment records Record of upgrading Annual increment record Vertical performance appraisal records Staff no allocation Negotiation legislatively with the union Follow up of all types of cases of labor court 154 .
Advertising and Sales Promotion The major function of the advertisement and sales promotion department is to enhance the corporate and brand image of SONA products. Objective To create .augment and maintain the demand of FFBL and FFCL products To enhance and sustain brand image and corporate image Improve company visibility in the mind of consumers To safe guard company logo To strengthen brand loyalty Different Medias used at FFC Television Radio CCTV Print media Road side Point of purchase Electronic Media Ptv Ptv -world KTN (Sindhi Language) GEO 155 .
Indus T.V ARY-Digital
Kharif campaign Rabi campaign
National radio channels Add duration 17sec-35sec All around the year
Islamabad airport Multan airport Faisalabad airport Lahore railway station Multan railway station Hyderabad railway station Faisalabad railway station Daewoo coaches Daewoo lounges
National daily’s Regional news paper International magazines 156
National magazines Regional cultural magazines Add size 108 pcm(standard size of add)
Road side Advertisement
Jumbo hoardings Bill boards Ware house boards Dealer shops boards Plastic whole signs
Point of Purchase
Crop posters Corporate posters Crop booklets Agro grams Zari reports Buntings Mobiles
Information Technology unit was properly setup in FFC Marketing division Lahore. IT unit is one of the most important departments working at marketing division Lahore. The Unit has to play a leading role in the marketing division in order to enable all the department to perform all their functions effectively and efficiently .It enables the management to make timely decisions.
OBJECTIVES OF IT UNITS
• • • • • To meet computing needs of all the departments of all the departments of the marketing divisions. To design and develop, efficient, effective and user friendly information systems To provide the maintenance services and proper updating of all these systems To properly cope with the security and ethical challenges related to information technology and information system To design proper feed back and control procedures toward achievement of its goals.
SYSTEMS DEVELOPED BY I.T UNITS
• • • • • Sales accounting system General accounting system Order processing system Regional information system Sales promotion system
Finance and distribution offices at Goth Macchi . Economical and timely procurement of items /spares for marketing division and plants ensuring complete backup support /after sales services.• • • • • Distribution management system Procurement system Human resource system Medical control system Technical support system Procurement Department Procurement department at marketing is responsible for the purchases.5 FAC.14 regions.s. Price enquiry of different items to estimate the price so that the budgeted amount may be endorsed on the PR before initiation Disposal of obsolete /surplus/scrap material Continuous updating of reliable vendors list for both plants and marketing division PROCEDURES INVOLVED IN PROCUREMENT STEPS • • • • • Raising of purchase request Approval of PR Request for quotation Bid opening Comparative statement 159 . Purchases for the following offices are made by Lahore Marketing Division.3 zonal officies.Mirpur Mathelo distribution office at FFBL port and head office requirements GOALS “To procure quality goods at the most economical and competitive rates” FUNCTIONS • • • • Quality.
• • • • Placement of order Delivery receipt of goods Verification of bills against orders Final payment REGIONAL OFFICE LAHORE The regional office Lahore is a front line department.Din Rawalpindi Sialkot Hafizabad COMPETITORS DCL Engro NFML Jaffer Brothers Ali Akbar groups PVT importers Activities Monitoring product wise /district wise achievement with respect to targets 160 . regional TSO and the sales officer Lahore district are working with assistance of stock members .For three days Tuesday –Thursday the officers are on field visits and for rest 2 working days they perform their office work. The districts included in Lahore region : LAHORE Gujranwala Sheikhupura M.B. It is actually involved with direct sales of fertilizer and interacting with dealers. The regional manager.
Khan FFC North zone competition • • • DCL Engro Private importers Functions of North zone • • • • • • Conduction sale forecast for regions include in North zone Monitoring sales allocation as per decided ratios Monitoring daily sales Studying competitors price structure Co-coordinating regions included in North zone Managing sales force of North zone 161 . There are five regions in North zone • • • • • Lahore Faisalabad Sahiwal Peshwar D. SALES NORTH ZONE Fauji Fertilizer company has divided Pakistan into three zones North.Monitoring current market situation with respect to fertilizer industry Monitoring competitors activities in detail Managing warehouses.These zones are further divided into fourteen regions and further districts. The allocation of districts is different from civil districts. South and Central . their sales and closing stocks Appointing and terminating dealers as regard to their performance. literate goal is to have a strong dealer network Checking sales performance of all the products and calculating percentage achievements with respect to that month and in comparison with cumulative previous months.I.
• • • • • • • Checking and inventory Coordination wit top management Ensuring availability controlling warehouses Monitoring of product Monitoring and keeping record of turnover of productivity Providing product on secure credit Preparing market participation reports Challenges Equitable distribution in short supply situation Cost control Competition Brand image Strategies Quality operations/ethical selling Rationalization of warehousing capacities Judicious utilization of secured credit sales Improvement in dealer network Emphasis on customer service effective utilization of technical services Human resources development Administration Department Administration department is involved with conducting the administration function of the fauji fertilizers of the marketing division 162 .
and ticketing etc. and Photocopy facility.e. electricity.e. For company gussets and officers Ensure the implementation of company policies and rules Provision of uniform to entitle staff (Qasids. telephone. Chowkidars. Jeeps and Poor vehicles Ensure availability of utilities like gas. E-mail. i. reception. transport. electricians and drivers) Ensure proper maintenance of the office premises and guesthouses Take disciplinary action under the rules where necessary Disposal of unusable assets of company Managing three major types of transport system related to marketing division. Under take protocol duties. • • • Company maintained Company assisted cars/Jeep Pool transport Transport holding Holding of marketing division transport is as under Company assigned cars Company assisted cars Company maintained cars 23 91 63 Total=177 163 .Functions Provision and maintenance of transport i. Cars.
appointment of handling contractors. training of supervisors. The record of inventories is maintained and physical inspection of the warehouse and product are carried out to ensure safety and security. Preparing weekly capacity reports. Functions of warehousing department Coordinating of warehouse department with regions regarding warehouse selection. capital and Formulating warehouse plans. revenue budgets on yearly basis.Ware Housing The ware housing department is involved in completing the formality For hiring And dehiring of warehouses (on need basis) . 164 . This department works in collaboration with distribution department. • • • Conduct the training of warehouse Preparing the operational . planning capacity of warehouses To conduct inspections of the warehouses on planned and surprise basis Each warehouse is inspected around 17 time a year. watch and ward contractors. Warehousing department is considered with processing of o Lease agreements o Watch and ward agreements o Handling agreements o Watch and ward bills • supervisors.
Zone wise Warehouses and capacity Zone North Central South Total Regions 5 5 4 14 Warehouses 63 53 49 165 Capacity MT 136700 119400 78400 334500 Type of Warehouses Strategic Warehouses Permanent warehouses Temporary warehouses Purely temporary warehouses 165 .
Inviting local and foreign luminaries In 2004 FFC had record urea production of 2174000 tons from all the plants Company is having strong dealer network all over country that helps in proper availability even in far-flung areas. disciplined and motivated workforce to facilitate to achieve desire targets 166 . FFC peruses an innovative education oriented advertising policy utilizing electronic/ print media and road side advertisement FFC is only fertilizer company in the industry conducting seminars on core agricultural issues.SWOT Analysis Strengths FFC is the market leader in the fertilizer having 60% of the market share. FFC is using a single brand name SONA for its products like SONA urea. FFC has developed a well [planned network of 170 field warehouses to ensure that fertilizers is available to the farmers uninterrupted Company has employed well-trained. Company being the market leader sets standards for the industry FFC devotes considerable time and efforts to promote awareness regarding good farmers techniques and methods among growers community The company continues to enhance the facility of providing farmers free farm advisory services through farm advisory centres. Currently company is having 5 FACs all over the country. SONA DAP helping farmers to remember the name.
The promotion of the management employees is made after the period of three years. 167 . which cause the lack of performance of policies. The high differences between the salary packages of the executives and the employees. Company is fully automated having the extensive information systems for the plant site as well as the marketing division FFC is offering best package of salaries to its employees comparable with any multinational organization FFC is among one of the top taxpayers in country FFC is introducing Farmer Friendly Culture SONA being the farmers first choice ISO certification Countrywide location of plants It has product range FFC is experienced in production and marketing of product.flung areas equally in other provinces. Weakness Size of the company is very large which produces administrative problems. Sales force has to face a tough time when moved to far. Transfers are made after the period of three years .
FFC can export Urea to Afghanistan and other neighbouring countries. Adding some new unit can enhance the production capacity of the plants. Lengthy organizational hierarchy. Non. demand for the fertilizer will increase. The increasing governmental support for meeting the demand pf fertilizer in the country. Being an agriculture country and due to increasing awareness about the balanced use of fertilizer. The insufficiency of technical sales orders. FFC can participate in the acquisition of their companies being privatized by the government. If FFC decides for the export of Urea it can earn much better revenues. Availability of natural gas from Iran can helping setting up a new Urea plant in that vicinity and thus meeting the demand of Urea in the country at cheap rates. Company is in a position to set up a new plant in the country.availability transport during peak season. 168 . Dumping of fertilizer by the dealers. for the most part orders are assigned from higher authorities. Company can start over sea investment like that one of PAKISTAN MARCO PHOSPHORSE-SA. Opportunities Having a strong financial position company can start production of the new product line. The ideas from the bottom are not welcomed.
Threats Natural gas Farmer’s liquidity Weather conditions Future fertilizer demand Availability of raw material WTO challenges Fertilizer supply in remote areas. Dumping of under priced imported urea in local markets Inconsistent governmental policies Importing urea due to rising demand Changing fertilizer prices Difficult coexistence between public and private fertilizer producer/importer Lack of education in grower community New competitors in the industry Long of gas supplies No availability of railway wagons Unbalanced use of fertilizer 169 .
05 .03 .09 .03 . Growing Sales 4.05 . Wider Product line 10.04 . Centralized authority 5. 16 .20 . ISO Certification Weights .03 . Phenomenal increase in the prices of basic feedstock’s Internal Factor Evaluation (IFE) Matrix KEY INTERNAL FACTORS Internal Strengths 1.05 .06 .06 2.36 .04 .15 .10 . Corporate Culture 8.10 .08 .0= Important 1 = Major Weakness 2 = Minor Weakness 3 = Minor Strength 4 = Major Strength External Factors Evaluation (EFE) Matrix 170 . Dumping of the fertilizer by dealers 2.30 .03 .03 Rating 3 4 3 4 3 3 3 4 4 3 1 2 2 1 2 1 2 2 2 Weighted Score .04 .05 .04 .15 .05 . Strong Financial Position 7.10 . Non availability of transport during peak season 6.05 . Low advertising campaigns 7.0 = Not Important 1. Very frequent transfers 9.10 . Strong Distribution Channel 9. Insuffiency of technical sales officers 3 The administrative problems due to large size of the company 4.08 .12 .05 . Goodwill in market 6.04 . Larger fertilizer Producer 2. Highest Market share 3.10 . Lengthy hierarchy TOTAL 0. Countrywide location of plants 5.06 .30 . Sales force has to face tough time in remote areas 8.61 Internal Weaknesses 1. 15 .09 .
07 company can introduce new products 3. Increasing the customer satisfaction by . Farmers liquidity 4. Increasing sales by implementing the .09 . Instable political situation in country 6.KEY EXTERNAL FACTORS External Opportunities Weights 1. Advertising in international media and . entry of new and well financed organization in fertilizer sector 3.06 .05 the fertilizer demand in country 4.03 . Adding some new units can increase .02 2.12 .08 the production capacity of the plants 2. Natural gas prices 2. Opening new marketing office in .03 . Domestic Competition.05 . Per unit cost in increasing.10 .03 . Increase in prices of raw material .15 .06 .06 .05 9.02 .02 Rating 4 3 2 3 3 1 3 2 3 3 Weighted Score .09 . Availability of gas from Iran can .21 .03 .10 . having strong financial position .05 foreign countries to improve the marketing campaign 5.15 .0= Important 1 = Poor Response 2 = Average Response 3 = Above Average 171 . Weather conditions 10.10 .04 .30 .20 . Availability of raw material 8.04 .74 4 = Superior Response TOTAL 0. reduction in profits 5.03 improving the quality of products 10.10 more chances of export 8. the increasing govt support for meeting . WTO in 2005 (no quota Restriction) . Strong demand of products in future .32 .18 .05 increase the production of plants 1.04 credit policy strategies 7.15 External Threats 3 4 3 2 2 2 2 2 3 1 .05 . WTO challenges 7.06 magazines to increase the market share 6.06 .0 = Not Important 1. Weak economic structure of Pakistan 9.30 .
15 . 2= minor weakness.05 3 3 3 4 3 4 1 2 .05 2 3 3 2 2 2 2 2 .10 2.15 3.30 .Competitive Profile Matrix Sr .10 .20 the quality of FFC product is superior as it has a rating of 4.10 .10 .20 .30 .20 .10 .10 2.40 . 3= minor strength.45 .60 .20 .55 .40 .80 .# 1 2 3 4 5 6 7 8 Critical Success Factors Customer Loyalty Market share Price Competitiveness Management Financial Position Advertising Global Expansion Product Quality Total FFC Engro NFC Weight Rating Score Weight Rating Score Weight Rating Score .40 .10 .10 .40 .10 .05 3 4 3 4 4 3 4 3 .50 The Rating values as follows: 1= major weakness.10 .20 .20 .30 . customer’s loyalty is very high.40 .20 .10 .20 .10 .10 .40 .15 .30 .20 .20 .60 .60 .75 .30 .30 .15 . From the CPM provided above we see that loyalty and the global expansion are the most important critical success factors as indicated by a weight of 0. 4= major strength Interpretations The Competitive Profile Matrix (CPM) identifies the firm’s major competitors and its particular strengths and weaknesses in relation to the sample firm’s strategic position.30 .10 . 172 .
75 -15 -3 +9 +2. Technological Advancement 3. Pakistan largest producer of fertilizer 2.50 173 . Barriers to Entry in New Markets 5.00) = -0.25 +10 +2. Control over Suppliers and Distributor 4. Liquidity Position 4. Quality products 4.5 Directional Vector Coordinates: x-axis: (CA: IS) -1.75 IS Average = ES Average = +2.50 CA Average = -1. Return on Equity Industry Strength (IS) 1.50 + (-3. Demand Variability 4. Leverage Ratios 3.25 -3. Bigger market share Environmental Stability (ES) 1. Political stability 3.50 Y-axis: (FS: ES) 2.SPACE MATRIX Rating Total Average Financial Strength (FS) 1. Net Income 2. Competition Competitive Advantage (CA) 1. Increased Demand of products 3. Highest production 2. Customer Loyalty Conclusion FS Average = +2.25) = +0.00 +3 +3 +2 +2 +3 +2 +2 +2 -4 -3 -2 -3 -3 -1 -2 -2 -2 -7 -1. High Inflation Rate 2.75 + (+2.
50) FS IS CA ES 175 . .(+0.0.50.
The Internal – External Factor (IEF) Matrix: IFE Total weighted Score 4. 176 .0 2.0 2. Thus intensive strategies (market penetration. market development and product development) or integrative strategies (backward integration.74 2.0 2. It can then be divided into 3 major regions that have different strategy implications.0 Interpretations The Internal – External matrix is based on the key dimensions of: the IFE total weighted scores on the x – axis and the EFE total weighted scores on the y – axis.0 1. In the above matrix it can be seen that both the Products in the sections relating to Grow and Build.0 1.0 4.0 EFE Total Weighted Score 3. forward and horizontal integration) can be most favorable.61 3.
So it must follow the following strategies Market development Market penetration Product development Since FFC have also excessive resources Forward integration Horizontal integration 177 .The Grand Strategy Matrix: Rapid Market Growth II Weak Competitive Position I FFC Strong Competitive Position III IV Slow Market Growth Since FFC has rapid market growth and strong competitive position so it lies in 1st Quadrant of GS matrix .
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