distribution centers and all the companiesin this industr# have developed a wellplanned network feld

Qarehouses toinsure that ertili8ers are available to the armer uninterrupted. /he# also peruse
aninnovative education oriented advertisingpolic# utili8ing print media and road sideadvertisement.
/he ma or part o strengththat all the ertili8er plants are producing atmore than ,)) percent installed
capacit# o utili8ation.

2EA6NE E 45

/he# have more weakness than the othersector o engro pro ects due to thebackward in the
technolog# along with lowresources. /he# are acing such troubleslike demand is increasing da# b# da#
andthe capacit# o plants to produce ertili8ersare getting decrease. =armers have to pa#above than
the stated price because o e!istence o black market and heav#demand. /here is another actor that
wecanHt den# that the low advertisingcampaigns.

OPPORT"NITIE 45

/he pro ect o engro Engro ertili8ers isen o#ing high beneft rom the market and rom the
government as well. As anagriculture countr# it has a great support o govt in ertili8er sector. /here is
no :uotarestriction b# Q/O since ())@ so there ismore opportunit# to e!port. Availabilit# o gas rom
1ran can also increase theproduction or industr# and ulfll thedemand.

THREAT 45

%ue to uncertain political situation incountr# govt policies are not consistentregarding
ertili8er industr#. Unstablepolitical condition is also a big threat or ertili8e industr#. A naturalL gas is
main rawmaterial and is suppl# is also a problem. /he uel price is also increasing due to the uel crises
in the international market. /hebiggest threat or the engro ertili8er is thatimported ertili8ers are
available at cheapprices than local ertili8ers. 7o the armer

gives more important rather than the localproducts.

Build Branded food business to improve quality of life by offeringtasty, affordable and highly nutritional
products to our consumers whilemaximizing stake holders' valu

Aims at transforming the company within the next five years into firsta national food industry giant,
then into a regional force and finally intoa global player
Our diversified businesses represent our immense growth potential to generate opportunities for
creating and sustaining value for our stakeholders.

President & CEO Engro Corporation

Asad Umar, President & CEO Engro Corporation at Engro Excellence Award's launching ceremony.

Hussain Dawood holds the seat of the corporation, Mr. Dawood is also the chairman of Dawood
Group Pakistan.

Apart from the chairmanship, Asad Umar held the position of CEO & President at Engro Corporation
from 2004–2012. He resigned on April 18, 2012 to join Pakistan's emerging political party Pakistan
Tehreek-e-Insaf (Movement of Justice).Pakistan Tehreek-e-Insaf is set to form a provincil government in
Khyber-Pukhtonkhwa→ province of Pakistan.

Muhammad Aliuddin Ansari has been appointed as the new CEO & President of Engro Corporation.

Board of Directors

Engro's Board of Directors is responsible for the overall supervision of the company.
Hussain Dawood (Chairman)

Muhammad Aliuddin Ansari (President & CEO)

Afnan Ahsan (Director)

Sarfaraz Ahmed Rehman (Director)

Shahzada Dawood (Director)

Khawaja Iqbal Hassan (Director)

Shahid Hamid Pracha (Director)

Shabbir Hashmi (Director)

Ruhail Mohammed (Director)

Khalid Siraj Subhani (Director)

Abdul Samad Dawood (Director)

Saad Raja (Director)

Engro Corporation

Engro Corporation is one of the leading Pakistani business conglomerates with stakes in the fertilizer,
food, power generation, petrochemicals, automation and terminal storage industries. Having had
undergone an employee led buyout in 1992 it has expanded phenomenal in the past two decades.

As a holding company its subsidiaries include:

Engro Fertilizers Limited

Engro Foods Limited

Engro Polymers and Chemicals Limited

Engro Eximp Private Limited

Engro PowerGen Limited

Engro Vopak Limited

History

Founding days

In 1957, the search for oil by Pak Stanvac, an Esso/Mobil joint venture led to the discovery of the Mari
Gas field near Daharki – a small, remote area in Upper Sindh province at the time. Esso proposed the
establishment of a urea plant in that area which led to a fertilizer plant agreement signed in 1964. In the
subsequent year, Esso Pakistan Fertilizer Company Limited was incorporated, with 75% of the shares
owned by Esso and 25% by the general public.

The construction of a urea plant commenced at Daharki in 1966 and production began in 1968. At US
$43 million with an annual production capacity of 173,000 tons, it was the single largest foreign
investment by a multinational corporation in Pakistan at the time.

A full-fledged marketing organization was established which undertook agronomic programs to educate
the farmers of Pakistan. As the nation’s first fertilizer brand, Engro (then Esso) helped modernize
traditional farming practices to boost farm yields, directly impacting the quality of life not only for
farmers and their families, but for the nation at large. As a result of these efforts, consumption of
fertilizers increased in Pakistan, paving the way for the Company’s branded urea called “Engro”, an
acronym for “Energy for Growth”.

As part of an international name change program, Esso became Exxon in 1978 and the Company was
renamed Exxon Chemical Pakistan Limited. The Company continued to prosper as it relentlessly pursued
productivity gains and strived to attain professional excellence.

In 1991, Exxon decided to divest its fertilizer business on a global basis. The employees of Exxon
Chemical Pakistan Limited, in partnership with leading international and local financial institutions,
bought out Exxon’s 75% equity. This was at the time and perhaps still is the most successful employee
buy-out in the corporate history of Pakistan. Renamed as Engro Chemical Pakistan Limited, the Company
has gone from strength to strength, reflected in its consistent financial performance, growth of the core
fertilizer business, and diversification into other businesses.

Along the way, a major milestone in plant capacity upgrade coincided with the employee led buy-out;
innovatively optimizing our resources, Engro relocated fertilizer manufacturing plants from the UK and
US to its Daharki plant site – an international first.

Esso to Exxon Limited

In 1978, it was decided to rename the company from Esso fertilizer company limited to Exxon Chemical
Pakistan Limited.
In 1991, Exxon decided to divest its fertilizer business on a global basis. The employees of Exxon
Chemical Pakistan Limited, in partnership with leading international and local financial institutions,
bought out Exxon’s 75% equity. This was at the time and perhaps still is the most successful employee
buy-out in the corporate history of Pakistan. Renamed as Engro Chemical Pakistan Limited, the Company
has gone from strength to strength, reflected in its consistent financial performance, growth of the core
fertilizer business, and diversification into other businesses.

As Engro Chemicals (further expansions)

It was year 1997 when Engro Chemical Pakistan limited decided to establish Engro Vopak Terminal
Limited on 50/50 partnership basis between Engro and Royal Vopack of Netherlands, for handling bulk
liquid chemical storage at Port Qasim Karachi. In that same year Engro Asahi polymer Chemicals limited
was established in a result of joint venture between Mitsubishi Corporation and Asahi for the
manufacturing and marketing of PVC resin.

Recent history

The 21st century for Engro Corporation has thus far proved to be the most successful era in the total life
of Engro, from then onwards Engro has only faced success and never looked back, 2003 was the year of
the establishment of Engro EXIMP, after which in 2005 Engro decided to diversify their business more by
venturing into the food business by establishing Engro Foods Limited, which is now experiencing a great
success and competing now with international brands like Nestlé and Wall's Ice Cream.[citation needed]

Engro also ventured into the power generation business by setting up Engro Energy Limited in 2006,
which later on was renamed as "Engro Powergen Limited" in 2008. It was established with the basic aim
to play Engro's part to tackle the energy crisis in the country.

In year 2007 Engro Asahi polymer divested its share in joint venture with Mitsubishi and the company
renamed as Engro Polymer and Chemicals Limited.

In 2010, keeping in view the immense diversification of Engro Chemical Pakistan Limited, it was decided
to rename the company as Engro Corporation as the holding company.

Health Safety & Environment

We will manage and utilize resources and operations in such a way that the safety and health of our
people, neighbors, customers, and visitors is ensured. We believe our safety, health and environmental
responsibilities extend beyond protection and enhancement of our own facilities

Ethics and Integrity

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

Our people

We strongly believe in the dignity and value of our people. We must consistently treat each other with
respect and strive to create an organizational environment in which individuals are fairly treated,
encouraged and empowered to contribute, grow and develop themselves and help to develop each
other. We do not tolerate any form of harassment or discrimination.

Innovation & Risk Taking

Success requires us to continually strive to produce breakthrough ideas that result in improved solutions
and services. We encourage challenges to the status quo and seek organizational environments in which
ideas are generated, nurtured and developed. Engro appreciates employees for well thought out risks
taken in all realms of business, and for the results achieved due to them, acknowledging the fact that
not all risks will result in success.

Community & Society

We believe that a successful business creates much bigger economic impact and value in the
community, which dwarfs any philanthropic contribution. Hence, sustainable business development is to
be anchored in commitment to engage with key stakeholders in the community and society.
Engro Chemical

Engro Chemical Pakistan Limited then started a journey of venturing into other sectors including foods,
energy, industrial control and automation, PVC resin manufacturing and marketing, and chemical
terminal and storage.

In 2009 plans were announced of demerging the fertilizer business into an independent operating
company. The expansion and growth in the company necessitated a change in the way the company
operated and conducted business. Keeping in view the operations of multi category businesses,
expansion strategy and growth vision, the management decided that the various businesses would be
better served if the Company was converted to a holding company. As a result it was decided to
demerge the fertilizer business and establish a holding company structure to manage the affairs of
various businesses.

Engro Fertilizers
Engro Fertilizers Limited was incorporated in June 2009 to manage the fertilizer business post demerger.
The demerger required the approval of the High Court of Sindh, which was granted on December 9,
2009 after obtaining the requisite approvals from the creditors and shareholders of the Company. The
demerger became effective from January 1, 2010. Consequently, all fertilizer business assets and
liabilities have been transferred to Engro Fertilizers Limited against the issue of shares to the Company.

To reflect the change in the scope of mandate and scale of operations, Engro Chemical Pakistan Limited
has been renamed as ‘Engro Corporation Limited’ with effect from January 1, 2010. Engro Corp, as the
holding company is responsible for the long term vision of the company, overseeing the performance of
the subsidiaries and affiliates, allocation of capital, management of talent, leadership development, HR
guiding policies, leadership role in public relations and CSR activities, control structures, legal and IT
support.

Engro Corp

Engro Corp will maintain a lean structure with a focused scope, allowing maximum empowerment to the
subsidiaries and affiliates to drive the operations of their respective organizations.

At Engro, we support our leadership culture through unique systems and policies which ensure open
communication, foster an environment of employee and partner privacy, and guarantee the well being
and safety of our employees.

Our core values form the basis of everything we do at Engro; from formal decision making to how we
conduct our business to spot awards and recognition. At Engro we never forget what we stand for.
Following are our core values:
Engro food Pakistan

the local flavor with a global vision

Engro Foods is among the biggest and fastest growing conglomerates in Pakistan with a vision to cater
to local needs with products conforming to global standards.

Highly passionate about providing millions of people across the length and breadth of Pakistan and
beyond with the ultimate brand experience, our product portfolio comprises some of the country's
biggest and best selling brands including Olper's, Olper's Lite, Olfrute, O'more, Omung, Omung Lassi and
Tarang.

But whether it is our thick, creamy all-purpose milk, scrumptious ice-cream high on nutrition content or
refreshing range of fruity beverages, our approach remains largely the same as we strive to keep
product innovation at the forefront of our guiding philosophy and consumer satisfaction at the heart of
our operational strategy.

Awards achieved by Engro corp

Eman won Pakistan’s InfoComm Technology (ICT) Award (Karachi, Oct 2011)

Eman won Merit Award in the regional Asia Pacific InfoComm Technology Award (APICTA) (Thailand,
Nov 2011)
Engro Corporation being named “The most preferred graduate employers in Pakistan, 2011” by engage
consulting

Engro Vopak tops the list at the Vopak Asia Awards 2010

Engro Rupiya Certificates declared the best transaction award of 2010 by CFA Association of Pakistan

Engro Corp awarded the KSE top 10 companies award for the year 2008-2009

Engro Zarkhez won the coveted title of “Brands of the Year” award

Engro Corp won the Investor Relations Award by CFA Association of Pakistan

Corporate offices of Engro Corporation & Engro Fertilizers received “Green Office” Certifications-
becoming one of the only three companies in Pakistan to receive Green Office Diploma

Engro Polymer & Chemicals won Best Annual Report- 2nd in chemical sector by ICAP

Engro Corp and Engro Polymer & Chemicals won “living the global compact” Responsible business award
2010-11 by Global Compact

Engro Corp won the Best Sustainability Report Award 2010 followed by Merit Certificates for reporting
under GRI framework by ICAP

Environmental Analysis

Asteriois G Kefalas in his book, Global business strategy: A system approach, explains that how and why
an environment is concerned to a nature of business and business organization.

THE MACROENVIRONMENT

Macro environment is actually a big picture of the surrounding environment in which a business and
organization operates. Understanding the macro environment of a country or the world requires
understanding the relationship between humans and their natural habitat. The resources and the
carrying capacities of the natural habitat affect both the quantitative aspects (such as population
volume and growth rates) and the cultural aspects (such as social, political, and economic behaviours) of
human life.
MICROENVIRONMENT

The microenvironment has been defined as a particular organization's external business environment.
Studying the micro business environment helps manager to set the organization’s objectives by
matching the organization’s internal strengths and weaknesses with the uncontrollable probabilities
within that specific business environment.

Engro Corporation limited operates in that part of the world where dramatic and unexpected changes
are always expected that requires the organization’s analysts and mangers to keep an extreme eye on
what’s going on. Here i am going to present different analysis to help understand the environment in
which Engro corporation exist.

PESTLE

Pestle analysis categorically involves the factors which are directly concerned to the macro environment
and they are Political, economical, social, technological, legal and ecological.

POLITICAL

Pakistan is currently suffering from political turmoil. On one hand where it is struggling against the issue
of terrorism which involves the international community and international politics on the other hand it’s
facing internal political instability. Because of the continuous military interference into government and
politics the Political forces, in the past, have not had enough chance to practice fundamental democratic
values. In result both political forces and the people of Pakistan have not yet been able to achieve the
political maturity which can be seen in the western, American and other democracy dominant societies.
The overall situation is further resulting into the empowerment of unreliable and corrupt executives
who are usually responsible of making economic and social policies. That is why Pakistan is not achieving
required economic and social goals yet. The policy makers usually involve in taking kick backs and
turning policies into their personal interest, after 9/11 the war against terror has put a great impact on
Pakistan and is actually resulting into the destruction of peace of the country. International communities
and investors are hesitating to invest in Pakistan. Even though the tax policy, employment laws,
environmental regulations, trade restrictions and tariff regulations have been formulated but
implementation on these policies is not being conducted in mannered way. Also there is a need of
brining new economic and agriculture reforms.Especialy the agriculture tax reforms where the per unit
land tax price has been a big issue over the times. Employment laws have been formulated according to
the international standards but child labour issue needs to be addressed on war grounds. Being a
member of WTO Pakistan supports the free market and free trade ideology but in fact no such ‘’free
market’’ is in practice in the modern world. Every country has some trade barriers to protect local
industry, so does Pakistan. An anti dumping duty ordinance is in place to protect local industry that also
encourages local industrialists to invest further. The tariff rates and policies are being reviewed over the
time. Having all these positive indications Pakistan still needs to modernize the trade and industrial
sectors by developing transparent policies. In the current time the civil society of Pakistan seems to be
awakening to break the political and feudal status quo that will help Pakistan, in future, to develop a
civilized political culture.

When we analyze the Engro Corporation having the above environment in backgrounds and beyond we
need to give considerable attention to the Engro’s internal strengths and weaknesses. Here i would talk
about Engros’s internal strengths in comparison of that particular environment. On one hand Engro has
tried to keep away from being politically attached to that atmosphere and has concentrated properly on
its business which has helped it to become not polluted professional organization. On the other hand
Engro has been complying with the country’s law and cultural values. Because of the strong internal
culture and commercialism company has strengthen itself to compete with various kinds of political
circumstances.

ECONOMICAL

Pakistan’s economic growth rate is currently 5.5% which was 8% once in 2005 but huge shortage of
electricity and political instability has affected the growth rate. Economic growth of Pakistan can be seen
through gross domestic purchasing power parity, which was estimated to be $454.2 billion in 2008.
Official exchange rate was approximately $160.9 billion, while real growth rate in 2008 GDP of Pakistan,
as per statistical data was found to be 4.7 percent. GDP per capita income was $2,600 in 2008. Interest
rates are slightly high in Pakistan because of IMF conditional bailout programme and were rose by 15%
in 2009.purcasing power of Pakistanis has been shaken up by 13% of inflation rate. Wage rates,
minimum wages and 60 hours per week working time in manufacturing sector and 48 hours in service
sectors are very suitable for large and international businesses. High percentage of unemployment is
resulting to be suitable for cheap labour provision but it increases the inflation rate that affects business
directly on the other hand. Country’s cost of living is lower comparing to developed countries. Engro
Corporation is directly affected by these factors. Engro has tried to take benefit from availability of
cheap labour but interest rates are putting a negative effect on engro’s internal economy because it has
financing relations with most banks in Pakistan also with some international banks like HSBC,Barclays
etc . Inflation rate is also affecting engro especially engro foods which involves direct relation with public
purchasing power on broad levels. On the other side the global economy is facing a downturn in recent
times. The economic recession has rolled largest economies in the world. Engro needs to have a deep
look on this factor in order to develop strategies for international perspective.
SOCIAL

Pakistan is an agricultural country, 70% population living in rural areas, 98% population is Muslim. 42%
population under 15 years of age only 4% over 64 years of age .2% per year population growth rate, 65%
literacy rate. The geographic area of country is known to be one of oldest civilizations in the world. But
because of poor economic condition the awareness about health consciousness, safety and global
warming has not been very significant but now the awareness ratio on these issues is rising rapidly in
the society. Increasing literacy rate especially in IT and engineering sectors have changed the career
attitudes in the country. A strong business and industry culture is developing itself influencing by
different factors. Engro Corporation is directly serving to 96%of the country’s population. A large portion
is covered by engro fertilizer. Engro foods is taking health consciousness into the consideration for its
product development. Engro is building Pakistan’s first green power house to tackle the global warming
issue. International health and safety standards have been achieved by Engro within all its industries
especially in chemical industry. Providing employment on large scale Engro has shared the change in
career attitudes.

TECHNOLOGICAL

In the modern age technology is advancing and improving every day. These advances are not only
influencing corporate businesses but equally influencing the societies as a whole by bringing the change
into social behaviours. On the corporate level as the organizations adopting the horizontal and vertical
integrating method, Getting as more as possible technological strength is a powerful weapon to achieve
the corporative integrity. Pakistan as a developing country needs technological advancement in every
sector of economy ranging from electricity generation, road construction, port and airport
developments, data base structuring, information technology railway, food industry, oil and gas sector,
logistics and many more. Government is privatizing and out sourcing mega projects and multi industry
sectors to save costs and to gain financial balance. Especially in oil and energy sectors Pakistan needs
huge investments. These requirements and circumstances are actually a massive potential market for
the organizations which have well-built technological resources. Engro takes advantage from this
availability and has offered in sourcing to the government in multi sectors like currently working on a
power house project with the collaboration of government. The project is called ‘’Thar coal power
project’’ which is spouse to produce 1200MW electricity for the country using coal reserves.

ENVIRONMENTAL

Being a developing country Pakistan is considered to be one of those countries where the ecological and
environmental aspect needs special concentration. Pakistan has six metropolitan cities which have
heavy industry manufacturing textile, leather products, fertilizers, steel goods etc. Most of the country’s
vehicles run on diesel and petrol. Small level industry like brick making and small steel melting units
leave a big amount of carbondyoxide in the air. Clean drinking water is also a big issue in the country.
Handling and recycling wastage from manufacturing sector is most critical aspect of the ecological
concerns in Pakistan. On the other hand diseases due to dirty water and improper food are also a
challenge for the country. All above issues are influencing Pakistan both economically and socially. But
on the same time there is a huge potential for investments from eco friendly organizations to compete
against these challenges. Implementation on environmental regulations is on high demand from the
global society as well. Engro being part in this environment is playing its role by internally implementing
the related laws and standards like , process safety, workforce safety, workplace health, food safety, risk
assessment, and environmental performance. In the field engro is building Pakistan’s first green power
house in Sindh province and looks ahead for many other projects.

LEGAL

Having been developed with in business laws and taxation laws according to the international standard
legal situatations in Pakistan are at satisfactory level. Recent business legislations have helped the
country to be suitable for international investments. No restrictions on joint ventures and revision of tax
ordinance 2001-2002 are the latest achievements towards investment friendly society. But overall small
tax ‘’base’’ and unsatisfactory tax collection system along with economic and political situations present
a negative impact on country’s economy. Also implementation on import/export laws concerning duty
and custom tax is significantly lacking. But now as the modern educated youth is entering into the
country’s judicial and legislative institutions the overall circumstances are getting better and better. Also
the awareness about economic globalization in the general population is increasing day by day that will
soon reflect into the more betterment of legislation and legalization circumstances. To protect the local
fertilizer industry government has passed a law of imposing anti-dumping duty on fertilizer’s import and
has allowed the industry to import fertilizer plant equipments without paying any tax . Beyond the
facility of taxation policy and joint venture legalization in Pakistan Engro has taken a step of being part
of an international business joint venture that is called ‘’Avanceon’’ Advanced Automation LP, a leading
provider of technology solutions to manufacturers In north US, Innovative Automation & Engineering,
FZ, a leading Dubai based engineering & system integration company serving Middle East and African Oil
& Gas, Water, Waste Water, Infrastructure, and Manufacturing industries; and Engro Innovative
Automation Pvt. Ltd., a global provider of industrial automation and engineering support products and
services announced a joint venture under the name of

AVANCEON.
FORMULATION STRATEGY

In formulating a strategy, the strategic decision makers of Engro Fertilizers must analyze conditions
internal to the organization. An internal analysis leads to a realistic company profile, which is the
determination of a firm's strategic competencies and weaknesses. The development of a

Company profile in four-step process:

 Managers audit and examine key aspects of the business's operation, seeking to target key areas for
further assessment.

 Managers evaluating the firm's status on these factors by comparing their current condition with past
abilities of the firm.

 Managers seek some comparative basis - linked to key industry or product/market conditions -
against which to more accurately determine whether the company's condition on a particular factor
represents a potential strength or weakness.

 In internal analysis is to provide the results, or company profile, as input into the strategic
management process.

An internal organizational analysis evaluates all relevant factors in an organization in order to determine
its strengths and weaknesses. Some of the areas that Engro Fertilizers should analyze include the
following:

1. Financial position. The financial position of a business plays a crucial role in determining what it can or
cannot do in the future.

2. Research and development capability. Engro Fertilizers pays continuous importance to research as it
ventures into new and upgraded products continuously.
A culture of continuous innovation is stressed on and engagement surveys carried out to find out further
input from the employees.

There are a couple of government institutions like NFDC, who carry out research. Outsourcing through
research agencies is also quite common and field resources, such as getting information from the
farmers is also given importance to.

3. Organizational structure. Organizational structure can either help or hinder an organization in

achieving its objectives. In case of Engro Fertilizers, the organizational structure is a mixture of
horizontal and vertical importance. The informal communication helps information to flow in a strong
way. Other practices like ‘whistle blowing’ and feedback emails like the ‘Speak Out’ continuously decides
what actions should be taken by the Committee and the areas where it should improve.

No major restructuring has taken place since the time of its inception and Engro Fertilizers continues to
evolve as a matrix organization that enjoys the benefits of formal and informal organizational practices.

4. Human resources. All the activities of an organization are significantly influenced by the quality and
quantity of its human resources. As discussed above, the Human Resources at Engro, just like all of its
subsidiaries are greatly valued and much effort put to improve it.

5. Condition of facilities and equipment. The condition of an organization's facilities and equipment can
either enhance or hinder its competitiveness.

Internal analysis is difficult and challenging. The checklists provided above can be helpful in determining
specific strengths and weaknesses in the functional areas of business.

CORPORATE STRATEGY

Corporate strategy is based on Engro’s core competence – Engro is the pioneer of fertilizer in Pakistan,
they have a strong Urea business model and to complement it they have built the most efficient and
largest single train urea plant in World – Enven, having a capacity of 1.3 mn tonnes and an investment of
USD 1.05 bn, by the far the largest private sector industrial investment in Pakistan.

Other key strengths of the company include efficient management, company’s ability to deliver and a
strong profitable group of subsidiaries. As the CFO, Naz Khan while commenting on the current debt
position of the company said ““Engro Corporation has many subsidiaries, and there is no possibility of a
default on payments whatsoever”.

As the company continued its growth in other sectors and in fertilizer sector building the most efficient
and largest single train urea plant in World – Enven, catching up the capacity in fertilizer that is required
by the current and future demand in Pakistan, their direction for future growth is outside Pakistan
considering the fact that export of fertilizer is banned in Pakistan. Mr. Ali, Manager Market
Analysis & Planning told us that the new direction for the company is to develop an off-shore plant
based on the company’s expertise in fertilizer sector catering to the fertilizer demand in other countries.
He said that currently we are on the feasibility stage of our off-shore plant. Besides that he said that
an agricultural-led growth strategy is a step in the right direction. Even though the contribution of
agriculture sector to the country’s GDP has declined from 65% in 1990’s to around

21% at present, it is still a significant contributor to the GDP, employing 44 percent of the workforce.

BUSINESS LEVEL STRATEGY

Two of Engro Fertilizers Limited core products have been recognized for extraordinary performance in
the respective sectors of macronutrients (Engro Urea) and micronutrients (Zingro). Engro Fertilizers
Limited is a subsidiary of Engro Corporation Limited (formerly Engro Chemical Pakistan Limited).

Engro Urea, the oldest and most trusted brand of high-grade nitrogenous fertilizer in Pakistan, is Engro
Fertilizers’ premier macro nutrient product. Zingro, introduced in 2004, has been developed as a high-
grade zinc fertilizer targeting zinc deficiencies in crops such as rice, resulting in greater yield and an
improved end-product.

This recognition for Engro Urea and Zingro is a testimony to the strength of Engro Fertilizers’ brands, as
well as the strength of the brand teams’ resolve and hard work put into making Engro a premier brand
owner in the fertilizer industry. With this Award, Engro Fertilizers Limited has joined the ranks of several
of Pakistan’s premier brand owners, including the likes of previous winners such as Toyota, TCS, P&G,
Standard Chartered, Pizza Hut, Marriot, K&N’s, Berger Robbialac, Castrol, Bonanza, Dadex, Dunkin
Donuts, Head & Shoulders, Ideas, Intel, Inbox, and RoohAfza, among others.

The ‘Brands of the Year Award’ is the first-of-its-kind hallmark for Brand Recognition in Pakistan, and
aim to highlight and encourage the best brands in the Country. It is an annual endeavor, resulting from
the joint efforts of The Exhibitor Group, Pakistan Standards and Quality Control Authority (PSQCA) and
the Intellectual Property Organization (IPO-Pakistan).The awards have garnered significant international
acclaim, and are conducted and duly endorsed by Brands Bureau International Limited London – UK &
Brands University.

SWOT ANALYSIS OF ENGRO FOODS

STRENGTH:-
Organizational strength is skills and capabilities that enable an organization to conceive of and
implement its strengths. The strength of ENGRO FOODS has strong and well established brands. They
are very lucky in this sense they have most experienced sponsors from market. The most important
strength of this industry is its proactive management who is operating well and they have also the
strong and vast distribution network al over the Pakistan.

WEAKNESSESS:-

Organization weaknesses skills and capabilities that do not enable an organization to choose and
implement strategies that support its mission. The firs and the basic weakness of engro foods that
create alarming situation for them that is little experience in FMCG, sector as nestle has been practicing
in this sector for the last three decades .They also need significant investment in research and
development to make the brands best and from others. They have little experience in powered segment
which plant to inter by 2013.engro foods project is unable to fulfill demand of local powder milk
product.

OPPORTUNITIES:-

Organization opportunities are areas those may generate higher performance EF has huge potential in
liquid dairy products. They have large and vast system of powered segment and it has the threat for its
competitor. It has significant growth potential in North American meat market.

THREATS:-

Organization threats are areas that increase the difficulty in organizations. The biggest threat for EF is
the competitors. Risk of price war in ice cream as walls enjoying higher economics on scales. Nestlé’s
huge investment in powered segment could be a entry barriers. The other important threat for this
company is due to high return prospects, other players may also try to enter in this segment.
SWOT ANALYSIS OF ENGRO CHEMICALS

STRENGTH:-

Different strategies call on different skills and capabilities. It has strong performance management.
Management parties and principals inherited from EXXON chemical USA after the management buyout
in 1991.They are also enjoying the subsidies of gas pricing during the last 10 years. In the result of this
subsidy they have strong accumulated reserves low gearing will provide the financial strength in
upcoming years.

The most golden part of its strength is this that 50% joint ventures, ENGRO vopak has completed 4 years
of profitable operations. They have not only a strong customer circle but also have product research.
They are also enjoying large market share of engro innovative and chemicals. They also have good
reputation in market by strong brand.

WEAKNESSES:-

Weaknesses is not good for any company’s strength while engro vopak is performing satisfactory
deterioration in operating results of engro SAHI could result in SAHI calling financial support in ECPL.

Engro urea doesn’t command the same market premium as competitors. Fiji fertilizers Sona urea is sold
in Punjab province where engro has strong market in Sindh province only,

OPPORTUNITIES:-
New petrochemical project is helping to improve profitability of engro chemical. Besides this
opportunity they have launched the larger segment of value addition chain for reducing business risk
through this strategy. They have also had an opportunity to merge with their global business to cope
with the competitors. They have potential to innovate and differentiate company’s product for
sustaining a competitive advantages.

THREATS:-

The main threat and problem that occurs when there is a competitive and technological threats are
created.The highlight and major internal factor which will affect the company’s performance that are
size, strength. Cost, revenues and strategy as well as external factors competitive positioning and
industry trade. They are also facing the high inflation rate along with low purchasing power. Most of the
investors are not investing due to the low rate of interest and the uncertain condition in market. They
are also coping with the recessionary period in business cycle. Engro chemical is also facing the increase
in sales tax.

SWOT ANALYSIS OF ENGRO FERTILIZERS

Strength:-

The investors, the players, who are operating in this sector, are financially strong and they can start
production in new product line. By adding some new unit they can enhance the production capacity of
utilization. They have also a well distribution centers and all the companies in this industry have
developed a well planned network field, Warehouses to insure that fertilizers are available to the farmer
uninterrupted. They also peruse an innovative education oriented advertising policy, utilizing print
media and road side advertisement. The major part of strength that all the fertilizer plants are producing
at more than 100 percent installed capacity of utilization.

WEAKNESES:-

They have more weakness than the other sector of engro projects due to the backward in the
technology along with low resources. They are facing such troubles like demand is increasing day by day
and the capacity of plants to produce fertilizers are getting decrease. Farmers have to pay above than
the stated price because of existence of black market and heavy demand. There is another factor that
we can’t deny that the low advertising campaigns.

OPPORTUNITIES:-

The project of engro, Engro fertilizers is enjoying high benefit from the market and from the government
as well. As an agriculture country it has a great support of govt in fertilizer sector. There is no quota
restriction by WTO since 2005, so there is more opportunity to export. Availability of gas from Iran can
also increase the production for industry and fulfill the demand.

THREATS:-

Due to uncertain political situation in country govt policies are not consistent regarding fertilizer
industry. Unstable political condition is also a big threat for fertilize industry. A natural; gas is main raw
material and is supply is also a problem. The fuel price is also increasing due to the fuel crises in the
international market. The biggest threat for the engro fertilizer is that imported fertilizers are available
at cheap prices than local fertilizers. So, the farmer gives more important rather than the local products.
BIBLIOGRAPHY

INFORMATION COLLECTED VIA BOOKS

Annual repoart

Quarterly financial report

Invester’s blog

BY READING INTERVIEW OF CEO OF ENGRO

President & CEO Engro Corporation

INFORMATION COLLECTED VIA INTERNET

Encyclopedia

Wikipedia

Google

Engro corporation

BY READING NEWS PAPER

JUNG & DAWN NEWS PAPER

Table of contents
Contents page no

Introduction……………………………………………………

Engro food…………………………………………………….

Engro chemical………………………………………………..

Engro fertilizer…………………………………………….…

Award achievement……………………………………………

Environmental analysis………………………………………..

Formulation strategy………………………………………….

Corporate strategy…………………………...………………

Business level strategy……………………….……………..

SWOT analysis…………………………………………..…...

Engro food………………………………………………

Engro chemical…………………………………………

Engro fertilizer……………………………………….

BCG Matrix………………………………………………….

Bibliography …………………………………………………