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ding Business Magazine for the last 25 years
ANSAR BURNEY.
FOR THE RECORD
WEB MARKETING TODAY
FAUJLFERTILIZER COMPANY Lid,
PSO: A CHERISHED PAST, A PROMISING
FUTURE
PROGRESSIVE FINANCIAL
CONSULTANCY(Pvt.jLtd.
Company Profile
Fauji Fertilizer Company
Ltd.
Jan-07- 13, 2002
A performance oriented company
Fauji Fertilizer Company Limited (FFC), the largest urea manufacturer in the country,
was incorporated on May 08,1978 as a joint venture between Fauji Foundation,
Pakistan and M/s Haldor Topsoe A/S of Denmark. It was established to fill the
projected gap in demand and indigenous production. Company shares are held by
Fauji Foundation (43%) and various investment companies, financial institutions and
individuals.
‘The Company was listed on Karachi and Lahore Stock Exchanges in 1991 and on
Islamabad Stock Exchange in 1992. Company employees were also allotted shares for
‘motivation and promoting a sense of participation. Based on related criteria of Karachi
‘Stock Exchange, primarily quantum of dividend payout, FFC has been placed in the list
of top 25 companies of Pakistan consecutively for seven years since 1994, topping the
list in 1997.
FFC has many landmarks to its credit. Since commencement of its commercial
production in mid June 1982 til December 2000, the Company has sold 22.89 million
tons of feriizers, This includes 17.79 million tons of Sona urea and 0.52 milion tons
Sona DAP in the domestic markat and 0.39 million tons urea exports to China, Iran,
Philippines, India, Bangladesh, Sri Lanka, Thailand and Tanzania. The remaining 4.19,
million tons include imported fertilizers i.e. urea, DAP, NP, etc. Presently, itis marketing
‘over 2 million tons of fertilizers annually and holds 44% share of the urea market. It has
saved the country around US § 3 billon through import substitution and contributed
almost Rs. 30 billion to the Government by way of taxes, levies, custom duties, excise
duty/ surcharge on gas purchases besides providing employment to hundreds of
individuals.
FFC together with Fauji Foundation from Pakistan and Jordan Phosphate Mines
Company from Jordan sponsored the establishment of a urea/ DAP complex at Port
Qasim, Karachi. FFC-Jordan Fertilizer Company Limited (FJFC) was incorporated in
November 1993 as a public limited company, FFC's shareholding is 30% of the paid up
capital of FJFC. Under an agreement FFC is marketing the entire production of FIFO.
under its own brand name Sona.
FFC has progressed wall from its inception till to-date. Three projects in a span of loss,
than 20 years have been set up each incurring over US$ 300 million is a performance
record unparalleled in the country. Building on its foundations the Company is
confident to take on new challenges. FC's vision for the 21st century is diversification
and establishing projects beyond the territorial limits of the country in collaboration with
World famous international industrial holdings,The manufacturing facilities, located in Goth Machhi near Sadiqabad in Rahimyar Khan
consist of two ammonia’ urea plants with a designed production capacity of 1.33 million,
tons of urea based on natural gas from Mari Gas Fields.
(Over the years, the plants have demonstrated operational excellence which serves as
a reference for the related process technology engineering concerns. Delegations fram
China, Middle East and Far East have visited the Plant site to acquire knowledge for
their investment decisions,
Product quality is accorded high priority and |SO-9002 certification confirms the
‘excellent operational and maintenance skills of the employees and their level of
performance
Great emphasis is placed on safe operations. Many awards of honour from National
Safety Council, U.S.A. reflect strict compliance of plant safety standards,
FFC commenced marketing operations in April 1979 with a pre-production programme
called the Seeding Programme. With the commencement of commercial production in
June 1982, FFC launched its product under the brand name "SONA". Since inception,
fa growth oriented marketing stratogy has been adopted keeping in view future
expansions. FFC operates in all the four provinces of the country and Azad Kashmir.
‘The marketing area has been divided into 3 sales zones, 11 sales regions and 61 sales
districts with a network of over 3,000 well rained dealers. This network is spread over
1400 locations. Due to seasonality of fertilizer consumption, the Company has
established @ network of 120 field warehouses to meet its storage requirements,
Company's sales activities are well supported by planning, distribution and
Warehousing, advertising and sales promotion, finance, adminstrative and farm
agronomic services.
From the very beginning FFC was able to meet the challenges. It was able to market
its entire production and capture the desired market share. Sona urea was accepted by
the farming community and Sona brand was established as a premium brand. With the
start-up ofits plant, the country became not only self sufficient bul also surplus in urea,
FFC exported urea to many countries from 1983-86. However, when local demand
again exceeded production in 1986 the country again started importing urea. FFC once
again came forward and put-up another urea manufacturing facility at Goth Machhi to
meet the growing demand. The new plant commenced commercial production in
March 1993.
‘The Government of Pakistan deregulated the trade and prices of phosphatic fertlizers
in Aug 1993. Subsequent to this decision FC started self imports of these fertlizers
and as a resull timely imports were arranged. Farmers were provided quality product in
bags with guaranteed correct weight. This brought a very positive qualitative change in
the phosphatic fertilizer business,
FFC believes in selling a programme rather than just products. To this end, the
Company has adopted a customer oriented strategy by marketing quality products
backed by efficient and effective support services with emphasis on developing the
market through practical and innovative farmer education. Farmer Advisory Service
with well qualified agronomists was established by the Company in 1981, a year before
the commencement of commercial production. This free of cost and on the spot service
to the farmers Is provided in the form of crop demonstrations, field days, farmer
meetings, group discussions, farm visits and distribution of technical literature in Urdul
‘Sindhi on important crops. The farmers are also provided highly subsidized soil’ water
testing facilities through three laboratories equipped with the state of art equipment and.
computerized recommendation systems. The Company pursues an innovative
education oriented advertising policy utilzing electronic! print media and roadside
advertising, Radio commercials are developed in regional languages.
FFC has conducted four international seminars on core agricultural issues. Through
these seminars which were allended by various local and foreign luminaries, specialrecommendations were developed to address the issues and enhance agri. production,
Fayji Ferilizer Company Ltd. remains committed to continue to play its role in the
dovelopment of agriculture in Pakistan by not only supplying high quality fertlizers but
also technical services to the farmers in the years to come for improving agricultural
productivity and increasing their income.