Professional Documents
Culture Documents
Contents
Geographical region....................................................................................................................................2
fauji fertilizer...........................................................................................................................................2
Engro fertilizer.........................................................................................................................................7
Fatima Fertilizers.....................................................................................................................................9
History of Fertilizer....................................................................................................................................12
Fertilizer in Pakistan..............................................................................................................................12
First Year After The Formation Of Industry............................................................................................14
Effect Of Nationalization........................................................................................................................15
Swot analysis of fertilizer industry.............................................................................................................19
Strengths...............................................................................................................................................19
Weakness..............................................................................................................................................20
Opportunities........................................................................................................................................20
Threats...................................................................................................................................................20
Choronology Of The Fertilizer Sector In Pakistan......................................................................................21
Opening Of Companies..............................................................................................................................24
Fauji Fertilizer........................................................................................................................................24
Fatima Fertilizer.....................................................................................................................................24
Engro Fertilizer......................................................................................................................................25
Services......................................................................................................................................................26
Fauji Fertlizers.......................................................................................................................................26
Engro Fertilizers.....................................................................................................................................28
Fatima Fertlizers....................................................................................................................................29
Seminars............................................................................................................................................30
Merger.......................................................................................................................................................32
Fatima Fertiizers:...................................................................................................................................32
Fauji Fertlizers:..................................................................................................................................34
Fatima fertilizers 2019...........................................................................................................................34
Labour Or Union:......................................................................................................................................35
Fauji fertilizers union protest:................................................................................................................35
Running head: The analysis of fertilizer industry 3
Geographical region
Registered office
Production plants
Karachi office
Marketing division
North zone Lahore Trade Centre, 11 Sharah-e-Aiwan-e-Tijarat Lahore, Punjab Central zone Ali Maskan,
Sahiwal Region 77-B, Canal Colony, Off Farid Town Road, Sahiwal, Punjab
Running head: The analysis of fertilizer industry 5
Sarghodha Region House No. 1, Bilal Park, Muradabad Colony, University Road, Sargodha, Punjab
Bahawalpur Region House No. 39-A, Tipu Shaheed Road, Model Town A, Bahawalpur,
D. G. Khan Region House No.3, Khyaban-e-Sarwar, Main Multan Road, Dera Ghazi Khan, Punjab
R.Y. Khan Region 37-A, Ali Block, Abbasia Town, Rahim Yar Khan, Punjab
Vehari Region House No. 48, Quaid e Azam Block, Ludden Road, Tariq Bin Ziyad Colony, Vehari,
Punjab
Sukkur Region House No. 64-A, Sindhi Muslim Co-operative Housing Society, Airport Road, Sukkur,
Sindh
Nawabshah Region House No. A-11, Housing Society, Near Thalassemia Hospital, Nawabshah, Sindh
Sukkur region 7 20
Running head: The analysis of fertilizer industry 7
(Source: https://www.ffc.com.pk/investors-relations/annual-reports/ )
1. Head Office 7th & 8th Floor, Harbor Front Building, Marine Drive, Block 4, Clifton, Karachi
4. Sale zone-south 6th Floor, State Life Building, Thandi Sarak, Hyderabad
Sale zone-central 3rd Floor, Mehr Fatima Tower, Opp. Highcourt, Old Bahawalpur Road, Multan
5. Sale zone -north 19-A, 4th Floor, Ali Block, New Garden Town, Lahor
Engro Fertilizers Limited, Engro Ware House, By-Pass Road, Sharifabad, Bahawalpur.
Mobile: 0300-8686356
2. Nadeem Sajjad
3. Abid Ziauddin
3662 1389
Plant Site
Mukhtar Garh, Sadiqabad, Distt. Rahim Yar Khan, Pakistan Tel: 068 – 5951000 Fax: 068 – 5951166
PERFORMANCE
INDICATOR
Total work force LA1 900 849 849 896 856
Total rate of employee LA7 NIL NIL 5.30 7.7% 5.3%
turnover
Running head: The analysis of fertilizer industry 10
Lost timme injuries and LA7 NIL NIL NIL NIL NIL
illness rate
Total number of facalities LA10 108547 26.054 NIL NIL NIL
Man hours of training LA13 15% 19% 26404 11,872 31,038
per year
Female staff head office EC7 100% 100% 26,404 17% 22.5%
Running head: The analysis of fertilizer industry 11
Exports
The company belongs to a mixed group, which is operating fertilizer plants under the name of Pakarab
Fertilizers Limited & Fatima Fertilizers Company Limited as well as sugar & textile industries. The
directors of the company have good market reputation and sound financial worth.
The company had always fulfilled its business commitments and stressed on maintaining quality
standards that have substantially enhanced export/import business. The operations of the company are
ISO 9001:2000 certified and certified with GMP in year 2005 for export of molasses. Due to good
reputation in international market and healthy relationships with foreign investors, Reliance Commodities
Pvt. Ltd. has been one of the leading exporters of molasses from Pakistan. It mainly exports molasses to
Europe.
Reliance Commodities Pvt. Ltd has performed very well in the export business of molasses. In the recent
The Company has its own state-of-the-art storage terminal at the Oil Installations Area in Keamari,
History of Fertilizer
Fertilizer in Pakistan
The fertilizer industry is an indispensable piece of Pakistan's economy. The Pakistani fertilizer industry
delivers, imports and appropriates different kinds of composts. The National Fertilizer Corporation
(NFC), an administration partnership stayed for a large portion of Pakistan's history as the biggest
producer of composts.
After the parcel of the sub-mainland, the Food and Agricultural association (FAO) entered the scene
shaping a concurrence with the Government of Pakistan. This brought about the inception of Rapid Soil
Fertility Survey and Population of Fertilizers venture in 1958. The end from these examinations was that
the Pakistani soil is exceptionally lacking in Nitrogen substance and in this manner more accentuation
ought to be set on Urea utilization. Besides they likewise presumed that our agribusiness yield is 1/3 rd of
our potential.
Ayub Khan's green transformation underlined on the compost segment in the Public Sector. The NFC set
up Pakistan's first compost plant in 1958. The principal private area plant was set up by Exxon at Dharki
in 1965 at an expense of $43 million. This was trailed by Fauji Fertilizer in 1977 and Dawood Hercules
later on. The NFC claimed and worked six assembling units that represented the parity.
Until 1986, the manure business was exceptionally managed. The administration fixed costs and the
productivity of the makers was topped at 20% of ROE. The directed condition smothered private part
interest in the manure business, prompting an augmenting request supply hole that must be crossed over
Urea costs were deregulated in 1986. In any case, this didn't help the producers essentially as urea cost
increments were not enormous enough to counterbalance the misfortune acquired on selling exorbitant
imported urea at lower costs in the neighborhood advertise. By 1991, urea imports had ascended to
584,900 tons, roughly 27% of introduced limit. Imports were making harm the nearby business, but on
the other hand were influencing the nation's remote trade holds. In 1991 the administration started a
manure arrangement which conceded uncommon motivating forces for setting up new undertakings and
extensions.
Multi year expense occasion from date of beginning of business creation for new undertakings
In the event that value controls are forced by the administration, costs are to be set in such a way,
The Fertilizer Policy of 1991 demonstrated to be useful to the manure organizations as well as to the
compost business overall. With a significant info material being sponsored, the manure organizations
extended intensely. Engro Chemicals and FFC responded by extending their creation limits and verifying
Running head: The analysis of fertilizer industry 14
10 years understanding (finishing 2003) which assurance feedgas supply at concessional paces of Rs.
9.75/kilo cubic feet (kcf). Engro additionally profited the assessment occasion while FFC decided not to
do as such. In 1993, Engro set up another plant to twofold its ability to 600,000 tons and FFC likewise got
another plant of 635,000 tons in 1992. This expanded neighborhood creation diminished our exorbitant
The partition of East Pakistan was a gigantic fiasco for the nation. Be that as it may, it didn't have
so much unfriendly consequences for the compost business. The explanations behind not been influenced
In any case, whatever the issue was, it was confronting the money related crunch on the grounds that,
80% of the riches was in East Pakistan. This was one reason that this industry couldn't develop.
The other explanation was low request in light of the fact that the compost which was being utilized
Around then, there was three primary organizations in this industry to be specific, Dawood
Hercules (framed in 1968), national Gas and Fertilizer (1962) and Esson (current Engro,
framed in 1965). Among them, Dawood Hercules confronted a few misfortunes however in various
Effect Of Nationalization
In spite of the fact that this industry was available at the hour of nationalization, however this industry did
Running head: The analysis of fertilizer industry 15
not get nationalized in light of the fact that organizations around then nor were more in numbers, not
huge.
Along these lines, the nationalization procedure which began from 1972, couldn't have sway on
Products of fertilizers
1. Urea
7. Sulfate of Potash
8. Zinc Sulfate
Urea: More than 90% of the world's generation is bound for use as a nitrogen-discharge compost. Urea
has the most noteworthy nitrogen substance of all strong nitrogenous composts in like manner use
(46.7%)
Di-Ammonium Phosphate (DAP): It contains 46% P2O5 and 18% N. It is water solvent. It is a decent
wellspring of P manure for all harvests. Great hotspot for issue soils. In general, it suits to about 90% soil
Calcium ammonium nitrate (CAN) contain 27 % N and 20 % of ground limestone. This has a quick just
as changeless impact. The granulation of this manure guarantees a fast and accurate dosing
.Ammonium Sulfate (AS): (NH4)2SO4, is an inorganic salt. It is utilized to a great extent as a counterfeit
compost for antacid soils. It brings down the pH parity of the dirt, while contributing basic nitrogen for
plant development.
Running head: The analysis of fertilizer industry 16
Single Super Phosphate: Superphosphate is a manure delivered by the activity of focused sulfuric
Nitro phosphate (NP): It gives 22% nitrogen, and 20% phosphorus. Nitrogen is an essential supplement
that truly causes plants "to develop". Phosphorus is an essential supplement that empowers establishing,
Sulfate of Potash: Potassium sulfate (K2SO4)) is a non-combustible white crystalline salt which is
dissolvable in water. This concoction is usually utilized in composts, giving both potassium and Sulfu
BRANDS
3. Dawood Hercules
Complete EMPLOYMENT
Direct business:
4139 individuals/day
By implication work:
Agribusiness is the backbone of Pakistan's economy. It represents 24 percent of the GDP and utilizes 48.4
complete Exports :
Nitrogenous Fertilizers:
Engro UREA is a trusted, high-grade manure which is reasonable for all yields on all kinds of
soils. Engro Urea is a brilliant wellspring of Nitrogen for most by far developed soils of
Pakistan.
Phosphatic Fertilizers
Engro DAP: contains 46% P2O5 and 18% N. It is a decent wellspring of P compost focrops. It is
a similarly decent source on issue soils. On a general premise it suits to about 90% soils of the
nation.
Engro Zorawar: is one of the most elevated evaluation phosphatic manures. It is acidic in
response over 90% is water dissolvable. It is a valuable manure for all yields on all dirts of
Pakistan and produces incredible outcomes on antacid soils, because of its acidic
Engro Phosphate: is darker shaded mono ammonium phosphate with 11% nitrogen and 52%
Mixed Fertilizers
Engro Zarkhez: is homogenously granulated compost which boosts harvest yield by giving
adjusted nourishment to a wide assortment of yields through the uniform accessibility of
Nitrogen, Phosphorous and Potassium. Manures have low dampness content, high smash
quality; 2mm-4mm granule size and free streaming nature - traits which guarantee phenomenal
dealing with and application qualities.
Engro NP: It gives 22% nitrogen, and 20% phosphorus. ECPL went in NP business in 2005 to
Zingro: Zinc Sulfate, a profoundly viable, fundamentally targets Zinc inadequacy in yield like
Rice, Potato, Maize, Sugar stick, Wheat, Cotton, vegetables and natural products. Zingro
Sone Urea: most broadly utilized compost in the nation. Manure is white in shading, free
streaming, promptly dissolvable in water and both contain 46% Nitrogen. On account of its high
Sona DAP: is the most focused phosphatic compost containing 46% P2O5 and 18% Nitrogen. It
is the broadly utilized phosphatic compost on the planet just as Pakistan. The dissolvability of
DAP is over 95%. Its nitrogen to phosphoris proportion ( 1 : 2.5 ) makes it a perfect compost, to
Sona SOP: This manure is a significant wellspring of Potash, which is a quality supplement for
generation of harvests particularly foods grown from the ground. Potash improves the
Bubber Sher: The Company's important movement is to deliver urea compost. The Company
Nitro Phosphate
Urea
Nitro Phosphate
Zinc Sulfate
Strengths
1. Demand is overwhelming in light of the fact that, being a horticulture nation and because of
expanding mindfulness about the fair utilization of manure, interest for the compost will
increment.
4. All organizations in the business have built up a very much arranged system field distribution
5. The players working in this part are monetarily solid and they can begin generation of new
product offering. Including some new unit can improve the generation limit of the plants.
Weakness
1. Black market and the demand is high which causes the farmers to pay more than the actual price.
2. Demand of the fertlizers are high by the plant capacity is not high .
4. Farmers are less educated which causes problem in the use of correct ratio of fertilizer.
Opportunities
1. If the quality of the product is good customers will be more attracted towards the product hence
2. As there is no restriction by WHO so the exports would result a good impact over the country
economy
3. Government is supporting the fertilizer industry as we are an agriculture country this is our
identity
4. As demand is high as compare to supply so having more plant with more capacity will increase
its sale .
Threats
1. Prices of gas and petrol increases at a certain extent.
2. Bio fertilizer is the major threat as it is much cheaper then the fertlizers.
4. Imported fertlizers with less price then local fertilizer will becme a major problem.
Running head: The analysis of fertilizer industry 21
capital of 1000m to manage the existing fertilizers factories and to establish the new one.
1976 Capacity of LCFL was increased.
1978 NGFF is renamed pak arab fertilizer after 48% stock were sold to government of abu
dubai
1980 Pakistan Saudi fertilizer was introduced.
1982 Esso Pakistan Fertilizer Company Limited (EPFC) is joined and intended to deliver urea
fertilizer .
1986 Government regulates the price of nitrogenous fertilizer.
1989 Fertilizer policy maker will provide increment and bonus for the fresh investment in the
sector
1990 Esso(Exxon) wants to sell 75% of its holding in EPFC. Engro Chemicals Pakistan limit is
formed
Running head: The analysis of fertilizer industry 22
1993 FFC once again came upfront and put another urea manufacturing facility at Goth
Macchhi to meet the on going growth demand. The new plant originate commercial
production
1994 FFC has been ranked 5th in KSE
1997 International finance corporation signed an agreement to provide loan to ENGRO
fertilizer Pakistan
1998 ENGRO invested large part of investment in renovation of its plants
1999 Onces again FFC came again forward and put up another urea manufacturing facility at
Opening Of Companies
Fauji Fertilizer
Fauji Fertilizer Company Limited (FFCL), is a recorded organization on the stock exchenage, joined in
1978. It was a joint endeavor between Fauji Foundation Pakistan and M/S Haldor Topsoe A/S Denmark.
Fauji Foundation holds the greater part shares (44.35%) and has the board control of the organization.
At Goth Machhi, in District Rahim Yar Khan, FFC works the biggest compost creating complex in
Pakistan. Plant I, authorized in 1982, presently has an updated limit of 695,000 metric tons for every
Running head: The analysis of fertilizer industry 23
annum. Plant II, authorized in 1993, has the limit of 635,000 metric tons for every annum. They are
among the biggest single train urea plants on the planet. The securing of the Pak Saudi plant at Mirpur
Mathelo (60 km away in District Ghotki) in 2002, presently known as Plant III, added another 574,000
metric tons to the yearly limit, which was moved up to 718,000 metric tons in 2008. The consolidated
creation limit of FFCL is presently more than 2 million metric tons for every annum.
FFC, alongside Fauji Foundation, supported Fauji Jordan Fertilizer Company (FJFC) in 1993 and keeps
on being a significant investor in Fauji Fertilizer Bin Qasim Limited (FFBL), the new name of FJFC since
2003. FFBL is the sole producer of DAP and Urea (Granular) in Pakistan. FFC is playing out the joint
promoting and circulation of Urea and DAP under the 'Sona' brand name.
Fatima Fertilizer
Fatima Fertilizer Company Limited was consolidated on December 24, 2003, as a joint endeavor between
two significant business bunches in Pakistan to be specific, Fatima Group and Arif Habib Group.
The manure complex is a completely incorporated generation office, equipped for delivering two
moderate items, i.e., Ammonia and Nitric Acid and four last items which are Urea, Calcium Ammonium
Nitrate (CAN), Nitro Phosphate (NP) and Nitrogen Phosphorous Potassium (NPK) at Sadiqabad, Rahim
Yar Khan.
The Complex has a 56MW hostage power plant notwithstanding off-destinations and utilities. The
Complex has been designated 110 MMCFD of gas from the committed Mari Gas fields.
Establishment stone was laid on April 26, 2006 by the then Prime Minister of Pakistan. The development
of the Complex started in March 2007 and is housed on 950 sections of land of land. The Complex, when
Engro Fertilizer
Our story starts with one organization's ambitious choice to endeavor ahead and contribute when another
had bowed out. In 1957, Pak Stanvac – an Esso/Mobil joint endeavor – discovered immense stores
wealthy in flammable gas in Mari while seeking after suitable oil investigation in Sind. With Pak Stanvac
concentrated only on oil investigation, the disclosure moved the impulse to Esso which chose to
contribute on the gigantic mechanical capability of Mari gas field. Esso proposed foundation of a
mammoth urea plant in Daharki, around ten miles from the Mari gas fields, which would utilize gaseous
petrol delivered as its essential crude material to turn out urea manure.
Chats with the Government of Pakistan proved to be fruitful in 1964, and an understanding was marked
permitting Esso to set up a urea plant with a yearly limit of 173,000 tons. Esso acquired cutting edge
configuration; financially attempted offices; and a profoundly recognized pool of specialized ability to
guarantee a smooth beginning up. Absolute venture made was US$ 46M – the single biggest remote
interest in Pakistan to date at that point. The plant began generation on 4 December 1968 – a couple of
months late and with under 10 % over keep running on the first spending plan.
To support deals, an undeniable showcasing association was set up which attempted agronomic projects
to teach ranchers of Pakistan. As the country's originally marked compost maker, the Company
modernized conventional cultivating practices and lift homestead yields, straightforwardly affecting the
personal satisfaction for ranchers and their families, and for the country on the loose. Rancher instruction
projects expanded utilization of manures in Pakistan, clearing path for Company's marked urea called
Services
Fauji Fertlizers
Farm Advisory Services:
Fauji Fertilizer Company Limited has been giving farm cautioning organizations to the developing system
all through Pakistan since 1981, for extending the agribusiness age when in doubt and the farmers' pay
explicitly. Our relationship in mission for its national obligation and great responsibility stays in contact
with farmers and Agricultural IThe Company is giving quality property cautioning organizations
wherever all through the country through its 5 Farm Advisory Centers and Regional Agri. Organizations
Officers. Property Advisory Centers are arranged at Hassan Abdal, Sahiwal, Multan, Bahawalpur and
Sukkur.
Each center has a gathering of four Agricultural Experts, giving different admonition organizations
through yield showings, field days, farmer get-togethers, crop courses and property visits. All of the
centers are totally furnished with present day complex electronic Soil and Water Testing Laboratories and
front line expansion gear. Likewise, FFC has moreover settled a micronutrient and plant tissue assessment
lab at Farm Advisory Center, Sahiwal having Atomic Absorption Spectrophotometer and other indicative
instruments. Soil testing is a significant gadget to spread reasonable and balanced use of substance
fertilizers and to perceive soil issues. Soil/water tests are accumulated from farmers' fields and separated
in the examination offices. Fertilizer recommendations and recuperation reports are made dependent on
soil assessment and passed on to the cultivators for the reasonable use of excrement and to recoup the
earth. The soil/water testing and micronutrient assessment office is offered free of cost. Other than these
five property cautioning centers, we have Agri. Organizations Officers, spread wherever all through the
country and widening these organizations in their different locales.
To further fortify our admonition organizations and energize farmers, we similarly disseminate yield,
vegetables and regular items freebees despite agro-grams, distributions and flyers containing latest
information as for age advancements of harvests, vegetables and natural items created in Pakistan. For a
more grounded direct association and helpful course of farmers, we disseminate Newsletter – Zari Report
in Urdu on quarterly reason. This contains season express information regarding crops, natural items,
vegetables, improved agronomic practices and articles on agrarian issues.
To improve the fertilizer use viability and to secure perfect reap yields, an "Excrement Guide Book" and
"Manure Recommendation Book" has in like manner been appropriated containing total information on
various fertilizers open in Pakistan, their application systems and their money related use.
FFC has moreover gotten the sensible methodology of broadcasting crop documentaries on PTV before
the start of each planting time of critical yields. In these documentaries all of the fragments of collect age
are verified with sufficient elaboration. Cotton, wheat, sugarcane and rice documentaries can be seen on
Kashtkar Desk of our site www.ffc.com.pk
Running head: The analysis of fertilizer industry 26
We ask our farmers to get enlisted on our mailing list by sending a requesting recorded as a printed
version or through email and by visiting our Farm Advisory Centers/Regional working environments
arranged all through the country to get copies of our appropriated material free of cost. SMS on current
agribusiness issues are also sent to farmers on the mailing list.
For extra information or country cautioning organizations, farmers can call at our Toll Free FARMER
HELPLINE NUMBER 0800-00332 or visit any of our nearest Farm Advisory Center or Regional
Officenstitutions to guarantee proficient exchange of present day rural innovation in a compelling
manner.
Technical Services
Fauji Fertilizer Company Limited services are now available for the Chemical Process Industry based
upon its dedicated team of engineering specialists with rich experience. We provide services in following
areas:
Electrical Maintenance
Instrument Maintenance
Safety Management
Plant Consultancy
Our specialists have many years of rich experience of three plant developments and two new plants,
while in-house building of different vitality proficiency at our three plants. This incorporates itemized
building from a BEDP (Basic Engineering Design Package) for Debottlenecking (DBN) of our current
plants from our procedure licensors M/s Saipem Italy for urea plant and M/s Haldor Topsoe for our
Ammonia Plant). This point by point building included total plot and funneling plans, channeling
Running head: The analysis of fertilizer industry 27
isometrics, hardware mechanical structure for RFQs and requesting, and furthermore development
In addition, we offer procedure and just as task building administrations for plant improvement extends in
Engro Fertilizers
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.
Morals and Integrity We do mind how results are accomplished and will exhibit legitimate and moral
conduct in the entirety of our exercises. Picking the course of most noteworthy uprightness is our aim and
we will build up and keep up the most noteworthy expert and individual benchmarks. A well-established
We will oversee and use assets and activities so that the wellbeing and soundness of our kin, neighbors,
clients and guests is guaranteed. We accept our wellbeing, wellbeing and natural obligations stretch out
Our People:
Running head: The analysis of fertilizer industry 28
We strongly believe in the dignity and value of people. We must consistently treat each other with
respect and strive to create an organizational environment in which individuals are fairly treated,
encouraged and empowered to contribute, grow and develop themselves and help to develop each other.
We accept that a fruitful business makes a lot greater financial effect and incentive in the network, which
smaller people any charitable commitment. Subsequently, at Engro, feasible business improvement is to
be secured in duty to connect with key partners in the network and society.
Fatima Fertlizers
Technical Services Team:
We have a group of exceptionally qualified and experienced Technical Services Officers, serving the
cultivating network all through the nation. The group is outfitted with the most recent logical learning,
refreshed time to time, about harvest generation and compost the executives rehearses and adjusted
manure use to reestablish soil richness and improve homestead yields. Specialized group uses best in
class strategies and devices to instruct the cultivating network for improving their insight to improve
harvest yields, ranch salary and gainfulness. The group has a nearby contact with the Government and
private research organizations, seed and pesticide organizations for everyday reports on new items and
Ranchers are consistently reached by the Technical field staff through different available resources. The
essential motivation behind gathering ranchers is to instruct them on harvest and compost the board to get
Running head: The analysis of fertilizer industry 29
greatest yield. This instructive program is kept running on all around arranged exercises. Ranchers are
Seminars:
For mass correspondence of our messages, classes are sorted out in every region. Specialized
administrations staff, manures vendors and deals group is engaged with this action. Ranchers from inside
the domain are welcome to visit. Workshops are organized before the planting period of each yield.
Ranchers are evaluated on the most recent harvest the executives procedures, manure necessities and its
application techniques to get greatest advantage and yield. Normally 2-3 workshops are masterminded in
Farmers meetings:
Other than classes, little ranchers gatherings are additionally masterminded. This aides in giving
appropriate consideration to a gathering of ranchers, teach them and to tune in to their worries. These
gatherings are held beginning from the planting season till the consummation of compost application to
the harvests.
Our specialized field staff pays visits to individual homesteads. Nitty gritty discourses are made to
address different cultivating issues. Fields are visited, issues are recognized and arrangements are
proposed. Individual ranch visits furnish a chance to adequately cooperate with the individual rancher,
break down homestead issues and recommend therapeutic measures at the spot.
Manure assumes a significant job in improving harvest yields and keeping up soil fruitfulness. It
contributes more than 50 % towards yields, gave a reasonable mix is applied at appropriate time. Manure
exhibits are spread out at ranchers' field to teach and persuade the ranchers for adjusted compost use.
Running head: The analysis of fertilizer industry 30
Field days are held at different yield development stages and at reap to demonstrate the impact of adjusted
compost use.
Research trials:
We have a close liaison and interaction with the government educational & research institutes. Research
trials on fertilizer use efficiency, application timing, methods of application and requirements of new
cultivars are planned, discussed with the scientists and laid out at the research stations. The results are
Team Training:
echnical trainings are arranged regularly to update the team with the latest knowledge and innovations in
agriculture. Highly qualified scientists from various educational & research institutes are invited to impart
these trainings This helps in improving technical skills of the team for effective farmers education.
Fatima Fertilizers Ltd. has built up Fatima Biological Laboratory close to Fatima Sugar Mills at Sanawan,
Kot Addu. Creepy crawly predators (Trichogramma and Chrysoperla carneae) are mass increased in the
research center and are then provided/conveyed to the producers for discharge in the field. Trichogramma
is an egg parasitoid which devastates the eggs of sugarcane borers, maize and sorghum borers, vegetable
vermin and various moths. Chrysopa is a predator and preys on numerous creepy crawlies like sugarcane
Pyrilla, Thrips, Aphids, vermin and White Fly. It is named as Aphid Lion by the researchers. These
predators can be utilized to control creepy crawly irritations of different harvests, similar to, sugarcane,
cotton, maize, sorghum, vegetables and citrus. Again the exertion goes for the decrease in pesticide use,
control bugs naturally and limits ecological contamination. Natural vermin control is the main option of
pesticides for irritation control in harvests and plantations. This strategy for bug control is savvy, simple
Merger
Fatima Fertiizers:
The Dawood Hercules Corporation is escaping the manure business, having reported that it is wanting to
sell its compost producing auxiliary – at, up 'til now, an unsure value – to equal Pakarab Fertilizers. The
unexpected declaration came by means of an announcement discharged to the Karachi Stock Exchange on
Monday.
The Dawood Hercules Corporation is a holding organization that has a few different business interests –
incorporating a 38% stake in the Engro Corporation. Dawood Hercules Fertilizers is its just completely
claimed auxiliary, however the worry has contributed less and less to the gathering's benefits each year.
Pakarab Fertilizers is a generally little compost producer situated in southern Punjab, mutually claimed by
the Arif Habib Corporation and the Fatima Group. Both the Fatima Group and the Arif Habib Corporation
have stakes in bigger compost producers, including Fatima Fertilizers. The move is probably going to
Dawood Hercules Fertilizers has the ability to create around 456,000 tons of urea, about 9% of the
nation's absolute introduced urea limit. Be that as it may, the organization has just a 3% piece of the
overall industry in the general urea showcase in the nation, inferable from steady plant shutdowns.
The organization is situated in focal Punjab, near Lahore. The area has truly been deliberately invaluable,
enabling the plant speedy access to business sectors in Pakistan's rural heartland. In any case, its land area
has additionally cost the organization vigorously. As of late, as Pakistan comes up short on gas, the
organization has had the hardship of being the most remote away from Sindh – where the primary
Therefore, Dawood Hercules has endured lopsidedly. It has endured the longest blackouts of gas supply
when contrasted with some other manure producer. Sources acquainted with the issue say that the
organization's administration has everything except abandoned any expectation of being provided with
Running head: The analysis of fertilizer industry 32
gas, after Sui Northern Gas Pipelines administrators said that providing gas to Dawood Hercules viably
It is indistinct why Pakarab Fertilizers is keen on purchasing Dawood Hercules. "Possibly they have some
undisclosed data about having the option to verify a gas supply soon," said Naveed Tehsin, an exploration
examiner at JS Global Capital, a speculation bank. JS doesn't cover either Pakarab Fertilizers or Dawood
Sources inside the compost part have indicated some political variables. Fatima Fertilizers has had among
minimal number of plant shutdowns among other compost makers in the nation. Numerous in the
compost part ascribe the marvel to close ties between the dominant part investors of the Fatima Group
and the Arif Habib Corporation, and senior individuals from the present organization.
Akram Durrani, official executive of Dawood Hercules Fertilizers, stays tight-lipped about the issue. He
will not remark on why the gathering had chosen to sell its manure business; nor on what the conceivable
That has not prevented a few examiners from wandering an informed theory. Farid Aliani of BMA
Capital figures that the arrangement is probably not going to incorporate the 102 million portions of the
Hub Power Company that the Dawood Hercules Corporation as of now carries on its compost backup's
books. The gathering's administrator Hussain Dawood has made it plentifully certain that he anticipates
Aliani likewise takes note of that Dawood Hercules Corporation at present conveys its compost backup
on its books at Rs16 per share. It is hazy what the deal cost will be for Dawood Hercules Fertilizers,
however the market is unmistakably anticipating an addition. Offers in the Dawood Hercules Corporation
were up by a most extreme 5% in exchanging on the Karachi Stock Exchange on Monday, shutting at
Fauji Fertlizers:
ISLAMABAD, Jan 27: The Competition Commission of Pakistan (CCP) on Wednesday gave contingent
NOC to the offering by Fauji Fertilizer Company Limited (FFC) for proposed securing of 75 percent to
79.87 percent portions of Agritech Limited (some time ago Pak American Fertilizers Limited). The FFC
had presented its pre-merger application in August, 2010, for procurement of 75 to 79.87 percent portions
The commission assessed the case and gave the contingent NOC for the proposed merger with the
condition that FFC expected to record its responsibility inside about a month from the date of issuance of
The CCP has requested of the FFC to look after "tara" and "sona" marks independently for a long time
and there will be a cost top on cost increment of "tara" item by FFC for a time of one year.
February 20, 2019 (MLN): Pakistan Credit Rating Agency (PACRA) has kept up element appraisals of
Fatima Fertilizers Company Limited at 'AA-' for long haul and 'A1+' for present moment, with a steady
viewpoint conjecture.
The appraisals reflect solid business profile of the organization on the back of broadened item blend.
Secure stockpile of gas from Mari field together with lower feed stock cost (under compost arrangement -
2001 up till 2021), speaks to intrinsic qualities of the organization contrasted with its friends. Generally
speaking limit usage kept on surpassing 100% (already: 90% – 98%) in view of alkali debottlenecking.
In perspective on stopping of urea endowment plot, the industry has expanded the costs of composts also.
GIDC related improvements are relied upon to take shape through the span of time, of which the effect
Peering toward for a productive plan of action, Fatima Fertilizer has proposed merger with its entirely
possessed auxiliary – Fatimafert alongside the securing of generation and working plants of its partner –
Running head: The analysis of fertilizer industry 34
Pakarab Fertilizer Limited including Ammonia, Urea, Nitric Acid, NP, CAN and clean advancement
Post-securing, Fatima Fertilizer will in general become a conspicuous provider of CAN and NP with the
Fatima Group has additionally wandered an endeavor to verify gas supply to Pakarab by laying gas
pipeline. The utilizing is relied upon to go up yet would stay lined up with the hazard profile of the
The evaluations are needy upon the organization's capacity to assimilate obligation profile of the
Labour Or Union:
work and organized dissent exhibit before every one of the three entryways of the organization on
Thursday, against non-dispensing of money reward.According to reports, many specialists of FFC drove
by their association office-bearers Ghulam Sarwar Abbasi, Comrade Bhooral Chijjan and others in the
wake of boycotting their work accumulated outside each of the three doors of the organization and
Association pioneers told writers that the FFC will undoubtedly pay five percent benefit as money
remunerate each year to its laborers, according to the administration choice. In any case, laborers of other
compost organizations were at that point paid the money remunerate however the administration of FFC
was hesitant to compensating its laborers, they said including that the net five percent of FFC was more
Occupant Manager Saeed Ahmed had stored the sum in a private bank office and sitting tight for
They pledged to proceed with the dissent till the time the sum was not scattered among the laborers.
The fights, which are not yet a strike activity, have been sorted out by the Engro Fertilizer Contract
Workers Union.
The fights, which are not yet a strike activity, have been sorted out by the Engro Fertilizer Contract
Workers Union.
SUKKUR: Hundreds of provisional laborers of Engro Fertilizer – an entirely possessed backup of the
Engro Corporation – have been fighting outside the organization's biggest assembling unit in Daharki,
requesting brings up in pay and advantages, which they guarantee that the administration has been
denying them.
The fights, which are not yet a strike activity, have been sorted out by the Engro Fertilizer Contract
Workers Union, which cases it presented a sanction of requests to the organization's administration yet
had not yet gotten any reaction on the issue. The requests incorporated a raise in compensations, rewards
"We stayed with sitting tight for the's reaction on the contract of requests for a half year. Just when the
organization sat idle, we began dissenting," Shahzado Panhyar, the general secretary of the worker's
Upwards of 800 of the 930 provisional laborers fight outside the processing plant doors each morning
before getting down to business, which proposes that the fights have not disturbed the organization's
assembling limit. Engro Fertilizer as of late finished and started creation at its $1.1 billion single-train
The matter of raising pay, be that as it may, is by all accounts somewhat more entangled than may show
up from the outset, in any case. As per Amanul Haq, a representative for Engro Corporation, the
organization doesn't utilize the laborers legitimately but instead honors an agreement to another firm that
at that point enlists and gives laborers. Agreements with that work supply firm are normally for a couple
of years.
It is hazy if the organization would have the option to renegotiate its agreement with the work supply
organization, given that the latest agreement ended up viable on January 1 of this current year.
There is by all accounts some disagreement about how much the laborers at Engro's plant in Daharki are
paid. The trade guild guarantees that they get paid somewhere in the range of Rs7,500 and Rs10,000
every month, in light of their work involvement, while the organization's administration asserts that the
number is somewhere in the range of Rs9,000 and Rs15,000 every month. (Neither one of the figures
incorporates benefits.)
"There are numerous worldwide organizations working in Ghotki and Engro Fertilizer pays the most
The key staying point between the organization's administration and the association seems, by all
accounts, to be the contractor framework. The association asserts that provisional laborers are paid far
less – and have far less advantages – than the customary representatives of the organization. They
guarantee that a portion of their individuals have been on agreement for more than 20 years without
Panhyar said that the association's fights had drawn the consideration of the region organization. He
asserted authorities from the income and work divisions had met with the organization's administration
just as the association, however had not had the option to make an achievement.
Panhyar said his association's fights would proceed until their requests were met. Amanul Haq, the
organization representative, said that the discussions with the association were continuous and
Fatima Fertilizers:
BAHAWALPUR:
Forty workers were offered new contracts after a protest at a fertiliser factory on Tuesday.
Around 150 workers joined the protest outside Fatima Fertilizer Company (FFC) in Rahim Yar Khan
demanding new contracts to the employees, which included the president and general secretary of the
Muhammad Shoban, the FFC ACWU president, told The Express Tribune they had been trying to get a
union for contract workers registered for the past six months.
“The factory has a total workforce of 2,000m out of which only 450 are permanent. The remaining 1,550
workers are on contracts,” he said. “The union was trying to secure permanent employment for these.”
He said the contracts of 40 workers, including himself and the general secretary of the union, ran out on
Monday, after which the factory administration refused to re-new them. “Seeing this situation, we
protested on Monday and decided to take out a large protest on Tuesday. A large number of workers
The protest on Tuesday started at 6am and continued till around noon, when the factory administration
agreed to offer new contracts to the 40 employees. The Pakistan Trade Union Defence Campaign
(PTUDC) Senior Vice Chairman Qamaruz Zaman Khan was amongst those who negotiated with the
factory administration.
Running head: The analysis of fertilizer industry 38
Addressing the protest, Zaman said no compromise was acceptable on the rights of workers. “Registering
a union is a right and the FFC is trying to stop it. The Labour Department must take notice of this,” he
said.
Production Manager Muhammad Asad and Industrial Relations Officer Abdul Majid told The Tribune
that they had accepted the demands of the workers and offered new contracts to them.
The protest was joined by Ghotki Friends Labour Federation President Comrade Bhoral, FFC Employees
Union (Bagging and Loading) CBA Chairman Nawabuddin Lashari, ACWU President Muhammad
Aslam and Fauji Fertilizer Company Employees Union (Bagging and Loading) CBA Comrade Majeed.
Elections:
Engro fertilizers:
Khawaja Iqbal Hassan graduated cum laude from the University of San Francisco with majors in Finance
and Marketing. He started his career with Citibank N.A. in 1980 where he held key positions including
Regional Business Head and Vice President in Saudi Arabia, Turkey and Pakistan. In 1994 Mr. Hassan
founded Global Securities Pakistan Limited and built it into a top tier stockbroking and investment
banking firm that concluded significant Privatisation transactions in Pakistan and became a joint venture
partner of UBS AG. He subsequently founded NIB Bank Limited in 2003 which, in partnership with
Temasek Holdings of Singapore, became a top 10 ranked commercial bank in Pakistan within a period of
4 years.
Mr. Hassan currently serves as a member of the Board of Directors of the State Bank of Pakistan and ICI
Pakistan Limited. He is also a member of the Monetary Policy Committee of Pakistan in addition to
serving as a member of the Board of Trustees of the Karachi Grammar School, the Layton Rehmatullah
Benevolent Trust and The Cardiovascular Foundation. Mr. Hassan has previously served on the Board of
Running head: The analysis of fertilizer industry 39
Directors of the Civil Aviation Authority of Pakistan (CAA), Pakistan Steel Mills, Habib Bank Limited,
National Fullerton Asset Management Company Limited, NIB Bank, the Lahore University of
Management Sciences, Global Securities Limited, Citicorp Investment Bank Pakistan, The Pakistan Fund
Mr. Hassan was awarded the Sitara-i-Imtiaz by the Government of Pakistan for meritorious contribution
to national interests.
Rizwan Diwan
Novatex Limited belongs to G&T group of companies. The G&T group is a leading name in Home
Textiles, Garments, Polyester Textiles and Packaging Resin products in Pakistan. Mr. Rizwan Diwan is a
director in a number of group companies as well as a director in a Joint Venture Company, ThalNova
Power Thar (Pvt) Limited, a 330 MW mine mouth Thar coal based power plant at Tharparkar district.
Mr. Rizwan Diwan has also taught at IBA and holds a Masters Degree in Business Administration from
Muhammad Abdul Aleem is a Fellow Chartered Accountant (FCA) and a Fellow Cost & Management
Accountant (FCMA). He has worked for 16 years in Senior positions with Engro Corporation Ltd and
Esso Singapore. Thereafter, he has worked for another 14 years with British American Tobacco Group
UK (BAT) in Pakistan and Overseas. For over 10 years he served as CEO of BAT operations in
Since 2004, he has served in Senior positions with large Government owned organizations in Pakistan.
His last assignment was as the Managing Director, Pakistan State Oil Company Limited. Currently, he is
the CEO/ Secretary General of Overseas Investors Chambers of Commerce & Industry.
He is also serving on the Boards of Meezan Bank Ltd. and Dawood Hercules Corporation Ltd.
Running head: The analysis of fertilizer industry 40
Abdul Samad is a graduate in Economics from University College London, UK and a Certified Director
of Corporate Governance from the Pakistan Institute of Corporate Governance. He is the CEO of Dawood
Corporation (Private) Limited and Patek (Private) Limited. He is also a Director on the Board of Dawood
Hercules Corporation Limited, The Hub Power Company Limited, Dawood Lawrencepur Limited, Engro
Foods Limited, DH Fertilizers Limited, Tenaga Generasi Limited, and Pebbles (Private) Limited. He is a
member of Young President Organization, Pakistan Chapter. He joined the Engro Board in 2009.
Shahzada Dawood
Shahzada Dawood serves as a Director on the Boards of Dawood Hercules Corporation Ltd, Engro
Corporation Ltd, DH Fertilizers Ltd, Dawood Corporation (Pvt) Ltd, Engro Foods Ltd, Engro Powergen
Ltd, Engro Powergen Qadirpur Ltd, Engro Vopak Terminal Ltd, Pebbles (Pvt) Ltd, Patek (Pvt) Ltd,
Engro Polymer & Chemicals Limited, Sirius (Pvt) Ltd and Tenaga Generasi Ltd. He also serves as a
Director of Dawood Lawrencepur Ltd and Engro Fertilizers Ltd. He is a Trustee of The Dawood
Foundation, which is one of the largest public charitable trusts in Pakistan, supporting education and
health initiatives. He serves as a Member of the Board of Governors of the National Management
Foundation, the sponsoring body of Lahore University of Management Sciences (LUMS). He is an M.Sc.
in Global Textile Marketing from Philadelphia University, USA, and an LLB from Buckingham
University, UK and a Certified Director of Corporate Governance from the Pakistan Institute of Corporate
Muneer Kamal
Muneer Kamal is Chairman of National Bank of Pakistan and Chairman of Karachi Stock Exchange has
over 33 years of extensive experience in banking and financial sector. His career started with Citibank
where, between November 1979 and July 1994, he served locally and internationally on various senior
Running head: The analysis of fertilizer industry 41
positions including his term as Associate Director Singapore Training Centre. During this association, he
also attended a number of training courses I programs in Far East, Middle East and Africa.
Mr. Kamal then joined Faysal Bank Limited as President/CEO and led to spread out its operations from 3
branches to 11and also expanded the balance sheet size from Rs. 3 billion to Rs. 30 billion
The CAC Pakistan Summit will be the best way to open up the agrochemical market in Pakistan and it
will also provide the attendees with the opportunity to gain insights into pesticides, fertilizers, seeds,
pesticide production equipment, plant protection equipment, and agrochemical application technology.
Ratio analysis
Ratio Analysis Of Fatima Fertilizer
LIQUIDITY RATIO
Running head: The analysis of fertilizer industry 42
PROFITABILITY RATIO
SOLVENCY RATIO
LIQUIDITY RATIO
Details % 2018 2017 2016 2015 2014
Current 0.96 0.94 0.91 0.85 0.61
ratio
Quick ratio 0.83 0.93 0.81 0.70 0.65
Account
receivable
turnover
Inventory 8.24 146.07 17.46 17.03 82.75
turnover
PROFITABILITY RATIO
Return on
common
stockholder’s
equity
Earning per 12.92 9.04 9.44 15.27 14.28
share
Return on 9.18 8.17 9.64 17.09 20.99
assets
Payout ratio 68.49 77.47 83.65 77.64 95.57
SOLVENCY RATIO
LIQUIDITY RATIO
Details % 2018 2017 2016 2015 2014
Running head: The analysis of fertilizer industry 44
PROFITABILITY RATIO
SOLVENCY RATIO
quotas and subsidies in a phased manner. It does not however, aim at zero
tariffs. WTO has GATT, GATS and TRIPs as the main agreements. Agreement on
Agriculture and Agreement on Textile and Clothing come under GATT. Pakistan
has been the founding member of GATT 1948 as well as WTO. This study
Pakistan being an agrarian economy is still a net importer of food items. The
Running head: The analysis of fertilizer industry 46
of WTO. The issues in AoA include subsidies, domestic support and market
access. The developing countries and the developed world are at loggerheads
over agriculture. The developing countries require an AoA that is fair just to
meets both ends meet while the developing countries require that they maintain
their status quo to protect their handful of farmers through subsidies and
and animal species and traditional pharmaceutical and herbal knowledge need to
be registered to take full advantage of them. All valuable export brands like
vegetables.
treatment applies to customs duties, other border duties and charges, rules and
and free trade agreements, on the other hand, are negotiated under a special
exception to the MFN Principle (GATT Article XXIV). Such favourable treatments
b)National Treatment:
The principle of national treatment implies that imported goods will be given
treatment that is no less favourable than that given to domestic goods. This
confidence because investors and traders can plan their investments secure in
the knowledge that market access conditions will not change for the worse. This
is achieved through the bindings of tariff. Tariffs on different products that are
reduced or agreed to in trade negotiations are bound, that is, a country agrees
that it will not levy tariffs at rates higher than those agreed to. As regards
products, while developing countries have bound them for more than 70 percent
d) Transparency:
WTO rules oblige member countries to ensure transparency in their foreign trade
regime.
e) Trade liberalization:
principle is rooted in the belief that the removal or reduction of trade barriers
led growth strategy and as such market access is of vital importance for our
between some members is also eroding our market access. Therefore in order to
maintain current markets and gain new ones for our exportable goods and
services we are dependent on the WTO to get tariff and non tariff barriers
Running head: The analysis of fertilizer industry 49
effectively levels the playing field for competitive suppliers. Pakistan has been
actively engaged in the Doha round of trade talks that were held in November
access for both products and service providers from Pakistan. Since 2001, there
have two more ministerial conferences in Cancun in 2003 and Hong Kong in 2005
respectively. There was a breakdown of talks in the summer of 2006 which led
by the membership led to a partial resumption of the talks in November 2006 and
full resumption since January 2007 after the annual meeting of the World
In order to justify tariffs and quotas countries present different arguments which
are discussed below: Some countries use high tariffs and quotas to give its own
• few goods, rather it should diversify its production base and hence protection is
required to enable diversification into those areas where that country does not
• employment in the country. The defence argument says that a country must
imports are restricted through high tariffs. Protection also becomes important
concentrate on what they can produce best, and then by trading these products
Success in trade is not static. The ability to compete well in particular products
can shift from company to company when the market changes or new
encouraged to adapt gradually and in a relatively painless way. They can focus
on new products, find a new “niche” in their current area or expand into new
areas.
History shows that competitiveness can also shift between whole countries. A
country that may have enjoyed an advantage because of lower labour costs or
Running head: The analysis of fertilizer industry 51
because it had good supplies of some natural resources, could also become
present. And richer governments are more likely to yield to the siren call of
protectionism, for short term political gain through subsidies, complicated red
with outdated, unattractive products. In the end, factories close and jobs are lost
despite the protection and subsidies. If other governments around the world
pursue the same policies, markets contract and world economic activity is
This agreement has undoubtedly created conditions that will restrain further
of the implementation of the agreement Ingco and Winters (1995) predict that for
Running head: The analysis of fertilizer industry 52
manufacturing exports from OECD) are expected to rise by 3.8 percent in wheat,
2.3 percent in coarse grains and 1.8 percent in sugar, while it is expected that
price of rice will decline by 0.9 percent and cotton by 1.2 percent in 2002. There
However, these losses will be offset by potential efficiency gains from improved
spices, vegetables, fruits, flowers, and plants, where the DCs have agreed to
international standards [See Azhar (1995)] .In net terms, the implementation of
about US$ 27.2 million (in 1992 prices). The estimated gains increase to US$ 43
million if potential induced investment and increasing returns in the sector are
Incentives
Pretty much every administration has reported motivators and money related
PML-N
•It multiplied agribusiness credits to over Rs1 trillion in the previous five years at
Budget 2017-18
•The government enhanced the agriculture credit target to Rs1,001 billion from
•Mark-up on loan disbursement was slashed to 9.9% from 14-15% for small
farmers with landholding up to 12.5 acres. Zarai Taraqiati Bank Limited, National
phosphate (DAP) sales with reduction in general sales tax to Rs100 per bag from
•Urea price was maintained at Rs1,400 per bag through the grant of subsidy in
terms of reduced sales tax. Total subsidy was estimated at Rs11.6 billion.
•Customs duty and sales tax was reduced to zero for five years on the import of
Budget 2016-17
•Total agriculture credit limit was increased to Rs700 billion from Rs600 billion
•DAP price was slashed to Rs2,500 per bag from Rs2,800 whereas urea price was
•Federal and provincial governments would equally share the cost of subsidy on
urea and DAP amounting to Rs36 billion and Rs10 billion respectively.
•Off-peak tariff for agriculture tube wells came down to Rs5.35 per unit from
Rs8.85 per unit, which was estimated to put a burden of Rs27 billion on the
national exchequer.
Budget 2015-16
•Total agriculture credit limit was raised to Rs600 billion from Rs500 billion. The
•Then prime minister Nawaz Sharif announced the Kissan Package worth Rs341
•The scheme brought immediate cash grants for rice and cotton growers,
12.5 acres.
•It also included collateral guarantees for loans and tax breaks for dairy, poultry
•The Kissan Package brought down all taxes on the import of modern agriculture
machinery to 9% from 43%. Sales tax was reduced to 7% from 17%, while
Budget 2014-15
•A credit guarantee scheme for small and marginalised farmers was introduced
to encourage banks to provide financing to those who previously did not get
loans offered to the farmers having up to five acres of irrigated and 10 acres of
non-irrigated land.
•A crop loan insurance scheme worth Rs2.5 billion was introduced for the farmers
that covered the risks posed by natural calamities, climate change and plant
diseases.
Running head: The analysis of fertilizer industry 56
•An amount of Rs300 million was allocated for the Livestock Insurance Scheme
•Livestock insurance in the case of calamity and disease was launched which was
Budget 2013-14
•The government set aside Rs240.4 billion in subsidy for energy companies and
essential commodities like wheat, sugar, rice and other agriculture produce.
•The government increased allocation for the Pakistan Agriculture Storage and
Services Corporation (Passco) to Rs6 billion for keeping wheat reserves and
•An amount of Rs6 billion was set aside for the Utility Stores Corporation
(source : https://tribune.com.pk/story/1693973/2-agriculture-sector-continues-
get-incentives/)
Press Release
Karachi, August 26, 2019: VIS Credit Rating Company Limited (VIS) has
denotes high credit quality coupled with strong protection factors. Moreover, risk
factors may vary slightly with possible changes in the economy. The short-term
Running head: The analysis of fertilizer industry 57
rating of ‘A-1’ denotes high certainty of timely payment, liquidity factors are
assigned rating is stable. The previous rating action was announced on December
22, 2017.
The assigned ratings take into account strong sponsorship profile as majority of
the shareholding of the company is held by Fatima Group (FG) and Arif Habib
Group (AHG) through their group companies and individual representatives. The
decline in lever
age indicators on a timeline basis. The ratings draw comfort from access to
concessionary gas, which provides a cushion against the increasing gas prices.
FATIMA registered notable growth in net sales as the impact of a slight decline in
fertilizer off-take was offset by higher selling prices. NP remained the leading
gross profits was also led by strengthening of margins on the back of higher
metrics including cash flows in relation to total debt have largely remained within
acquisition of major fertilizer plants of Pakarab, which may take some time to
complete. Fatimafert and Pakarab currently have negative gross margins, which
may put a drag on profitability in initial years; the management however expects
the deal to add value to the company from the benefits of synergies, cost
efficiencies and better use of brands. The post-deal impact on financial profile of
Source : http://jcrvis.com.pk/prFile.aspx?mRatingId=35859
Press Release
VIS Credit Rating Company Assigns Initial Ratings to Fauji Fertilizer Bin Qasim
Limited
Karachi, August 27, 2019: VIS Credit Rating Company Limited (VIS) has assigned
initial long term entity rating of ‘A+’ (Single A) and short term rating of ‘A-1’ (A-
One) to Fauji Fertilizer Bin Qasim Limited (FFBL). Long term rating of ‘A+’
denotes good credit quality and adequate protection factors; risk factors may
Running head: The analysis of fertilizer industry 59
vary with possible changes in the economy. The short term rating of ‘A-1’
signifies high certainty of timely payment; liquidity factors are excellent and
Ammonium Phosphate (DAP) fertilizer. It is also the only producer and marketer
of granular form UREA (in contrast to widely marketed ‘prilled’ variant). FFBL
enjoys leadership in DAP fertilizers with market share of 30.7% and is Pakistan’s
4th largest producer of UREA. Fauji Foundation (FF) and its subsidiary Fauji
Fertilizer Company Limited (FFC) hold majority shareholding in FFBL. Both FFC
and FFBL market their products under one umbrella brand ‘Sona’, which has wide
pronounced than UREA sales resulting in a seasonal liquidity cycle for the
Company.
The assigned ratings incorporate strong financial profile and business acumen of
FFBL’s major sponsors -FFC and FF. Rating also reflect FFBL’s leading market
position in DAP business, diversified business risk profile and strong corporate
governance infrastructure. Ratings also take into account existing financial profile
financial profile over the rating horizon. Ratings remain dependent on timely
investments while reprofiling of long-term debt in line with projected cash flows
Dividends from power sector investments are expected to constitute the bulk of
Source : http://jcrvis.com.pk/prFile.aspx?mRatingId=35863
Running head: The analysis of fertilizer industry 61
900000
800000 Chart Title
700000
600000
500000 diammonium
400000 phosphate production?
300000
Year Value % Change
200000
2017 808,808 2.22%
100000
2016 791,256 3.03%
2015 0 1 2 3 768,004
4 5 9.51%
2014 701,297 -5.65%
2013 743,293 15.27%
2012 644,844 -1.92%
2011 657,438 -0.30%
2010 659,430
tones year value20.90%
2009 540,096 14.67%
2008 470,999 32.04%
2007 356,706 -20.82%
year value
2017 808,808
2016 791,256
2015 768,004
2014 701,297
2013 743,293
2012 644,844
2011 657,438
2010 659,430
2009 540,096 https://knoema.com/atlas/Pakistan/topics/Agriculture/Fertilizers-
2008 470,999 Production-Quantity-in-Nutrients/Diammonium-phosphate-production
2007 356,706
Year Value Change %
7000000
6000000
5000000
4000000
Value
3000000 Year
2000000
1000000
0
1 2 3 4 5 6 7 8 9 10 11
Year Value
2017 5,652,392
2016 6,001,191
2015 5,301,793
2014 4,898,634
2013 4,827,796
2012 4,155,271 https://knoema.com/atlas/Pakistan/topics/Agriculture/Fertilizers-
2011 4,901,148 Production-Quantity-in-Nutrients/Diammonium-phosphate-production
2010 5,155,528
2009 5,046,724
2008 4,978,333
2007 4,754,654
Running head: The analysis of fertilizer industry 63