FFC Report

ACKNOWLEDGEMENTS
“In the Name of Allah most Merciful and Beneficent”
We are very thankful to Almighty Allah who enables us to be able to utilize our abilities as it
is known that all the abilities and skills we have is a Gift of Allah, and Allah gave us the
courage and insight to explore more knowledge to complete what I have started and also our
parents whose prayers always supported us in every task. In making this project comes into
existence. I am guided by our experienced “ma’m Shahzadi Sattar”
We are thankful to her who gave us the opportunity to be able to work on the project and who
helped and guide ushow to overcome the problems regarding my project and He motivated us
to be able to complete this difficult task.
THANKS
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Institute of Banking and Finance

Bahauddin Zakariya University Multan MBA (HRM) 4th
Table of contents
 Introduction
 Company profile
 SWOT Analysis
 Vision Mission
 PESt analysis
 Strategic business units
 BCG Matrix
 Fauji Fertilizer
 Strategies perused by FFC
 Products
 Strategic management in FFC
 Marketing mix
 Major customers
 Strategic leader
 Hofstede’s model
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Fauji Foundation
Introduction
Fauji Foundation (also known as Fauji Group), is amongst the largest business conglomerate
in Pakistan which "Earns To Serve" the interests of ex-servicemen.
o It is basically a Charitable Trust founded in 1954 for the welfare of the ex-
servicemen and their dependents.
o It is incorporated under the Charitable Endowments Act 1890
Company Profile
Back ground
The history of Fauji Foundation dates back to 1945, when a Post War Services
Reconstruction Fund (PWSRF) was established for Indian War Veterans who served the
British Crown during WW-II. At the time of partition (1947) when Pakistan came into being,
the balance fund was transferred to Pakistan in the proportion of its post WW-II veterans. Till
1953, the fund remained in the custody of the civilian Government, when in 1954 it was
transferred to the Army.
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The Army instead of disbursing the balance fund of about Rs 18.2 millions (USD 0.2 million)
among the beneficiaries, invested it in establishing a Textile Mill. Later from the income of
the textile mill, it established first 50 bedded TB hospital at Rawalpindi.
Fauji foundation is proud that from Rs 18.2 million in 1953, it today runs more than 18
industries, the income from which is utilized to serve about 9 million beneficiaries (5 % of
country's population). Generally, more than 80 percent of the income goes towards the
welfare activities every year.

Business operations
The welfare is conducted through health care, education and vocational/technical training. To
a limited extent welfare is also a byproduct of employment generated for the beneficiaries
through commercial and welfare activities. Presently, the welfare is conducted through 116
medical facilities, 100 Schools & Colleges, 65 Vocational Training Centers and 9 Technical
Training Centers.
Diversification
The commercial activities are generated through two categories of projects namely:
Fully Owned and Affiliated Projects
Associated Companies
Fully Owned Projects
Fauji Cereals
Foundation Gas
Overseas Employment Services
Fauji Foundation Experimental And Seed Multiplication Farm
Associated Companies
Following companies are considered as Associated Companies
Fauji Fertilizer Company Limited
Fauji Fertilizer Bin Qasim Limited
Fauji Cement Company Limited
Fauji Kabirwala Power Company Limited
Foundation Power Company Daharki Limited
Mari Petroleum Company Limited
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Fauji Akbar Portia Marine Terminal Limited

Fauji Oil Terminal And Distribution Company Limited
Pakistan Maroc Phosphore, S.A., Morocco
Foundation Securities (Pvt) Limited
Askari Bank Limited
Askari Cement Company

Foundation Wind Energy - I
Foundation Wind Energy - II
Vision Statement
As a role model welfare-cum-industrial organisation, maintain

sustained operational excellence in health care, education and
industry.
Mission Statement
 Provide and facilitate quality education and health care
to the Beneficiaries
 Invest in ventures ensuring earning growth compatible to the demands of welfare
Core values
 Maintain high standards of ethical and professional conduct in all its operations.
 Maintain absolute transparency and accountability in all inter and intra-company
transactions as required by corporate laws and norms.
 Consistently seek and follow the best business practices.
 Zealously uphold and maintain its distinctive place as a byword in dependability and
reliability in the corporate and business world.
 Not to seek commercial and industrial expansion as an end in itself, but do so to meet
the expanding welfare needs of its Beneficiaries, i.e. "Earn to Serve".
 Engage in business in those sectors of the economy that are well regulated.
 Uphold honesty, integrity and loyalty as operative business principles
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Corporate Social Responsibility
"Fauji Foundation is Dedicated to Social Welfare and Development"
The Fauji Group, with its Associated Companies recognizes that we have a social
responsibility to enhance and empower our communities in which we work and live. We fully
understand our obligations in this respect. The Fauji Group has been continuously helping the
Beneficiaries, which today stands over 8.8 million and non-Beneficiaries for over half a
century through a strong commercial base involving operations in a wide variety of sectors
such as Oil & Gas, Power, Cement, Fertilizer and Financial service.
We stand committed to contribute positive to sustainable economic development by working

with employees and the beneficiary and non-beneficiary population in local communities, in
the area of Healthcare, Education, Community Development, Disaster relief and Human
Resource Development. Some of the salient contributions are:-
 Driving Community Healthcare: Fauji Foundation Healthcare System began

operations with the establishment of a 50-bed tuberculosis (TB) hospital at Rawalpindi
in 1959. More than 2.0 million patients are receiving treatment from the healthcare
system each year. Over the years, Fauji Foundation healthcare has grown into the
largest non-government healthcare system in Pakistan. Healthcare is provided free of
cost to the Beneficiaries.
 Enriching Lives with Quality Education: The Fauji Foundation Education System
has over 102 institutions located throughout Pakistan with faculty strength of over
1,700 well-trained teachers and over 43,000 students. Over the years, it has matured
into a progressive, all encompassing and a well rounded system of schools & colleges,
offering quality education both in urban and rural areas. At present, the Fauji
Foundation Education System comprises ten higher secondary schools, 88 secondary
schools and 2 middle and primary schools. All schools have libraries, as well as
science and computer laboratories
Stipends:
The educational stipend scheme, one of the oldest welfare initiatives of Fauji Foundation,
benefits talented students from low income backgrounds in schools, colleges, universities as
well as those enrolled in professional and technical education institutions. The scheme
supports more than 67,000 individuals through stipends of over PKR 141 million each year.

Empowering Youth with Specialized Skills:
Fauji foundation had established a network of 65 Vocational Training Centers (VTCs),
located in urban as well as rural areas of Pakistan. On average, each year more than 3800
students are receiving training from these centers.

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Technical Training for Retired Individuals:

To facilitate retired personnel and their children to acquire skills and information on future
job opportunities. Fauji Foundation had been imparting technical training. The foundation has
setup nine technical training centers (TTCs that have been training ex-servicemen, their sons,
and serving personnel to facilitate and enhance their income-generating opportunities after
retirement. The TTCs train about 2,300 students each year.
CSR Associated Companies:

 Fauji Fertilizer Company Ltd
 Fauji Cement Company Ltd
 Mari Petroleum Company Ltd
Strategic Business Units
(Associated Companies)
1.Fauji Kabirwala Power Company LTD

 Fauji Kabirwala Power Plant is a 157
MW Combined Cycle Power Plant
located near Kabirwala, District
Khanewal. Fauji Foundation set up
this US $ 170 million plant in
collaboration Messrs. EI Paso Energy
International, USA (now replaced by
Messrs. Pendekar Kabirwala Power
Company of Malaysia) with debt
equity ratio of 75:25. ADB and EDC
of Canada have financed a major portion of the debt
 The project commenced commercial operations on 21 Oct 1999 and ever since is
supplying power to the National Grid. Subject to availability of gas, expansion in its
capacity is also under consideration
 The plant is being operated and maintained by own engineers and staff. During the
last ten years of operation, it has achieved the highest rate of availability. Based on its
performance, the plant has been declared the world's Best Combined Cycle Plant by
Siemens/Westinghouse and awarded New Combined Cycle Power Plant of the Year
Award for the Years 2000, 2001, 2002 and 2004.
2.Fauji Fertilizer Company LTD

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3.Fauji Fertilizer Bin Qasim Limited

The Company started out in 1993 as Fauji
Jordan Fertilizer Company (FJFC), a joint
venture of Fauji Foundation, Fauji Fertilizer
and Jordan Phosphate Mines Company
(JPMC). It planned to produce, for the first
time in Pakistan, 1,670 metric tons per day
of Granulated Urea and 1,350 metric tons of
Di-Ammonia phosphate (DAP). In 2003,

after JPMC sold its shares, it was renamed as Fauji Fertilizer Bin Qasim Limited (FFBL).
The major share-holders are FFC (51%) and Fauji Foundation (17%). It is a listed company
with authorized and paid up capital of Rs. 11,000 million and Rs. 9,341 million, respectively.
FFBL plant site is a modern Granular Urea and Di-Ammonia Phosphate (DAP) fertilizer
manufacturing complex, built at a cost of US$ 468 million and located on 350 acres in the
Eastern Zone of Bin Qasim, Karachi. Commercial production started on January 1,2000
4.Fauji Cement Company Limited

FCCL is a public listed company with
authorized and paid up capital of Rs. 10
billion and Rs. 7.42 billion respectively.
Consequent to financial restructuring, the
Fauji Group (Fauji Foundation, FFCL, FFBL
and FOTCO), is now the principal
shareholder with 49.35% of equity, 31.79%
being that of Fauji Foundation.
FCCL has its cement plant at Jhang Bahtar, Tehsil Fateh Jang, District Attock in the province
of Punjab. Operating since November 1997, it is one of the most efficient and best
maintained plants in the country, functioning at high capacity utilisation consistently over the
last six years.
Starting at 3,000 tons per day, its capacity was enhanced to 3,700 ton per day of clinker in
2005. The quality of Portland Cement produced at this plant is widely regarded as the best in
the country and is preferred for the construction of highways, bridges, commercial/industrial
complexes and residential buildings.
In line with expansion trends in the cement industry, Fauji Cement is in contract with
Polysius, a German cement plant manufacturing firm, for installation of the largest single line
ever commissioned in Pakistan, having a capacity of 7,200 tons clinker per day. This will
significantly enhance the annual production capacity to 3.325 million tons, up from the
current 1.165 million tons. The new line is to be commissioned shortly. FCCL has installed
Pakistan's first ever Refuse Derived Fuel (RDF) process at a cost of Rs. 320 million.
About 200-300 tons of refuse is being used per day. This project is a beacon to the entire
industrial sector of the country towards fuel economy and environment friendly practices,
besides, making compost fertilizer as a byproduct
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5. Foundation Power Company Daharki

The Fauji Foundation had registered with PPIB,
for setting up a 178MW Gas Based Power Plant in
Daharki (Sindh) in April 2004. Foundation Power
Company Daharki Limited (FPCDL) was thus
incorporated in November 2005. The Foundation
Stone laying ceremony was presided over by the
then President of the Islamic Republic of
Pakistan, General Pervez Musharraf, NI(M), TBt,

on 24 May 2007 at Daharki. Construction work started in October 2007 under M/s Doosan
Heavy Industries and Construction Company of South Korea. The project was financed by a
consortium of 14 local banks, led by Askari Commercial Bank Limited. The project cost was
approximately US$ 217 million.
The installed Combined Cycle Power Plant (Gas Turbine of GE, USA & Steam Turbine of
Fuji, Japan) has a gross output of 202 MW. It employs modern technology under strict
international and environment friendly standards. The fuel source, from Mari Deep Well No.
6, has low BTU gas, which is otherwise unsuitable for domestic and industrial uses. By the
Grace of Almighty Allah, the plant is fully operational since May 2011 and contributing
178MW electricity to the National Grid at comparatively lower cost than other IPPs. This
output is sufficient to illuminate 250,000 urban homes, or meet the needs of 70 medium sized
industrial units, or 1,500 small sized villages.
FPCDL entered into an agreement with KEPCO KPS Plant Services and Engineering
Company Limited of South Korea for Operation and Maintenance.
The registered office of the Company is located at Fauji Towers, 68-Tipu Road, Chaklala,
Rawalpindi.
6. Mari Petroleum Company Limited
Mari Petroleum Field was originally owned by Pakistan Stanvac Petroleum Project (PSPP), a
joint venture between Government of Pakistan
at 49%, and Esso Eastern Incorporated (EEI) at
51% of ownership interest. Production
commenced in 1967. In 1983, Fauji Foundation
acquired the entire 51% share of EEI. The
company commenced business as MPCL in
December 1985.
MPCL is a public listed company with an

authorized and paid up capital of Rs. 2,500
million and Rs. 367.5 million respectively. Equity share is Fauji Foundation 40%,
Government of Pakistan 20%, Oil and Gas Development Company Limited 20% and the
general public 20%.
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MPCL has the potential to produce 603 MMSCFD gas from its Habib Rahi, Goru-B and Sui
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Main Limestone reservoirs. This volume has been allocated, by the Government of Pakistan,
to M/s Engro Chemical Pakistan Limited, Fauji Fertilizer Company Limited, Fatima
Fertilizer Company Limited, Foundation Power Company Daharki Limited, Star Power
Generation Limited, Sui Southern Gas Company Limited and WAPDA. Currently, MPCL is
producing + 500 MMSCFD gas, the remaining volume of allocated gas will be utilised by
IPPs once they are fully commissioned
MPCL started exploration activities in 2001 and has been allocating US $ 20 million per
annum for its planned exploration programme. MPCL is the Operator in six exploration
blocks, viz., Ziarat, Karak, Sujawal, Sukkur, Hanna, Harnai and two Development and

Production Leases, viz., Mari and Zarghun South. MPCL is also a joint venture (JV) partner
in six non-operated blocks, viz., Hala, Dadhar, Kohat, Bannu West, Kohlu and Kalchas.
7. Fauji Akbar Portia Marine Terminal

Fauji Akbar Portia Marine Terminal (Private) Limited (FAP) is a joint venture between Fauji
Foundation and Akbar Group of Companies for setting up a state-of-the-art grain and
fertilizer marine terminal at Port Bin Qasim,
Karachi, on Build, Operate and Transfer
(BOT) basis for 30 years. The Implementation
Agreement (IA) with Port Qasim Authority
(PQA) was signed in September 2007. The
Company achieved financial close in July
2008.
The project's estimated cost is USD 121

million with a designed throughput capacity of
4.1 million tons per annum, expandable up to 7 million tons. The terminal will have the
capacity of storing 100,000 tons; of grain, fertilizer, oil seeds and rice. The Terminal will be a
world class facility incorporating modern equipment and machinery, the first of its kind in
Pakistan. Once operational, the Terminal will reduce discharge time of vessels and
congestion of ships at Port Qasim significantly. The Terminal will have the capability to
handle vessels up to 75,000 DWT
8. Fauji Oil Terminal And Distribution

FOTCO, a joint venture of Fauji Foundation and
Infraavest Ltd. of Hong Kong, owns and operates a
state-of-the-art, environment friendly marine oil
terminal at Port Qasim. Costing US $ 100 million,
it was established in 1995 and has handled over 77
million tons of oil since inception. About 44% of
the total equity in the project is from Infraavest,
while 52% is from Fauji Foundation.
FOTCO Terminal is an all-weather jetty capable of handling vessels of 25,000 to 75,000

DWT is at the point of submersion, although it may also denote the actual DWT of a ship not
loaded to capacity). Three 16-inch dia Marine Loading Arms (MLA) are installed on the jetty
through which furnace oil, crude oil and high speed diesel (HSD) are handled. The jetty is
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connected to the shore by a 4-km long trestle which is designed to accommodate six product
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pipelines. Presently only two pipelines, one for HFO and the other for handling of crude and
HSD have been laid.
The Terminal is capable of handling 9 million tons of oil per annum at the existing jetty,
having a growth potential of more than 27 million tons with the addition of 3 more jetties, for
which an area has already been earmarked. Plans are in hand to construct one more jetty for
handling the increasing volumes of HFO and HSD being imported, and the crude oil for new
refineries.
FOTCO Terminal operations and maintenance are ISO certified and fully compliant with

International Ship and Port Facility Security (ISPS) regulations. FOTCO has been able to
achieve a turn-around time of 19 hours, which is a record for such operations in Pakistan. It is
the only terminal in the country equipped with the most modern Automated Jetty Monitoring
System.
9.Askari Cement Company

duction
Askari Cement Ltd is one of the leading manufacturers of Cement in Pakistan. It originated
way back in 1921 and since then has progressed very effectively and gained the trust of
millions of people around the globe.
Askari Cement responds to the World’s demands

for housing and infrastructure. It is driven by the
needs of its customers, shareholders, local
communities and architects. We extract resources
from the heart of the Earth bringing materials to
life.
At present Askari Cement has two plants in

operation one is located in Wah, Punjab Pakistan and the other in Nizampur (Khyber Pakhtun
Khwa), with a combined production capacity of 8,925 tons per day.
These plants have been designed by the world’s best global engineering companies like
 FL Smidth of Denmark
 M/s Holder Bank Consultants of Switzerland
 M/s Tianjin Cement Design & Research institute, China
 M/s China Building Material Industrial Corporation (CBMC)
Askari Cement has an excellent reputation in the global market and hence we export cement
to different countries like India, South Africa, Sudan, Dubai and Afghanistan etc.
Due to the high quality standards we maintain for our products we have gained a number of
prestigious international certifications. Askari Cement is an ISO 9001 & ISO 14001 certified
company. It is also certified in Bureau of Indian Standards and a Bureau
VERITAS Certification. Further it plans of more enhancement and progress in the
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International and local market in future times to come.

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10. Foundation Wind Energy

I. In light of its vision of diversification, Fauji Foundation initiated acquisition process
of Beacon Energy Limited (BEL), 50MW wind
energy project. The investment decision for this
project was made in light of Fauji Foundation’s
endeavor of investing in profitable projects that
provides Fauji Foundation with; the guaranteed
return , no inherent off take risk and wind speed
variation risk (causing loss in revenue) being

hedged by Government of Pakistan , to successfully finance its core business
philosophy, “the welfare operations”.
After successful due diligence process, Fauji Foundation, in a private deal, acquired 100%
shareholding in Beacon Energy Limited.

Beacon Energy Limited (BEL) was set up by the Beacon house Group (Kasuri family) for
developing a 50 MW wind energy project. In 2005 BEL was awarded a development license
by the AEDB for the construction and operation of a 50 MW wind farm near Karachi..

After acquisition, name of the company has been changed to Foundation Wind Energy-I
Limited (FWEL-I)
II. In light of its vision of diversification, Fauji Foundation initiated the acquisition
process of Green Power (Private) Limited, 50MW wind energy project. The
investment decision for this project was made in light of Fauji Foundation’s endeavor
of investing in profitable projects that provides Fauji Foundation with; the guaranteed
return , no inherent off take risk and wind speed variation risk (causing loss in
revenue) being hedged by Govt of Pakistan , to successfully finance its core business
philosophy, “the welfare operations”.

After successful due diligence process, Fauji Foundation, in a private deal, acquired 80%
stake in the project.

Green Power (Private) Limited (GPPL) was set up to develop, own and operate a 50 MW
wind farm Independent Power Producer (IPP) Project in Sindh, Pakistan. The project
company’s original sponsor is the renowned Tapal Group (AVS enterprises). The Tapal
Group has previously initiated the development of Tapal Energy Limited (TEL), a joint
venture with Wartsila (Finland) and Marubeni (Japan), which became the first IPP project (a
126-MW diesel power plant) to commence operations under the 1995 Pakistan Private
Policy.

After acquisition, name of the company has been changed to Foundation Wind Energy-II
(Private) Limited (FWEL-II).
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Fauji Fertilizer
FFC was established in 1978 as a joint venture of Fauji Foundation and Haldor Topsoe. The
first urea complex was commissioned in 1982. Plant-1 was improved in 1992, and a second
plant was built in 1993. In the year 2002, FFC acquired ex Pak Saudi Fertilizers
Limited (PSFL) Urea Plant situated at Mirpur Mathelo, District Ghotki from National
Fertilizer Corporation (NFC) through a privatisation process of the Government of Pakistan.
This acquisition at Rs. 8,151 million represents one of the largest industrial sector
transactions in Pakistan. FFC now has three plants with a combined capacity of 5770 MTPD
of prilled urea
Fauji Fertilizer Bin Qasim Limited (FFBL) is another company where FFC has controlling
shares – it produces 1670 MTPD of granular urea plus 2250 MTPD DAP after revamping
(1350 MTPD before revamp) DAP. Ammonia and urea plants capacity factors right from the
plants start-up have been 100% or more. Today, FFC is also involved manpower training and
turnaround services provider, especially within Pakistan and in the Middle East.
Fauji Fertiliser Bin Qasim would enter meat, dairy and power businesses with an estimated
investment of over Rs. 33 billion ($ 330 million). The wholly owned subsidiaries of Fauji
Meat, Fauji Foods and Fauji Power will be involved in these businesses.
Fauji Fertilizer Company limited (Subsidiary of Fauji Foundation) had also developed a 50
MW Project in Jhampir, District Thatta Sindh which is operational since 16 May 2013
Managing Directors FFC
Name From To
Maj Gen Rao Farman Ali Khan (Retired) May 78 Aug 85
Lt Gen Ahmad Jamal Khan, HI(M), SI(M) (Retired) Sep 85 Feb 92
Lt Gen Imtiaz Waraich, HI(M), SJ, SBt, TBt (Retired) Feb 92 Apr 96
Lt Gen M. Arif Bangash, HI(M), SBt (Retired) Apr 96 Dec 96

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Lt Gen Khalid Latif Moghal, HI(M), SBt (Retired) Dec 96 Mar 97

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Lt Gen Zia Ullah Khan, HI(M) (Retired) Mar 97 Mar 00
Lt Gen Amjad Shuaib, HI(M) (Retired) Mar 00 Mar 03
Lt Gen Mahmud Ahmed, HI(M) (Retired) Mar 03 Mar 06
Lt Gen Munir Hafiez, HI(M) (Retired) Mar 06 Mar 09
Lt Gen Malik Arif Hayat, HI(M) (Retired) Mar 09 Mar 12

Lt Gen Naeem Khalid Lodhi, HI(M) (Retired) Mar 12 Mar 15
Lt Gen Shafqaat Ahmed, HI(M) (Retired) Mar 15 To Date
Lt Gen Shafqaat Ahmed, HI(M) (Retd)

(Chief Executive & Managing Director)
He is Chief Executive & Managing Director of Fauji Fertilizer Company Limited, FFC
Energy Limited and Fauji Fresh n Freeze Limited and also holds directorship on the Boards
of following:
 Fauji Fertilizer Bin Qasim Limited

 Askari Bank Limited
 Fauji Foods Limited
 Fauji Meat Limited
 FFBL Power Company Limited
 Pakistan Maroc Phosphore S.A.
 Noon Pakistan Limited
He is Chairman of Sona Welfare Foundation (SWF), member of the Board of Governors of
Foundation University, Islamabad and Director on the Board of International Fertilizer
Industry Association (IFA) as well.
The General was commissioned in Pakistan Army in October 1975. During his service in the
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Army, he had been employed on various prestigious command, staff and instructional
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assignments. Climax of his nearly four decades of military career was command of a strike
corps.
He is a graduate of Command and Staff College Quetta, National Defence University

Islamabad, Ecole d'Etat Major Compiegne, France and Ecole Militaire Paris, France. He also
holds Master Degree in War Studies and Class A Interpreter ship in French language from the
National University of Modern Languages Islamabad and speaks French language fluently.

He has attended “Finance for Non-Finance Managers” course from Chartered Institute of
Management Accountants (CIMA) at London, UK in May 2015.
He had the honor of serving as Pakistan's Defense and Military Attaché to USA from 2002 to
2005 with concurrent accreditation to Canada and Argentina. He also served as Military
Secretary to the President of Pakistan from 2005 to 2008. During this period he participated
in number of international forums notably, UN General Assembly Inaugural Session of 2006,
NAM Summit in Cuba, OIC Summit in Saudi Arabia, World Economic Forum Davos
Switzerland, ECO Summit at Shanghai China. The General has participated in bilateral
meetings alongwith the President of Pakistan with a number of Heads of State.
Served on the faculty of Command and Staff College Quetta and National Defence
University Islamabad. Since his retirement, he is on the honorary faculty of National Defence
University as a senior mentor. He also participated in the US-Pakistan Senior Military
Leadership Seminar.
He has been awarded Hilal-e-Imtiaz (Military) and also conferred upon the award of 'Legion
of Merit' by the US Government in promoting bilateral US Pakistan military relations.
Products
1. Sona Urea
Sona Urea is the most concentrated solid, straight nitrogenous and most
widely used fertilizer in the country. Mostly it is manufactured in the form of
prills, but FFC is producing in prilled as well as granular forms. Prilled and
granular fertilizers are white in color, free flowing, readily soluble in water
and both contain 46% Nitrogen. Because of its high solubility, it is suitable
for solution fetilizers and foliar application. Urea is the best suited to our soils
15
because some of the salient physical and chemical characteristics of Sona

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Urea Prilled and Granular are below
Physical Condition Free Flowing Prills Free Flowing Granules

Nitrogen (%) 46 46
Moisture (%) < 0.30 < 0.30
Biuret (%) 0.80 ~ 0.87 0.80 ~ 0.87
Fines (%) < 1.0 Dust Free
AV Prill Size (mm) 1.82 ~ 2.0 2.0 ~ 5.0

2. DAP
Sona DAP is the most concentrated phosphatic fertilizer containing

46% P2O5 and 18% Nitrogen. From nutrients' concentration point
of view, it has got the highest quantity of total nutrients in a 50 KG
bag i.e. 32 KG of nutrients / bag. The highest concentration of plant
nutrients in a bag helps saving costs of transportation, handling,
storage and application. It is the widely used phosphatic fertilizer in the world as well as
Pakistan. The solubility of DAP is more than 95%, which is highest among the phosphatic
fertilizers available in the country. Due to high solubility it can also be used through
fertigation as well as by foliar application. Its nitrogen to phosphoris ratio (1: 2.5) makes it an
ideal fertilizer for Basal application to meet the initial requirement of most of the crops.
Having an ultimate acidic effect on the soil, it is well suited for our alkaline soils. Its salient
characteristics are listed below:
Nitrogen(%) 18
P2O5 (%) 46
Crushing Strength (Kg) 6
Size (mm) 2~4
Moisture (%) < 0.7
3. FFC SOP
This fertilizer is an important source of Potash, which is a quality

nutrient for production of crops especially fruits and vegetables.
Potash is an important nutrient for activation of enzymes in the
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plant body and helps increasing sugar and starch contents. Potash
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improves the resistance of the plants against pests, diseases and

stresses like water / frost injury etc. FFC SOP contains 50% K20
in addition to 18% sulfur, which is also an important nutrient
especially for oil seed crops and it also has an ameliorating effect
on salt-affected soils. As readily soluble in water so it can be used through fertigation as well
as foliar application. SOP is well suited fertilizer for all types of crops and soil. Use of

potassic fertilizer in Pakistan is minimal, which needs to be promoted for qualitative as well
as quantitative crop production.
4. SONA BORON
Sona Boron is a crystalline fertilizer in the form of Sodium

Tetra Borate Decahydrate in 3 Kg packing. It is an essential
micronutrient required for plant nutrition, which pays a vital
role in a number of growth processes especially new cell
development, pollination, fruit/seed setting, translocation of
sugars, starches, nitrogen and phosphorous, nodule formation
in legumes and regulation of carbohydrate metabolism. Boron deficiency results in curled
leaves, cracking and rotting of fruits, tubers or roots. Keeping in view increasing boron
deficiency in Pakistani soils FFCL is providing superior quality Sona Boron containing
11.3% Boron (Borax). It is easily soluble in water and readily available to plants. It can be
used as mixture with other fertilizers.
Market Share Of FFC
Urea Market Share

5%
9%
Fauji Fertilizer
6% EngriFertilizer
National Fertilizer
44% Dawood Hercules
9% Reliance Group
Others
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27%
Marketing Mix (4P’s)

Product

Sona Urea DAP
Sona Urea is the most concentrated solid, Sona DAP is the most concentrated
straight nitrogenous and most widely used phosphate fertilizer containing 18% of the
fertilizer in the country. It is readily nutrients. The highest concentration of the
soluble in the water and because of its high plant nutrients in the bag helps saving cost
solubility; it is situated for solution of transportation, handling, storage and
fertilizer and foliar application. application.
Price
The prices of the bags in which different types of Sona Urea products are being entered are
different because of their different weights, sizes, different product type and quality.
Place
North zone Central zone South zone
Zonal office Lahore Zonal office Multan Zonal office Karachi
Lahore region Bahawalpur region Hyderabad region
Peshawar region Dera Ghazi khan region Nawabshah region
Faisalabad region Multan region Quetta region
Organizational structure
Organizational structure is a system used to define a hierarchy within an organization. It
identifies each job, its function and where it reports to within the organization.
Formulation
Major policies are formulated at the head office of FFC. Local policies are formulated according
to needs of concerning area. Policies are made in accordance with Need analysis (individuals/ company) HR
department give suggestion to head office for change in policies. It also interprets the policies for proper
implementation.
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Departmentalization
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They receive order from top management and they formulate their own strategies to achieve Departmental
Goals
Centralization/ Decentralization

The culture of the organization is centralized and also decentralized that everyone has
followed the orders of the Top management and decentralized in the sense that some decision
are taken into consideration and solved by the specific department head.
SWOTanalysis of FFC
Strengths:
Strengths refer to those activities that a company performs better than
it has competitors. Strength basically means ³thecore competency of
the company.´
The following points are our company’s strength:
 FFC has a very stable urea market
 FFC has a strong dealer ship network and a large sales force
to cater to its needs.
 FFC produce best quality urea.
 Its brand is preferred on others.
 FFC owns three mega plants with Central location .Broad
production range.
 No deceptive & unethical practices .Experience in production and marketing of product.
 Top player of fertilizer business with maximum production capacity.
 Significant contribution towards the economic and agricultural development of the state.
 Core competence in distribution with the largest distribution network.
 Excellent environmental & working conditions.
 Safety measures of international standards are exercised.
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 Strong Distribution Network

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 Low Fixed Costs (Depreciated Plants)

 Management Quality
Weaknesses:

Weaknesses are the activities that the firm does not do well or the resources it needs but does not possess. It
also includes the factors that cause losses, hardships, disputes and complaints for a business.
The following are our company’s weaknesses:
 Because of high share in total production, it is allotted more of imported urea which sells slowly.
 Its price is higher than of competitors.
 Dependence on imported feed stock, suppliers and special repair/maintenance facilities.
 Too much centralization bureaucratic control effects timely decision making.
 Decline in sales in economic zones of competitors.
 Lack of long term planning, decisions are made keeping in view the short term benefits.
 Sales force is over staffed
 .Distress in sales force due to extra burden of sales of acquired plan product Limited Diversification
 Dependence on Govt. Gas
Opportunities:
These are the directions that the business could profitably take in future because of its strengths or because of
the elimination of its weaknesses .The following are opportunities for our company.
 Demand of Urea is growing very rapidly
 Good chances of expansions.
 Expansion of plants to meet the demand more efficiently
 .Efficient as well as appropriate sales promotion and dynamic advertisement
 .Proper placement of warehouses.
 Delegation of authority so that decisions can be made at the spot without any delay.
 Great opportunities for joint ventures
 .Quality should be improved gradually with the results and trends in market, may utilize the word of
mouth influence by giving more benefits to dealers.
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 May diversify the business in allied services .may be cost leaders by cutting down the unnecessary
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expenditures.
 Diversification Opportunities
 Favorable Industry Indicators
 Favorable New Policy- Expansions

Threats:
A threat to a business arises from the activities of competitors and from failing to avail opportunities because
of so many reasons like political instability and economic and financial crises etc.
The following are the threats that our company is facing
 . Any sharp decline will hurt it the most.
 A free trade policy of WTO is a major threat to the company.
 Threat of water and gas crisis.
 Rising Internal Oil Prices
 Expansion in Global DAP Capacity
 New Entrants (Fatima in 2008)
 Gas Supply Constraints
 Unfavorable Fertilizer Policy: increase in feedstock or new entrant incentives
P EST analysis of FFC

Political Instability:
The political situation of Pakistan is not
satisfactory. Due to the rapid change in the
Government every government sets its own
new trade policies .Govt. should apply
sustainable policies for the beneficial of the
exporters as well as the investors.
Economic situation:
The economic condition of Pakistan can also
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affect the foreign investors increasing inflation

Page
rate make the cost of production high and thus

reduce the profit margin of the investor.
Social situation:
The change in the lifestyle of the people affects the growing demand of the FFC products. The change in the
lifestyle and needs in different demographics also affect the demand of the customers .Due to all these changes
FFC is performing excellent for the excellence organization as well as for the customer.

Technological factor:
Technological advancement in all the sectors of the country has changed the entire socio-economic
environment. Especially in the fertilizer sector there is a lot of technological development .High technology is
the basic requirement of FERTILIZER industry. The companies that are using latest technology have some
cost benefits over the companies, which are not using high technology. The key to survival for companies in
this industry is using high technology for quality and cost purposes
BCG Growth Matrix
Star
 Sona Urea
 Sona DAP
 FFC SOP
 Sona BORON
 Oil Handlig Facility LTD
 POL Products Handle
 Fulfilling Pakistan Energy
 Portland Ordinary Cement
Cash Cow
 Plant A157 MW Cycle Power

 Low Alkali Ordinary Cement
 Mari Allied Services
Question Marks
22 Page
 Spiral Loader
 Mechanical Cleaning Of Cargo
 Dust Aspiration
DOG
 Mari Seismic Services Unit (Msu)

 Mari Seismic Data Processing Center (Mspc)
 Mari Drilling Services Unit (Mdu)
 Tameer Cement

 Askari Cement
Porter’s Competitive Forces Model:

Porter’s Competitive Forces model analyzes the nature and intensity of competition in a
given industry in terms of five major forces.
•Rivalry:
FaujiFertilizer has rivalry with the other fertilizer manufacturing companies in the fertilizer In
dustry of Pakistan. The companies that offer rivalry to FFC are
I. .Engro Chemical
II. Dawood Hercules
III. Pak Arab Fertilizer
Various competitive tactics among rivals lower prices that can be raise costs of doing
business.
•Bargaining Power of Customers:

At Fauji Fertilizer Limited there is no customer power of bargaining, because the company is
already giving good quality at a reasonable rate.
•Bargaining Power of Suppliers:
In the fertilizer industry of Pakistan there is comparison between the rivals in prices. But as
Fauji Fertilizer is not an autonomous body in manufacturing their products so they face
encounter bargaining power of suppliers.
•Threat of substitute products:

Fauji Fertilizer as threat from their rivals in the industry,
but they maintain their quality standards and manufacturing status at a relatively affordable
rate.
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Strategies perused by firm

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 Integration Strategies
Backward Integration Strategy
FFC follows the backward integration to support their business. They try to acquire the
related companies or part of business to give a boost to the business growth.
Forward integration Strategy

FFC also follow the forward integration Strategy. They Has their own FFC dealers who sales
the Products of FFC
Horizontal Strategy
FFC follows the Horizontal Strategy because they are acquiring, joint ventures with related
firms
 Intensive Strategies
Product development
With the Passage of time they are making changes, redesign products and Quality
Market Development
They are extending their geographical Area. Their products are available in all Pakistan
Strategic Management in FFC

Joint venture
FFC also has a 12.5% participation in equity (as part of the Fauji Group, that has 50%) in the
Fauji Group-OCP joint venture of Pakistan Maroc Phosphore, S.A (PMP) phosphoric acid
plant in Morocco; ensuring long term supply of this raw material for FFBL's DAP production
Acquisition
 In the year 2002, FFC acquired ex Pak Saudi Fertilizers Limited (PSFL) Urea
Plant situated at Mirpur Mathelo, District Ghotki from National Fertilizer Corporation
(NFC) through privatisation process of the Government of Pakistan. It has annual
production capacity of 574,000 metric tons urea which has been revamped to 718,000
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metric tons urea in 2009.

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 This acquisition at Rs. 8,151 million represented the largest industrial sector
transactions in Pakistan at that time
Major Customers of FFC

Our major customers are farmers we focus on their needs and fulfill their needs of fertilizer
Hofstede’s Model of Cultural dimension

What About Pakistan
If we explore Pakistani culture through the lens of the 6-D Model©, we can get a good
overview of the deep drivers of Pakistani culture relative to other world cultures.
Power Distance
This dimension deals with the fact that all individuals in societies are not equal – it expresses
the attitude of the culture towards these inequalities amongst us. Power Distance is defined
as the extent to which the less powerful members of institutions and organisations within a
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country expect and accept that power is distributed unequally.

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With an intermediate score of 55, it is not possible to determine a preference for Pakistan in
this dimension.
Individualism
The fundamental issue addressed by this dimension is the degree of interdependence a

society maintains among its members. It has to do with whether people´s self-image is
defined in terms of “I” or “We”. In Individualist societies people are supposed to look after
themselves and their direct family only. In Collectivist society’s people belong to ‘in groups’
that take care of them in exchange for loyalty.
Pakistan, with a very low score of 14, is considered a collectivistic society. This is manifest
in a close long-term commitment to the member 'group', be that a family, extended family, or
extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most
other societal rules and regulations. The society fosters strong relationships where everyone
takes responsibility for fellow members of their group. In collectivist societies offence leads
to shame and loss of face, employer/employee relationships are perceived in moral terms
(like a family link), hiring and promotion decisions take account of the employee’s in-group,
management is the management of groups.
Masculinity
A high score (Masculine) on this dimension indicates that the society will be driven by
competition, achievement and success, with success being defined by the winner / best in
field – a value system that starts in school and continues throughout organizational life.
A low score (Feminine) on the dimension means that the dominant values in society are
caring for others and quality of life. A Feminine society is one where quality of life is the
sign of success and standing out from the crowd is not admirable. The fundamental issue
here is what motivates people, wanting to be the best (Masculine) or liking what you do
(Feminine).
Pakistan scores 50 on this dimension, and as this is an exactly intermediate score it cannot be
said if Pakistan has a preference to Masculinity of femininity.
26
Uncertainty avoidance
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The dimension Uncertainty Avoidance has to do with the way that a society deals with the
fact that the future can never be known: should we try to control the future or just let it
happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with
this anxiety in different ways. The extent to which the members of a culture feel
threatened by ambiguous or unknown situations and have created beliefs and institutions
that try to avoid these is reflected in the UAI score.

Pakistan scores 70 on this dimension and thus has a high preference for avoiding uncertainty.
Countries exhibiting high Uncertainty Avoidance maintain rigid codes of belief and
behaviour and are intolerant of unorthodox behaviour and ideas. In these cultures there is an
emotional need for rules (even if the rules never seem to work) time is money, people have an
inner urge to be busy and work hard, precision and punctuality are the norm, innovation may
be resisted, security is an important element in individual motivation.
Long Term Orientation

This dimension describes how every society has to maintain some links with its own past
while dealing with the challenges of the present and future, and societies prioritise these
two existential goals differently. Normative societies. which score low on this dimension, for
example, prefer to maintain time-honoured traditions and norms while viewing societal
change with suspicion. Those with a culture which scores high, on the other hand, take a
more pragmatic approach: they encourage thrift and efforts in modern education as a way to
prepare for the future.
With an intermediate score of 50, the culture of Pakistan cannot be said to indicate a
preference.
Indulgence
One challenge that confronts humanity, now and in the past, is the degree to which small
children are socialized. Without socialization we do not become “human”. This dimension is
defined as the extent to which people try to control their desires and impulses, based on the
way they were raised. Relatively weak control is called “Indulgence” and relatively strong
control is called “Restraint”. Cultures can, therefore, be described as Indulgent or Restrained.
Pakistan, with an extremely low score of 0 on this dimension, can be said to be a very
27
Restrained society. Societies with a low score in this dimension have a tendency to cynicism
Page
and pessimism. Also, in contrast to Indulgent societies, Restrained societies do not put much
emphasis on leisure time and control the gratification of their desires. People with this
orientation have the perception that their actions are Restrained by social norms and feel that
indulging themselves is somewhat wrong.


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ACKNOWLEDGEMENTS

“In the Name of Allah most Merciful and Beneficent”

Institute of Banking and Finance

Institute of Banking and Finance

Institute of Banking and Finance

Fauji Akbar Portia Marine Terminal Limited

Institute of Banking and Finance

As a role model welfare-cum-industrial organisation, maintain

Institute of Banking and Finance

We stand committed to contribute positive to sustainable economic development by working

 Driving Community Healthcare: Fauji Foundation Healthcare System began

Technical Training for Retired Individuals:

CSR Associated Companies:

1.Fauji Kabirwala Power Company LTD

2.Fauji Fertilizer Company LTD

3.Fauji Fertilizer Bin Qasim Limited

Institute of Banking and Finance

4.Fauji Cement Company Limited

5. Foundation Power Company Daharki

Institute of Banking and Finance

6. Mari Petroleum Company Limited

MPCL is a public listed company with an

Institute of Banking and Finance

7. Fauji Akbar Portia Marine Terminal

The project's estimated cost is USD 121

8. Fauji Oil Terminal And Distribution

FOTCO Terminal is an all-weather jetty capable of handling vessels of 25,000 to 75,000

Institute of Banking and Finance

9.Askari Cement Company

Askari Cement responds to the World’s demands

At present Askari Cement has two plants in

International and local market in future times to come.

10. Foundation Wind Energy

Institute of Banking and Finance

Institute of Banking and Finance

Managing Directors FFC

Maj Gen Rao Farman Ali Khan (Retired) May 78 Aug 85

Lt Gen Ahmad Jamal Khan, HI(M), SI(M) (Retired) Sep 85 Feb 92

Lt Gen M. Arif Bangash, HI(M), SBt (Retired) Apr 96 Dec 96

Lt Gen Khalid Latif Moghal, HI(M), SBt (Retired) Dec 96 Mar 97

Lt Gen Zia Ullah Khan, HI(M) (Retired) Mar 97 Mar 00

Lt Gen Amjad Shuaib, HI(M) (Retired) Mar 00 Mar 03

Lt Gen Mahmud Ahmed, HI(M) (Retired) Mar 03 Mar 06

Lt Gen Munir Hafiez, HI(M) (Retired) Mar 06 Mar 09

Lt Gen Malik Arif Hayat, HI(M) (Retired) Mar 09 Mar 12

Institute of Banking and Finance

Lt Gen Shafqaat Ahmed, HI(M) (Retired) Mar 15 To Date

Lt Gen Shafqaat Ahmed, HI(M) (Retd)

 Fauji Fertilizer Bin Qasim Limited

He is a graduate of Command and Staff College Quetta, National Defence University

Institute of Banking and Finance

because some of the salient physical and chemical characteristics of Sona

Urea Prilled and Granular are below

Physical Condition Free Flowing Prills Free Flowing Granules

Institute of Banking and Finance

Sona DAP is the most concentrated phosphatic fertilizer containing

This fertilizer is an important source of Potash, which is a quality

improves the resistance of the plants against pests, diseases and

Institute of Banking and Finance

Sona Boron is a crystalline fertilizer in the form of Sodium

Market Share Of FFC

Urea Market Share

Marketing Mix (4P’s)