History

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Search for oil by Pak Stanvac, an Esso/Mobil joint venture in 1957, led to the discovery of Mari gas field situated near Daharki, a small town in upper Sindh province. Esso was the first to study this development in detail and propose the establishment of a urea plant in that area. The proposal was approved by the government in 1964, which led to a fertilizer plant agreement signed in December that year. Subsequently in 1965, the Esso Pakistan Fertilizer Company Limited was incorporated, with 75% of the shares owned by Esso and 25% by the general public. The construction of a urea plant commenced at Daharki the following year with the annual capacity of 173,000 tons and production commenced in 1968. At US $ 43 million, it was the single largest foreign investment by an MNC in the country. A full-fledged marketing organization was established which undertook agronomic programs to educate the farmers of Pakistan. As the nation s first fertilizer brand, Engro (then Esso) helped modernize traditional farming practices to boost farm yields, directly impacting the quality of life not only for farmers and their families, but for the community at large. As a result of these efforts, consumption of fertilizers increased in Pakistan, paving the way for the Company s branded urea called "Engro", an acronym for "Energy for Growth". As part of an international name change program, Esso became Exxon in 1978 and the company was renamed Exxon Chemical Pakistan Limited. The company continued to prosper as it relentlessly pursued productivity gains and strived to attain professional excellence. In 1991, Exxon decided to divest its fertilizer business on a global basis. The employees of Exxon Chemical Pakistan Limited, in partnership with leading international and local financial institutions bought out Exxon s 75 percent equity. This was at the time and perhaps still is the most successful employee buy-out in the corporate history of Pakistan. Renamed as Engro Chemical Pakistan Limited, the Company has gone from strength to strength, reflected in its consistent financial performance, growth of the core fertilizer business and diversification into other fields. Investment in people, process solutions and resource conservation initiatives have reduced energy use per ton of urea by a third, whilst increasing urea production nearly six-fold since 1968. Not only does this save money, it stretches non-renewable energy sources and mitigates the impact of waste. Along the way, a major milestone in plant capacity upgrade coincided with the employee led buy-out; innovatively optimizing our resources, Engro re-located fertilizer manufacturing plants from the UK and US to its Daharki plant site an international first. Our pioneering spirit continues in our social investments, exemplified by the only snake-bite treatment facility in the Ghotki region and the first telemedicine intervention in the country.

expansion in foods business with addition of brands and growing distribution network. In order to get a better understanding of its strengths. being one of the few truly diversified and professional corporations (in terms of operating procedures & standards) in Pakistan. we can take a look at the following facts. WEAKNESSES: . Leading seller of phosphates (35% market share) 7. 1. Increasing EAT year after year 2. Therefore this organization has many strong points that hold it high in the face of industry competitors. polymers. Top25 companies award winner 10.SWOT ANALYSIS STRENGTHS: The company is obviously a source of pride to the nation. has made robust strides in all areas of operation 5. Environment excellence award In all areas of business the company has improved performance and expanded operations such as urea expansion. The corp. Strong financial backbone 4. Experience and in-depth knowledge of the market 9. Focus on safety and internationally compatible sops 3. Name in terms of brand equity 8. manufacturing of Pakistan s first cryogenic ethylene storage. Top annual ranking award given by ICAP (2002) 6. Engro also plans to build an independent power plant capable of producing 217MW of electricity by end of 2009.

3. Political instability 3. 5. Global market trends . For R&D THREATS: A company of this scale has many threats to face that are posed by the external environment.OPPORTUNITIES: 1. The threat of MNCs as competitors 2. In short some of the threats faced by engro are. According to the porter model there are obvious threats such as buyer power of clients and suppliers and the threat of new entrants as well as existing competitors and substitute products. 2. 1. 4. Large and growing size of market and hence demand Increasing potential to go international Urea demand by local manufacturers still unmet Increasing consumption of zarkhez Chances to work with foreign corps.

Zarkhez plant at Port Qasim continued its operation without LWI and achieved 0.4 MMH without LWI to any employee of contractors. including commencement of management safety audits. The total recordable incident rate was 0. Engro non-manufacturing functions achieved 6. Sahara welfare Project hope Maternal & childcare center Snake bite treatment facility Eye care Engro thallassemia center Schools in katcha . site completed 2. Both behavioral and process safety programs were launched in 2007.6 MMH without LWI to an ECPL employee over a period of 6 years.85 MMH over a period of nearly 22 years without LWI.45 MMH without LWI to any employee of contractors over a period of 3 years.5 million man-hours (MMH) without LWI to employees and 2.31 in 2006. 2. Major recent steps taken include. In addition.Corporate Social Responsibility Occupational Health: The urea plant at Daharki operated without Lost Work Day Injuries (LWIs) to either ECPL or contractor employees. The site has achieved 2. 6. identifying and addressing unsafe situations pro-actively by utilizing safety audits by the management team and developing site leading indicators that identify and improve weak areas. 5. Social citizenship: The company launched its second edition of CSR report in line with international guidelines and was among the top most socially responsive organizations in Pakistan.42 in 2007 versus 1. Even the report was published in recycled paper! The company s social investments were 1% of pre-tax profits. The behavioral safety management system is now close to the DuPont Best Practices skill level. 7. Internal evaluation and safety results at end of year indicate that safety awareness has improved as a result of this effort. 4. The company is in constant touch with the following welfare organizations 1. 3.

Dolphin saving activities 3. Earthquake victims revivial program 2. . Neighborhood care program in collaboration with CPLC 4.Other initiatives include 1.

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