Fertilizer Industry of Pakistan:

Fertilizer has been one of the three key contributors to productivity growth in food staples
since the Green Revolution that began in the 1960s in Pakistan.
The total domestic installed capacity of all types of fertilizer in Pakistan is currently estimated at
10 million metric tons, 69 percent of which is for urea and 31 percent for DAP and potash (the
fertilizer product with the active nutrient potassium).
Pakistan’s agriculture sector contributes 19% to the GDP and gives work to the 42.3% labour
force. There are seven major producers of fertilizers, which include Fauji Fertilizers (51% market
share), Engro(33% market share), Fatima(13% market share), Pak Arab, Agritech, Dawood
Hercules, Fauji Fertilizers (Bin Qasim).

The following are the types of fertilizers produced in Pakistan.

The three primary macronutrients: nitrogen (N), phosphorus (P), and potassium (K).
The three secondary macronutrients: calcium (Ca), sulfur (S), magnesium (Mg). The
micronutrients or trace minerals: boron (B), chlorine (Cl), manganese (Mn), iron (Fe), zinc (Zn),
copper (Cu), molybdenum (Mo) and selenium.

Opportunities:
Pakistan Fertilizer’s Industry is still unable to produce enough output to meet the needs of the
farmers which results in import of fertilizers from foreign countries. China surpassed the USA to
become the world’s largest importer of agricultural products and has a huge market for
imported food products and Pakistan can be the venue for fulfilling their needs due to cheap
land & labour.
Pakistan’s second largest export category is vegetables, accounting for 14% of Pakistan’s
exports. Food products are the fourth important item in Pakistan’s exports, constituting almost
4% of total exports. Cumulative exports of Pakistan in agricultural and agro-processed items
amount to $4.06 billion. Therefore, Pakistan’s bulk of the export basket is reliant on agriculture,
resulting in a massive demand for fertilizer products. China Machinery Engineering Corporation
(CMEC) is interested in setting up an Agriculture, Science and Technology Transferring Center in
Pakistan.

Engro Fertilizer:
Engro Fertilizer is the name known to every farmer of Pakistan. It’s subsidiary of Engro
Corporation and holds the second biggest consumer market share of about 33% in the fertilizer
industry of Pakistan with an annual 2275 KT production capicity. The parent company was
founded in 1965 as a fertilizer business by an American Company Exxon and was later sold to
the employees of the firm in 1991. It has the world’s largest single train ammonia-urea plant, in
Daharki, Sindh which produces 1300 KT per annum.
Engro Fertilizers Limited (EFert), demerged from Engro chemicals in 2010. Engro fertilizer have
1378 employees in which 1304 are males and 74 females.

Engro Fertilizer Corporate Governance and Management:

EFert’s board comprises three Engro Corp’s executives, three DG representatives and two
independent directors.
CEO: Nadir Salar Qureshi
CFO: Imran Ahmed
CCO: Khusrau Nadir Gillani
VP of HR : Arshia Ahmed Saqib
Senior VP of Manufacturing : Syed Shehzad Nabi
VP of Supply-chain : Sulaiman Ijaz
Digital Transformation Head: Imran Lakhwera

Board of Directors:
Non-Executive Chairman: Ghias-Uddin Khan
Director: Mazhar Abbas Hasnani
Non-Executive Director : Javed Akbar
Non-Executive director : Khawaja Bilal Hussain
Independent Director: Shamshad Akhtar
Independent Director: Asad Said Jafar
Independent Director: Asim Murtaza Khan

Products & Services:

•Fertilizers:
Engro Urea:
EFERT set up the first urea production facility in Pakistan, a landmark event in agricultural
sector of the country, with a production capacity of 173,000 tons per year in 1968. In 2011, the
Company set up the world’s largest (at that time) single train urea plant of 1.3 Mn tons
capacity. Currently, EFERT is producing 2.2 Mn tons per year.

Engro NP Plus:
Engro NP Plus is an innovative formulation that contains Nitrogen and Phosphorus in equal
proportions, providing balanced growth in terms of crop health and productivity.

Engro DAP:
Till 1994, Di-Ammonium Phosphate (DAP) was imported in Pakistan by the fertilizer import
department (FID) however, due to deregulation of imports the private sector took over and
EFERT became one of the largest importers in the country.

Engro Zorawar, Engro Zarkhez, Engro Zarkhez Plus, Engro ZarkhezZarkhe, Engro Zingro, Engro
Zabardast Urea, Engro SOP,Engro ammonium sulphate, Engro Potash Power, Engro Phos Power

•Crop science division:

EFERT expanded its Seed-To-Harvest solution with the introduction of the Crop Science Division
(CSD) in 2017. CSD has a range of insecticides, fungicides, herbicides and micro nutrients, in
addition to Hybrid and Open pollinated seed varieties of different crops and vegetables.

•Agri-services:
EFERT has expanded its offering to cater to different areas of agricultural needs to provide our
customers with a one-stop solution. Following are the services currently provided under
EFERT’s hood:
•mechanical maize planting service
•bed shaping service
•corn harvesting service
•rice transplanting service
•wheat & rice harvesting service

•Engro logistics:
2020 was the first year of commercial operations for newly established services arm dealing in
long haul logistics business. This service arm of the Company will help in consolidating the end-
to-end supply chain function of the Company and at the same time bring innovation and
efficiency to the existing logistics industry of Pakistan. In its first year of operations, the fleet
size has grown to 195 vehicles comprising a mix of flat bed, containerized and refrigerated
vehicles covering 16 million KMs and moving a combined weight of 511KT with safety statistics
better than industry average from first year of operations.

Market Share of Products:

• 33% market share of Urea
• Fertilizers are 17% of the input cost for farmers.
• DAP market share of EFERT is 18%

Waving into digitalization:

• Hamsafar, a platform which can be used by dealers to make orders and manage their
balances with company.
• Shandaar Kisaan

Ownership:
Engro Corporation (56.3%)
Free Float (45%)
NBP Fund Mgt (2.04%)
Al Meezan Investment Mgt (1.16%)
Financials:
-Assets value till Dec, 2021: Rs: 133Billion
-EPS 4thQ,2021: Rs: 4.47
-EPS 2021 FY : Rs: 15.78
-Market Share price: 90
-Total Market Cap: Rs: 120 Billion
-Enterprise Value: Rs: 152 Billion
Closing in December
Auditor: A.F Ferguson & Company Chartered Accountant