FINAL PROJECT

FAUJI FERTILIZERS

Group members: Munazza Bibi (581-FMS/BSAF/F20)

Noor-ul-Huda (579-FMS/BSAF/F20)
Bibi Shagufta (571-FMS/BSAF/F20)
Subject: Advance portfolio management
Lecturer: Dr. Tahira Awan
BSAF-11

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 FAUJI FERTILIZER
COMPANY
LIMITED
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Table of Contents
Fauji Fertilizer Company Limited (FFC) ................................................................................... 4

Vision ..................................................................................................................................... 4

Mission ................................................................................................................................... 4

Location of Fauji Fertilizers companies .................................................................................... 5

Products / variants ...................................................................................................................... 6

Exports ....................................................................................................................................... 8

Demand and supply.................................................................................................................... 8

Horizontal Analysis of Balance Sheet........................................................................................ 9

Horizontal analysis of profit and loss ...................................................................................... 11

Vertical Analysis of Balance Sheet .......................................................................................... 12

Vertical Analysis of Profit and Loss......................................................................................... 13

Financial ratios ......................................................................................................................... 14

Risk, Return and Beta of Company and the Market ................................................................ 16

Portfolio Risk & Return ....................................................................................................... 18

Dividend Based Model ............................................................................................................ 20

PESTEL analysis...................................................................................................................... 21

Porter’s five forces ................................................................................................................... 23

Swot analysis ........................................................................................................................... 24

Future growth opportunities ..................................................................................................... 25

Research and development ...................................................................................................... 26

International comparison ......................................................................................................... 27

Conclusion ............................................................................................................................... 29

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 Fauji Fertilizer Company Limited (FFC)
Fauji Fertilizer Company Limited (FFC) is a renowned name in the fertilizer industry, operating
in Pakistan. Established in 1978, FFC has played a vital role in the development of the
agricultural sector in the country. As one of the leading fertilizer manufacturers, FFC has
consistently strived to enhance agricultural productivity, support sustainable farming practices,
and contribute to the overall economic growth of Pakistan. The company's primary product is
urea, which is a crucial nitrogenous fertilizer used to provide essential nutrients to crops,
promoting healthy plant growth and maximizing yields. In addition to urea production, FFC
also produces other fertilizers such as DAP (Di-Ammonium Phosphate) and complex
fertilizers. This diverse product portfolio enables FFC to cater to the varying needs of farmers
across different regions and crop types, further strengthening its market position. The Company
began its operations with an annual production capacity of 570,000 metric tons and today it is
the largest producer of urea in Pakistan with an aggregate production capacity of over 2 million
tons per annum. FFC in 2019 became the first Company to win the first placement in PSX Top
25 Companies Award for 10th consecutive time. FFC is a member of United National Global
Compact, considered a renowned member of the International Fertilizer Industry Association
(IFA) and Arab Fertilizer Association (AFA). FFC holds a diverse investment portfolio
comprising Fertilizer (FFBL), Renewable Energy (FFCEL), Cement (FCCL), Food (FFF),
Technical Services (Olive) and Banking (Askari). Nationally FFC has consistently been ranked
amongst the best companies of Pakistan for over two decades. Overall, Fauji Fertilizer
Company Limited is an industry leader in the fertilizer sector, committed to promoting
sustainable agriculture, supporting farmers, and contributing to Pakistan's food security. With
its focus on innovation, quality, and social responsibility, FFC continues to play a vital role in
the growth and development of the agricultural sector in Pakistan.

Vision:

To be an inspiring, distinguished and globally diversified enterprise with a hallmark of

excellence, trust and innovation.

Mission:

Taking a lead role in the agricultural & industrial development by delivering premium products
and services while maintaining a high level of social and environmental responsibility for all
the stakeholders, thus providing a dynamic and challenging environment for our employees.

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 Location of Fauji Fertilizers companies
 Pakistan
Fauji Fertilizer Company Limited

Head office Rawalpindi

Marketing office Lahore
Urea Plants I & II Goth Machhi
Urea Plant III Mirpur Mathelo
Resident Manager office Karachi

FFC Energy Limited

Head office Rawalpindi
Wind Power Project Jhimpir

Fauji Fertilizer bin Qasim Limited

Head office Islamabad
DAP & Urea Plant Bin Qasim

Fauji Cement Company Limited

Head office Rawalpindi
Cement plant Attock
Cement plant Wah
Cement plant Nizampur

Thar Energy Limited

Head office Karachi
Thar Energy Ltd Plant Thar Parker

 Morocco Company Overview

Pak Maroc Phosphore S.A.

Head office Casablanca

PMPPlantsite Jorf Lasfar

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 Products / variants
Fauji Fertilizer Company Limited (FFC) offers a diverse product portfolio that caters to the
varying needs of farmers. The primary products in FFC's portfolio include:

Fertilizer Products

Urea is a concentrated straight nitrogenous fertilizer that

contains 46% nitrogen, which is a major plant nutrient. Nitrogen
is a vital component of chlorophyll which is necessary for the
photosynthesis process. It is applied to promote vegetative
growth of crops and orchards in splits (basal & top-dressing).

Di-ammonium Phosphate (DAP) belongs to a series of water-

soluble ammonium phosphates that is produced through a
reaction of ammonia and phosphoric acid. DAP is the most
concentrated phosphatic fertilizer containing 46% P2O5 and 18%
N. It is recommended for all crops as basal fertilizer to be applied
at the time of sowing for better root proliferation and inducing
energy reactions in the plants.

SOP is an important source of Potash, a quality nutrient for

production of crops, especially fruits and vegetables. FFC SOP
contains 50% K2O in addition to 18% sulphur, which is an
important nutrient especially for oil seed crops because of its role in
increasing the oil contents.

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 Potassium chloride (commonly referred as Muriate of Potash
or MOP) is the most common potassium source used in
agriculture, accounting for more than 90% of all potash
fertilizers used worldwide. FFC MOP contains 60% K2O and
is used mainly for fertilizing sugarcane, maize, fruit trees,
vegetables and other field crops except tobacco.

Sona Boron is a micronutrient fertilizer in the form of Di-

Sodium Tetra Borate Decahydrate in 3 Kg packing. It is an
essential micronutrient required for plant nutrition, which
plays a vital role in a number of growth processes especially
new cell development, fruit/seed setting, translocation of
sugars, starches, nitrogen and phosphorous, nodule
formation in legumes and regulation of carbohydrate
metabolism.

Sona Zinc is a micronutrient fertilizer in the form of Zinc

Sulphate Monohydrate (27%) in 3 Kg packing. It is an
essential micronutrient required for plant nutrition, which
plays a vital role in a number of growth processes
especially in chlorophyll synthesis, proteins, activation of
enzymes and plays important part in hormonal activity
particularly auxins.

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 Exports
Fauji Fertilizer Company Limited (FFC) has successfully expanded its exports, supplying high-
quality fertilizers to a diverse range of international markets. FFC's export portfolio includes
urea, diammonium phosphate (DAP), and other nitrogen, phosphate, and potassium (NPK)
fertilizers. With a focus on urea, According to FFC's annual report for 2020, the company
exported 1.09 million metric tons of urea to various countries including Asia, Africa, Europe,
and the Americas. In addition to urea, FFC also exports DAP and NPK fertilizers. DAP is a
complex fertilizer that contains nitrogen and phosphorus, which are essential nutrients for plant
growth. FFC exported 35,401 metric tons of DAP in 2020, mainly to African countries such as
Kenya, Tanzania, and Uganda.

These exports include destinations such as India, Bangladesh, Kenya, Turkey, and Brazil,
among others. By adhering to international quality standards and ensuring efficient logistics,
FFC has established itself as a reliable and trusted supplier in the global fertilizer market.
Through its exports, FFC not only strengthens its position as a global player but also contributes
to sustainable agriculture and food security worldwide.

Fauji Fertilizer Company Limited (FFC) implements a comprehensive exports strategy that
focuses on market diversification, product portfolio optimization, strategic distribution
partnerships, stringent quality assurance, and continuous market intelligence. By targeting
growing agricultural markets, adapting its product offerings to meet specific crop requirements,
and establishing strong distribution networks, FFC aims to expand its presence in international
markets. The company's commitment to maintaining high-quality standards, complying with
international regulations, and staying informed about market trends and competitor activities
further enhances its exports strategy. Through these measures, FFC aims to capitalize on export
opportunities, increase market share, and strengthen its position as a leading fertilizer exporter.

Demand and supply

The demand and supply of Fauji Fertilizer Company Limited (FFC) products are influenced by
various factors, including market conditions, government policies, weather patterns, and global
economic trends.

In terms of demand, FFC's products are primarily driven by the agricultural sector's needs,
particularly in Pakistan. Pakistan is an agrarian country, and the agriculture sector contributes
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significantly to the country's GDP. As such, the demand for fertilizers is high, and FFC has a
significant share of the market.

The supply of FFC's products is dependent on the company's production capacity and its ability
to meet demand. FFC has several production facilities in Pakistan, including the Goth Machhi
and Mirpur Mathelo plants, which have a combined annual production capacity of over 2
million metric tons of urea. To ensure an adequate supply of fertilizers, FFC also imports
products to supplement its domestic production. However, the supply can be affected by factors
such as transportation issues, delays in import clearance, and fluctuations in global fertilizer
prices.

Overall, the demand for FFC's fertilizers is expected to remain strong, driven by Pakistan's
growing population and increasing demand for food. FFC is well-positioned to meet this
demand, with a strong production capacity, established distribution networks, and a focus on
innovation and sustainability.

Horizontal Analysis of Balance Sheet

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 Horizontal analysis of profit and loss

Comment on Horizontal Analysis:

If horizontal analysis increases over the years, it suggests that there has been an upward trend
or improvement in the specific metric or financial variable being analysed. The horizontal
analysis shows an increasing trend, it means that the value of the variable being analysed has
been growing or improving over time. This is a positive and favourable news for Fauji
fertilizers.

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 Vertical Analysis of Balance Sheet

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 Vertical Analysis of Profit and Loss

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Comment on Vertical Analysis:

If vertical analysis increases over the years, it indicates that the relative proportion of a specific
item or category has grown compared to the base value. In an income statement, the vertical
analysis shows that the Gross profit has increased over the years, it means that the gross profit
as a percentage of total revenue has grown. This could suggest that the profit earned has risen
relative to the overall revenue generated. Moreover, over the years total assets have also
increased this indicates growth and expansion of Fauji fertilizer.

Financial ratios

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Comment of financial ratio:
Gross profit: Over the year gross profit increases, Gross profit margin is a key indicator of a
company's efficiency in generating revenue from its core operations. An increase in gross profit
indicates that a company is effectively managing its costs, resulting in a higher gross profit
margin.

Net profit increases: Net profit is increasing over the years. An Increase in net profit indicates
that a company is generating higher earnings from its operations. It demonstrates the company's
ability to efficiently manage its costs, control expenses, and generate positive returns.

Liquidity ratio: Over the years liquidity ratio increases, A higher liquidity ratio implies that a
company has more readily available cash or assets that can be easily converted into cash to
meet its short-term obligations. It reflects the company's ability to handle unexpected expenses,
manage working capital, and navigate potential financial challenges or downturns.

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 Risk, Return and Beta of Company and the Market

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Return of company is 0.7% and Market is 0.37% while risk of company is 4.8% and that of
market is 5.8%. A negative beta for the market would mean that the market tends to move in
the opposite direction risk-free asset. A beta of -0.193 implies that when the market goes up,
the stock or portfolio is expected to go down, and vice versa. If the market increases by 1%,
you expect the stock or portfolio with a beta of -0.193 to decrease by approximately 0.193%.

Relative Risk:

Portfolio Risk & Return

Return of Portfolio:

Risk of Portfolio:

Optimal weight of Portfolio:

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Fauji Fertilizer is our company and for making portfolio, we choose another company i.e.,
Engro fertilizers. Before portfolio, the individual returns were 0.7% and 0.52% respectively
but after making portfolio our portfolio return come out to be 0.64%. If the individual return
is 0.7% and the portfolio return is 0.64%, it means that the portfolio has underperformed the
individual investment. suggesting that some investments within the portfolio may have
experienced negative returns or lower returns than the average.

The individual risk is 0.048% and the portfolio risk is 0.0013%, it suggests that the portfolio
has lower risk compared to the individual investment. In this case, the portfolio risk of
0.0013% is significantly lower than the individual risk of 0.048%. This indicates that the
diversification within the portfolio has effectively spread the risk and potentially reduced the
overall volatility of the portfolio. By combining investments with different risk profiles, the
portfolio has achieved a risk level that is lower than that of any individual investment.

Dividend Based Model

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Should we invest in this company?
The dividend growth model, also known as the Gordon growth model, is a method used to
value the stock of a company by estimating its intrinsic value based on expected future
dividends. The model assumes that the value of a stock is equal to the present value of all its
future dividends.

To determine if a stock is undervalued or overvalued, we need to compare its estimated value

with its market value. In the scenario above, the estimated value of the company is $80.22,
while the market value of the stock is $98.71. The estimated value is lower than the market
value, it suggests that the stock may be overvalued. In this case, the estimated value of $80.22
is lower than the market value of $98.71. Based on this information alone, it suggests that the
stock is overvalued.

As the market price of stocks is higher than estimated value it will be riskier to invest in this
company, which means it is favourable to hedge the upcoming risk in short position. If the
stock is overvalued, we should sell the stock and following are the reasons:

Risk reduction: Selling an overvalued stock allows you to lock in any potential gains and
reduce your exposure to a potential price correction.

Capital reallocation: By selling an overvalued stock, you can free up capital to invest in other
potentially undervalued or fairly valued opportunities.

Risk management: Selling an overvalued stock helps manage the risk of holding onto an asset
that may have limited upside potential.

PESTEL analysis
PESTEL analysis is a tool used to analyse the macro-environmental factors that can impact a
company's operations and performance. Here is a PESTEL analysis of fertilizer industry in
Pakistan:

1. Political factors: The fertilizer industry in Pakistan is heavily regulated by the

government, and fertilizer industry operations can be impacted by changes in government
policies and regulations. The government also controls the prices of fertilizers, and any
changes in prices can impact profitability.

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 To fulfill local demand for fertilizers at affordable prices, the Government is providing
subsidy on the production and import of fertilizers. (Shayan Hassan Jafri IGI, 2007)
Investors will be allowed to relocate secondhand plant and machinery, with the same
concession/exemption as applicable to new plants.

Tax relaxation has also been offered by the Government, giving export benefit to suppliers
of capital goods for new/modernization projects involving fertilizer. (Federal Board of
Revenue, 2009).

2. Economic factors: Industry’s financial performance can be impacted by economic

factors such as inflation, exchange rates, and interest rates. The company's sales and
revenue can also be affected by changes in global market demand for fertilizers and
fluctuations in international prices. Overall economic growth and stability in Pakistan drive
the demand for fertilizers, as a thriving agricultural sector relies on fertilizers for increased
productivity. Fluctuations in currency exchange rates can impact FFC's imports of raw
materials and exports of fertilizers, affecting its competitiveness and profitability.
3. Social factors: The demand for fertilizers products is influenced by social factors such
as population growth, urbanization, and changing dietary habits. The company needs to
stay aware of changing consumer preferences and trends to remain competitive in the
market. Although the adverse effect of this industry is very high because of the improper
handling of the waste. Due to this, many diseases like asthma, kidney diseases, hepatitis
etc. are caused. FFC's engagement with local communities and social responsibility
initiatives can impact its reputation and customer loyalty.
4. Technological factors: Advancements in technology can impact fertilizer industry
operations and performance. The company needs to keep up with the latest technologies to
improve efficiency, reduce costs, and remain competitive. For example, FFC has invested
in technology to reduce its environmental impact and improve the quality of its products.
To meet the expectation of fertilizers in the country, a strong technological base is required
in the planning and development of specific engineering and expertise in project
management and execution.
The fertilizer industry is also carrying out several schemes, including energy saving and
de-bottlenecking in their current plants to improve the capacity and reduce the energy
consumption per ton of product.

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5. Environmental factors: Fertilizer industry’s operations can have an environmental
impact, and the company needs to comply with environmental regulations and standards.
The company also needs to consider the long-term environmental impact of its products
and adopt sustainable practices to reduce its carbon footprint. Compliance with
environmental regulations related to emissions, waste management, and sustainable
practices is essential for FFC to minimize its environmental impact and maintain a positive
reputation. Changing weather patterns and the impact of climate change can affect
agricultural practices, crop yields, and demand for specific types of fertilizers.
6. Legal factors: Fertilizer industry needs to comply with various legal requirements, such
as labor laws, tax laws, health and safety, regulations related to the use and handling of
hazardous materials and product quality standards in both domestic and international
markets. Any legal issues or non-compliance can impact the company's operations and
reputation.

Porter’s five forces

1. New entrants’ threat: The fertilizer industry has relatively high barriers to entry due
to factors such as significant capital investment required for setting up manufacturing
facilities, complex distribution networks, and the need for technical expertise. Existing
players like FFC benefit from economies of scale and established brand reputation, which
act as deterrents to new entrants.
2. Threat of existing substitutes: In the agricultural industry, there are various
alternatives and substitutes for fertilizers, including organic fertilizers, crop rotation
techniques, and precision farming practices. However, the widespread use and recognition
of chemical fertilizers, like those produced by FFC, make it less susceptible to the threat of
substitutes.
3. Power of customers: Buyers, mainly farmers and agricultural cooperatives, have some
bargaining power due to the availability of alternative fertilizer suppliers. However, FFC's
strong brand reputation, product quality, and widespread distribution network provide a
competitive advantage, reducing buyer power. Additionally, government policies and
subsidies can influence buyer behavior in the fertilizer market.
4. Power of suppliers: FFC’s continuous and sustainable growth is also attributable to
engaging reputed and dependable suppliers as business partners for supply of raw material,
industrial inputs, equipment, and machinery in addition to supply of debt for meeting

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 working capital and other financial requirements. FFC has developed long-term supplier
relationships and strategic alliances to secure reliable and cost-effective sources of inputs,
mitigating the supplier power to some extent.
5. Competition in the industry: The retail landscape of Pakistan’s fertilizer sector
comprises competitors of differing size and ownership structures. In the case of Urea, our
primary competitors are other indigenous fertilizer manufacturing companies whereas in
case of other fertilizers, the market comprises of large as well as smaller independent
importers. The fertilizer industry in Pakistan is moderately competitive, with several
domestic and international players. FFC faces competition from other major fertilizer
companies. However, FFC has a strong market presence, established distribution channels,
and a diverse product portfolio, enabling it to maintain a competitive edge.

Swot analysis
Strengths:
 Strong financial position.
 State of the art production.
 facilities Established brand name / loyalty.
 Fertilizer products are high in demand by agriculture sector.
 Well established distribution network.
 Technical prowess.
 Development of new and eco-friendly formulations.
 Competent & committed human resources.
 Well diversified investment portfolio.
 10.High barriers to entry in the industry.

Weakness:

 Mature industry with clogged overall demand

 Established competitors’ dealer network hampering market share enhancement.
 Reliance on depleting natural resource
 Narrow product line
 Relatively homogeneous product limiting pricing strategies.

Opportunities:

 Horizontal as well as vertical diversification

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 Increase / value addition in product line covering macro and micronutrients.
 Implementation of energy efficient technologies to conserve gas.
 Exploration of alternative sources of raw material.

Threats:

 Inconsistent Government policies for fertilizer industry including pressures on fertilizer

pricing.
 Depleting natural gas reserves
 Poor farm economics
 Continuous increase in raw material / fuel prices and GIDC settlement
 Provision of gas to competitors at concessionary rates
 Imposition of additional taxes and levies / changes in tax regime for imported fertilizer
 Profit cuts due to continuous increase in operating cost
 Hight level of currency devaluation and current account deficit.

Future growth opportunities

Fauji Fertilizer Company Limited (FFC) has several future growth opportunities that can
contribute to its continued success. Here are some potential areas of growth and opportunities
for FFC:

Expansion into International Markets: FFC can explore further expansion into international
markets to diversify its revenue streams. By leveraging its expertise and reputation in the
fertilizer industry, FFC can tap into emerging markets with growing agricultural sectors and a
demand for high-quality fertilizers.

Product Innovation and Diversification: FFC can focus on product innovation and
diversification to cater to evolving market demands and emerging trends. This could include
developing specialized fertilizers tailored for specific crops, introducing environmentally
friendly and sustainable products, and exploring new nutrient formulations to improve crop
yields and optimize fertilizer usage.

Digital Transformation and Precision Agriculture: Adopting digital technologies and

precision agriculture practices can provide FFC with opportunities to enhance operational
efficiency, optimize resource utilization, and provide data-driven solutions to farmers. This can
involve leveraging data analytics, remote sensing, and IoT devices to offer precision
fertilization recommendations and agricultural advisory services.
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Strategic Collaborations and Partnerships: FFC can seek strategic collaborations and
partnerships with research institutions, agricultural organizations, and technology providers.
Collaborations can help drive research and development efforts, improve product offerings,
access new markets, and expand distribution networks.

Focus on Sustainable Practices: As environmental concerns grow, FFC can position itself as
a leader in sustainable agriculture practices. By promoting the responsible use of fertilizers,
investing in renewable energy sources, reducing emissions, and implementing eco-friendly
manufacturing processes, FFC can align itself with the growing demand for environmentally
conscious solutions.

Government Initiatives and Policies: Government support and policies related to agriculture,
subsidies, and infrastructure development can create favorable conditions for FFC's growth.
FFC can actively engage with policymakers to advocate for supportive measures and align its
strategies with national agricultural development plans.

Outlook of international fertilizer market:

The global demand for fertilizer appears largely positive in the long run, owing to production
of essential compounds, technological advances in crop production, increasing population and
rising affluence. This would also contribute toward global economic stability and food security.
The increased awareness to protect the environment is expected to lead towards development
of environment-friendly fertilizers. This is likely to drive the growth of the organic fertilizer
market, as well as the development of new, more efficient technologies to produce synthetic
fertilizers.

Overall, FFC has opportunities to leverage its strengths, invest in innovation, expand
geographically, and align with sustainable practices to drive future growth and maintain its
position as a leading player in the fertilizer industry.

Research and development

Research and development (R&D) is a crucial aspect of the Fauji Fertilizer Company Limited
(FFC) strategy. FFC has a dedicated R&D team that focuses on developing innovative products,
improving manufacturing processes, and enhancing crop nutrition management practices.

FFC's R&D efforts are primarily focused on developing new and improved fertilizers tailored
for specific crop requirements. The company has established a state-of-the-art research facility

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equipped with advanced analytical instruments and equipment. This facility is staffed by a team
of experienced researchers who collaborate with leading agricultural research institutions to
develop new fertilizer formulations and crop nutrition management practices.

In addition to developing new fertilizers, FFC's R&D team also works on improving
manufacturing processes to enhance efficiency and reduce environmental impact. The
company has implemented several sustainable practices, such as utilizing waste heat recovery
systems, using renewable energy sources, and reducing water consumption in production
processes.

FFC also invests in training and development programs to ensure that its employees remain up-
to-date with the latest technologies and agricultural practices. This focus on continuous
learning and development enables FFC to stay at the forefront of the fertilizer industry and
provide farmers with the best possible crop nutrition solutions.

Overall, FFC's commitment to R&D has contributed to its success in the fertilizer industry. By
investing in research and innovation, FFC can continue to develop high-quality fertilizers and
sustainable practices, while enhancing operational efficiency and driving growth.

International comparison
Fauji Fertilizer Company Limited (FFC) is a leading fertilizer manufacturer in Pakistan and
competes with other global fertilizer companies in the international market. Here is a brief
comparison of FFC with some of the world's largest fertilizer companies.

It is worth noting that FFC's market share and revenue are significantly smaller than some of
the largest global fertilizer companies, such as Nutrient and Yara International. However, FFC
is still a significant player in the South Asian fertilizer market and has a strong brand reputation
in Pakistan.

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 Fauji Fertilizer
Company Limited Yara
Aspect (FFC) International Nutrien Mosaic CF Industries

Global
Global operations, operations,
Primarily operates in Global operations significant prominent Global operations,
Market Presence Pakistan in over 60 countries presence presence significant presence

Wide range of
Offers urea, DAP, fertilizers, specialty Broad range of Phosphate and Nitrogen and
Product Range and NPK blends, and products, fertilizers and potash phosphate
Innovation other fertilizers innovations crop inputs fertilizers fertilizers

Focus on
Sustainability and Emphasizes Strong commitment sustainable Sustainable Emphasizes
Environmental sustainability with a to sustainability, agriculture and practices and sustainability,
Stewardship localized focus global initiatives solutions initiatives initiatives for ESG

One of the
Market Leadership Holds a significant One of the world's One of the largest world's largest One of the largest
and Financial market share in largest fertilizer global agricultural phosphate global nitrogen
Performance Pakistan companies input companies producers producers

Extensive
Distribution Well-established distribution Wide Extensive
Network and Distribution network global distribution network, distribution distribution
Customer Support within Pakistan network customer support network network

Engages in Collaborates Focus on Research and

Research and knowledge exchange globally, farmer innovation and development,
Development activities with a training, digital technology knowledge Invests in research
(R&D) localized focus tools advancement exchange and development

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 Community
Corporate Social Engages in CSR involvement and CSR initiatives Emphasizes CSR,
Responsibility initiatives within CSR activities and sustainability and community community support,
(CSR) Pakistan community support initiatives support education programs

Conclusion
FFCL is a growth-oriented leading fertilizer company in Pakistan with highest market share
and its focus is to deliver performance through excellence in the fertilizer industry by utilizing
its strengths. By using them wisely the company wants to maximize returns to its shareholders
and provide optimum value to all stakeholders. Through exploring the opportunities, the
company is trying to sustain production through the application of innovative technology to
obtain maximum productivity in the presence of curtailment of gas by the government for
longer periods. However, FFCL also takes measures to mitigate the threats that it faces.
However, due to a shortage of gas in the country and new urea plants, further expansion and
growth opportunities for the company are limited in the production of urea. After analyzing the
political, economic, social, and technological factors it can be concluded that the external
environment of the country is highly compatible with growth in the fertilizer sector. There are
some fears but the strong performance of FFCL along with other companies in the fertilizer
sector is expected to continue in view of rising DAP and urea prices, along with substantially
higher demand for fertilizers from the agricultural sector. By providing good quality fertilizers
and services to its customers and by having the passion to excel, take on new challenges, set
fresh goals and take initiatives for development of profitable business ventures, FFCL is
committed to play its vital role in industrial and agricultural advancement in Pakistan.

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