Engro

Fertilizers
 History
Mission
who Statement
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Vision statement

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Health , Safety & Environment

CORE VALUES
Ethics & Integrity

Community & Society

 Engro Business Core Services

Engro is committed to helping

• Fertilizer overcome Pakistan’s energy
• Food crisis by using the country’s
• Energy resources and strengthen the
agri-food sector by equipping
• Petro-Chemical our farmers with the right
tools and capabilities.
The primary business segments of the company are:

Aagri services include site

specific fertilizer
recommendations based on
Straight fertilizers Specialty fertilizers 4rs principles (right source,
right dose, right time and
right method of
application).
Range of Fertilizers
 Significance in the Market

 Engro Fertilizers is the second-largest fertilizer manufacturing company in Pakistan

 Employs over 2,800 individuals across the Group.
 Currently, EFERT is producing 2.2 Mn tons per year.
 Engro Fertilizers incorporates advanced technology and modern practices in its
manufacturing processes, ensuring high-quality fertilizer products that meet international
standards.
 Organizational Structure
leadership

Board of
Board finance Board audit &
directors & Senior
and Board people risk Executive
committees management
investment committee committee committee
committee
 Celebrating diversity, talent
and successes together

• Innovation and Continuous

Organizational Culture Improvement
• Collaboration and Teamwork
• Ethical Practices and Integrity
• Customer-Centric Approach
 SWOT ANALYSIS
Strengths Weaknesses

Opportunities Threats
 Major Competitors
Fauji Fertilizer Bin Qasim

Sitara Chemical Industries Ltd

Mitsubishi Gas Chemical Company

 Pestel Analysis
Factors Sub-Factors Weightage Data Strategy

• •
Political International
Relations •
3
2
During the year, Engro faced an existential threat due to
government default on its contractual obligations. Blatant
Diversifying their supply chains: Company
can reduce their reliance on any one country
• Political Instability • 4 discrimination of the government leading to continued gas or region by sourcing raw materials from
• Government subsidies curtailment to Engro Fertilizer resulted in a cash Shortfall multiple sources.
and regulations of Rs. 10 billion and which impacted the profitability of
Engro Corporation. The consolidated revenue of the Hedging against price fluctuations: Fertilizer
Company stood at Rs. 125 billion compared to 115 companies can use financial instruments like
billion in 2011, while net profit after tax was Rs. 1,333 futures contracts to hedge against the risk of
million as compared to a net profit after tax of Rs. 8,060 price fluctuations caused by political factors
million, a decrease of 83%

• •
Economical •
Price and demand
Exchange rates •
3
4
During 2022, Domestic market witnessed adverse
implications of global economic downturn. However, Engro
Diversifying Product Portfolio: By offering a
range of fertilizer products catering to
• Global economic • 1 Corporation’s standalone revenue increased from PKR 21 different crop types and farming practices,
conditions billion in 2021 to PKR 24 billion in 2022, exhibiting companies can reduce their reliance on the
healthy growth of 14%. Higher revenue was primarily due performance of specific crops.
to higher dividends received Expanding into New Markets: Entering new
markets with growing agricultural sectors
can diversify revenue streams and reduce
reliance on established markets.
 Pestel Analysis
Factors Sub-Factors Weightage Data Strategy
Social • Consumer’s • 2 International DAP prices Conducting public education campaigns: company can educate the public
preferences • 4 decreased to USD 730/T about the benefits of fertilizer use and the importance of sustainable
• Labor practices and • 2 on the back of slowdown agriculture.
work safety in global demand and Treating workers fairly: company can ensure that their workers are safe and
• Sustainability commodity cycle reversal. that their labor practices are ethical by complying with all applicable labor
initiatives laws and implementing fair labor practices.
Communicating their sustainability efforts: company can communicate their
sustainability efforts to the public through their website, social media
channels, and annual reports

Technological • Digitalization and
automation
• Coating and delivery
system
• Bio-fertilizers and
alternative nutrients
• 5 Karachi, Pakistan, Aug Investing in Research and Development: Continuous investment in R&D is
• 3 18, 2016: As the next step crucial to develop innovative fertilizer products and technologies that align
• 2 in Engro’s digital with evolving agricultural practices and sustainability goals.
transformation journey. Adopting Digital Technologies: Embracing digital technologies, such as data
Engro Corporation analytics, artificial intelligence, and IoT (Internet of Things) sensors, can
Limited and Inbox optimize fertilizer production, enhance supply chain management, and
Business Technologies improve customer service.
yesterday entered into an
agreement for industrial
software application
development.

Factors Sub-Factors Weightage
Environmental • Air pollution and
green house gas
emission
• Water availability
and quality
• Water pollution and
nutrients runoff
Legal • Product liability
• Intellectual
property laws like
patent and trade
secret law
• Environmental
regulations
Pestel Analysis
Data
• 4 Due to recent severe flooding in the
• 3 Country. Urea sales decreased to 1,936
• 4 KT compared with 2,295 KT in 2021,
due to a 60-day LTR (Long Term
Turnaround), which was the longest LTR
in the last 50 years.
• 4 With reference to Super Tax
• 2 imposition of 4% on retrospective year
earnings and additional discriminatory
• 5 Super Tax of 6% on selected sectors, the
Group appealed before Sindh High
Court and the matter was decided in
favor of the Group.On an overall basis,
the profitability of Engro Fertilizers
Limited decreased by 24% to PKR 16
billion in 2022 against PKR 21 billion in
2021, impacted by levy of Super Tax.
Strategy
Investing in Environmental Protection Technologies:
Investing in advanced wastewater treatment systems, air
pollution control measures, and energy-efficient
technologies can reduce the environmental footprint of
fertilizer production and operations.
Sustainable Sourcing of Raw Materials: Sourcing raw
materials from sustainable sources and adopting
responsible mining practices can minimize the
environmental specially water pollution impact of fertilizer
products.
Protect intellectual property: Fertilizer companies should
protect their intellectual property by filing for patents and
trade secrets. This can help the company prevent
competitors from using its proprietary technology without
permission.
Stay informed of legal developments: Fertilizer companies
should stay informed of changes in environmental
regulations, product liability law, intellectual property law,
and international trade law. This can be done by
subscribing to legal newsletters, attending industry
conferences, and consulting with legal counsel.
 Thankyou

Fundamentals of Management
Group Members
Hassan Raza
Mazahir Hussain
Qurratulain