Engro Fertilizers

Fertilizer company in Pakistan
Engro Fertilizers
Company typePublic
Traded as
PSX: EFERT
IndustryFertilizer
Founded2010; 14 years ago (2010)
HeadquartersKarachi-75600, Pakistan
Key people
Ali Rathore (CEO)
ProductsZarkhez, Zingro, Zorawar, Zoron
RevenueIncrease Rs. 223.704 billion (US$770 million) (2023)
Increase Rs. 55.691 billion (US$190 million) (2023)
Net income
Increase Rs. 26.191 billion (US$91 million) (2023)
Total assetsIncrease Rs. 160.843 billion (US$560 million) (2023)
Total equityIncrease Rs. 47.903 billion (US$170 million) (2023)
OwnerEngro Corporation (56.45%)[1]
Number of employees
1,214 (2023)
ParentEngro Corporation
Websiteengrofertilizers.com
Footnotes / references
Financials As of 31 December 2023[update] [2]

Engro Fertilizers (Urdu: اینگرو فرٹیلائزرز) is a Pakistani fertiliser manufacturing company headquartered in Karachi. It is a subsidiary of Engro Corporation.[1]

History

Engro Fertilizers was demerged from the parent company Engro Corporation in 2010.[1][3]

In June 2011, Engro commissioned the Enven plant at a cost of $1.1 billion.[4][5] It was built under the 2001 Fertilizer Policy of Pakistan in which the Government of Pakistan guaranteed gas supply at a reduced rate for ten years.[5][6] The contract was signed with Sui Northern Gas Pipelines Limited, which defaulted on their contract and in 2013 Engro claimed Rs. 34 billion in damages.[7]

In December 2013, Engro was listed on the Karachi Stock Exchange, following an initial public offering at a strike price of Rs. 28.25.[8][9][10]

In February 2015, Engro Fertilizers acquired Engro Eximp Private Limited from Engro Corporation.[11][6] Engro Eximp imports diammonium phosphate (DAP) fertilizer in Pakistan.[6]

In June 2016, Engro Corporation sold 28 percent of its stake in Engro Fertilizers to private investors for $185 million.[12][13]

Production

Pakven 600

Pakven 600 was commissioned in September 1993, which increased Engro's urea production capacity from 268,000 tons to 600,000 tons per annum.[14] It was an imported second-hand plant which was installed at a cost of $130 million.[14] In July 1995, Engro further increased its capacity by 150,000 tons per annum at a cost of $23 million.[14]

The plant has outlived its useful life.[15] In 2021, Engro increased its capacity from 500,000 tons to 780,000 tons per annum and a year later further expanded it to 950,000 tons per annum.[15]

EnVen

The EnVen plant is located in Daharki.[15] The construction of the plant began in 2007.[15] It was commissioned in 2011 at a cost of $1.1 billion.[16] It was built under the provisions of the 2001 fertilizer policy in which the Government of Pakistan gave a guarantee of subsidized gas for a period of ten years.[6][12] The plant has a designed annual production capacity of 1.3 million tons of urea fertilizer.[17]

NPK Plant

Zarkhez NPK plant is located at Port Bin Qasim, Karachi.[15] It was commissioned in 2000 and has an annual production capacity of 100,000 metric tons.[15][18]

References

  1. ^ a b c Hussain, Dilawar (15 May 2017). "Fertiliser industry faces up to tough times". Dawn. Pakistan. Retrieved 18 June 2021.
  2. ^ "Engro Fertilizers Annual Report 2023" (PDF). Retrieved 18 May 2024.
  3. ^ Mariam Ali Baig (July–August 2018). "Pressing reset on agricultural productivity". Dawn. Pakistan. Retrieved 17 June 2021.
  4. ^ "Engro EnVen urea plant announces COD". Brecorder. 25 June 2011.
  5. ^ a b "Blue-chip woes: Was Enven a strategic mistake?". The Express Tribune. 27 June 2011.
  6. ^ a b c d Hussain, Dilawar (30 March 2015). "Change in Enven's fortunes". DAWN.COM.
  7. ^ "Absence of gas: Engro claims Rs34 billion in damages from public utility". The Express Tribune. 18 January 2013.
  8. ^ "Engro Fertilizers conducts first phase of IPO successfully". The Express Tribune. 21 November 2013. Retrieved 7 November 2021.
  9. ^ "Public subscription: IPO of Engro Fertilizers entering final phase". The Express Tribune. 3 December 2013. Retrieved 7 November 2021.
  10. ^ Hussain, Dilawar (15 December 2013). "Engro Fertiliser IPO at Rs28.25 per share". Dawn. Pakistan. Retrieved 7 November 2021.
  11. ^ "Acquisition: Engro Fertilizers to buy commodity trading business for Rs4.4b". The Express Tribune. 18 February 2015.
  12. ^ a b Tirmizi, Farooq (26 December 2016). "Return of the Billion-Dollar Gamble". Profit by Pakistan Today.
  13. ^ Tirmizi, Farooq (17 December 2018). "Engro's Rs60 billion question". Profit by Pakistan Today.
  14. ^ a b c "Corporate finance in Pakistan: Case studies from an emerging market". [Karachi]: Oxford University Press: Lahore University of Management Sciences. 13 May 1999 – via Internet Archive.
  15. ^ a b c d e f Khan, Muhammad Raafay (29 December 2022). "Engro Fertilizers increases base plant urea capacity to 950,000 tons". Profit by Pakistan Today.
  16. ^ "World's largest urea plant comes online". The Express Tribune. 24 June 2011.
  17. ^ Hussain, Dilawar (17 August 2015). "Engro Fertiliser: Acquisition improves earnings". DAWN.COM.
  18. ^ "50 years of accomplishment-Engro turns 50 – Business Recorder".

External links

  • Official website
  • v
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People
Board of directors
  • Hussain Dawood
  • Abdul Samad Dawood
  • Sabrina Dawood
  • Muhammad Abdul Aleem
  • Shabbir Hussain Hashmi
  • Rizwan Diwan
  • Sultan Mohammad Pervez Ghias
  • Khawaja Iqbal Hassan
  • Henna Inam
  • Ahsan Zafar Syed
Chief executives
  • Asad Umar (2004–2012)
  • Ali Ansari (2012–2015)
  • Khalid Siraj Subhani (2015–2016)
  • Ghias Khan (2016–2024)
  • Ahsan Zafar Syed (2024–present)
Subsidiaries
  • Engro Energy
    • Gel Utility Ltd. (Nigeria) (45%)
  • Engro Elengy Terminal (56%)
  • Engro Vopak Terminal (50%)
  • Engro Fertilizers (56.27%)
  • Engro Eximp Agriproducts
  • Engro Polymer & Chemicals
  • Engro Eximp FZE
  • Engro Enfrashare
Associate/ joint venture companiesFormer
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Pakistan Companies of the KSE 100 Index
As of February 2024