Engro Corporation

  (Redirected from Engro Corporation Limited)

Coordinates: 24°48′09″N 67°01′46″E / 24.80246°N 67.02949°E / 24.80246; 67.02949

Engro Corporation (Engro),[1] (Urdu: اینگرو کارپوریشن‎) is a conglomerate headquartered in Karachi.

Engro Corporation
FormerlyEsso Fertilizer Limited (1965-1978)
Exxon Chemical Pakistan Limited (1978-1991)
Engro Chemicals Pakistan Limited (1991-2010)
TypePublic
PSXENGRO
IndustryConglomerate
Founded1965; 56 years ago (1965)
HeadquartersHarbour Front, Clifton, Karachi, Pakistan.
Area served
Pakistan
Key people
Ghias Khan (President & CEO)
RevenueIncrease 248.8 billion (US$1.6 billion) (2020)
Increase 44.4 billion (US$280 million) (2020)
Total assetsIncrease580.487 billion (US$3.6 billion) (2020)
Total equityIncrease 219.595 billion (US$1.4 billion) (2020)
Number of employees
2,687 (2020)
ParentDawood Hercules
SubsidiariesEngro Energy
Engro Fertilizers
Engro Polymer & Chemicals
Engro Vopak Terminals
Engro Elengy
Engro Infiniti
Engro Eximp FZE
Websitewww.engro.com

Founded as a fertilizer business in 1965, it is one of the largest companies in the country that employs over 2,600 individuals across the Group and has operations in a diverse range of businesses. With a core purpose to solve the pressing issues in Pakistan, Engro operates through the following four verticals: Food & Agriculture, Energy & Related Infrastructure, Petrochemicals, and Telecommunication Infrastructure.

Significant Engro subsidiaries include Engro Fertilizers, Engro Eximp Agriproducts, Engro Eximp FZE, Engro Energy, Engro Powergen Qadirpur, Engro Powergen Thar, Engro Elengy Terminal, Engro Vopak Terminal, Engro Polymer & Chemicals and Engro Enfrashare.

Further, the notable Associate/ joint venture companies include FrieslandCampina Engro and Sindh Engro Coal Mining Company.

HistoryEdit

In 1957, Esso-Mobil discovered the region’s largest gas reserves[2] within the Mari District.

In 1965, the company was founded as a fertilizer business by an American company Esso on the Mari Gas field near Daharki, Ghotki District, Sindh, with 75% of the shares owned by Esso and 25% by the general public. [3]

The construction of a urea plant commenced at Daharki in 1966 and production began in 1968. At the US $43 million with an annual production capacity of 173,000 tons, it was the single largest foreign investment by a multinational corporation in Pakistan at the time.

Following the global name change of Esso to Exxon, it was decided to rename the company to Exxon Chemical Pakistan in 1978.[4]

In 1991, Exxon divested 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% equity.[3] This is still perhaps the most successful employee buy-out in the country's corporate history and, subsequently, the company was renamed as Engro Chemical Pakistan Limited.[3]

In 2010, Engro Chemical Pakistan Limited renamed itself Engro Corporation. Engro also adopted a logo change to reflect a uniform brand identity across its diverse businesses.[5]

LeadershipEdit

Ghias Khan was appointed as the 4th President & CEO of Engro Corporation at the end of 2016. Previous CEOs of Engro Corporation include:

  • Khalid Siraj Subhani (2015 - 2016)
  • Ali Ansari (2012 - 2015)
  • Asad Umar (2004 - 2012)

Engro's Board of Directors includes one executive director, four independent directors, and five non-executive directors. Prominent entrepreneur, businessman, and philanthropist, Hussain Dawood have been the Engro Corporation Chairman since 2006.

Group CompaniesEdit

Food & AgricultureEdit

Engro Fertilizers is the second-largest fertilizer manufacturing company in Pakistan. It has the widest portfolio of products and services, covering the full Seed-To-Harvest spectrum with a continuous focus on balanced crop nutrition and increased crop yields. It commissioned the world's largest single-train urea plant – EnVen - in 2011, one of Pakistan's largest private sector industrial investments.

Engro Eximp Agriproducts is one of Pakistan's largest basmati rice exporter, with USD 20 million worth of exports in 2020 alone. It operates an integrated plant for processing rice and has a 70,000MT[6] per annum production capacity and Asia's largest paddy cleaning and drying capacity.

Established in 2006, FrieslandCampina Engro (branded as Engro Foods until July 2019) is a joint venture with Royal FrieslandCampina, and the second-largest dairy company in Pakistan. Its brands Tarang, Olpers, Omung, and Omoré are all leading brands in the national dairy market. Their products are widely distributed across Pakistan.

Energy & Related InfrastructureEdit

Engro Energy Limited owns and operates Engro Powergen Qadirpur Limited, a 217-megawatt power plant and Engro’s first initiative in the power sector. Engro Powergen Qadirpur Limited was listed on the Karachi Stock Exchange in October 2014 where 25% of the shares were offered. Engro Energy also holds Engro Powergen Thar, Engro Energy Services, and Sindh Engro Coal Mining Company.

Engro Elengy Terminal (EETL), a joint venture between Engro Corporation and Royal Vopak of the Netherlands, is the first Liquified Natural Gas (LNG) terminal of Pakistan that started operations in March 2015. Built in a world record time of 332 days, EETL is recognized as one of the fastest built and most utilized re-gasification terminals in the world.[7] It currently fulfills as much as 12% of domestic daily natural gas requirements.

PetrochemicalsEdit

Engro Polymer & Chemicals is the first and only fully-integrated Chlor-vinyl complex in the country, and is a joint venture with Mitsubishi. It is the sole manufacturer of PVC resin and produces Chlor Alkali products like Caustic Soda, Sodium Hypochlorite, and Hydrochloric Acid. It is involved in the manufacturing, marketing, and distribution of PVC (under the brand name ‘SABZ’) and other quality Chlor-Vinyl allied products.

Engro Vopak Terminal serves for storage of bulk liquid chemicals and LPG - with an expanded capacity of 82,400 cubic meters. It is a joint venture with Royal Vopak of the Netherlands.

Telecommunication InfrastructureEdit

Engro Enfrashare started operations in late 2018, and operates more than 1,500 towers all over Pakistan. In 2019, Engro Corporation announced an investment of up to Rs 7.5 billion in Engro Enfrashare[8] to develop potential business opportunities in the telecommunications sector and accelerate the development of the country’s connectivity infrastructure.

Global PartnershipsEdit

Engro established two joint ventures: one with Royal Vopak of the Netherlands in 1997, creating Engro Vopak Terminal, and another with Mitsubishi, called Engro Polymer & Chemicals. Engro Foods was established in 2005 and now has shareholding by FrieslandCampina, thus renamed FrieslandCampina Engro.[9]

The group continues to venture into businesses with global leaders in their fields like General Electric,[10] China Machinery Engineering Corporation,[11] Siemens,[12] and World Bank’s International Finance Corporation.[13]

PhilanthropyEdit

Engro has created long-term social capital by investing into communities using its expertise and resources. Social investment programs are managed by Engro Foundation – the single CSR arm for all Engro companies. In 2012, Engro Foundation launched its annual flagship initiative, “I Am The Change” Awards intended to pay tribute to local change agents who have worked tirelessly to improve the living standards for Pakistan’s poorest of the poor. In 2020, the Foundation also signed a three-year memorandum of cooperation[14] with the Bill and Melinda Gates Foundation to promote the well-being of vulnerable and marginalised segments of society. In collaboration with partners such as USAID,[15] Australian Government Department of Foreign Affairs and Trade (DFAT)[16] and DEG of German Federal Ministry for Economic Cooperation and Development, Engro Foundation has executed programs to promote female literacy, vocational trade, entrepreneurship and vital life skills.

ReferencesEdit

  1. ^ Engro Profile at the Data Portal of the Website of the Pakistan Stock Exchange (PSX): https://dps.psx.com.pk/company/ENGRO
  2. ^ Engro Fertilizers, Manufacturing Today: http://manufacturing-today.com/profiles/engro-fertilizers/
  3. ^ a b c "Engro Corporation Limited – Business Recorder".
  4. ^ "Engro makes a splash". PT Profit, Pakistan Today (magazine). 14 March 2021. Retrieved 17 May 2021.
  5. ^ "Engro Chemical to turn into corporation". DAWN.COM. 11 December 2009.
  6. ^ Engro Eximp Agri Products (Pvt) Limited, Gulfood: https://www.gulfood.com/exhibitors/engro-eximp-agri-products-pvt-limited
  7. ^ Kazim Raza Rizvi (13 January 2021): Engro Elengy Terminal sets new industry records in five years of successful operations, CustomNews.pk: https://customnews.pk/2021/01/13/engro-elengy-terminal-sets-new-industry-records-in-five-years-of-successful-operations/
  8. ^ Jehangir Nasir (2019): Engro Corp to Invest Rs. 7.5 Billion in Telecom Sector Following Q1 Results, ProPakistani.PK: https://propakistani.pk/2019/04/26/engro-corp-to-invest-rs-7-5-billion-in-telecom-sector-following-q1-results/
  9. ^ "Engro Foods name changed". The News International (newspaper). 9 July 2019. Retrieved 18 May 2021.
  10. ^ "GE, Engro sign deal". The News International (newspaper). 27 October 2017. Retrieved 17 May 2021.
  11. ^ CPEC Project: Engro 2x330MW Thar Coal Power Project: http://cpec.gov.pk/project-details/3
  12. ^ "Engro Energy, Siemens sign MoU". The News International (newspaper). 3 May 2019. Retrieved 17 May 2021.
  13. ^ "IFC pledges $35mln Ijarah financing for Engro project". The News International (newspaper). 9 November 2018. Retrieved 17 May 2021.
  14. ^ "Engro, Gates Foundation to protect vulnerable groups". Dawn News (newspaper). 25 April 2020. Retrieved 18 May 2021.
  15. ^ "USAID - Engro Foundation Sign MoU to boost agriculture sector in Pakistan". Times of Islamabad (newspaper). 1 August 2016. Retrieved 18 May 2021.
  16. ^ Engro Foundation: Empowering women for an equitable future of Pakistan, 8 March 2021, Global Village Space: https://www.globalvillagespace.com/engro-foundation-empowering-women-for-an-equitable-future-of-pakistan/