Rose

by | Mar 19, 2018 | Rose

How Can We Help?
You are here:
< Back

Engro Fertilizers (Urdu: اینگرو فرٹیلائزرز) is a Pakistani fertiliser manufacturing company headquartered in Karachi with its manufacturing facility located at Daharki, and a facility located at Port Qasim as well.[3][4] It is a subsidiary of Engro Corporation.[1] It has 35% market share of the Pakistani fertilizer market as of 2023.[5]

History

Engro Fertilizers was demerged from the parent company Engro Corporation in 2010.[1][6]

In June 2011, Engro commissioned the EnVen plant at a cost of $1.1 billion.[7][8] 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.[8][9] 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.[10]

In December 2013, Engro was listed on the Karachi Stock Exchange, following an initial public offering at a strike price of Rs. 28.25.[11][12][13]

In February 2015, Engro Fertilizers acquired Engro Eximp Private Limited from Engro Corporation.[14][9] Engro Eximp imports diammonium phosphate (DAP) fertilizer in Pakistan.[9]

In June 2016, Engro Corporation sold 28 percent of its stake in Engro Fertilizers to private investors for $185 million.[15][16]

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.[17] It was an imported second-hand plant which was installed at a cost of $130 million.[17] In July 1995, Engro further increased its capacity by 150,000 tons per annum at a cost of $23 million.[17]

The plant has outlived its useful life.[18] 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.[18]

EnVen

The EnVen plant is located in Daharki.[18] The construction of the plant began in 2007.[18] It was commissioned in 2011 at a cost of $1.1 billion.[19] 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.[9][15] The plant has a designed annual production capacity of 1.3 million tons of urea fertilizer.[20] In 2023, Engro Fertilizers reported a record urea production of 2.3 million tonnes, a 18.3% increase over previous year's production.[21] In June 2024, Engro completed the largest turnaround of the EnVen plant over a period of 2 months, with investment of around $50 million and a manpower of more than 6000 people.[22]

NPK Plant

Zarkhez NPK plant is located at Port Bin Qasim, Karachi.[18] It was commissioned in 2000 and had an annual production capacity of 100,000 metric tons.[18][23] The plant has since been debottlenecked and production capacity increased to 145,000 metric tons.[24]

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. ^ Seyyed, Fazal Jawad; Ashfaq, Hafsa (6 December 2019). "Engro Fertilizers Limited: Cost of Capital and Valuation". Asian Case Research Journal. 23 (02): 313–330. doi:10.1142/S0218927519500123 – via worldscientific.com (Atypon).
  4. ^ "Engro Fertilizers Website".
  5. ^ "Engro Fertilizers Annual Report 2023" (PDF).
  6. ^ Mariam Ali Baig (July–August 2018). "Pressing reset on agricultural productivity". Dawn. Pakistan. Retrieved 17 June 2021.
  7. ^ "Engro EnVen urea plant announces COD". Brecorder. 25 June 2011.
  8. ^ a b "Blue-chip woes: Was Enven a strategic mistake?". The Express Tribune. 27 June 2011.
  9. ^ a b c d Hussain, Dilawar (30 March 2015). "Change in Enven's fortunes". DAWN.COM.
  10. ^ "Absence of gas: Engro claims Rs34 billion in damages from public utility". The Express Tribune. 18 January 2013.
  11. ^ "Engro Fertilizers conducts first phase of IPO successfully". The Express Tribune. 21 November 2013. Retrieved 7 November 2021.
  12. ^ "Public subscription: IPO of Engro Fertilizers entering final phase". The Express Tribune. 3 December 2013. Retrieved 7 November 2021.
  13. ^ Hussain, Dilawar (15 December 2013). "Engro Fertiliser IPO at Rs28.25 per share". Dawn. Pakistan. Retrieved 7 November 2021.
  14. ^ "Acquisition: Engro Fertilizers to buy commodity trading business for Rs4.4b". The Express Tribune. 18 February 2015.
  15. ^ a b Tirmizi, Farooq (26 December 2016). "Return of the Billion-Dollar Gamble". Profit by Pakistan Today.
  16. ^ Tirmizi, Farooq (17 December 2018). "Engro's Rs60 billion question". Profit by Pakistan Today.
  17. ^ 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.
  18. ^ 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.
  19. ^ "World's largest urea plant comes online". The Express Tribune. 24 June 2011.
  20. ^ Hussain, Dilawar (17 August 2015). "Engro Fertiliser: Acquisition improves earnings". DAWN.COM.
  21. ^ "Engro Fertilizers achieves record urea production in 2023 to ensure food security for Pakistan | engro corporation". www.engro.com. 20 February 2024. Retrieved 26 June 2024.
  22. ^ Release, Press (21 June 2024). "Engro Fertilizers completes largest-ever EnVen Plant turnaround with investment of around $50 million". Profit by Pakistan Today. Retrieved 26 June 2024.
  23. ^ "50 years of accomplishment-Engro turns 50 – Business Recorder".
  24. ^ "Engro Fertilizers Annual Report 2023" (PDF).

External links

Categories
Table of Contents