Engro Corporation

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Engro Corporation
FormerlyEsso Fertilizer Limited (1965–1978)
Exxon Chemical Pakistan Limited (1978–1991)
Engro Chemicals Pakistan Limited (1991–2010)
Company typePublic
PSX: ENGRO
ISINPK0012101017
IndustryConglomerate
Founded1965; 59 years ago (1965)
HeadquartersHarbour Front Building, Clifton, Karachi-75600
Area served
Pakistan
Key people
Hussain Dawood (Chairman), Ahsan Zafar Syed (President & CEO)
ProductsZabardast Urea, SABZ (PVC), Think PVC, etc.
RevenueIncrease Rs. 482.4 billion (US$1.7 billion) (2023)[1]
Increase Rs. 36.1 billion (US$130 million) (2023)
Total assetsIncreaseRs. 802.4 billion (US$2.8 billion) (2023)
Total equityIncrease Rs. 223.1 billion (US$770 million) (2023)
OwnerDawood Hercules[2] (39.97%)
Number of employees
3,510 (2023)
SubsidiariesEngro Energy
Engro Enfrashare
Engro Elengy
Engro Eximp FZE
Engro Fertilizers (56.45%)
Engro Polymer & Chemicals (56.19%)
Engro Vopak Terminals
FrieslandCampina Engro Pakistan (40%)
Websiteengro.com

Engro Corporation (Engro) (Urdu: اینگرو کارپوریشن) is a Pakistani conglomerate headquartered in Karachi.[3][4]

Founded as a fertilizer business in 1965, Engro is one of the largest companies in the country,[5] employing over around 3,000 individuals across the Group.[1] It operates in five industry areas: Food and Agriculture, Energy and Related Infrastructure, Petrochemicals, Telecommunication Infrastructure, and International Trading.[5][6] It's subsidiaries include Engro Energy, Engro Enfrashare, Engro Elengy Terminal, Engro Eximp FZE, Engro Eximp Agriproducts, Engro Fertilizers, Engro Polymer & Chemicals and Engro Vopak Terminal. Other notable associate/joint venture companies include FrieslandCampina Engro.

Engro was the first Pakistani company to become a signatory of the UN Global Compact (UNGC) and adopt the Global Reporting Initiative (GRI) framework for measuring and reporting corporate performance on economic, social, and environmental parameters.[7]

History[edit]

In 1957, Esso-Mobil discovered the region's largest gas reserves near Daharki, Ghotki District, Sindh.[8] Esso Pakistan Fertilizer Company was incorporated in 1965 as a fertiliser business by American company Esso. A total of 75% of the shares were owned by Esso and 25% by the general public.[9] Construction of the urea plant commenced in Daharki in 1966 and production began in 1968.[8] At US $43 million, with an annual production capacity of 173,000 tons, it was the single largest foreign investment by any multinational corporation in Pakistan at the time.[8]

Following Esso's global name change to Exxon the company was renamed Exxon Chemical Pakistan in 1978.[10] In 1991, Exxon divested its fertilizer business globally. The employees of Exxon Chemical Pakistan, in partnership with leading international and local financial institutions, bought out Exxon's 75% equity, thereby forming Engro Chemical Pakistan.[9]

In 2010, Engro Chemical Pakistan renamed itself Engro Corporation and also adopted a new logo to reflect a uniform brand identity across its diverse businesses.[6]

Corruption case[edit]

In 2015, the National Accountability Bureau (NAB) initiated a case against Engro and several other parties, alleging that the contract for the import and distribution of liquefied natural gas (LNG) awarded to Elengy Terminal, a subsidiary of Engro, in 2013, violated the rules of the Public Procurement Regulatory Authority (PPRA). NAB also accused the then Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi of abusing his authority, which they claimed could result in a potential loss of $2 billion to the national exchequer.[11]

Although the case was closed by NAB in 2016, it was reopened in 2018.[12]

Group Companies[edit]

Food & Agriculture[edit]

Engro Fertilizers is the second-largest fertilizer manufacturer in Pakistan, after the Fauji Fertilizer Company.[13] It commissioned EnVen, the world's largest single-train urea plant, in 2011, marking one of Pakistan's largest private sector industrial investments.[8][14]

Engro Eximp Agriproducts, having started its operations in 2011, is a large basmati rice exporter, with USD 31 million worth of exports in 2022.[3][15] It's integrated plant for processing and finishing rice is the largest in the country, with a production capacity of 70,000MT per annum.[3][16]

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.[17][14][17] Its brands Tarang, Olpers, Omung, and Omoré are all known brands in the national dairy market.[18]

Energy & Related Infrastructure[edit]

Engro Energy owns and operates Engro Powergen Qadirpur Limited, a 217-megawatt power plant and Engro’s first initiative in the power sector.[19][20] Engro Energy also holds Engro Powergen Thar, Engro Energy Services, and Sindh Engro Coal Mining Company.[21]

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.[22][23] EETL is recognised as one of the fastest - built and most utilised re-gasification terminals in the world and currently contributes as much as 15% of Pakistan's total gas supply in a year.[24][25]

Petrochemicals[edit]

Engro Polymer & Chemicals, a joint venture with Mitsubishi, is involved in the manufacturing, marketing, and distribution of PVC and other Chlor Alkali products like Caustic Soda, Sodium Hypochlorite, and Hydrochloric Acid.[26][27][28]

Engro Vopak Terminal provides storage for bulk liquid chemicals and liquified petroleum gas (LPG), with an expanded capacity of 82,400 cubic meters.[29] It is a joint venture with Royal Vopak of the Netherlands.[23]

Telecommunication Infrastructure[edit]

Established in 2018, Engro Enfrashare operates more than 3,950 telecommunication towers in Pakistan.[30]

International Trading[edit]

Engro Eximp FZE, a wholly owned subsidiary of Engro Eximp Agriproducts, started its operations in 2022 in the Jebel Ali Free Zone of Dubai. It facilitates global trading opportunities in energy, petrochemicals and other sectors.[31]

Global Partnerships[edit]

Engro is part of two joint ventures: one with Royal Vopak of the Netherlands (1997), creating Engro Vopak Terminal,[23] and another with Mitsubishi, for Engro Polymer & Chemicals.[26] Engro Foods was established in 2005[32] and now has shareholding by FrieslandCampina, thus renamed FrieslandCampina Engro.[33]

Engro continues to venture into businesses with companies such as General Electric,[34] China Machinery Engineering Corporation,[35] Siemens,[36] and the World Bank’s International Finance Corporation.[37] The Group is also a partner of the World Economic Forum (WEF).[38]

Philanthropy[edit]

Engro's social investment programs are managed by Engro Foundation – the single CSR arm for all group companies.[39] In 2012, Engro Foundation launched its annual flagship initiative, “I Am The Change” Awards to celebrate the achievements of 'front line heroes' working for the betterment of people and hard-hit communities.[40] In 2020, the Foundation also signed a three-year memorandum of cooperation[41] 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,[42] the Australian Government Department of Foreign Affairs and Trade (DFAT)[40] and Deutsche Investition- und Entwicklungsgesellschaft (DEG), Engro Foundation has executed programs to promote female literacy, vocational trade, entrepreneurship, and life skills.[40]

Leadership[edit]

Ahsan Zafar Syed was appointed as the 5th President & CEO of Engro Corporation in April 2024.[43] Previous CEOs of Engro Corporation include:

Engro's Board of Directors includes one executive director, five independent directors, and four non-executive directors.[46] Hussain Dawood has been the Engro Corporation Chairman since 2006.[47]

References[edit]

  1. ^ a b "Annual Report 2023" (PDF). Engro Cooperation Limited. 23 February 2024. p. 382. Retrieved 23 May 2024.
  2. ^ "ENGRO - Engro Corporation Limited". Pakistan Stock Exchange (PSX). Retrieved 1 July 2023.
  3. ^ a b c "Company case studies - Engro Corporation Ltd" (PDF). Deutsche Investition- und Entwicklungsgesellschaft (DEG). Retrieved 2 July 2023.
  4. ^ Goldbaum, Christina; Bubola, Emma (22 June 2023). "Shahzada Dawood, Wealthy Executive, Died With Teenage Son Aboard Submersible". The New York Times. ISSN 0362-4331. Retrieved 23 June 2023.
  5. ^ a b c Jamal, Nasir (8 July 2019). "Engro's big dreams". Dawn. Retrieved 1 July 2023.
  6. ^ a b "Engro Chemical to turn into corporation". Dawn. 11 December 2009. Retrieved 1 July 2023.
  7. ^ Ashique Ali Jhatial; Nelarine Cornelius; James Wallace (2014). "Corporate Social Responsibility in Pakistan: Corporate Engagements in the Local Community and their Social Impact". In Fukukawa, Kyoko (ed.). Corporate social responsibility and local community in Asia. London, New York: Routledge. p. 118. ISBN 978-0-415-62765-8.
  8. ^ a b c d "Engro Fertilizers". Manufacturing Today. 18 August 2016. Retrieved 1 July 2023.
  9. ^ a b "Engro Corporation Limited". Business Recorder. 28 December 2016. Retrieved 2 July 2023.
  10. ^ "Engro makes a splash". PT Profit, Pakistan Today (magazine). 14 March 2021. Retrieved 17 May 2021.
  11. ^ Reporter, The Newspaper's Staff (31 July 2017). "Khaqan Abbasi faces NAB inquiry over LNG contract". DAWN.COM.
  12. ^ Report, Staff (3 December 2019). "NAB files reference against Abbasi, Miftah in LNG import case". Profit by Pakistan Today. Retrieved 22 May 2024.
  13. ^ "FFC – Pakistan's market leader in fertilizer manufacturing and marketing". Pakistan & Gulf Economist. 27 December 2020. Retrieved 20 June 2023.
  14. ^ a b Niazi, Abdullah (20 April 2023). "Engro announces massive Rs23bn in dividends. But is this a good thing?". Profit by Pakistan Today. Retrieved 1 July 2023.
  15. ^ "Engro posts 14% increase in revenue generation". Associated Press of Pakistan. 16 February 2023. Retrieved 2 July 2023.
  16. ^ Engro Eximp Agri Products (Pvt) Limited, Gulfood: https://www.gulfood.com/exhibitors/engro-eximp-agri-products-pvt-limited Archived 17 May 2021 at the Wayback Machine
  17. ^ a b Cornall, Jim (4 July 2016). "FrieslandCampina enters Pakistan dairy market through Engro Foods acquisition". Dairy Reporter. Retrieved 2 July 2023.
  18. ^ "Friesland Campina profit rises 37 percent in 2022". The News International (newspaper). Retrieved 2 July 2023.
  19. ^ "Engro Powergen Qadirpur Limited". Business Recorder. 26 June 2019. Retrieved 2 July 2023.
  20. ^ "On energy innovation". Business Recorder. 29 November 2022. Retrieved 18 July 2023.
  21. ^ Proctor, Darrell (2 August 2021). "Cause for Celebration–Plant Provides Power, Economic Boost to Pakistan". POWER Magazine. Retrieved 2 July 2023.
  22. ^ Henderson, James; Gomes, Ieda; Sharples, Jack; Mike, Fulwood; Lambert, Martin (1 September 2020). "Pakistan - Emerging Asia LNG demand". Research Report. Oxford Institute for Energy Studies: 86–100.
  23. ^ a b c "Engro Corporation, Royal Vopak celebrate 25 years of strategic partnership for value creation in Pakistan". Profit by Pakistan Today. 12 January 2023. Retrieved 2 July 2023.
  24. ^ "Engro Elengy Terminal sets new industry records in five years of successful operations – CustomsNews.pk Daily". Retrieved 2 June 2022.
  25. ^ "Engro: Pakistan's first LNG import terminal received 74 vessels last year". LNG Prime. 22 February 2023. Retrieved 18 July 2023.
  26. ^ a b "MHI to License Flue Gas Carbon Dioxide Recovery Technology to Chemical Company in Pakistan". Mitsubishi Heavy Industries. 1 July 2008. Retrieved 2 July 2023.
  27. ^ Ghaffar, Muhammad Harris (16 July 2022). "PACRA upgrades Entity Ratings of Engro Polymer & Chemicals Limited". The Pakistan Credit Rating Agency. Retrieved 2 July 2023.
  28. ^ "Engro Polymer & Chemicals Limited". Business Recorder. 10 February 2023. Retrieved 2 July 2023.
  29. ^ "EVTL Expansion". International Finance Cooperation (IFC). Retrieved 2 July 2023.
  30. ^ Siddiqui, Salman (6 December 2020). "Pakistan boosts work on transmission towers". The Express Tribune. Retrieved 2 July 2023.
  31. ^ Ahmed, Khurshid (28 February 2022). "Subsidiary of Pakistani conglomerate Engro Corporation starts UAE operations". Arab News PK. Retrieved 8 July 2023.
  32. ^ "Engro Foods". CFA Institute Research. Institute of Business Management (IoBM), Student Research. 20 December 2011. Retrieved 2 July 2023.
  33. ^ "Engro Foods name changed". The News International (newspaper). 9 July 2019. Retrieved 18 May 2021.
  34. ^ "GE, Engro sign deal". The News International (newspaper). 27 October 2017. Retrieved 17 May 2021.
  35. ^ "660MW Engro Thar Coal Power Project | China-Pakistan Economic Corridor (CPEC) Authority Official Website". cpec.gov.pk. Retrieved 2 June 2022.
  36. ^ "Engro Energy, Siemens sign MoU". The News International (newspaper). 3 May 2019. Retrieved 17 May 2021.
  37. ^ "IFC pledges $35mln Ijarah financing for Engro project". The News International (newspaper). 9 November 2018. Retrieved 17 May 2021.
  38. ^ "Engro". World Economic Forum.
  39. ^ Eweje, Gabriel, ed. (2014). Corporate social responsibility and sustainability: emerging trends in developing economies. Bingley: Emerald Publishing. p. 179. ISBN 9781784411510.
  40. ^ a b c "Engro Foundation: Empowering women for an equitable future of Pakistan". Global Village Space. 8 March 2021. Retrieved 2 July 2023.
  41. ^ "Engro, Gates Foundation to protect vulnerable groups". Dawn. 25 April 2020. Retrieved 18 May 2021.
  42. ^ "USAID - Engro Foundation Sign MoU to boost agriculture sector in Pakistan". Times of Islamabad (newspaper). 1 August 2016. Retrieved 18 May 2021.
  43. ^ "Ahsan Zafar Syed assumes office of President & CEO of Engro Corporation". Profit by Pakistan Today. 26 April 2024. Retrieved 23 May 2024.
  44. ^ a b "New boss: Game of CEOs subsides as Engro Corp announces new chief". The Express Tribune. 13 May 2015. Retrieved 1 July 2023.
  45. ^ Tirmizi, Farooq (16 April 2012). "Corporate titan: After 27 years at Engro, Asad Umar calls it a day". The Express Tribune. Retrieved 1 July 2023.
  46. ^ "Board of Directors & Committees". Engro Corporation Limited. Retrieved 1 July 2023.
  47. ^ "Hussain Dawood, Chairman, Non-Executive Director". Engro Corporation Limited. Retrieved 1 July 2023.

Further reading[edit]

  • Mirza, Shaukat Raza From Exxon to Engro. Oxford: Oxford University Press, 2005 ISBN 9780195977080. OCLC 57282994
  • Saeed, Mawal Sara Yes Engro – There is Hope: An analysis of Capital Structure of Engro. Lap Lambert Academic Publishing, 2012 ISBN 978-3846580196.

Articles[edit]

  • Khurshid, Anwar & Chaudary, Muddaasir Shafique (2010). Engro Chemical Pakistan Limited—Restructuring the Marketing Division. Asian Journal of Management Cases, 7(2), 135–155. DOI: 10.1177/097282011000700204. OCLC 1017718782

External links[edit]

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