Engro Corporation
FormerlyEsso Fertilizer Limited (1965–1978)
Exxon Chemical Pakistan Limited (1978–1991)
Engro Chemicals Pakistan Limited (1991–2010)
TypePublic
PSX: ENGRO
ISINPK0012101017
IndustryConglomerate
Founded1965 (1965)
HeadquartersHarbour Front Building, Clifton, Karachi-75600
Area served
Pakistan
Key people
Hussain Dawood (Chairman), Pervez Ghias Khan (President & CEO)
RevenueIncrease Rs. 356.4 billion (US$1.2 billion) (2022)
Increase Rs. 46.1 billion (US$160 million) (2022)
Total assetsIncreaseRs. 749.416 billion (US$2.6 billion) (2022)
Total equityIncrease Rs. 268.833 billion (US$930 million) (2022)
OwnerDawood Hercules[1] (39.97%)
Number of employees
2,814 (2022)
SubsidiariesEngro Energy
Engro Fertilizers
Engro Polymer & Chemicals
Engro Vopak Terminals
Engro Elengy
Engro Infiniti
Engro Eximp FZE
Websiteengro.com

Engro Corporation (Engro) (Urdu: اینگرو کارپوریشن) is a Pakistani conglomerate headquartered in Karachi.[2][3]

Founded as a fertilizer business in 1965, it is one of the largest companies in the country.[4] that employs over 2,800 individuals across the Group[5] The principal activity of Engro is to manage investments in subsidiary companies, associated companies and joint venture, engaged in fertilizers, power generation, telecommunications infrastructure, petrochemicals, mining, food, LNG and chemical storages.[4] Engro operates through five verticals focusing on: Food & Agriculture, Energy & Related Infrastructure, Petrochemicals, Telecommunication Infrastructure, and International Trading.[6]

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.

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

History

In 1957, Esso-Mobil discovered the region’s largest gas reserves[8] 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.[9]

The construction of a urea plant commenced at Daharki in 1966 and production began in 1968.[8] At the US $43 million[8] with an annual production capacity of 173,000 tons,[8] it was the single largest foreign investment by a multinational corporation in Pakistan at the time.[8]

Following the global name change of Esso to Exxon, it was decided to rename the company to Exxon Chemical Pakistan in 1978.[10]

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.[9] Subsequently, the company was renamed as Engro Chemical Pakistan Limited.[9]

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.[6]

Group Companies

Food & Agriculture

Engro Fertilizers is the second-largest fertilizer manufacturing company in Pakistan, after the Fauji Fertilizer Company.[11] It commissioned the world's largest single-train urea plant – EnVen - in 2011,[8] one of Pakistan's largest private sector industrial investments.[12] For Supply Chain operations, Engro Fertilizers limited owns the fleet of around 200 containers and flatbed trucks[13] which is operated by their subsidiary called Engro Logistics. Engro Logistics claims to be the safest road Logistics transport service in Pakistan.[13]

Engro Eximp Agriproducts, starting its operations in 2011, is one of Pakistan's largest basmati rice exporter,[2] with USD 31 million worth of exports in 2022.[14] It's integrated plant for processing and finishing rice is the largest in the country[2] and has a production capacity of 70,000MT per annum.[15]

Established in 2006,[16] FrieslandCampina Engro (branded as Engro Foods until July 2019) is a joint venture with Royal FrieslandCampina,[12] and the second-largest dairy company in Pakistan.[16] Its brands Tarang, Olpers, Omung, and Omoré are all leading brands[17] in the national dairy market. Their products are widely distributed across Pakistan.

Engro Energy owns and operates Engro Powergen Qadirpur Limited, a 217-megawatt power plant[18] and Engro’s first initiative in the power sector.[19] Engro Powergen Qadirpur Limited was listed on the Karachi Stock Exchange in October 2014 where 25% of the shares were offered.[18] Engro Energy also holds Engro Powergen Thar, Engro Energy Services, and Sindh Engro Coal Mining Company.[20]

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.[21][22] 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.[23] It currently contributes as much as 15% of Pakistan’s total gas supply during the year.[24]

Petrochemicals

Engro Polymer & Chemicals is the first and only fully-integrated Chlor-vinyl complex in the country,[25] and is a joint venture with Mitsubishi.[26] It is the sole manufacturer of PVC resin and produces Chlor Alkali products like Caustic Soda, Sodium Hypochlorite, and Hydrochloric Acid.[27] It is involved in the manufacturing, marketing, and distribution of PVC (under the brand name ‘SABZ’) and other Chlor-Vinyl allied products.[28]

Engro Vopak Terminal serves for storage of bulk liquid chemicals and LPG - with an expanded capacity of 82,400 cubic meters.[29] It is a joint venture with Royal Vopak of the Netherlands.[22]

Telecommunication Infrastructure

Engro Enfrashare started operations in late 2018, and operates more than 1,500 towers in Pakistan.[30] In 2019, Engro Corporation announced an investment of up to Rs 7.5 billion in Engro Enfrashare[31] to develop potential business opportunities in the telecommunications sector.

International Trading

Engro Eximp FZE, a wholly owned subsidiary of Engro Eximp Agriproducts, started its operations in 2022 in the Jebel Ali Free Zone of Dubai for trading opportunities in energy, petrochemicals and other sectors.[32]

Global Partnerships

Engro established two joint ventures: one with Royal Vopak of the Netherlands in 1997, creating Engro Vopak Terminal,[22] and another with Mitsubishi, called Engro Polymer & Chemicals.[26] Engro Foods was established in 2005[33] and now has shareholding by FrieslandCampina, thus renamed FrieslandCampina Engro.[34] The Group is a partner organisation of the World Economic Forum from Pakistan.[35]

The group continues to venture into businesses with companies such as General Electric,[36] China Machinery Engineering Corporation,[37] Siemens,[38] and the World Bank’s International Finance Corporation.[39]

Philanthropy

Social investment programs are managed by Engro Foundation – the single CSR arm for all Engro companies.[40] In 2012, Engro Foundation launched its annual flagship initiative, “I Am The Change” Awards intended to celebrated the achievements of 'frontline heroes' for the betterment of people and uplifting hard-hit communities.[41] In 2020, the Foundation also signed a three-year memorandum of cooperation[42] 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,[43] Australian Government Department of Foreign Affairs and Trade (DFAT)[41] and Deutsche Investition- und Entwicklungsgesellschaft (DEG), Engro Foundation has executed programs to promote female literacy, vocational trade, entrepreneurship and life skills.[41]

Leadership

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

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

References

  1. ↑ "ENGRO - Engro Corporation Limited". Pakistan Stock Exchange (PSX). Retrieved 1 July 2023.
  2. 1 2 3 "Company case studies - Engro Corporation Ltd" (PDF). Deutsche Investition- und Entwicklungsgesellschaft (DEG). Retrieved 2 July 2023.
  3. ↑ 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.
  4. 1 2 3 Jamal, Nasir (8 July 2019). "Engro's big dreams". Dawn. Retrieved 1 July 2023.
  5. ↑ "Annual Report 2022" (PDF). Engro Cooperation Limited. 15 February 2023. p. 331. Retrieved 3 July 2023.
  6. 1 2 "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. 1 2 3 4 5 6 "Engro Fertilizers". Manufacturing Today. 18 August 2016. Retrieved 1 July 2023.
  9. 1 2 3 "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. ↑ "FFC – Pakistan's market leader in fertilizer manufacturing and marketing". Pakistan & Gulf Economist. 27 December 2020. Retrieved 20 June 2023.
  12. 1 2 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.
  13. 1 2 "Annual Report 2021" (PDF). Engro Fertilizers.com. Engro Fertilizers. 28 February 2022. p. 58. Retrieved 1 July 2023.
  14. ↑ "Engro posts 14% increase in revenue generation". Associated Press of Pakistan. 16 February 2023. Retrieved 2 July 2023.
  15. ↑ 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
  16. 1 2 Cornall, Jim (4 July 2016). "FrieslandCampina enters Pakistan dairy market through Engro Foods acquisition". Dairy Reporter. Retrieved 2 July 2023.
  17. ↑ "Friesland Campina profit rises 37 percent in 2022". The News International (newspaper). Retrieved 2 July 2023.
  18. 1 2 "Engro Powergen Qadirpur Limited". Business Recorder. 26 June 2019. Retrieved 2 July 2023.
  19. ↑ "On energy innovation". Business Recorder. 29 November 2022. Retrieved 18 July 2023.
  20. ↑ Proctor, Darrell (2 August 2021). "Cause for Celebration–Plant Provides Power, Economic Boost to Pakistan". POWER Magazine. Retrieved 2 July 2023.
  21. ↑ 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.
  22. 1 2 3 "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.
  23. ↑ "Engro Elengy Terminal sets new industry records in five years of successful operations – CustomsNews.pk Daily". Retrieved 2 June 2022.
  24. ↑ "Engro: Pakistan's first LNG import terminal received 74 vessels last year". LNG Prime. 22 February 2023. Retrieved 18 July 2023.
  25. ↑ "PM Imran inaugurates PVC plant of Engro Polymer". Dawn. 11 December 2021. Retrieved 2 July 2023.
  26. 1 2 "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. ↑ Nasir, Jehangir (26 April 2019). "Engro Corp to Invest Rs. 7.5 Billion in Telecom Sector Following Q1 Results". Retrieved 2 June 2022.
  32. ↑ Ahmed, Khurshid (28 February 2022). "Subsidiary of Pakistani conglomerate Engro Corporation starts UAE operations". Arab News PK. Retrieved 8 July 2023.
  33. ↑ "Engro Foods". CFA Institute Research. Institute of Business Management (IoBM), Student Research. 20 December 2011. Retrieved 2 July 2023.
  34. ↑ "Engro Foods name changed". The News International (newspaper). 9 July 2019. Retrieved 18 May 2021.
  35. ↑ "Engro". World Economic Forum.
  36. ↑ "GE, Engro sign deal". The News International (newspaper). 27 October 2017. Retrieved 17 May 2021.
  37. ↑ "660MW Engro Thar Coal Power Project | China-Pakistan Economic Corridor (CPEC) Authority Official Website". cpec.gov.pk. Retrieved 2 June 2022.
  38. ↑ "Engro Energy, Siemens sign MoU". The News International (newspaper). 3 May 2019. Retrieved 17 May 2021.
  39. ↑ "IFC pledges $35mln Ijarah financing for Engro project". The News International (newspaper). 9 November 2018. Retrieved 17 May 2021.
  40. ↑ Eweje, Gabriel, ed. (2014). Corporate social responsibility and sustainability: emerging trends in developing economies. Bingley: Emerald Publishing. p. 179. ISBN 9781784411510.
  41. 1 2 3 "Engro Foundation: Empowering women for an equitable future of Pakistan". Global Village Space. 8 March 2021. Retrieved 2 July 2023.
  42. ↑ "Engro, Gates Foundation to protect vulnerable groups". Dawn. 25 April 2020. Retrieved 18 May 2021.
  43. ↑ "USAID - Engro Foundation Sign MoU to boost agriculture sector in Pakistan". Times of Islamabad (newspaper). 1 August 2016. Retrieved 18 May 2021.
  44. 1 2 "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

  • 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

  • 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

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