Table of Contents

PRODUCTS:...................................................................................................................
.....................
6Brands: ......................................................................................................................
........................
7SIZE
OFINDUSTRY..................................................................................................................
.............
8GEOGRAPHICAL
LOCATION..................................................................................................................
9FACTORIES
LOCATION ...............................................................................................................
9WAREHOUSES ............................................................................................................
..............

9TOTAL
PRODUCTION...................................................................................
......................................
10TOTAL
EMPLOYMENT .................................................................................
......................................
10TOTAL
EXPORT ..........................................................................................
.......................................
10NUMBER OF NEW PLANTS AND NUMBER OF PLANTS CLOSED
DOWN..................................................

10TOTAL
IMPORTS .........................................................................
......................................................
11FIRST YEAR AFTER THE FORMATION OF
INDUSTRY .............................................................................
12STATSUS OF THE INDUSTRY IN 1971 (EAST PAKISTAN
SEPARATION) ....................................................

12IMPACT OF
NATIONALIZATION ..........................................................................
................................
12CHRONOLOGICAL HISTORY OF THE FERTILIZER SECTOR IN
PAKISTAN ...................................................

13Fauji Fertilizer
Company..........................................................................
...........
16Introduction: ................................................................
..........................................................
16Engro Chemicals
PakistanLTD ...........................................................................................................
19Introduction .............................................................................................................
..............
19Dawood Hercules Chemicals
Limited..................................................................................................
22CRITERIA FOR SELETING THESE COMPANIES AS MAJOR
PLAYERS .........................................................
25IMPACT ON THE
INDUSTRY ...............................................................................................................
25TRADE
ASSOCIATION ...............................................................................................................
.........
25REGULATIONS OF OTHER INTERNATIONAL
TREATIES ..........................................................................
26PAKISTANI
INDUSTRY ....................................................................................................................
....
27OTHER COUNTRIES ..................................................................................

ECOMONIC IMPACT OF WTO..............................................................

...............................................

28IMPCT ON PAKISTANI ECOMOMY ..................................................

..................................................
28ECOMONIC IMPACT OF WTO IN OTHER
COUNTRIES ...........................................................................
29DIFFERENCE OF IMPACT ...........................................................................................
.........................
29INCENTIVES OFFERED ..............................................................................................
.........................
30INCENTIVES OFFERED
IN PAST ...........................................................................................................
30INCENTIVES THAT INDUSTRY
ASKING FOR ..........................................................................................
30BENEFITS
BY THE INDUSTRY ........................................................................................................
......
31INCENTIVES OFFERED TO THE OTHER
COUNTRIES...............................................................................

31PRODUCTION PROCESS
OF FERTILIZERS...............................................................................
........
32UREA MANUFACTURING PROCESS ...........................................................................
................
32SINGLE SUPER PHOSPHATE MANUFACTURING
PROCESS ...........................................................

34DETERMINANTS OF FIXED COSTS...................................

....................................................................
35DETERMINANTS OF VARIABLE COSTS .............................
....................................................................
35PRICE LIST OF
PRODUSTS ..................................................................................................................

35Engro Chemicals Company Ltd: ...................................................

.............................................

35Fauji Fertilizer Company Ltd. .......................................................

............................................
36Dawood Hercules Company Ltd.: .................................................
............................................
36Fatima
Fertilizer Company Ltd.: .................................................................
........................................
36PRICING
MODEL .........................................................................................................................
......
37ECONOMIC IMPACT ON THE INDUSTRY......................................................................
........................
38HUMAN RESOURCE ISSUES
IN INDUSTRY ...........................................................................................
38HURDLES
IN MARKETING: ............................................................................................................
.....
38FINANCING EASILY AVAILABLE ..................................................................................
.........................
39IMPACT OF POLITICAL PARTIES .................................................................................
.........................

39TRADE ISSUES RELATED TO FERTILIZER

INDUSTRY...............................................................................
39PROPOSALS GIVEN BY PEOPLE OF FERTILIZER
INDUSTRY .....................................................................
40OUR
PROPOSALS .................................................................................................................
.............
41HUMAN RESOURCE REQUIREMENTS OF FERTILIZER
INDUSTRY............................................................
41SORT OF PEOPLE
NEEDED..................................................................................................................

42SPECIFIC TRAINING INSTITUTIONS ...........................................................................

..........................
43Supplier Power .........................................................................................................
........................
44Buyers Power ...........................................................................................................
........................
45Potential Entrants.....................................................................................................
........................
45Substitutes ..............................................................................................................
.........................
46Rivalry.......................................................................................................................
.......................
46MARKET ...................................................................................................................
........................
46TREND
ANALYSIS .....................................................................................................................
.........

47Political Trend:..............................................................
..........................................................
47Economical Trend: ....................................................................................................
.............
47Social Trends: ...........................................................................................................
..............
48Technological Trend: ................................................................................................
...............
48Legal Trend:
..........................................................................................................................
48Environmental
Trend:...........................................................................................................
49Demographical
Trend:...........................................................................................................

50PORTERS FIVE FORCES

MODEL.....................................................................................................
50Supplier Power .........................................................................................................
..............
50Buyers
Power .........................................................................................................................
50Potential Entrants ....................................................................................................
...............
51Substitutes ..............................................................................................................
...............
51Rivalry .....................................................................................................................
...............
52SWOT ANALYSIS
.............................................................................................................................
52Strengths:.................................................................................................................
..............
52Weakness: ...............................................................................................................
...............
52Opportunities: ..........................................................................................................
..............
53Threats:....................................................................................................................
..............
53SWOT

I MATRIX
............................................................................................................................
54SWOT

i
matrix...........................................................................................................................
......

55STRATGIC
PLAN ............................................................................................................................
....
56Bibliography ............................................................................................................
.........................
57

PRODUCTS
1.Urea
,2.Di-Ammonium Phosphate (DAP
3.Calcium Ammonium Nitrate (CAN)
4.Ammonium Sulphate (AS)
5Single Super Phosphate (SSP)
6.Nitro phosphate (NP)

7.Sulphate of Potash
8.Zinc Sulphate
1.

Urea:
More than 90% of the world
s production is destined for use as a nitrogen-releasefertilizer. Urea has the highest
nitrogen content of all solid nitrogenous fertilizers incommon use (46.7%).
2.Di-Ammonium Phosphate (DAP):
It contains 46% P2O5 and 18% N. it is water soluble. It is a good source of P
fertilizerfor all crops. Good source for problem soils. Overall, it suits to about
90% soil of thecountry.3
3. Calcium Ammonium Nitrate (CAN):
Calcium ammonium nitrate (CAN) contains 27 % N and 20 % of ground limestone.
Thishas a rapid as well as permanent effect. The granulation of this fertilizer
ensures a quick and exact dosing.
4. Ammonium Sulphate (AS)
(NH4) 2SO 4, is an inorganic salt. It is used largely as an artificial fertilizer for
alkalinesoils. It lowers the pH balance of the soil, while contributing essential
nitrogen for plant growth.
5.Single Super Phosphate:
Superphosphate is a fertilizer produced by the
action of concentrated sulfuric acid onpowdered phosphate rock.
6.Nitro phosphate (NP)
It provides 22% nitrogen, and 20% phosphorus.

Nitrogen is a primary nutrient that really makes plants

"grow. Phosphorus is a primary nutrient that encourages
rooting, blooming and fruit production in plants.

7.Sulphate of Potash:
Potassium sulphate (K2 SO 4)) is a non-flammable white crystalline salt which
issoluble in water. This chemical is commonly used in fertilizers, providing
bothpotassium and sulphur

1.

Engro Chemical Company Ltd2.

Fauji Fertilizer Company Ltd.3.

Dawood Hercules4.

Fatima Fertilizer Company Ltd.5.

National Fertilizer Corparation

1.

FERTILIZER BY ENGRO CHEMICAL PAKISTAN LTD.

Nitrogenous Fertilizers:

Engro UREA

is a trusted, high-grade fertilizer which is suitable for all crops on alltypes of soils.
Engro Urea is an excellent source of Nitrogen for the vast majority of cultivated soils
of Pakistan.
Phosphatic Fertilizers

Engro DAP:
contains 46% P2O5 and 18% N. It is a good source of P fertilizer for allcrops. It is an
equally good source on problem soils. On an overall basis it suits toabout 90%
soils of the country.

Engro Zorawar:
is one of the highest grade phosphatic fertilizers. It is acidic inreaction more than
90% is water soluble. It is a beneficial fertilizer for all crops onall soils of Pakistan
and produces excellent results on alkaline soils, due to its acidic

Engro Phosphate:
is brown colored mono ammonium phosphate with 11%nitrogen and 52%
phosphorus. It is being marketed as relatively cheaper alternateof DAP.
Blended Fertilizers

Engro Zarkhez:
is homogenously granulated fertilizer which maximizes crop yieldby providing
balanced nutrition for a wide variety of crops through the uniformavailability of
Nitrogen, Phosphorous and Potassium. Fertilizers have low moisturecontent, high
crush strength; 2mm-4mm granule size and free flowing nature -attributes which
ensure excellent handling and application characteristics.

Engro NP:
It provides 22% nitrogen, and 20% phosphorus. ECPL entered into NPbusiness in
2005 to Primary focus area for ENP marketing is South Zone (Sind).
Micro Nutrients:
Zingro:Zinc Sulphate, a highly effective, primarily targets Zinc deficiency in
cropslike Rice, Potato, Maize, Sugar cane, Wheat, Cotton, vegetables and fruits.
Zingro

increases crop yield and enhances crop appearance.

2.

FUJI FERTILIZER COMPANY LTD.

Sone Urea:

most widely used fertilizer in the country. Fertilizer is white in color,free flowing,
readily soluble in water and both contain 46% Nitrogen. Because of itshigh
solubility, it is suitable for solution fetilizers.

Sona DAP:
is the most concentrated phosphatic fertilizer containing 46% P 2O5 and18%
Nitrogen. It is the widely used phosphatic fertilizer in the world as well asPakistan.
The solubility of DAP is more than 95%. Its nitrogen to phosphoris ratio (1 : 2.5 )
makes it an ideal fertilizer, to meet the initial requirement of most of thecrops.

Sona SOP : This fertilizer is an important source of Potash, which is a qualitynutrient

for production of crops especially fruits and vegetables. Potash improvesthe
resistance of the plants against pests, diseases and stresses like water.

3.Dawood Hercules Chemicals Limited.

Bubber Sher
: The Company's principal activity is to produce urea fertilizer.The Company markets
its urea under the brand name Bubber Sher.
4.

Fatima Fertilizer Company Limited:

Nitro Phosphate

Nitrogen Phosphorous Potassium

Calcium Ammonium Nitrate

Urea
5.

National Fertilizer Corporation:

Calcium Ammonium Nitrate

Nitro Phosphate

Single Super Phosphate

Zinc Sulphate
SIZE OF INDUSTRY
Number of Compaines
Number of Factories/Plants

6
14

GEOGRAPHICAL LOCATION
FACTORIES LOCATION
CITIES NUMBER OF FACTORIES
Bin Qasim 2Sheikhupura 1Sadiqabad, Rahim Yar Khan 2Multan 1Haripur 2Faisalabad
1Mirpur Mathelo, Dist Gotki 1Daudkhel 1
WAREHOUSES
Mian ChunnuFaisalabadKhanewalD.G. KhanDera Ismail Khan
Sukuar
LahoreKarachiLarkanaDaduThattaMirpur khsNawabshaMultanSheikupura

TOTAL PRODUCTION
(IN THOUSAND TONS)
YEAR UREA
SUPERPHOSPHATEAMMOMIUMNITRATE NITROPHOSPHATEAMMONIU
M SULPHATE1998-1999
3521.7 21.6 338.8 265.0 1999-2000
3785.0 145.8 386.5 261.3 2000-2001
4005.1 159.6 374.4 282.5 2001-2002
4259.6 161.0 329.4 305.7 2002-2003
4401.9 147.2 335.3 304.9 2003-2004
4431.6 167.7 350.4 363.5 2004-2005
4606.4 163.1 329.9 338.9 2005-2006
4806.4 16.8 327.9 356.6 2006-2007
472.5 148.9 330.8 325.8 2007-2008
4924.9 157.6 343.7 329.7 2007-2008(JULY-MARCH)
3660.5 114.8 246.0 218.4 2008-2009(JULY-MARCH)
3652.4 143.2 245.7 218.4 Source: NFDC

TOTAL EMPLOYMENT
o

Direct employment:

31,000 people are directly employed in fertilizer sector.

4139 people /day

o

Indirectly employment:
Agriculture is the mainstay of Pakistans economy. It accounts for 24
percent

of the GDP and

employs 48.4 percent

of the total labor force.

TOTAL EXPORT
46 thousand tones of urea were exported in 2002/03.

NUMBER OF NEW PLANTS AND NUMBER

OFPLANTS CLOSED DOWN
Number of new plants opened
1
Number of plants closed down
1