OPERATION PRODUCTION AND MANAGEMENT:

Submitted To: Submitted B :

Prof. ZIA-UR-REHMAN !AIZA IHSAN HINA SA%EEM HINA HAMEED MAR(AM IRSHAD HA!SA RASHID BC-"#-""$ BC-"#-"$& BC-"#-"$' BC-"#-")' BC-"#-"*+

HAI%E( CO%%EGE O! COMMERCE, UNI-ERSIT( O! THE PUN.AB,

%AHORE.

THE !ERTI%IZERS SECTOR IN PA/ISTAN:$ Agriculture sector (excluding livestock) contributing approximately $"0 of t1e GDP. The primary mean to enhance agricultural output is by the use of balanced fertilization (Nitrogenous, hosphatic ! otasssic). akistan produces +0 of "orld urea output, all consumed locally (#$%&' (.%mln) #$&*' +.*mln) "hile bigger portion of hosphatic fertilizer (,A ) is imported. -ecently, industry has experienced investment of around USD )b23. #ertilizer sector.s association "ith larger agrarian economy places it in a strong strategic position. The sector en/oys privileged treatment from 0overnment of akistan, mainly in the form of subsidized natural gas, the key ra" material in urea production, and price subsidy for phosphatic fertilizers. /E( RIS/S: 1 N4tur42 G45 A64i24bi2it : 2n the last fe" years in akistan Natural gas production has remained flat, "hile demand is high. 2n spite of having high precedence access to supply of natural gas (Natural 0as ! 3anagement olicy 4&&(), fertilizer sector is facing up to 4&5 gas shortening resulting in lo"er capacity utilization

1 Total demand of all fertilizers stood at 7.#MT against the supply of '.8MT during #$%&. The price of urea increased by +70 in one years. time on back of gas reduction and 06T. 7n the
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other hand, the demand for urea is highly inelastic and price change is possible to have partial impact on demand. :o"ever, phosphatic fertilizer ; ,A ; being price sensitive, "ould experience turn do"n in its off take. 2n the past, 0o has provided subsidies for phosphatic fertilizers "henever prices become higher beyond farmer community.s reach. :ence, fertilizer demand "ould be dependent upon 0o s action in the current circumstances. CREDIT E9PECTATIONS: 1 ,ue to the capital intensive nature of the sector the current expansions by large players has pushed the average financial leverage for the sector to a significant level ( 80 of total private sector lending). The short term borro"ings are a function of imported fertilizer <uantum, "hich differ "ithin entities. The leveraging levels for gro"ing entities are as high as 8":*" (debt to e<uity). 1 The <uality of credit is good based on the aptitude of business to generate strong and steady margins (+)0). ,ue to the cash nature of the business less "orking capital credit is re<uired. The sector serviced P/R ))b23 interest during the year.

!AU.I !ERTI%IZEERS COMPAN(

INTRODUCTION:) ##= "as incorporated as a private limited company in $#87 "ith a visualization to attain self sufficiency in fertilizer production in the country. 2t "as a /oint venture bet"een #au/i #oundation (a leading charitable trust in akistan) and :aldor Topsoe A86 of ,enmark. The initial share capital of the company "as RS. 7$*.# Mi22io3 but the present share capital of the company stands over R5. 7.+7 Bi22io3. 3oreover, ##= has about R5. 7.* Bi22io3 long term investments that include stakes in the subsidiaries (i>e ##?@ ! ##=A@) and associate #au/i =ement =ompany ltd (#==@). ##= commenced commercial production of urea in $#7) "ith &8",""" metri: to35 capacity per anum. The production capacity of the existing plant increased to '#&,""" metric tons per year
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through ,e>?ottle Necking (,?N) program. roduction capacity "as increased by establishing a second plant in $##* that has the capacity to produce '*&,""" metric tons of urea per year. ##= participated as ma/or shareholders in a ne" ,A 8Brea manufacturing complex "ith participation of ma/or international8national institutions. #au/i #ertilizer ?in Casim @imited (formerly ##=>Dordan #ertilizer =ompany @imited) as the ne" company commenced commercial production "ith effect from &%, Danuary 4&&& that has ((%&&& metric ton annual capacity to produce urea and ++((&& metric tons of ,A , that is no" revamped to E.F lacs metric tons. 2n )""), ##= ac<uired ex ak 6audi #ertilizers @imited ( 6#@) Brea lant from National #ertilizer =orporation (N#=) that is situated at 3irpur 3athelo, ,istrict 0hotki through privatization process of akistan 0overnment "ith an annual production capacity of &8+,""" metric tons for urea that has been kno" revamped to 8$7,""" metric tons urea in year )""#. ##= is among the =ountry.s largest corporate entities and is listed on all three stock Axchanges of the =ountry. ##= securities are one of the most actively traded scripGs on the 6tock Axchanges. #au/i fertilizers is one of the top )& Com;43ie5 at the Harachi 6tock Axchange (0uarantee) limited (H6A) since $##+ and in the years $##8, )"$" and )"$$ respectively has been declared first t"ice. =ompany.s financial position has consistently enhanced since its commencement. 2n 4&%% the =ompany also made massive contribution of R5 )7,"7$ mi22io3 to National Axche<uer in shape of taxes ! other levies. ##= is pioneering landmark "ind o"er lants in akistan in phases "ith a vie" to enhance =ountry.s energy security through green and clean po"er. A (& 3ega "att "ind farm is near to its completion and the management is also considering furthering expanding the pro/ect. ##= is also enthusiastic to spread out its :- Technical 6ervices business in potential markets in the 3iddle Aast. ##= is also taking consideration of various inland and abroad investment proposals as part of business diversification strategy. Along "ith financial progress, ##= =6contributions in different areas such as education (schools), health (hospitals ! dispensories ), disaster relief (flood ! earth <uack relief) and environment are much more significant. ##= is motivated to incorporate BN0= principles into its strategy and governance for a sustainable business. ##= published its very first 6ustainability -eport that "as based on 0-2 guidelines in )"$). 2nternationally ##= is "ell recognized as a member of I3ter34tio342 !erti2i5er A55o:i4tio3 <I!A=, Ar4b !erti2i5er A55o:i4tio3 <A!A= 43d U3ited N4tio35 G2ob42 Com;4:t <UNGC= Ne> (or? USA. -i5io3:*

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##= is focused on balancing its capabilities and maximizing its potential. 2n a nation of increasing population, management believes there is extensive opportunity of expansion for ##= in the years to come. #=.s vision is to play a primary role in the industrial and agricultural progression of the country pursuing ne" expansion opportunities offering the expediency of numerous products, brands and channels "ithin and ahead of the territorial confines of akistan, to the benefit of their customers and their shareholders, inspiring their image as a socially accountable and ethical company that is "atched and emulated as a representation of success. Mi55io3:+ !!C@5 mi55io3 i5 to 5u5t4i3 it5 ro2e 45 t1e 2e4der i3 i3du5tri42 43d 4Ari:u2tur42 4d643:eme3t of P4?i5t43 b 5etti3A 43d 4:1ie6i3A 3e> 43d 1iA1er Ao425 43d t4?i3A i3iti4ti6e5. ##= is delivering successful performance through a strong focus on <uality. Their mission is to stand above the competition and provide their customers "ith premium <uality fertilizer products in a safe, efficient, reliable and environmentally sound manner, deliver exceptional services "ith an unparalleled customer support, produce predictable earnings for their shareholders and they are focused to"ards providing a dynamic and challenging environment for their employees. IT -i5io3: The 2T approach at ##= shall harmonize their =orporate Iision by business alteration through technology innovation, introducing best practices and linking their processes for timely information and optimized performance to succeed in their accomplishments. I3form4tio3 S 5tem5&

1 SAP ProBe:t: The 6A pro/ect has finally gone live and process of reconciliation of legacy system "ith 6A system has been successfully completed at all locations. ?y the 0race of Allah, 6A has no" become the leading system in ##=. 1 Bui2di3A M434Aeme3t S 5tem: A ?uilding 3anagement 6ystem (?36) is a computer> based control system that manages mechanical and electrical e<uipment such as ventilation, fire, security and po"er systems. All these systems are linked on one platform and provids coordinated response to different facilities, the integrated end to end system also optimizes energy consumption in the "hole building.
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1 E-Re:ruitme3t: ##= has productively launched an online careers portal. 2t allo"s /ob seekers to vie" all the /obs available in ##= and then apply for these /obs online. :- posted on the e>recruitment portal about the /obs available in ##=. 1 So24r E3erA So2utio3 C !ie2d D4re1ou5e5: To provide continuous electricity at ##= "arehouses at distant locations solar po"ered hybrid system is being installed. This "ill make sure 4+ x F net"ork connectivity at these distant sites.

ISO Certifications:

Sr. No % 4 J ISO-#"")

Certifi:4tio3 N4me 267>*&&%'4&&& 267 %+&&%'%**E 7:6A6 %K&&%'%***

Brief De5:ri;tio3 of Certifi:4tio35 Cuality 3anagement 6ystem Anvironmental 3anagement 6ystem 7ccupational :ealth ! 6afety Assessment 6eries

An additional ma/or landmark for #au/i #ertilizer =ompany is 267>*&&4 certification for its manufacturing division at 0oth 3achhi. Cuality in all areas is considered a hallmark of the =ompany right from the beginning and their product L67NA B-AAL has already established its

rightful place in the market.

Therefore, to bring their system in line "ith internationally recognized <uality standards, they decided to go for 267>*&&4 certification. To achieve a total <uality management system, they surpassed the re<uirement of 267>*&&4 standards by including all support services like Administration, #inance, ersonnel, :ospital, 3anagement =lub, 6chools etc. also in the certification scope. They selected ?ureau of Ieritas Cuality 2nternational (?IC2), Angland, a leading certification agency as their registrar. ?IC2 is honored by various accreditation authorities of the "orld. Cuality 3anagement 6ystem of ##= got 267 certified in its first attempt during No6ember $##8 "ith the honor of being the %st #ertilizer lant in akistan. 6ince then they have not looked back. They have passed all surveillance audits "ith commendable remarks from their registrar.

UPPER HANDS:' C14irm43: @t 0en 3uhammad 3ustafa Hhan, :2 (3) (-etired) 1 Doined the ?oard: Danuary &4, 4&%4 1 3anaging ,irector of #au/i #oundation and #7T,=@ (#au/i 7il Terminal and ,istribution =ompany @imited) 1 =hairman on the ?oards of various #au/i 0roup companies. 1 :e "as commissioned in akistan Army in %*F+. 1 :e has done his 0raduatation from =ommand and 6taff =ollege Cuetta, =ommand ! 6taff =ollege #ort @eaven"orth B6A and Armed #orces Mar =ollege 2slamabad (National ,efence Bniversity). 1 :e also completed a 6enior Axecutive =ourse from B6A and holds 3asters ,egrees in Mar 6tudies and 2nternational -elations. 1 2n recognition of his admirable services, he has been conferred the a"ard of :ilal>e> 2mtiaz (3ilitary). :e brings along a enormous and diversified experience in operational, management, administration, assessment and evaluation systems up to various levels of =ommand. C1ief EEe:uti6e F M434Ai3A Dire:tor: @t 0en Naeem Hhalid @odhi, :2 (3) (-etired) 1 Doined the ?oard' 3arch 4E, 4&%4. 1 =hairman of 6ona Melfare #oundation and holds ,irectorship on the ?oards of' ##= Anergy @imited, akistan 3aroc hosphore 6.A, and #au/i #ertilizer ?in Casim @imited, . 1 :e completed his 36c (6trategic 6tudies) and 3asters in 2nternational Affairs degrees after 0raduation in =ivil Angineering. 1 :e has also attended financial management program at the =olumbia Bniversity B6A and Axecutive program at akistan 2nstitute of 3anagement.

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Produ:t5 of !!C:8

So34 Ure4 : 6ona Brea, a concentrated straight nitrogenous and most commonly used fertilizer in akistan.3ostly it is synthesized in the form of prills, but ##= is producing it in prilled and granular forms. These are "hite in color, free flo"ing and are also readily soluble in "ater. =oncentration of nitrogen in both forms is +E5. 2t is suitable for solution fetilizers and foliar application. Brea is the best suited to the soil of akistan because of its high solubility.

DAP: Di Ammo3ium P1o5;14te : 6ona ,A is the most concentrated phosphatic fertilizer having +E5 47( and %K5 Nitrogen. According to nutrientGs point, it has got the maximum <uantity of total nutrients in a (& H0 bag i.e. J4 H0 of nutrients 8 bag. The highest concentration of plant nutrients in a bag is cost effective in terms of handling, transportation, storage and application. 2t is the most commonly used phosphatic fertilizer in the "orld as "ell as akistan. ,A is more than *(5 soluable, "hich is highest among the available fertilizers. This high solubility make it possible to be used through fertigation as "ell as by foliar application. Nitrogen to hosphorous ratio is ( % ' 4.( ) "hich makes it an ideal fertilizer for ?asal application to meet the initial re<uirement of most of the crops. 2t is "ell suited for alkaline soil asit has acidic effect that neutralizes the alakalinity of soil.

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!!C SOP : This fertilizer is an important source of otash, "hich is an essential nutrient for production of good crops especially fruits and vegetables. otash is considered an important nutrient used for activation of enzymes in the plant body and helps to increase sugar and starch contents. otash helps the plant to "ithstand against pests, diseases and stresses like "ater 8 frost in/ury etc. ##= 67 contains (&5 H4& in addition to %K5 sulfur, important nutrient for oil seed crops and it has ameliorating effect on soils that are salt>affected . 2t can be used through fertigation as "ell as foliar application as readily soluble in "ater. 67 is an effective ! suitable fertilizer for all types of crops and soil. 2n akistan use of potassic fertilizer is minimal, that is re<uired to be promoted for <ualitative as "ell as <uantitative crop production.

SONA BORON : 6ona ?oron>a crystalline fertilizer.2t is present in form of 6odium Tetra ?orate ,ecahydrate in packing of J kg. 2t is a nutrient that is re<uired in minute <uantities for plant nutrition, but plays important role in gro"th mechanisms e.g. ne" cell development, implantation, fruit8seed setting, translocation of sugars, nitrogen and phosphorous, starches, nodule formation in legumes and regulation of carbohydrate metabolism. ,eficiency of ?oron results in curled leaves, rotting and cracking of fruits, tubers or roots. ,ue to increasing boron deficiency in akistani soils ##=@ is providing high <uality 6ona ?oron containing %%.J5 ?oron (?orax). 2t is highly soluble in "ater and readily available to plants. 2t can be mixed "ith other fertilizers.

Bu5i3e55 De6e2o;me3t:7 !!C o3 Cour5e to de6e2o; &" MeA4 D4tt Di3d Po>er ProBe:t F E642u4ti3A Ot1er Di6er5ifi:4tio3 O;tio35: The feasibility study to establish steel billets plant "ith a capacity of %.4 million billets per year is in progress. The billets are mainly used for the production of re>bars and structural steel. 2n akistan, <uality steel billets are short and generally available at high premium. #or producing steel billets the Alectric Arc #urnace (AA#) route has been selected over the conventional route (blast furnace) considering the economy of scale. akistan is a developing country but it lacks in steel production as compared to other developing countries. 7n the completion of the study, the decision to invest "ill be taken up. ##= Mind o"er ro/ect development activities continued to progress at full pace. A ne" =ompany N##= Anergy @imitedO has been established for the Mind o"er ro/ects. ?rig Tari< 2zaz "ho "as firstly the ro/ect =oordinator has no" been appointed as the ro/ect ,irector (M ). The =ompany signed contracts of Angineering, rocurement and =ontraction (A =) and 7perations and 3aintenance (for a 4PJQ( years period) "ith Nordex of 0ermany in #ebruary previous year. Nordex is one of the leading manufactures of Mind Turbines around the globe and has over +&&& Mind Turbines "ith a total rated output (F4& 3M already operating in J+ countries of the Morld. ##=A@ ro/ect Team along "ith legal ! #inancial consultant negotiated the Anergy urchase Agreement (2A) "ith NT,= ! AA,? respectively. Bpon @enders agreement of these contracts, same "ere finalized and initialed by ##= Anergy @imited. ##=A@ presented the 0rid 6tudies to the =A7 NT,= and NT,= o"er lanning ,ivision "hich have been approved. ##=A@ participated in 0rid =ode -evie" anel meeting arranged by NT,=. NA -A has approved the grid =ode amendments to address specific re<uirement of -ene"able Anergy o"er lants.

COMPITITION:
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ENGRO !ERTI%IZERS INTRODUCTION#: E3Aro Cor;or4tio3 is one of the leading akistani business conglomerates "ith stakes in the fertilizer, petrochemicals, po"er generation, food, automation and terminal storage industries. Angro #ertilizers had undergone an employee led buyout in %**4 it has expanded phenomenal in the past t"o decades. As a holding company Angro =orporation.s subsidiaries include' 1 1 1 1 1 1 Angro #ertilizers @imited Angro o"er0en @imited Angro Iopak @imited Angro Aximp rivate @imited Angro olymers and =hemicals @imited Angro #oods @imited

HISTOR( O! ENGRO CORPORATION: AN0-7 #A-T2@2RA-6 story begins "ith one companyGs innovative decision to strive ahead and invest "hen another had botheyd out. 2n $#&8, ak 6tanvac ;an Asso83obil /oint venture ; stumbled upon vast deposits rich in natural gas in 3ari "hile pursuing viable oil exploration in 6indh. Mith ak 6tanvac "ith exclusively focusing on oil exploration, the discovery results in shifting the impetus to Asso "hich decided to invest on 3ari gas field having the massive industrial potential. Asso proposed to establish a giant urea plant in ,aharki, that is about ten miles a"ay from the 3ari gas fields, "hich "ould use natural gas as its primary ra" material to turn out urea fertilizer. Talks "ith the 0overnment of akistan bore fruit in $#'+, and an agreement "as signed that allo"s Asso to set up a urea plant "ith an annual capacity of $8*,""" tons. Asso brought commercially tried facilities) in state>of>the>art design and a highly distinguished pool of technical expertise to ensure a smooth start up. Total investment made "as B6S +'M ;the single largest foreign investment in akistan to date then. The plant started production on De:ember "+, $#'7 a fe" months late and "ith less than $"0 over run on the original budget. To boost sales, a fully fledged marketing organization "as established "hich undertook agronomic programs to educate farmers of akistan. As the first branded fertilizer manufacturer of the nation, the =ompany helped in modernizing traditional farming practices and boost farm yields, that has a direct impact on the <uality of life for farmers, their families and for "hole of
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the nation at large. Aducation programs for farmers increased consumption of fertilizers akistan) paving "ay for =ompanyGs branded urea called N E3AroO ;an acronym for NE3erA for Gro>t1O. 2n $#87, Asso became Axxon as part of an international name change. and because of that =ompany "as renamed as Axxon =hemical akistan @imited. 2n %**%, Axxon decided to divest its fertilizer business throughtout the globe.Axxon =hemical akistan @imited.s employees ;in partnership "ith leading international and local financial institutions ;bought out AxxonGs 8&0 e<uity. This "as, and perhaps still is considered to be the the most successful employee buy>out in the corporate history of akistan. After it is renamed as Angro =hemical akistan @imited, the =ompany theynt from strength to strength "ith its consistent financial performance) gro"th of its core fertilizer business) and diversification into other enterprises. 2n $##$ a ma/or plant capacity upgrade at ,aharki coincided "ith the employee led buy>out. Angro also relocated from the BH and B6 to its ,aharki plant site its fertilizer manufacturing plants ;an international first. 2n $##+, Angro =hemical akistan @imited moreover started venturing into other sectors like energy, foods, I= resin manufacturing and marketing, industrial control and automation and chemical terminal and storage. ?y )""#, Angro "as fast gro"ing and had already diversified its business portfolio is as many as seven different industries. The diversifications and continual expansions in =ompanyGs enterprises necessitated a broad restructuring in Angro =hemical operations and management. Angro =hemical akistan "as converted into a holding company named Angro =orporation to facilitate better oversight and Angro corporation "ith its fertilizer business "as subse<uently demerged to a ne"ly formed Angro subsidiary ;Angro #ertilizers @imited. After obtaining the re<uisite approvals from creditors and shareholders of the =ompany, the demerger ac<uired the approval of :igh =ourt of 6indh on #t1 De:ember )""# and became effective from $5t .43u4r )"$". 6ubse<uently, all assets and liabilities of fertilizer business have been transferred to Angro #ertilizers @imited against the issue of shares to the =ompany. #uture prospects for Angro #ertilizers look bright as the =ompany recently undertook its biggest urea expansion pro/ect. rill To"er that is ne"ly constructed by engro fertilizers stands tall at $)& meters ;dubbed the tallest structure in akistan. Approximately USG$."& ?illion cost has been incured for this expansion, "ith the expanded facility looking set to make Angro the biggest urea manufacturer in akistan, on the other side substantially cutting the cost of urea imports to national exche<uer.

OrA43iH4tio342 Stru:ture:$" Hu554i3 D4>ood holds the seat of the corporation, 3r. ,a"ood also hold the chairmanship of ,a"ood 0roup akistan. Apart from the chairmanship, A54d Um4r held the position of =A7 ! resident at Angro =orporation from 4&&+;4&%4. 7n April %K, 4&%4 he resigned to /oin akistan.s emerging political party akistan Tehreek>e>2nsaf (considered as a 3ovement of Dustice). akistan Tehreek>e>2nsaf has form a provincil government in Hhyber> ukhtonkh"aT province of akistan. 3uhammad Aliuddin Ansari has been appointed as the ne" =A7 ! resident of Angro =orporation.

RATIO ANA%(SIS )"$):$$

-AT27 =urrent -atio Cuick -atio Morking =apital ,ebt -atio 0ross rofit -atio Net rofit -atio Aarnings per 6hare -eturn on Assets -eturn on A<uity 6hareholders e<uity

!!C Times %.%( %.%+ -s. 2n millions %+*,&&4 Times %J.KF +K.+5 4K5 -s. %E.JK Times %.44 F*.KE5 -s. 2n million 4E,&*E

ENGRO Times &.%FE &.%(( -s. 2n million(%%KE(FEJ) Times &.K+ J4.4&5 (*.(K)5 -s. (4.F+) Times(&.&J&) (&.%*)5 -s. 2n million %(,F*K

Pre;4red B : M4r 4m Ir514d F !4iH4 I1543

R4tio A342 5i5-Co3:2u5io3:$)

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%iIuidit R4tio5 : Curre3t R4tio: ##=@' %.%(times Angro' &.%FE Jui:? R4tio: ##=@'%.%+ Angro' &.%(( .

Me can very "ell see that the short>term debt paying ability of Angro is very lo" as compared to ##=, "hich is not a good sign. They neither have enough current assets nor enough <uick assets. Dor?i3A C4;it42: ##=@' -s. 2n millions %+*,&&4 Angro' -s. 2n million (%%KE(FEJ). The "orking capital of Angro is negative "hich means that they have more total liabilities than total assets, "hich is again not a good sign. Debt R4tio: ##=@' Times %J.KF Angro' Times &.K+. This ratio tells the amount of assets financed by the creditors. Gro55 Profit R4te: ##=@' +K.+5 Angro' J4.4&5. This ratio tells the profitability of companyGs products. 6o "e can definitely say that the above ratios clearly tell that ##=@ is getting more profit than Angro. Net Profit R4tio: ##=@' 4K5 Angro' (*.(K)5. This ratio tells about managementGs ability to control costs. 6o it is clear that here ##=@ is again higher than Angro, "hich means that they have a better control over the costs of their products. E4r3i3A5 ;er S14re: ##=@' -s. %E.JK Angro' (4.F+). This term tells the net income applicable to each share of common stock. 6o here ##= is giving better in compare share than Angro.

Retur3 o3 A55et5: ##=@' %.44 Angro' (&.&J&%).

2t measures the productivity of assets) regardless that ho" they are produced. 2n this aspect ##=@ is doing <uiet better than Angro. Retur3 o3 EIuit : ##=@' Angro' (&.%K(F). This tells the rate of net income earned on the stockholderGs e<uity in the business. "e can say that ##=@ is doing <uiet better than Angro. #rom -atio Analysis, it is concluded that profitability of ##=@ (#au/i #ertilizer =ompany ltd.) is better as compared to Angro =hemical akistan limited.

COMPETETI-E EDGE O! !!C:

,riving land productivity'

##= through applicating balanced fertilizers is driving land productivity. #or this ##= is educating farmers through farm advisory services regarding fertilizer use. ##= is keenly committed to increase the per acre production to maximize the agricultural yield. 1 3aintain 2ndustry leadership'

To enhance industry efficiency ##= Heeps abreast of latest technological advancements and upgrade their production facilities by ongoing processes to achieve their targets. Their policy of upgrading plants "ith state of the art e<uipment ensures that they keep pace "ith advancements and avoid redundancy. 1 Axpanding 6ales'

##= is expanding its sales by expanding its sales territories and by providing a"areness to the farmers. Bltimately achieving its annual targets for sales. 1 6ustained Aconomic 0ro"th'

2n order to attain sustained economic gro"th ##= is creating ne" businesses to augment its profitability by continuously seeking avenues to diversify "ithin and outside the #ertilizer 2ndustry.

7perational Afficiency'

There is al"ays room for improvement in efficiency. 7perational efficiencies can be enhanced "ith the help of focused management strategies. 6o, ##= strives to keeps its business processes in perfect harmony, reducing time and money losses to maintain operational efficiency to achieve synergies.

Aconomizing =ost'

##= is economizing its costs by eliminating redundancies and keeping their resource utilization at an optimum level through strict governance policies. ##= is implementing A- system, the time for flo" of information can be further reduced through reorganizing business processes in line "ith ne"ly implemented A- system. 1 SOME OTHER STRENGTHS :

##=Gs strenghts are its resources and capabilities that can be used as a basis for developing a compititive advantage. some of them are' 1 1 1 1 1 1 1 1 The persons operating the firm are financially strong and they can start production of ne" product line anytime. Adding some ne" units can enhance the production capacity of the plants. To get the better advatages and maximize profits it provides the better <uality products to its customers. ,emand is heavy because being an agricultural country and due to increasing a"areness about the balanced use of fertilizer, demand for the fertilizer "ill increase. firm has "ell distribution centers skilled professionals "ith high <uality are there helping the corporation to achieve their target. #ertilizer industry emphasizes on an innovative education oriented advertising policy utilizing electronic 8 print media and road side advertisement. ##= have developed a "ell planned net"ork field "arehouses to ensure that fertilizers are available to the farmers uninterrupted. ##= has ne" technological devices to seeking and using the natural resources in the fertilizer industry.

Ser6i:e5 Pro6ided b !!C:$*

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http'88""".ffc.com.pk8farm>advisory>services.aspx http'88""".ffc.com.pk8hr>services.aspx

!4rm Ad6i5or Ser6i:e5

#au/i #ertilizer =ompany @imited has been providing Agricultural Advisory 6ervices, since %*K%, to the farmers all over akistan, for increasing the agriculture production in general and the farmers economic returns in particular. ##= considering it as its national commitment and moral obligation maintains regular contact "ith farmers and Agricultural 2nstitutions to ensure constant and efficient transfer of latest technology. The company is providing <uality farm advisory services throughout the country by its ( #arm Advisory =enters and %+ -egional Agri 6ervices 7fficers. #arm Advisory =enters are located at 6hahkot, ?aha"alnagar, 3andi ?ahauddin, 3uzaffargarh and :ala. Aach centre has five Agricultural Axperts as a team, for providing multiple advisory services through crop demonstrations, farmer meetings, village meetings, field days, crop seminars, group discussions and farm visits. ?esides these five farm advisory centers, ##= has %+ Agri 6ervices 7fficers based at %+ -egional 7ffices of ##= spread all over the country extending these services in their respective areas. #or strengthening their advisory services and facilitating farmers ##= also publish posters and pamphlets, agro>grams, and crop, vegetable, orchard brochures, consisting of latest information relating to the productive technologies of crops, and orchards gro"n in akistan. crop brochures that are available includes Mheat ?rochure, =otton ?rochure, 6ugarcane ?rochure, -ice ?rochure, 3aize ?rochure, 7il 6eed ?rochure, otato ?rochure, Iegetable ?rochure, 3ango ?rochure, =itrus ?rochure, ?anana ?rochure, Apple ?rochure, 0uava ?rochure, 7rchard =ultivation ?rochure, ?oron ?rochure and 6alt>affected 6oils ?rochure. ##= has also adopted the pragmatic approach of telecasting crop documentaries on TI before the onset of so"ing season of ma/or crops. ). Te:13i:42 Ser6i:e5 #au/i #ertilizer =ompany @imited technical services are no" available for the =hemical rocess 2ndustry due to its motivate team of engineering specialists "ith excellent experience. ##= has been providing Agricultural Advisory 6ervices to the farming community throughout akistan since %*K%, for improving the agriculture production in general and the farmers economic returns in particular.

*. HR Ser6i:e5 ##= has a dedicated team of engineering specialists "ith rich experience. ##= no" also provide services for the =hemical rocess 2ndustry in the areas of lant 3aintenance ! 2nspection and Technical Training, =ommissioning ! 7perations, for local as "ell as foreign clients.

+. P243t Commi55io3i3A F O;er4tio3 Me offer services for start>up, commissioning and troubleshooting for rocess lants. 6cope of the 6ervices include re>=ommissioning and =ommissioning Activities, 6afe 7peration rocedures ! 0eneral Mork rocedures, erformance Test rotocols and Avaluations, =atalysts @oading ! Activation, =ontrol @oop Testing ! Ierification of plant safety interlocks, ?oilers boil>out ! refractory dry>out, 7ver>speed tests of machines, ?lo"ing, flushing, =hemical =leaning 8degreasing of piping, lant 6tart>up ! resolution of initial Vteething problems, Technical 3onitoring lan (T3 ) for process plants employing "orld reno"ned soft"are, rocess ,eviation Analysis and roblem 6ource 2dentification, Anergy =onservation 3easures "ith impact of losses, inefficiencies and leakages, roduct Cuality =ontrol ! ?enchmark 6urvey, =atalyst Avaluations for Ammonia lants, :AR7 and 6afety Analysis of lant 3odifications, 2dentification of load limiting factors and Anvironmental monitoring. &. P243t M4i3te343:e F I35;e:tio3 Ser6i:e5 ##= offers full range of maintenance services focusing on preventive maintenance and problem Analysis and "ith aim to extend life of lants "hile minimizing cost and do"ntime. -eliability =entered 3aintenance (-=3) Approach suggest a. b. reventive 3aintenance ' eriodic maintenance (as per 7A3 guidelines). redictive 3aintenance ' =ondition monitoring 8 #ield data analysis.

c. =orrective 3aintenance ' 7n>line and shutdo"n maintenance. 0as Turbine -otor 7verhauling Rot4r EIui;me3t 1 7verhauling of gas turbine ! steam turbines. 1 7verhauling of high speed centrifugal as "ell as of reciprocating compressors and pumps. 1 -otors replacement, balancing and casing repair. Tube to Tubesheet Melding

St4tio34r EIui;me3t 1 -epair of high pressure vessels,as "ell as of heat exchangers and columns,

1 7n>line repairs and box up for leak fixation. 1 Melding of materials (steels, high grade alloys and titanium). 1 -efractory installation and repair in direct fired e<uipment (reformers, boilers). 1 -elining ! maintenance of critical : urea e<uipment (6tripper, -eactor). Thermography at rimary -eformer I35;e:tio3 F Re2i4bi2it A55e55me3t Their inspection team has considerable expertise and uses all the modern tools for reliable inspection of =olumns, -eactors, Axchangers, ?oilers, Iessels, Tanks and critical : @oop e<uipment. '. Te:13i:42 Tr4i3i3A ##= manages a "ell e<uipped Technical Training =enter (TT=) in the vicinity of its production facilities. That "as established in %*K(, and it has emerged as a =enter of Axcellence in the country for training to ma/or #ertilizer, 7il ! 0as and etrochemical 2ndustry over the past decades . Tr4i3i3A !4:u2t Axperienced professionals and managers at ##=.s plants are actively engaged in plant operation and maintenance imparting vital practical kno"ledge. it is considered as an honor of ##= that ##= is the countrys leading training provider for ma/or multinational oil ! gas and process industries and ' 1 73I Axploration 0m?: 1 A-=7 -efinery 1 ?: >?illiton etroleum @td ak etroleum 1 @otte> ak

1 Attock -efinery 1 Bnilever @td 1 ?osicor -efinery 1 Ani 0roup 1 TA 1 AA6 o"er lant 1 37@ 7il ! 0as ?I 1 6ui Northern 0as 1 ackages @td 1 @iberty o"er

##= has also provided training to follo"ing foreign companies through Brea lant licensor, 38s 6aipem. These include '

1 Haltim #ertilizer ; 2ndonesia 1 6N0 , :ainan 0roup and 2nner 3ongolian #ertilizers ; =hina 1 HA#=7 #ertilizers ; ?angladesh 1 #ertinitro ; Ienezuela 1 0 2= ?ahrain 1 6tatoil > Nor"ay 38s 6aipem also a"arded TT= a V=ertificate of =ompetence for training excellence. Produ:tio3 !4:i2itie5:$+ 1 ?ase Bnit>0oth 3achhi( lant>%) St4rt-u; : Dune %*K4 C4;4:it Ammo3i4 : +&J,&&& 3et8$ear Ure4 : E*(,&&& 3et8$ear 1 Axpansion Bnit>0oth 3achhi( lant>22) St4rt-u; : %**J C4;4:it Ammo3i4 : JEJ,&&& 3et8$ear Ure4 : EJ(,&&& 3et8$ear 1 3irpur 3athelo Bnit ( lant>222) (EX-PAKSAUDI Fertilizer Ltd.) St4rt-u; : 7ct %*K& A:Iuitio3 b !!C : J% 3ay, 4&&4 MerAed >it1 !!C : % Duly, 4&&4 C4;4:it Ammo3i4 : +%J,&&& 3et8$ear Ure4 : F%K,&&& 3et8$ear Mith outstanding performance of these three plants, Aggregate output 67NA B-AA 4,+&( thousand tons , "ih maintaining high standards of product <uality, "hich is only signified by ##= brand 67NA. This year total demand of fertilizers stood at (,4FE thousand tons, but production is +,%(E thousand tons, (K5 of "hich is representing ##=Gs production.
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http'88""".ffc.com.pk8production>facilities.aspx

Cor;or4te A>4rd5:

Be5t Cor;or4te Re;ort A>4rd )"$$ The Annual -eport of the =ompany for the year ended ,ecember J%, 4&%% "as a"arded first place in the #ertilizer ! =hemical sector and "as also the overall "inner in ?est =orporate -eport A"ards 4&%%, declared by the /oint committee of 2nstitute of =hartered Accountants of akistan (2=A ) and the 2nstitute of =ost and 3anagement Accountants of akistan (2=3A ) in a ceremony held in Harachi on Kth of 7ctober in 4&%4. /SE To; Com;43ie5 )"$$ ##= "as also ad/udged the overall "inner of the Top 4( companies a"ard for 4&%% by the Harachi 6tock Axchange. This "as the eighteenth consecutive placement in the top companies list. These companies are selected based on a comprehensive criteria covering various aspects of performance including dividend distribution, trading pattern of its shares, capital efficiency, profitability, free>float and turnover of shares and participation in corporate social responsibility. Be5t Su5t4i34bi2it Re;ort )"$$ Although ##= has been a consistent patron of corporate social responsibility, it is only in 4&%% that a comprehensive 6ustainability -eport "as compiled, encompassing all activities of the =ompany. 2n its first such effort, ##= bagged third position in the ?est 6ustainability -eport A"ards held by the /oint committee of 2=A and 2=3A . Cor;or4te P1i243t1ro; A>4rd )"$$ ##= "as selected by the akistan =enter of A"ardO 4&%% and "on fourth position. hilanthropy for the N=orporate hilanthropy

Co3:2u5io3: This excellent performance is because of motivation and dedication of all employees and the progressive approach and support from the higher management. ##= is committed to play its

leading role in industrial and agricultural advancement in akistan by providing <uality fertilizers and allied services to its customers and give them the passion to excel, they take on fresh challenges, set ne" goals and ob/ectives and take initiatives for development of profitable business ventures. The management of ##= has made tall claims that they have managed to keep the company still as a number one company on the stock exchange despite adverse economic conditions curtailment of 0A6 and stiff competition from local and imported market and have managed to post a handsome A 6 of %E.JK 2t is needed to pay emphasis on the prudent internal control and risk management and on gearing ratios to offset future contingencies and gas shortages. they are re<uired to pay emphasis on better human resources management and to change the mindset of the employees for greater end>user interaction explaining the correct and proper use of fertilizer to the farmers and to increase the per Acre yield.

-A#A-AN=A6' 1 http'88""".ffc.com.pk8uploads8docs8ar9c4&%4.pdf

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