Fertilizer industry in Pakistan

OPPORTUNITIES
Quality
If the quality of the company products is high then the sales of that company is high and company will earn more profit

No Quota restriction
Due to no quota restriction in Pakistan from 2005 the chances of exports increases

Availability of gas
If government provide adequate gass to this industry the industry s production can increase. For this purpose the government should agreement with Iran to get Gas.

Government support
Government should provide subsidy on taxes and import duty of raw material .

Opportunity of expansion
Pakistan is an agriculture country the demand of the fertilizer is high as compare to supply .so industry has to opportunity to expend its business

Consultancy services
Fertilizer companies should provide consultancy services to formers for the awareness of the effective and balance use of their products which will increase the demand of their products .

Technology
Companies should adopt the new technology to enhance their production capacity and quality of their products .

Threats
Load shading of gas
These days the big threat which is the industry facing is gas load shading the company can t produce to meet the demand of their customers.

Dumping
Duet to increase in the imports of the fertilizers the demand of domestic fertilizer is decreased because the prices of the imported fertilizers are less as compare to domestic companies .

Political instability
Political instability is also a big threat for fertilizer industry. The new government change the law and order about the taxes, exports imports procedures .

Increase in fuel prices

Due to rapidly increasing the prices of oil and gas the cost of fertilizers increases.

Bio fertilizer
Bio fertilizer is also threat for this industry because the bio fertilizer is cheap and environment friendly

Technology
Due to technological changes the companies which are not adopting new technology may face loss

Environmental and social

Some companies situated near the public places which creates pollution (noice, wastage etc.) some times that cause the government luck the company or option to change the place which Is costly for the company.

Fuji fertilizer limited

With a vision to acquire self - sufficiency in fertilizer production in the country, FFC was incorporated in 1978 as a private limited company. This was a joint venture between Fauji Foundation (a leading charitable trust in Pakistan) and Haldor Topsoe A/S of Denmark. FFC commenced commercial production of urea in 1982 with annual capacity of 570,000 metric tons. Production capacity was enhanced by establishing a second plant in 1993 with annual capacity of 635,000 metric tons of urea.

FFC participated as a major shareholder in a new DAP/Urea manufacturing complex with participation of major international/national institutions. The new company Fauji Fertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited) commenced commercial production with effect from January 01, 2000. The facility is designed with an annual capacity of 551,000 metric tons of urea and 445,500 metric tons of DAP, revamped to 670,000 metric tons of DAP. In the year 2002, FFC acquired ex Pak Saudi Fertilizers Limited (PSFL) Urea Plant situated at Mirpur Mathelo, District Ghotki from National Fertilizer Corporation (NFC) through privatisation process of the Government of Pakistan. It has annual production capacity of 574,000 metric tons urea which has been revamped to 718,000 metric tons urea in 2009. This acquisition at Rs. 8,151 million represented the largest industrial sector transactions in Pakistan at that time.(www.FFC.com.pk)

FUJI FERTILIZER COMPANY PVT. LIMITED

Opportunities Quality No quota restriction Availability of gas Government support Business expansion Consultancy services New technology Threats Load shading of gas Dumping Political instability Increase in fuel prices Bio fertilizer Old Technology Environment Threat of new entrance Total

Weight(0--1) 0.09 0.06 0.08 0.06 0.05 0.07 0.09

Rating (1--4) 3.7 2.8 3.2 3.5 2.8 2.3 3.5

0.09 0.06 0.08 0.08 0.04 0.05 0.04 0.06 1

3.2 2.5 3.2 3.5 1.2 1.5 1.5 1.5

Weighted score 0.333 0.168 0.256 0.21 0.14 0.161 0.315 0 0 0.288 0.15 0.256 0.28 0.048 0.075 0.06 0.09 2.83

Recommendation
This matrix shows that FFC is at satisfactory position in future FFC should over come its weakness by adopting some strategies which as follows

By adopting new technology By expending their business By providing consultancy services to its customer By producing new product like single super Phosphate By saving environment by reducing wastage .

STRATEGIC MANAGEMENT
Submitted by :

Terminator WAHEEN AHMAD TAHIR MUNIR IMTIAZ AHMAD UMAIR SHARIF UMAR FAROOQ 09012054-004 09012054-016 09022054-056 09022054-073 09012054-008

Submitted to :

Sir Arslan Sarwer