Engro Foods Strategic Management

Topics: Milk, Dairy product, Dairy Pages: 39 (10362 words) Published: November 25, 2010

Submitted to: Murtaza Sunelwala

Executive Summary
The repot at hand provides useful insight about Engro Pakistan Ltd, a private fertilizer firm that keeps about 22 % of market share in the milk food industry Pakistan. Established in 2005, a 100% owned subsidiary –First investment of dairy plant Processed milk market is growing at approx. 20% per annum Olper’s achieved peak market shares of 12.3% within 6 months of launch Other products launched –Olper’s Cream, OLwell –High Calcium Low Fat Milk (Premium Brand) Plans to expand product portfolio Milk processing capacity to increase by 200% to 200 million liters annually Will become the only company in Pakistan covering the entire milk catchments area Already has the second largest chilled milk collection system in the country Distribution network to double from 58 towns to 119 towns by the end of 2007JV with global food major in advanced stage of negotiation Forces in the external environment that affect company’s performance are, political, economic, social and technological whereas company-specific external forces are Major Players in the food Industry, which are ten in number; Nestle being the leader with 41 % market share. Typical packed milk consumers are the children. Therefore, Engrofoods has a large number of consumers throughout the country.


After the introduction The EFL mission and vision statement, External and internal audit steeple analysis, situational analysis ie.SWOT analysis IEF matrix .EFA Matrix BCG matrix, space Matrix, PAQSM and at the end FINANCIAL RATIO ANALYSIS of the company has also been done. The company core competencies also discussed. Finally, certain recommendations are also given at the end of the report.

Introduction to Engro Pakistan:
Engro Chemical Pakistan Limited is the second largest producer of Urea fertilizer in Pakistan. The company was incorporated in 1965 and was formerly Exxon Chemical Pakistan Limited until 1991, when Exxon decided to divest their fertilizer business on a global basis and sold off its equity of 75% shares in existent company. The Employees of Engro, in partnership with leading international and local financial institutions bought out Exxon’s equity and the company was renamed as Engro Chemical Pakistan Limited. Engro is a public limited company listed on the Stock Exchanges of Karachi, Lahore and Islamabad. The principal activity of the Company is manufacturing, purchasing and marketing of fertilizers. The Company is also involved in the production and marketing of seeds and has invested in joint ventures engaged in chemical related activities. As part of its diversification strategy, controlling interest was acquired in a company offering industrial solutions in automation and control. A new milk plant has been established at Sukkur the milk is branded as Olpers.

Mission Statement:
Engro is progressing day by day because they have a vision and mission the keeps the motivated and keeps them going. Their mission as they describe as:

“Our mission is two fold, to help farmers maximize their farm produce by providing quality plant nutrients and technical services upon which they can depend. To create wealth by building new businesses based on company and country strengths in petrochemicals, information technology, infrastructure, food and other agriculture sectors.”


And further describing the adoption fashion they say,” In pursuing the mission we shall at all times be guided in our conduct and decision making by our core values.”

Vision Statement: Engro’s vision is
“To be the premier Pakistani enterprise with a global reach, passionately pursuing value creation for all stakeholders”.

A Diversified Conglomerate.
Fertilizer Business Agriculture accounts for 25% of GDP and 45% of employment in Pakistan Second largest Urea producer of Pakistan .Capacity975 KT/A Market share20% Second highest phosphates sales (~400KT/A) –Market Share 23% ECPL’s...
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