Engro Corporation Growth through diversity

Transcription

1 Engro Corporation Growth through diversity

2 Engro Corp A journey through time 1965 ESSO Pakistan Fertilizer Co. Ltd incorporated after discovery of Mari Gas Field 1978 ESSO becomes EXXON 1991 Exxon divested Its equity company Renamed Engro Chemical Pakistan Limited Launched Chemical Jetty PVC Manufacturing Dairy & Food Power Generation Fertilizer Trade Rice Business

3 Engro Corp Presence in Pakistan Engro Fertilizers Limited, a wholly owned Engro subsidiary. Premier fertilizer manufacturing and marketing company 2010 Revenue USD Million Engro Vopak Terminal Limited is a joint venture with Royal Vopak of the Netherlands Services to the growing chemical and petrochemical industry of Pakistan 2010 Revenue USD 58.8 Million Engro Powergen is a fully owned subsidiary, to develop power projects in Pakistan. Engro Energy Limited Thar coal project 2010 Revenue USD 66.3 Million Engro Polymer & Chemicals Limited Pakistan's leading manufacturer and marketer of PVC (polyvinyl chloride) resin, 2010 Revenue USD Million Leading global automation business providing process and control solutions Operating in UAE and the United States 2010 Revenue USD 20.9 Million Engro Foods ltd. Dairy business set up as a stepping stone to enter the food business 2010 Revenue USD 240 Million Engro EXIMP is Pakistan's largest importer of phosphates and potash fertilizers Entering Global rice export market - Owner of an Integrated Rice Processing Unit 2010 Revenue USD Million

4 USD. Million Currently has long term credit rating of AA from Pakistan Credit Rating Agency Revenues ,300 1,340 Investments from 2007 to 2012 have amounted to over USD 1.9 Billion PAT o Fertilizer(USD 1.1B) o PVC (USD 265M) o Foods (USD 180M) o Chemical handling (USD 36M) o Power Generation (USD 200 M) o Rice Business (USD 55Mn) Total Assets 235 1,915 2,000 2,030 performance over the years

5 Corporate Social Responsibility we help turn dreams into reality

6 Engro EXIMP Introducing Engro EXIMP Private Limited, established in 2003, is a wholly owned subsidiary of Engro Corporation Trades in commodity fertilizers such as DAP, MAP, MOP and SOP Established a fast growing basmati rice trading business over the last 3 years Procures high quality basmati rice paddy directly from farmers and exports finished and packed basmati rice to customers across the world Owns & operates a large and state-of-the-art rice processing mill Annual turnover of Engro EXIMP Agri-Products in 2012 was Rs. 3.6 billion and in 2011 was Rs. 1.6 billion

7 Basmati Truly Aromatic Basmati is a variety of extra long grain rice grown only in Pakistan & India Basmati is a variety of It is extra notable long for its fragrance grain and rice delicate grown taste. Its name only means in "the Pakistan fragrant one" & in India. It is Sanskrit, but it can also mean "the soft rice notable for its fragrance and delicate taste. Its name means "the fragrant one" in It is primarily grown in the northern Punjab region of Pakistan and the Punjab and Haryana Sanskrit, but it can also mean "the soft rice. It is primarily grown through paddy region of India field farming in the northern Punjab region of Pakistan and the Punjab and Haryana region of India. The grains of basmati rice are longer than most other types of rice Cooked grains of Basmati rice are characteristically free flowing rather than sticky, and have a unique fragrance

8 Basmati The Jewel of Punjab Area 000 acres Production 000 MT ,246 3,327 2,917 4,165 4,260 3,734

9 Engro EXIMP The Rice Business VISION To become the Contract Packer of Choice for Brands and Private Labels globally FOCUS Focus on providing end-to-end contract packing solutions globally from product & packaging development to logistics Consistent supply of quantity and quality Sampling and testing as per EC regulations and norms including DNA fingerprinting, Aflatoxins, Pesticides Residue, Heavy Metals tests etc through globally renowned independent quality surveyors of Customer s choice Food Safety is our priority Product Portfolio includes White, Steamed, Brown and Parboiled Rice of all Basmati and most Non-Basmati Varieties Recommended for the following 9 certifications by a globally renowned and accredited certification agency Bureau Veritas: ISO-9001:2008, ISO-14001:2004, OHSAS-18001:2007, ISO-22000:2005, Dutch HACCP:2006, BRC, IFS, Halal and Kosher Standard

10 Engro EXIMP Procuring from the rice fields Largest Paddy Procurer in Pakistan in Engro is in direct contact with more than 3,000 farmers and 100 traders for the procurement of Basmati rice from the fields of Punjab To ensure top quality of raw material Engro is now directly involved with farmers and targets to procure majority of raw material directly from farmers: 2012: farmers (40%) / traders (60%) 2015 target: farmers (60%) / traders (40%) Engro Rice Procurement Centers 44 employees at Engro are directly involved with farmers on a daily basis: 33 Rice Procurement 11 R&D Development and Agri Services

11 Engro EXIMP Working with the farmers Group Discussions with Farmers, Literature Folder Distribution, Farm Input / Services Briefings Baseline Survey, Initial Awareness Farmer Visits / Meetings, Workshops, Focus Groups, Blitz, BTL, Town Storming, Briefings Agricultural Information Database, Contract & Contact Farmer Training Broader Collaboration with Ambassadors farmers, Agricultural input sectors Agro Services Basmati Seed Program Contract Farming Program Identification of Anchors, Potential Villages, Early adapters, Opinion Leader, Area Needs, Introductory, Awareness, Orientation & Motivational Visits & Meetings Direct Rice Paddy Purchase from Farmers, Arrangement of Bank loans for Farmers, Full Payments to Farmers within 3 days of supply

12 Engro EXIMP From field to final product Rice Grower Product Received at Plant Paddy Classification Schmidt Seeger Germany Paddy Cleaning Schmidt Seeger Germany Dryer Brock USA Silos Storage White Rice Packing Cleaning Schmidt Seeger Germany Whitening (1 pass) Buhler - Germany Parboiling Indus - India Color Sorting Buhler - Germany Grading Schmidt Seeger Germany De-stoning Buhler - Germany Husking Buhler - Germany Grading Schmidt Seeger Germany Color Sorting Buhler - Germany Processing Parboiled Rice Packing Polishing (4 pass) Satake- Japan Whitening (4 Pass) Buhler - Germany Brown Rice Packing

13 Engro EXIMP Integrated Rice Processing Integrated Rice Mill located in the heart of Punjab s Basmati growing area Land: 65 acres Initial cost of mill in 2010: US$ 38 million Plant Capacity o Reprocessing: 2 lines of 12 TPH each o Processing, Reprocessing from Buhler & Satake o Color Sorter from Buhler (Z 4 +) o Paddy Drying Capacity: increasing from 75 TPH to 150 TPH o Paddy Receiving, Drying, Parboiling and Silo Storage from Germany & U.S.A o Paddy Storage capacity increasing from 36K T to 66K T

14 Engro EXIMP Ensuring quality products Mill Certifications BRC Global Standard for Food Safety International Food Standard (IFS) ISO 22000:2005 ISO SQF (Safe Quality Food) 2000 Quality Code ISO 18001:2007 Dutch HACCP ISO 14001:2004 OHSAS 18001:2007 Halal Kosher Standard Environmental Compliance Occupational Safety & Health Administration (OSHA) Compliant National Environment & Quality Standards Compliant Treated (Disinfected & Filtered) water for Parboiling WHO standard for drinking water Effluent Treatment Plant IFC Limits Quality Control Tests Detailed Physical Analysis (Pre and Post Cooking Organoleptic benchmarking) DNA Testing (Genetic Mapping) Aflatoxin & Ochratoxin Tests Pesticide Residue Analysis for Rice Heavy Metals Test GMO Test

15 Engro EXIMP Consumer Packaging Solutions Complete packaging solutions for both Consumer & Commercial use Packaging options can range from 1-50KG Our Packaging options include the following & more: Plain Cotton Cotton Zeen Jute (Natural/Bleached) Woven PP bags Non- Woven PP (China Fabric) PET/LDPE Automated pre-formed packaging equipment at our Plant

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