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Quality brands attract foreign direct investment in Pakistan

If the quality and credibility of locally produced brands is taken as the criterion of the successful brands, Engro is one of the business houses which has successfully tapped the local market as well as attract Foreign Direct Investment (FDI) through partnership with global players.

Recently, Engro Corporation (ECORP) has entered into an agreement with FrieslandCampina for the sale of 51 percent of the Company’s shareholding in Engro Foods (EFOODS) in one of the single largest private sector Foreign Direct Investment (FDI) in Pakistan amounting to a total investment of US$450 million (430 million euros).

FrieslandCampina is one of the world’s largest dairy companies owned by 19,000 member farmers, with annual revenues of more than euro 11 billion. FrieslandCampina provides dairy products to millions of consumers worldwide everyday through its expansive global footprint with activities in over 32 countries, exporting to over 100 countries and employing over 22,000 people worldwide. Their global brands cater to a wide spectrum of consumers across several categories including dairy based beverages, infant nutrition, yoghurt, desserts, butter and cheese. Some of its best-known brands include Friso, Frisian Flag, Peak, Dutch Lady, Alaska and Rainbow.

This partnership is bound to uplift the brand image of Made-in-Pakistan brands, which is reflected in more and more investors into Pakistan market.

Dawood Group, which owns the management control of the Engro Corporation has taken a stride in the backdrop of a spectacular track record of success spanning over a decade, Engro Foods has played pivotal role in offering Pakistani consumers hygienic, nutritious and affordable dairy products through its brands Olper’s, Tarang, Dairy Omung and Omore.

Engro carries a list of a varied business portfolio to its business credit, which includes fertilizers, foods, chemical storage & handling, trading, energy and petrochemicals. Fuelled by the vision of becoming the premier Pakistani enterprise with a global reach, passionately pursuing value creation for all stakeholders. Engro’s investments in agriculture, foods, energy and chemicals are all designed to deploy inclusive business models to pursue an integrated and inclusive growth for all who interact with our businesses.

ENGRO PROFILE

The story of Engro is one that has remained intertwined with the growth of the country. At the heart of our strategy lies the vision to be a leading provider of world class products and services in the emerging and frontier economies in the energy, consumer and agricultural-inputs businesses thereby delivering on our promise of creating value for a multitude of stakeholders.

BREAKTHROUGH IN LPG STORAGE

A breakthrough in chemical and LPG storage, Engro Vopak Terminal Limited, is a joint venture of Royal Vopak of The Netherlands and Engro Corporation Limited.

The coming together of the largest storage and terminal service provider of Chemical, Oil and Gas products in the world and Pakistan’s most diversified business group has resulted in continuing provision of world class service to the growing chemical and petrochemical industry of Pakistan since 1997.

Engro Vopak successfully expanded its LPG storage capacity in 2012; the total storage capacity for LPG now stands at 7000 MT. “Our investment in the terminal operation is now over US$100m with storage capacity of 82,400 cubic meters.”

ENGRO FERTILIZERS

Engro Fertilizers Limited is a subsidiary of Engro Corporation and a renowned name in Pakistan’s fertilizer industry. It is traded on the stock market under the symbol ‘EFERT.

Engro holds a vast, nationwide production and marketing infrastructure and produces leading fertilizer brands optimized for local cultivation needs and demand. Engro is also a leading importer and seller of phosphate products, which are marketed extensively across Pakistan as phosphatic fertilizers.

Engro Fertilizers is poised to become the leading urea manufacturer in the country following major upgrading of its manufacturing capabilities. ENVEN 1.3–a tremendous expansion in Engro’s urea manufacturing facility went into production in November 2010 and looks set to end Pakistan’s near-term urea imports, leading to benefits of an expanded local urea base and savings in national exchequer.

POLYMER

The Engro Polymer was set up in 1997 by the name of Engro Asahi Polymer and Chemical Ltd. It was a joint venture between Engro Chemical (50%), Asahi Glass Company (30%) and Mitsubishi Corporation (20%) to set up a 100,000 ton capacity PVC plant at Port Qasim. The plant came into commercial operation in 1999.

In 2006, Asahi Glass divested from the business and Engro Chemical acquired its shareholding. The name of the company was changed to Engro Polymer & Chemicals Limited.

In 2007, the Company embarked upon an expansion and back integration project to enhance the PVC capacity to 150 KT and set up an EDC-Vcal and Chlor-alkali plants

FOOD BRANDS

Engro Foods is among the biggest and fastest growing companies in Pakistan with a vision to cater to local needs with products conforming to global standards.

Highly passionate about providing millions of people across the length and breadth of Pakistan and beyond with the ultimate brand experience, our product portfolio comprises some of the country’s biggest and best selling brands including Olper’s, Olper’s Lite, Omore, Dairy Omung, Olper’s Lassi and Tarang.

Fueled by a vision to bring to the fore innovative food products packed with quality, value and nutrition, Engro Foods made its foray into the consumer foods business in 2006 with the launch of Olper’s, our flagship all-purpose milk, which soon became a house-hold name widely known for its rich, creamy freshness, high nutrition content and exciting, vibrant packaging.

Since then, we have surpassed all expectations and given the foods business in Pakistan a new direction and a different spin with brands that go beyond the conventional and the ordinary by setting new standards in product innovation.

ENGRO POWERGEN

Incorporated in 2008 as a fully owned subsidiary to develop power projects in Pakistan, Engro Powergen is Engro Corp’s first initiative into the country’s power sector.

The focus of the company is to ease the burden on the nation’s energy sector by developing projects exploring cleaner, more efficient and economically viable sources of power generation including wind, hydro and solar energy.

The first Independent Power Project (IPP) – the Engro Powergen Qadirpur plant, is widely recognized for being Pakistan’s first ‘green’ power plant and the only facility of its kind to reduce carbon emissions via the utilization of permeate gas.

Engro has also entered into a strategic long-term partnership with the Sindh Government by establishing the Sindh Engro Coal Mining Company Limited as a joint venture launched to mine coal from Thar fields.

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