Agriculture is a pillar of Pakistan’s economy, representing 45 percent of the workforce and 21 percent of GDP and for this sector growth fertilizer is main source of Pakistan. Since Pakistan is an agro-based country there are well renowned manufacturers and suppliers of fertilizers in Pakistan. Pakistan is also one of the ten major producers of wheat in the world with an average 24 million tons output per season. Major fertilizers industries of Pakistan produced different kind of fertilizers with ranking of Engro Pakistan 33 percent.
Important fertilizer companies in Pakistan are: Fauji Foundation, Pak China Fertilizer, Engro Chemical Lyallpur Chemicals & Fertilizer, Dawood Hercules, Pak-Arab Fertilizer and Pak-American Fertilizer.
Urea production share includes Fauji Fertilizers (Goth Machi) 38 percent, Fauji Fertilizers (Bin Qasim) 7 percent, Engro Fatima Pak 6 percent, Arab (Multan) 8 percent, Agri Tech (Mianwali) 7 percent, Dawood Hercules (Skp) 6 percent, while only FF produces DAP.
Urea and phosphate market share by firm are 44 percent, 9 percent, 27 percent, 6 percent, 9 percent, 5 percent, and urea market share includes Fauji Fertilizers and National Fertilizer Marketing Ltd.
Fauji Fertilizer Company Limited (Partners in Prosperity)
FFC provides a classical case of business success which ensures dividends for all stakeholders. The stakeholders are not limited to direct business partners but also include the government, the community and general public at large. In this unique business model where maximum share of profits is distributed amongst its shareholders.
A foundation takes main share of profits for health and education of veterans and their families while rest of the profit is distributed to public shareholders. FFC also contributes huge amounts in form of taxes to the government for people of Pakistan.
FFC heavily invests in corporate social responsibility ventures for the deprived population in health education and in people hit by natural calamities. FFC plays a significant role in educating, facilitating and guiding farmers about the latest agri-technologies, soil testing and farming techniques.
Marketing services and network:
Urea is a critical ingredient for agriculture productivity and ensures food security in the country. FFC has been instrumental in establishing a broad network of distribution and sales throughout the entire geographical territory of the country, whilst maintaining fair price parity amongst the low consumption/far flung areas.
FFC is helping the nation through various setups of farm advisory services regarding fertilization, soil testing, water sampling and balanced use of fertilizers. These initiatives are playing a key role in maximizing the agricultural output of the country and achieving self-sufficiency in staple foods.
FFC has progressively grown over the past 38 years and currently has 3 x fertilizer plants and has the largest fertilizer market share in Pakistan. The company has diversified into other businesses such as the banking sector (acquisition of Askari bank), food business (Fauji Fresh n Freeze) and has pioneered Wind Energy in Pakistan with a 50MW Wind Power Project at Jhampir Sindh.
The company owns three plants with a combined capacity of production of well over 2 million tons per annum. Two of the plants are located in Goth Machhi established in years 1982 (Plant-I) and 1993 (Plant-II). Plant-III is located in Mirpur Mathelo, which was acquired in the year 2002. The plant acquired at 88 percent efficiency of book value back in 2002 is today working with 108 percent efficiency. This speaks of FFC professionalism.
FFC has always looked beyond its financial profitability and is one of the highest contributors to the national exchequer, having contributed approximately Rs398 billion. Since inception of the Company only in the year 2016, FFC contribution amounted to Rs45 billion as tax payment.
Community uplift initiatives:
FFC like all times has stood by the nation by making significant contributions towards the uplift of the underprivileged segments of the nation through its CSR activities in the sectors of health, education and community awareness.
In addition; FFC also has established a farm-advisory service for the plight of farmers which imparts agri-services and awareness to more than 1.7 million farmers.
The company’s CSR contributions are as under:
In health sector FFC has:-
- Two fully operational hospitals providing health services to almost 80000 patients per annum.
- Donated coronary care unit and burn centre at Sheikh Zahid Hospital Rahim Yar Khan.
- Donated the only coronary care unit of District Ghotki.
- Donated a complete Radiology Department to Shaukat Khanum, Peshawar (in 2007) etc.
- Setup free medical camps.
In educational sector FFC is:
- Adopting and assisting over 50 government schools in the neglected and deprived areas.
- Providing infrastructure, educational and teaching support to approx. 15,000 students.
- Offering more than 250 scholarships to future stars of LUMS, Wah Engineering, FC College, and Cadet College Ghotki etc.
The role of FFC in the hour of need are:-
- Started a project of 207 houses for flood victims of 2010 at District Ghotki and Rahim Yar Khan constructed with the help of Red Crescent Society worth Rs102 million with 50 percent contribution from FFC.
- Till date has allocated Rs280 million for disaster relief and rehabilitation.
- Contributed Rs50 million for IDPs of North Waziristan.
In recognition of the company’s achievements/services; FFC has been awarded by:
- South Asian Federation for Accountability (SAFA) for transparent business practices and corporate governance.
- The company has also enjoyed the privilege of being the first among the ‘top 25 companies’ on Pakistan Stock Exchange (PSX) for six consecutive years since 2010.
- United Nations Global Compact Pakistan (UNGC) has also lauded the company’s exemplary sustainable and responsible business practices in Pakistan by awarding the company with ‘Business Excellence Award.’
- In recognition of the company’s exemplary management standards, the company was conferred with the ‘Management Excellence Award’ by Management Association of Pakistan (MAP)
- The company was also presented with the ‘Platinum Award’ by Rawalpindi Chambers of Commerce and Industry (RCCI) for the year 2015 in terms of investment and payment of taxes amongst other factors.
- The Company has also been able to secure the excellence certification for ‘Protect & Sustain’ from the International Fertilizer Industry Associations (IFA) in recognition of exemplary Safety, Health and Environmental (SHE) standards being maintained by FFC.
- The company has also won top position in ‘Best Corporate Report Awards’ category by Institute of Chartered Accountant of Pakistan (ICAP) and Institute of Cost and Management Accountant (ICMAP)
- FFC has also won first prize for its Sustainability Report in the ‘Sustainability Report Category’ for third consecutive year in a competition held by ICAP/ICAMP.
- The company has achieved long term credit rating of AA and short term rating of A1+ denoting high credit worthiness and very low expectation of credit risk strengthening the confidence of company’s stakeholders.
- FFC has been recognized for professional achievements locally and internationally and became the first Company ever to achieve six consecutive first positions on PSX’s Top 25 company placements.
- FFC has been awarded for its business transparency and good corporate governance in South Asia by South Asian Federation of Accountants (SAFA).
- In recognition of its efforts towards community support and sustainable business practices United Nations Global Compact awarded FFC with Business Excellence Award.
To be a leading national enterprise with global aspirations, effectively pursuing multiple growth opportunities, maximizing returns to the stakeholders, remaining socially and ethically responsible.
In his message Lt Gen Shafqaat Ahmed HI (M) (Retd) CE&MD appreciated the sheer hard work and dedication of previous and present leadership and employees in making FFC a brand for ethical and successful business nationally and internationally. FFC is much more than a fertilizer company. It is a trustworthy, socially responsible and ethically defined company which looks after the benefits of all stakeholders including the community, he added.
He reiterated his resolve to stand with the government and other stakeholders/business partners to support all efforts in supporting the farming community in particular and other stakeholders in general for making an economically strong Pakistan.
FFC Provides A Good Business Model
FFC provides a classical case of business success which ensures dividends for all stakeholders.
The stakeholders are not limited to direct business partners but also include the government, the community and general public at large.
In this unique business model where maximum share of profits is distributed amongst its shareholders. A foundation takes main share of profits for health and education of veterans and their families while rest of the profit is distributed to public shareholders.
FFC also contributes huge amounts in form of taxes to the government for people of Pakistan. FFC heavily invests in corporate social responsibility ventures for the deprived population in health education and in people hit by natural calamities.
FFC plays a significant role in educating, facilitating and guiding farmers about the latest agri-technologies, soil testing and farming techniques.
FFC achieves its fertilizer production targets due to its well managed manufacturing plants. This is achieved through extensive Balancing, Modernizations and Replacements and untiring efforts of our experienced and committed technical teams.
Rs 10.71 billion net profit in fiscal year 2017
Fauji Fertilizer Company (FFC) has announced financial results for the year 2017 with net profit of Rs10.71 billion translating into EPS of Rs8.42. Company declared dividend of Rs3.00 per share for the quarter thus aggregating Rs 7.00 per share for the year 2017.
Notwithstanding the market fluctuations and daunting business challenges due to regulatory uncertainty, coupled with other complexities, FFC has been able to come up to expectations of its shareholders and stakeholders by remaining socially and ethically responsible.
On the production front, company crossed 2.5 million tons urea production for second consecutive year while attaining record ever highest urea sales of 2.697 million tonnes.
Highest ever FFC DAP imports and its sales over 0.5 million tons were also recorded during the year. This success has only been possible by adopting comprehensive mitigation strategy to brave the negative impact of the market through stringent cost control measures and professional management of financial operations.
Income on Investments and deposits were recorded at Rs1.16 billion. Dividend income of Rs2.28 billion was recorded for the whole year while contributions to the exchequer amount to Rs5.03 billion during 2017.
FFC goes live on digital core for real-time analytics
Enabling Pakistan Vision 2025’s goals of growing Pakistan’s agricultural contribution to GDP through technology, the Fauji Fertilizer Company Ltd (FFC), Pakistan’s largest fertilizer company, has gone live on a digital core for real-time analytics. FFC successfully deployed the SAP S/4HANA next-generation business suite.
Agriculture is a pillar of Pakistan’s economy, representing 45 percent of the workforce and 21 percent of GDP, according to Pakistan Vision 2025.
The Vision aims to use technology to make farmers 20 percent more efficient, decrease the crop yield gap by 40 percent, and reduce crop losses by 50 percent.
The China-Pakistan Economic Corridor is also seeing strong investment in agricultural technology.
“By leveraging on the latest and emerging technology innovations provided by SAP S/4HANA, FFC has been able to transform its business processes to attain excellence previously impossible with traditional management practices, thus becoming the example of modern success”, said Lieutenant General Shafqaat Ahmed (Retd), CEO and Managing Director, Fauji Fertilizer Company Ltd. “I congratulate my team for achieving this milestone.” Saquib Ahmad, Country Manager, SAP Pakistan, said: “Digital transformation will contribute to Pakistan’s economic growth.
Data analytics can enable agile planning for more productive businesses.
As a digital vanguard, FFC is spearheading Pakistan Vision 2025’s goals of agricultural innovation, with digital solutions helping to strengthen the agricultural sector’s productivity.”
FFC has successfully woven intelligent capabilities into market-leading Business Suite system platform to facilitate enterprise-wide innovation. The aggressive use of data is transforming business models, facilitating new products and services, generating greater utility, and ushering in a new culture of management.
“The companies that have had the most success with digital transformation don’t just change what they do – they change how they do it,” said Fakhar-ul-Hassan, Head of IT, Fauji Fertilizer Company Ltd. “Using improved business processes, mobility and real-time analytics on our supply chain, we can help our sales force and customers to gain the fertilizers that can help them achieve more production.”