Fauji Fertilizer Company Limited, since its inception has
been playing a momentous role in the development of the economy, agriculture and
fertilizer industry. FFC is the largest manufacturer of urea with the brand name
''Sona''. In addition to its own production of Sona urea prilled it also markets
Sona urea granular and Sona DAP produced by FFC Jordan Fertilizer Company Ltd. (FJFC).
During the mid 70's the Government of Pakistan expressed the
desire that Fauji Foundation should establish a urea manufacturing plant to fill
the projected gap in demand and indigenous production. At that time fertilizer
imports were heavily taxing the foreign exchequer of the country. The Government
of Pakistan affirmed the project in Dec. 1977.
Fauji Fertilizer Company Limited (FFC) was incorporated in
May 1978 as a public limited company in the private sector. It was established
through collaboration between Fauji Foundation and M/s. Haldor Topsoe A/S of
Denmark as a joint venture of Pakistani and foreign shareholders.
The first urea plant located at Goth Machhi near Sadiqabad in
Rahim Yar Khan District was completed at a cost of Rs. 3,300 million and
commenced commercial production in June, 1982. In its first year of operations,
the plant operated at its designed capacity of 570,000 metric tons which was a
record achievement for any plant of this size any where in the world. As a
result of highly efficient operations, good maintenance and strong technical
support the production of Sona urea kept improving. To achieve still higher
production and efficiency a major modification step was accomplished in March
1992, which increased the yearly production to 695,000 metric tons which was 122
per cent of the original design.
FFC places great emphasis on safe operations which is
reflected by the several awards given to FFC by National Safety Council of USA.
FFC plants are energy efficient and considerable efforts and investments have
been made to ensure that they are environment friendly.
FFC began its marketing operations in April 1979. The
objective of the three years ''Seeding Programme" was to market imported
fertilizers in order to develop and establish its own marketing and distribution
network to handle its plant production. The marketing division is responsible
for all marketing activities such as sales, distribution, field warehousing,
planning, farm advisory services, finance, advertising/sales promotion and
With the commencement of production in June 1982, FFC started
marketing of "SONA" urea and imported phosphatic and potassic
fertilizers allocated to the Company by the Government. From the very beginning
a growth oriented marketing strategy was adopted keeping in view future
expansions. FFC operates in all the four provinces and Azad Kashmir. The
marketing area has been divided into 11 regions and 61 sales districts with a
network of 3,000 dealers well trained in fertilizer use, basic agronomy and
salesmanship. This network is spread over 1400 locations. This is supplemented
by direct sales to sugar mills, cotton ginners, rice millers and large farms. In
addition to direct shipments from the Plant and imported fertilizers from
Karachi, customers are being supplied from over 130 field warehouses spread all
over the country. The selling effort is effectively supported by good
advertising and sales promotion.
FFC, by the grace of Allah, was able to meet all the
challenges faced in the early years. It was able to market its entire production
and obtain the desired market share. Sona urea was immediately accepted by the
farmers and soon established itself as a premium brand. With the commencement of
production of FFC's first urea plant, the country became not only
self-sufficient but also surplus in urea. FFC therefore exported urea to many
countries which continued during the years 1983-1986 when local demand again
exceeded indigenous production. From 1986 our country again started importing
increasing quantities of urea. FFC again rose to the challenge for achieving the
goal of self-sufficiency in urea. In 1988 the 'Company embarked on a project to
set up another urea plant to manufacture 635,000 metric tons of urea per year at
a cost of 7 billion rupees. FFC Project II comprising of new ammonia and urea
plants commenced commercial production in March 1993.
With a combined production of over 1.4 million tons from both
the plants, FFC achieved the market leadership in urea market. FFC current share
in urea market is 44%.
The Government of Pakistan deregulated the trade and prices
of phosphatic fertilizers on Aug. 21, 1993. Subsequent to this decision FFC
started self imports of these fertilizers and as a result timely supplies were
arranged. Farmers were thus provided with quality product in bags with
guaranteed correct weight and this brought about a very positive qualitative
change in the phosphatic fertilizer business in the country.
Market development is an important and integral part of FFC
marketing strategy. FFC, since 1981, has been providing latest agricultural
technology to the farming community through farm advisory services for
increasing the agricultural production in general and maximizing the farmers
economic returns in particular.
A strong Farmer Advisory Service with qualified agronomists
established in 1981, has continued to expand and improve during the last 19
years. It provides soil-testing facility to the farmers at a very nominal cost
in addition to conducting crop demonstrations, field days, farmer meetings,
group discussions and farm visits. Technical literature containing latest
information on major crops for transferring know-how to the maximum number of
farmers is produced. The qualified and trained agronomists providing the above
services are fully mobile with four wheel drive vehicles for use in the rural
areas and are equipped with the necessary audio/visual aids.
The Company has conducted four international seminars on
Improving Fertilizer Use Efficiency, Rainfed Agriculture, Agri. Extension and
Seed. These seminars were attended by prominent scientists both from within and
outside the country who developed recommendations for use by the farmers,
research workers and policy makers.
Since its establishment FFC has achieved many landmarks in
different areas of its operations. All product sales from June 1982 to September
2000 are 22.89 million metric tons. This includes sales of 18.2 million metric
tons of Sona urea including exports of 0.39 million metric tons during urea
surplus years, which in a span of 19 years is a remarkable achievement. The
company saved foreign exchange valuing over US$ 2.9 billion through import
substitution and exports for the country. It has directly and indirectly
provided employment opportunities to hundreds of individuals. To date over 29
billion rupees have been paid to the Government through duties, taxes and excise
duty/surcharge on gas.
In 1991, the Company was listed on Karachi and Lahore Stock
Exchanges and in 1992 on Islamabad Stock Exchange. Shares were offered to the
Company's employees to motivate and promote a sense of participation among them.
In 1993/94 FFC achieved the distinction of paying the highest income tax in the
country's corporate sector. Based on the exemplary dividends to the shareholders
and the other criteria of Karachi Stock Exchange FFC was selected and placed in
the list of top 25 best performing companies of Pakistan consecutively for 6
years since 1994. In 1997 FFC topped the list. The company has continued to
operate profitably and has been paying dividends to its shareholders on a
regular basis. lSO-9002 certification received in November 1997 confirms the
excellent operational and maintenance skills of the employees at the Plants and
their high level of performance.
To meet the growing requirement of fertilizer in the country
and reduce dependence on imports, FFC with JPMC of Jordan has set up a new
company under the name of FFC-Jordan Fertilizer Company Limited (FJFC) with a
designed capacity of producing 446 thousand metric tons of DAP and 551 thousand
metric tons of granular urea. FFC has a 30 % equity participation in this new
company. This is the first time DAP and granular urea is being manufactured
locally. The Plant commenced its commercial production on Jan. 01, 2000. FFC has
undertaken the marketing of FJFC products through its already established
marketing network. With its inherent advantages, granular urea has supplemented
FFC prilled urea and DAP has broadened our product range.
Fauji Fertilizer Company Ltd. remains committed to continue
to play its predominant role in the development of agriculture in Pakistan by
not only supplying high quality fertilizers but also technical services to the
farmers in the years to come for improving agricultural productivity and
increasing their income.