Apr 02 - 08, 2001
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).
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
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 administration.
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's 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.
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.
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