Mar 1 - 7, 2010

Fauji Fertilizer Company Limited (FFC), the largest urea manufacturer in the country, was incorporated on May 08, 1978 as a joint venture between Fauji Foundation, Pakistan and M/s Haldor Topsoe A/S of Denmark. It was established to fill the gap in demand and indigenous production. Presently Fauji Foundation (44%) and various investment companies, financial institutions and individuals hold company shares.

In 1986, the demand of urea in the country exceeded the domestic production and the country started importing urea. FFC came forward and put-up another urea manufacturing facility at Goth Machhi to meet the growing demand. The new plant commenced commercial production in March 1993.

The Company presently is operating three world scale urea plants with an aggregate design capacity of 2.048 million metric tons per annum. Two plants are located in Goth Machhi, south of Punjab province, and one plant (Ex-Pak Saudi Fertilizer Ltd, acquired through privatization) is situated at Mirpur Mathelo in Sindh province.

Over the years, our plants have demonstrated operational excellence, which serve as a reference for the process technology engineering concerns. Delegations from China, Middle East and Far East have visited our plant sites to acquire knowledge for their investment decisions. We accord product quality high priority and ISO-9002 certification confirms the excellent operational and maintenance skills of our employees and their level of performance. FFC places great emphasis on safe operations and many awards of honour from National Safety Council, U.S.A. reflect our resolve and strict compliance against plant safety standards.

FFC is listed on all the Stock Exchanges of the country and is one of the most traded scrip. The company since 1994 has been placed in the list of top 25 companies of Pakistan for fourteen consecutively years, topping the list in 1997. In 1993/94 FFC achieved the distinction of paying the highest income tax in the country (the only time these figures were made public).

The company markets over 3.8 million tons of fertilizers annually comprising 3.1 million tons of urea and 0.7 million tons of locally manufactured as well as imported phosphatic / potassic fertilizers. The company has also started marketing Boron to address the micronutrient deficiency in the soils, under its brand name "SONA". The company has also exported urea to China, Iran, Philippines, India, Bangladesh, Sri Lanka, Thailand, Tanzania and Afghanistan in the past and holds around 60% share of the domestic urea Production.

In November 1993, FFC together with Fauji Foundation sponsored the establishment of a Urea & DAP complex at port Qasim, Karachi in partnership with Jordan Phosphate Mines Company Ltd (JPMC) of Jordan. The new company, FFC-Jordan Fertilizer Company Limited (FJFC) was founded as a public limited company and was listed on the stock exchanges of Pakistan. JPMC withdrew its equity in 2003 and the name of FJFC was changed to Fauji Fertilizer Bin Qasim Limited (FFBL). Since the commencement of its commercial production, FFC has been marketing the entire production of FFBL under its own brand name "SONA".

FFC's vision for the 21st century is diversification and establishing projects beyond the territorial limits of the country in collaboration with world famous industrial holdings. FFC believes this will increase company value and will help in achieving sustainable growth. In pursuit of this goal, FFC, FFBL and Fauji Foundation together have setup a phosphoric acid plant in Morocco in collaboration with OFFICE CHERIFIEN DES PHOSPHATES (OCP), Morocco under the name of Pakistan Maroc Phosphore S.A. The equity participation of OCP in the project is 50% and the remaining 50% is shared by FFC, FFBL and Fauji foundation in the ratio of 12.5%, 25% and 12.5% respectively.

FFC since its beginning has contributed an aggregate amount of around Rs. 120 billion to the Government by way of taxes, levies, custom & excise duties, surcharges on gas purchases besides providing employment to hundreds of individuals.

FFC has made remarkable progress since its inception. Establishment of three projects including sponsorship of FFBL in a span of less than 20 years (Jun 1982-May 2002) each incurring over US$ 300 million is a performance record unparalleled in the country. The acquisition of PSFL entailing an investment of over Rs 8 billion is another landmark achieved by the Company. Building on the solid foundations the company continues to endeavor relentlessly to maintain its business efficiency & profitability, and is confident to take on new challenges.

FFC's marketing operations commenced in April 1979 with a pre-production program called the Seeding Program. With the commencement of commercial production from FFC's first plant in June 1982, FFC launched its product under the brand name of "SONA". Since inception, a growth oriented marketing strategy was adopted keeping future expansions in view and the relentless pursuit has continued ever since. The company markets its products in all the four provinces of the country and Azad Kashmir. FFCs marketing area is divided into 3 sales zones, 14 sales regions and 65 sales districts with a network of over 3,200 well-trained dealers spread out at over 1400 locations. Due to seasonality of fertilizer consumption, the Company has a vast well spread network of 150 field warehouses with a capacity of around 290 Kt to meet its storage requirements. Company's sales activities are well supported by planning, distribution and warehousing, advertising & sales promotion, finance, administrative and farm agronomic services.

FFC has been meeting challenges since the very beginning and has been able to market the entire production of FFC plants, even at the time of first plant's startup when the country was surplus in urea. The company not only has captured the desired market share but also has constantly increased it even more than the production share. "SONA" today is an established premium brand, which is widely accepted by the farmers and is synonymous with high quality. The company ensures guaranteed correct weight to the farmers and this policy has brought positive qualitative change in the fertilizer business.

FFC sells a program rather than just products and for this end, the company has adopted a customer-oriented strategy of marketing quality products backed by efficient and effective support services. Special emphasis is paid on market development through practical and innovative farmer education. The company has been extending farmer advisory services through qualified agricultural experts since 1981, even a year before the commencement of commercial production. This free of cost on the spot service for the farmers is provided in the form of crop demonstrations, field days, farmer meetings, group discussions and farm visits. The company also prints and distributes technical literature on important crops in regional languages during these activities. FFCs package of services also includes free soil/ water testing through most modern laboratories. Computerized analyses and recommendations are given to farmers from five Farm Advisory Centers. FFC pursues an innovative policy towards farmer education and utilizes electronic, print and roadside advertising for this purpose. Native languages are also used in radio broadcasts.

The company has also conducted four international seminars on core agricultural issues. Various local and foreign luminaries attended these seminars and special recommendations were developed in these seminars to address the important issues and to enhance agricultural production.

Fauji Fertilizer Company Ltd. remains committed to play its role in the development of agriculture in Pakistan by not only supplying high quality fertilizers but also by providing quality technical services to the farmers in the years to come. FFC continues to improve the livelihoods of the farmers through improved agricultural productivity and increased farmer income.

FFC understands the collective responsibility towards achieving a greener earth and all its energies & efforts are directed towards achieving this objective. Over the years, the company has built and preserved an innovation-adept culture that promotes transparency, accountability, honesty, integrity and diligence in its dealings with employees, customers and all other stakeholders. FFC considers diversification as a major factor behind corporate sustainability in the future economic/ business scenario and continues to explore new frontiers in this regard.