From Esso to Engro
3
From esso to engro In 1957, the search for oil by Pak Stanvac, an Esso/Mobil joint venture led to the discovery of the Mari Gas field near Daharki ± a small, remote area in Upper Sindh province at the time. Esso proposed the establishment of a urea plant in that area which led to a fertilizer plant agreement signed in 1964. In the subsequent year, Esso Pakistan Fertilizer Company Limited was incorporated, with 75% of the shares o wned by Esso and 2 5% by the general public. The construction of a urea plant commenced at Daharki in 1966 and production began in 1968. At US $43 million with an a nnual production capacity of 173,0 00 tons, it was the single largest foreign investment by a multinational corporat ion in Pakistan at the time. A full-fledged marketing organization was established which undertoo k agronomic programs to educate the farmers of Pak is tan. As the nation¶s first fertilizer brand, Engro (then Esso) helped modernize traditional farming practices to boost farm yiel ds, directly impacting the qu ality of life not only for farmers and their families, but for the nation at large. As a result of these efforts, consumption of fertilizers increased in Pakistan, paving the wa y for the Company¶s branded urea called ³Engro´, an acronym for ³Energy for Growth´. As part of an international name change program, Esso became Exxon in 1978 and the Company was renamed Exxon Chemical Pak istan Limited. The Company cont inued to prosper as it relentlessly pursued productivity gains and strived to attain professional excellence. In 1991, Exxon decided to divest its fertilizer business on a global basis. The e mployees of Exxon Chemical Pakistan Limited, in part nership with leading international and local financial institutions, bought out Exxon¶s 75% equity. This was at the time and perhaps st ill is the most successful employee buy-out in the co rporate history of Pakistan. Renamed as Engro Chemical Pakistan Limited, the Company has go ne from strength to strength, reflected in its consistent financial performance, growth of the co re fertili zer business, and diversification into ot her businesses. Along the way, a major milestone in plant capacity upgrade coincided with the employee led buy-out; innovatively optimizing our resources, Engro relocated fertilizer manufacturing plants from the UK and US to its Daharki plant site ± an international first. Engro Chemical Pakistan Limited then started a journey of venturing into other sectors including foods, energy, industrial control and auto mation, PVC resin manufacturing and marketing, and chemical terminal and storage. In 2009 plans were announced of demerging the fertilizer business into an independent operating company. The expansion and growth in the company necessitated a change in the way the company operated and conducted business. Keeping in view the operations of multi category businesses, expansion strategy and growth vision, the management decided that the various businesses would be better served if the Company was converted to a holding company. As a result it was decided to demerge t he fertilizer business and establish a holding company structure to manage the a ffairs of various businesses.
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Transcript of From Esso to Engro
8/6/2019 From Esso to Engro
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From esso to engro
In 1957, the search for oil by Pak Stanvac, an Esso/Mobil joint venture led to the discovery of the Mari Gas field near Daharki ± a small, remote area in Upper Sindh province at the time. Esso proposed the establishment of a urea plant in that area which led to a fertilizer plant agreementsigned in 1964. In the subsequent year, Esso Pakistan Fertilizer Company Limited wasincorporated, with 75% of the shares owned by Esso and 25% by the general public.
The construction of a urea plant commenced at Daharki in 1966 and production began in 1968.At US $43 million with an annual production capacity of 173,000 tons, it was the single largestforeign investment by a multinational corporation in Pakistan at the time.
A full-fledged marketing organization was established which undertook agronomic programs toeducate the farmers of Pakistan. As the nation¶s first fertilizer brand, Engro (then Esso) helpedmodernize traditional farming practices to boost farm yields, directly impacting the quality of lifenot only for farmers and their families, but for the nation at large. As a result of these efforts,consumption of fertilizers increased in Pakistan, paving the way for the Company¶s branded urea
called ³Engro´, an acronym for ³Energy for Growth´.
As part of an international name change program, Esso became Exxon in 1978 and the Companywas renamed Exxon Chemical Pakistan Limited. The Company continued to prosper as itrelentlessly pursued productivity gains and strived to attain professional excellence.
In 1991, Exxon decided to divest its fertilizer business on a global basis. The employees of Exxon Chemical Pakistan Limited, in partnership with leading international and local financialinstitutions, bought out Exxon¶s 75% equity. This was at the time and perhaps still is the mostsuccessful employee buy-out in the corporate history of Pakistan. Renamed as Engro ChemicalPakistan Limited, the Company has gone from strength to strength, reflected in its consistent
financial performance, growth of the core fertilizer business, and diversification into other businesses.
Along the way, a major milestone in plant capacity upgrade coincided with the employee led buy-out; innovatively optimizing our resources, Engro relocated fertilizer manufacturing plantsfrom the UK and US to its Daharki plant site ± an international first.
Engro Chemical Pakistan Limited then started a journey of venturing into other sectors includingfoods, energy, industrial control and automation, PVC resin manufacturing and marketing, andchemical terminal and storage.
In 2009 plans were announced of demerging the fertilizer business into an independent operating
company. The expansion and growth in the company necessitated a change in the way thecompany operated and conducted business. Keeping in view the operations of multi category businesses, expansion strategy and growth vision, the management decided that the various businesses would be better served if the Company was converted to a holding company. As aresult it was decided to demerge the fertilizer business and establish a holding company structureto manage the affairs of various businesses.
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Engro Fertilizers Limited was incorporated in June 2009 to manage the fertilizer business postdemerger. The demerger required the approval of the High Court of Sindh, which was granted onDecember 9, 2009 after obtaining the requisite approvals from the creditors and shareholders of the Company. The demerger became effective from January 1, 2010. Consequently, all fertilizer business assets and liabilities have been transferred to Engro Fertilizers Limited against the issue
of shares to the Company.
To reflect the change in the scope of mandate and scale of operations, Engro Chemical PakistanLimited has been renamed as µEngro Corporation Limited¶ with effect from January 1, 2010.Engro Corp, as the holding company is responsible for the long term vision of the company,overseeing the performance of the subsidiaries and affiliates, allocation of capital, managementof talent, leadership development, HR guiding policies, leadership role in public relations andCSR activities, control structures, legal and IT support.
Engro Corp will maintain a lean structure with a focused scope, allowing maximumempowerment to the subsidiaries and affiliates to drive the operations of their respectiveorganizations.
At Engro, we support our leadership culture through unique systems and policies which ensure
open communication, foster an environment of employee and partner privacy, and guarantee the
well being and safety of our employees.
Value:
Our core values form the basis of everything we do at Engro; from formal decision making to
how we conduct our business to spot awards and recognition. At Engro we never forget what we
stand for. Following are our 12 core values:
Safety, Health & Environment
Ethics and Integrity
Leadership
Quality and Continuous Improvement
Enthusiastic Pursuit of Profit
External and Community Involvement
Candid and Open Communications
Enjoyment and Fun
Innovation
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Individual Growth and Development
Teamwork and Partnership
Diversity and International Focus
Engro Flood Relief Effort:
Engro Corporation Limited has committed itself to organizing a relief effort in response to
Pakistan¶s hour of need. The relief efforts are to be focused in the most severely affected areas of
Ghotki & Sukkur in Sindh and Muzaffargarh & Layyah in Punjab. A ³Flood Relief Taskforce´
has been set up, which is responsible for coordinating all relief efforts in these areas, to provide
basic necessities; food, water, shelter, hygiene kits, utensils and medical aid.
Engro Corp is working with Pakistan Poverty Alleviation Fund (PPAF), Sindh Rural Support
Organisation (SRSO) and local NGOs. We are mobilizing funds with a minimum target of Rs.
200 million in collaboration with our partner organizations, support of our employees, and the
general public.
ABOUT ENGRO EXCELLENCE AWARD
Engro Corporation will be hosting the first Engro Excellence Awards in 2011. The Engro
Excellence Awards will give Pakistan a chance to present itself to the world as a nation of
talented people who are capable, knowledgeable and innovative. The press conference
announcing the Awards will be held in December 2010.
The first Engro Excellence Awards will recognize the contributions of three worthy recipients,
one each from the fields of social and humanitarian services, literature and natural & applied
sciences. Nominees are to be adjudicated by a jury comprising of five of Pakistan's most
esteemed and respected personalities, each of whom is considered a symbol of excellence and
beacons of hope in their relevant fields. Dr. Ishrat Hussain is the Chairman of the jury, who will
be assisted by Dr. Iqbal Chowdhry, Dr. Nafis Sadik, Prof. Anita Ghulam Ali and Mr. Iftikhar
Arif.
The Engro Excellence Awards aims to be an annual event and in the long run aims to be seen as
one of the most prestigious civilian awards ceremony in Pakistan.
