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Executive Summary

The repot at hand provides useful insight about Engro Foods Pakistan Ltd, Established in 2006, a 100% owned subsidiary Forces in the external environment that affect companys performance are, political, economic, social and technological whereas company-specific external forces are Major Players in the food Industry, which are ten in number; Our competitor Nestle has the 39%market share. Typical packed milk consumers are the children. Therefore, Engrofoods has a large number of consumers throughout the country. After the introduction The EFL mission and vision statement, External and internal audit steeple analysis, situational analysis ie.SWOT analysis of the company has been done. The company core competencies also discussed.

Engro Businesses:
Our diversified businesses represent our immense growth potential to generate opportunities for creating and sustaining value for our stakeholders.

Engro Fertilizers Limited: Engro Foods Limited: Engro Polymer & Chemicals Limited: Engro Powergen Limited: Engro EXIMP Private Limited: Engro Vopak Terminal Limited: Avanceon Limited:

Engro is one of Pakistans most progressive, growth oriented organizations, yet we never forget where we came from. Our history is a part of who we are today. Our diverse range of companies represent our rich legacy of innovation and growth. We are proud of our heritage and experiences, as these are the things that define who we are and where we are going.

From Esso to Engro:

Engro Chemical Pakistan Limited is the second largest producer of Urea fertilizer in Pakistan. The company was incorporated in 1965 and was formerly Exxon Chemical Pakistan Limited until 1991, when Exxon decided to divest their fertilizer business on a global basis and sold off its equity of 75% shares in existent company. The Employees of Engro, in partnership with leading international and local financial institutions bought out Exxons equity and the company was renamed as Engro Chemical Pakistan Limited. Engro is a public limited company listed on the Stock Exchanges of Karachi, Lahore and Islamabad.

Engro Foods Limited:

Engro Foods is subsidiary of Engro Chemical Pakistan Ltd. which is one of the most reputed enterprises in Pakistan with more than 40 years of diversified business operations in the areas of fertilizer and chemicals. Engro Foods started its business operations in March 2006 and with the successful launch of Olpers Milk, Tarang, Olwell, and Olpers cream, it has established itself as a major player in the foods business. Engro Foods has already set up two processing plants at Sukkur and Sahiwal. With the ever expanding milk collection network and processing facilities, the Supply Chain has geared us for the growing sales of our products. We believe that our recent successes will take us to our goal: To be one of the biggest players in the food business. Our aim is to dominate the food business, and to achieve this we will settle for nothing less than the cream! Engro Foods vision is Elevating Consumer Delight Worldwide and the Company aims to generate a significant portion of its revenue from foreign operations.


There are several core competencies of EFL given below;

EFL foods Pvt. Ltd has been able to build a good brand name in a number of years. There are several consumers who are loyal to the brand and do not shift to other brands EFL. Is only the recognizable food company which is doing business without interest, which means that they do not take loan. EFL has one of the most modern plants which has the latest technology and has a high production capacity. HFL has one of the most extensive distribution networks across the nation. It has one of the best distributions..



Research & Development Financial Position Market Share Product Quality Price Competitiveness Management Global Expansion Customer service Network Sales And Distribution Production Capacity Alliances

Head Office: Engro Foods Limited 6th Floor, Harbor Front Building Marine Drive, Block 4, Clifton Karachi, Pakistan. At A Glance (as of December 2009):

Total Employees: 928 Sales Revenue: Rs. 15,900 Million Investments: Rs. 153 Million Profit After Tax: Rs. (434) Million

Stock Ticker: Engro Foods Limited is a fully owned Subsidiary of Engro Corporation and is not traded on the stock market. Companies:

Engro Foods Supply Chain (Private) Limited.

Executive Officers: Sarfarz Ahmed Rehman Chief Executive Officer.

Our People:

People at EFL are very dynamic and vibrant with an attitude of challenging the norms, at the same time these people are highly professional, ethical and result oriented. These are people who want to shine, make a name for themselves and for that they are willing to go the extra mile.

Values that we live by

Core Values
Our employees performance can only flourish in a sound work environment. That is why Engro is committed to supporting it leadership culture through systems and policies that foster open communication, maintain employees and partner privacy, and assure employees health and safety. 1. Leadership 2. Innovation 3. Diversity and International focus 4. Quality 5. Continuous Improvement 6. Candid and open communications 7. Individual growth and development 8. Enthusiastic pursuit of profit 9. Ethics and integrity 10. Safety, Health and Environment


Elevating Consumer Delight Worldwide".

Build Branded food business to improve quality of life by offering tasty, affordable and highly nutritional products to our consumers while maximizing stake holders' value .

In Planning Engro managers engage in planning, they define goals, establish strategies for achieving those goals and develop plans to integrate and coordinate activities. In Engro Pakistan all the mangers are involve in planning function. The chairman with the help of all the directors set some long term as well as short term goals, and then the directors and manager make the strategies to accomplish such goals.

Objective and goals:

Engrofoods main objectives are to supply everyone their favorite olpers Milk and to satisfy the consumer needs and wants. Engrofoods second main objectives are to provide profit to the shareholders and increase the market share. EFL dreams to be BIG. We want to be a major player in the food industry which is also evident in our vision, "Elevating Consumer Delight Worldwide". EFL wants to challenge the industry norms and surprise whoever has eyes on EFL.

STRATEGIC Internal and external Audit:

i. STEEPLE Analysis:
No organization exists in a vacuum; the environment within which the firm has to operate will affect the way that strategy is both planned and carried out and changes in the environment is also the most likely reason for making changes in the strategy. Changes in the environment are also the most likely cause of failure of strategic plans Engro Foods like all the organizations they also have to face such kind of environment which is very dynamic. And they have planned to face such dynamic environment.

S - Social Factors:
Engro food has helped to bring about a change in life style of the Pakistani People by introducing UHT (Ultra High Treatment) Milk, as the literacy rate is improving and it is resulting in a better awareness of the olpers and Tarang UHT treated milk and is helping 6

them improve their sales and Milk with its basic benefits has helped improve the image and more usage has been seen in the past years.

T - Technological Factor:
. Engro food administrators claim that their plant adopted the latest technology for milk processing and thus it had an edge over other around twenty plants in competition including Haleeb, Milkpak as all other plants were based on obsolete European technology. The idea behind UHT investment was to provide consumers with the best quality of packaged dairy and food products that no other company can produce.

E - Economical Factor:
Engro Foods is strongly affected by both the Economic and the Demographic environment around and have to keep on taking different steps to respond accordingly.

E - Environmental Factor:
. Engro Foods like all the organizations they also have to face such kind of environment which is very dynamic. Engro food has a friendly environmental culture within the organization to make their employees comfortable and to deal with the external problems. There are few seasons in which the availability of milk reduces that effect the production of milk and left Engro food with fluctuated sales.

P - Political Factor:
Engro food also abides by the rules formed by the Government and set their strategies that are according to the laws and legislations of the Government. Engro food abides to laws set by the government for trade policies, government policies and completes its responsibilities in a better manner.

L - Legal Factor:
Engro foods always stand by the rules and legal conditions imposed by the Government and set their strategies that are according to the employment laws and legislations of the Government they are working under. Engro foods have the legal laws like, Minimum wage, working time.

E - Ethical Factor:

Engro foods are well renowned company operating in the milk industry since 2002. And the reason for this is importantly their ethical values. They dont sale on credit or on interest because they consider it unethical and not according to the law of our religion.



The threat of new entrants lies within the food industry itself. Some companies have carved out niche areas in which they underwrite dairy supply. These food companies are fearful of being squeezed out by the big players. Another threat for Engro food company is other food services companies entering the market.

Capital requirements:

Competing in a new industry requires resources to invest. Production of packed products requires huge investment of financial, human, technical, and marketing resources. At the moment Engro Olpers have some threats like from new entrants goodmilk product of shskargang food.


The suppliers of Engro food might not pose a big threat, because of the reasons;

Number of suppliers:

Raw milk is standard commodity and is available in the open market from a large number of milkmen. If anyone refuses to sell its product then Engro foods can buy it from others who are already willing to sell to company.

Importance of volume to supplier:

Suppliers also have less leverage to bargain over price because theEngro foods is purchasing the large volume of their milk and suppliers dont have much option to sell milk to others.


Engro food always consider the bargaining power of buyer before set the price. 4. AVAILABILITY OF SUBSTITUTES : This one is pretty straight forward, for there are plenty of substitutes in the food industry. Most large food companies offer similar suites of services. Companies focusing on niche areas usually have a competitive advantage, but this advantage depends entirely on the size of the niche and on whether there are any barriers preventing other firms from entering.

The food industry is becoming highly competitive. The difference between one Food Company and another is usually not that great. As a result, food industry has become more like a commodity . In case of Engro foods so far nestle and hale are the only diverse rival and another players that has just joined the UHT Milk sector is goodmilk, no doubt the competition between Engrofoods and Haleeb is quite intense both are engaged in consistent homework just to break and attract the customer towards each other

SWOT Analysis:
Engros back.
Olpers is a brand of ENGRO foods. This means that consumers can relate their former image of ENGRO foods to Olpers. ENGRO is a well established brand name in Fertilizer, IT and infrastructure business. ENGRO foods can easily afford research and development costs for Olpers have in order to introduce new products. It can also distribute the brand through better channels because of its long term relationship with distributors in the agriculture sector.

Positive response from customers:

In first year, EFL crossed 1.4 billion sales figure which shows customers satisfaction upon EFLs products. 4. Its taste, quality proposition and world-class quality proposition system.

Strong consumer & product research:

Olpers done a strong consumer & product research before and after launching the product. This has provided them the perfect launching pad to eventually emerge as a global player in the food industry. To develop its future portfolios, EFL has hired various global research partners like AC Nielsen, Mindshare, JWT Asiatic and MARS marketing and advertising agencies.

Third-Generation Plant:
EFL only, has the third-generation UHT milk plant in the country. EFL plant is the only plant in Pakistan that uses Bactofuge technology to virtually eliminate bacteria and ensure premium quality and hygiene.

Owning Red Color:
The company has not owned the color red like Nestle has a green Milkpak; Haleeb has a blue carton etc. This may create problems because when a consumer enters a grocery shop, then he/she might have problems in recalling the brand because there is no color association attached to Olpers. The company may need to find a suitable color in which to focus its upcoming marketing strategies.

Low Quality Milk:

EFL is not having its own dairy farms; it largely collects loose milk from farmers & gwalas through its 40 milk collection centers, which sometimes is of low quality and impure because they add vegetable oil to milk to get higher prices.

EFL is dependent upon Tetra Pak for the packaging of its entire dairy products. Tetra Pak is the only option available to Olpers for packaging because it is having monopoly in the packaging sector in Pakistan. Due to this reason, Tetra Pak can charge them higher and it could increase the production costs.


Milk collection & distribution costs:

EFLs 34 out of 40 milk-collection centers are located in Punjab, where as its only milk processing facility is situated near Sukkur (Sindh). It increases the milk collection & distribution costs; and also increases the chances of milk getting spoiled because of increased traveling time.

Narrow brand portfolio:

It has been more than a year now, when EFL launched its first dairy product, Olpers Milk on March20, 2006. But EFLs brand portfolio still consists of just 3 products i.e. Olpers Milk, Olwell Milk and Olpers Cream.

Increased funding by Government:
Government has decided to increase farmers funding. This is an opportunity for ENGRO foods because previously due to weather conditions and other reasons there was lots of wastage of milk but now that can be reduced as farmers will be better able to store milk for longer time periods.

Growing dissatisfaction with loose milk and increasing awareness about health and hygiene issues have led to increased processed milk consumption.

Third largest producer of milk:

Pakistan is the Third largest producer of milk in the world with a total production of 32 billion liter of milk a year, whose value is more than that of the combined value of wheat and cotton, This is quite an opportunity for ENGRO foods as there is lot of growth in this part of the sector.

Competition may pose a threat because the company will have to maintain its leadership in an expanding market so that it doesnt lose its market share to its competitors. For


Olpers it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb.

Perceptions and Price Differentials:

Consumers perceptions and price differentials can cause a threat for the company. It is important that Olpers comes up to the expectations of the customers and fulfills its conformance quality that is the company meets its promised specifications. Consumers preferences change with time and prices might create certain barriers in terms of the profit margins for Olpers.

The strategic priorities of Nestle Pakistan are claimed to be focused on delivering shareholder value through the achievement of sustainable, capital efficient and profitable long-term growth. Improvements in profitability would be achieved with due respect to quality and safety standards at all times. Nestle Pakistan envisions that the company should develop an extremely motivated and professionally trained work force, which would drive growth through innovation and renovation. Special training programs have been designed for employees at each level to keep up with and develop this vision.

Long term Planning:

Engro Foods expansion on a bigger scale:
Engro Foods Limited who had recently set up Dairy industry in Central Sindh (UHT Milk plant) by investing about Rs one billion, further plans to set up a similar set up in Central Punjab and also emerging as Food Giant firstly on National Level and secondly as world class International Food Giant by adding a large number of other food products through investment of $200 million plus, probably envying to emerge as an international food company on similar lines as NESTLE did. The company plans exporting its products to central Asia and Middle East.

Managers are also responsible for arranging and structuring work to accomplish the organizations goal. This is known as organizing. When mangers organize, they determine what tasks are to be done, who is to to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.


In organizing managers at Engro allocate and arrange human and non-human resources so that their plan can be carried out successfully. Like it allocate the machinery and advanced technology in production unit that must be a relating to accomplish our goals. 1. . Administration: Efficient management of all administrative affairs of Engro Foods (Pvt.) Limited is the job of the Administration department. From legal matters to general day-to-day operations of the office, the Administration department ensures that all affairs run smoothly. 2. Finance and Accounts: The Finance and Accounting departments at Engro Foods are responsible for the total financial management of the different businesses of the company. From the usual accounting statements and sheets to risk and portfolio management, the team ensures that every rupee coming into and out of the Companies' pockets is properly documented and audited. 3. Human Resource: The Human Resource department at Engro Foods (Pvt.) Limited spearheads the recruitment process to ensure that the finest human resource is taken on board at Engro Foods. Resumes of candidates are carefully filed and documented for current or future reference. The department, besides carrying out succession planning, maintains and implements HR policies pertaining to employment, retention and superannuation. Assessing training needs of employees and ensuring adequate training is also carried out by the professional HR team at Engro Foods. 4. Marketing: Consisting of leading marketing professionals of the industry, who are graduates of top business schools of Pakistan, the Marketing Department ensures that from product need identification to product development, launch and post-launch, all strategic decisions are made based on authentic information and research. Identifying the target markets, effectively communicating to them and building the image of the brands as well as the Companies, is the job of the professionals running the marketing at Engro Foods.


5. Milk Procurement: As all of our food products are milk based, the entire Milk Procurement department plays a critical role in defining the quality of the end product that reaches our customers. Ensuring regular collection of fresh and pure milk right from the farmer to the factory and ascertaining the freshness of milk all across the milk procurement process, is the responsibility of Milk Procurement department, consisting of food technologists working at the collection centers and veterinary doctors providing service to the farmers. 6. MIS: The MIS department at Engro Foods ensures that all automation is running error-free at all times. Regularly modifying and updating the Company's accounting software is also the MIS team's responsibility. 7. Production: Modern technology is part and parcel of Production at Engro Foods. The state-of-the-art plant set up near Sukkhar has a processing capacity of more than 300,000 litres of milk per day, making it one of the largest in the country. Professionally qualified human resource efficiently works night and day to maintain highest hygiene standards. 8. Quality Assurance: Quality Assurance is strictly followed in Engro Foods. Qualified food technologists at this department ensure that highest quality parameters are adhered to through all steps of production and that the products reach the consumers as per promise. 9. Supply and Distribution: This department ensures timely and effective distribution of the products to different shops and stores spread all across Pakistan. From transportation management to obtaining route permits and approvals, is done by this department.

Human Resource Management:

2009 was one of the most challenging years for businesses in Pakistan owing largely to the global economic slowdown, energy crisis and security situation in the country. Workers become the first victim of a precarious and uncertain economy.But Engro Foods hire the employees in 2009.. With the Grace of Allah, Engro Foods was able to continue its strategic imperative of investing in its people and there was not a single layoff at any level. We believe that the extraordinary production, sales and safety records achieved during the year are the outcome of the combined efforts of a highly competent and committed workforce operating in a performance driven high-energy environment .We hire employees considering them as soft assets in the company who will manage and optimize the use of the hard assets of the company in future. Employees are the only physical assets that appreciate in value. As the employees, learn more and more about the business and about their own role, their performance increases over the time. Following is a brief description of HR related initiatives undertaken during the year:


Organization Chart










Every organization includes people, and mangers job is to work with and through people to accomplish organizational goals. This is leading function. When mangers motivate subordinates, help resolve work group conflicts, influence individuals or team as they work, select the most effective communication channel, or deal in any way with employees behavior issues, they are leading. Managers at Engro influence others work behavior. Labours and subordinates to get optimum task achievement even by satisfying them accordingly.

HERZBERGS THEORy APPLICATION ON ENGRO FOOD: According to Engro motivation is nothing new its a force which derives people towards achievement. We are not only working for our self or for Engro but we all are working 17

for Pakistan. MOTIVATION FACTORS THAT REVOLVES AROUND ENGRO and THEORY Y: As per the Engros environment suggest every factor that revolves in its Atmosphere has two impact that is the positive and negative. 1. Flexibility 2. Environment 3. Top-level managers FLEXIBILITY: Engro provide its workers full flexibility, they are result oriented. They want their workers to perform their task efficiently and effectively. In organization as they give their workers the space to perform their task according to their own determination and giving best results to the organization in which they never compromise about their success. TIME: Engro do not care what time the workers enter or leave the office premises. They are only concern with the result which they are expecting. Employers there, are given a time period in which they have to complete their. They are goal oriented. They are least concern with the time employees spend in office. WORK: Work environment in Engro is challenging yet attainable, currently the Engro food is operating nine business units and is making a tough time for its competitor. Example of Olpers, a product of Engro foods can explain it clearly as it has given a tough time to NESTLE and HALEEB. TWO FACTORS THEORY AND ENGRO WORKING ENVIRONMENT: At Engro, they strive to uphold the tradition of excellence and become the employer of choice. There is a workplace where there employees feel confident, valued, and most importantly, inspired

They treat every employ as a part of their own family, whether it is managerial or non managerial employees, each one is treat respectfully and given equal deferentially, courteously, graciously and politely.



They understand the importance of family and appreciate that their employees need to balance their professional and personal responsibilities. It is Engros intent to make it easier for their employees to manage their work/life balance more effectively. Engro also encourage their employees to take part in numerous programs aimed at strengthening their overall wellbeing.


There constant pursuit towards the welfare of their employees has led to the formulation of many unique policies, to create a more positive work environment, promote greater gender diversity, provide opportunities for training and development and build career opportunities. Such policies include ethics policy, gift policy, non-discrimination and anti-harassment policy, maternity leave policy, part time work policy and off track policy.


Professionally Engro believes that networking, coaching and mentoring provide opportunities for people to grow personally and throughout their careers at Engro. Engro is known to be an equal opportunity employer. As part of their diversity initiatives, WEAVE was formed to facilitate informal networks and relationships among women employees of Engro across functions and affiliates. CEO: If the head or the upper management in an organization are simple, piratical, humble, realistic, down to earth, that is the CEO of the Engro foods MR. SARFARAZ as seen by the workers in the office said that for the past 3years he has being seen in 3 shirts and 3 pants. Then obviously there wont be any artificiality in the air due to this reason the workers are satisfied with their jobs and are motivated. Lets take an example of the EFL dinner where the CEO was standing along with the tea boy and the tea boy was asked to cut the cake and do the cake cutting ceremony. These factors explains that Herzbergs Theory of motivation is also present in the organization which satisfy all the workers with their jobs and are given such facility which leads them to job satisfaction, job reorganization, personal and job security and good relationship with the sub ordinates and upper level management. All the Motivational and hygiene factors are full filled with in the organization.



In Engro the managerial employees and non managerial employees are being also motivated through following factors. As the other companies Engro offers its employees: Mobile phones Compensation car Field car Car earned out Bonus which are performance driven Share option at higher level Annual leaves Salaries Medical, spouse and deadly disease like cancer and heart Allowances, provident funds

We have leaders of high integrity, energy and enthusiasm who have the necessary managerial, professional and people skills to inspire a group or an organization to set high goals and achieve them willingly. We believe that leadership skills need to be strengthened at all levels within our organization and that managerial and professional competence is a necessary foundation. INDIVIDUAL GROWTH & DEVELOPMENT: We strongly believe in the dignity and value of people. We must consistently treat each other with respect and strive to create an organizational environment in which individuals are encouraged and empowered to contribute, grow and develop themselves and help to develop each other.

Communication Network:
An understanding of managerial communication isnt possible without looking at the fundamentals of organizational communication. Communication within an organization is often described as formal or informal. Formal Communication: Communication that follows the official chain of command or is required to do ones job. Informal Communication: Communication that is not defined by the organizations structural hierarchy.

Communication Network:

The vertical and horizontal flows of organizational communication can be combined into a variety of patterns called communication networks. In Engro Pakistan all channel network is working because they think that employees are our most important asset of our organization. All the company policies and information is shared with the employee thats why they are going to progress. Engro Pakistan is one of the leading organizations in Pakistan and has a good communication network within the organization as well as outside the organization. They are always in touch with employees and shareholders for the betterment of organization. From better communication network there logo Growing with Pride is fully understandable

Candid and Open Communications:

Engro foods value communications that are courteous, candid and open and that enable each of us to do our jobs more effectively by providing information that contributes to the quality of our judgment and decision making. Effective communication should also provide the means for gaining understanding of the company's overall objectives and plans and of the thinking behind them.

Individual Growth and Development:

Engro foods strongly believe in the dignity and value of people. We must consistently treat each other with respect and strive to create an organizational environment in which individuals are encouraged and empowered to contribute, grow and develop themselves and help to develop each other.

Teamwork and Partnership:

We believe that high-performing teams containing appropriate diversity can achieve what individuals alone cannot. Consciously using the diversity of style, approach and skills afforded by teams is a strength, which we must continue building into our organization. Employees Welfare: 16 employees performed Hajj under Company's Hajj Scheme. A total of 357 employees have performed the sacred pilgrimage since 1988 under this scheme. This year, 36 employees performed Umrah under Company's Production Incentive Umrah Scheme making the aggregate of 336 employees since the inception of the scheme in 1997. Under this scheme, four employees are sent for Umrah in the month when a specified production target is achieved.

The final management function is controlling. After the goals and plans are set (Planning), the tasks and structured arrangements determined (Organizing), and the


people hired, trained and motivated (Leading), there has to be some evaluation of whether things are going as planned. To ensure that goals are being met and that work is being completed as it should be, Engros manager regulates organizational activities so that actual performance conforms to expected organizational standards and goals the mangers must monitor and evaluate performance. Actual performance must be compared with the previously set goals. If there are significant deviations, its managements job to get work performance back on track. Negotiator at Engro represents the organization in major negotiation affecting the managers area of responsibility means negotiator talk to external affecting factors to maintain and improve the Engros alacrity. According to Mintzberg Theory So far managers are performing the roles of symbolic duties, like figurehead, liaison etc. Managers perform informational and decisional skills applying inside and outside the organization. 1. Interpersonal Roles Figurehead at Engro performs symbolic duties of a legal and social nature. They are Board of Directors, Chief Executives, and Financial Managers etc. Leader builds relationship with subordinates and communicates with, motivates and coaches them that how all employees can improve their professional skills in Engro. Liaison maintains network of contacts outside work unit who provides help and information to other organizations and build good relation for Engro Sales Promotion. 2. Informational Role Monitor at Engro seeks internal and external information about issues affecting organization. Disseminator at Engro transmits information internally obtained from either internal or external sources, so that all employees go through by all current situations. Spokesperson in Engro transmits information about the organization to outsiders so people and other organizations can reach its features, benefits etc. 3. Decisional Role


Entrepreneur acts as initiator designer and encourager of change and innovation in Engro to promote diversity and best selling. Disturbance handler Takes corrective action when organization faces important, unexpected difficulties at Engro like Technical or Mechanical fault, Labor union issues, Labour health issues etc. Resource Allocator in Engro distributes resources of all types including time, funding, equipment and human resources so that services with in the organization and out side the organization should be manage in proper order to get maximum output from given resources and material.

Board Audit Committee:

The Board Audit Committee assists the Board of Directors in monitoring the framework of managing business risks and internal controls. The Committee also assists the Board in discharging its statutory and other responsibilities relating to internal controls, financial and accounting matters, compliance, and business and financial risk-management. As per latest scope of Internal Audit, it is no more police function rather it keeps the heads of various functions of the Company to perform their duties more efficiently and diligently. The Board Audit Committee of the Company comprises of four members. The Board of directors is responsible to ensure that majority of the members of the Committee are financially literate and possess the professional skills and personal characteristics necessary to carry out their duties as members of the Committee. The Board recognizes that it is desirable that at least one member of the Committee be a financial professional, with accounting and auditing or related financial management expertise.

Internal Audit:
The Internal Audit department comprises a team of 4 staff members, including the Chief Internal Auditor. The Internal Audit plan is reviewed and approved by the Board Audit Committee. The reviews performed by Audit are aimed at assisting the Board in promoting sound risk management and good corporate governance, through assessing the design and operating effectiveness of controls that govern key business processes and risks identified in the overall risk framework of the Company. Internal Audit's reviews also focus on compliance with the Company's policies, procedures and regulatory responsibilities, performed in the context of financial and operational and information systems reviews.. The functions of the Committee shall include the following: To review and approve the Chief Executive and Senior Executives' compensation; To establish all components of compensation for directors and recommend changes to the Board; 23

To assist the Board in reviewing and monitoring processes related to succession plans; To review and monitor processes and initiatives related to work environment and culture; To report to the Board of Directors on Committee findings, recommendations, and any other matters that the Committee deems appropriate; To perform such other duties and responsibilities as may be assigned to the Board Compensation Committee from time to time by the Board of Directors.

Management Committee:
The Management Committee is the consultative body within theEngro Foods, which supports the development of policies and ensures the alignment and continuous implementation of key priorities and performance. The terms of reference of the Committee includes the following: To ensure that HR policies and procedures are aligned with the vision and strategic objectives of the Engro food Company; To maintain a consultative role with the Board Compensation Committee; To ensure formulation of policies in the areas of HR Management and HR Development including Compensation, Benefits and Performance Management; To provide general oversight and philosophy of the management cadre compensation package; To discharge the responsibility relating to compensation packages by reviewing their competitiveness with the market to attract, retain and motivate the human assets; To oversee the Company's plans for succession planning and development and submission of Management Succession Plan to the Board; To ensure occupational health and safety of all cadres of employees; To provide leadership and guidance for the organizational transformation required to achieve the corporate goals;


Board Compensation Committee:

The Board Compensation Committee assists the Board in carrying out its responsibilities with respect to salary and other perquisites of the Company's senior executives. It also assists the Board in matters regarding compensation in relation to retirement and, welfare and other benefits plans.

Human Resource Committee:

The Human Resource (the HR) Committee assists and makes recommendations to the Board of Directors on matters relating to organizational structure, management development, succession planning and establishing compensation policies. Engro foods have launched an organization-wide drive to manage different categories of waste. Separate bins have been provided for this purpose. Paper Waste: A campaign is underway to minimize the use of office paper and recycle the waste. Paper waste is being collected and will be sent to some paper mill for recycling and manufacturing of office stationary. Metal Waste: Metal waste is stored at the scarpyard and then sold for recycling.

Glass Waste:
Glass, plastic and rubber waste is disposed off in an environment friendly manner.

An Engro food trains its employees every year. we have seat belts at every vehicles and we have Temperature gates at every supply centre and store and also working properly .we collect pure milk from central Punjab cities (Sialkot, Gujarawala, Sialkot, Okara and Sakur etc )

Comparison of Sales:


Years 2006 2007 2008 2009

16 14 12 10 8 6 4 2 0 2006 2007

Sales (in Arab) 3 7 11 16



Company Engro Nestle Others

50% 40% 30% 20% 10% 0%

Market Share (%) 41% 39% 20%

Engro Nestle Others

Market Share (%)


Haleeb 13%

Others 5%

Good Milk 16%

MilkPak 43%

Olper's 23%

Engro food company write a report of every employees in every year. If a employ does not work properly or not obey or fulfill the company requirement then maximum three time report it and company dismiss the employ. company inspectors inspection the works of employees and also check the relationship with customer through legally process. If our product expire the date or any other default the company pays the full price of product but others company pay only 50% of its price.

Social Responsibility:
Corporate Social Responsibility is at the heart of ENGROs work. We believe in working with all the stakeholders to improve their quality of life, in a way that is both good for business and development. We also believe in earning the trust of our stakeholders by acting responsibly within the communities that we serve.

Environment Excellence Award-2009

The Companys efforts for protecting the Environment were acknowledged by the National Forum for Environment and Health (NFEH) by awarding DHCL the 6th Annual Environment Excellence Award 2009


Help for IDPs of Swat and Wana:

The military action against the militants in Swat and Wana unfortunately resulted in the biggest ever displacement of the innocent and peace loving people of Swat. These internally displaced persons (IDPs) were accommodated in make shift camps where they struggled to cope with the rigors of living refugees' life in their own country. The CSR Committee decided to send food and essential household items to bring some relief in the lives of some of these IDPs. Land for Forest Fruit Plantation Wheat Cultivation We have dedicated around 50 acres of land solely for the purpose of tree plantation. During the past four years,approximately 50,000 trees have been planted. Most of these trees have reached the self-sustaining stage. This year another 6000 trees were planted on 3 acres of land. Water Purification Plant Drinking contaminated water is one of the major health risks in the Third World countries. As a CSR initiative, DHCL has so far installed five Water Purification Plants, three in villages around our Plant and two in Hospitals of Lahore (Mayo and Children Hospital). Education Programs: Ali Institute of Education, Lahore and The Citizens Foundation are the major partners of ENGRO in educational interventions. A brief description of the educational projects led by ENGRO is as follows:

Katcha Schools:
The program started off as an informal education program in Katcha (riverine) area of Indus in Ghotki district with 2 schools in 2001.

Training and Resource Centre:


Training and Resource Centre is the only teachers training facility in Ghotki district. Since its inception in 1999, more than 2500 teachers of Ghotki district have been trained at the centre. A team of 4 full time PDTs carryout general and subject specific training sessions.

Sahara Welfare Society:

Sahara Welfare Society, a non-profit voluntary organization managed by company employees at Daharki, runs a primary school, vocational training school and a free clinic.

Health Programs
General availability of health facilities is less for growing population of Ghotki district. With this view ENGRO has developed a number of health infrastructural programs:

Dialysis Centers at Daharki and Mirpur Mathelo:

Responding to the President of Pakistan and local governments desire for enhanced corporate support for Ghotki and surrounding areas, company constructed its second dialysis centre at District Head Quarter Hospital Mirpur Mathelo in 2004, at a cost of Rs 3.5 million

Tele-Medicine Project
The Company initiated work on the first Telemedicine project in 2004 that provides delivery of health care services to selected rural areas from specialist doctors in Karachi using communication technologies for diagnosis, treatment and prevention of diseases.

1. Strategic Management concept and cases by FRED R DAVID 12th edition. 2. Marketing Management by Kotler 11th Edition. 3. 4. 5. 6. 7. 8. 9. 10. HASSAN RAZA ( Area manager) 0302 8545796