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Internship Report on Fauji Fertilizer Company

Practice makes one Perfect and Theory without practice is sterile are the commonly Known
proverbs. If Education is meat for Knowledge, Training is there to make one Perfect. Taste is
checked not told. Training always helps people to prove what the real Essence of education is.
That is why, internship in our BBA program is set as an Integral part and must for all the students
so that they can check the difference between what is taught and what is actually practiced in the
market. Different students are given assignments of internship at different industries in different
cities. I have been given the assignment of doing internship in Fauji Fertilizer Company Ltd. I
started Internship out there On June 16, 2015 and at the end of Expiry of six (06) weeks, I left it
on July 27, 2015 with attaining almost all of my goals and objective.
I have tried my level best to gain whatever was possible in this short span of internship Period.
This report is having all the information about the Company.
Purpose of the study:
The main purpose of the study in hand is to gather relevant information to compile internship
report on Fauji Fertilizer Company Limited.

To observe, analyze and interpret the relevant data competently and in a useful manner.
To know how to practically work in an organization.
To develop interpersonal communication

Methodology of Study:
The report is based on my six week internship program in FFC. The methodology reported for
collection of data is primary as well as secondary data. The primary source of information is my
personal observation while working with staff and having discussion with them.
Primary Data:

Personal observation
Discussion with staff
Practical work

Secondary Data:

Government College University Faisalabad Layyah Campus

Page 1

Internship Report on Fauji Fertilizer Company

Policy manuals
www.ffc.com.pk
www.faujifertilizer.com

Vision
To be a leading national enterprise with global aspirations, effectively pursuing multiple growth
opportunities, maximizing returns to the stakeholders, remaining socially and ethically
responsible.

Mission
To provide our customers with premium quality products in a safe, reliable, efficient and
environmentally sound manner, deliver exceptional services and customer support, maximizing
returns to the shareholders through core business and diversification, providing a dynamic and
challenging environment for our employees.

Corporate Strategy
Maintaining our competitive position in the core business, we employ our brand name, unique
organizational culture, professional excellence and financial strength diversifying in local and
multinational environments through acquisitions and new projects thus achieving synergy
towards value creation for our stakeholders.

Government College University Faisalabad Layyah Campus

Page 2

Internship Report on Fauji Fertilizer Company

Board of Directors
Lt Gen Khalid Nawaz Khan,

Maj. Gen Ghulam Haider,

HI (M), Sitara-i-Esar (Retired)

HI (M) (Retired)

Chairman

Non-Executive Director

Lt Gen Naeem Khalid Lodhi,

Mr. Khizar Hayat Khan

HI (M) (Retired)

Non-Executive Director

Chief Executive and Managing Director

Maj. Gen Muhammad Farooq Iqbal,

Mr. Qaiser Javed

HI (M) (Retired)

Non-Executive Director

Non-Executive Director

Dr. Nadeem Inayat

Brig Dr. Gulfam Alam,

Non-Executive Director

SI (M) (Retired)

Mr. Jorgen Madsen

Non-Executive Director

Non-Executive Director

Mr. Shahid Ghaffar

Engr. Rukhsana Zuberi

Independent Director

Independent Director

Ms. Nargis Ghaloo

Mr. Farhad Shaikh Mohammad

Independent Director

Independent Director

Government College University Faisalabad Layyah Campus

Page 3

Chief Financial Officer


Syed Shahid Hussain

Company Secretary
Brig Sher Shah, SI (M) (Retd)

Brief History of the Company


With a vision to acquire self - sufficiency in fertilizer production in the country, FFC was
incorporated in 1978 as a private limited company. This was a joint venture between Fauji
Foundation (a leading charitable trust in Pakistan) and Haldor Topsoe A/S of Denmark.
The initial share capital of the company was 813.9 Million Rupees. The present share capital of
the company stands above Rs. 8.48 Billion. Additionally, FFC has more than Rs. 8.3 Billion as
long term investments which include stakes in the subsidiaries FFBL, FFCEL and associate
FCCL.
FFC commenced commercial production of urea in 1982 with annual capacity of 570,000 metric
tons.

Through De-Bottle Necking (DBN) program, the production capacity of the existing
plant increased to 695,000 metric tons per year.

Production capacity was enhanced by establishing a second plant in 1993 with annual
capacity of 635,000 metric tons of urea.

FFC participated as major shareholders in a new DAP/Urea manufacturing complex with


participation of major international/national institutions. The new company Fauji
Fertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited)
commenced commercial production with effect from January 01, 2000. The facility is
designed with an annual capacity of 551,000 metric tons of urea and 445,500 metric tons
of DAP, revamped to 670,000 metric tons of DAP.

In the year 2002, FFC acquired ex Pak Saudi Fertilizers Limited (PSFL) Urea Plant
situated at Mirpur Mathelo, District Ghotki from National Fertilizer Corporation (NFC)
through privatization process of the Government of Pakistan. It has annual production

capacity of 574,000 metric tons urea which has been revamped to 718,000 metric tons
urea in 2009.

This acquisition at Rs. 8,151 million represented the largest industrial sector transactions
in Pakistan at that time.

NATURE OF THE BUSINES


The company is a public company incorporated in Pakistan under the Companies Act, 1913,
(now

the

Companies

Ordinance,

1984

and

its

shares

are

quoted

on

the

stock exchanges in Pakistan. The principal activity of the company is manufacturing, purchasing
and marketing of fertilizer, including investment in other fertilizer manufacturing operations.

Core Values
At FFC we seek uncompromising integrity through each Individuals effort towards quality
product for our customers, maximizing returns to the shareholders and sizable contribution to the
national exchequer. Our business success is dependent on trusting relationships. Our reputation is
founded on the integrity of the Companys personnel and our commitment to the principles of:
Honesty in communicating within the Company and with our business partners, suppliers and
customers, while at the same time protecting the Companys confidential information and trade
secrets.
Excellence in high-quality products and services to our customers.
Consistency in our word and deed.
Compassion in our relationships with our employees and the communities affected by our
business.
Fairness to our fellow employees, stakeholders, business partners, customers and suppliers
through adherence to all applicable laws, regulations and policies and a high standard of moral
behavior.

POLICY FORMULATION
QUALITY POLICY:

Fauji Fertilizer Company Limited is committed to attaining excellence in all areas of its
operations. They continue to strive for improvement through coordinated efforts, feedback, and
training and employee motivation. They are determined to ensure customer satisfaction,
Companys productivity &profitability, occupational health, safety and care for
their environment and continue playing their role in the industrial and agricultural development
of Pakistan.

SAFETY AND HEALTH POLICY:


FFC is committed to maintain a safe and healthy environment having the same significance as
productivity. It inculcates safety culture by specific training, incentives, and effective control, to
ensure a safe and healthy working environment. It resolves to attain the highest standards
of safety and health through consistent improvements in on-the-job and off-the-job safety and in
the working conditions.
ENVIRONMENTAL POLICY:
Fauji Fertilizer Company Limited is committed to achieve environmental protection through
compliance with all the applicable laws and regulations. An active pollution prevention program
is followed with efforts for continual improvement in the environmental aspects related to plant
operations.

Management Objectives

Enhance agricultural productivity through balanced fertilizer application


Maintain industry leadership
Expand sales
Create / enter new lines of business to augment profitability and achieve sustained
economic growth

Maintain operational efficiency to achieve synergies


Economize on costs by eliminating redundancies

ISO-9002 certification
Another major landmark for Fauji Fertilizer Company is ISO-9002 certification for its manufacturing
division 1st Goth Machhi. Quality in all areas has been a hallmark of the Company right from the
beginning and our product SONA UREA has already established its rightful place in the market.
Therefore to bring their system in line with internationally recognized quality standards, they decided to
go for ISO-9002 certification. To achieve a total quality management system, FFC surpassed the
requirement of ISO-9002 standards by including all support services like Admission, personnel, Finance
Hospital, Schools and Management Club etc. also in the certification scope. They selected Bureau of

VERITAS quality international (BVQI), England, a leading certification agency as our registrar. BVQI is
honored by various accreditation authorities of the world. Quality management system of FFC got ISO
certified in its first attempt during November 1997 with the honor of being the 1St Fertilizer plant in
Pakistan. Since then they have not looked back. They have passed all surveillance audits with
commendable remarks from their registrar. Since 21 February, 2001 Quality Management system of FFC
now stands recertified (ISO 9002) by BVQI after successful completion of initial certification period of
3years.

Product Portfolio
Urea Fertilizer FFC & FFBL

Used in grain and cotton crops, at the time of last cultivation before planting. In irrigated crops,
urea can be applied dry to the soil. During summer, it is often spread just before rain to minimize
losses from vitalization process. Urea produced by FFBL is in Granular form, being the only of
its kind in Pakistan.

Industrial Use
Raw material is used in manufacturing plastics, adhesives and industrial feedstock.
DAP Fertilizer FFC & FFBL
Sona DAP is the most concentrated phosphatic fertilizer containing 46% P2O5 and 18%
Nitrogen. The solubility of DAP is more than 95%, which is highest among the phosphatic
fertilizers available in the country. Further, on account of its nitrogen content, it temporarily
increases the soil pH.
Industrial Use
Fire retardant used in commercial firefighting products. Other uses are as metal finisher, yeast
nutrient, nicotine enhancer in cigarettes and sugar purifier.
SOP Fertilizer FFC
SOP is an important source of Potash, a quality nutrient for production of crops especially fruits
and vegetables. FFC SOP contains 50% K2O in addition tom 18% sulphur, which is an important
nutrient especially for oil seed crops with an ameliorating effect on salt-affected soils. Potash is
an important nutrient for activation of enzymes in the plant body and helps increase sugar and
starch contents in cultivation. Potash improves the resistance of plants against pests, diseases and
stresses like water / frost injury etc.
Renewable Energy FFCEL
The company has been incorporated to operate a 49.5 MW wind power generation facility and its
onward supply to Pakistans National Grid (NTDC).
Financial Services AKBL
Operating through a network of 321 full service / sub branches with a Wholesale Bank Branch in
the Kingdom of Bahrain, AKBL offers a wide range of banking activities including commercial
& corporate lending, trade businesses, Islamic, consumer, agriculture & investment banking,
equity trading and treasury operations. The Bank is also engaged in the business of mutual funds
and share brokerage, investment advisory and related services through its subsidiary companies,

Askari Investment Management Limited and Askari Securities Limited. The Bank also offers
branchless banking service under the brand name Timepey. A wide network of Timepey shops
across Pakistan is fully equipped to handle day to day needs of the customers including; money
transfer, bill payment and mobile top-up etc.

Frozen Fruits & Vegetables FFF (formerly Al-Hamd Foods Limited)


Construction work on the Individually Quick Freeze (IQF) Plant of Fauji Fresh n Freeze is
progressing as per plan with scheduled inauguration during 2015.
Top 25 Companies KSE Awards
In 1991, the company was listed on Karachi and Lahore Stock Exchanges and in 1992 on
Islamabad Stock Exchange when it was formed. Shares were offered to the public and company
employees. In 1993/94 FFC achieved the distinction of paying the highest income tax in the
country.
Based on the exemplary dividends to the shareholders and other criteria of Karachi Stock
Exchange, FFC has consistently remained in the list of top 25 best performing companies of
Pakistan consecutively for 20 years since 1994. As a result of excellent performance over the
years, the company's ranking in the Karachi Stock Exchange list of 25 companies improved from
fifth position in 1995 to second in 1996, it was awarded the first position in 1997 and again
second prize in 1998.
In addition to the above, FFC has been once again declared first amongst the Top 25 Listed
Companies for the Year 2013 by Karachi Stock Exchange. It speaks of highest standards of
professionalism and dedication making a unique blend of competence, experience and
leadership.
Scope of Study
As an internee in FFC the main focus of my internship was on Marketing Department. I
included all the concerned sections in which learned how to make different types of reports and I
was given different responsibilities for certain durations. The area where I done my internship is
marketing which consist of

Planning
Distribution
Warehousing
Agri. Services ( Farm Advisory Services)
Finance

Administration
Human Resources
Information System
Sales Promotion
Procurement
Regional Office Lahore
North Zone

MARKETING OPERATIONS
Every company needs to manage its marketing activities effectively. Especially the company
needs to know how to analyze the market opportunities, select appropriate target markets,
segmenting the market in proper segments, establishing the effective marketing mix and manage
the marketing efforts effectively. To fulfill these requirements, marketing department is
established in almost all well-known organizations.

FFC Marketing Group


Marketing Group, established in July 1978, is responsible for the marketing operations of the
Company including planning, sales, distribution, agri. services, field warehousing, finance and
administration. With the commencement of commercial production in June 1982, the Company
started marketing its urea under the brand name of "Sona". Gradually, besides Sona urea, the
company commenced marketing of various imported nitrogenous, phosphatic and potassic
fertilizers. The Marketing Group is undertaking its numerous marketing activities through
country wide setup of three zones, fourteen sales regions, sixty six sales districts, a strong
dealership network and extensive warehousing setup.
The Company is also marketing around 550kt of Sona urea granular and 670kt of Sona DAP
manufactured by Fauji Fertilizer Bin Qasim. When FFC started its marketing operations, the
other urea manufacturers namely Engro, Dawood Hercules and National Fertilizer Corporation
were already well established in the market. Engro and Babber Sher urea were considered
premium brands in Sindh and northern Punjab respectively. The brand competition coupled with
a huge surplus of urea in the domestic market posed a great challenge to the Company from the
very beginning of its operations. FFC endeavored and turned the challenge into an opportunity
by capturing a distinctive market share of its product. The Company has since long successfully
managed to make Sona the number one fertilizer brand of Pakistan.
During the period 1983 to 1986 when a large urea surplus existed in the country, FFC had the
honor of being pioneer in the export of surplus urea which not only helped in stabilizing
domestic urea market but also earned valuable foreign exchange for the country.

The Government of Pakistan deregulated the trade and prices of phosphatic fertilizers on 21
August 1993. Subsequently, FFC started import of various phosphatic fertilizers bringing about a
very positive and qualitative change in the phosphatic fertilizer business of the country. This was
also very significant for promoting the balanced use of fertilizer. Farmers were thus provided
with the quality product in standardized bags along with the guarantee of correct weight.
Marketing Group now has the best expertise to handle the import and export of fertilizers.
FFC believes in selling a programmed rather than just a product. For this, the Company has
adopted a customer oriented strategy, marketing its products backed by efficient and effective
support services along with special emphasis on developing the market through practical and
innovative farmer education. Thus, FFC is untiringly playing a very vital role in the agricultural
development of Pakistan through provision of premium quality fertilizers besides, improving the
livelihood of farming community.
FFC is providing premium quality fertilizer to the farming community in an environmentally
sound manner. With an ever evolving network, the Group is currently spread over three zones,
fourteen regions, and sixty six sales districts and over 3,700 dealers spread across Pakistan.
Sona Urea sales by the Company were recorded at 2,371 thousand tons during the 2013,
marginally down by 2% compared to last year, capturing combined FFC/FFBL urea market share
of 46% as opposed to 45% last year. Marketing of imported DAP by FFC stood at 123 thousand
tons which combined with sales of 709 thousand tons of Sona DAP on behalf of FFBL, resulted
in aggregate FFC/FFBL DAP market share of 49% (Source: NFDC)

Marketing Network

Marketing Network

Meeting of Marketing Division


All heads of departments meet every Tuesday to

Present weekly reports to GMM


Discuss sale situation
Look competitors activities
Monitor performance against monthly and annual plans
Monitor fertilizers supply and demand situation
Tries to devise strategies to overcome problems if any.

In every month a monthly meeting is held in which reports for a month of all departments are presented to
GMM. In monthly meeting the targets and plans for next month are set. In these meeting monthly sales of
FFC against the same period of last year and monthly sales of competitors are also analyzed. Sales of all
regions are reviewed.
Sales performance of all sales officers are compared with targets. Best sales officer of the month is
selected and rewarded. Expenses for the month are approved.
These meetings are presided over by GMM in Lahore Marketing Office. Annual meeting of all division is
also held.

Introduction to all departments


Sales promotion and Advertisements
Number of Executives

Head of Department

Mrs. Nabila

Senior SPO
SPO

Mr. Imran Salamat


Mr. Imran Shakeel

Number of staff

Total employees

Objectives

To create, augment and maintain demand of FFBL and FFC products


To enhance and sustain brand image and corporate image
Improve company visibility in mind of customers
To safe guard company logo
To strengthen brand loyalty

Sales (North Zone)


General Marketing Manager

Mr. M Munir Malik

Senior Sales Manager

Zia Mehmood Minhas

Total number of Management Employees (Lhr. Office)


Regional officers

4
5

Number of staff employees

Total regions
Lahore
Faisalabad
Sahiwal
Peshawar
D.I Khan
Functions

Conduction of sales forecast of regions included in NZ


Monitoring sales allocation as per decided ratios
Monitoring daily sales
Studying competitor price structure
coordinating regions included in NZ
Managing sales force of NZ
Checking and inventory
Coordinating with top management
Ensuring availability and control of warehouses
Monitoring of product
Monitoring and keeping record of turnover of productivity

Regional Office (Lahore)


General Marketing Manager
Senior sales manager

Mr. M Munir Malik


Zia Mehmood Minhas

Regional Manager

Mr. Arshad Mehmood

Sales Manager

Mr. Hasnain Ali

Technical sales officer

Mr. Imran Ali

Number of staff employees

The Regional Office Lahore Is front line Dept. it is actually involved with direct sales of fertilizer and
interacting with dealers. The regional manager, Technical sales officer, sales officer lhr are working with
assistance of stock members for three days Tuesday-Thursday the officers are in field visit and for rest of
days they perform their office work. The districts in Lahore region include
Gujranwala
Sheikhupura
Mandi baha-ud-din
Rawalpindi
Sialkot
Hafizabad
Activities

Monitoring product wise/district wise achievements with respect to targets


Monitoring current market situation with respect to fertilizer industry
Monitoring competitors activities in detail
Managing warehouse, their sales and closing stock
Appointing and terminating dealers as regard to their performance, literate goals is to have a
strong dealer network

Distribution department
General Manager Marketing
Senior Distribution and warehousing Manager

Mr. M Munir Malik


Mr. Shakeel Ahmad

Senior Executive distribution

Mr. Riaz Ahmad

Executive Distribution

Mr. Afzal mugal

Distribution Officer

Mr. Salman Ali

No. of Staff Employees

Distribution Department is major department helping the sales force. Primary function of Distribution
dept. is to ensure effective and efficient distribution of product from plants to final customer.
Objectives of Distribution Department
Ship out entire production of FFC and FFBL plants and imported fertilizer in accost effective
manner.
Satisfying 3800 dealers and 184 warehouses

Plan and undertake self-exports/imports and ensure prompt handling, quality packing, correct
weight, timely delivery and arrange safe storage of surplus product during lean months.
Follow up of product quality complaints
Co-ordinate with plant management to ensure smooth operations
Maintain liaison with Pak Railways, NLC, Port authorities and suppliers
Transportation arrangements
Private trucking contractions
NLC
Pakistan Railways

Warehousing
General Manager Marketing
Senior Distribution and warehousing Manager

Mr. M Munir Malik


Mr. Shakeel Ahmad

Warehousing manager

Brig. Retd. Gulam Rasool Sahi

Senior executive warehousing

Mr. Riaz Ahmad

Warehousing manager

Mr. Ahsan khan

No. of staff employees

The warehousing department is involved in completing formality of hiring and dehiring warehouses (on
need basis), appointment of handling contractors, watch and ward contractors. The record of inventories
is mentioned and physical inspection of warehouse and product are carried out to ensure safety and
security. This department works in collaboration with Distribution Department.
Functions of warehousing department
Coordinating of warehousing dept. with the regions regarding warehouse selection, training of
supervisors, planning capacity of warehouse
Conduction of inspection of warehouses on planned and surprised bases
Each warehouse is inspected around 17 times a year
Warehousing department is considered with processing of

Lease agreements
Watch and ward agreements
Handling agreement
Watch and ward bills
Conduct the training of warehouse supervisors
Preparing the operational, capital and revenue budgets on yearly basis

Formulating warehouse plans


Preparing weekly capacity reports

Types of warehouses

Strategic warehouses
Temporary warehouses
Permanent warehouses
Purely temporary warehouses

Administration Department
General Manager Marketing

Mr. M Munir Malik

Administration manager

Col Retd. Muhhammad Khalid

Administration executive

Maj. Retd Khaani

No. of staff employees

Administration department is involved in conducting the administration function of fauji fertilizer


company marketing division
Functions
Provision and maintenance of transport i.e. cars, jeeps and poor vehicles
Ensure availability of utilities like gas, electricity, telephone, E-mail, and photocopy facility
Undertake protocol duties like reception, transport and ticketing etc. for company officers and
guests
Ensure the implementation of company policy and rules
Provision of uniform to entitled staff (Qasids, chowkidars, electricians and drivers)
Ensure proper maintenance of the office premises and guesthouses
Take disciplinary actions under the rules where necessary
Disposal of unusable assets of the company
Managing three major types of transport system related to the marketing division;

Company maintained
Company assisted cars/jeeps
Pool transport

Human resource department


General Manager Marketing

Mr. M Munir Malik

Administration manager

Col Retd. Muhhammad Khalid

Senior executive HR

Col Retd. Asad Sukhaira

HR Officer-I

Mr. Qamar

No. of staff employees

The FFC Management, acknowledging the importance of human resources has always placed personnel
management at the top of its priority list. The Human Resources Department, therefore, right from the
inception of the Company has played a vital role in steering the Company through all its phases,
operations and progress.
Functions
Work out with supervisors consultation with regional manager and arrange recruitment and transfer
activities according to the head office instructions.
1. Maintain up to date personal records, statistics including leave records, relating to management
and non-management employees.
2. Interpret company policy and provision of necessary ruling where required.
Handling cases relating to following subject
Appointment of non-management employees. Temporary/contract based/daily wages
according to authorization.
Promotion of non-management employees
Pay and allowances of non-management employees
Leaves (annual, casual, special, sick) are managed for all employees
Transfer claims of all employees
House/rent allowances advances
Also the house building loans

Procurement department
General Manager Marketing

Mr. M Munir Malik

Administration Manager

Col. Retd. Muhhammad Khalid

Senior executive procurement

Col. Retd Ghyoor

No. of staff employees

Procurement department at marketing is responsible for purchases. Purchases for the following offices are
made by the Lahore marketing division, 3 zonal offices, 14 regional offices, 5 farm advisory centers,
finance and distribution offices at Goth Machi and MirPur Mathelo, distribution office at FFBL port and
head office requirements.
Functions

Quality, economical and timely procurement of items/spares for marketing division and plants
ensuring complete backup support/after sales services.

Price enquiry of different items to estimate the price so that the budgeted amount may be
endorsed on the PR before initiation.
Disposal of obsolete/surplus/scrap material
Continuous updating of reliable vendor list for both plants and marketing division.

Procedure involved in procurement steps

Raising of purchase request


Approval of PR
Request for quotation
Bid opening
Comparative statement
Placement of order
Delivery receipt of goods
Verification of bills against orders
Final payment

IT Department
General Manager Marketing
Administration manager
Senior executive IT

Mr. M Munir Malik


Col Retd. Muhammad Khalid
Mr. Shiraz

Information technology unit was properly setup in FFC Marketing division Lahore. IT unit is one of the
most important departments working in marketing division Lahore. The unit has to play a leading role in
order to all the departments to perform all their functions effectively and efficiently. It enables
management to make timely decisions.
Objectives of IT unit

To meet the computing needs of all the departments of marketing division.


To design and develop efficient, effective and user friendly information system.
To provide the maintenance services and proper updating of all these systems.
To properly cope with the security and ethical challenges related to information technology and
information systems
To design proper feedback and control procedures towards achievements of its goals.

Systems developed by I.T unit

Sales accounting system


General accounting system
Order processing system
Regional information system
Sales promotion system
Distribution management system

Procurement system
Human resource system

Finance department
The finance department working at marketing division Lahore is responsible for all the sales collection
either sale is made directly through plants or through warehouses. The finance department is divided into
two sections
1. Sales accounting
2. General accounting
Specific responsibilities of sales accounting

Maintenance of dealership records


Processing and banking of sales and proceeds received from sales force for the sales of fertilizers
Transfer of data to plants for shipment
Transfer of funds to head office recording of invoice for sales ex-warehouse
Receiving data from plants for direct sales
Processing of bank guarantees for secured credit sales
Monitoring of unsecured credit sales of Fauji sugar mills/forms
Preparation of pricing and discount structure for fertilizer
Receiving data from plants for warehouse shipment
Recording of stock movement reports
Overall reconciliation of stock movement with intimation of head office
Follow up of receivables for sale through rail
Recording of stocks received from FFBL for sale on their behalf
Sending the information regarding dealers balance to field force for recovery of receivables on
various accounts

Specific responsibilities regarding general accounting

Payroll of permanent and temporary staff employees.


Deduction of income tax from payroll and deposition in govt. treasury.
Forwarding details of provident fund contribution of permanent employees to head office.
Forwarding of L/C opening request to head office for import of fertilizer.
Processing of export related documents.
Deduction of income tax from various supplies and deposits into govt. treasury.
Maintenance of books of accounts including fixed assets, supplies, employees etc.
Payment of telephone, electricity and medical bills.
Payment in respect of bags and line of imported fertilizer.
Clearing and forwarding charges in respect of import of fertilizer.

Planning department

The planning department is integral part of Fauji Fertilizer Company. Senior executive planning who is
responsible to SMSM heads it. The department coordinates the activities of all other departments in the
marketing division. Major responsibility of the department is collection of information about competitors
and analyzing their strategies.
Function
Coordination and development of annual business plan.
Provision of historical information to regions and senior sales managers for developing sales
forecast.
Finalizing sales forecast with coordination related sales force.
Preparation of fertilizer data book.
Monitoring international fertilizer price trend.
Preparing Pakistan industry urea market participation reports.
Chairmans report for BODs meetings containing analysis FFCs performance.
Preparation of fertilizer industry report.
Reviewing FFCs sales performance on quarterly basis.
Develop plans for training of officers.
Monthly analysis of FFCs ex-plant road and rail freight analysis.

Farm Advisory Services


Fauji Fertilizer Company Limited has been providing Agricultural Advisory Services to the farming
community throughout Pakistan since 1981, for increasing the agriculture production in general and the
farmers economic returns in particular. Our organization in pursuit of its national commitment and moral
obligation maintains regular contact with farmers and Agricultural Institutions to ensure constant and
efficient transfer of latest technology.
The company is providing quality farm advisory services all over the country through its 5 Farm Advisory
Centers and 18 Regional Agri Services Officers. Farm Advisory Centers are located at Shahkot, Sahiwal,
Bahawalpur, Multan and Sukkur. Each center has a team of four Agricultural Experts, providing
multifarious advisory services through crop demonstrations, field days, farmer meetings, crop seminars
and farm visits. All the centers are fully equipped with modern sophisticated computerized Soil & Water
Testing Laboratories and high-tech extension equipment. Moreover, FFC has also established a
micronutrient and plant tissue analysis laboratory at Farm Advisory Centre, Shahkot having Atomic
Absorption Spectrophotometer and other analytical instruments. Soil Testing is a valuable tool to
propagate appropriate and balanced use of chemical fertilizers and to identify soil problems. Soil/water
samples are collected from farmers fields and analyzed in the laboratories. Fertilizer recommendations
are developed on the basis of soil analysis and recommendation reports are delivered to the growers for
proper and balanced fertilizer use. The soil/water testing and micronutrient analysis facility is offered free
of cost. Besides these five farm advisory centers, we have 18 Agri Services Officers, spread all over the
country and extending these services in their respective areas.
To further strengthen our advisory services and facilitate our farmers, we also publish crop, vegetable,
orchard brochures, agro-grams, posters and pamphlets containing latest information regarding production
technologies of crops, and orchards grown in Pakistan. For a stronger direct link and timely guidance of

farmers, we publish a quarterly Urdu and Sindhi Newsletter Zari Report containing season specific
information regarding crops, fruits, vegetables, improved agronomic practices and articles on agricultural
issues. Following is the list of crop brochures available with us:

Wheat Brochure

Cotton Brochure

Sugarcane Brochure

Rice Brochure

Maize Brochure

Oil Seed Brochure

Potato Brochure

Vegetable Brochure

Mango Brochure

Citrus Brochure

Banana Brochure

Apple Brochure

Guava Brochure

Orchard Cultivation Brochure

Boron Brochure

Salt-affected Soils Brochure

To improve the fertilizer use efficiency and to obtain optimum crop yields, a Fertilizer Guide Book and
Fertilizer Recommendation Book has also been published containing comprehensive information on
various fertilizers available in Pakistan, their application methods and their economic use.
FFC has also adopted the pragmatic approach of telecasting crop documentaries on PTV before the onset
of sowing season of major crops. In these documentaries all the components of crop production are
covered with sufficient elaboration. Cotton, wheat, sugarcane and rice documentaries can be viewed in
the Kashtkar Desk of FFC website www.ffc.com.pk
FFC encourages farmers to get registered on mailing list by sending a request in writing or through e-mail
at the following addresses to receive copies of published material free of cost. SMS on current agriculture
issues are also sent to farmers on the mailing list.

Agri Services Department

(Marketing Group)
Fauji
Fertilizer
Lahore
11-Shahrah-e-Aiwan-e-Tijarat,
Phones: 042
36369137-40/ext
Email: ts_lhr@ffc.com.pk

Company
Trade

406,

407,

Farm Advisory Centre

Farm Advisory Centre

Sahiwal

Hassan Abdal

3 km from Bypass, Arifwala Road7 KM, Hassan Abdal


Sahiwal
Opposite
AWC,
Phone: 040 5007015
Phone: 051-4590055

Farm Advisory Centre

Farm Advisory Centre

Multan

Bahawalpur

Near
Ibn-e-Sena
Southern Bypass, Multan

Limited
Centre,
Lahore
36365119
408

Abbott
Hassan

bad

Road,
Abdal

Hospital,Near

Al-Rehman Oil Mills, Opposite Gulistan


Textile
Mills,
KLP
Road,
Bahawalpur
Phone: 062-2870049

Phone: 061 6353003

Farm Advisory Centre


Sukkur
Opposite
Motorway
National
Highway,
Phones: 0243 771411

Karam

Police
Abad,

Company Analysis in Terms Of

Vertical Analysis (Common size statements)

Station,
Ditt.

Khairpur.

Horizontal Analysis (indexed analysis)

Ratio Analysis
Liquid ratios
Coverage ratios
Activity ratios
Profitability ratios
Market ratios

Du Pont analysis

Balance
Sheet
EQUITY AND LIABILITIES

2014

2013

12722

12722

160

160

12788

12269

EQUITY
Share Capital
Capital Reserve
Revenue Reserve

25670

25151

Long term borrowings

2500

4280

Deferred Taxation

4574

4078

7074

8358

37904

21854

30

22

NON - CURRENT LIABILITIES

CURRENT LIABILITIES
Trade and other payables
Interest and mark - up accrued
Short term borrowings

11603

7000

Current portion of long term borrowings

1780

1460

Taxation

2501

3984

53818

34320

86562

67829

20094

18444

1611

1652

28135

20662

823

740

16

50679

41501

3315

3245

Stock in trade

928

302

Trade debts

822

701

1059

921

26

47

1072

790

27433

18960

TOTAL EQUITY AND LIABILITIES


ASSETS
NON - CURRENT ASSETS
Property, plant & equipment
Intangible assets
Long term investments
Long term Loans & advances
Long term deposits & prepayments
CURRENT ASSETS
Stores, spares and loose tools

Loans and advances


Deposits and prepayments
Other receivables
Short term investments
Cash and bank balances
Total assets

1174

1362

35829

26328

86562

67829

Horizontal Analysis

EQUITY AND LIABILITIES

2014

Balance
Sheet
2014vs2013
%

2013

EQUITY
Share Capital

12722

12722

Capital Reserve
Revenue Reserve

160

160

12788

4.23

12269

25670

2.06

25151

Long term borrowings

2500

-41.59

4280

Deferred Taxation

4574

12.16

4078

7074

-15.36

8358

37904

73.44

21854

30

36.36

22

11603

65.76

7000

1780

21.92

1460

NON - CURRENT LIABILITIES

CURRENT LIABILITIES
Trade and other payables
Interest and mark - up accrued
Short term borrowings
Current portion of long term borrowings
Taxation
TOTAL EQUITY AND LIABILITIES

2501

-37.22

3984

53818

56.81

34320

86562

27.62

67829

20094

8.95

18444

1611

-2.48

1652

28135

36.17

20662

823

11.22

740

16

433.33

50679

22.12

41501

ASSETS
NON - CURRENT ASSETS
Property, plant & equipment
Intangible assets
Long term investments
Long term Loans & advances
Long term deposits & prepayments
CURRENT ASSETS
Stores, spares and loose tools

3315

2.16

3245

Stock in trade

928

225.17

302

Trade debts

822

17.26

701

1059

14.98

921

Loans and advances


Deposits and prepayments

26

-44.68

47

1072

35.77

790

Short term investments

27433

44.69

18960

Cash and bank balances

1174

-13.8

1362

35829

36.29

26328

86562

27.62

67829

Other receivables

Total assets

Horizontal Analysis of Balance Sheet


There is an increase in cash and bank balance during 2013-2014, which is of 36.29% there is overall
increase in Total assets. Total liabilities have increased by 27.62%which is due to increase in
stockholders equity increased by 46.3%.company is attracting more capital from investors in order to
expand its operations.

VERTICAL ANALYSIS
Balance Sheet
2014
EQUITY AND LIABILITIES
EQUITY

Rs.

2013
%

Rs.

12722

14.7

160

0.18

160

0.24

12788

14.77

12269

18.09

25670

29.66

25151

37.08

Long term borrowings

2500

2.89

4280

6.31

Deferred Taxation

4574

5.28

4078

6.01

7074

8.17

8358

12.32

37904

43.79

21854

32.22

30

0.03

22

0.02

11603

13.4

7000

10.32

1780

2.06

1460

2.15

Share Capital
Capital Reserve
Revenue Reserve

12722

18.76

NON - CURRENT LIABILITIES

CURRENT LIABILITIES
Trade and other payables
Interest and mark - up accrued
Short term borrowings
Current portion of long term
borrowings
Taxation
TOTAL EQUITY AND LIABILITIES

2501

2.89

3984

5.87

53818

62.17

34320

50.6

86562

100

67829

100

20094

23.21

18444

27.19

1611

1.86

1652

2.44

28135

32.5

20662

30.46

823

0.95

740

1.09

16

0.02

50679

58.55

41501

61.19

ASSETS
NON - CURRENT ASSETS
Property, plant & equipment
Intangible assets
Long term investments
Long term Loans & advances
Long term deposits & prepayments
CURRENT ASSETS
3315

3.83

3245

4.78

Stock in trade

928

1.13

302

0.45

Trade debts

822

0.95

701

1.03

1059

1.22

921

1.36

Stores, spares and loose tools

Loans and advances

26

0.03

47

0.07

1072

1.24

790

1.16

Short term investments

27433

31.69

18960

27.95

Cash and bank balances

1174

1.96

1362

2.01

35829

41.45

26328

38.82

86562

100

67829

100

Deposits and prepayments


Other receivables

Total assets

Vertical analysis of balance sheet


Vertical analysis shows that there is a decrease in the capital from year 2013 to 2014 which is 18.76 to
14.70; this significant increase shows that people are willing to invest in the business of the company.

There is also decrease in the reserves of the company due to which the worth of the company has been
decreased.
Some of the current liabilities of the company are increasing with the minor fractions but some of the
current liabilities (trade payables, short term borrowings ) showing a little bit higher increase ,which
means these liabilities are increasing, but are backing up the short term investments and some of the other
current assets.
There is an overall decrease in the assets of the company in 2014 as compared to2013, including fixed
and current assets, but some of the current & fixed assets are also increasing at the same time. But the
company is using its assets productively in its operations
Profit
&

Sales
Cost of Sales
Gross Profit
Distribution Cost

Finance cost
Other expenses

Other Incomes
Net Profit before
Taxation
Provision for taxation
Net Profit after
taxation

Loss Account
201 14 vs.
4
13
Rs.
%
8124
0
9.07
5013
7
25.5
3110
3
-9.93
6431
4.28
2467
2
-13.02
849
12.3
2303
-9.97
2152
0
-14.1
4721
8.08
2624
1
-10.8
8070
-13.08
1817
1
-9.75

Rs. In million
2013
Rs.
74481
39949
34532
6167
28365
756
2558
25051
4368
29419
9284
20135

Horizontal analysis of Income Statement:


During 2013-2014 there is a significant increase in cost of goods sold by
25.50%.Financial charges have been increased by 12% which is bad sign for the company and it is due to
decrease in the equity financing. Net profit decreased by9.75

Profit & Loss


Account

Sales
Cost of Sales
Gross Profit
Distribution Cost
Finance cost
Other expenses
Other Incomes
Net Profit before
Taxation
Provision for taxation
Net Profit after
taxation

Rs.
81240
50137
31103
6431
24672
849
2303
21520
4721

2014
%
100
61.71
38.29
7.29
30.37
1.5
2.83
26.49
5.81

Rs.
74481
39949
34532
6167
28365
756
2558
25051
4368

Rs. In
million
2013
%
100
53.64
46.36
8.28
38.08
1.02
3.43
33.63
5.86

26241
8070

32.3
9.93

29419
9284

39.5
12.46

18171

22.37

20135

27.03

Vertical analysis of income statement:


There is a very slight increase in the sales but as compared to that increase there is a huge increase in the
cost of goods sold, due to which decrease in the gross profit, at the same time increase in the
other incomes and increase in the operating & financial costs leading to a huge decrease in the profits of
the company.

Ratio analysis
Profitability Ratios
Rise in cost of sales owing to increased raw material cost and GIDC resulted in a reduction in gross and
net profit margins for 2014, depicting a decrease of 8% and 5% respectively from last year. Consequently,
return on equity (post tax) and capital employed were also lower by 9% and 4% respectively in
comparison with 2013. Excluding exceptional performances in 2011 and 2012, profitability ratios of the
Company were in concurrence with overall performance during the 6 years.

Operating performance / Liquidity


Current ratio for 2014 depicted a minimal decrease of 0.10 times as compared with 2013 due to increase
in trade creditors, while cash to current liabilities and cash flow from operations / sales witnessed an
increase of 0.04 times and 0.06 times respectively (excluding 2011 & 2012) over the historic average of 6
years.
Activity / Turnover ratios
Inventory turnover days were in line with past trends at 2 days, while debtor turnover days improved in
comparison with last year and were consistent with the historic average of 3 days over the past 6 years
(excluding 2011 & 2012). Number of days in payables stood at 124 days due to non-payment of GIDC
under various Court decisions, however, number of days without considering GIDC payable remained at
3 days against average of 6 days over last six years. Total asset turnover ratio recorded at 0.94 times was
in line with the historical 6 year average of the Company but recorded a decrease of 0.16 times as
compared with 2013.
Investment / Market ratios
As a result of decline in profits, the Companys earnings per share were recorded at Rs. 14.28 per share.
Price to earnings ratio however improved by 1.13 times as compared to 2013 as the market price of
Companys share rose from Rs. 111.96 at the close of 2013 to Rs. 117.11 for the year ended December 31,
2014. Dividend payout ratio for 2014 was recorded at 95.57% against an average of 97% for the 6 years,
to maintain a steady stream of income for the shareholders. Consequently, the Company recorded a total
cash dividend per share of Rs. 13.65 for the year.
Capital Structure Ratios
Financial leverage ratio of 0.62 times for 2014 is consistent with the average for the past 6 years. Debt to
equity ratio improved to 9:91 indicating the lowest amount of long term debt in the last 6 years.
Companys interest cover ratio doubled to 32 times in comparison with 15 times in 2009 as a result of
lower finance cost to profitability ratio.

DuPont Analysis
Net profit margin of the Company decreased to 22% during the year as compared to 27% in 2013 as a
result of increase in raw material cost and GIDC. Asset turnover and ownership ratio reduced to 0.94 and
9.6% respectively in 2014 owing to an increase in the asset base of the Company, primarily on account of
an increase in long term investments. Consequently, the Company reported a return on equity of 71% in
2014 compared to 80% last year.

Marketing Mix
Major components of marketing mix are;
1.
2.
3.
4.

Product
Price
Place
Promotion

Product
Sona Urea
Sona Urea is the most concentrated solid, straight nitrogenous and most widely used fertilizer in the
country. Mostly it is manufactured in the form of prills, but FFC is producing in prilled as well as granular
forms. Prilled and granular fertilizers are white in color, free flowing, readily soluble in water and both
contain 46% Nitrogen. Because of its high solubility, it is suitable for solution fertilizers and foliar
application. Urea is the best suited to our soils because some of the salient physical and chemical
characteristics of Sona Urea Prilled and Granular are below.

Description

Actual Status
Prilled

Physical Condition
Nitrogen (%)

Free Flowing Prills


46

Moisture (%)

< 0.30

Biuret (%)

0.80 ~ 0.87

Fines (%)

< 1.0

Granular
Free Flowing Granules
46
< 0.30
0.80 ~ 0.87
Dust Free

AV Prill Size (mm)

1.82 ~ 2.0

2.0 ~ 5.0

DAP
Sona DAP is the most concentrated phosphatic fertilizer containing 46% P2O5 and 18% Nitrogen. From
nutrients' concentration point of view, it has got the highest quantity of total nutrients in a 50 KG bag i.e.
32 KG of nutrients / bag. The highest concentration of plant nutrients in a bag helps saving costs of
transportation, handling, storage and application. It is the widely used phosphatic fertilizer in the world as
well as Pakistan. The solubility of DAP is more than 95%, which is highest among the phosphatic
fertilizers available in the country. Due to high solubility it can also be used through fertigation as well as
by foliar application. Its nitrogen to phosphoris ratio (1: 2.5) makes it an ideal fertilizer for Basal
application to meet the initial requirement of most of the crops. Having an ultimate acidic effect on the
soil, it is well suited for our alkaline soils. Its salient characteristics are listed below:

Description
Nitrogen (%)
P2O5 (%)
Crushing Strength (Kg)

Actual Status
18
46
6

Size (mm)

2~4

Moisture (%)

< 0.7

FFC SOP

This fertilizer is an important source of Potash, which is a quality nutrient for production of crops
especially fruits and vegetables. Potash is an important nutrient for activation of enzymes in the plant
body and helps increasing sugar and starch contents. Potash improves the resistance of the plants against
pests, diseases and stresses like water / frost injury etc. FFC SOP contains 50% K20 in addition to 18%
sulfur, which is also an important nutrient especially for oil seed crops and it also has an ameliorating
effect on salt-affected soils. As readily soluble in water so it can be used through fertigation as well as
foliar application. SOP is well suited fertilizer for all types of crops and soil. Use of potassic fertilizer in
Pakistan is minimal, which needs to be promoted for qualitative as well as quantitative crop production.

SONA BORON

Sona Boron is a crystalline fertilizer in the form of Sodium Tetra Borate Dec hydrate in 3 Kg packing. It
is an essential micronutrient required for plant nutrition, which pays a vital role in a number of growth
processes especially new cell development, pollination, fruit/seed setting, translocation of sugars,
starches, nitrogen and phosphorous, nodule formation in legumes and regulation of carbohydrate
metabolism. Boron deficiency results in curled leaves, cracking and rotting of fruits, tubers or roots.
Keeping in view increasing boron deficiency in Pakistani soils FFCL is providing superior quality Sona
Boron containing 11.3% Boron (Borax). It is easily soluble in water and readily available to plants. It can
be used as mixture with other fertilizers.

Price
Sona Urea (P)

Rs. 1790

Sona Urea (G)

Rs. 1800

Sona DAP

Rs. 3700

Sona SOP

Rs. 5200

Sona Boron

Rs. 700

Placement
The product is distributed directly from the plants. There is a great demand for fertilizer in the country
and the company is having orders in advance. But to make the whole system very smooth, company is
having well-structured distribution department which coordinates with the carriers both with the
companies and the individuals. Because fertilizer is required in all parts of the country and FFC being a
national firm take it as obligation that its product is distributed throughout the country. The company also
ensures that prices of its products do not vary in any part of country because of transportation cost for this
company gives some discount to those dealers who are far-flung areas.
The distribution department makes contract with the private contractors to accomplish the task. The
contractors are responsible for any loss of the product on the way. The management also pay surprise
visit at dealers shops to ensure that the quantity in the bags, quality and the price are same as suggested
by the company policy.
Distribution Department is major department helping the sales force. Primary function of Distribution
dept. is to ensure effective and efficient distribution of product from plants to final customer.
Objectives of Distribution Department
Ship out entire production of FFC and FFBL plants and imported fertilizer in accost effective
manner.
Satisfying 3800 dealers and 184 warehouses
Plan and undertake self-exports/imports and ensure prompt handling, quality packing, correct
weight, timely delivery and arrange safe storage of surplus product during lean months.
Follow up of product quality complaints
Co-ordinate with plant management to ensure smooth operations
Maintain liaison with Pak Railways, NLC, Port authorities and suppliers
Transportation arrangements

Private trucking contractions


NLC

Pakistan Railways

Promotion
Promotion is backbone of successful marketing network. But in fertilizer industry in Pakistan companies
need a little promotion to achieve its objectives. And the reason is that demand is greater than supply. But
FFC does it for many reasons; one of them is to protect its brand name, which is SONA. Actually the
company wants that whenever a farmer in the country thinks to use fertilizer the only name that should
come in his mind should be SONA.
Fertilizer industry is different from FMCGs. In fertilizer industry, the users mainly residing in rural areas,
so many problems including media and education level arises. FFC in spite all these hurdles take all the
options to promote their product. As a matter of fact, FFC is using different mediums to promote its
product. Especially promotion becomes crucial when company needs to introduce a new product.
FFC has a sales promotion department which is working under marketing service department, is
responsible for all the promotional activities. The department is using various ways to promote the
product. These are;
Different Medias used at FFC for promotion

Television
Radio
Print media
Road side
Point of purchase

Electronic Media

PTV
PTV (world)
KTN (sindi language)
Geo
Indus T.V
A.R.Y Digital

Campaigns

Kharif campaign
Rabi campaign

Radio

National radio channel


Ad duration 10-60 seconds

All around the year

CCTV

Islamabad airport
Lahore airport
Faisalabad airport
Lahore railway station
Multan railway station
Hyderabad railway station
Faisalabad railway station
Daewoo coaches
Daewoo lounges

Print Media

National dailys
Regional newspapers
International magazines
National magazines
Regional cultural magazines
Ad size 108 pcm

Road side Advertisements

Jumbo hoardings
Bill boards
Warehouse boards
Dealers shops boards
Plastic whole signs

Point of purchase

Crop posters
Corporate posters
Crop booklets
Zari reports
Agro grams
Buntings

MARKETING STRATEGY
Marketing strategy is the practical application of marketing techniques. It
is the analysis, planning, implementation, and control of programs
designed to create, build, and maintain mutually beneficial exchanges
with target market. The marketing manager has the task of influencing

the level, timing, and composition of demand in way that will achieve
organizational objectives

Marketing Strategy of Fauji Fertilizer Company


Fauji Fertilizer Company has major marketing strategy that involves.
Identifying the market style and market trend.
Identifying the customer trend and style.
Identifying the customer needs and demands.
Identify the segments within your market.
Understand company's strengths and weaknesses.
Implementation of 4p's price place product promotions.
Understand where you want your brands to be in the future, and write
marketing plan on regular basis to help you get there.
Internal service quality of customer satisfaction.

PEST Analysis of FFC


Political Instability:

The political situation of Pakistan is not satisfactory. Due to the rapid change in the Government
every government sets its own new trade policies. Govt. should apply sustainable policies for the
beneficial of the exporters as well as the investors.

Economic situation:

The economic condition of Pakistan can also affect the foreign investors increasing inflation rate
make the cost of production high and thus reduce the profit margin of the investor.

Social situation:

The change in the lifestyle of the people affects the growing demand of the FFC products. The
change in the lifestyle and needs in different demographics also affect the demand of the
customers. Due to all these changes FFC is performing excellent for the excellence organization
as well as for the customer.

Technological factor:

Technological advancement in all the sectors of the country has changed the entire socioeconomic environment. Especially in the fertilizer sector there is a lot of technological
development. High technology is the basic requirement of FERTILIZER industry. The companies
that are using latest technology have some cost benefits over the companies, which are not using
high technology. The key to survival for companies in this industry is using high technology for
quality and cost purposes.

SWOT Analysis
Strengths

Solid financial position


State of the art production facilities
Fertilizer products are high in demand by agriculture sector
Development of new and eco-friendly formulations
Competent & committed human resource
Well diversified investment portfolio
Brand preference
Well established distribution network
Technical Competence

Weaknesses

Mature industry with clogged overall market share


Reliance on depleting natural resource
Fixed customer base
Narrow product line

Opportunities

Horizontal as well as vertical diversification


Increase in product line covering Macro and Micro nutrients
Less potential for new entrants in the industry
Absence of substitute products
Opportunity to export fertilizer

Threats

Inconsistent Government policies for fertilizer industry


Depleting natural gas reserves & gas curtailment
Excessive fertilizer imports by the Govt. and marketing at subsidized rates
Continuous increase in raw material/fuel prices and levies (GIDC)
Declining international fertilizer prices

Future Prospects
Fauji Fertilizer Co., Pakistans biggest maker of the farm input by market value, plans to set up a
plant in Africa as domestic gas shortages undermine profits and prospects of increasing output at
home. The company has formed a consortium with foreign companies to invest at least $1.25

billion. Fauji, which has yet to complete the selection of the site for the facility, plans to start
building it in 18 to 24 months. FFC is planning its first overseas venture as the company run by a
group of retired army officers braces for its second annual drop in profit in three years in 2014.
Pakistans gas shortfall has widened to more than 2 billion cubic feet of gas a day, shutting
factories and resulting in protests in the nation of more than 196 million people.
The companys net income is set to fall this year to its lowest in four years and may also decline
in 2015 before stabilizing. Net income fell 3 percent to 20.1 billion rupees in 2013. In the long
term, say eight to 10 years from now, unless there are new finds in gas, the fertilizer industry will
be hit hard.
Fauji Fertilizer may also invest $400 million in setting up coal-fired electricity generating plant
or expanding in wind power. The company set up Pakistans first wind power project in the
southern Sindh province in 2013.Pakistans demand for electricity outpaces supply by 6,000
megawatts a day during the peak summer season.
Conclusion and recommendations
Conclusion
FFC views excellence as FFC is the market leader in the fertilizer having 60% of the market
share. Company being the market leader sets standards for the industry. The company continues
to enhance the facility of providing farmers free farm advisory services through farm advisory
centers. FFC is using a single brand name SONA for its products like SONA urea, SONA DAP
helping farmers to remember the name. FFC is only Fertilizers Company in the industry
conducting seminars on core agricultural issues, inviting local and foreign luminaries. Company
is fully automated having the extensive information systems for the plant site as well as the
marketing division, countrywide location of plants.
Recommendations
FFC should keep following the quality principles. These principles have served it well. They
have made the company that it is today. It is recommended that FFC should use its position as a
market leader in the fertilizer sector and expand its operations in other countries as well.
Neighboring countries like Afghanistan and Iran are ideal for this type of expansion. FFC is also
advised to maintain its quality because in a situation like this it is very easy for a company to get

complacent and start neglecting the quality of its products. The company is also advised to start
working hard because Engro is gaining the market share quickly and if FFC does not do
something about it then very soon FFC will have to relinquish its status as a market leader.

REFERENCES AND SOURCES USED


Companys Newsletter
Organization marketing department
Organization Annual Report
Company planner