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Engro Fertilizers

Engro Fertilizers is a Pakistani fertiliser manufacturing company headquartered in Karachi with its manufacturing facility located at Daharki, and a facility located at Port Qasim as well.[2][3] It is a subsidiary of Engro Corporation.[4] It has 35% market share of the Pakistani fertilizer market as of 2023.[5]

History

Engro Fertilizers was demerged from the parent company Engro Corporation in 2010.[4][6]

In June 2011, Engro commissioned the EnVen plant at a cost of $1.1 billion.[7][8] It was built under the 2001 Fertilizer Policy of Pakistan in which the Government of Pakistan guaranteed gas supply at a reduced rate for ten years.[8][9] The contract was signed with Sui Northern Gas Pipelines Limited, which defaulted on their contract and in 2013 Engro claimed ₨34 billion in damages.[10]

In December 2013, Engro was listed on the Karachi Stock Exchange, following an initial public offering at a strike price of ₨28.25.[11][12][13]

In February 2015, Engro Fertilizers acquired Engro Eximp Private Limited from Engro Corporation.[14][9] Engro Eximp imports diammonium phosphate (DAP) fertilizer in Pakistan.[9]

In June 2016, Engro Corporation sold 28 percent of its stake in Engro Fertilizers to private investors for $185 million.[15][16]

Production

Pakven 600

Pakven 600 was commissioned in September 1993, which increased Engro's urea production capacity from 268,000 tons to 600,000 tons per annum.[17] It was an imported second-hand plant which was installed at a cost of $130 million.[17] In July 1995, Engro further increased its capacity by 150,000 tons per annum at a cost of $23 million.[17]

The plant has outlived its useful life.[18] In 2021, Engro increased its capacity from 500,000 tons to 780,000 tons per annum and a year later further expanded it to 950,000 tons per annum.[18]

EnVen

The EnVen plant is located in Daharki.[18] The construction of the plant began in 2007.[18] It was commissioned in 2011 at a cost of $1.1 billion.[19] It was built under the provisions of the 2001 fertilizer policy in which the Government of Pakistan gave a guarantee of subsidized gas for a period of ten years.[9][15] The plant has a designed annual production capacity of 1.3 million tons of urea fertilizer.[20] In 2023, Engro Fertilizers reported a record urea production of 2.3 million tonnes, a 18.3% increase over previous year's production.[21] In June 2024, Engro completed the largest turnaround of the EnVen plant over a period of 2 months, with investment of around $50 million and a manpower of more than 6000 people.[22]

NPK Plant

Zarkhez NPK plant is located at Port Bin Qasim, Karachi.[18] It was commissioned in 2000 and had an annual production capacity of 100,000 metric tons.[18][23] The plant has since been debottlenecked and production capacity increased to 145,000 metric tons.[24]

External links

References

  1. Engro Fertilizers Annual Report 2024 engrofertilizers.com, retrieved 12 September 2025^
  2. Fazal Jawad Seyyed, Hafsa Ashfaq. Engro Fertilizers Limited: Cost of Capital and Valuation Asian Case Research Journal, 6 December 2019^
  3. Engro Fertilizers Website^
  4. Dilawar Hussain. Fertiliser industry faces up to tough times Dawn, 15 May 2017, retrieved 18 June 2021^
  5. Engro Fertilizers Annual Report 2023^
  6. Mariam Ali Baig. Pressing reset on agricultural productivity Dawn, July–August 2018, retrieved 17 June 2021^
  7. Engro EnVen urea plant announces COD Brecorder, 25 June 2011^
  8. Blue-chip woes: Was Enven a strategic mistake? The Express Tribune, 27 June 2011^
  9. Dilawar Hussain. Change in Enven's fortunes DAWN.COM, 30 March 2015^
  10. Absence of gas: Engro claims Rs34 billion in damages from public utility The Express Tribune, 18 January 2013^
  11. Engro Fertilizers conducts first phase of IPO successfully The Express Tribune, 21 November 2013, retrieved 2021-11-07^
  12. Public subscription: IPO of Engro Fertilizers entering final phase The Express Tribune, 3 December 2013, retrieved 2021-11-07^
  13. Dilawar Hussain. Engro Fertiliser IPO at Rs28.25 per share Dawn, 15 December 2013, retrieved 2021-11-07^
  14. Acquisition: Engro Fertilizers to buy commodity trading business for Rs4.4b The Express Tribune, 18 February 2015^
  15. Farooq Tirmizi. Return of the Billion-Dollar Gamble Profit by Pakistan Today, 26 December 2016^
  16. Farooq Tirmizi. Engro's Rs60 billion question Profit by Pakistan Today, 17 December 2018^
  17. Corporate finance in Pakistan: Case studies from an emerging market [Karachi]: Oxford University Press: Lahore University of Management Sciences, May 13, 1999^
  18. Muhammad Raafay Khan. Engro Fertilizers increases base plant urea capacity to 950,000 tons Profit by Pakistan Today, 29 December 2022^
  19. World's largest urea plant comes online The Express Tribune, 24 June 2011^
  20. Dilawar Hussain. Engro Fertiliser: Acquisition improves earnings DAWN.COM, 17 August 2015^
  21. Engro Fertilizers achieves record urea production in 2023 to ensure food security for Pakistan www.engro.com, 2024-02-20, retrieved 2024-06-26^
  22. Press Release. Engro Fertilizers completes largest-ever EnVen Plant turnaround with investment of around $50 million Profit by Pakistan Today, 2024-06-21, retrieved 2024-06-26^
  23. 50 years of accomplishment-Engro turns 50 – Business Recorder^
  24. Engro Fertilizers Annual Report 2023^