Engro Foods Strategic Management

10347 Words Nov 11th, 2010 42 Pages
STRATEGIC MANAGEMENT ANALYSIS OF

Submitted to: Murtaza Sunelwala

Executive Summary
The repot at hand provides useful insight about Engro Pakistan Ltd, a private fertilizer firm that keeps about 22 % of market share in the milk food industry Pakistan. Established in 2005, a 100% owned subsidiary –First investment of dairy plant Processed milk market is growing at approx. 20% per annum Olper’s achieved peak market shares of 12.3% within 6 months of launch Other products launched –Olper’s Cream, OLwell –High Calcium Low Fat Milk (Premium Brand) Plans to expand product portfolio Milk processing capacity to increase by 200% to 200 million liters annually Will become the only company in Pakistan covering the entire milk catchments area
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World’s largest single-train Urea plant of 1.3 million tons being setup at a cost of US$ 950 million. On commencement of operations in mid 2010, cash fixed costs of the new plant will be a third of the existing plant; scale & brown field synergies Gas consumption at the new plant will be 15% less than the existing plant. Engro’s Daharki complex will become the world’s fifth largest Urea production site; 2.28 million tons, 3 plants.

Engro Energy Limited Established in 2006-100% owned subsidiary Pakistan is facing growing energy deficit -Energy consumption has been growing at 7% per annum Setting up a 220 MW gas based power plant at a

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cost of $220 million with commercial operation in 2009 Short-listed along with 3othercompanies for privatization of Jamshoro Power Company Engro Innovative Automation Limited Acquired majority stake (51%) in a knowledge based company Innovative Engineering & Automation Ltd in 2003 Market Leader in domestic Industrial Automation –Honeywell distributor in Pakistan Expanding internationally to synergize, and benefit from lower costs at home and higher demand abroad Now operating in Dubai, UAE which contributes 25% of revenue and half of the profit Company’s first IP product “iboiler”launched internationally in 2006 Acquired an automation company in the US in Dec. 2006; mandated to develop outsourcing opportunities Engro Vopak Terminal Limited A 50-50 JV with Royal Vopak of Holland; established 1997
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