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Contents

Introduction................................................................................................................ 3
Brief Overview of Company........................................................................................ 3
Industry Overview...................................................................................................... 4
Brief History and Background..................................................................................4
Vision....................................................................................................................... 5
Mission.................................................................................................................... 5
FFBLs Internal Environment....................................................................................... 5
Hierarchy of FFBL.................................................................................................... 5
Departments.............................................................................................................. 6
HR Department....................................................................................................... 6
Finance department................................................................................................ 7
PESTLE Analysis.......................................................................................................... 8
Political.................................................................................................................... 8
Economic................................................................................................................. 9
Social....................................................................................................................... 9
Technological........................................................................................................... 9
Environmental......................................................................................................... 9
Legal...................................................................................................................... 10
Porter Five Forces analysis........................................................................................ 10
Bargaining power of supplier................................................................................. 10
Bargaining power of buyers................................................................................... 10
Rivalry among Competitors...................................................................................10
Threat of new entrants.......................................................................................... 10
Threat of Substitute............................................................................................... 11
Relationship with international markets...................................................................11
Competition and its impact...................................................................................... 12
Engro Fertilizer Limited.......................................................................................... 12
Fatima Fertilizer Limited........................................................................................ 13
Dawood Hercules Fertilizer Limited.......................................................................14
Agritech................................................................................................................. 14
EXTERNAL ANALYSIS................................................................................................. 14

SWOT Analysis...................................................................................................... 14
Marketing Strategy................................................................................................... 15
Strategy Formulation............................................................................................. 15
Product and Service Range.................................................................................... 16
Branding and Quality............................................................................................. 17
Sales Performance................................................................................................. 18
MIS & Technology
Issues
18

Introduction
Agriculture is the backbone of Pakistans economy. From the past few years, agriculture
sector of Pakistan is showing mixed growth (Economic Survey 2011-12). During 2013-2014
the performance of this sector was encouraging with the growth of 2.1% (Economic Survey
2013-14). Agriculture has a major contribution in the GDP of Pakistan. The chief objective of
the agriculture is to produce food and to provide source of income to the people of Pakistan.
Major work force i.e. 43.7% (Economic Survey 2012-13) of the Pakistan is employed in
agriculture sector of Pakistan and this major chunk of total population is growing food for
themselves and for the nation.
The increasing population means that more food is required for feeding more people. It is
very important to use fertilizers for increased production and improved quality of crops.
Although government policies and laws are always in favor of fertilizer industry but there are
just a hand-full of companies operating in this industry. The biggest reason behind this is
high capital investment is required for setting up a production plant.
Since the role of fertilizer industry is pivotal in agricultural countries like Pakistan, thus, we
aim to frame this research over strategic analysis of leading fertilizer company, Fauji
Fertilizer Bin Qasim. It is among the top manufacturing company of fertilizers, it has strong
financial position and it has various advantages over its competitors. Also Fauji Fertilizer
Bin Qasim is listed on stock exchange and value of its shares is increasing (FFBL 2014)
which shows that companys performance is good.
The main goal of the study is to collect the information about functional areas of FFBL, the
best practices of industry, corporate culture, and industry concentration. In addition to that we
will be studying international best practices of fertilizer industry, economic survey, and how
the industry get impacted by the external factors like shortage of gas etc.

Brief Overview of Company


FFBL is the subsidiary of Fauji Fertilizers Company. FFC has a holding of 50.88% of FFBL
shares. Fauji Fertilizer Bin Qasim is the only company which produces Di-ammonium
phosphate in Pakistan. The DAP manufactured by FFBL is used in cultivation of crops. FFBL

alone meets 45% of the demand of DAP and 13% of the demand of urea (FFBL 2014).
Hence, contributing towards the agricultural growth Pakistan, and ultimately contributing in
GDP of the country. It is an ISO-certified manufacturer of granular urea and Di-ammonium
phosphate fertilizers. The company started as a result of a joint-venture between Fauji
Foundation group and Jordan Mines Company (JPMC) in November 1993. Initially the
company was named FFC-Jordan Fertilizer Company. At that time FFC had 30%, FF had
10% and JPMC had 10% stakes of the company. The Company was listed on Karachi Stock
Exchange in May 1996 while the commercial production was started in January 2000. The
company was renamed as Fauji Fertilizer Bin Qasim in 2003 when JPMC sold its entire
stakes to Fauji Fertilizer. The production units of FFBL are located in Karachi while the
head-office is located in Harley Street Rawalpindi. FFBL is a member of Rawalpindi
Chamber of Commerce and International Fertilizer Association.
In 2005, FFBL did joint venture with a Moroccan firm Office Cherifien des Phosphate
(OCP), and Pakistan Maroc Phosphorus S.A was established on Pakistan. Moreover in
2006 FFBL achieved ISO certifications in Quality Management System (QMS) (9001:2000),
Environment Management System (EMS) (14001:2004) and Occupational health and safety
(OHSAS) (18001:1999). Further, for integration of different departments and for sharing
information among all of the employees company implemented SAP-ERP system in 2010.
Now FFBL is planning to diversify its portfolio and starting two new projects. One is Fauji
Meat and the other one is Fauji Food.

Industry Overview
Brief History and Background
At the time of establishment of Pakistan in 1947 there were not any fertilizer plants or
manufacturing facilities. Pakistan has remained essentially an agrarian economy. The
governments in the past have recognized the great significance fertilizers have on agricultural
productivity. So, conscious efforts have been made to install new plants and attract foreign
investment in this sector. Pakistans agricultural growth is has a significant dependence on
the fertilizer industry because it provides one of the key inputs of crop production.
Agriculture is the backbone of Pakistans economy since it contributes a hefty 21% to the

GDP. Any progress in the fertilizer sector not only helps the country and economy thrive at a
quicker pace but also dos good to the whole population of the country. Directly or indirectly,
around 62% of Pakistans population has dependence on agriculture.

Vision
To be a premier organization focused on quality and growth, leading to enhanced
stakeholders value.

Mission
Fauji Fertilizer Bin Qasim Limited is committed to remain amongst the best companies by:

Maintaining the spirit of excellence through sustained growth rate in all activities
Maintaining competitive price
Maintaining quality fertilizer
Providing safe and conducive working environment for the employees

FFBLs Internal Environment


Hierarchy of FFBL
The company structure of FFBL is not very extended. At the top, there is a CEO of the
company under which there are Managing Directors. There are separate General Managers
for the head office and production unit which is located in Karachi; these General Managers
report directly to the Managing Directors. Under general managers there are Divisional
Managers most of them are retired army personnel. Each manager has a team; the teams are
leaded by Divisional Manager and are responsible for achieving certain targets of a particular
division.
There are several sub divisions under plat divisions that are called production unit
departments these departments include: plant operations, maintenance, administration etc.
Under managers there are lower managers and non-management staff.

Departments
HR Department
For any organization, human resource department plays a major role in performance of
business. If a human resource department is efficient it can fulfill business need by attracting,
recruiting and retaining most important resource i.e. human resource

e.

After conducting interviews from some of the employees working in HR department of


FFBL we have identified that FFBLs human resource department is operating on four main
pillars. These pillars include: recruitment, compensation, performance appraisal and training
and development.

Finance department
Finance is one of the most sensitive areas as it deals with all the cash and investment
management etc. A single mistake in finance department can cause millions of Rupees loss to
the company and hence the company may ultimately loss the basic reason for the operation
of their business activity i.e. Profit maximization.
Most of the financial decisions of the company are made by the CFO. However, the
operations of the department routine work and documents are signed by treasury manager
and as well as CFO. The long term planning and budgeting is done by separate finance
department of planning and budgeting department which is located in the head office.
Like other companies, FFBL publish their annual statements as well as quarterly statements
to inform the general public and stakeholders about the performance of their company.
Financial Statements is made on accrual bases and reported according to IAS 1. Inventory
valuation technique used by company is Weighted Average as allowed by IAS 2 and straight
line method of Fixed Assets is used to charge depreciation on them. On Average 10 years of
useful life is calculated for the machinery and equipment.
Company maintains gratuity fund which is maintained by trustees for its permanent
employees. The amount that is in gratuity fund is close to 1 billion rupees. These gratuity
funds involves very little risk because they are invested in banks or in risk free securities
such as government treasury bills where default risk is very low.

The software which the company is using is SAP. This software was purchased in 2008.
Company officials believe that SAP is very comprehensive software that allows them to have
all sort of information they require. SAP also includes accounting elements in it. For e.g.
maintaining payrolls, Inventory management etc. Initially there was a communication bridge
between different departments. As communication wasnt fluent hence decision making was
taking time. After introduction of SAP in their operating system much of these issues were
resolved. Management can have a look about companys position and any information they
need, it is in front of them with only few clicks.
At the moment making financial decisions in order to reduce cost of production is a major
challenge faced by FFBL says Accounts and finance manager of FFBL. At the moment
company is facing curtailment of gas and as a result company is unable to produce its product
UREA. Gas is the raw material of urea and hence with shortage of gas company was unable
to produce urea to its full capacity. In 2013 4.8 metrics of urea was produced whereas plant
had a capacity of producing 6.8 million metrics. Rising fixed costs per unit is a serious
problem faced by the company at the moment. Its effects and reasons are further discussed in
economic analysis later on.
FFBL is commissioning continuous improvement model of Plan, Do, Check and Act.

PESTLE Analysis
Political
Political factors impact the overall operations of businesses. The Political factors which can
affect fertilizer industry to great extent are:
Terrorism Unfortunately, Pakistan has security issues. Every other day there is a blast or
other terrorist activities due to which the economy and the businesses are being affected. Any
terrorist activity near the manufacturing plan or head office can result in closure of operations
hence causing company a loss. Fertilizer bombs, an issue recently raised by Pakistani and
Afghan authorities is also a threat.

Political unrest Pakistan is a politically unbalanced country, every now and then road are
being blocked due to protests. It disturbs the transportation and distribution of goods.
Government support -- Government always support fertilizer industry because of the fact
that Pakistan is an agricultural country and a major part of its GDP consists of agricultural
products. The main buyer of fertilizer is Government of Pakistan; it provides fertilizer to the
farmer on subsidized rates.

Economic
Inflation Inflation reduces the buying power of the people. This results in reduction of
number of farmers who can afford good quality inputs to the agricultural products.
Shortage of gas Pakistan industries are facing shortage of gas since 2008; this is adversely
affecting the production of fertilizers because natural gas is the major raw material required
for the production of fertilizers.
Increased fuel prices The Company has outsourced its transportation system. As fuel prices
fluctuate the cost of transportation varies accordingly.

Social
Social commitments (internal) - FFBL has collaborated with an NGO named Human
Development Foundation and setup a medical camp in Ghagar Phatak, a small town in Bin
Qasim area of Karachi.

Technological
Integration of systems Few years back FFBL implemented SAP which is software, the
purpose of this software is to integrate all departments. FFBL is the first company in fertilizer
sector of Pakistan which has installed SAP in its business.

New technology New machinery and technologies keep on coming into the market. But
these new technologies are capital intensive.

Environmental
Calamity In case of floods or natural disasters, crop may be damaged, this results in
decrease in demand of fertilizer.
Disposal of industrial effluent The production of fertilizers results in creation of waste
material which may have the adverse affect on the environment. These waste materials can
cause problems such as acid rain, eutrophication, and groundwater pollution. All of these
problems can later sum into bigger global problems like greenhouse effect.

Legal
Export of fertilizer - The export of fertilizer is forbidden in Pakistan so that it can provide to
the demand of farmers in the country.

Porter Five Forces analysis


Bargaining power of supplier
FFBL is a major user of gas and now a day there is a gas shortage in our country. Also other
material for the manufacturing of fertilizers is purchased from abroad mainly so, the
bargaining power of supplier is very high. FFBL is even willing to buy gas, chemicals and
other materials necessary for the production of fertilizers at high cost. Finance manager of
FFBL says: FFBL suffers a loss of approximately Rs. 148 million if the gas supply is cut off
for one day, this loss only for a DAP plant. The other reason for high bargaining power of
supplier in this industry is high switching cost and lack of suppliers as the raw material for
production of DAP is imported.
The switching cost is high because it is difficult to find and contract with suppliers.

Bargaining power of buyers


In fertilizer industry, farmers are the main buyers because they are the ones who need
fertilizers for production of crops. The prices of fertilizers are set on demand and supply
basis and most of the time the demand is on higher side. Therefore, buyers are willing to pay
even higher prices for the fertilizers. As mentioned earlier buyers are large in number but the
options available to them are less, additionally customers are bound to purchase DAP from
FFBL because it is the sole producer of DAP in Pakistan. Hence the bargaining power of
buyers is low.

Rivalry among Competitors


Fertilizer industry of Pakistan is well organized and healthy competition exists. Fauji
Fertilizer Company Limited (FFC), Engro Fertilizers Limited, ICI Pakistan, Agri-tech
fertilizers, Dawood Hercules Limited, Pak-Karam Limited and Fatima Fertilizers are the
direct competitors of FFBL. The capital requirement and fixed costs are high in this industry
due to which competition is less. Additionally this industry is in the maturity stage of product
life cycle therefore competition on the basis of growth is low. In fertilizer industry,
companies compete in a free market because prices of inputs and outputs (fertilizers) are not
regulated by the government instead prices are set on the basis of supply and demand.

Threat of new entrants


Threat of new entrants for this industry is low as entry barriers are high. The largest barrier to
entry in this industry is that huge capital investment and expertise are required for starting a
fertilizer manufacturing factory. Apart from this, some other barriers are: policies and
regulations by the government, lack of natural gas and the brand name of existing fertilizer
manufacturers. Another barrier to entry is unavailability of natural gas.

Threat of Substitute
Fertilizer has no substitute; it is important and necessary for the growth and health of crops.
If farmers do not use fertilizers, they may suffer loss. So far this industry does not have a
threat of substitute.

Relationship with international markets


The main input for productions of fertilizer especially DAP is phosphoric acid. FFBL import
this chemical from Morocco in order to make sure the continuous supply of raw material.
The company has partnered with the largest industrial group of Morocco i.e. Cherifien des
Phosphates, Morocco. The new company formed in Morocco was named as Pakistan Maroc
Phosphor.
There is a nonprofit organization with the name of International fertilizer industry
association (IFA). This organization is ear and voice for the global fertilizer industry as its
mission is to provide necessary nutrients to farmaers all around the world to meet the ever
growing demand of food. IFA does not serve only farmers, it also serve policy makers,
companies, and general public. The IFA organization is located in Paris and has presence in
85 countries with total number of members around 525. The main purpose of this
organization is to represent all fertilizer related activities like supply of raw material,
production, transport, trade and distribution of fertilizers and also to maintain the check and
balances. The other functions of IFA are promotion of nutrients necessary for crops,
improvement of the environment and collection and compilation of fertilizer industry
information.
International fertilizer industry association:

Promotes the efficient use of nutrients to maintain and meet the agricultural demand

worldwide.
Continuously improve the fertilizer industry environment.
Collect, organize and compile data of fertilizer industry. It also provides a platform to
discuss all the ideas and issues relevant to fertilizers.

The government of Pakistan developed The national fertilizer development centre back in 1977.
NFDC is basically a research and development institute with the function of planning, production
and imports, marketing, soil science and training etc of fertilizer industry of Pakistan. NFDC
studies all the problems related to fertilizer sector, it also help government to form and
implement policies related to fertilizer industry. Apart from its domestic presence, NFDC has
established relations with other countries. The list of which is as follow:

Agricultural Economics Institute (LEI), Hague, Netherlands: NFDC has signed a

contract with LEI. LEI provides technical support.


Food and Agriculture Organization (FAO) of United Nations:

beginning NFDC is getting financial and technical support from UN.


International Fertilizer Development Centre (IFDC), USA: This institution has also

collaborated with IFDC hence getting its support.


International Fertilizer Industry Association (IFA), France: As discussed previously

From the very

this is a non-profit organization which aims to work for the betterment of fertilizer sector
worldwide. NFDC is a member of IFA, it shares data like fertilizer consumption,

production etc with IFA. World


Phosphate Institute, Morocco: The two institutions have joined hands in order to carry

on activities on balanced fertilization and soil science etc.


International Potash Institute (IPI), Switzerland: IPI and NFDC have combined

various areas.
Egyptian Fertilizer Development Centre (EFDC), Egypt: EFDC provide technical

support to NFDC.
Other International organizations: Other international institutions which are
collaborating with NFDC are: Fertilizer Association of India, Fertilizer and Pesticides
Authority of Manila, Philippines, National Fertilizer Secretariat of Sri Lanka and Arab
Fertilizer Association of Cairo etc.

Competition and its impact


The few direct competitors of FFBL include Fatima fertilizer, Engro fertilizer, Dawood
Hercules fertilizer, National fertilizer and agri-tech. The product range of these fertilizer
manufacturing companies are to some extent same. As mentioned earlier that FFBL is the
sole producer of DAP in Pakistan hence, it has competitive advantage over other companies.

Engro Fertilizer Limited


Firstly there is Engro Fertilizer which was incorporated in June 2009 by Engro Corporation limited.
Engro fertilizer has a huge network; its production units are nationwide and have strong marketing
system unlike FFBL. Engro is a considered one of the top fertilizer brand in Pakistan. It is a leading
producer and seller of phosphate products in Pakistan. In 2013, the company made total profit of Rs
50,129 million (Annual Report 2013).

Products:
The product line of Engro fertilizer include following products:
Engro Urea: Engro Fertilizer company started production of 173,000 tons of urea per annum in 1968,
further by increasing its capacity company is now producing 975,000 tons of Urea per annum. The
total urea market share of the company was 26% in 2013 (Annual Report 2013)
Engro DAP: Engro Fertilizer company is not producing DAP locally but it is importing and marketing
DAP in Pakistan since late 1990s. Here FFBL has a competitive edge.
Engro NP: NP is a fertilizer rich in nitrogen and phosphorus. The Pakistani soil lacks both of these
nutrients. Keeping in mind the need of these two important nutrients Engro fertilizer started
manufacturing of this fertilizer in 2005. Presently, Engro NP has the highest share in some parts of
Sind province.
Engro Zerkhez: The Company launched this fertilizer in 2002. This fertilizer is rich with all the three
nutrients required for cultivation of high quality crops.
Zingro: Another important nutrient required for better yield and quality of crops is zinc. Especially for
Rice crop zinc is an important nutrient so; to cater for the requirement the company has introduced
Zingro. Zingro has the highest market share in zinc fertilizers.
Engro envoy: In addition to develop products for better crop yield, Engro has designed a product
Engro Envoy for improved growth of garden, flowers, fruit plant, vegetable plants and decorative
plants. This can become a close substitute of FFBLs Sona DAP.

Fatima Fertilizer Limited


Fatima Fertilizer is another direct competitor of FFBL. It is not a very old fertilizer company; it was
incorporated by the joint venture of two big groups Fatima Group and Arif Habib Group in December
2003. The company manufactures Sarsabz Calcium Ammonium Nitrate (CAN), Sarsabz NitroPhosphate (NP), and Sarsabz Urea.
Pak-Arab Fertilizer company was Pak-Arab was privatized on July 2005 at a cost of Rs 14.125 billion
and was acquired by Fatima Group and Arif Habib Group.
Products:

Sarsabz Calcium Ammonium Nitrate (CAN): CAN is a granulated nitrogenous fertilizer that is rich in
nitrogen, ammonia and calcium. The blend of these three nutrients makes Sarsabz CAN a special
product with neutral chemistry PH. This is not produced by FFBL, so Fatima Fertilizer can gain a
competitive edge.
Sarsabz Nitro-Phosphate (NP): NP is a granulated fertilizer rich in phosphorus and nitrogen. This
fertilizer is highly acidic so it is good for soils having high PH.
Sarsabz Urea: This fertilizer has 46% of nitrogen in it. Sarsabz Urea provides nitrogen to soil which is
necessary for growth and quality of crops.

Dawood Hercules Fertilizer Limited


Dawood Hercules Fertilizer is a fertilizer company which manufactures urea and markets it. It was
started in 1968 as a joint venture between Dawood Group and Hercules Chemicals Inc. of the USA.
The company manufactures and sells urea under the brand name of Bubber Sher.
Companys performance has improved from past years; this performance of the company is depicted
in its annual statements. Companys profit after taxation was Rs 3,248 million, Rs 2,893 million, Rs
984 million and Rs 3,604 million in 2010, 2011, 2012 and 2013 respectively.
Products:
Urea: Dawood Hercules Fertilizers limited manufactures granular and prilled forms of urea.
DAP: Dawood Hercules Fertilizers does not produce DAP, it imports DAP from other countries and
market it under companys brand name.
Ammonia: Another fertilizer that the company produces is rich in ammonia.

Agritech
Agritech (also known as Pak-American Fertilizers LTD) was formed in 1958. Further in 1998, a new
production plant was installed. The company received two ISO certifications; one is Quality
Management ISO 9001:2000 and the other one is Environmental Management systems ISO
14001:2004.
Products:
There are three products which the company sells:

Tara Urea: Daily production of urea is 810 Metric Ton of Ammonia and 1420 Metric Ton.
Tara SSP: Agritech is manufacturing plant is producing 300 metric tons per day of granular single
superphosphate.
DAP: The company has not started the production of DAP yet.

EXTERNAL ANALYSIS
SWOT Analysis
Strengths:
i.

Weaknesses:

Fauji fertilizer bin Qasim is the sole

i.

Firm is dependent on single source of

ii.

gas supply
FFBL does not have its own marketing

producer of DAP in the country. Hence,


it has competitive advantage over other
ii.

department; its marketing is done by its

fertilizer manufacturing companies.


It is the first ever fertilizer
manufacturing

company

that

parent company which is FFC. Due to

has

poor railway network, company is

introduces SAP system. SAP is used to


iii.

organize and integrate data.


The company has strong financial
position,

which can

be seen by

companys share price i.e. highest share


iv.

price in this industry.


It is the single Fertilizer Company

iii.

dependent on costly logistics.


Production capacity of the plant is less

iv.

while the demand is high.


Company is dependent on prices and
supply of international market. As some
of the raw materials are imported

which has joint ventured with a


Moroccan company for import of
v.

Phosphoric acid.
Competent and committed Human
resource.

Opportunities:

Threats:

i.

There exists a gap between demand and

i.

There is shortage of natural gas in our

ii.

country.
Due to shortage, fuel and gas prices

iii.

increase.
Prices of most important raw material

supply of fertilizer; company can


increase its production to meet the
ii.

demand.
There exists

iii.

diversifying investment and products.


If government allows export of
fertilizers,

it

an

opportunity

will

become

of

an

iv.

opportunity for the company.


Company can shift towards

v.

powered engine to stay competitive.


Can increase production capacity as

which is phosphoric acid can rise in


iv.
v.
vi.

coal

firm has enough capital.

international market.
Competition is another threat for FFBL.
Law and order situation in our country.
Governments regulations can be a
threat as governments policies which
are against fertilizer industry can
adversely affect FFBL.

Marketing Strategy
Strategy Formulation
Fauji Fertilizer Bin Qasim Ltd (FFBL) and Fauji Fertilizer Company Limited (FFCL)
have an inter-company services agreement. The latter performs the major marketing
operations. Marketing strategies are also formulated by FFC. FFBL does distribution and
sales as well, but the greater portion of selling is done by FFC.
The Fauji Fertilizer group has a marketing office in Lahore. This is headed by the Group
General Manager Marketing who is responsible for the marketing strategies of products
of both FFC and FFBL. In the regional marketing and sales offices, locals are given
preference as compared to non-locals. This is done to straighten out any
communication/language issues and problems.

Product and Service Range


FFBL is providing superior quality products (Urea and DAP) to Pakistans farmers. The
Fauji Fertilizer group has 3700 dealers in 66 sales districts. There are 14 regions in which

these sale districts are spread out. The FF group has divided the country in 3 marketing
and sales zones which are North, Centre and South. FFBL through these marketing
networks engages with the customers. Kashtkar Desk is a facility of FFC which
company personnel and customers (mainly farmers) can interact. Complete information
regarding crops, soil, agricultural reports, cultivation, market rates and weather updates is
given on the kashtkar desk. The Fauji Fertilizer Group has an Agri-services department.
This department in addition to offering agriculture/fertilizer related services also gives a
boost to the farming capacity of farmers. The department has modern and state of the art
soil laboratories and consultation centers which inform the concerned with useful
information about soil quality, soil nutrient deficiencies and other soil related problems,
water problems, general agribusiness advices and modern farming techniques. The AgriServices departments officers, laboratories and Farm Advisory Centers (FAC) (present in
Mandi Bahauddin, Shahkot, Muzaffargarh, Bahawalpur and Sukkur) perform this
invaluable service for the overall betterment of the farmer community and the country as
a whole.
If we analyze the domestic fertilizer market, we come to realize that Punjab has the
highest consumption rate of fertilizers in the country. Punjab is followed by Sindh
(second), KPK (third) and Balochistan (fourth). The following pie-chart shows the
province-wise sales:

It is worth mentioning here that only Punjab and Sindh fall in the companys freight
economic zone while KPK and Balochistan do not.

Branding and Quality


FFBL and FFC are the brands of choice for the farmers of Pakistan. Despite adverse market
conditions, political and economic turmoil and gas curtailment, this brand preference coupled
with good capacity utilization of manufacturing plants and rigorous marketing operations has
enabled continuous fertilizer sales.
FFBL is dedicated towards maintaining excellent fertilizer quality. For this resolve, all its
products have extensive quality assurance measures. FFBL strives to provide the best value
for money. The following measures prove this fact:
1. A uniform weight of fertilizer bags is certified.
2. Quality analysis of samples taken from the products is done on a regular basis. Average
Prill Size measured in millimeters, Biuret Weight measured in percentage, Moisture
measured in percentage, Strength of Crushing measured in grams, Total Fines Weight
measured in percentage are kept as parameters.
3. The best industry standards are kept in consideration while packaging. This guarantees
accurate weight, quality and product protection.
4. Sale prices along with pehchan sticker are printed on all the product bags. This
guarantees against forged and spurious products.
5. An excellent country wide network of dealers and distributors confirms availability as
well as swift delivery of products.
6. Customer satisfaction surveys are carried out by FFBL bi-annually to get dealers
feedback.
7. The Fauji Fertilizer Group has a 5 FACs in the country as mentioned above. These along
with the presence of groups field officers provide guiding principles, recommend course
of actions and also handle customer complaints. All this is done in a very efficient
manner.
The company delivers its products to certified company dealers, institutional dealers and
customers and also direct customers.

Sales Performance
The international Urea prices fell from 2013 to 2014. In the early 2013, the per ton price
of Urea was US$ 340. In June 2014 it declined to US$ 245. From July, 2014 the prices
started to increase. By December 2014, the price of Urea per ton was US$ 295. However,
international DAP prices continuously increased. In early 2014, the per ton price of DAP
was US$ 390. This increased to US$ 480 in October, 2014. A slight decrease in price was
seen from October to December 2014 and the price was reduced to US$ 470 by the end
of December 2014. The global demand of fertilizers was satisfactorily met last year. This
is because of increase in overall global production. Out of the total installed capacity, the
fertilizer industry of the world functioned at 78%.
The domestic sales of FFBL can be summarized as follows:
Sona Urea (Granular)
Sales in 2014 = 214 thousand tons
Sales in 2013 = 226 thousand tons
So there has been a 5% decrease in sales. This is attributed to the problem of gas reduction.
The share of FFBL in Urea market is 3.8% which has remained same.
Sona DAP
Sales in 2014 = 709 thousand tons
Sales in 2013 = 773 thousand tons
So there has been an 8 % decrease in sales because of the same problem of gas curtailment.
The share of FFBL in DAP market has declined from 46.4% in 2013 to 41.4% in 2014.
The following information was obtained from the notes to the consolidated financial statements
of the 2014 annual report of FFBL.

We can clearly see that the sales promotion and advertising expenses have increased from
33,424,000 Rupees to 38,160,000 Rupees.
MIS & Technology Issue
At Fauji Fertilizer Bin Qasim Ltd, there is a separate Technology/IT department which is headed
by an IT Manager. The IT manager works in close coordination with the General Manager
Finance (GMF). A proactive approach is used in all aspects of technological matters. FFBL has
employed the latest technology at its plant sites and management offices. The plants of FFBL are
high-tech, using modern technology and they are upgraded constantly as per requirements.

IT Governance Policy
There is an IT Governance Policy (ITG) of the company which serves the following purposes:
1.
2.
3.
4.
5.

Define the scope of IT Governance


Defining responsibilities
Maintaining and upgrading the overall IT infrastructure as per requirements
Help in establishing and efficient Information Technology department
Supporting the organization in accomplishing its strategic, tactical and operational aims
and objectives. This is possible only through efficient IT processes.

FFBL has realized that in order to align itself with the best international practices, a sound IT
policy should be implemented. The business requirements can easily be met by keeping this in
mind. The scope of the IT policy of FFBL spread over on not only the IT department, but all
divisions and departments that use IT.
The basic functioning of the IT department is such that it maintains, updates and aids the overall
IT infrastructure of the company. In addition to this, it assists the corporation to realize its goals
and objectives. So it has both primary and supporting functions. The IT office builds procedures,
formulates programs, designates responsibilities to concerned staff and checks the progress
throughout. The IT Manager and the IT office are also answerable for any disruptions in the IT
processes and to resolve them.

Information Security and Risk Management


FFBL follows the ISO standards for Information Security and Risk Management. These
standards are ISO 27001 and ISO 27005. These standards are followed in order to ensure
security control implementation, adherence to laws and regulations along with overall
management of IT at FFBL. There is an Information Technology Infrastructure Library (ITIL)
which aligns the IT services with the needs of the corporation. ITIL provides best practices for
the IT services management.
Following actions have been taken by the company with aim of using international standards and
best practices for regulatory compliance:
1. Risk Assessment
a. Ascertain and work out all sorts of risks that can affect FFBL (e.g. unauthorized
access, modification/disruption/destruction of data etc.)
2. Policies and Procedures
a. Maintenance of policies and procedures
b. Confirming that IT systems are able to detect, inform and respond to critical
issues and incidents
c. Ensuring operational stability and progression
3. IT and IT security awareness
a. Training employees
b. Ensuring IT infrastructure to be user friendly
4. Testing, analysis, review and evaluations
a. These will take place in every years second quarter
b. Aligning it with the requirements and needs of FFBL

Internal consultancy, application development and implementation (from top tier to operations)
and providing solutions are part of the IT portfolio. Data centers are present both in Rawalpindi
and Karachi.

Implementation of SAP
For integration of all departments and for sharing information amongst all the employees,
company implemented SAP-ERP system in 2010. FFBL is the first company in the fertilizer
sector to implement SAP in its business operations. FFBL invests much for its IT infrastructure,
IT solutions and overall technology. This guarantees the competitive position of FFBL. These
efforts were recognized at both national and international levels. FFBL has received awards in
this regard such as Best Leadership Award in Pakistan and Bronze Medal from SAP in
Germany.
Company officials believe that SAP is very comprehensive in many regards, which allows them
to have all sorts of information as per requirement. For e.g. maintaining payrolls, inventory
management, accounting records, production operations, supply chain management etc. Initially
there was a communication bridge between different departments. As communication wasnt
fluent hence decision making was taking time. While implementing SAP, there was a focused
approach from the entire organization. After introduction of SAP in their operating system much
of these issues were resolved. With SAP, management can have a look at companys position and
any information they need is in front of them in just a matter of clicks.

IT Related Risks
An increasing dependency of IT systems increases the risks associated proportionally. Some risks
that are faced by the IT department are as follows:
1.
2.
3.
4.
5.
6.
7.

System failure
Loss or misplacement of data
Unintentional errors, lapses and omissions
Virus attacks
Hacker attacks
Leakage of confidential data
Natural disasters

How FFBL is mitigating these risks


The IT department is well aware of the risks that can arise and it has taken a number of steps in
order to mitigate these. Some of them are disclosed below:
1.
2.
3.
4.
5.
6.
7.
8.

Placement of IT systems at separate locations


Using IT security management
Regular auditing of ITSM and critical IT systems
Using a high efficient data backup and recovery system
Deploying antivirus solution of industry level
Implementing intrusion prevention systems
Using firewalls
Using remote reserve sites

FFBL can and should develop an employee portal, in which employees can interact, can be
delegated work, given announcement/notifications etc.

Production and Operations


The plant division of FFBL is headed by the General Manager Plant. This division is further
divided into departments which are Operations department, Technical Services department,
Maintenance dept., Health Safety Environment and Quality (HSEQ) dept. and Administration
department. These departments are headed by managers and assistant managers. Then there are
workers, engineering staff, technical personnel and supporting staff. Each department works for
the overall progress of the company and has assigned duties and job descriptions. The staffs
work in close liaison with each department in order to excel.
The following tables show the production and sales of Urea and DAP by FFBL:

Fauji

Fertilizer Bin Qasim Ltd produces two products for the market. These are Sona Granular Urea
and Sona DAP. These products are the most widely used fertilizers in the country and have the
largest market share. FFBL is contributing to the agricultural and eventually the economic
growth of Pakistan by meeting the demand of Urea and DAP in the domestic market. The
manufacturing plant of FFBL is located 45 Km south east to Karachi. This plant is connected
with the National Highway and is strategically located since it is near the sea port and the
imported raw materials used in FFBLs production do not have escalating costs due to increasing

distances. This is also an industrial zone so government collaboration is easier, it is a special tax
zone and this area is strategically important for industries. The total cost of the setup was US$
468 Million. This plant was made in collaboration and assistance of Jordanian officials. FFBL
manufacturing facility is an excellent fertilizer complex, with state of the art processes, superior
management and also has an innovative Distributed Control System for efficient operational
procedures, safety at work and overall proficient work ethics.
For any fertilizer company, Ammonia Plant is the heart because it produces Ammonia and
Carbon Dioxide (CO2). Ammonia and CO2 are further used in the manufacturing process of
Urea and DAP. So for FFBL, shutdown of the ammonia plant means the whole companys
shutdown. The inputs of Ammonia formation include steam, air and natural gas. Carbon Dioxide
is formed during the middle of the Ammonia manufacturing process. This Ammonia is then used
as an input for DAP and Urea manufacturing. DAPs inputs include ammonia, phosphoric acid,
sulphuric acid and sand. Whereas Ureas inputs include liquid ammonia and carbon dioxide gas.
FFBL is employing latest technological tools in order to gain a competitive advantage and
minimize competitive disadvantage. The designed capacity of FFBL plant was 1270 metric tons
per day for Ammonia, 1350 metric tons/day for DAP and 1670 metric tons/day for Urea. After
process redesigning and capacity expansion, now the actual production capacity is 1570 metric
tons/day for Ammonia, 2230 metric tons/day for DAP and 1920 metric tons/day for Urea. This
was possible after revamping. The plant is not functioning at its maximum capacity. The reasons
for these are given in detail in this report. Briefly, gas curtailment by the government, power
outages and import of Urea are the reasons which are hindering FFBL to produce at optimum
capacity. The inventory for both raw materials, in process products (such as Ammonia) and
finished goods is maintained both by a physical check and through Management information
systems (mainly SAP).
It is the responsibility of procurement department and supply chain department to procure and
store raw materials. The people of procurement department and supply chain department remain
in connection with the operations and production manager who delegate them the daily
requirement, usage and production statistics. There is a procurement manual which is present for
all concerned and contains the complete code of conduct. The basic procurement procedure is as
follows:

1) The required personnel initiate the purchase requisition. 2) This purchase requisition is sent to
the concerned department heads. An approval is obtained by the department heads. 3) The
purchase order is then reviewed by the procurement department and warehouse managers
(inventory control officers etc.) 4) After approval from the afore mentioned persons, calls of
submitting quotations from various vendors is done. 5) Next, the quotations are opened and
scrutinized by the bid opening committee 6) Generation of comparative statements. 7) The
vendor who offers lowest price and technically correct and approved quotations is approved. 8)
The required material along with its invoice is received by the concerned department. 9) The
inspection unit inspects the material 10) After inspection is done and approval is given, the
disbursement department sends the payment. This marks the end of the procurement procedure.
FFBL has obtained the quality assurance standard of ISO 9001, 14001 and 18001. FFBL has also
achieved the environmental and quality management standard of UKAS (United Kingdom
Accreditation Service) and Pakistan Standards. The maintenance of the plant is done on a
proactive basis and bottlenecks in the manufacturing processes are not allowed to occur
normally. FFBL is commissioning continuous improvement model of Plan, Do, Check and
Act.
If we talk about the production performance of FFBL in 2014 and in the years before this, we can
see that in the first two months i.e. January and February, there is extreme gas curtailment by the
government. This hinders the progress and production. So, the first quarter always shows less
production. With low production, reduced sales and added expenses of maintenance, repair and
quality assurance there is less profitability in first quarter. FFBL has also seen a trend that the
fourth quarter of the year is always highly profitable. This is because the demand of DAP
increases due to Rabi crops sowing season. The year 2014 overall brought lower earnings for
FFBL because the Urea and DAP sales were reduced.
Gas curtailment is the biggest issue for FFBL and the fertilizer industry of Pakistan as a whole.
FFBL faced a 41% increase in gas curtailment in 2014. It was 3% in 2013 and gradually
increased to 41%. Owing to this factor, the ammonia and Urea production reduced by 45% and
66% respectively as compared to the total installed capacity. However, DAP production reduced
by only 6%. This is because of efficient management of low gas load, well-organized operations
and getting constant and unhindered supply of Phosphoric Acid in the plants. This Phosphoric

Acid is obtained from Office Chrifien des Phosphates (OCP) in close coordination with
Pakistan Maroc Phosphore (PMP) Plant in Jorf Lasfar, Morocco.
FFBL conducts regular maintenance of its plants and offices. FFBL conducted a complete quality
check, inspection and turnaround in the first quarter of 2014. Foreign consultants from various
countries were part of this program. The major technical and maintenance jobs that were done
are mentioned in the 2014 annual report of FFBL.

Risk Management
The outcomes and results of a business activity are uncertain. This uncertainty encompasses
elements of risk. These risks include a number of heads, such as strategic/operational/financial
failure of a business/company, disruptions (natural or deliberate) in the market place,
environmental disasters, regulatory risks, law and order etc. In order to tackle risks, risk
management is deployed. Risk management is the management of risks by identifying,
quantifying and handling them. It is quite difficult to completely eliminate risks from an
organization or business activity, however, risks can be mitigated and minimized. This can be
effectively done by recognizing, prioritizing and coping the possible risks that can arise in the
overall corporate strategys context. At FFBL, the prime responsibility of risk management is
held by the relevant management of each department. In addition the managers, the board of
directors as well as the internal and external auditors are also in charge of risk management.
The Board of FFBL has a policy on risk management which comprehends all significant risks
that can be faced by FFBL. The audit committee also works in order to mitigate risk. It reports to
the Board. The internal audit program is periodically reviewed by the audit committee so that it
is made sure that internal auditors are carrying out their responsibilities diligently. The audit
committee gets reports from the internal auditors and the head of internal audit reports directly to
them.
Some important risks that are faced by FFBL are:
1. Volatile security and political situation in the country
2. Gas curtailment. Diversion of gas to other sectors by the government
3. Exchange rate fluctuation is also a risk

4. The outputs (products) and inputs (raw materials) can be imposed of duties and taxes
unexpectedly
5. The legal and regulatory environment in which FFBL operates can change frequently and
can thus become problematic
6. With reference to Sulphur, Phosphate and Nitrogenous products, the international market
scenario is quite unpredictable
7. Fertilizer bombs
8. Natural disasters affecting the overall crop production in the country
9. Use of paper in offices thus a fire or misplacement can be very risky
10. Increasing price of fuel and gas
11. Risks faced due to competition from other firms

FFBL Performance Review:


Business Diversification
FFBL has diversified its business as its core business which is manufacturing fertilizers suffers
due to shortage of gas. The company has entered into meat and wind power businesses. It is
spending approximately $35 million on the wind power project. Also FFBL has now entered into
a food business; two different subsidiaries are made. One is Fauji foods limited (FFL) while the
other is Fauji meat limited (FML). FML is a meat export oriented company while FFL is dairy
facility. FFBL has acquired 51% shares of Noon group which functions under a brand name of
Nurpur and manufactures dairy and butter products. The company has also bought around 270
acres of land near Pindi Bahtiyan in Punjab in order to set up a dairy farm of its own. In addition
to entering new businesses, FFBL acquired maximum number of shares i.e. 271,884 thousand
shares which makes 21.57% holding of FFBL on Askari bank.
Companys corporate strategy basically is to increase customer satisfaction and build and
maintain long term relationship with them. The strategy is based on profitable and sustainable
growth. It is a companys policy to do add value in the society and contribute towards the
countrys economy. For this reason FFBL has adopted the strategy of diversification.
FFBL has long term investment in various businesses as a policy to diversify and reduce business
risk. FFBL has shares of following companies:

PAK-Moroc Phosphare
Fauji Cement Company Limited
Foundation Wind energy
Askari Bank Limited
Arabian Sea Country Club Limited

PAK -Moroc Phosphare:


FFBL has a joint venture with PMP. Furthermore this investment has been recorded in the long
term investment of non-current asset section of FFBL balance sheet. This investment has been
recorded by adopting as an equity method which is permitted by International Accounting
standards
FFBL has 25% interest in this joint venture. At the moment there is no legal restriction on
dividends by Pak-Moroc Phosphare but in future if it does then equity will be converted into
debt, Hence PAK-Moroc Phosphare would need to pay interest on this debt.
Fauji Cement Company Limited:
FFBL holds less than 1.35% in FCC.
Foundation Wind Energy:
FEW are in the final phase of setting up a wind power plant of 49.5MW. Estimated cost of two
such power plants is 136million and 135million U.S. dollars. FFBL has purchased its share and
has a shareholding of 35% in both power plants project.
Askari Bank Limited:
Askari bank limited is an associate company of FFBL and the company has 21.57% of
shareholding in Askari bank.

Critical Evaluation of Mission Statement


Following is the mission statement of Fauji Fertilizers Bin Qasim Limited.
Fauji Fertilizers Bin Qasim Limited is committed to remain amongst the best companies by
maintaining the spirit of Excellence through sustained growth rate in all activities, competitive
price, quality fertilizer and providing safe and conductive working environment for the
employees

There are four main components of mission statement that need to be highlighted

First component is about the company aim to be one of the best companies operating in
the market. There are numerous companies working along FFBL in same industry for
example Engro and hence it is one of the objectives of FFBL to be best of them. Compete

with them and emerge as winner


Second component is about the company aim to grow consistently. Successful companies
have a characteristic of growing in terms of Assets, Revenues, and Profits and even with
number of products offering to customer. FFBL wants to be a company that wants to

continuously grow and its recent entry in dairy and food industry is an example of it.
Third component is to charge customer competitive prices and at the same time produce
quality products. In order to increase or maintain the market share, company do realizes
that it needs to offer customer something special and at a good affordable price. Company
is continuously striving to reduce its cost by bringing efficiency within its department in

order to compete in the market.


Last component is caring for the employees. Company realizes its most important asset is
human capital and hence it strives to give them good working condition where they can
work easily and produce quality products. Recently operational management demanded
Air Condition transport. Company keeping in view its mission statement accepted their
request.

Core Values
FFBL has 6 core values. They include integrity of profession, inducing an environment which is
winning, actions accountability, innovations along with creativity, corporate social responsibility
and result focussed approach.

Strategic Goals and Analysis


The strategic goals of FFBL are given below:
1.
2.
3.
4.

FFBL aims that Pakistans agricultural yield is boosted


FFBL aims to be the leader in the fertilizer business
To become an environment friendly and socially responsible corporate citizen
Business growth and diversification opportunities to be created by FFBL

5.
6.
7.
8.

FFBL strives in manufacturing the topmost quality products


Excellence is to be maintained in managerial, technological and operational fields
Expansion of sales and maximization of productivity
Cost should be kept minimum by elimination of resources duplication

The goal of boosting the agricultural yield of the company is kept in well consideration by
FFBL. If we look at the following table taken from Pakistan Bureau of Statistics, we can see that
the production of important crops has increased over the years. This is mainly due to increase in
efficiency of inputs. FFBL has provided best quality fertilizers over the years since its inception,
thus boosting the agricultural yield:

FFBL has strived hard to lead the fertilizer industry of Pakistan. It is among the top 25 best
performing companies of Pakistan. Karachi Stock Exchanges list of top 25 best companies saw
FFBL as number 5 in 2013. There are a total of 580 companies listed on KSE. Other awards that
have been awarded to FFBL include CSR awards, bronze medal from SAP and best corporate
reporting awards. In addition to these awards, FFBL has also achieved sustained growth over the
years and is among very few companies who have not incurred a loss since inception. FFBL is
the only company in Pakistan that produces DAP, therefore it has a very big edge over its
competitors.
In order to become a socially responsible and environmental friendly citizen, FFBL has taken the
following measures:

1. FFBL is achieved certification for the EMS of ISO i.e. ISO 14001:2004
2. FFBL is the only fertilizer manufacturing company in the country that has chosen a
cooling water treatment program based on Phosphate. It is an environmental friendly
system.
3. The organization has continuously maintained

NEQS, which stands for National

Environmental Quality Standards.


4. FFBL regularly cognizes its employees and staff about the environmental concerns
5. FFBL rigorously monitors and controls the harmful discharges and emissions from its
plant. Monthly reports of analysis of all effluents are submitted to Sindh Environmental
Protection Agency (SEPA)
6. FFBL is also a part of SMART program of SEPA. SMART stands for self-monitoring and
evaluation tool
7. Environmental samples are tested and analyses by third party (M/s SGS Lab) and not by
the company itself (this lab is a certified laboratory by SEPA)
8. New technological advancements are made in order to effectively improve monitoring
and control of environment
9. Trees, plants and flowers are grown from time to time by FFBL
As explained in the businesses and policies section of this report, FFBL is diversifying into new
business areas. In the marketing section of our functional analysis of FFBL, we have analysed
how FFBL is producing the best quality products as well as their packaging.
Sales over the years have both increased and decreased and have seen a mixed growth. The net
sales of FFBL in 2010 were Rs 43,256,712. In 2011 they grew to Rs 55,868,834, in 2012 they
declined to Rs 47,911,164, in 2013 they again grew to Rs 54,455,168 and in 2014 they reduced
to Rs 49,445,256. There are a number of factors which explain why sales have reduced or
increased. All these have been mentioned in detail in the financial part of this report and also in
the marketing portion.

FFBL SALES
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0
2010

2011

2012

2013

2014

Productivity of FFBL has also been increased. This will be explained below:
In the recent past FFBL has taken on a number of expansion and productivity increasing projects:
1. An Ammonia expansion project was undertaken and completed in 2007. This expansion
project was successful because it achieved the technical parameters of improving plant
reliability and increased efficiency. Its value was of 50 Million Euros. The objective of
this project was to enhance the capacity by 24%. This means it was increased to 1570
tons per day as compared to 1270 tons per day in the past.
2. A DAP expansion project was undertaken and completed in 2008. It was also a successful
project. The DAP expansion project enhanced the plants capacity by 50% i.e. to 670
thousand tons from a previous of 445 thousand tons. The total value of this project was
33 Million US Dollars. Plant reliability and efficiency were improved and plant effluents
and emissions were considerably reduced.
3. In order to ensure a smooth and uninterrupted supply of Phosphoric Acid, a project
known as PMP Morocco was initiated and completed in 2008. The total value of the
project was 250 Million US Dollars. The plant now produces P-Acid and its total
designed capacity is 375 thousand tons. However the requirement of FFBL of P-Acid is
only 325 thousand tons. FFBL has 25% share in PMP, FFC has 12.5% share, FF has
12.5% and OCP has 50%.

Currently FFBL is expanding into new fields and business arenas. In our report, specifically the
SWOT analysis we have mentioned the possible opportunities and threats. We have diligently
devised remedial actions for the weaknesses of the company.

Main Difficulties of FFBL


Some of the main issues that are being faced by FFBL are as follows:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Gas curtailment
Investments payback period
Rising transportation costs
Less short term investments
DAP production management
Askari Bank disinvestment
Lack of lower employees awareness and knowledge about new implemented decisions
Even after the implementation of SAP, paper system is still practiced.
Lack of job satisfaction

Remedial Measures, Solutions and Justifications


1.
2.
3.
4.
5.
6.

FFBL is finding other sources instead of Natural Gas to increase production


Dividends from Askari Bank were declared in 2014
Payback from wind energy projects will be in 2015
Payback and profits from meat and food projects will come in 2016-2017
Increase in DAP production caused fuel costs and axel load tax by NHA to increase
The diversification strategy of FFBL is committed towards long term investments and

there returns rather than short term investments.


7. DAP production increased because of the plant operating and full capacity and high load.
Also average maintenance times of the DAP plant were decreased. The company shifted
the available gas load towards DAP production from Urea production. This caused Urea
production to decline.
8. Askari bank has a possible potential to grow and get successful. So disinvestment in the
bank can have bad results.
9. The newly implemented or the about to be implemented decisions should be thoroughly
dicussed from top to bottom. This includes all the concerned employees from top
management to lower staff.
10. Paper system can be minimized and eventually eliminated by full utilization of SAP.
11. Job satisfaction can be increased through a number of intrinsic as well as extrinsic
motivators. Constant job satisfaction surveys should be conducted.

Conclusion
In the part two of our Final Year Project of Strategic Analysis of Fauji Fertilizer Bin Qasim
Limited, we have carefully and thoroughly conducted the external, internal and functional
analysis of FFBL. Performance review along with identification and measures to reduce key
issues and problems have been presented. Data for these purposes have been gathered through
interviews of company personnel, FFBLs annual reports, economic survey of government of
Pakistan, newspapers, press releases and relevant websites. This report will be shared with the
Fauji Fertilizer Bin Qasim Limited in order to incorporate their feedback.