Historical Perspective Fauji Fertiliser Bin Qasim Limited Plant is a Granular Urea and Di-Ammonium Phosphate (DAP) fertilisers manufacturing complex, built at a cost of US $468 Million and located at port Bin Qasim in Karachi, with Head Office at Defence Housing AuthorityPhase-II, Islamabad.
The company was formally listed with stock exchanges in May 1996 and commercial production commenced with effect from January 2000. Profitability is constantly improving since and 2011 happened to be most profitable year of the company. One of the milestones in the success of FFBL is its accreditation of ISO certifications, which was achieved in Mar 2006 for both the Head Office and Plantsite.
The current ownership is structured as under:
-- Fauji Fertiliser Company: 49.88%
-- Fauji Foundation: 18.29%
-- Financial institutions and the general public: 31.83%
-- Total Shares: 934,110,000
-- Authorised Capital: Rs 11,000,000,000
-- Paid up Capital: Rs 9,341,100,000
-- FFBL is associated with following industrial associations and trade bodies;
-- Rawalpindi Chamber of Commerce
-- International Fertiliser Association
Vision To be a premier organisation focused on Quality and growth, leading to enhanced stakeholders' value.
Our Distinctions
-- FFBL is the only producer of DAP and Urea (Granular) thus making pivotalcontributions towards agricultural growth of the country.
-- FFBL holds 41% of market shares in case of DAP, and can produce 17% of Urea market share.
-- We are recognised and trusted for our brand "SONA" among the entire agriculture community.
-- We are part of largest fertiliser marketing set-up in Pakistan encompassing 14 sales regions, 66 sales districts, a strong dealership network and extensive warehousing set-up.
-- 13.6million safe man hours are indicative of our safety concerns.
Core Values
-- Professional Integrity
-- Winning working environment
-- Accountability
-- Creativity and Innovation
-- Corporate Social Responsibility
-- Focus on result
Performance & Production FFBL fertiliser complex is state of the art manufacturing facility with advanced Distributed Control System for safe and efficient operation. The phosphoric acid being raw material for DAP plant is imported from Morocco and initially stored in tanks at Port Qasim.
Design capacity viz-a-viz actual production of Plants is as under:
-- Utilities & Storage
-- Human Capital
-- Workforce comprises of around 1,500 people with 200 engineers, 700 technicians with variety of experience, in addition to experts in the field of finance, supply chain, human capital management, information technology etc.
-- Plant has its own training department which provides technical training on-site along with outsourcing to specialists inside and outside the country.
-- Our employees are highly dedicated and motivated indigenous team completed projects in time without any foreign experts.
Accreditation of International Standards
FFBL has acquired following certifications in 2006:
-- ISO 9001: Quality Control
-- ISO 14001: Environmental Management
-- OHSAS 18001: Occupational Health and Safety
FFBL Tower. FFBL has constructed 11 storeys Corporate Tower in DHA Phase II, Islamabad which is fully operational,housing all its departments.The quality of the architecture is emphasised by a number of features. Tower reflects the company's philosophy that its employees are its major capital, and its aversion to the usual hierarchical structures. It contains state of the art features in Security, IT and Safety measures. This beautifully constructed building in many ways is a piece of art. The convex façade with the small carefully calibrated square holes allows for sun to penetrate the building and surround it with natural light. The double glazed large windows give us a spectacular panoramic view of the surroundings. Following are the salient features:-
-- Centrally air-conditioned building through dual fired absorption chillers.
-- Backup standby generators.
-- Intelligent fire detection and protection system.
-- CCTV security surveillance.
-- Public address and VOIP system.
-- Conducive work environment.
-- Building covered with plants and greenery which gives relaxed and homely feel.
-- Building management system for central monitoring and control of services.
-- 3 high speed elevators + 1 special purpose lift.
-- Common facilities:-
-- Multipurpose Hall.
-- Medical Center.
-- Training Institute.
-- Executive and Staff Dining Areas.
-- Conference and Meeting Rooms.
-- Gymnasium.
-- Terraces on each floor for soak in the view, catch a fresh breath of air or even have a quiet smoke.
Honors.In recognition of FFBL performance, followingprestigious honours were awarded to the Company:-
-- Silver Medal of SAP Support Operation for the Year 2015 andBronze Medal of the "SAP Customer Center of Expertise - 2014by 'SAP Software Corporation' in category of Support Operations.
-- 12th Annual Environment Excellence Award 2015 by National Forum for Environment and Health (NFEH)
-- Best Corporate Report Award - 2011, 2012,2013& 2014 by 'ICAP' and 'ICMAP'.
-- KSE Top 25 Companies Award2010, 2011, 2012&2013 by 'Karachi Stock Exchange (Guarantee) Limited'.
-- Corporate Social Responsibility Awards 2012, 2013, 2014 and 2015 by 'National Forum for Environment & Health'.
-- Corporate Social Responsibility Award 2015 by 'The Professional Network & EBU Ethical'.
-- Best CEO Awardfor the Year 2011-12 by 'Mass Human Resource Services' in chemical sector.
-- RCCI Platinum Award for the year 2012 by 'Rawalpindi Chamber of Commerce'.
-- Certificate of Excellence by Fire Protection Association of Pakistan (FPAP) and National Forum for Environment & Health (NFEH).
PAKISTAN - MOROCCOJOINT VENTURE
Pakistan Maroc Phosphore S.A, (PMP) Morocco - A Joint Venture
Phosphoric Acid, being the main raw material for DAP production is imported from Morocco. To ensure the continuous supply of this strategic raw material to runDAP plant at Karachi, Office Cherifien des Phosphates (OCP), Morocco, the biggest industrial group of Kingdom of Morocco and the Fauji Group(Fauji Foundation, FFC and FFBL) entered into a joint venture for its uninterrupted supply. The company, named as Pakistan Maroc Phosphore S.A (PMP) costing 2.3billion Moroccan Dirhams($US 250 million) was established at Morocco. The project was completed in record time and within the budget. Commercial production and shipment to FFBL started in April and May 2008 respectively. Plant is designed to produce 375,000 MT per year of Phosphoric acid thus meeting the total requirement of DAP plant of FFBL.
The Project is one of its kinds with strategic significance of involving two of the largest business groups of two brotherly Muslim nations ie OCP Group of MoroccoandFauji Group of Pakistan. Its formal inauguration was performed by His Majesty the King ofMorocco in 2008 and the first shipment carrying 18,815 MT of Phosphoric Acid reached Pakistan on 31 May 2008.
Significant benefits associated with this project are: Ensuring uninterrupted supply of 375,000 metric tons of phosphoric acid per annum as raw material, which in turn contributed for economic growth of Pakistan and has enhancedthe profit of FFBL.
This first foreign investment by the Fauji Group with Morocco has added to the prestige of the Country.
Performance Highlights.Year 2015 ended with an ever high-test profit of 321 Million MAD ($US 33 Million) against the budgeted profit of 38 Million MAD ($US 4 Million), based on Moroccan Standards of Financial Reportingwhich is mainly attributed to:-
-- Higher Production of Phos Acid
-- Higher sales of Phos Acid.
-- Exchange gain.
At the end of year 2015, accumulated profit was 101 Million MAD (11% of equity).
DIVERSIFICATION. FFBL has recently diversified into following various business projects:
-- FFBL Power Company Limited. To maintain the business sustainability, Coal Power Plant (CPP) Projecthaving capacity of power generation of 118 MW is being set-up in with cost of $US 265 Million (+10%) with the objectives of supplyingpower &steam to FFBL and use the saved natural gas for enhanced fertiliser production, greater operational flexibility for FFBL and power selling up-to 60 MW. Presently, project is in engineering phase. Expected Commercial Operation Date (COD) is December 2016.
-- Fauji Meat Limited (FML). With a vision to be the leading local & international Halal meat processing company, FML was incorporated in 2013 as a public limited company. FML has set-up a state-of-the-art Halal abattoir and meat processing facility at Port Bin Qasim in Karachi with an estimated project cost of 60 million USD. The facility is spread over 47 acres of land including the plant and 3 day animal holding area. Daily production capacity of the plant is 100 tons (85 tons of Beef & 15 tons of Mutton) in both Frozen & Chilled categories for worldwide export. The plant is designed to meet the objectives of processing high quality meat (Cattle, Buffalo, Sheep& Goat) and Value added products and By-products. Abattoir offers meat products in VACUUM packaging.
-- Project has achieved its Commercial Operation with effect from 2 April 2016 and has achieved following standards:
-- ISO 9001 Certification.
-- Halal Certification.
-- JAKIM Certifications.
-- HACCP Recommendations Obtained.
-- FSMS 22001 Recommendations Obtained.
-- Fauji Foods Limited (FFL) formerly Noon Pakistan Limited. In order to compete in current dairy industry, the Management decided to enter into Dairy business through a running Dairy entity; NPL with "Nurpur" a very strong brand. Presently FFBL together with Fauji Foundation have obtained controlling interest with 51% voting and 51% non-voting shares of Noon Pakistan Limited on 04 September, 2015. The acquisition will be beneficial for the Company as well as for all stake holders. The Company is now going for major expansion in its operations, which will reflect a better financial result in future.
-- FFBL Foods Limited formerly Fauji Foods Limited. The Company was established to venture into viable opportunities in Food & Dairy sectors.
Investments
-- Foundation Wind Energy I & II The Company has invested Rs 2.348 billion in two wind power plants; Foundation Wind Energy- I Limited (formerly Beacon Energy Limited) and Foundation Wind Energy- II (Private) Limited (formerly Green Power Private Limited) of 49.5 MW each. Total estimated cost of each project is $US 130 million. The projects have a "Debt to Equity" ratio of 75:25. Projects are located in Thatta District at sea shore.Land area of FWE-I & II is 1210 and 1656 acres respectively.The Company holds 35% shareholding in each project. Both the Projects have achieved Commercial Operation Date (COD) and are operating satisfactorily.
-- Askari Bank Limited (AKBL). As part of investment diversification, FFBL invested in Askari Bank Limited in 2013 and acquired 271,884 thousands shares representing 21.57% holding. The new management of AKBL initiated a major realignment strategy and business process re-engineering and is in the process of implementing state of art IT core banking system to improve its operational efficiency. The investment offers a unique opportunity for Fauji Group to create an annuity business of immense profit which will enhance the returns to shareholders in the long run.
CORPORATE SOCIAL RESPONSIBILITY.
Sustainable and responsible social development has remained our primary concern since inception. FFBL has distinguished itself as a good neighbour. Apart from consistently delivering outstanding returns to our shareholders, we strive for social and economic development of the communities surrounding usand to improve our environments.Our social responsibilities includes:-
-- FFBL Elementary School.
-- Water Filtration Plants.
-- Health Clinic.
-- Social Mobilisation.
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Manufacturing Design Production MT
Plants /Year
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Original Existing
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Ammonia Bechtel-1965
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Vintage 419,100 518,100
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Urea Stemicarbon 551,100 633,600
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DAP AZF/Jacobs 421,200 695,760
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Power 44 megawatt
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generation (02 GE Gas
capacity turbines of
22 MW each)
Bulk storage
capacity 70 KT
Phosphoric
Acid storage
capacity 45 KT
11 bagging lines - 06 for Urea & 05 for DAP
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Financial Performance
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(Rupees Million)
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Description 2009 2010 2011 2012 2013 2014 2015
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Sales 36,725 43,257 55,869 47,911 54,455 49,445 52,184
Gross profit 9,665 13,463 20,116 11,461 14,513 11,092 7,214
Profit before tax 5,808 9,686 16,170 6,473 8,362 5,780 5,384
Taxation 2,024 3,172 5,403 2,132 2,749 1,764 1,322
Profit after tax 3,784 6,514 10,767 4,341 5,613 4,016 4,062
Earnings per share-
(Rupees) 4.05 6.97 11.53 4.65 6.21 4.30 4.35
Dividend per share-
(Rupees) 4.00 6.55 10.00 4.50 5.00 4.00 3.80
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Assets & Liabilities
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Description 2009 2010 2011 2012 2013 2014 2015
Total assets 36,225 35,336 40,176 40,704 36,220 46,249 59,407
Shareholders' equity 10,660 12,210 13,636 12,555 12,843 13,072 14,281
Total liabilities 25,565 23,126 26,540 28,149 23,374 33,178 45,126
Return on equity 35.50% 53.35% 78.96% 34.58% 45.15% 30.73% 28.44%
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