Documente Academic
Documente Profesional
Documente Cultură
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:
Page 1
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.
Page 2
Board of Directors
Lt Gen Khalid Nawaz Khan,
HI (M) (Retired)
Chairman
Non-Executive Director
HI (M) (Retired)
Non-Executive Director
HI (M) (Retired)
Non-Executive Director
Non-Executive Director
Non-Executive Director
SI (M) (Retired)
Non-Executive Director
Non-Executive Director
Independent Director
Independent Director
Independent Director
Independent Director
Page 3
Company Secretary
Brig Sher Shah, SI (M) (Retd)
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.
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.
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.
Management Objectives
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.
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.
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
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.
Head of Department
Mrs. Nabila
Senior SPO
SPO
Number of staff
Total employees
Objectives
4
5
Total regions
Lahore
Faisalabad
Sahiwal
Peshawar
D.I Khan
Functions
Regional Manager
Sales Manager
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
Distribution department
General Manager Marketing
Senior Distribution and warehousing Manager
Executive Distribution
Distribution Officer
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
Warehousing manager
Warehousing manager
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
Types of warehouses
Strategic warehouses
Temporary warehouses
Permanent warehouses
Purely temporary warehouses
Administration Department
General Manager Marketing
Administration manager
Administration executive
Company maintained
Company assisted cars/jeeps
Pool transport
Administration manager
Senior executive HR
HR Officer-I
Mr. Qamar
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
Administration Manager
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.
IT Department
General Manager Marketing
Administration manager
Senior executive IT
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
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
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.
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
Potato Brochure
Vegetable Brochure
Mango Brochure
Citrus Brochure
Banana Brochure
Apple Brochure
Guava Brochure
Boron 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.
(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,
Sahiwal
Hassan Abdal
Multan
Bahawalpur
Near
Ibn-e-Sena
Southern Bypass, Multan
Limited
Centre,
Lahore
36365119
408
Abbott
Hassan
bad
Road,
Abdal
Hospital,Near
Karam
Police
Abad,
Station,
Ditt.
Khairpur.
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
2500
4280
Deferred Taxation
4574
4078
7074
8358
37904
21854
30
22
CURRENT LIABILITIES
Trade and other payables
Interest and mark - up accrued
Short term borrowings
11603
7000
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
1174
1362
35829
26328
86562
67829
Horizontal Analysis
2014
Balance
Sheet
2014vs2013
%
2013
EQUITY
Share Capital
12722
12722
Capital Reserve
Revenue Reserve
160
160
12788
4.23
12269
25670
2.06
25151
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
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
26
-44.68
47
1072
35.77
790
27433
44.69
18960
1174
-13.8
1362
35829
36.29
26328
86562
27.62
67829
Other receivables
Total assets
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
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
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
26
0.03
47
0.07
1072
1.24
790
1.16
27433
31.69
18960
27.95
1174
1.96
1362
2.01
35829
41.45
26328
38.82
86562
100
67829
100
Total assets
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
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
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.
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 (%)
Moisture (%)
< 0.30
Biuret (%)
0.80 ~ 0.87
Fines (%)
< 1.0
Granular
Free Flowing Granules
46
< 0.30
0.80 ~ 0.87
Dust Free
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
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
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
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
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
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
Weaknesses
Opportunities
Threats
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.