Pest Analysis of Engro Fertilizers

School Of Management (SOM)

Forman Christian College (A Chartered University)

PEST analysis to identify the current trends in marketing and its effects on Engro Fertilizers

Submitted by: Submitted To:

Omair Hassan Bodla (13-28109) Mrs. Syma Ahmed

Hassan Shahid (13-28121)

Saad Ahmed (13-28112)

PEST ANALYSIS OF ENGRO FERTILIZERS

1. The Political Trend

Government has introduced following major incentives through the latest Fertilizer Policy promulgated by the National Fertilizer Development Centre (NFDC) in year 2001:

* To fulfill local demand of fertilizers at affordable prices, Government is providing subsidy on production and import of fertilizers.

* Government is providing concessionary feed stock gas to the fertilizer plants for production of urea.

* Custom duty on import of rock phosphate and phosphorous by the manufacturers for production of fertilizer is waived under the Fertilizer Policy (2001).

* Various tax remissions / relaxations have been offered under the new Fertilizer Policy by the Government.

* Gas price has been fixed for ten (10) years for new investments.

Keeping in view the incentives given under the Fertilizer Policy (2001), M/s Engro Fertilizers decided to establish a new ‘single-train’ urea plant worth of $1.1 billion (Signalfire). Supply of natural gas (methane), the basic raw material for production of Urea fertilizer, is facing severe shortage in the country and its availability for industries is further reduced due to the political decision by the Government in wake of the forthcoming general elections to cut down the gas supply to industries in order to satisfy the domestic consumers. Since its completion in year 2010, Engro’s new plant has never received the gas supplies as per its quota in line...