Sowt Analysis

Introduction

FFC occupies a special niche in the industrial and agricultural development of the country with a successful track record of excellence business performance. The company moved from one high level of achievement to other establishing records year after year and is now ranked as a top tier player in the fertilizer industry with highest production capacity and market participation.

The company is a public company incorporated in Pakistan under the Companies Act, 1913, (now the Companies Ordinance, 1984 and itssharesstock exchanges in Pakistan. The principal activity of the company is manufacturing, purchasing and marketing of fertilizer, including investment in other fertilizer manufacturing operations

Pakistan’s economy is agro-based; however our cultivable land is deficient in nutrient contents. This deficiency can only be overcome through the balanced use of fertilizer. Presently, there are ten manufacturing units in Pakistan. Out of these, four units are located in the public sector and six are operating in the private sector. The province-wide distribution of units confirms that 5 units are located in Punjab, 3 in Sindh and 2 in the NWFP.

Fertilizer production is concentrated in nitrogenous fertilizers, which comprises 85% of all fertilizers produced in the country. Although other types of fertilizers are also produced in Pakistan, the bulk of whose demand is imported. The main reason for this concentration on nitrogenous fertilizers is that its main raw material i.e. natural gas is cheaply available in the country. The raw material for other fertilizers such as potassium and phosphate has to be imported.

The local fertilizer companies meet almost 80% of Pakistan’s Fertilizer requirement. The total installed capacity is over 5,124 million tones /annum. It mainly comprises of 4,180 million tons for urea and remaining for NP, DAP, CAN and SSP.

Background of the organization

With a vision to acquire self - sufficiency in fertilizer...