our

businesses

o Engro Fertilizers Limited

o Engro Foods Limited
o Engro Polymer & Chemicals Limited
o Engro Powergen Limited
o Engro EXIMP Private Limited
o Engro Vopak Terminal Limited
o Avanceon Limited

engro

foods

limited

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Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in
2004. Using dairy as a stepping stone to enter into the food business, the Company has
established state-of-the-art processing units in Sukkur and Sahiwal, along with an ice
cream production facility in Sahiwal.

Top quality brands like Olper’s, Olwell, Tarang, Omore and Owsum have been
successfully launched under the helm of Company’s dairy products. To support these
brands and their highest standards of quality, Engro Foods has invested heavily in milk
processing and milk collection infrastructure.

After the success of our dairy products, to which our customers testify, Engro Foods now
plans to venture beyond the dairy sector. In this pursuit, grain and fruit markets have been
analysed in great detail.

Engro Foods’ vision is “Elevating Consumer Delight Worldwide” and the Company aims
to generate a significant portion of its revenue from foreign operations.

• Fact Sheet

fact

heet –

engro

foods

limited

Location

Head Office
Engro Foods Limited
6th Floor, Harbor Front Building
Marine Drive, Block 4, Clifton
Karachi, Pakistan

At A Glance (as of December 2009)

• Total Employees: 928

• Sales Revenue: Rs. 14,900 Million
• Investments: Rs. 153 Million
• Profit After Tax: Rs. (434) Million

Stock Ticker

Engro Foods Limited is a fully owned Subsidiary of Engro Corporation and is not traded
on the stock market.

Communites

We stand committed to sustainable business growth and ensure the safety of our people,
assets and community in which we operate. Engro Foods efforts are directed towards
poverty alleviation, environmental safety, and support for livestock sector. Some specific
initiatives include:

• Community Empowerment through Livestock Development and Credit

(CELDAC) initiative in partnership with UNDP. Under CELDAC, over 1200 lady
livestock workers have been trained, contributing significantly to the social and
economic empowerment of women in rural areas.
• Developing and implementing the concept of Dairy Hub in district Sahiwal, in
partnership with TetraPak. It provides concentrated training and facilities on
animal health, nutrition and fertility, as well as chillers and logistical arrangement,
to increase milk production capacity in a cluster of 20 villages.

Companies

• Engro Foods Supply Chain (Private) Limited

Executive Officers

Sarfaraz Ahmed Rehman – Chief Executive Officer

 foods

launches

first

dairy

hub

November 25, 2009

Business Recorder - Engro Foods Limited, in collaboration with Tetra Pak Pakistan, the
world’s leading food processing and packaging solutions company, on Tuesday launched
Pakistan’s first Dairy Hub which is located at Kassowal, in District Sahiwal. The basic
objective of this pioneering initiative is to help the farmers in improving productivity and
efficiency.
Dairy Hub – a Community Dairy Development Programme (CDDP) – is a one-herd
concept that organises and develops smallholder farmers’ milk production. Dairy hub is
one viable solution to meet the growing demands of the dairy industry besides providing
agri-services and trainings and help farmers by educating them on animals feeding and
diseases.

This would lead to improved quality and quantity of raw milk, improved market access,
an efficient value chain, enhanced smallholder competitiveness, improved livelihoods in
subsistence agriculture, increased employment in agriculture and enhanced skills of
farmers. The Dairy Hub CDDP has enlisted the support of several key players in the dairy
industry besides the Livestock and Dairy Development Board (LDDB).

Engro Fertilizers Limited, a wholly owned Engro subsidiary, is a premier fertilizer

manufacturing and marketing company with products that focus on balanced crop
nutrition and increased yield. The company markets primary and secondary fertilizers
like Engro Urea, Engro DAP, Engro Zorawar, Engro Zarkhez and Zingro.

Engro Fertilizers has successfully developed a loyal customer base all across Pakistan,
not only by providing farmers with quality fertilizers, but also through extensive market
development activities. A premier brand and nationwide presence of the company ensures
sellout production. Additionally, the company sells phosphate fertilizers for balanced
fertility and improved farm yields. Engro’s share of Pakistan’s phosphates market mirrors
or exceeds its urea market share.

The Company’s expansion plans include the world’s largest single train urea complex,
which is being set up with an estimated cost of US$ 1.05 billion, and is on track for
completion by mid 2010.
 From esso to engro

In 1957, the search for oil by Pak Stanvac, an Esso/Mobil joint venture led to the
discovery of the Mari Gas field near Daharki – a small, remote area in Upper Sindh
province at the time. Esso proposed the establishment of a urea plant in that area which
led to a fertilizer plant agreement signed in 1964. In the subsequent year, Esso Pakistan
Fertilizer Company Limited was incorporated, with 75% of the shares owned by Esso and
25% by the general public.

The construction of a urea plant commenced at Daharki in 1966 and production began in
1968. At US $43 million with an annual production capacity of 173,000 tons, it was the
single largest foreign investment by a multinational corporation in Pakistan at the time.

A full-fledged marketing organization was established which undertook agronomic

programs to educate the farmers of Pakistan. As the nation’s first fertilizer brand, Engro
(then Esso) helped modernize traditional farming practices to boost farm yields, directly
impacting the quality of life not only for farmers and their families, but for the nation at
large. As a result of these efforts, consumption of fertilizers increased in Pakistan, paving
the way for the Company’s branded urea called “Engro”, an acronym for “Energy for
Growth”.

As part of an international name change program, Esso became Exxon in 1978 and the
Company was renamed Exxon Chemical Pakistan Limited. The Company continued to
prosper as it relentlessly pursued productivity gains and strived to attain professional
excellence.

In 1991, Exxon decided to divest its fertilizer business on a global basis. The employees
of Exxon Chemical Pakistan Limited, in partnership with leading international and local
financial institutions, bought out Exxon’s 75% equity. This was at the time and perhaps
still is the most successful employee buy-out in the corporate history of Pakistan.
Renamed as Engro Chemical Pakistan Limited, the Company has gone from strength to
strength, reflected in its consistent financial performance, growth of the core fertilizer
business, and diversification into other businesses.

Along the way, a major milestone in plant capacity upgrade coincided with the employee
led buy-out; innovatively optimizing our resources, Engro relocated fertilizer
manufacturing plants from the UK and US to its Daharki plant site – an international first.
Engro Chemical Pakistan Limited then started a journey of venturing into other sectors
including foods, energy, industrial control and automation, PVC resin manufacturing and
marketing, and chemical terminal and storage.

In 2009 plans were announced of demerging the fertilizer business into an independent
operating company. The expansion and growth in the company necessitated a change in
the way the company operated and conducted business. Keeping in view the operations of
multi category businesses, expansion strategy and growth vision, the management
decided that the various businesses would be better served if the Company was converted
to a holding company. As a result it was decided to demerge the fertilizer business and
establish a holding company structure to manage the affairs of various businesses.

Engro Fertilizers Limited was incorporated in June 2009 to manage the fertilizer business
post demerger. The demerger required the approval of the High Court of Sindh, which
was granted on December 9, 2009 after obtaining the requisite approvals from the
creditors and shareholders of the Company. The demerger became effective from January
1, 2010. Consequently, all fertilizer business assets and liabilities have been transferred to
Engro Fertilizers Limited against the issue of shares to the Company.

To reflect the change in the scope of mandate and scale of operations, Engro Chemical
Pakistan Limited has been renamed as ‘Engro Corporation Limited’ with effect from
January 1, 2010. Engro Corp, as the holding company is responsible for the long term
vision of the company, overseeing the performance of the subsidiaries and affiliates,
allocation of capital, management of talent, leadership development, HR guiding policies,
leadership role in public relations and CSR activities, control structures, legal and IT
support.

Engro Corp will maintain a lean structure with a focused scope, allowing maximum
empowerment to the subsidiaries and affiliates to drive the operations of their respective
organizations.