Analyzing the Organizational Structure

of Engro Corporation

Submitted to; Dr. Adnan Sarwar

Submitted by; Miraj un Nisa (2024-bbae-53)

Amna Siddique (2024-bbae-54)

Iraj Nasir (2024-bbae-45)

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Acknowledgement
I would like to extend my sincere gratitude to Sir Adnan, whose guidance and
support were instrumental in the successful completion of this report. His insights
and encouragement have been invaluable throughout this project.
I am also profoundly thankful to Mr. Zeshan Taj Khan, Chief People Officer at Engro
Corporation, for his visionary leadership in human resources. His commitment to
fostering a progressive and inclusive workplace culture at Engro has been a
significant inspiration for this analysis.
Additionally, I appreciate the comprehensive information provided by Engro
Corporation's official publications and digital resources, which served as
foundational references for this report.

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Abstract
This study examines the organizational structure of Engro Corporation Pakistan, a
diversified conglomerate operating in fertilizers, energy, foods, and petrochemicals. The
analysis focuses on how Engro's divisional organizational structure facilitates operational
efficiency, decision-making processes, and cross-functional coordination across its
diverse business units. The report evaluates the company's departmental hierarchies,
reporting mechanisms, and communication flows to assess their effectiveness in
achieving strategic objectives.

Key findings highlight Engro’s decentralized approach, which empowers division-

specific agility while maintaining corporate-level oversight. However, challenges such as
inter-divisional silos, resource allocation conflicts, and inconsistent communication are
identified as potential barriers to seamless operations. The study proposes strategic
recommendations, including enhanced cross-functional collaboration frameworks,
integrated digital systems, and leadership rotation programs, to optimize organizational
performance.

By addressing these structural inefficiencies, Engro can further strengthen its operational
synergy, improve decision-making coherence, and sustain its competitive advantage in
Pakistan’s dynamic industrial landscape. This report serves as a strategic guide for
refining organizational design to support Engro’s long-term growth ambitions.

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Executive Summary
Engro Corporation, a premier Pakistani conglomerate with diversified operations in
fertilizers, energy, food, and chemical sectors, employs a divisional organizational
structure to manage its business units. This structure provides operational autonomy to
divisions like Engro Fertilizers and Engro Foods while maintaining strategic alignment
with corporate objectives, enabling agile decision-making and market responsiveness.

Our analysis identifies three key structural challenges:

1. Operational silos creating inefficiencies in cross-divisional collaboration

2. Communication bottlenecks due to decentralized systems

3. Suboptimal resource allocation across business units

To enhance organizational effectiveness, we recommend:

1. Implementing cross-functional teams for strategic initiatives

2. Deploying integrated enterprise software solutions

3. Establishing a corporate coordination committee

These strategic interventions will improve operational synergy while preserving the
advantages of Engro's divisional structure, ultimately strengthening the corporation's
competitive position and supporting sustainable growth.

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Table of Contents
1. Company Overview ........................................................................................... Page 6

2. Organizational Structure Analysis ................................................................... Page 7

2.1 Company Details .......................................................................................... Page 7

2.2 Major Departments…………. .................................................................... Page 8

2.3 Organizational Structure Type ................................................................... Page 9

2.4 Reporting Hierarchy………………………………………………………. Page 10

2.5 Reporting Structure………………………………………………………. Page 12

3. Impact of Organizational Structure on Business Operations ...... ................ Page 13

3.1 Enhanced Coordination Across Divisions ................................................. Page 13

3.2 Decentralized Decision Making for Agility .............................................. Page 13

3.3 Streamlined Internal Communication ..................................................... Page 13

4. Challenges and Strategic Recommendations for Engro Corporation’s

Organizational
Structure............................................................................................................. Page 14

4.1 Key Challenges and Proposed Solution……………….…………...…. Page 14

4.1.2 Decision-making Conflicts Due to Decentralization………………... Page 15

4.1.3 Communication Barriers Between Divisions…………………….……Page15

4.1.4 Inconsistent Customer and Brand Experience……………...………. Page16

4.1.5 Limited Talent Mobility and Skill Development…………….………. Page16

5. Suggestions for Improvement ....................................................................... Page 15

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6. Work Contribution ........................................................................................ Page 18

7. Table of Figures ............................................................................................. Page 19

8. Bibliography .................................................................................................. Page 20

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1. Company Overview
Engro Corporation Limited is one of Pakistan’s most prominent and diversified
conglomerates, with a legacy spanning over five decades. Headquartered in Karachi,
Engro operates across critical sectors including fertilizers, energy, petrochemicals,
telecommunications infrastructure, food, and logistics. The company is a wholly owned
subsidiary of Engro Holdings Limited (formerly Dawood Hercules Corporation)
following a merger in January 2025. Founded in 1965 as Esso Pakistan Fertilizer
Company, Engro has evolved into a major force in the Pakistani economy. The
company's corporate head office is located in the Harbour Front Building, Clifton,
Karachi. The current CEO of Engro Corporation is Ahsan Zafar Syed, who assumed
leadership in April 2024, while Hussain Dawood serves as the Chairman of the Board. As
of 2023, Engro employs approximately 3,510 individuals across its various business
units. In terms of financial performance, Engro Corporation reported a revenue of PKR
482.5 billion in 2023, with a profit after tax of PKR 36.1 billion. Earnings per share stood
at PKR 38.60, and the company paid dividends worth PKR 42.4 billion. Engro’s total
assets were valued at PKR 802.5 billion, and it maintained a market capitalization of
PKR 158.3 billion as of December 31, 2023.

Engro’s business portfolio is organized into five major sectors:

1. Fertilizers: Engro Fertilizers Limited is a market leader in Pakistan's fertilizer industry

with a 35% market share. It operates a large urea plant in Daharki and manages the
Zarkhez NPK plant at Port Qasim, Karachi.

2. Energy and Infrastructure: Engro Energy Limited develops and operates power
projects such as the Thar Coal Power Project through Sindh Engro Coal Mining
Company (SECMC). Engro Elengy Terminal Limited runs Pakistan's first LNG import
terminal, and Engro Vopak Terminal Limited provides storage for chemicals and LPG in
collaboration with Royal Vopak.

3. Petrochemicals: Engro Polymer & Chemicals Limited operates Pakistan’s only

integrated chlorvinyl complex, producing PVC, caustic soda, and hydrogen peroxide.

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4. Telecommunications Infrastructure: Engro Enfrashare (Pvt) Limited manages over
3,950 telecom towers across Pakistan and has captured a 62% market share in the Build
to Suit segment

5. Food and Agriculture: FrieslandCampina Engro Pakistan Limited (FCEPL) produces

well known dairy brands like Olper's and Tarang. Engro Eximp Agriproducts (Pvt)
Limited focuses on rice processing and exports

Engro Corporation’s vision is "to be the premier Pakistani enterprise with a global reach,
passionately pursuing value creation for all stakeholders," and its mission is "unlocking
Pakistan’s potential through globally competitive, inclusive solutions to today’s most
pressing issues." Engro has received several prestigious awards, including Asiamoney’s
Outstanding Company Award 2022, recognition from the Pakistan Stock Exchange
among the Top 25 Companies, Through continuous innovation, strong governance, and
commitment to sustainability, Engro Corporation continues to play a vital role in
Pakistan’s industrial and economic development.

2. Organizational Structure Analysis

2.1 Company Details

Name: Engro Corporation Limited

Sector: Conglomerate (Fertilizers, Energy, Petrochemicals, Food, Telecom

Infrastructure)

Size: Large

Number of Employees: Approximately 2,742 (as of December 31, 2023)

Headquarters: Harbour Front Building, Clifton, Karachi, Pakistan

CEO: Ahsan Zafar Syed (since April 2024)

Chairman: Hussain Dawood

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2.2 Major Departments

Engro Corporation operates with a diverse set of departments to manage its multiple
businesses effectively. The major departments include:

Marketing: Responsible for creating marketing strategies, managing brand image, and
ensuring effective market reach for all business units.

Sales: Handles customer acquisition, relationship management, and revenue generation

across various sectors.

Production/Operations: Oversees manufacturing processes in fertilizers,

petrochemicals, and energy sectors, ensuring operational efficiency and quality control.

Finance: Manages financial planning, accounting, budgeting, and investor relations to

ensure the company’s financial stability.

Human Resources: Deals with recruitment, employee development, performance

management, and organizational culture initiatives.

Research & Development (R&D): Focuses on innovation, product development, and

process improvements to maintain competitive advantage.

Information Technology (IT): Supports all technological infrastructure, cybersecurity,

and digital transformation initiatives across the corporation.

Supply Chain Management: Handles procurement, inventory management, logistics,

and vendor management to ensure efficient supply chain operations.

Quality Assurance: Ensures compliance with industry standards, maintains product and
service quality, and oversees certifications.

Legal & Compliance: Provides legal support, manages corporate governance, and
ensures regulatory compliance in all operations.

Corporate Communications: Manages internal communication, media relations,

investor communication, and public relations strategies.

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Health, Safety & Environment (HSE): Implements policies and practices to maintain
workplace safety and environmental sustainability.

Milk Procurement (specific to Engro Foods): Oversees sourcing of raw milk and
maintaining quality standards for dairy production.

Management Information Systems (MIS): Maintains and upgrades business

information systems to support decision-making processes

2.3 Organizational Structure Type

Engro Corporation Limited follows a Divisional Organizational Structure, where the

company is organized into semiautonomous divisions based on different industries and
sectors it operates in, such as fertilizers, energy, petrochemicals, telecommunications
infrastructure, and food and agriculture. Each division operates as a separate entity with
its own leadership team responsible for managing operations, finances, and strategic
initiatives. This structure enables Engro to efficiently manage its diversified portfolio,
allowing each division to focus on sector specific challenges and opportunities.
Divisional heads report to the Chief Executive Officer of Engro Corporation, ensuring
alignment with the corporation's overall strategic vision. This organizational model
fosters agility, promotes specialization within each sector, enhances accountability, and
supports the company’s goal of sustainable growth across multiple industries.

CEO

Human
Marketing Finance Production R&D
Resource

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2.4 Reporting Hierarchy

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2.5 Reporting Structure
Each department at Engro Limited is headed by a departmental manager who reports
directly to the Chief Executive Officer (CEO). Within each department, team leaders are
responsible for overseeing specific units or projects and report to their respective
departmental heads. Supervisors manage the daily operations of their teams, ensuring that
tasks are completed efficiently and that performance standards are maintained. This
hierarchical structure promotes clear lines of communication, accountability, and
effective coordination across all levels of the organization, enabling Packages Limited to
operate with high efficiency and maintain its reputation for quality and innovation.

Figure 3: Reporting Hierarchy Chart

Top
Managent

Department
Heads
Team Leaders

Supervisors

Staff

This chart shows hierarchy of reporting from Top Management to Staff.

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3.Impact of Organizational Structure on Business Operations

3.1 Enhanced Coordination Across Divisions

Engro Corporation’s divisional organizational structure significantly improves

coordination by allowing each business unit (such as Engro Fertilizers, Engro Foods, and
Engro Energy) to operate with specialized autonomy while remaining aligned with the
corporation’s overarching strategy.

 Clear Reporting Lines: Each division has its own hierarchy, reducing ambiguity
in roles and responsibilities.

 Minimized Duplication: Resources and efforts are allocated efficiently,

avoiding overlap between divisions.

 Cross Functional Collaboration: Regular interdivisional meetings and shared

corporate objectives ensure cohesive operations.

However, the semi-independent nature of divisions may sometimes require additional

central oversight to maintain uniformity in policies and procedures.

3.2 Decentralized Decision Making for Agility

The divisional structure empowers division heads to make quick, informed decisions
tailored to their specific industry demands without excessive reliance on top
management.

 Faster Market Response: Enables rapid adjustments to sector specific

challenges, such as regulatory changes in fertilizers or shifting consumer trends
in food products.
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  Localized Expertise: Division leaders leverage deep industry knowledge to
drive innovation and efficiency.

 Potential Challenges: Occasionally, conflicting priorities between divisions

(e.g., resource allocation disputes) may necessitate corporate level mediation to
ensure strategic alignment.

3.3 Streamlined Internal Communication

Engro’s structure fosters strong communication within divisions but may face
interdivisional delays due to autonomy.

 Interdivision Efficiency: Teams under the same division collaborate seamlessly

with clear directives from divisional leadership.

 Standardized Protocols: Corporate wide communication frameworks (e.g.,

shared digital platforms, regular leadership syncope) help maintain transparency
and cohesion.

 Interdivision Barriers: Since divisions operate independently, cross functional

communication may sometimes lag, requiring structured collaboration initiatives
(e.g., cross division task forces)4. Challenges in Current Structure

4.0 Challenges and Strategic Recommendations for Engro Corporation’s

Organizational Structure

4.1 Key Challenges and Proposed Solutions

4.1.1 Interdivisional Coordination Gaps

Challenges:

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  Siloed operations lead to inefficiencies in cross functional collaboration.
 Duplication of efforts in procurement, marketing, and R&D across divisions.
 Slow response times when interdivisional cooperation is required.

Recommendations:

 Establish Cross Divisional Task Forces – Regular collaborative teams to

address shared objectives (e.g., sustainability, digital transformation).
 Centralize Support Functions – Implement shared services for HR, IT, and
procurement to reduce redundancy.
 Quarterly Corporate Strategy Syncs – Mandatory meetings for division heads
to align on corporate wide priorities.

4.1.2 Decision-making Conflicts Due to Decentralization

Challenges:

 Lack of uniform strategy across divisions, leading to conflicting priorities.

 Competition for resources (budget, talent, R&D investments) between business
units.
 Risk of inconsistent policies in areas like compliance and corporate governance.

Recommendations:

 Define Decision-making Boundaries – Clearly outline which decisions require

corporate approval versus divisional autonomy.
 Implement a Balanced Scorecard System – Align divisional KPIs with Engross
overall strategic objectives.
 Form a Corporate Resource Allocation Committee – A central body to
oversee major investments and resolve interdivisional disputes.

4.1.3 Communication Barriers Between Divisions

Challenges:

 Fragmented information flow due to independent divisional operations.

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  Different reporting systems causing delays in consolidated decision-making.
 Cultural silos, where divisions operate in isolation, reducing knowledge sharing.

Recommendations:

 Deploy an Integrated ERP System – Implement a unified digital platform (e.g.,

SAP, Oracle) for real-time data sharing.
 Mandate Monthly Knowledge Sharing Forums – Structured sessions where
divisions present updates and best practices.
 Leadership Rotation Program – Temporarily assign senior managers to
different divisions to foster collaboration.

4.1.4 Inconsistent Customer and Brand Experience

Challenges:

 Divergent branding and customer engagement strategies across business units.

 Lack of a unified customer database, leading to fragmented interactions.
 B2B vs. B2C divisions (e.g., Engross Polymers vs. Engross Foods) adopting
different market approaches.

Recommendations:

 Develop Corporate Branding Guidelines – Ensure consistent messaging and

customer experience across all divisions.
 Adopt an Integrated CRM System – Centralize customer data to track
interactions and improve service delivery.
 Create a Corporate Marketing Oversight Team – To align promotional
strategies and branding efforts.

4.1.5 Limited Talent Mobility and Skill Development

Challenges:

 Employees remain confined to one division, restricting career growth

opportunities.

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  Specialization silos hinder cross functional skill development.
 Difficulty in talent redeployment during organizational restructuring.

Recommendations:

 Launch an Internal Talent Marketplace – A digital platform for employees

to explore projects across divisions.
 Introduce Leadership Rotation Programs – High potential employees gain
exposure to multiple business units.
 Standardize Competency Frameworks – Ensure skills are transferable and
recognized across Engro.

Implementation Timeline
Initiative Phase Timeline Lead Success
Department Metrics
ERP System Planning Q1 2024 Corporate IT Requirements
Integration finalized
Implementation Q2-Q3 2024 IT & Divisions 80% adoption
rate
Cross- Pilot Q2 2024 Strategy Office 3 initiatives
Divisional launched
Task Forces
Full Rollout Q4 2024 All Divisions 90%
participation
Leadership Design Q3 2024 HR Framework
Rotation approved
Program
First Cohort Q1 2025 Talent 20 leaders
Management rotated

Table 1: Implementation Timeline

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6. Work Contribution

Work Contribution
Team Member Contribution
Mirajunisa Data collection, company overview
drafting
Iraj Report structuring, table and figures
formatting
Amna Writing, editing, and suggestions for
improvement

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7. Table of Figures
Figure 1: Engro Organizational Chart
Figure 2: Reporting Hierarchy Chart

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8. Bibliography

 Engro Corporation Official Website:

https://www.engro.com/

 Engro Corporation Annual Report 2023:

https://www.engro.com/investor-relations/financial-reports/

 Engro Corporation Profile - Business Recorder:

https://www.brecorder.com/marketdata/stocks/PSX/ENGRO

 Engro Corporation Overview - Wikipedia:

https://en.wikipedia.org/wiki/Engro_Corporation

 Engro Corporation News - Dawn.com:

https://www.dawn.com/news/1779123/engro-reports-pkr-36b-annual-profit

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