businessmodel

overview

Engro’s integrated business model is the core essence of our structural stability, operational effectiveness and business growth. The separate value creation business models of each subsidiary are integrated with Engro Corporation’s business model leveraging support to the subsidiaries on the following six pillars:

  1. Governance structure
  2. Strategic support
  3. Acquisition and allocation of financial capital
  4. Social Capital Management
  5. Human and intellectual capital (brand, policies, systems, standards, patents, copyrights, licenses) management
  6. Ethics and compliance frameworks

The value creation business models of all subsidiaries have been developed on a common theme, which is as follows:

  1. Take input from six forms of capitals; financial, human, natural, social & relationship, manufactured and intellectual capitals. The inputs from these capitals are derived in a responsible manner with the realization of the fact that the cost of these capitals is jointly shared by Engro, our society and environment
  2. Engro business engines (activities and processes) transform these inputs into the outputs (products and services provided by Engro) in a way to:
  3. create and maximize value (outcome) for all capitals and stakeholders in the short, medium and long term

We believe that while we aspire to deliver value and achieve excellence in our core businesses, the seeds we sow through our diverse outreach today will pave the way for meaningful success tomorrow. We ensure that our business model is geared towards creating sustainable value for a wide spectrum of stakeholders.

engro

corporation

Engro Corp is the holding company of all Engro group companies, i.e. subsidiaries. Engro Corp explores investment opportunities in business ventures and forms a corporate model of the business by establishing new subsidiaries and/or conducting corporate restructuring of existing Engro Corp subsidiaries.

engro corp’s role in subsidiary affairs

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Capital Injection
Dividends & Royalties
engro

corp subsidiaries

Engro Corp’s subsidiaries extend their own business strategies at a functional level and execute and implement the same in alignment with strategy driven by Engro Corp. Subsidiaries enjoy independence and autonomy in financial, operational, business, and performance management, and take consent from Engro Corp on strategic matters (above a certain threshold).

business model of subsidiaries

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business model

engro corp’s role in subsidiary affairs

Governance

  • Oversight of subsidiaries’ business performances
  • Executive committee of Engro Corp consists of its President & CEO, Chief People Officer, Chief Information & Transformation Officer, Chief Financial Officer, Chief Legal Officer, Head of Government Relations, and CEOs of its direct subsidiaries
  • All Engro Corp subsidiaries’ CEOs report to President & CEO of Engro Corp

Strategy

  • Formulation of corporate-level strategy
  • Visionary direction, support, and guidance on subsidiary-level business strategies

Financial Capital

  • Financial capital allocation
  • Corporate-level portfolio management
  • Debt raising activities
  • New investment opportunities and project expansion outside and in-between existing portfolios

Social Capital

  • Corporate Philanthropy
  • Inclusive business and shared value creation
  • Community investment and corporate impact venturing
  • Leveraging external donor funding
  • Social contribution acquisition from subsidiaries & onward channelization

Human & Intellectual Capital

  • Effective Succession Planning, Strategic Business Partnering
  • Future Ready Workforce, Diversity, Equality, & Inclusion, and Employee Experience
  • Engaging Talent and Leadership Development
  • Setting up wide standards and policies, and common brand identity of ‘One Engro’
  • Group’s public relations and brand management (patent, license of Engro brands)

Ethics & Compliance

  • Providing legal and company secretariat support
  • Shareholder audits, review companies' internal audits, and group-wide corporate ethics & compliance management
business model

business model of subsidiaries

Financial

  • Shareholder’s investments and funding from financial institutions
  • Corp provides support for financial access
  • Engro Corp. subsidiaries use and manages it for business

Human

  • Competencies, capabilities and experience
  • Motivations to innovate and loyalties
  • Ability to lead, manage and collaborate
  • Corp manages top talent & executive management, rest is managed by Engro Corp. subsidiaries

Natural

  • Raw materials & natural resources
  • Investment in core environmental management
  • Risks and Mitigation strategies

Social

  • Key stakeholder and community relationships
  • Stakeholder trust and willingness to engage
  • Shared norms, common values and behaviors
  • Organization’s social license to operate
  • Engro Foundation manages and implements social interventions

Manufactured

  • Buildings
  • Equipment
  • Infrastructure
  • Innovation
  • Engro Corp subsidiaries access directly and use them

Intellectual

  • Intellectual property (patents, copyrights, software, rights and licenses)
  • Tacit knowledge, systems, procedures and protocols

Engro Polymer & Chemicals

  • Manufacturing, marketing and distribution of quality Chlor- Vinyl allied products
  • Ethylene di chloride, Vinyl chloride monomer, poly vinyl chloride, sodium hypochlorite, hydro chloric acid

Engro Eximp Agriproducts

  • Rice & other grains procurement, processing and sales
  • Processing and packaging of rice and other Edible grains

Engro Fertilizers

  • Urea and other fertilizer manufacturing
  • Urea, phosphates

Engro Energy

  • Mining of Lignite coal & Electricity Generation from coal and other hydrocarbons
  • Electricity

Engro Vopak

  • Chemicals Oil and Gas products storage and warehousing
  • Safe storage and supply of stored products

Engro Elengy

  • LNG regasification unit
  • RLNG

Financial

  • Financial growth
  • Investment growth
  • Return for investors & other stakeholders
  • Contribution to GDP

Human

  • Effective Succession Planning
  • Future Ready Workforce ,
  • Diversity and Inclusion
  • Employee Experience

Natural

  • Positive environmental footprints
  • Improved/decreased material and energy footprints.
  • Increased efficiency of resource utilization. (Reduce, Reuse and Recycle)
  • Eco-systems and bio-diversity protection

Social

  • Contribution to key CSR thematic areas for communities
  • Inclusivity and shared value

Manufactured

  • Efficient, economic, safe and ergonomic manufacturing facilities
  • Excellence in Processing, storage and distribution.

Intellectual

  • Collaborative partnerships
  • Improved brand reputation and penetration