Celebrating the journey that transformed Engro from a single-business entity to a diversified conglomerate of six businesses with over Rs. 100 billion in revenues
Karachi, August 13, 2012: Engro Foods Limited, a subsidiary of Engro Corporation, celebrated their success on the momentous occasion of Pakistan’s 65th Independence Day as it unveiled its corporate campaign – Khud Pakistan – showcasing the roots of the Company as being one of Pakistan’s home-grown multinational organizations.
Engro with its rich history of over four decades of developing the agricultural sector of Pakistan used dairy as a stepping stone to enter the foods business in 2005 to give further impetus to its already diversified business portfolio including fertilizers, petrochemicals, energy, trading and chemicals storage and handling. In a span of just 7 years, with a compound annual growth rate (CAGR) of 65% and a planned infrastructure investment in 2012 to the tune of PKR 8 billion, Engro Foods has become the country’s fastest growing local company catering to a wide demographic consumer base from high income groups to the more economically conscious segment of the market both in Pakistan and abroad.
Serving over 5 million consumers nationwide every day, Engro Foods had revenues of about Rs. 19.76 billion during 1H-2012 with profitability registering an increase of over 450% to close at Rs. 1.02 billion. Since its inception Engro Foods has invested heavily in dairy development initiatives, cold chain infrastructure, enhancing capabilities of dairy farmers across Pakistan through innovative breakthroughs that have redefined the milk collection standards and benchmarks in the dairy industry. Employing over 12,000 individuals both directly and indirectly, Engro Foods’ continues to touch and improve life for over 160,000 dairy farmers through improved payment cycles, guaranteed collection, improved margins and up to a 15% increase in milk yields. Through its wide network of over 900 milk collection centres, Engro Foods focuses its impact at the most economically challenged communities in Pakistan – an effort that has also been recognized at local and international fronts including the IFC managed G20 Challenge on Business Innovation where Engro Foods was declared the winner from over 300 global contracts.
The Company also had the unique opportunity to become the first company in Pakistan to produce 1 Billion packs within a year in 2010 alone. A distinction that has been achieved by only 18 companies out of 3000 Tetra Pak customers worldwide.
Living its vision of ‘elevating consumer delight worldwide’ the business established its Global Business Unit (GBU) and acquired Al-Safa Halal – the oldest halal meat brand in North America in 2010. With presence in key retail stores including Loblaws, Wal-Mart , Sobeys, Metro , Kroger etc. Engro Foods GBU has obtained a market share of 15% in Canada and 3% in USA in the branded foods category.
Speaking at the occasion, Afnan Ahsan – CEO Engro Foods said: “The story of Engro and that of Engro Foods is a source of national pride. The fact that in a short span of seven years a home-grown multinational company has been created – with a geographic footprint spanning across Pakistan, Afghanistan, United States and Canada – is testament to the vision and business acumen of the Company. Engro Foods is an example that through focused approach companies can create real business value – not just in the Pakistani market but also globally.”
Building on plans for the future of the Company Afnan said: “We are in the early stages of our growth trajectory and looking ahead we will continue to further explore diversification with focused growth in our dairy and beverage business – both locally and on the international front. We are also confident that we will continue to create real value for all our stakeholders by pursuing an inclusive growth strategy that positively impacts each individual through the value chain process.”