Engro Vopak

Engro Corporation Limited, formerly Engro Chemicals Pakistan Limited, and commonly known as Engro ( ), is a Pakistani conglomerate headquartered in Karachi. It was founded as Esso Fertilizer in 1965 by Esso. Its subsidiaries, including Engro Energy, Engro Enfrashare, Engro Elengy Terminal, Engro Eximp FZE, Engro Eximp Agriproducts, Engro Fertilizers, Engro Polymer & Chemicals, and Engro Vopak Terminal, operate in energy, petrochemicals, fertilizers, port terminals, and telecommunications towers.

History

Engro was incorporated as Esso Pakistan Fertilizer Company in 1965 by Esso to manufacture fertilizer in Pakistan based on the gas reserves it discovered in 1957 near Daharki, Ghotki District, Sindh. Subsequently, it was listed on the Karachi Stock Exchange with the shareholding pattern of 75 percent owned by Esso and 25 percent by the general public. A urea plant with a production capacity of 173,000 tons was constructed at the cost of US$43 million. The plant was commissioned in Daharki in 1966 and production began in 1968.

In 1978, Esso's parent company was renamed as Exxon and accordingly Esso in Pakistan was renamed as Exxon Chemical Pakistan.

In 1988, Exxon increased its production capacity to 268,000 tons through debottlenecking.

In 1991, Exxon exited Pakistan and its shareholding of 75 percent was acquired by the employees of Exxon Chemical Pakistan in the management buyout. Two years later, in 1993, Engro relocated a second-hand modular ammonia and urea plant to Pakistan which resulted in an increased annual production capacity of 600,000 tons. Later, another debottlenecking project raised the capacity to 750,000 tons per annum.

In 1998, the Engro Conservation and Expansion of Urea (ECES-850) project was implemented which further expanded urea production capacity to 850,000 tons per year.

In 2010, Engro Chemical Pakistan was renamed as Engro Corporation.

In 2015, the National Accountability Bureau (NAB) initiated a case against Engro and several other parties, alleging that the contract for the import and distribution of liquefied natural gas (LNG) awarded to Elengy Terminal in 2013, violated the rules of the Public Procurement Regulatory Authority (PPRA). NAB also accused the then Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi of abusing his authority, which they claimed could result in a potential loss of $2 billion to the national exchequer. Although the case was closed by NAB in 2016, it was reopened in 2018. Engro was exonerated from the case in 2024 and it was declared that "no irregularity, illegal gain or loss to the national exchequer was caused."

Engro was the first Pakistani company to become a signatory of the UN Global Compact (UNGC) and adopt the Global Reporting Initiative (GRI) framework for measuring and reporting corporate performance on economic, social, and environmental parameters.

In January 2025, Engro Corporation was merged into Dawood Hercules, which was renamed Engro Holdings Limited. Subsequently, Engro Corporation became a wholly-owned subsidiary of Engro Holdings and was delisted from the Pakistan Stock Exchange as a result.

Subsidiaries

Engro Fertilizers

Engro Fertilizers is a fertilizer manufacturer in Pakistan. It commissioned EnVen, a single-train urea plant, in 2011.

Engro Energy

Engro Energy Limited formerly owned Engro Powergen Qadirpur, a 217-megawatt power plant., Engro Powergen Thar, and Sindh Engro Coal Mining Company. It currently owns Engro Energy Services.

Engro Polymer

Engro Polymer was established as a joint venture with Mitsubishi to produce PVC and other chlor alkali chemicals such as caustic soda, sodium hypochlorite, and hydrochloric acid. Engro has begun production of a plant for and is in the process of spinning off a subsidiary producing peroxide.

Engro Elengy

Engro Elengy Terminal Limited was founded in 2012 as a subsidiary of Engro Corporation. It was the first LNG terminal of Pakistan that started operations in March 2015.

In July 2018, Royal Vopak acquired 29 percent stake in Engro Elengy for $38 million.

Engro Connect

Engro Connect has acquired all 10,500 telecom towers owned and managed by Jazz in a landmark $560 million deal. This transaction marks the first time a major telecom operator in Pakistan has divested its entire tower infrastructure.

Pakistan currently has around 50,000 telecom towers. The tower company model is gaining popularity globally, allowing multiple telecom operators to share infrastructure and reduce costs. Other tower companies in Pakistan include Engro Enfrashare, Edotco, and Saudi-based TAWAL Pakistan.

Engro Enfrashare

Established in 2018, Engro Enfrashare operates more than 3,950 telecommunication towers in Pakistan. Engro Enfrashare is a wholly owned subsidiary of Engro Connect (Private) Ltd. which, in turn, is a part of the Engro Group of Companies. Engro Enfrashare started its operations in Nov 2018; headquartered in Islamabad.

Engro Eximp

Engro Eximp Agriproducts was founded in 2011. It operates a plant for processing and finishing rice.

Engro Eximp FZE, a wholly owned subsidiary of Engro Eximp Agriproducts, began its operations in 2022 in the Jebel Ali Free Zone of Dubai.

Joint ventures

Engro Vopak

Engro Vopak Terminal Limited was originally founded as Engro Paktank Terminal Limited as a joint venture between Royal Vopak and Engro. It was built at a cost of $60 million and was opened in May 1998. It provides storage for bulk liquid chemicals and liquefied petroleum gas (LPG), with a capacity of 82,400 cubic meters.

In 2011, Engro Vopak was fined PKR 10 million for signing a monopolistic contract with Port Qasim Authority.

FrieslandCampina Engro Pakistan

Established in 2006, FrieslandCampina Engro is a joint venture with Royal FrieslandCampina. Its brands include Tarang, Olpers, Omung, and Omoré.

Philanthropy

Engro's social investment programs are managed by Engro Foundation.

In 2012, Engro Foundation launched I Am The Change Awards to recognize individuals who are working for the betterment of people and hard-hit communities. In 2020, the Foundation also signed a three-year memorandum of cooperation with the Bill and Melinda Gates Foundation to promote the well-being of vulnerable and marginalised segments of society.

Leadership

List of chief executive officers

* Asad Umar (2004–2012)
* Ali Ansari (2012–2015)
* Khalid Siraj Subhani (2015–2016)
* Ghias Khan (2016–2024)
* Ahsan Zafar Syed (April 2024–present)

Board of directors

Engro's board of directors includes one executive director, five independent directors, and four non-executive directors. Hussain Dawood has been the Engro Corporation chairman since 2006.

References

Further reading

* Mirza, Shaukat Raza (2005) ''From Exxon to Engro''. Oxford: Oxford University Press. .
* Saeed, Mawal Sara (2012). ''Yes Engro – There is Hope: An analysis of Capital Structure of Engro''. Lap Lambert Academic Publishing, .

Articles

* Khurshid, Anwar; Chaudary, Muddassir Shafique (September 2010). "Engro Chemical Pakistan Limited—Restructuring the Marketing Division". Asian Journal of Management Cases. 7 (2): 135–155.

External links

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{{Portalbar, Business and economics, Pakistan, Company

1965 establishments in Pakistan
1960s initial public offerings
1991 mergers and acquisitions
Chemical companies established in 1965
Companies based in Karachi
Companies formerly listed on the Pakistan Stock Exchange
Companies in the KSE 100 Index
Companies of Sindh
Conglomerate companies of Pakistan
Pakistani brands
Pakistani companies established in 1965