ACKNOWLEDGEMENT

We would like to offer our humble gratitude to Allah Almighty, the most Graciousand the

most Merciful, who gave us strength and enabled us to achieve our goals.

All the material that has been included in this report is based on data/information gathered from various sources and is based on certain assumptions. Although, due care and caution has been taken to compile this report but the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information.

We are heartily thankful to our accounting teacher; Mr.Farukh whose constant guidance and support enabled us to develop an understanding of the subject which ultimately helped us in making of this project.

Introduction:-

Engro Corporation is a Pakistani public multinational corporation based in Karachi with subsidiaries involved in production of fertilizers, foods, chemicals, energy and petrochemicals.

It's major subsidiaries include Engro Fertilizers - which is one of the largest fertilizer manufacturers of the world, Engro Foods which manufactures, processes and markets dairy products, frozen desserts and fruit drinks including the ice cream brand of OMORÉ. Other major subsides include Sindh Engro Coal Mining Company, Engro Powergen Limited and Engro Polymer & Chemicals Limited.

History:-

Engro was developed as a business from a sustainability concept called Bushman Living initiated in August 2010. The company was founded in January 2012 by Jacob Vahr and Felicity Markdal, incorporated in Copenhagen in September 2013.

The original idea started in the mind of Jacob in 2008. During a vacation he visited a medicinman and local chieftain in a village north of river Gambia in West Africa. He realised the needs of these people making their living from subistence farming in extreme poor conditions. From studying local plants and methods he identified the potential in educating in organic methods for subsistence farming and developing their agricultural methods to become self sufficient.

Jacob went on to quit his career as a greenkeeper in the golfing industry and instead use his skills and experiences from grassturt maintenance, landscape designing and water management. He decided to autodidact study permanent agriculture, project planning and business development.

Later in 2011 by the facilitation of The Humanitarian Water and Food Award Organisation (WAF), meetings where held at Bayer Nordic crop sciences between stakeholders from private, public and volunteer sector. Chr. Hansen Holding represented the business industry, National Food Laboratories at Technical University of Denmark represented public sector, and Permaculture Research Institute (PRI) and Bushman Living as socially entrepreneuring organisation represented the 4th sector.

The result was an entirely new business based on a permanent agriculture model, which was presented at the final entrepreneurial event of the global entrepreneurship event week 46 in 2011. The jury made an honorable mention of the method and its potentials and gave a runner up prize. The very next day Bushman Living was presented at Entrepreneurship Goes Green 11´ a green & cleantech sustainability conference organised by the student organisation at Technical University of Denmark.

This is where Felicity Markdal joined as a partner writing the first businessplan for eGro. Felicity also holds the credit for the name and the first web page developed in association with ITIC team 14 of Lund university in Sweden. At the same EGG 11

´event eGro´s first business advisor Kim Albertsen also found his first interest in the company.

Following an intense communication over facebook from August 2012, a potential partnership with a Nepalese social entrepreneur emerged. Dealing with export of coffee and cocoa representatives of eGro met in Kathmandu first in December and later also floowed on a study trip of the intended crop field in eatsern Nepal in June of 2013. This is a project still ongoing with the transferal of knowledge to the farmers.

Board of Directors:-

Engro's Board of Directors includes one executive director, four independent directors and five non-executive directors. The Board has the collective responsibility for ensuring

that the affairs of Engro are managed competently and with integrity.

NATURE OF ITS OPERATIONS.

Engro Foods Limited is a producer and marketer of dairy products. The company’s brands include Olpers Milk, Omore ice cream, and Tarang, Olwell, and Olpers cream. To support these brands and their highest standards of quality, Engro Foods has invested heavily in milk processing and milk collection infrastructure.

Headquartered in Karachi, Pakistan, it has offices in seven cities across the country, as well as processing plants at Sukkur and Sahiwal. Engro Foods is a subsidiary of Engro Corporation Limited, one of Pakistan’s most respected enterprises with more than 40 years of business in the fertilizer and chemicals industry. In the five years since its launch, Engro Foods has seen a rapid growth in sales and market share.

ENGRO FOODS LIMITED is the 100% owned subsidiary of ENGRO. Thecompany's milk production capacity is 700k litters per day. Moreover aninvestment plan of $ 3.4 billion in Engro Foods has been approved by theboard for: expanding UHT capacity to 900k liter per day, expanding milk powder capacityto 70 kilo per day, import of 1000 cows and an ice cream plant. The company is all set forgrowth as the milk business profitability is increasing due to increasing consumption of milkand increasing prices of dairy products. Besides selling milk, the company also sells thecompany also sells related products such as creams and unbranded products such as ghee,and recently introduced a milk whitener; namely "Tarang". The value of the ENGRO FOODS LIMITED is Rs.36 in total subsidiaries value of 63.4.

ENGRO FOODS HISTORY:

The plant of Engro Food Limited is located at Sukkur on 23 acre land, has the raw milk reception capability of 300,000 liters per day and UHT milk capacity of 200,000 liters per day.

The plant has been established at a cost of Rs. 1 billion which provides direct employment to 750 people. Engro Foods has entered the Food business through milk processing and sale with the company’s vision to pursue growth opportunities based on country fundamentals and own strength. It also positions the company to leverage its corporate social responsibility initiatives and work closely with rural communities to promote integrated farming and livestock development. This effort is expected to play a pivotal role in poverty alleviation and improving livelihoods of the poor in the milk collection areas.

Market Share Price

DIVIDEND POLICY

LIST SHORT AND LONG TERM LIABILITIES

RECOMMENDATION

We are recommending following important factors which we felt missing in their supply chain:

1. To build a regional ware house in Karachi that fulfills there supply side gap & to reduce upward logistics cost.

2. EFL is not having its own dairy farms; it largely collects loose milk from farmers &gawalas through its 40 milk collection centers, which sometimes is of low quality and impure because they add vegetable oil to milk to get higher prices. EFL needs to have their own Dairy Farm so that they can meet the increasing demand as their market share is growing by 12% annually & to have quality milk procurement as well.

3. EFL is dependent upon Tetra Pak for the packaging of its entire dairy products. Tetra Pak is the only option available to Olpers for packaging because it is having monopoly in the packaging sector in Pakistan. Due to this reason, Tetra Pak can charge them higher and it could increase the production costs so they need to invest their funds for having their own packaging system.

4. They should expand their brand portfolio by investing in yogurt market as their competitors are enjoying it just because of low competition their otherwise Milk pack has its brand name in drinking milk market only. So it’s an opportunity for them to grab & enjoy the flavor.

Conclusions

Engro Foods is among the biggest and fastest growing conglomerates in Pakistan with a vision to cater to local needs with products conforming to global standards.Highly passionate about providing millions of people across the length and breadth of Pakistan and beyond with the ultimate brand experience, our product portfolio comprises some of the country's biggest and best selling brandsEngro Food is a quality conscious company and customer focus company. Customer is its first priority.Engro launched only that product, that appeal customers and satisfy customers needs and wants.Engro foods is also customer health conscious company. And their products fulfills also necessary vitamins.Price is calculated according to customer affordability and easily available in all over the country.By using different types of promotion methods Engro creates the awareness in the public