Engro Foods is a subsidiary of Engro Corporation, one of Pakistan's largest conglomerates. It was formerly Exxon Chemical Pakistan but was acquired by Engro employees in 1991. Engro Foods launched in 2005-06 and has established two processing plants and a dairy farm. It produces and markets popular dairy brands like Olper's and sells products in Pakistan, North America, and other international markets. While Engro Foods has a strong financial position and market share, it faces competition from Nestle and Haleeb Foods and will need to continue innovating and expanding its product portfolio and global operations to maintain its leading position in Pakistan's food industry.

2. Introduction of Engro Foods

Engro Foods Limited is subsidiary of Engro Corporation Which is one of
the most reputed enterprises in Pakistan with more than 40 years of
diversified business operations in the areas of fertilizer and chemicals.

Engro was formerly Exxon Chemical Pakistan Limited until 1991, when
Exxon decided to divest their fertilizer business on a global basis and sold
off its equity of 75% shares in existent company.

The Employees of Engro, in partnership with leading international and
local financial institutions bought out Exxon’s equity and the company
was renamed as Engro Chemical Pakistan Limited.

Engro Foods started its business operations in 2005-06.

Top quality brands like Olper’s, Olper’s Lite, Tarang, Omore, Olfrute, Dairy
Omung, Al Safa, Tarraka and Omung Lassi have been successfully
launched

3. Introduction of Engro Foods

Engro Foods has already set up two processing plants at Sukkur and
Sahiwal and a Dairy Farm at Nara.

Engro Foods is now venturing into North American market starting from
Halal Foods category and acquired a company launched Meat products
with name of AL SAFA.

4. Vision & Mission Statement
Vision Statement
“To be the premier Pakistani enterprise with a global reach,
passionately pursuing value creation for all stakeholders”
Mission Statement
“Our mission is twofold, to help farmers maximize their farm
produce by providing quality plant nutrients and technical
services upon which they can depend. To create wealth by
building new businesses based on company and country
strengths in petrochemicals, information technology,
infrastructure, food and other agriculture sectors.”

5. Diversified Portfolio of Engro
Pakistan
 Engro Fertilizers Limited
(Fertilizer Manufacturing and Marketing Company)
 Engro Polymer & Chemicals Limited
(Manufacturer and Marketer of PVC Chemicals)

Engro Vopak Terminal Limited
(Chemicals and Petrochemical Storage Company)
Engro Foods Limited
(Foods Company)


Engro Powergen Limited
(Power Generation Company)

6. Diversified Portfolio of Engro
Pakistan

Elengy Terminal Pakistan Limited
(LNG Storage and Marketing Company)

Engro EXIMP (Pvt.) Limited
(Exporter & Importer of Micro-Nutrients and Fertilizer)

7. Products Portfolio

8. Quick Facts & Figures

12 Brands

1,243 Employees

45% Market Share of Dairy Products

Market Share in
310 Cities in Pakistan
18 states in USA
4 Provinces in Canada

18th Largest Customer of Tetra Pak World Wide

2nd Largest Company of Chilled Milk Collection of Pakistan

900 Milk Collection Centers

35,000 farmers directly linked with EFL

9. Quick Facts & Figures

2 Milk Processing Plants

One Production Farm having 2,615 cattles (16% Milk Produce of Total
Production)

Milk Production Capacity is 700 Thousand Liters per Day.

Profit Growth 406% in 2011

Revenue Growth 42.6% 2011

30 Billions Revenue for 2011

EPS Rs.1.22 for 2011

Total Assets Rs.16,639 Millions

10. SWOT ANALYSIS
Strengths












Efficient milk collection system.
Keeping high quality standards.
Successful diversification.
Product Innovation
Strong Financial Position
Huge Capacity for Production
Growing Sales
Worldwide fame of Engro.
Qualified Work Force
Market Share
Better Integrated distribution and warehousing facilities.
Engro food has the third-generation UHT milk plants in the
country.

11. SWOT ANALYSIS
Weakness
Engro Foods is having only one its own dairy farms.
 Centralize Decisions
 High Price
 Less Promotion Activities
 Selective Target Market
 High milk collection & distribution costs.
 The competitors like Nestle and Haleeb Foods have a much
diversified line of dairy products then Engro Foods
 Unable to fulfill the demand of local powder milk market.
 Local Company


12. SWOT ANALYSIS
Opportunities

Flexible government policies for food industry.

Expansion of Food Business

Awareness of Packed Milk

Availability of Raw Material

Market Capitalization

Diversification

Export Opportunities

May merge with other global businesses to eliminate competitors.

Having Capable of expanding into other markets of the world

Has the potential to innovate and differentiate the company's products to
sustain a Competitive advantage

Increase in the consumption of processed milk will lead to increase in sales for
the company.

13. SWOT ANALYSIS
Threats












Competition with Nestle, Haleeb, Walls. and the new entrants,
Mature Market
High inflation rate.
International Marketing Standards
Change in prices might create certain barriers in terms of the
profit margins
Low purchasing power.
Recessionary period in business cycle.
High Taxes
Seasonal Factors
Economic Condition
Price Consciousness of consumers
Suppliers Behavior

14. EFE MATRIX
KEY STRATEGIC FACTORS
Weights
Opportunities
Weight Score
0.06
0.05
0.07
0.05
0.05
0.04
0.04
0.06
0.05
Raw Material Availability
Market Capitalization
Diversification
Awareness
Expansion
Flexible Govt. Policy
Innovation & Technology
Exports
Joint Ventures
Rating
3
3
4
3
3
2
2
3
2
0.18
0.15
0.28
0.15
0.15
0.08
0.08
0.18
0.10
0.06
0.07
0.04
0.05
0.05
0.05
0.05
0.05
0.06
0.05
3
4
2
2
2
3
3
2
3
3
0.18
0.28
0.08
0.10
0.1
0.15
0.15
0.10
0.18
0.15
Threats
High Taxes
New Entrants
Seasonal Factors
Low Purchasing Power of consumers
Change in prices might loss sales
Suppliers Behaviors
Economic Conditions
Price Consciousness of consumers
Mature Market
International Market Standards

15. EFE MATRIX RESULT

According to above EFE Matrix the
EFL average score is 2.82, which
seems to be good from the minimum
average score 2.50, but Engro should
more work hard to be the market
leader in food industry.

EFL’s major opportunity is
Diversification.

16. CP MATRIX
Critical Success Factors
COMPETITIVE PROFILE MATRIX
ENGRO FOODS
NESTLE
Weight
Rate
Score Rate Score
HALEEB
Rate
Score
Research and Development
0.08
3
0.24
3
0.24
3
0.24
Advertisement
0.08
3
0.24
4
0.32
2
0.16
Financial Position
0.09
4
0.36
4
0.36
3
0.27
Market share
0.07
3
0.21
3
0.21
2
0.14
Product Quality
0.08
3
0.24
3
0.24
3
0.24
Price Competitiveness
0.08
3
0.24
3
0.24
3
0.24
Management
0.08
4
0.32
4
0.32
3
0.24
Global Expansion
0.08
2
0.16
4
0.32
2
0.16
Certifications
0.06
2
0.12
3
0.18
2
0.12
Diversification
0.05
4
0.20
3
0.15
2
0.10
Customer Services
0.06
3
0.18
3
0.18
3
0.18
Sales & Distribution Network
0.06
3
0.18
3
0.18
2
0.12
Production Capacity
0.07
3
0.21
3
0.21
3
0.21
Alliances
0.06
3
0.18
3
0.18
2
0.12
TOTAL
1
-
3.08
-
3.33
-
2.54

17. CP MATRIX RESULT





According to above CPM Matrix, EFL’ s
Average Score is 3.08
EFL’s strong competitor is NESTLE which
Average score is 3.33.
EFL has high average score than HALEEB
FOODS.
Nestle is better than EFL in Advertisement
and Global Expansion.
While EFL has strong Diversification
strength than Nestle.

18. Strategies in Action

Market Penetration

Market Development

Product Development

Backward Integration

Forward Integration

Diversification

19. Financial Evaluation of EFL
Strategy
Evaluation
stage
includes
measuring
organizational performance and taking corrective actions.
We can measures EFL performance through following key
facts.
S.NO.
Key Factors
2011
2010
1
Return on Investment (ROI)
5.70%
1.41%
2
Return on Equity (ROE)
12.31%
3.43%
3
Profit Margin
2.92%
0.84%
4
Market Share
45%
31%
5
Debt to Equity
51%
51%
6
Earnings Per Share (EPS)
1.22
0.31
7
Sales Growth
42.6%
25.8%
8
Asset Growth
33.53%
27.23%

20. FINANCIAL AUDIT

21. Recommendations/ Suggestions

Engro Foods should have much diversified bi-product line of dairy products like Nestle &
Haleeb.

They should introduce new promotions to get customers’ attention

EFL should expand its dairy farms so that they can get competitive advantage.

EFL should focus on Market Penetration, Market Development and Product Development
strategies with more efforts to be the market leader.

They should go expand its capacity to enter into in international market like Nestle.

Engro Foods can be into Co-branding with other brands like Olper’s with Lipton
tea bags, Olper’s with different biscuits etc. to increase their sales

They can also move towards other foods products like Nestle launch Kit Kat
Chocolate, Meggi Noodles, Sweets Candies etc.

22. Conclusion

Engro is going to be a market leader due to different reason like its financial
position, product quality, R & D, market share, sales growth etc. Its price is
more or less equal to its competitors, it matches its quality with its competitors
and capturing its competitor’s share from market. Engro is using its brand
name and its packaging is good to promote its products and EFL is becoming
very popular as compared to its competitors.

Company has planned to make Omore world class premier quality brand like
existing brands of Engro Foods. Company is also working on cereals in coming
years. They has planned to move other dairy products as are offering by its
competitors Nestle like yogurt, flavoured yogurt (raita), cereal for babies etc.
Foods competitors Nestle and Haleeb are biggest threat. There are
opportunities and doors for new players are open who can be the future
competitors.

Consumer is aware now, there is need to maintain the quality of products.
Consumers perceptions and price differentials can cause threat for the
company, Consumer’s preferences changes timely and prices might create
certain barriers in terms of the profit margins for ENGRO FOODS.

In short Engro Foods should grow and maintain its position. That is why EFL is
increasing Market Penetration, Market Development & Product Development
strategies.

23. THANK YOU
Questions & Answers