Introduction of Engro Foods


Engro Foods Limited is subsidiary of Engro Corporation Which is one of
the most reputed ent...
Introduction of Engro Foods


Engro Foods has already set up two processing plants at Sukkur and
Sahiwal and a Dairy Farm...
Vision & Mission Statement
Vision Statement
“To be the premier Pakistani enterprise with a global reach,

passionately pur...
Diversified Portfolio of Engro
Pakistan
 Engro Fertilizers Limited
(Fertilizer Manufacturing and Marketing Company)
 Eng...
Diversified Portfolio of Engro
Pakistan


Elengy Terminal Pakistan Limited
(LNG Storage and Marketing Company)



Engro ...
Products Portfolio
Quick Facts & Figures


12 Brands



1,243 Employees



45% Market Share of Dairy Products



Market Share in
310 Citi...
Quick Facts & Figures


2 Milk Processing Plants



One Production Farm having 2,615 cattles (16% Milk Produce of Total
...
SWOT ANALYSIS
Strengths















Efficient milk collection system.
Keeping high quality standards.
Succe...
SWOT ANALYSIS
Weakness
Engro Foods is having only one its own dairy farms.
 Centralize Decisions
 High Price
 Less Prom...
SWOT ANALYSIS
Opportunities


Flexible government policies for food industry.



Expansion of Food Business



Awarenes...
SWOT ANALYSIS
Threats















Competition with Nestle, Haleeb, Walls. and the new entrants,
Mature Mark...
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 M...
EFE MATRIX RESULT


According to above EFE Matrix the
EFL average score is 2.82, which
seems to be good from the minimum
...
CP MATRIX
Critical Success Factors

COMPETITIVE PROFILE MATRIX
ENGRO FOODS
NESTLE
Weight
Rate
Score Rate Score

HALEEB
Rat...
CP MATRIX RESULT






According to above CPM Matrix, EFL’ s
Average Score is 3.08
EFL’s strong competitor is NESTLE ...
Strategies in Action


Market Penetration



Market Development



Product Development



Backward Integration



For...
Financial Evaluation of EFL
Strategy
Evaluation
stage
includes
measuring
organizational performance and taking corrective ...
FINANCIAL AUDIT
Recommendations/ Suggestions


Engro Foods should have much diversified bi-product line of dairy products like Nestle &
H...
Conclusion


Engro is going to be a market leader due to different reason like its financial
position, product quality, R...
THANK YOU
Questions & Answers
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Engro foods

  1. 1. 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
  2. 2. 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.
  3. 3. 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.”
  4. 4. 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)
  5. 5. 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)
  6. 6. Products Portfolio
  7. 7. 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
  8. 8. 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
  9. 9. 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.
  10. 10. 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 
  11. 11. 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.
  12. 12. 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
  13. 13. 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
  14. 14. 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.
  15. 15. 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
  16. 16. 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.
  17. 17. Strategies in Action  Market Penetration  Market Development  Product Development  Backward Integration  Forward Integration  Diversification
  18. 18. 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%
  19. 19. FINANCIAL AUDIT
  20. 20. 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.
  21. 21. 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.
  22. 22. THANK YOU Questions & Answers
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