Engro Corporation is a Pakistani conglomerate with subsidiaries in fertilizers, foods, chemicals, energy and petrochemicals. Its major subsidiaries include Engro Fertilizers and Engro Foods. Engro Foods produces and markets dairy products under brands like Olpers Milk and Omore ice cream. It has invested in milk processing infrastructure and has offices across Pakistan as well as processing plants. The board of directors oversees Engro's operations and ensures affairs are managed competently.

1. 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.

2. 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:-

3. Engro was developed as a business froma sustainability concept called Bushman
Living initiated in August2010. 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 fromsubistencefarming
in extreme poor conditions. Fromstudying local plants and methods he identified
the potential in educating in organic methods for subsistencefarming 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 fromgrassturtmaintenance, 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 whereheld at Bayer Nordic crop sciences between
stakeholders fromprivate, public and volunteer sector. Chr. Hansen Holding
represented the business industry, NationalFood Laboratories at Technical
University of Denmark represented public sector, and PermacultureResearch
Institute(PRI) and Bushman Living as socially entrepreneuring organisation
represented the 4th sector.
The result was an entirely new business based on a permanentagriculture model,
which was presented at the final entrepreneurial event of the global
entrepreneurship event week 46 in 2011. Thejury made an honorablemention of
the method and its potentials and gavea 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 whereFelicity Markdaljoined as a partner writing the firstbusinessplan for
eGro. Felicity also holds the credit for the name and the firstweb page developed
in association with ITICteam 14 of Lund university in Sweden. At the same EGG

4. 11´eventeGro´s firstbusiness advisor KimAlbertsen also found his firstinterest in
the company.
Following an intense communication over facebook fromAugust2012, a potential
partnership with a Nepalese social entrepreneur emerged. Dealing with export of
coffee and cocoa representatives of eGro met in Kathmandu firstin December
and later also floowed on a study trip of the intended crop field in eatsern Nepal
in June of 2013. This is a projectstill 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.

5. NATURE OF ITS OPERATIONS.
Engro Foods Limited is a producer and marketer of dairy products. Thecompany’s
brands include Olpers Milk, Omoreice cream, and Tarang, Olwell, and Olpers
cream. To supportthesebrands and their highest standards of quality, Engro
Foods has invested heavily in milk processing and milk collection infrastructure.

6. 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 mostrespected
enterprises with more than 40 years of business in the fertilizer and chemicals
industry. In the fiveyears since its launch, Engro Foods has seen a rapid growth in
sales and market share.
ENGRO FOODS LIMITEDis 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.

7. The plant has been established at a costof 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 pursuegrowth
opportunities based on country fundamentals and own strength. Italso positions
the company to leverage its corporatesocial responsibility initiatives and work
closely with ruralcommunities to promote integrated farming and livestock
development. This effortis expected to play a pivotal role in poverty alleviation
and improving livelihoods of the poor in the milk collection areas.
Market Share Price

9. DIVIDEND POLICY

10. LIST SHORT AND LONG TERM LIABILITIES

11. RECOMMENDATION
We are recommending following important factors which we felt missing in their
supply chain:
1. To build a regional warehousein Karachi that fulfills there supply sidegap
& 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 impurebecause they add vegetable oil to milk to get higher
prices. EFL needs to have their own Dairy Farmso that they can meet the
increasing demand as their marketshare is growing by 12% annually & to have
quality milk procurementas 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 becauseit
is having monopoly in the packaging sector in Pakistan. Dueto this reason, Tetra
Pak can charge them higher and it could increase the production costs so they
need to investtheir funds for having their own packaging system.
4. They should expand their brand portfolio by investing in yogurtmarket as
their competitors are enjoying it justbecauseof low competition their otherwise
Milk pack has its brand name in drinking milk marketonly. So it’s an opportunity
for them to grab & enjoy the flavor.

12. 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 passionateaboutproviding millions of people across the length
and breadth of Pakistan and beyond with the ultimate brand experience, our
productportfolio comprises someof the country's biggestand best selling
brandsEngro Food is a quality conscious company and customer focus company.
Customer is its firstpriority.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.Priceis 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