The concept of creating shared value allows for an intrinsic alignment of business strategy, operations and the value chains that feed the company’s growth. We want to ensure that we work with our partners, vendors and suppliers to deploy business models that offer win-win synergies for a broad category of stakeholders to uplift their socio-economic status in society.
Engro’s inclusive business model extends to cover primarily our fertilizers and foods businesses. Engro Ffoods business works with integrating rural dairy farmers through dedicated initiatives in the dairy value chain. The business in a short span has established over 1600 milk collection centers and works with over 250,000 farmers across rural Pakistan. By taking ownership for the agricultural output of these farmers, we have successfully boosted agricultural development across Pakistan and distributed in excess of Rs. 50 billion in direct income to these farmers since inception. Through our interventions in the dairy value chain we have impacted up to 15%increase in average herd size of small hold farmers whilst simultaneously increasing milk yields by approximately 20%. The foods business works closely with these farmers to provide them with best in class dairy farming practices which has helped reduce farmer debt on average by 15-20% followed by improved payment cycles through deployment of information systems such as EMAN (Engro Milk Automation Network).
Our fertilizers business works with rural farmers across the country integrating over 1.4 million farmers in the agricultural value chain. The company works closely with the farmers providing them not only with superior urea products that increase yield and farmer incomes but also with enhanced advisory services that educate farmers on optimal planting, seeding techniques amongst others. In 2014 the fertilizer business distributed PKR 334 billion in terms of farmer income with a direct farmer benefit of approximately PKR 12 billion by keeping domestic urea prices substantially lower than international prices.
As we forge ahead we will demonstrate a more pronounced focus on deploying inclusive business models across all our group companies thereby creating shared value and positively impacting life for a multitude of stakeholders.
WELD: A dairy value chain program, aiming to provide women an opportunity to capitalize on their participation in the dairy value chain
GIZ: innovative Field Training will be used boost the productivity of small rice farmers by 6-8% per acre per Rice season
TTC: An accredited institution under the umbrella of Pakistan Chemical and Energy Sector Skills Development Company (PCESSDC)