1. Green land Fertilizer Company
Green Land Fertilizer Company
Business Ethics
We are committed to conducting our business activities in honest and sincere way with our
particular Values and full applicable laws and regulations in our company. We also believe in
treating our customer same principles as our employees in order to build mutual respect,
confidence and trust based upon integrity, honesty, and competence.
In order to maintain and enhance our reputation for success or our business, it is important for all
of us individually and collectively to adopt the highest moral, ethical and legal standards of the
business.
Vision
Green Land Fertilizer vision is to play a leading role for the improvement in the industrial and
agricultural sector and take some new advancement in the these sectors and giving new growth
opportunities by offering multiple brands in Pakistan to our customers the main purpose giving
the benefit for our customers and our shareholders, and play work as socially responsible and
that is a model of success.
A-One Group
2. Green land Fertilizer Company
Mission
Our mission is to maximize the profit by investing in this business and that can fulfill our
investment criteria to achieve growth and getting maximum return purpose on a consistent basis.
We will create our efficiency and capability within our existing operations and through our
investments green land deliver exceptional services to our customer and for support our
shareholders, and provide a dynamic and challenging environment for our employees.
Business Model OF Industry
There are two types of business model operational in fertilizer sector.
Manufacturing Model:
Two types of fertilizer are produced in Pakistan which is Urea& DAO
Distribution Model:
Import fertilizer and sell them in association with the local dealer network.
Competitors
Engro Chemical Company Ltd
Fauji Fertilizer Company Ltd
Dawood Hercules
Fatima Fertilizer Company Ltd.
National Fertilizer Corporation
Geographic Location
Bahawalpur
Multan
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3. Green land Fertilizer Company
Marketing Strategy
1. Pre execution Marketing
2. Post Execution Marketing
Pre Execution Marketing
• Area Identificaton
• Village Meeting
• Targeting of potential farmer
Post Execution Marketing
• Publicity
• Mega farming meeting
• Production display
• Demonstration
Incentive Offered By the Government
The Government has provided following incentives under Fertilizer Policy, 2001, to
encourage fertilizer production in the country.
To fulfill local demand of fertilizers at affordable prices, the Government is providing
subsidy on production and import of fertilizers.
Investors will be allowed to relocate second hand plant, equipment and machinery with the
same concession as applicable to new plants.
The Government is providing concessionary feed stock gas to the fertilizer plants for
production of urea.
Import by manufacturers of Rock Phosphate and Phosphorous of fertilizer free of customs
duty.
Tax relaxation has also been offered by the Government.
Export benefit to suppliers of capital goods for new projects of fertilizer.
Gas price has been fixed for 10 years for new investments.
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4. Green land Fertilizer Company
Benefits by the Industry
The major benefit that industry is providing is the Employment, as with increase in plants of the
industry like increase in warehouses. This will increase in employment and Companies also
participating in social welfare activities.
For example in education helping earth quake victims, and in health sector
Pricing Model
Price = f (Governmental Policies + Monetary Policies + Inflation + Availability Fuel & Gas)
Where,
Governmental Policies Ban on Export Monetary Policies Subsidy, No Custom Duty on Import
of Equipment & Raw Material Inflation Increases in Gas Prices, Transportation Cost because
of increase in Fuel Price Availability of Fuel and Gas Continuous Supply.
Hurdles in Marketing
• Weak competition or shortages of improvement
• Rigid and slow reaction to market changes
• New entrants discouraged.
• Prices are not same in all over Pakistan.
• Ineffective distribution process
Market
The target market of the industry can be divided in to two parts:
• Farmers
• Land owners
Publicity
Wall painting
Shop painting
Farming equipment painting
Press news coverage
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5. Green land Fertilizer Company
Print Media
Local Radio
SWOTANALYSIS
Strengths:
• The players operating in this sector are financially strong and they can start production of
new product line. Adding some new unit can enhance the production capacity of the
plants.
• All the fertilizer plants are producing at more than 100 per cent installed capacity
of utilization.
• Demand is heavy because, being an agriculture country and due to increasing awareness
about the use of fertilizer, demand for the fertilizer will increase.
• Industry has well distribution centers.
• Due to the existence of black market and heavy demand, farmers have to pay above then
the stated price.
• Demand is more and capacity of plants to produce fertilizers is less.
• Fertilizer sector is backward in technology and also lack in resources.
• Low advertising campaigns as growers and farmers are not educated and lives in villages,
so they don’t exactly know the use of fertilizer.
Weaknesses:
• Low capacity as compared to demand (demand supply Gap)
• Due to existence of black market and heavy demand Farmers had to pay above the stated
price.
• Technological backwardness
• Lack of local resources
.
Opportunities:
A-One Group
6. Green land Fertilizer Company
• If the quality is good customer will buy your product. By improving the quality
of products, industry can attract more customers and can retain customers by satisfying
their needs.
• Availability of gas from Iran can increase the production of plants and industry can fulfill
the demands.
• Government is giving support to fertilizer sector.
• As demand is high comparing to supply, fertilizer sector has an opportunity to expand the
capacity to fulfill the local demand.
• As Pakistan is an agricultural country and farmers are getting awareness about the
balanced use of fertilizer, demand of fertilizer has increased.
Threats:
• As natural gas is the main raw material, load shedding of natural gas is big threat.
• Imported fertilizer is available at cheap prices than local fertilizer.
• Prices of fuel and gas have increased continually.
• Global prices of fertilizer products are also increasing which is causing increase in
fertilizer prices in the country.
• Bio fertilizer is the main threat to the industry because it is cheap and also environment
friendly.
• Government policies are not consistent regarding fertilizer industry.
Recommendation
• Strict quality control and monitoring should be there to prevent import of substandard
products
• The problem of logistic should be looked into transportation through railway being a
cheaper way especially during peak seasons should be made available.
• There is a need to educate the farmers on balanced fertilizer use so as to adverse impacts
and constant use of nitrogenous fertilizers.
A-One Group
7. Green land Fertilizer Company
• If the quality is good customer will buy your product. By improving the quality
of products, industry can attract more customers and can retain customers by satisfying
their needs.
• Availability of gas from Iran can increase the production of plants and industry can fulfill
the demands.
• Government is giving support to fertilizer sector.
• As demand is high comparing to supply, fertilizer sector has an opportunity to expand the
capacity to fulfill the local demand.
• As Pakistan is an agricultural country and farmers are getting awareness about the
balanced use of fertilizer, demand of fertilizer has increased.
Threats:
• As natural gas is the main raw material, load shedding of natural gas is big threat.
• Imported fertilizer is available at cheap prices than local fertilizer.
• Prices of fuel and gas have increased continually.
• Global prices of fertilizer products are also increasing which is causing increase in
fertilizer prices in the country.
• Bio fertilizer is the main threat to the industry because it is cheap and also environment
friendly.
• Government policies are not consistent regarding fertilizer industry.
Recommendation
• Strict quality control and monitoring should be there to prevent import of substandard
products
• The problem of logistic should be looked into transportation through railway being a
cheaper way especially during peak seasons should be made available.
• There is a need to educate the farmers on balanced fertilizer use so as to adverse impacts
and constant use of nitrogenous fertilizers.
A-One Group