About Agritech

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Agritech Limited (Formerly Pak American Fertilizers Ltd.) project
was actually commissioned in 1958 with the installation of Ammonium
Sulphate plant. In 1998 the plant was then converted to Urea with a
capacity of 1050MT per day and since then it has been marketed as
Kissan Urea. Kissan was a flagship brand name of NFC and urea from all of
its plants was marketed under "Kissan" brand name.

In 2004, after the privatization of other plants, NFML relaunched the Urea
from Agritech Limited plant as "Naya Kissan Urea" to emphasize on better
quality urea from Agritech Limited plant. On Jul 16, 2006 Azgard9 took
control of the plant and started its own marketing and adopted the brand
name Kissan Plus. The company was purchased for 16.5 Billion rupees($
272,000,000). The plan was to use this brand name for 3 months and then
come up with a separate brand name within this stipulated time period.
For this Azgard9 initiated the Consumer Insight research through Oasis
International by conducting the in- depth interviews with the farmers in 5
key markets namely; Mianwali, Sargodha, Mardan, Okara, Multan. The
results of this research were presented on Sep 20, 2006 and on the basis
of these results this brief is being developed.

On the basis of the above research data and inputs from Creative Agency
the brand name "TARA UREA" was chosen. Moreover, in order to develop
TARA’s own identity sky blue color bag design was selected with three
color printing making it the most colorful bag in the fertilizer industry.
Soon the company will venture into the imports of DAP, MAP, MOP and
other imported fertilizers.

PAFL acquires Hazara Phosphate Fertilizers Limited

Agritech Limited (Pak American Fertilizers Limited), a 100% owned

subsidiary of the AZGARD9, successfully completed the acquisition of
Hazara Phosphate Fertilizers (Pvt.) Limited from the Government of
Pakistan as part of its ongoing privatization initiative. Now the Company
(through its subsidiaries) owns and operates the country's newest and

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most efficient urea plant, Agritech Limited (Pak American Fertilizers
Limited), and also the largest Single Super Phosphate (SSP)
manufacturing plant in the country, Hazara Phosphate Fertilizers (Pvt.)
Limited. This Completes the Company's vitally important strategic goal to
become a diversified manufacturer producing both nitrogenous and
phosphatic fertilizers.

ECC’s New Mechanism Encompass The Two Major Aspects

Urea prices would increase by Rs. 85/bag to Rs. 605/bag

DAP prices would decline by Rs. 275/bag to Rs. 825/bag

The domestic usage ratio of DAP to urea is 1:5 (20%: 80%) as against
agronomic recommendation of 1:2 (33.3%: 66.7%). The present domestic
usage ratio of DAP and urea is adversely affecting the productivity of the
arable land which would hamper the agricultural production of the
country going forward. In our view, this proposal of ECC is the need of the
hour otherwise the country would have to face severe consequences in
years to come.

Impact on Fertilizer Companies

The measure EEC took would be more focused towards provoking the
demand for DAP, keeping per acre cost constant and expected to
increase the crop yield by 10-15%.

Lower urea imports would not hurt the earnings of the domestic fertilizer
manufacturers. FFBL, being a sole producer of DAP accounts for 32%
market share of DAP, rest of DAP is imported by other fertilizer
manufacturers. FFBL would be benefited in the longterm owing to
capacity enhancement of its DAP plant which is expected to come online
by the end of FY'07. This would increase the total DAP production
capacity of the company by 51% to 2046tons per day.

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 Achievements

PAFL has had multiple achievements in the last few months. It achieved a
Successful turnaround for maintenance purposes in less than fifteen days.

Since Acquisition of the plant by Azgard 9, PAFL has managed to acquire 8

% of market share within 9 months. This successful penetration of the
market resulted in a collection of Rs. 3.0 billion as revenue.

In the midst of all this activity a successful Brand Launching was

accomplished. The New Brand by the name of “ TARA ” was successfully
managed to create a place for itself
in the market with the help of different Dealer and Consumer Incentive
Schemes.

Along with this successful diversification of the Product categories was

achieved with the purchase of 30000 Tons of DAP in a scenario of
international shortage and this vessel is arriving in June 2007. Moreover,
PAFL have also brokered a deal for another fertilizer product namely MOP
which is expected to arrive in Jul 2007.

Dealer network was increased at a drastic pace from none at the time of
acquisition to 250 dealers at this point in time and still expanding.

At the same time the Production Efficiency was increased to 108 % from
the earlier 100 % production level. Alongside this various cost reduction
measures have been taken to make PAFL a more financially efficient
organization.

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 Process Re-Engineering

The plant is going through various re-engineering processes to enhance

its efficiency and output. According to the various plans 15 %
enhancement in urea production capacity will be achieved by Dec 2007
and a further 35% increase will be completed by DEC 2008.

Simultaneously 350 tons increase in production in the ammonia plant will

be accomplished by Dec 2008.

Sales and Marketing department was developed with presence in each

key market.

Process and system for port logistics are now in place with an
independent resource handling the imported fertilizers.

Innovation

Quality improvement activities are in process through various

conventional and unconventional methods. Simultaneously PAFL has
adopted the attitude of constant reevaluation of the market and intends
to follow a policy of constant Research & Development in the various
stages involved in fertilizer production and marketing and to achieve a

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competitive edge in the market.

New Ideas

Various steps are being introduced in the PAFL

plant to enhance the product Quality along with
the increased quantity. Various mechanical and
chemical changes are being introduced to
enhance the product quality.

Through rigorous market research and with the

right creative agency the brand name ‘ TARA '
was evolved which was an instant hit in the
market and immediately developed its
awareness among farming community.

In order to differentiate the packaging from

competition a new bag color ‘Blue' was
introduced with three color printing on the bag
which is first of its kind in the fertilizer industry.
Packaging is still under the process of revision to
add more colors and to create better perception about the product in the
market and to pass on the message of increased concentration on Quality
improvement.

On the same pattern DAP bag design has also been unique by adopting
yet another new color in fertilizer industry i.e. Light Purple with three
color printing. MOP bag is under development phase under the similar
concept.

Plan for spraying uri-soft and adding to Urea Formaldehyde in the product
are also underway to help achieve the quality targets.

Cost Saving Measures

Multiple cost saving methods are underway or planned.

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A Gas turbine of 7.5 MWatts has been successfully commissioned from
31-5-07. The gas intake has been reduced by 50 % while production has
been increased.

Along with this Man power has been made more efficient. Number of
employees has been reduced from 1052 to 792 to make it a leaner and
more efficient system. Under utilization of its employees has been
successfully reduced and further action in this regard is under process.

Immediately after acquisition PAFL introduced their own distribution

network with new truckers in place resulting in reducing distribution cost
from Rs. 1000 per ton before acquisition to Rs. 475 per ton post
acquisition.

Production Numbers

Since Acquisition Production Efficiency has been increased from 100 % to

an astonishing 108 % and steps are being taken to take it even further.

As a result of this we are now successfully producing1120 MT froman

earlier 1050 MT Plans have been generated to increase the production
further with the help of plant re-engineering / revamping.

Since the acquisition PAFL has sold 300,000 tons during the period Jul 16,
2006 to May 31, 2007.

Safety & Environments

Multiple steps have been taken to improve upon the safety standards set
in place. With the consultancy of various professionals rigorous efforts
are being made to achieve Occupational Safety and Health
Administration OSHA Certification. Simultaneously ISO 18001 Certification
is targeted to achieve by Dec 07

PAFL is a strong believer of providing a safe working environment for its

employees. It is constantly working towards improving its safety
standards and adheres strongly to providing a suitable working
environment.

Agritech Limited (Pak American Fertilizers Limited) is a holder of ISO 9001

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and ISO 14001 Certification since 2005 and believes in taking its
performance over and beyond these.

Manpower

Agritech Limited (Pak American Fertilizers Limited) is quickly heading

towards becoming one of the best performers in the industry. With its
highly qualified and experienced staff and an ever increasing eagerness
of becoming the best in the industry, the staff at Agritech Limited (Pak
American Fertilizers Limited) is set to take over the market with a bang.

The previously over employed infrastructure with more than 1052

employees has been transformed into a lean and efficient system. The
present number of employees totals to 792 people inclusive of
management and technical staff. The employees are working as a well
knitted team with targets to be the best in the industry.

Community

Agritech Limited (Pak American Fertilizers Limited) with its policy of being
a socially responsible entity, has actively participated in resolving the
issues of the community spread around its plant. It has stepped forward
in this field by becoming the single source of clean drinking water supply
to the community. The residents have appreciated this tremendously.
Along with this their need for medical facilities has also been catered to
by the company run hospital in the area.

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 Technical Information

Plants and Machinery List

Agritech Limited

PLANT CAPACIT PROCESS LICENSES RAW

Y MATERIAL

1. Ammonia 600 High Pressure, MW Natural Gas,

Plant Tons/Day Catalytic Air, Steam
KELLOG
Steam
Reforming,
Minimum
Energy
Consumption

2. Urea Plant 1050 Advances cost Toyo Anhydrous

Tons/Day & Energy Engineering Ammonia,
Saving (ACES) Corporation, Carbon
Mitsui Toatsu Dioxide Gas
Corporation,
Japan

Hazara Phosphate Fertilizers Pvt. Limited (HPFL)

PLANT CAPACIT PROCESS LICENSES RAW

Y MATERIAL

1. Sulphuric 100 “Rotary Drum & Heutey Sulphur, Air,

Acid tons/day Granulation” france Water

2. SSP 300 tons/ Conventional Monsanto Phosphate

(Granular) day France rock
sulphuric
acid

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Agritech – Organogram

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Agritech – Job Descriptions

1. Group Manager HSE and Asset Integrity

2. Group Manager Supply Chain and
Commercial
3. Group Manager Finance & IT
4. Group Manager Human Resources &
Industrial Relations
5. Group Manager Sales & Marketing
6. Group Manager Technical
7. Group Manager Manufacturing

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