ACKNOWLEDGEMENT

In the name of ALLAH, the all corroborate possessor of majesty and splender, the omnipresent, The whole benevolent and ever merciful. Whos generosity and magnificence able us to complete to make this humble contribution to already existing ocean of knowledge. All praises to his last messenger HAZRAT MUHAMMED (peace be upon him) who is a source of guidance and knowledge for humanity as a whole is an ever inspiring for all the learned personals by the order of ALLAH almighty In the repairing tour report on Pak Arab fertilizer industry we express our heart felt thanks to our Sir Engr. Irfan Randhawa & Engr.

Rizwan Maqbool their guidance, valuable suggestions and constructive

criticism in preparation of this tour report. Our acknowledgement is also due to our chemical head of engineering department SYED NASIR ABBAS ABDIfor all his full moral support as well as his hopeful suggestions whenever needed.

Pakarab Fertilizers (Pvt.) Limited, MULTAN

ESTABLISHMENT:
It was 12th June, 1962 when a company named National Gas Fertilizers Factory was established by Pakistan Industrial Development Corporation (PIDC) in MULTAN, with Ammonia and Nitric Acid plants of 200 & l00 M.Tons per day respectively. Ammonium Nitrate & Urea are the final products having daily production of 330 and 180 M Tons respectively. The plant was not able to achieve the rated capacity and it was supplemented with an Ammonia unit in 1988, with daily production of 60 M Tons of Ammonia. This unit was not also able to fulfill the guarantee tests. So after detailed investigations and discussions it was decided ultimately to extend the fertilizer units by using some of the existing facilities in conjunction with a new Ammonia, Nitro-Phosphate (NP) and Calcium Ammonium Nitrate (CAN) plants, so as to achieve the needed demand of these fertilizers in the country. In pursuance of the above mentioned decisions, a treaty was signed between Pakistan Industrial Development Corporation (now NFC) and ADNOC (Abu Dhabi National Oil Company) on March 7, 1973 and an agreement was made on 1st November l973, to establish a new company named PAKARAB FERTILIZERS (Pvt.) LTD. in the public sector, as a joint venture for the expansion and modification of the old National Gas Fertilizers. Pakarab Fertilizers Limited was established as protocol concluded and signed on the 15th November 1972 by the Federal Government to further strengthen and develop internal ties between Islamic Republic of Pakistan and the State of Abu-Dhabi to cooperate in the fields of Petroleum industries and National resources for the mutual benefits.

COMPANY FEATURES:
The company now a living symbol of excellent relations between both the brotherly Islamic countries was incorporated on 12 November 1973 with total authorized capital of Rs 1000 Million Pakarab has equity share capital

participation of Pakistan through NFC & Abu-Dhabi through ADNOC in the ratio of 52% and 48% respectively, with a paid up capital of Rs 743.061 Million. The project was completed at a total cost of RS 2511.44 Million with a foreign exchange of Rs. 1292.25 Million .It is the largest project of its type in the country. It is the project producing compound fertilizers such as Nitro-phosphate, Calcium Ammonium Nitrate & Urea.

PLANTS IN OPERATION
The plants that are working efficiently are:

Urea Plant Ammonia Plant Nitro phosphate Plant Nitric Acid Pant Calcium Ammonium Nitrate Plant Power House

Along with the fertilizers plants, Pakarab has its own Powerhouse, which has the capacity to produce 27 Mega Watts (Turbo Generators of 9 MW each) of electricity.

Based on Completion Costs:

Main Project Urea (Ammonia Rehabilitation)

1983 1988

Factors for the selection of location:

The reasons for its particular location selection were:

Near the grid station Abundant supply of natural gas (which is the raw material for the fertilizer) Close to main highway (transportation access) Out of city due to pollution hazards Easy safety and drainage

General information:
Registered Name:
Pakarab Fertilizers (private) limited.

Status:
A private limited company having only two partners.

Factory Location:

Pakarab Fertilizer, Khanewal Road MULTAN

Brand Name of Products:

KISAN (Urea, Nitro phosphate, Calcium Ammonium Nitrate)

Main Products:
Calcium Ammonium Nitrate. Nitro phosphate Urea

Intermediate products:
Ammonia Nitric Acid Nitric Acid Crystals.

Area Factory:

172 Acres

Housing colony: 130 Acres. Plants Starting on:

Power Plant June 24, 1978 Nitric Acid plant Sep11, 1978 Ammonia plant Sep 27, 1978

 Urea plant Oct 01,1978 CAN plant Nov 26,1978 NP pant Jan12, 1979

Capacities:
Ammonia Gas 313500 metric tons Nitric Acid 441600 metric tons CAN 450000 metric tons Urea 2400 metric tons

Raw Material Requirements:

Natural Gas 52.5 M.cubic feet (per day) Rock Phosphate 710 tons (per day)

Storage capacity:
N-P(unbagged) 30000 TONS CAN (unbagged) 27000 TONS Urea (bagged) 12000 tons CAN (bagged) 5000 tons Imported Rock 30000 tons

Bagging Facilities:
4500 tons per day

Foreign Sources of Finance:

ADNOC World Bank Asian Development Bank OPEC Special Fund City Corporation International Bank

TECHNOLOGIES AND COMMISSIONING:

The details of technology and suppliers of machinery for the complex are as follows: -

Plant name
1) Ammonia plant Catalytic Steam-Hydrocarbon Reforming process 2) Nitric Acid Plants

Technology
Pullman Kellogg's

a) C&I/Girdler process b) Uhde process

3) 4) 5)

Urea Plant Nitro phosphate Plant Calcium ammonium Nitrate plant

Ammonia stripping process Stamicarbon process Hoechst & Uhde processes

INPUTS:
The main raw materials used in various plants at Pakarab Fertilizers are as follows: Ammonia Plant Nitric acid plant Nitro phosphate plant Calcium ammonium Nitrate Urea plant dioxide Natural gas Ammonia gas Rock phosphate, nitric acid and ammonia gas Ammonia, Carbon dioxide, Calcium Nitrate Ammonia & Carbon

OUTPUTS:
The company produces Nitro phosphate (NP), calcium ammonium nitrate (CAN) and Urea. The annual capacities of the products are: -

Product
Ammonia Nitric acid Nitro phosphate Calcium Ammonium Nitrate

M/Tons
316,800 455,500 304,500 450,000

Urea 92,000

Organizational Set Up:

The policy of the company is determined by the two principal corporate shareholders, 6 representing NFC (Pakistan) and 5 nominated by ADNOC (Abu Dhabi). The board of directors, have appointed a full time chairman and a managing director, who is vested with adequate powers to manage the day to day affairs of the company on sound commercial lines. The Managing Director as Chief Executive is assisted by divisional heads i.e. General Manager (Mfg.), General Manager (Finance), and General Manager corporate & commercial (Company Secretary) and General Manager (Engineering). The Managing Director administers and is responsible for the efficient management and working of Plants. There are four major Divisions Manufacturing Division Internal Audit Division Finance Division Corporate Affairs & Commercial Division Under these divisions following departments are currently working

MANUFACTURING DIVISION:

Safe Operation & Environment Department Production (Plant and their relative storage areas) Materials Department Inspection Cell Technical & Planning Department Personnel & Industrial Relation Department Security Department General Administration Department Procurement / commercial Department

PRIVITIZATION:
On July 14, 2005 Pakarab Fertilizer was privatized at a cost of Rs14.125 billion under privatization policy of Government of Pakistan, acquired by Reliance Exports (Private) Limited under the umbrella of Fatima Group and Arif Habib Group. The company has provided employment opportunities to more than 2000 persons, which also includes indirect employment with contractors. In addition to above, establishment of this fertilizer complex has resulted in economic activity in terms of fertilizers and other factory related trading / supplies.

FINANCE DIVISION:
Management system Department Education Department Finance Department Accounts Department Internal Audit and commercial divisions are not further divided into sections or departments.

OPERATION STRATEGY:
Developing an operation strategy begins with a process called "Marketing Analysis' which categorizes the firm's customer and identifies their needs. This analysis occurs in conjunction with an analysis of external environment. Then firm formulates its corporate strategy, which provides the framework of goals for entire organization. Through this strategic planning each functional area is responsible for identifying ways to develop the capabilities it will need to implement functional strategies and achieve corporate goals. This input along with the current status and capability of each area is fed back into corporate strategy planning process to indicate whether corporate strategy should be modified. Operation strategy specifies how operation can help in implementing corporate strategy. Continuous cross-functional interaction must occur in implementing operation strategy. Operation strategy does not define the specific processes to be used or the specific resources to organization, rather it identifies the nature of the operation that are required to accomplish the goals of the organization. There are two types of operating strategy. Process focused strategy Product focused strategy Operation strategy in PAKARAB is product focused. It is producing standardized products. In this strategy, equipment and work force are organized around the product. This strategy fits high volume production of products.

BASED ON THE POSITIONING STRATEGY, THERE ARE THREE MANUFACTURING STRATEGIES:

Make to stock Make to assemble Make to order

Product focus manufacturing firms follow 'make to stock' strategy in which firms hold items in stock for immediate delivery. This strategy is feasible because most product focus firms produce high volumes of products. Operation strategy for PAKARAB is product focused so based on this strategy make to stock strategy is adopted. There is mass production in this organization so 'make to stock' is feasible.

ANNUAL BUDGET DEVELOPMENT PLAN CONTROL:

& LONG-RANGE FOR EFFECTIVE

Primarily the budget provides a well-organized plan based on facts. It provides definite objectives with regard to future operations & at the same time, executive policies for the future are formulated and clarified. The budget is a convenient yardstick for measuring the efficiency of operations as well as analyzing detailed segments of operations. Effective budgetary control strengthens the system of internal control. Frequent comparisons of actual figures serve to check the correct recording of transactions and events in the accounts.