President's Message

Dear Shareholders,

The secret of an organization’s success in the dynamic chemical value chain business is powered by innovation and operational excellence. I am pleased to note that the innovation used in the last year to iteratively improve across the board, to optimize operations, to refine products and to create transparency and efficiencies in the supply chain meant 2017 was a breakthrough year where Engro Polymer posted strong business results. We executed well against our priorities, advanced our strategy, and outperformed our competitors. None of this was incidental. The leadership team has done an excellent job of prudent and disciplined management. They have handled the complexity of input prices in a proactive process driven manner, enabled a performance driven culture and have created a deep bench of opportunities.

The Company posted Profit After Tax of PKR 2,053 million compared to Profit After Tax of PKR 660 million in 2016. The Company was also able to improve its financial health through well timed measures resulting in an upgraded rating of “A” for Long Term and “A1” for Short Term investments by PACRA. Along with solid financial performance Engro Polymer remained steadfast to HSE and achieved over 12 million man-hours without loss work injury. Operationally the plant continued to operate reliably and achieved highest ever production of PVC and VCM, with all operational ratios on an upward trajectory. During last quarter, the company completed debottlenecking activity on PVC that will result in enhanced production from 2018.

Engro Polymer is committed to the concept of “shared value” and impacting positively the communities its businesses operate in. During the year, the Company set up multiple medical camps providing free healthcare services to 4,800 people and increased its investments in supporting students and schools along with other initiatives in health, education and livelihood. The times of change we find ourselves in are unceasing. But innovation crafts value from exactly such times. Pakistan has one of the lowest per capita consumption of PVC in the region, and innovation in business practices will unlock persistently high growth and consistently create high value for our shareholders. The new Engro Polymer is more resilient, focused and capable of managing both operational excellence and its dynamic strategic roadmap. We feel this is the right time to invest to allow us to lower cost to serve, improve margins and capture market share for the long term. The Board of Directors is very pleased to approve a capital expenditure of PKR 10.3 billion. This amount will be used to launch additional products and in launching several reliability, efficiency and productivity projects, allowing Engro Polymer to extend its leadership position in the market and continue on the path of value creation for its shareholders.


CEO's Message