pakarab

8/6/2019 pakarab

http://slidepdf.com/reader/full/pakarab 1/10

ACKNOWLEDGEMENT

In the name of ALLAH, the all corroborate possessor of majesty and splender,

the omnipresent, The whole benevolent and ever merciful. Who’s 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 ABDI”for all his full moral support

as well as his hopeful suggestions whenever needed.

8/6/2019 pakarab


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

8/6/2019 pakarab


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 fertilizer’s 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 1983

Urea (Ammonia Rehabilitation) 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

8/6/2019 pakarab


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

8/6/2019 pakarab


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

8/6/2019 pakarab


TECHNOLOGIES AND COMMISSIONING:

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

follows: -

Plant name Technology

1) Ammonia plant Pullman Kellogg's

Catalytic Steam-Hydrocarbon

Reforming process

2) Nitric Acid Plants a) C&I/Girdler process

b) Uhde process

3) Urea Plant Ammonia stripping process

4) Nitro phosphate Stamicarbon

Plant process

5) Calcium ammonium Hoechst &

Nitrate plant Uhde processes

INPUTS:

The main raw materials used in various plants at Pakarab Fertilizers are asfollows: -

Ammonia Plant Natural gas

Nitric acid plant Ammonia gas

Nitro phosphate plant Rock phosphate, nitric acid

and ammonia gas

Calcium ammonium Nitrate Ammonia, Carbon dioxide,Calcium Nitrate

Urea plant Ammonia & Carbondioxide

8/6/2019 pakarab


OUTPUTS:

The company produces Nitro phosphate (NP), calcium ammonium nitrate

(CAN) and Urea. The annual capacities of the products are: -

Product M/TonsAmmonia 316,800

Nitric acid 455,500

Nitro phosphate 304,500

Calcium Ammonium Nitrate 450,000

Urea 92,000

Organizational Set Up:

The policy of the company is determined by the two principal corporateshareholders, 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 workingof 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

8/6/2019 pakarab


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.

8/6/2019 pakarab


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 firmformulates 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 inimplementing 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

8/6/2019 pakarab


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 & LONG-RANGE

DEVELOPMENT PLAN FOR EFFECTIVE

CONTROL:

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.

pakarab

Documents