An Introduction to Engro Foundation
IFC Sustainability Exchange: Vocational
Training
Improving Local Economies Through Skilled
Labor
June 2013
Contents
•
Introduction
•
Engro Foundation: What We Do
•
Vocational Training
•
Dairy Value Chain
•
Rice Value Chain
Engro Corporation has 3500 employees and revenue of Rs. 125
billion (2012) across the petro-chemical & dairy food industry…
Financial Performance – 2011 (Rs. Billion)
Subsidiary
Revenue
Profit
After Tax
Our History
1957
Pak Stanvac, a 50:50 Esso-Mobil JV discovers Mari Gas Field in Upper Sindh
1965
Esso Pakistan Fertilizer Co. Ltd is incorporated
1978
Esso becomes Exxon
1991
Exxon divests & employees lead MBO to form Engro Chemical Pakistan
1997
Engro sets up chemical storage facility and forms Engro Vopak Terminal
1999
Engro the first PVC manufacturing facility and forms Engro Asahi Polymer
Fertilizer
30.9
-2.9
Food
40.9
2.6
Polymer
19.7
0.0
EXIMP
11.7
2.0
2005
Engro diversifies into Dairy and forms Engro Foods
Powergen
20.9
-0.4
2010
Engro Foundation becomes the vehicle for all social spend
Other
2.4
1.5
2010
Engro Chemical becomes a holding company and renamed Engro Corporation
2010
Engro Powergen builds 226MW power plant out of permeate gas
2011
Engro Fertilizers builds the largest urea train plant in the world
2012
Engro Corporation passes Rs. 100 Billion mark in revenue
Total
125.2
1.3
Engro Foundation (EF) is Engro’s platform for all social
investments annually spending Engro Corp’s 1% Profit Before Tax
Mission : EF is committed to the sustainability of our businesses by
investing in our communities around our plants and in our business value
chains
1) Livelihood & Skill Development
2) Education
2) Health
4) Community Physical Infrastructure
A Collaborative Approach:
Our approach is based on a principle of
business inclusiveness where we work with funding and implementing partners
who complement our resources and expertise into our social projects (eg. social
mobilization, skills development, agri value chain etc).
Our Thematic Areas : CSR Spend Rs. 114Mn (2012)
Livelihoods
Education
• Dairy Livestock Program
• Vocational (3-12 month)
• Technical Diploma (3 Year)
•Primary Education
•Secondary Education
•Technical Education
•Around 3Km around our plants
CPI
Health
•Community & Physical
Infrastructure
• Solar Lighting
• Sanitation
• Preventive & Curative Health
Engro’s Inclusive Business Framework
Value
CSR as Value
Creation
CSR as Risk
Management
CSR as
Corporate
Philanthropy
Purpose
Benefits
Impact
Innovative and
promotes
sustainable
business model
Fundamental
strategic and
operational impact
•
•
•
•
•
Compliance
Medium to high
strategic and
operational impact
• Mitigates operational impact
• Mitigates operational risks
• Supports external relationships
Providing
funding and
skills
Little strategic and
operational impact
•
•
•
•
•
•
Shared value (business and communities)
Promotes competitiveness and innovation
Integrates business into the community
Develops Human Capital
Incorporated into the Business Strategy
Sponsorships
Short term benefits
Limited funds available
Diluted impact as budget allocated to many
Corporate competencies not fully utilized
Misalignment- business and social responsibility strategies /
functions
• Results in minimal social and business impact
Engro Foundation– Footprint
Across Pakistan…
Vocational Training
8
Ghotki, Upper Sindh : High Unemployment and Unskilled Labor
•
District Ghotki, Upper Sindh
•
•
•
•
Ghotki is located 1.5 hours North-East of Sukkur
There is a population of about 1 million people spread
over an area of 6975 sq km
Although it is an industrial heartland of 14 major Oil &
Gas Companies, over 80% of the population is rural
At the heart of an industrial cluster
•
•
Ghotki
Approx. Population
Youth Segment (15-30 years)
Rural Population
Ghotki is at the heart of an industrial cluster which
contains 14 of the largest Oil & Gas companies in
Pakistan, including Fauji Fertilizer, Mari Gas, Fatima
Fertilizer and Engro Fertilizer/Power
A survey conducted by the industry showed a demand
for 200 Trade Apprentices per year from the Oil & Gas
Sector
14 Oil & Gas companies within a 50-60 km radius
1 million
35%
Over 80%
Poor Social Indicators in Ghotki but connected to Industrial Cluster

The following characteristics
provide a ground for VoTech:
–

The largest demographic segment
of society is youth between the
age of 15-30 years old
–
Unemployment rates are
extremely high
–
A large majority of the working
population is involved in daily
wage labor which can be
upgraded to semi-skilled levels
Rationale was to develop technical
skills that could be linked with the
industry towards a sustainable model
–
3-12 month vocational training
–
3 year accredited technical
diploma
Percentage
Population
Estimated PoP
Size
% population 15-30 years
34%
340,000
Men Unemployed %
35%
350,000
At-home Women %
94%
940,000
Ghotki Statistics
Teachers/schools Ratio
2.6
Private/Govt. Jobs
23%
34,500
Skilled Labour
3%
4500
Daily Wage Labour
57%
85,500
Agri-Livestock
10%
15,000
Business/SMEs
7%
10,500
Note: Based on Engro Foundation Fall 2011 Survey
A Vocational Training Center was set up in 2011 in partnership
Features
Details
Location
Dharki, District Ghotki, Sindh Pakistan
Partners
Pakistan Industrial Development Corporation, Engro Corp., Mari Gas
Corp. Ltd (MGCL), Descon Engineering (DESCON), Saipem of Italy
(SAIPEM) partnered to form PCESSDC (Pakistan Chemical & Energy
Sector Skilled Development Company)
Courses Offered
3 year diploma : Chemical & Mechanical Engineering.
Instrumentation 2012, Electrical 2013 & Computer Science 2014. 60
students enrolled. Curriculum subjects aligned with market and
industry needs of the area
Current Enrollment
135 students (expected to cross 300 by 2015/6)
Facilities Expected:
Hostel, internet facility, laboratory & library
Curriculum
Accredited by the Sindh Technical Board & Guild UK by end of the
academic year
What is PCESSDC?

Pakistan Chemical & Energy Sector Skills Development Company (PCESSDC)
is a non profit, private public partnership company (registered under section
42 of 1984) established in 2009

PCESSDC TTC was set up by PIDC (Rs. 100m), Engro Corporation (Rs. 44m),
Mari Petroleum Company (Rs. 30m), DESCON (Rs. 5m), Saipem (€250,000 in
kind) and STEVTA (Rs. 25m) later on joined by USAID (100 M for Hostel
Construction) & DEG of Germany (EUR 200,000.00) for Mechanical Lab

PCESSDC TTC currently offers 3-year diplomas in Mechanical and Chemical
Engineering and as a joint venture with STEVTA 3 – 6 months short courses for
vocational training
Mandate

Its mandate is to promote, facilitate and provide education and training
to a young and growing rural population in various disciplines of the
Chemical and Energy sector in Pakistan

PCESSDC focuses on the provision of employment to the young and
expanding rural population of Pakistan.

It aims to invest in the productivity of the rural community by filling the
education gap and equipping graduates with the manufacturing and
technical skills required to build a strong industrial economy.
Some Glimpses