KARACHI: Pakistan’s largest conglomerate, Engro Corp, is looking to expand into new markets, including the Middle East, Central Asia and Africa, the chemicals-to-energy company’s largest investor said on Tuesday.
Speaking to Reuters in a rare interview, Samad Dawood, vice chairman of Dawood Hercules Corp, which owns 40 per cent of Engro Corp, said the company was also considering global liquefied natural gas (LNG) opportunities and hydrogen energy.
The expansion plans include looking at telecoms infrastructure in the Middle East, North Africa, and Central Asia while it is looking at Africa to expand its fertiliser businesses, he said.
Engro Corp has a market capitalisation of Rs193 billion ($694m) on the Pakistan Stock Exchange and assets of Rs802bn ($2.9bn), according to public data.
The group has businesses across multiple sectors in Pakistan, including energy, fertiliser, telecommunications and consumer goods.
It owns 56pc of Pakistan’s first LNG terminal, Engro Elengy Terminal Pakistan, established in Karachi in 2015. Dutch energy logistics giant Royal Vopak owns the remaining 44pc.
The terminal fulfils 15pc of Pakistan’s natural gas demand.
Mr Dawood said Engro will continue to invest in the energy sector despite selling its coal-based assets and is exploring new avenues for sustainable energy production. He said the company was talking to technology providers in the hydrogen energy sector to figure out how to use ammonia as an energy transition solution.
Mr Dawood added that Pakistan was far from being energy-secure and there were plenty of opportunities to invest further in the power sector.
Pakistan has moved towards reliance on LNG after its domestic gas supplies dwindled fast as consumption in the industrial and residential sectors increased.
‘Dreamer’
Mr Dawood said the global push was inspired by his late elder brother Shahzada, who perished last year in the ill-fated Titan’s voyage to explore the Titanic wreckage — an accident that made global headlines when the deep-sea submersible imploded and killed all five people on board.
“He (Shahzada) was much more of a dreamer, pushing us to become more international, building that curiosity, and engaging with the outside world,” Mr Dawood said.
The Dawood family also faced a protracted legal ordeal in Pakistan, where the company was accused of getting illegal favours from the government.
The years-long case finally ended last week when the National Accountability Bureau dropped it entirely.
Mr Dawood says the matter hurt the family deeply and even impacted their businesses and potential investors.
He said the company’s plans to push ahead are taking shape. On Monday, the boards of Engro and Dawood Hercules approved in principle a restructuring plan to allow them more capital flexibility.
Mr Dawood said the restructuring will allow for participation in “opportunities that the entire economy provides,” adding that the boards wanted the flow of capital to be completely seamless between the two organisations.
Published in Dawn, May 8th, 2024
