KARACHI: The biggest investor in the chemicals-to-energy corporation announced on Tuesday that Engro Corp, the biggest conglomerate in Pakistan, is seeking to enter new areas, such as the Middle East, Central Asia, and Africa.
Samad Dawood, vice chairman of Dawood Hercules Corp., which owns 40% of Engro Corp., stated in a rare interview with Reuters that the company is also thinking about global liquefied natural gas (LNG) potential and hydrogen energy.
He noted that as part of its expansion goals, the company is looking at telecom infrastructure in the Middle East, North Africa, and Central Asia, as well as expanding its fertiliser businesses in Africa.
Public data indicates that Engro Corp has assets of Rs802 billion ($2.9 billion) and a market capitalization of Rs193 billion ($694 million) on the Pakistan Stock Exchange.
The group operates in several industries in Pakistan, such as consumer goods, telecommunications, electricity, and fertilizer.
It holds 56% of Engro Elengy Terminal Pakistan, Pakistan’s first LNG terminal, which was built in Karachi in 2015. 44 percent is owned by Dutch petroleum logistics firm Royal Vopak.
Fifteen percent of Pakistan’s natural gas needs are met by the terminal.
Despite selling its coal-based businesses, Mr. Dawood stated that Engro will keep making investments in the energy sector and is looking at new ways to provide sustainable energy. He noted that in order to determine how to employ ammonia as an energy transition solution, the company was in communication with technology vendors in the hydrogen energy space.
Mr. Dawood continued by saying that there were many chances to increase investment in the power industry and that Pakistan was far from being energy-secure.
Pakistan’s local gas supplies rapidly decreased as demand rose in both the industrial and residential sectors, forcing the country to rely more and more on LNG.
Dreamer
Mr. Dawood claimed that the worldwide effort was motivated by his late older brother Shahzada, who died in the tragic Titan expedition to investigate the Titanic ruins last year. The incident made headlines throughout the world when the deep-sea submersible broke apart, killing all five passengers.
“He (Shahzada) was much more of a dreamer, encouraging us to develop that curiosity, go outside, and interact with the world,” Mr. Dawood remarked.
The Dawood family also had to endure a drawn-out court battle in Pakistan, where the business was alleged to have received improper government favors.
The National Accountability Bureau completely dismissed the case this Monday, bringing an end to the lengthy legal battle.
According to Mr. Dawood, the situation had a serious negative effect on the family’s enterprises and prospective investors.
The company’s intentions to advance are taking form, he said. A restructuring plan to provide Engro and Dawood Hercules greater capital flexibility was agreed in principle by both boards on Monday.
Participation in “opportunities that the entire economy provides” will be possible thanks to the restructuring, according to Mr. Dawood. He also stated that the boards intended for there to be a fluid movement of funds between the two organizations.
