EPCL is a subsidiary of Engro Corporation and is the only integrated chemical complex in Pakistan, it is involved in the manufacturing, marketing and distribution of quality Chlor-Vinyl allied products and PVC. The Company was set up in 1997 by the name of Engro Asahi Polymer and Chemical Ltd, it was a joint venture between Engro Chemical (50%), Asahi Glass Company (30%) and Mitsubishi Corporation (20%) to set up a 100,000-ton capacity PVC plant at Port Qasim. The plant came into commercial operation in 1999.
In 2006, EPCL embarked on the journey to integrate from a basic PVC manufacturer to an integrated Chlor Vinyl complex making its own intermediaries. At this phase, the Company invested approximately USD 250 Mn in the business. The expansion and backward integration project enabled the Company to enhance PVC capacity to 150KT, produce VCM and EDC (primary raw material) in house, and enter into chlor alkali business. It was in 2006 when the name of the Company was also changed to Engro Polymer & Chemicals Limited as Asahi Glass share in business was bought over by Engro Corporation.
EPCL believes that Pakistan provides an unparalleled opportunity in Chemical space, at present Pakistan's per capita consumption of PVC is approximately 1.2 kg / capita per year, which is significantly lower than its regional peers ie India - 2.3 kg; Turkey - 3.5 kg; and China is at 9.5 kg. Primary reason for low per capita consumption is lack of awareness and limited concern for quality in public sector projects.
As awareness spreads and new applications cross inertia, demand growth will compound. Growth will stem from three avenues, one, our economy is consolidating, second, there is a housing shortage and with government focus and interest in the sector, it can be a catalyst for PVC growth, lastly, PVC is now not limited to just pipes and fittings, PVC is everywhere, in flooring, roofs, shoes, packaging and you name it.
Considering the opportunity and our conviction in Pakistan, the Board of Directors approved the vision to "Lead Pakistan in Polymers & Allied Chemicals with International Footprint". In line with our vision the Company embarked the next phase of PVC expansion whereby enhancing PVC Capacity by 50%, consolidate its position in Chlor Alkali space and recently announced entry into allied chemicals ie Hydrogen Peroxide. The management remains committed to explore opportunities in line with our vision, while remains focused towards operating the base business efficiently and with high safety standards.
Having said this, we would like to draw attention of policy makers towards development of Chemical sector in Pakistan, at present, the total chemical sector of the country hovers around - USD 2 Bn, while it has crossed USD 55 Bn in India, the delta between the two countries surpasses that of population and we must take actions to attract investment in this segment. Globally, since petrochemical is a very capital-intensive business, government nurturing is required, which is something that we seek here and it is needed to boost growth for the sector.
Engro Polymer & Chemicals Limited strongly endorses its triple bottom line philosophy in true essence - People, Planet and Profit are critical and indispensable elements for its growth and success. Over the years the Company has invested significant amount towards community development in the form of providing access to clean drinking water, health and education and remains committed to work as a responsible citizen.
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