Case
ENGRO CHEMICALS PAKISTAN LTD. - DIVIDEND POLICY
INDUSTRY :-
AREA :FINANCE
ORGANIZATION :-
LENGTH :13
LUMS No :02-606-98-1
PUBLICATION YEAR : 1998
DESCRIPTION
ABSTRACT:
Engro Chemicals Pakistan Limited was the second largest urea manufacturer in Pakistan. The company was previously under the management control of Exxon Chemicals Limited. In 1991, Exxon decided to divest its urea business globally, selling its 75% equity in Pakistan to employees. Despite strong urea demand in Pakistan, Exxon did not focus on capacity expansion. After the employee buyout Engro Chemicals Pakistan Limited (Engro), the new company, embarked upon an ambitious capital expenditure which did not allow it to maintain a high payout pattern followed by Exxon.