Chawla Fertilizers

Though Pakistan is also the manufacturer of both Nitrogenous and Phosphate fertilizer, yet its production is not sufficient to meet country's requirements. Therefore both varieties of fertilizer are also imported to make up the deficiency.

For Phosphate fertilizer, particularly Di-Ammonium phosphate (DAP), major portion is dependent on imports. Since there is no restriction on private importers to distribute this commodity through their own system, therefore their own system, therefore it is being imported by manufacturers as well as by private sector.

Annual requirement of DAP is around 1.5 million tons. Local production is about 0.6 million tons per year, which still leaves a quantity of about 0.9 million tons to be imported.

Chawla International is one of the major importers and distributors of fertilizer in Pakistan. We are importing all kinds of fertilizers i.e. DAP, Ammonium sulphate, sulphate of potash and muriate of potash, etc.

Details are as follows:

A. Volume of import:

Though the use of DAP is regular throughout the year, yet there are two main seasons of its use in Pakistan i.e. RABBI (winter) and KHARIF (summer). The use of this commodity is around one million tons in RABBI season which extends from September to March and around 0.5 million tons in KHARIF season which is from April to August. Imports are, therefore to be lined-up before the start of each season.

We keep close watch on national inventory, expected local production, total seasonal requirement and actual deficiency. The import is therefore arranged keeping in view the actual import requirements and the line-ups of other importers.

Generally the company's import is two to three ship-loads in a year (i.e. 70,000 to 80,000 tons), mostly in RABBI season. Since international prices continuously fluctuate, therefore the financial involvement ranges between USD 44 million and 56 million depending on prevailing CFR prices at the time of import. There is however no particular restriction or limit. The Company can go for more import if there is a need due to less local production, less by other importers or higher demand of users.

Moreover, since Chawla International has a tradition of keeping regular inventory through-out the year for its regular end users, therefore additional import can be arranged at any time during the year.

B. Source of interest:

There is no specific manufacturer or a specific country for import. There is however a very strong competition in the domestic market. Moreover the end user is also choosy. This situation binds the company to look for best quality and competitive prices at the specific time of import. Not only the Government of Pakistan keeps an eye on quality, particularly on nutrient contents but the user is also conscious of colour, free flowing condition, moisture contents and the granulometry of the product.

We contact the international market as and when import is planned and concludes deals keeping in view above factors

We are therefore well known or clean deals in the international market.

C. Import Method and Quality control:

I) Procurement is done from well-established producers / suppliers on the basis of sight L/C

II) Import is done in full shiploads of 35,000/ 40,000 tons in bulk on CFR terms. Nomination of ships is done by shippers and fixtures are finalized in consultation with the company and its consent.

III) Pre-shipment inspection is arranged at load-port through well reputed international inspection agencies such as SGS, Bureau VERITAS and Inspectorate etc. This inspection is arranged by shippers strictly in consultation with the company.

IV) Chemical analysis is also carried out after arrival of the commodity at Karachi.

V) Government also takes Samples from the company's warehouse and the dealers Warehouse to check at their own laboratories.

D. Bags and Bagging:

I) The Company has its own Bags manufacturing plant in Karachi near the seaport. The bags are made of prime quality polypropylene material. Polyethylene inner liners are inserted in the bags before filling of fertilizer. The bags are made with Company's own design and colourful printing.

II) Besides company's monogram; weight, country of origin and nutrient contents of product are also on the bags.

III) Bagging is done at quayside through automatic bagging and weighing equipment with precise weight of 50 Kgs in each bag.

IV) During bagging , weight of every 10th / 15th bag is counter checked at platform weighing scale, placed alongside the bagging plants to ensure correct weight.

V) Complaints, if any, from the local buyers/user are cheerfully entertained and improvements is made where necessary. In case, any deficiency is reported in any bag by the end users or dealers, the company compensates for it.

E. Warehousing:

I) At Chawla international we have large warehouses near Karachi seaport. Warehouses are also available in different agriculture areas of the country where some quality is also stored to meet immediate demand of the buyers on the spot

II) After bagging at quayside, the commodity is moved to warehouses through trucks in Karachi or other stores of the company in the country.

III) Sale is done both direct from port as well as from warehouses.

IV) We traditionally maintain a reasonable inventory round the year.

F. Marketing:

I) We enjoy a strong dealer's network throughout the country.

II) Company extends reasonable interest-free credit facility to its dealers.

III) Any complaints of dealers/users regarding quantity and quality are properly looked into and disposed off to the satisfaction of the persons concerned.

IV) We maintain a high reputation in the domestic market for quality of product and correctness of weight in the bags.

V) We at Chawla International welcome suggestions for improvements in its working or any other aspect of marketing.