Final Project: Analysis of Fauji Foods Limited and Nurpur Milk

This project provides a comprehensive analysis of Fauji Foods Limited (FFL), focusing on its Nurpur Milk product. The project begins with background information on FFL, including its origins and product portfolio, with a specific focus on Nurpur Milk. It delves into the market structure, identifying competitors and pricing strategies, and examines the demand and supply dynamics of packaged milk in Pakistan, including the creation of surplus. The project highlights the positive financial results of FFL, despite challenges in the FMCG sector, and analyzes determinants affecting Nurpur Milk's demand and supply, especially during the COVID-19 lockdown. Furthermore, it explores strategies FFL adopted to survive the lockdown period and discusses future plans for Nurpur Milk. The project concludes with recommendations based on the analysis and provides a detailed overview of the company's performance and market position.

Final Project
Fauji Foods Limited (FFL)
Product: Nurpur Milk
Group Members Registration No Contribution
Marium Muzammil 2011256 Background information about
the organization and its
product
Nayyar Abbas (Leader) 2011273 Market structure, competitors,
price, and financial results
Waleed Kamal - -
Marium Tauqeer 2011255 The demand & supply,
surplus, and the determinants
that affected Demand &
Supply
Ayesha Bushra 2011245 Survival in the lockdown
period and future prospects of
FFL and Nurpur Milk

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Table of Contents
EXECUTIVE SUMMARY: 3
(A) FAUJI FOODS LIMITED: 10
(B) MARKET STRUCTURE: 11
(C) DEMAND & SUPPLY AND SURPLUS: 14
(D) FINANCIAL RESULTS OF FFL 2021: 14
(E) DETERMINANTS THAT AFFECTED DEMAND & SUPPLY OF NURPUR MILK IN PAST 12 MONTHS: 15
(F) SURVIVAL IN THE LOCKDOWN PERIOD AND STRATEGIES THEY ADOPTED: 16
(G) FUTURE PLANS OF FAUJI FOODS FOR NURPUR MILK: 17
RECOMMENDATIONS: 18
REFERENCES: 19

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Executive Summary:
We chose Fauji Foods Limited as the company for our Project. It was founded by Noon Pakistan
Limited. The product portfolio of FFL consists of various edible products such as butter, juices,
and pasteurized milks: however, we have chosen Nurpur Milk as our product for this project due
to its history, problems, marketing, sales, loss, and promotion. Nurpur was gone through several
rebranding and its name was changed into “House of Nurpur”.
In the following report, we have also described the market structure, competitors, and prices set
by each brand. Our report well explains the demand and supply of the packaged milk across
Pakistan and how surplus was created. Moreover, the positive financial results are also quoted in
this report which explains the growth of FFL despite losses. There were determinants which
affected the demand and supply of Nupur Milk in the past 12 months due to Covid-19 period.
While fauji foods was having a tough time coping up with the fierce competition of the FMCG
sector, the covid-19 lockdown surprisingly brought positive results to the company and increased
it sales.

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Fauji group was founded by Noon Pakistan Limited.
Today, Fauji group operates in more than 18 industries. Moreover, their income goes to the
welfare serving at a larger extent to support health care centers, education institutions, and
activities across different centers. Divisions under fauji foundation are:
Fauji Fertilizer Bin Qasim Limited:
Fauji Fertilizer Bin Qasim Limited (FFBL) manufactures chemical fertilizers for the agriculture
sector of Pakistan.
Fauji Fertilizer Company
FFC produces and markets numerous fertilizers including urea, DAP, SOP, MOP, Boron and
Zinc. FFC markets their products under the name as "Sona"

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Fauji Kabirwala Power Plant
Foundation Power Company Daharki Limited
FFBL Power Company Limited
FPCL is the power plant in Pakistan’s lies in the power industry and has set up a coal power
plant in order to generate power and to sell.

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Fauji Cereals
One of the best consumer and trade brand of Pakistan . they are producing and marketing various
breakfast cereals and porridge products.
Foundation Gas
Located in Rawalpindi Pakistan the company is producing various Petroleum & Petroleum
Products in the Wholesalers Industry.

7
Fauji Cement Company Limited
A public listed company in Pakistan which is producing a wide variety of cement including
ordinary Portland cement and other special cement in Pakistan.
Mari Petroleum Company Limited
The mari pertroleum company is responsible for operating the pakistan’s second largest gas
reservoir at Mari Field.
Foundation Securities (Pvt.) Limited
One of the leading firms in Pakistan is the foundation securities.

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Fauji Oil Terminal and Distribution Company Ltd
Marine oil terminal is operated by the company which is located at Port Qasim. It is responsible
for handling the furnace oil, crude oil and high speed diesel (HSD).
Askari Bank Limited
A public limited company owned by fauji foundation. Askari Bank Ltd is a commercial and
retail bank in Pakistan.

9
Fauji Meat Limited
Under the umbrella of fauji foundation the fauji meat limited is the leading Halal Meat
processing facility.

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(a) Fauji Foods Limited:
One of the divisions of Fauji group is Fauji Foods.
In 2015, Fauji Foods Limited was founded and was known as the
Noon Pakistan Limited.
After Fauji group took over the opportunity to buy Noon Pakistan,
they started from Dairy and then gradually expanded to other food categories. With further
evaluation and detailing, it was founded to be pretty attractive than starting Green Field
operations.
Noon Pakistan, being one of the oldest companies of Pakistan, was having strong products like
Nurpur milk and Nurpur butter. Hence, getting hold of it gave Fauji group a massive opportunity
and they started their business in the dairy sector. The company is now called FAUJI FOODS
LIMITED.
Fauji Foods Limited is one of Pakistan’s prominent Food and Beverage providing company.
Their core belief is to ‘Serve’ the nation and its people with non-bargain able and
uncompromised nutrition, their health, energy values and taste concerns.
Pakistan being the world’s third biggest milk producing country, Fauji foods now had the biggest
opportunity to provide the nation with best of the quality meanwhile working on balanced
nutrition. Fauji foods are currently working with both dairy and non-dairy products.
Noon Pakistan’s Nurpur which was founded in 1966 was relaunched by the Fuji Foods as the
House of Nurpur in May 2016. Nurpur became nation’s favorite very fast as compared to other
dairy products
Under House of Nurpur comes Nurpur Original UHT Milk, Fresh Pasteurized Milk by Nurpur,
Nurpur Low Fat Milk, Nurpur Butter, Nurpur Cheese and Nurpur Flavored Milk.
In Feb 2016 Fauji Foods also introduced a brand the name of Dostea for tea whitener and
creamer. The product under this brand is Dostea, a liquid tea whitener. It has tag line

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#AikCupAur. They are delivering the right balance of taste for the tea, which makes you urge for
one more cup of tea.
In 2017 the brand for juices Must juices was introduced. They are producing and marketing
MUST fruit drinks is a range of fruit drinks.
(b) Market Structure:
The market structure of Fauji Foods Limited (FFL) is a pure competitive. If we consider Nestle
Pakistan then the profit recorded for 2020 was only 12,232 million which is less than FFL’s
profit of 2020. Another reason for FFL’s Nurpur milk being in a pure competitive market is the
companies offering independent milk products in large national markets including Nestle, Good
Milk, Day Fresh, Olpers, and Haleeb.
Dec-19 Dec-20 (Jan-Mar) 2021
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
5744872
7373162
2377316
678827
62262 263563
Revenue (million)
Gross Profit
Moreover, there are number of firms offering standardized product; means identical milk
products, but the prices varies. The price range of Milk Pak, Day Fresh, and Olpers lies between
Rs. 145-160 whereas the price of Nurpur Milk lies between Rs. 160-165 for 1 liter. This means

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that people have a lot of substitutes available in low prices such as Milk Pak, Day Fresh, and
Olpers due to lower prices.
Due to variations in prices of different firms, FFL’s milk would affect the market demand in a
pure competitive market. If people are looking for a milk product in the price range of Rs 120-