Dawood Hercules

Dawood Hercules

Headquarters of Dawood Hercules in Karachi
Formerly	Dawood Hercules Chemicals Limited (1968–2011)
Company type	Public
Traded as	PSX: DAWH KSE 100 component
ISIN	PK0017501013
Industry	Fertilizer
Founded	17 April 1968; 56 years ago (17 April 1968)
Founder	Ahmed Dawood
Defunct	2024
Fate	Merged with Engro Corporation
Successor	Engro Holdings
Headquarters	Dawood Centre, M.T. Khan Road, Karachi
Area served	Pakistan
Key people	Hussain Dawood (Chairman) Mohammad Shamoon Chaudry (CEO)
Revenue	Rs. 482.488 billion (US$1.7 billion) (2023)
Operating income	Rs. 121.032 billion (US$420 million) (2023)
Net income	Rs. 8.322 billion (US$29 million) (2023)
Total assets	Rs. 815.792 billion (US$2.8 billion) (2023)
Total equity	Rs. 232.897 billion (US$810 million) (2023)
Owner	Dawood Lawrencepur (16.19%) Dawood Investments (9.85%)
Number of employees	21 (2023)
Subsidiaries	Engro Corporation (40%)
Website	dawoodhercules.com
Footnotes / references Financials as of 31 December 2023^[update] [1]

Dawood Hercules Corporation Limited (Urdu pronunciation: [dɑːˈuːd hərˈkjuːliːz] dah-OOD HER-kyoo-leez) was a Pakistani holding company headquartered in Karachi.

History

Fertiliser factory in Chichoki Mallian, Sheikhupura district

Dawood Hercules Corporation was incorporated in 1968 as Dawood Hercules Chemicals Limited, a joint venture between Dawood Group and Hercules Inc., each contributed 40 percent of the equity while 10 percent each was subscribed by the International Finance Corporation and the general public following its initial public offering on the Karachi Stock Exchange.^[2][3] The planning of the project began in 1966 when both the parties requested the World Bank to finance the project.^[2] In August 1967, the National Economic Council of Pakistan gave its approval to the project.^[2] The fertilizer plant, with a capacity to manufacture 345,000 tons of urea per annum, was constructed in Chichoki Mallian, Sheikhupura, Punjab, at a total cost of $78.2 million; with a loan component of $32 million, provided by the World Bank.^[2][4]

In 1997, Dawood Hercules began equity investments in Engro Corporation, and acquired 27 percent of its shares.^[5] In 2002, Dawood Hercules made further investment in the Engro Corporation and since then has increased its shareholding to 40 percent.^[6]

In 2003, Dawood Hercules acquired a partial stake in the Sui Northern Gas Pipeline and owned up to 10 percent of its shares.^[7]

In 2010, Dawood Hercules Chemicals was de-merged and became Dawood Hercules Corporation. By 2011, Dawood Hercules' fertilizer business was facing difficulties in procuring gas.^[8] It undertook a failed sale of DH Fertilizers to Pakarab Fertilizers.^[8] In 2012, Dawood Hercules acquired a minor stake in Hub Power Company.^[9][10]

In 2015, Dawood Hercules sold its fertilizer manufacturing company to the Fatima Fertilizer Company.^[11][12] The shares of Hubco were sold in 2018.^[13]

In October 2022, Dawood Hercules sold its wholly-owned subsidiary Empiric AI, which solves complex industrial problems through software products like data analytics and artificial intelligence, under a share swap agreement to Avanceon.^[14]

In December 2024, Engro Corporation was merged with Dawood Hercules to form Engro Holdings.^[15]

Shareholding

Dawood Hercules was majority owned by Dawood family.^[16][17]

Leadership

Dawood Hercules' board of directors, according to Pakistan's Companies Act of 2017,^[18] comprises 6 non-executive, 3 independent, and 1 executive director.

Chairman of the board of directors:

• Ahmed Dawood, (1968–2002)
• Hussain Dawood, (2002–2024)

Vice Chairman of the board of directors:

• J. M. Eagen (1973)
• Gordon M. Hoffmann (1975–1979)
• Walter H. Duncan (1981–1988)
• Arden B. Engebretsen (1989–1990)
• Shahzada Dawood (2018–2021)
• Samad Dawood (2021–2024)

CEOs:

• Mohammad Shamoon Chaudry (2022–2024)

See also

• List of largest companies in Pakistan

References

1. "Dawood Hercules Annual Report 2023". Retrieved 30 November 2024.
2. "Dawood Hercules Chemicals Limited Urea Project - World Bank" (PDF).
3. Ahmad, Mumtaz (December 1987). "Agricultural research in Pakistans private sector" (PDF). Retrieved 20 June 2023.
4. "World Bank loan" (PDF).
5. Hussain, Dilawar (4 April 2003). "SECP, SBP to settle Engro takeover issue". Dawn. Retrieved 3 June 2021.
6. Hussain, Dilawar (22 July 2012). "Investor mopping up shares in Engro". Dawn. Retrieved 3 June 2021.
7. Hussain, Dilawar (12 June 2003). "Dawood Hercules gets 61m shares of SNGPL". Dawn. Retrieved 3 June 2021.
8. "Strong profits at Engro allow Dawood Hercules to pay off debts early". Profit by Pakistan Today. 3 January 2021. Retrieved 31 May 2022.
9. Hussain, Dilawar (12 June 2012). "Hub Power Company is sold". Dawn. Retrieved 3 June 2021.
10. "Dawood conglomerate: Group acquires stake in Hubco". The Express Tribune. 11 June 2012.
11. "FFC acquires DH Fertilizer". The News International. 26 June 2015. Retrieved 3 June 2021.
12. "Birth to speculation: Dawood Hercules cleans hands off fertiliser plant". The Express Tribune. 15 June 2015.
13. Farooq, Mohammad (1 February 2018). "Mega Conglomerate to acquire 15.8 percent stake of Dawood Hercules in Hubco". Profit (Pakistan Today). Retrieved 3 June 2021.
14. Hassan, Taimoor (16 October 2022). "The rising Octopus". Profit by Pakistan Today. Retrieved 16 July 2023.
15. Tirmizi, Farooq (30 December 2024). "The Engro restructuring". Profit by Pakistan Today.
16. Hussain, Dilawar (22 March 2021). "Who's who of the PSX". Dawn. Retrieved 3 June 2021.
17. "The Dawoods' growing bet on Pakistan". The Express Tribune. 28 September 2015.
18. "Companies Act, 2017" (PDF). Na.gov.pk. National Assembly of Pakistan. Retrieved 3 June 2021.

External links

• Official website