Fauji foundation.. a story of dedication and hard work

[Fieldmarshal]

Fauji Foundation (also known as Fauji Group), is amongst the largest business conglomerate in Pakistan which "Earns To Serve" the interests of ex-servicemen.

• • It is basically a Charitable Trust founded in 1954 for the welfare of the ex-servicemen and their dependents.
  • It is incorporated under the Charitable Endowments Act 1890.

The history of Fauji Foundation dates back to 1945, when a Post War Services Reconstruction Fund (PWSRF) was established for Indian War Veterans who served the British Crown during WW-II. At the time of partition (1947) when Pakistan came into being, the balance fund was transferred to Pakistan in the proportion of its post WW-II veterans. Till 1953, the fund remained in the custody of the civilian Government, when in 1954 it was transferred to the Army.
The Army instead of disbursing the balance fund of about Rs 18.2 millions (USD 0.2 million) among the beneficiaries, invested it in establishing a Textile Mill. Later from the income of the textile mill, it established first 50 bedded TB hospital at Rawalpindi.
Fauji foundation is proud that from Rs 18.2 million in 1953, it today runs more than 18 industries, the income from which is utilized to serve about 9 million beneficiaries (5 % of country's population). Generally, more than 80 percent of the income goes towards the welfare activities every year.
The welfare is conducted through health care, education and vocational/technical training. To a limited extent welfare is also a by- product of employment generated for the beneficiaries through commercial and welfare activities. Presently, the welfare is conducted through 115 medical facilities, 100 Schools & Colleges, 65 Vocational Training Centers and 9 Technical Training Centers.
The foundation also provides cheap and affordable housing to army personnel, so much that every retired military personnel own at least house or a piece of land. They also provide free medical and free or subsidised education to children of ex or on duty servicemen. The organization also makes sure the servicemen when not deployed in far off places, live well in good areas.
Fauji foundation makes their money from business ventures in Pakistan and abroad and is run by retired military officers.

The commercial activities are generated through two categories of projects namely:

• • Fully Owned and Affiliated Projects
  • Associated Companies

Fully Owned Projects

• Fauji Cereals
• Foundation Gas
• Overseas Employment Services
• Fauji Foundation Experimental And Seed Multiplication Farm

Associated Companies
Following companies are considered as Associated Companies

• Fauji Fertilizer Company Limited
• Fauji Fertilizer Bin Qasim Limited
• Pakistan Maroc Phosphore, S.A., Morocco
• Fauji Cement Company Limited
• Askari Cement Company
• Mari Petroleum Company Limited
• Fauji Kabirwala Power Company Limited
• Foundation Power Company Daharki Limited
• Foundation Wind Energy - I
• Foundation Wind Energy - II
• FFC Energy Limited
• FFBL Power Company Limited
• Fauji Oil Terminal And Distribution Company Limited
• Fauji Akbar Portia Marine Terminal Limited
• Fauji Trans Terminal Limited
• Foundation Securities (Pvt) Limited
• Askari Bank Limited
• Fauji Foods Limited
• Fauji Fresh n Freeze Limited
• Fauji Meat Limited
• Fauji Infraavest Foods Limited

In 1969 Ayub Khan made a law which allowed the Pakistan railway board of directors to set up a welfare fund for railways employees. No such thing was done. The law still exists in Pakistani legislation as THE WEST PAKISTAN RAILWAY SERVANTS’ WELFARE FUND ORDINANCE, 1969 (W.P. Ordinance XIV of 1969).
A National police foundation established in 1975, but they did nothing for policemen and their families and to this date are a dysfunctional organisation.

 

[AZADPAKISTAN2009]

Fantastic Idea 100% success story
Almost like a Pension for the Servicemen who retired
At same time not burdening the Federal System

To go from 1 entity to 20 entities is amazing growth year to year and shows great planning and honesty

I hope some consultants from Fauji Foundation can also revive the fortunes of Steeles Mills as well

We really need to examine why is it that Fauji Foundation is successful and then why are state owned entities have gone down

a) Human Resource quality
b) Lack of planning
c) Incompetent Workers / Leaders
d) Economy

 

[ghazi52]

Yes , a great success story.

 

[AZADPAKISTAN2009]

Well the success of Fauji Foundation shows , that with proper Management and Human Resource which is built on merit you can certain grow an entity in Pakistan

Pakistan does have alot of successful stories in Business Segment

If we can't benefit from the Experince gain in last 10-20 years from such experts to revive entities like Steels milss it would be a shame

Fauji Foundation is a untold success story for country

 

[Jf Thunder]

Fauji Foundation hospital was made by the then DGMS, Lt Gen (R) M N Mahmood

 

[ALi Rizwan]

Yes , a great success story.

Definitely a great success but not all can be called a success.
Major player in group the Fertilizer was allegedly given favors with Gas supply more then the required quota either this or the company supplying Gas is the same group company give them advantage over competitors.

Similarly buying Nurpur is also not a success because you enter a market which is highly competative with low profit margin and buy a company making losses invest huge amount in marketing, supply chain and machinery and although still in loss sell half of the company to foreign company.

 

[volatile]

Before jumping to conclusion what ever data is available these organizations are failures for Corporate sectors .e.g In food Fauji food is worst performing and in order to gauge success or failure one has to rely on the data or share value .Look into share values of these organization in comparison to there peer organization .It is good for Millitary but bad for Pakistan as whole

https://www.dawn.com/news/1272211

ISLAMABAD: The Senate was provided on Wednesday details of commercial entities being run by various wings of the armed forces in the country.

In a written reply to a question asked by Senator Farhatullah Babar of the Pakistan Peoples Party, Defence Minister Khwaja Asif informed the house that there were nearly 50 “projects, units and housing colonies” functioning in the country under the administrative control of Fauji Foundation, Shaheen Foundation, Bahria Foundation, Army Welfare Trust (AWT) and Defence Housing Authorities (DHAs).

According to the details provided in the reply, eight DHAs were established in major cities. These DHAs — mostly created through ordinances — are in Karachi, Lahore, Rawalpindi-Islamabad, Multan, Gujranwala, Bahawalpur, Peshawar and Quetta.

Besides, there are 16 “projects/units” functioning under the AWT, 15 under the Fauji Foundation and 11 under the Shaheen Foundation.

The house was informed that Bahria Foundation was not administrating any housing colony in Pakistan, “however, an offshore tolling type LNG project is under its consideration”.

Bahria Foundation not administrating any housing colony, Senate told
The projects/units being run by the AWT are:

1. Two stud farms in Pakpattan and Okara
2. Army Welfare Sugar Mills, Badin
3. Askari Project (shoe and woollen), Lahore
4. Army Welfare Mess and Blue Lagoon Restaurant, Rawalpindi
5. Real estate comprising three small housing schemes in Lahore, Badaber and Sangjani
6. Askari General Insurance Co Ltd Rawalpindi
7. Askari Aviation Services, Rawalpindi
8. MAL Pakistan Ltd Karachi
9. Askari Guards (Pvt) Ltd, head office (HO) in Rawalpindi
10. Askari Fuels (CNG) with HO in Rawalpindi
11. Askari Seeds, Okara
12. Askari Enterprises, Rawalpindi
13. Fauji Security Services (acquired from Fauji Foundation), HO in Rawalpindi
14. Askari Apparel, Lahore
15. Askari Lagoon, Faisalabad.

The projects/units under Fauji Foundation are:

1. Fauji Cereals
2. Foundation Gas
3. Fauji Fertiliser Company Ltd
4. Fauji Cement Co Ltd
5. Fauji Oil Terminal and Distillery Co Ltd
6. Fauji Kabirwala Power Company Ltd
7. Foundation Power Co (Dharki) Ltd
8. Askari Cement Ltd
9. Askari Bank Ltd
10. Foundation Wind Energy (I and II) Ltd
11. Noon Pakistan Ltd Lahore
12. Fauji Meat Ltd
13. Fauji Fertiliser Bin Qasim Ltd
14. Fauji Akbar Partia Marine Terminal Ltd, HO in Karachi.

A company under the name of Pakistan Maroc Phosphore SA was set up in Morocco by the Fauji Foundation in 2008.

Similarly, the projects, units and housing colonies under the administrative control of Shaheen Foundation, which is a trust of the Pakistan Air Force, are:

1. Shaheen Airport Services
2. Shaheen Aerotraders
3. Shaheen Knitwear
4. Shaheen Complex, Karachi
5. Shaheen Complex, Lahore
6. Shaheen Medical Services
7. Hawk Advertising
8. Fazaia Welfare Education School System
9. SAPS Aviation College
10. Air Eagle Aviation Academy
11. Shaheen Welfare Housing Scheme, Peshawar.

The Senate was told that Shaheen Foundation was established in 1977 under the Charitable Endowment Act 1890 “to promote welfare activities for the benefit of serving and retired PAF personnel, including civilians and their dependents, and to this end generate fund through industrial and commercial enterprises”.

https://www.aljazeera.com/focus/pakistanpowerandpolitics/2007/10/2008525184515984128.html
https://thewire.in/books/pakistan-military-ayesha-siddiqa
How Pakistan's Military Monopolised State Resources For Personal Use
The 2017 edition of Ayesha Siddiqa's 'Military Inc.: Inside Pakistan’s Military Economy' discusses how military capital being used for personal benefits is now a permanent feature in Pakistan.

https://www.thenews.com.pk/print/90657-Land-scams-and-half-truths

So list goes on and on
Just need to google it your selves ,how many times these organizations are audited and how many times irregulated found .

 

[AZADPAKISTAN2009]

Since the Government of Pakistan is discussing wiping clean all debt for Pakistan Steeles Mills any chance Fauji Foundation can take over operation of Pakistan Steeles Mill

https://www.thenews.com.pk/latest/416285-ecc-discusses-pakistan-steels-revival-plan

Islamabad: Finance Minister Asad Umar chaired meeting of Economic Coordination Committee of the Cabinet (ECC) here on Tuesday.

The ECC had a detailed discussion on the proposal of Textile Division regarding withdrawal of custom duty, additional custom duty and sales tax on import of cotton.

The proposal was aimed at facilitating the import of cotton to bridge the demand and supply gap in the country, thereby helping out the textile industry, especially the export segment.

The Committee noted that detailed trade and revenue related data was required, which was not made part of the proposal. The relevant ministries were directed to fill the data gaps so that an informed decision could be taken in the matter.

The Ministry of Industries & Production shared with the meeting progress on the plan of action currently being formulated by a specially constituted experts group, suggesting viable options to revitalize the Pakistan Steel Mills (PSM).

The committee directed that the plan of action should be prepared in a cohesive manner, taking on board the PSM Board of Directors/Management and submitted for final approval as per the given timelines.



An ideal chance to take over this Operation , rehire all posts 100% on Merit

• Steel is needed for Dam
• Steel is needed for Railway tracks
• Steel is needed for new construction for buildings
• Steel is needed in ship building

Fauju Foundation should do a 50-50% profit share agreement with Government of Pakistan
if Government can clean up debt and hand over the asset to Fauji Foundation

The company should be run under military rules /court marshal applicable against corrupt
And I would imagine a high performance team can be selected by foundation to keep screws tight in workers so they are focused on working instead of corruption


The company could be modernized to manufacturing advance items for HIT (Heavy Industry Texila) for Jeeps , Trucks and Tanks

 

[Yaseen1]

They are not ideal organisations private companies work far better than these they are mostly nonprofit entities established for welfare of army officials and huge profit earning cannot be achieved by following their model

 

[xyxmt]

Fantastic Idea 100% success story
Almost like a Pension for the Servicemen who retired
At same time not burdening the Federal System

To go from 1 entity to 20 entities is amazing growth year to year and shows great planning and honesty

I hope some consultants from Fauji Foundation can also revive the fortunes of Steeles Mills as well

We really need to examine why is it that Fauji Foundation is successful and then why are state owned entities have gone down

a) Human Resource quality
b) Lack of planning
c) Incompetent Workers / Leaders
d) Economy

there is not forced Bharti in Fauji foundation, I can bet PIA alone employs more people than entire Fauji Foundation.

 

[blueazure]

They are not ideal organisations private companies work far better than these they are mostly nonprofit entities established for welfare of army officials and huge profit earning cannot be achieved by following their model

i can assure you that having worked with fauji groups., they are far better managed than many MNC

85 percent employees of fauji grp are all civilians hired from the best MNCs

 

[Yaseen1]

i can assure you that having worked with fauji groups., they are far better managed than many MNC

85 percent employees of fauji grp are all civilians hired from the best MNCs

Quality of the products of fauji group is not much good to compete with multinational companies and most people not buy fauji cerials and fauji cement but buy either imported foods or bestway cement .They lack innovation and most of board of directors are from retired army officers unlike MNC who hire people as directors who have experience in corporate sectors and have relevant degrees

 

[blueazure]

1 .fauji grp invested and made the first wind farm in pakistan .they were the pioneers in this industry and installed almost 300MW of wind farms in pakistan

2. mari petroleum, another fauji company, is one of the most profitable oil and gas operator in pakistan and is the 2nd largest gas field operator after SUI .

3. fauji cement / askari bank , are again , one of the most profitable business entities in their area. ive been to the fauji cement plant, totally state of the art and no way less than any other plant. bestway has only a small mkt share

4. fauji cereals , ive eaten them since 2 years old . had a fauji oatmeal break fast today, no way less in quality vs kellogs or quackers

ive interacted with fauji grp from their wind farms to their board of director meetings .im doing 4 x projects with them as of now.

trust me, they are one of the sharpest business ppl around and have superb teams.

the group is making huge profits

Fauju Foundation should do a 50-50% profit share agreement with Government of Pakistan
if Government can clean up debt and hand over the asset to Fauji Foundation

The company should be run under military rules /court marshal applicable against corrupt
And I would imagine a high performance team can be selected by foundation to keep screws tight in workers so they are focused on working instead of corruption


The company could be modernized to manufacturing advance items for HIT (Heavy Industry Texila) for Jeeps , Trucks and Tanks

fauji grp will turn around PSM in 6 months, no issues at all

----

 

[AZADPAKISTAN2009]

Well I personally feel , Fauji foundation have the experience necessary to run such an organization and they also have the discipline necessary to make Pakistan Steeles Mills a success story.

They understand the political and social setup in Pakistan and have proven how to make profit in local markets


50%-50% profit share deal would be great

50% Goes to Military/Fauji Foundation usage as they wish to use the funds , hospital improvement , projects , Improvements in Barracks

50% Goes to Government of Pakistan to help fill the Government's bank account to make up for lack of taxation, funds could be used for development or social sector

Facility only needs , modernization / clean up and hire of fresh blood worker 18-19 year old who are eager to work

The organization has lost it's focus because lack of discipline and political meddling in hiring and stealing of revenue / profit

Many similar companies (such as steels mills or auto sector) in western world are tied closely to national defense needs. It is a step Pakistan have to consider


Such companies make 4-5 billion range profits in international markets when functional so it could be 2.0 Billion split for foundation and Government a win win situation

 

[jupiter2007]

I believe Fauji meat will become the highest halal meat exporter in few years. They have the most advanced slaughter house and best business plan for meat exports in Pakistan. I hope they can also open a business for seafood export.