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Pakistani conglomerate Engro aims to go worldwide, its main financier states

Pakistan's biggest conglomerate, Engro Corp, is aiming to broaden into brand-new markets, including the Middle East, Central Asia and Africa, the chemicalstoenergy company's biggest financier said on Tuesday.

Speaking with in a rare interview, Samad Dawood, vice chairman of Dawood Hercules Corp, which owns 40% of Engro Corp, said the company was also thinking about global liquefied natural gas (LNG) opportunities as well as hydrogen energy.

The expansion plans include taking a look at telecoms infrastructure in the Middle East, North Africa, and Central Asia, while it is looking at Africa to broaden its fertilizer companies, he said.

Engro Corp has a market capitalisation of 193 billion rupees ($ 694 million) on the Pakistan Stock Exchange and assets of 802 billion rupees ($ 2.9 billion), according to public data.

The group has companies across several sectors in Pakistan, consisting of energy, fertilizer, telecommunications and durable goods.

It owns 56% of Pakistan's very first LNG terminal, Engro Elengy Terminal Pakistan, which was set up in the southern city of Karachi in 2015. Dutch energy logistics giant Royal Vopak owns the staying 44%.

The terminal fulfils 15% of Pakistan's gas demand.

Dawood said Engro will continue to buy the energy sector despite having actually offered its coal-based possessions, and was checking out brand-new avenues for sustainable energy production.

He stated the business was talking with technology providers in the hydrogen energy sector to figure out how to utilize ammonia as an energy shift solution.

Dawood added that Pakistan was far from being energy-secure and there were plenty of chances to invest further in the power sector.

Pakistan has actually approached reliance on LNG after its own domestic gas supplies diminished quickly as usage in the commercial and residential sectors increased.

' DREAMER'

Dawood said the worldwide push was motivated by his late elder brother Shahzada, who perished in 2015 in the unfortunate Titan's voyage to explore the Titanic wreckage - an accident When the deep-sea submersible, that made global headings imploded and eliminated all 5 individuals on board.

He (Shahzada) was a lot more of a dreamer and pushing us to end up being more international and structure that curiosity and engaging with the outdoors world, Dawood stated.

The Dawood household likewise faced a lengthy legal experience in Pakistan where the business was implicated of getting illegal favours from the government.

The case, which lasted years,

finally ended last week

with the country's responsibility watchdog dropping the case entirely. Dawood states the matter harmed the family deeply and even impacted their companies and prospective financiers.

The company's plans to push ahead are taking shape, Dawood said. On Monday, the boards of Engro and Dawood Hercules approved in concept a

restructuring strategy

to allow them more capital flexibility.

Dawood said the restructuring will enable participation in opportunities that the entire economy offers, including that the boards wanted the flow of capital to be entirely seamless in between the 2 organisations.

He stated Engro would be able to broaden its investment required to include exploring chances produced by international corporations divesting from Pakistan's troubled markets.

(source: Reuters)