Dawood hercules chemicals limited


Dawood Hercules Chemicals Limite (DHCL) was established as a joint venture between Dawood Group of Industries and Hercules Chemicals Inc. of the USA.

It was incorporated as a public limited company in 1968 with registered office in Lahore. In the same year, DHCL acquired 220 acres of land in Chichoki Mallian (District Sheikhupura), 27 Kms from Lahore, in the province of Punjab, for establishing the largest ammonia/urea plant in Pakistan at that time, with a rated production capacity of 345,000 metric tons per annum.

The International Bank of Reconstruction and Development (IBRD) and the United States Agency for International Development (USAID) were the main lenders.

Dawood Hercules Chemicals Limited has the honor to be amongst the top 25 industrial companies listed in the Karachi Stock Exchange. This has become possible due to dynamic leadership, hard working and committed employees, strict control standards and innovative marketing strategies


Effective marketing & distribution are key to the success of any organization. Productive and innovative marketing strategies of the management have earned DHCL a prominent position in the market.

DHCL markets its urea under the brand name "Bubber Sher". Bubber Sher is a tried and tested name for farmers. It is one of Pakistan's pioneer brands of urea since November 1971.

DHCL has developed a well-organized and extensive dealership network, which ensures uninterrupted and ready availability of "Bubber Sher" urea to farmers throughout Pakistan. This dealership network consists of 3050 dealer/sales outlets spread all over Pakistan. The most comprehensive network exists in the Punjab province. According to statistics published by the National Fertilizer Development Center this amounts to 37% of the private sector dealership network in Punjab.


Dawood Hercules Chemicals Limited has a team of approximately 550 people including 200 executives and supervisors and 332 unionized staff. The management includes 84 qualified chemical, electrical and mechanical engineers.


DHCL is a quality conscious company. It has always believed in producing the best and has never compromised on quality. To attain an independent verification of the stringent quality standards achieved by the company, DHCL decided to go for ISO certification in September 1996. All the requirements to achieve the certification were completed in a short period of thirteen months and DHCL was accredited to ISO 9002 standards in October 1997. According to DHCL's ISO auditors, AOQC Moody International, the company's standards are more demanding than those of ISO. This shows DHCL's firm commitment to the quality of its products.


Last weak of June we went to DHC head office for the very first time .There we met Mr. Tariq Hameed Butt (general manager plant )of DHC. He gave us a brief introduction about the organization. We also met with Mr. Muhammad Aslam (production manager). After all , we visited there 4 times ,2 times at plant location and 2 times at head office. Plant is 28 km away from Lahore but we have convince with us. They really cooperate us because we go there with the reference of friend's father who is in the head body of DHC. At the end I briefly describe that where we can re engineer the process.

I read the manual of plant description .The Dawood Hercules Chemicals Limited plant was initially designed to produce 625 tons of ammonia and 1,100 metric tons of urea per day, which translates into an annual production capacity of 345,000 metric tons of urea. In 1991, the plant underwent a major revamp (BMR) which was carried out by its in-house engineering wing. As a result of this expansion, currently 850 metric tons of ammonia and 1,350 metric tons of urea are being produced daily, which yield an annual production capacity of 445,500 metric tons of urea.

In 1996, the Dawood Hercules Chemicals Limited completed 25 successful years of operations, producing over 8 million metric tons of urea. Up till 1990, the plant had been operating in excess of its designed capacity. On average, capacity utilization of 101% had been achieved so far. An all time maximum utilization of 111% was achieved in 1990. However, from 1990 onwards, the plant operated below capacity due to short supply of natural gas, prime raw material for urea production. DHCL has the full potential to achieve capacity utilization of above 100%, provided it receives the required gas supply.

The following production versus capacity utilization table highlights the company's performance during past seven years (1992-98).

Then I read different plant manual in which we were briefed about tsome of them and how to react in different conditions.

  1. VALVES:
  2. I just studied the API of valves that time. Mechanical devices that are used in industrial piping for flow control are called Valves. Valves used in the industry are of different types, their applications are different. Their applications depend upon their function, properties of the material passing thorough the valves and the pressure they have to face. I studied their construction, operation, troubleshooting and service.

  4. Pumps are the mechanical devices which are used to move liquid from lower elevation to higher elevation, lower pressure area to higher pressure area and to increase the flow rate of a liquid. Centrifugal pumps are those pumps which use centrifugal force for pumping. In this API I studied about the different types , construction , operation and applications of the centrifugal pumps in the industry.

  6. Steam Turbine is a mechanical device which is used to convert thermal energy into mechanical energy. In this API I studied about the mechanisms of reaction and impulse turbines with their different types. In second unit of this API , different parts and equipments used for turbines are discussed in detail. In the third unit, turbines during their operation are discussed.


We visited the different labs .we saw a lot of models and the instructor present there answered our questions to satisfaction.


We saw the Machinery Maintenance. E/U. They given the Machinery Maintenance. Procedure. It applies to all kinds of machinery available. It ensures work timely and effectively for efficient and continuous running of production process. I studied thoroughly preventive, predictive and corrective Maintenance


It includes maintenance. during normal running conditions, maintenance. during shutdowns, main. during turnarounds and periodic maintenance.


I studied the work instructions, which are followed during work. MWR is received and according to the priority of job it is completed. Job is studied n availability of spares is confirmed and weekly job plan is prepared. It is send to planning and scheduling unit based on weekly schedule, handling the technicians and workers job is done. In the end the status of spares is reviewed and MOR is raised.


I visited the machinery area in expansion unit. I saw different pumps, turbines, compressors and multi-stage compressors.

  1. GEAR PUMP :-
  2. A gear pump was overhauled at that time . The idler gear of this pump was worn out. First of all it was opened and all parts of the pump were taken out and cleaned. The gear was worn due to the rubbing against the crescent seal and the rotor gear. The gear was replaced and job was completed.

  3. CLUTCH :-
  4. I saw a bearing clutch and then discussed it. It was so designed that the needles on the upper part of the clutch could move up and down a little with the help of a lever mechanism. These needles move with the shaft but as there is relative motion in the shaft. The needles move down a bit making the clutch free.

  6. Mechanical seals are more widely used than shaft packing because they require less maintenance and hold leakage to a minimum. It was taken out during the overhauling of a pump. Mechanical sealing consist stationary seal ring, rotating seal ring and compression ring.

    An O-ring is present b/w shaft and rotating ring. It is made of rubber and makes a tight seal b/w rotating part and shaft. Mechanical seals of the pump were lapped from the machine shop of B/U. Then the pump was in service again.

  8. Motor of one of the cooling tower's fan had some problem in it's running. It tripped during normal running due to excessive vibration. Its shaft was to be coupled with the replaced motor. When I reached there, motor was put on its place and shaft was being coupled to it. When the shaft was coupled to motor, its alignment was to be checked precisely. Dial indicator was used for this purpose and the readings were taken around the motor coupling and also around the fan coupling. The position of the motor was changed with a rod until the shaft was precisely aligned. All the bolts were tightened and the motor was run.

  10. The job was to replace a double-row self-aligning ball bearing over a large shaft having coupling hubs on both ends. The surface of the bearing that was rubbed by balls during run was worn out. The coupling hub on the bearing side was keyed over the shaft. It was taken out by heating it by flame. After that bearing was replaced, the hub was heated again and the job was done.


We were with the instructor who tell us all about He told about the working procedure in the shop.


Supervisor was with us during the visit. He told us about the different machines present in the shop. I discussed with him all the machines one by one and also the jobs present there. The names and the quantity of that different machines at that time are as follows:

  2. Quantity---2


  4. Quantity------1

  5. LERIA 850 SHAPER:
  6. Quantity------1

  8. Quantity------4

  10. Quantity------1

  12. Quantity------1

  14. Quantity------1

  16. Quantity------1

  18. Quantity------1

  20. Quantity------1

  22. Quantity------3


Vehicle shop is one of the most effective sections of Machine Shop. It has a larger workshop where the maintenance of vehicles is done indigenously. It has cranes, tractors and trucks.


In this shop I observed different jobs completed by fabrication shop. I also observed different processes which were being performed in this shop:


In this shop I saw tow types of welding;

  1. Gas Welding
  2. 2-Electric Welding

Furnace is used for the process of heat treatment if required in any process like welding. The furnace has the maximum temperature, 675 celcius or 1200 degree fahrenhirght.


These types of machines are used for shearing process. By this machine, we can make squares, rounds, angles and blanks with the help of die. There were two big machines which hydraulically operated and are used for mass production. There was a portable shearing machine but that was of half capacity.


we also visited the store room of the fabrication shop and observed different types of machines and tools;

  1. Tube rolling machine.
  2. Tube pulling machine.
  3. Pressure measuring machine.

Then we go to the utilities plants side.

The utilities plant covers the following areas;

  • Steam generation
  • Electric power generation
  • Cooling tower & chromate removal system
  • Water treatment
  • Instrument air & plant air
  • Waste water treatment

Power generation facilities include two electric generators. Each generator has a capacity of producing 22 MW electricity at 6.3 KV. Both the generators are connected with each other for parallel operation. The generators are driven by gas turbines each with a design capacity of 18 MV.


Raw water is treated in this unit for boilers, cooling tower make-up, and drinking purposes. The storage has a capacity of 30,000 cubic meter water which is approximately one day's consumption of the complex


Cooling tower is of induced draft, cross flow type, consisting of 9cells and designed for a circulation rate of 32,000 cubic meters per hour water. The hot water returns from the complex at a temperature of 43 degree Celsius. After cooling, water is distributed to various plants. About 630 cubic meters per hour water is evaporated continuously with air. Cooling water pH is controlled by injection of sulphuric acid and zinc-chromate is used as corrosion inhibitor.


We did two visits in different areas of the section during that time and got know how about ammonia process in the plant.

I know it is a very long and complicated process of the formation of urea so its impossible for me to know all about it

Process: They tell us that it is not a so simple process as it is looking now here. It is very complicated. In it many intermediate processes are involved at different pressures and temperatures.


"A multi-disciplinary approach to implementing fundamental change in the way work is performed across the organization to dramatically improves performance".

Re-engineering has two fundamental ideas.

  1. Incremental improvement to achieve dramatic increases in their performance.
  2. To achieve the required improvements is to recognizes around rationally designed, cross-functional, customer-value delivering processes.

There are 5 points essential for a successful re-engineering process:

  1. A re-engineering process must be management driven, and must have at its heart a vision of a company goal. Radical changes are being made to realise a future dream.
  2. As part of a re-engineering process, people must focus on new work methods which increase either efficiency or customer satisfaction.
  3. A re-engineering process requires a full-time co-ordinator to drive the project forward.
  4. It is important to organise the change processes as a project, which should have as a basic task the involvement of all employees.

A comprehensive change process will necessarily cause much uncertainty, and it is therefore important to establish a strategy early on for how communication should and will be carried out during the changes

After visiting these area we found something to re engineer process which can improve its productivity, quality and use of technology, variety control and time saving and other management areas. But it is difficult to say that with 4 visit we can reduce its expenses because we don't have any now how about this, anyhow we try our best to do it well by adding some requirement ,hope after this many problem removes and productivity improve and time will be save. These point are not written point to point ,whatever we find best we try to do it.

  1. We find there is no proper arrangement for proper sealing off the pumping chamber(Plunger pumps are often used for high-pressure service).
  2. So , I think it is important to use this machine

  3. During the use of liquid what kind of liquid it is , when the liquid is below the surface ,there is no arrangement of using it ,instead of taking new liquid ,it totally wastage ,so I think they must use some kind of pump which can pump the liquid from a level well below the surface.
  4. Replaced of utilities , material there must be a shop which already have extra storage of all accessories with good management people.
  5. For improve productivity they must be planning for workforce which links supply and demand. DHC is a name but work force planning can improve to achieve specified business outcomes
  6. There is no proper responsive system which can capture, and maintains the skills sets of available people.
  7. Every organization have a mission to achieve there target , for this DHC employment agreement is not fully flexible , so they need to flexible employment agreement and tenure which are directly related to specific organisational requirements;
  8. Its really very bad ,that everywhere there is a constraints, first of all they remove the constraints of level and position.
  9. Machinery was really very Maintenance. they given the Machinery Maintenance. Procedure. It applies to all kinds of machinery available. It ensures work timely and effectively for efficient and continuous running of production process. I studied couldn't study well it Maintenance procedure. But it shows that its really very manageable and good condition.
  10. When we go to see the workshop ,Supervisor was with us during this time . He told us about the different machines present in the shop. I asked him all the machines one by one and also the jobs present there. There I ask from him that quantity is not more ,many parts are available only in one quantity. Then he told that's why we maintain our procedure. So that no problem occur.
  11. Plasma cutting machine which is used where very high temperature is required to cut the sheet. It can cut maximum 75 mm thick sheets of SS. They also told us that we also trying to import another machine which will clean the tubes of heat exchangers and he told that it can be done by three ways

    but they do it by using expensive chemicals, so after this they can reduce there wastage of money . .there must need a process re engineer.

  12. There is no more need in the cooling tower to re engineer the process.
  13. Quality has always been the top priority of the good companies so it has always believed in a scientific, modern and methodical production approach to maintenanceain its quality standards. Quality wise there is no any kind of place we found that where u can improve quality more. So no need to re engineer the process worldwide.
  14. For urea plant there is a small workshop which can not fulfill all the requirement of the plant but because when repair is brought here in workshop they send it to the main workshop which is away so its wastage of time , they must fulfill the workshop near plant location so that they got repair and treatment according to the specifications.

Dawood Hercules Chemicals Limited (DHCL is one of the larger urea producer in Pakistan. The world largest does not make it supreme but the supremacy lies in something else!

During visiting we saw many direct ,as well as indirect processes and we evaluate these process for process re engineering. It is too difficult to find in which field we can re engineering process like in productivity improvement , quality control, use of technology and better space utilization.

During this time we not only tried to gain as much knowledge as possible but also tried to find the working procedures which are followed here. After visiting 4 times in DHC, I believe there are many reasons behind that which include: good management, engineer's vision to solve the job, practical and conceptual sub-engineers, workers devotion to the company, hard working technicians and safer atmosphere provided by safety. And they really cooperative with us behind given whole information about and provide us some kind of booklet of the plant. The existing setup is perfect but I think every thing is not completely perfect , anyhow existing setup is good and maintain.

At the end, we really think that if we choose middle range organization then we can easily re engineering. Anyhow this all will be count in our experience.

I don't think that we wants to leave DHC after taking such a pleasant information I wish that DHC group becomes future of Pakistan.

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