To check the declining market share, ECPL developed a long range strategic plan.
An employee buy-out appeared to be the only way the expansion project could proceed on which ECPL had done considerable work to bring it to such an advanced stage of development.
All of ECPL employees and annuitants, numbering over 500, were invited to participate in the ownership plan.
The complexity of the buy-out can be gauged from the fact that the stock market capitalisation of 75 per cent of ECPL equity amounted to over a billion rupees.
The ECPL buy-out strategy was based on leveraging the company for raising funds for the expansion project and leveraging the employees to raise enough finances that would give the employees the management control.
In analysing the success of the ECPL employee buy-out, following factors stand out: A high quality high performing and highly motivated employee team totally committed to achieving a commonly agreed goal/vision; strong professional management with a respected trackrecord; an expansion project which would add substantial value to the company and make a major contribution to the national economy; strong support from Exxon, the original owners, and international and national financial institutions.
Due to the combination of safe design, well-trained operating personnel, on-the-job safety consciousness and documented response procedures, ECPL has been recognized as one of the safest chemical plants.
ECPL has introduced to the farmers, the concept of agroservice, which is based on the objective of selling an agriculture programme and not merely a product.
A key objective of ECPL is to be a good corporate citizen and contribute to the welfare of the community in the area of education and health care.
ECPL has made pioneering contributions in developing the chemical fertilizer market in the country.
During the first half 1991, Exxon Chemical Company, a division of Exxon Corporation announced that it had accepted the offer made by ECPL employees to purchase the Exxon Chemical equity in ECPL and had transferred its shares.
Exxon has signed agreements with ECPL that provide for continuation of technology support to operate the existing plant and to implement the expansion project.