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KARACHI: Under a strategy to make its presence possible in the lucrative developing markets of Africa and Asia, Lucky Cement has now approached the Indian government to acquire details about setting up a cement production plant in Indian Punjab, said an official on Monday.
Lucky Cement expressed the hope that it will take the company roughly 12-18 months to kick-off the project, said a senior official of the company.
“The company has approached Indian government to know as to what is its policy to welcome direct investment from Pakistan in its cement sector,” said Muhammad Ali Tabba, chief operating officer of Lucky Cement.
“This is just the beginning and may take a long time of around one-and-a-half years to initiate the project in India if the company finds the project feasible.”
Reportedly, India has lifted a ban on foreign direct investment from Pakistan about three months ago after the two countries agreed to strengthen economic ties.
“Roughly, the company annually exported around 100,000 tons of cement to India in recent years,” he said. The company claims that it is the largest cement producer of Pakistan with an annual production capacity of 7.75 million tons.
The company is also in the process of setting up a production plant in Sri Lanka, said the official.
“The project in Sri Lanka is in advanced stage.
As soon as we get land and licence from the Sri Lankan government, we will initiate the project,” said Tabba.
Moreover, it has also initiated projects n Iraq and Congo, Africa in recent times, said sources.
Lucky Cement is a listed company at the Karachi, Lahore and Islamabad stock exchanges. Its share price fell by 17 paisas to Rs141.66 on a turnover of 564,200 shares at the KSE on Monday.
Lucky Cement Limited declared a profit-after-tax of Rs2.01 billion for the quarter ended September 30, which was 34 percent higher than Rs1.50 billion earned in the same quarter last year, according to profit and loss accounts.
The CEO said that the company would probably set up the plant in Indian Punjab as the territory offers higher opportunity of doing business in the sector against highly competitive Gujarati markets. An Indian business newspaper, Mint (Hindustan Times’ affiliate) reported that Lucky Cement is exploring possibilities to establish the unit in the Amritsar (North-Western region).
Moreover, the company might export clinker to its [to be] Indian plant and then convert it into finished brand there, he said.
It was yet to be finalised as the Lucky Cement would establish the plant all alone or it would enter into joint venture there with a local partner. “Options, in this regard, are still open,” he said.
The company is to determine the size of funds to be invested there. “The investment in India would be a mix of equity and debt,” he said.
Muhammad Rehan Khan, an analyst at First Capital Equities, said that Lucky Cement has successfully established its brand in the Indian market, while the management of the company has also repeatedly highlighted the “lucrativeness of Indian cement market, owing to its huge area and growing middle class.”
“If pursued, this project is likely to be a prudent growth initiative by the management,” he said.
Lucky Cement expressed the hope that it will take the company roughly 12-18 months to kick-off the project, said a senior official of the company.
“The company has approached Indian government to know as to what is its policy to welcome direct investment from Pakistan in its cement sector,” said Muhammad Ali Tabba, chief operating officer of Lucky Cement.
“This is just the beginning and may take a long time of around one-and-a-half years to initiate the project in India if the company finds the project feasible.”
Reportedly, India has lifted a ban on foreign direct investment from Pakistan about three months ago after the two countries agreed to strengthen economic ties.
“Roughly, the company annually exported around 100,000 tons of cement to India in recent years,” he said. The company claims that it is the largest cement producer of Pakistan with an annual production capacity of 7.75 million tons.
The company is also in the process of setting up a production plant in Sri Lanka, said the official.
“The project in Sri Lanka is in advanced stage.
As soon as we get land and licence from the Sri Lankan government, we will initiate the project,” said Tabba.
Moreover, it has also initiated projects n Iraq and Congo, Africa in recent times, said sources.
Lucky Cement is a listed company at the Karachi, Lahore and Islamabad stock exchanges. Its share price fell by 17 paisas to Rs141.66 on a turnover of 564,200 shares at the KSE on Monday.
Lucky Cement Limited declared a profit-after-tax of Rs2.01 billion for the quarter ended September 30, which was 34 percent higher than Rs1.50 billion earned in the same quarter last year, according to profit and loss accounts.
The CEO said that the company would probably set up the plant in Indian Punjab as the territory offers higher opportunity of doing business in the sector against highly competitive Gujarati markets. An Indian business newspaper, Mint (Hindustan Times’ affiliate) reported that Lucky Cement is exploring possibilities to establish the unit in the Amritsar (North-Western region).
Moreover, the company might export clinker to its [to be] Indian plant and then convert it into finished brand there, he said.
It was yet to be finalised as the Lucky Cement would establish the plant all alone or it would enter into joint venture there with a local partner. “Options, in this regard, are still open,” he said.
The company is to determine the size of funds to be invested there. “The investment in India would be a mix of equity and debt,” he said.
Muhammad Rehan Khan, an analyst at First Capital Equities, said that Lucky Cement has successfully established its brand in the Indian market, while the management of the company has also repeatedly highlighted the “lucrativeness of Indian cement market, owing to its huge area and growing middle class.”
“If pursued, this project is likely to be a prudent growth initiative by the management,” he said.
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