Lucky Cement not to build cement plant in India

Lucky Cement not to build cement plant in India
04 December 2012

Pakistan’s leading cement manufacturer and exporter Lucky Cement Ltd has officially informed the Karachi Stock Exchange (KSE) that it is not establishing a cement plant in India.  The company is, however, proceeding as planned with two new overseas ventures.  

The official note by Muhammad Suhail, company secretary of Lucky Cement to the KSE stated: “We would like to clarify that our company (Lucky) has neither decided nor planned to set up any cement plant in India.”

Local media reported in late November that Lucky Cement has approached the Indian government to acquire details about setting up a cement plant in Indian Punjab while quoting Muhammad Ali Tabba, chief operating officer of the company.

Update on new projects

In its 1QFY13 report (July – Sept 2012) Lucky Cement provided updates on its two new overseas ventures.

For its joint venture investment in DR Congo, plant and machinery for the project has been negotiated and finalised with a European supplier. The terms of the project financing with development financial institutions and multilateral agencies are under negotiation.

Similarly, at its joint grinding venture in Iraq, the contracts for the supply of plant and machinery for this project has been signed and the project team as well as civil contractors has been mobilized at the project site.

Year-to-date performance

During July- Sept 2012, the domestic sales volume of Lucky Cement grew five per cent to 0.86Mt compared to 0.82Mt in the same period last year. Exports declined nine per cent from 0.62Mt last year to 0.56Mt during the quarter under review mainly due to the company shifting from exports to local markets in line its strategy. Profit after tax rose by PKR508.7m from PKR1.505bn same period last year to PKR 2.014bn achieved during the quarter under review.

Published under Cement News