Lucky Cement has commissioned a 28.8MW wind power project at its South (Karachi) plant in the second quarter of FY25, expanding its renewable energy portfolio to around 160MW. This includes 74MW of solar capacity and 56MW from waste heat recovery (WHR). Together, these sources now supply more than 55 per cent of the company’s cement operations’ power needs.
To further optimise renewable integration, the company has installed a battery energy storage system with an expected payback of 4–5 years. The remaining 45 per cent of its power requirements continue to be met from the grid.
At its recent corporate briefing, management reported an eight per cent YoY rise in cement dispatches for FY25, driven largely by exports, with Africa remaining its largest market. Stable coal prices and the addition of wind power also contributed to improved gross margins.
The company noted strong international operations, with plants in Iraq operating at 95 per cent utilisation and those in Congo at 85 per cent. It also reaffirmed its focus on capital allocation, highlighting a 5:1 stock split and ongoing evaluation of strategic investments, including a potential stake in Pakistan International Airlines (PIA).
Looking ahead, Lucky Cement expects domestic cement demand to grow by five per cent in FY25, while Lucky Electric Power Co Ltd is preparing to transition to local Thar coal by FY26 to cut costs and enhance profitability.
By Abdul Rab Siddiqi, Pakistan
