Lucky Cement Ltd has announced the successful completion and commissioning of a process optimisation and capacity enhancement project at its Karachi plant. The project has increased the Karachi plant's annual cement production capacity by approximately 0.3Mt, bringing it to 5.35Mta, up from 5.05Mta. As a result, the company's total domestic capacity now stands at 15.6 Mt, reinforcing its position as Pakistan's largest cement manufacturer, according to a report by AKD Research.
In addition to the capacity uplift, the project is expected to enhance thermal efficiency and reduce specific fuel consumption. The additional capacity will help increase the company's offtakes, with the South plant operating at 101 per cent capacity utilisation in the first nine months of FY26. Experts anticipate that this incremental capacity will have a positive impact on annual earnings per share (EPS) of PKR 0.52 and contribute to a PKR4.3 (US$0.01) per share valuation increase.
Looking ahead, AKD Research expects its share value to rise as a result of incorporating capacity enhancement. Additionally, the stock, supported by improved core margins, an anticipated increase in dividends from the power segment, and a recovery in cyclical segments, will benefit its subsidiaries.
By Abdul Rab Siddiqi, Pakistan
