In an exclusive management briefing hosted by Arif Habib Ltd as part of its Corporate Insight Series, DG Khan Cement Company Ltd (DGKC) outlined its operational performance and strategic roadmap. Senior executives Mr Inayatullah Niazi (CFO) and Mr Syed Ahsan Awais (AGM Finance) shared updates on capacity expansion, energy diversification, and financial outlook.
DGKC currently operates with a clinker production capacity of 22,400Mtpd, supported by 185MW captive power generation through coal, gas, waste heat recovery, solar, and grid electricity. Management announced plans to add a new 11,000Mtpd clinker line by 1HFY28, with a CAPEX of ~PKR45bn (US$162m). The project will be partly funded through internal cash flows, while ~PKR 30bn will be raised via debt. Plant location was not disclosed during the presentation.
The new line is expected to deliver significant efficiency gains, reducing heat consumption to 680-690kcal/kg and lifting North gross margins from 20 per cent to 28-30 per cent, subject to utilisation. DGKC is also expanding renewable energy investments, including the Khairpur solar plant (7MW to 10MW) and a planned 20-25MW solar project at DG Khan.
DGKC is also pursuing cost optimisation at its Hub plant, where 60 per cent of dispatches are exported, leveraging freight advantages. Alternative fuels such as tyres, carpet waste, and imported solid waste are being utilised to reduce costs. Current coal sourcing includes domestic, Iranian, and imported supplies, priced between PKR 38,000–46,000 per tonne.
Looking ahead, management expects North cement retention prices of PKR 16,700–17,000 per tonne in 4QFY26 and anticipates resuming cement exports to the Middle East once geopolitical conditions stabilise.
DG Khan Cement, part of the Nishat Group, is among Pakistan’s largest cement producers, with plants in DG Khan, Khairpur, and Hub. Established in 1986, the company has built a reputation for innovation, energy diversification, and export competitiveness.
By Abdul Rab Siddiqi, Pakistan
