Making of a Hi-Tech Vendor By: Mohsin Syed Hybrid Technics (Pvt) Ltd.
Dec 24, 2015
Making of a Hi-Tech Vendor
By: Mohsin SyedHybrid Technics (Pvt) Ltd.
Resume Education
MS. Electronics Engineering California State University. Los Angeles, U.S.A. 1980.
B.Sc. Electronics Engineering, University Of Engineering, Lahore 1976.
Commercial Pilot License Holder.
Engineering Experience Design Engineer Saudi Consult Saudi Arabia 1976-80 Member design team Jubail & Yambu Industrial Estates Project Manager Mc Graw Edison Co. Los Angles, California
U.S.A. 1981-84 Design and manufactured about five million units of Seven
different electronic products
Extra Corporate Activities Chairman Punjab Industrial Estates Development &
Management Company (PIE) Member Board Pakistan Aeronautical Complex Pakistan
Airforce Kamra President Board of Management, Lahore District of Technical
Education and Vocational Training Authority (TEVTA) Convener Deletion Program Committee Electrical & Electronic
Products. Engineering Development Board (EDB). President Aircraft Owner & Pilot Association Pakistan Chapter.
Resume
Foreign Collaborations
Sulzer Ruti 1998 Switzerland Mitsuba Corporation 1992 Japan Sucker + Muller + Hacoba 1993 Germany Shindengen Electric 1994 Japan Thies 1999
Germany IRO 2000 Sweden Barco Sedo 2000
Germany
Case History Hybrid Technics Electronic technology in Kot Lakhpat Industrial Estate.
Acquisition of land: 1984-1987 Change of line of business Two years No drainage – sewerage removal from factory area. No garbage removal & disposal. Broken roads. Changing sales tax laws. Harassment from sales, professional tax and customs
department. 2.2 kanal cost of plot Rs. 400,000 Initial investment Rs. 5.0 Million Present investment Rs. 50.0 Million Starting Staff 15 Present Strength 150
Start Up
Start up of Hybrid in 1985 Technical Achievements
Fisheries Motors Suzuki Car Electrical and Electronic Parts
Start up of Negotiations with Atlas Honda Ltd. , Honda Japan and Mitsuba from 1987 – 1992
Launch of Winker Flasher Project
Financing of Project by Local Bank
Guarantee by Atlas Honda Ltd. To local Bank To Hybrid Technics to purchase the parts for seven
Years minimum or One Million parts which they have met.
Actually 13Years of purchasing has been done and still continues.
Business Volume with AHL
0.559 8.68
50.01
110.606
0
50
100
150
sale
s (i
n
mill
ion
)
91-92 94-95 99-2000 2004-05
period
Business Growth with AHL
Total Business Growth
1.216 9.833
59.364
199.606
0
50
100
150
200
Sal
es (
Rs.
in
mill
ion
)
91-92 94-95 99-00 2004-05
Total Business Growth
Jobs Created By Hybrid Technics
0
50
100
150
200
No.s Of Employees
91-92 94-95 99-2000
2004-05
Period
Custom Duty Paid by Hybrid
0.10
2.71
5.24 5.85
0 1 2 3 4 5 6
Rs. in Mln
1991- 92
1994- 95
1999- 2000
2004- 05
Period
Taxes Paid by Hybrid
0.158 0.3730.993
5.222
0
1
2
3
4
5
6
Tax Deposit Rs. in
Million
1991-92
1994-95
1999-2000
2004-05
Period
Launch of Second Project 1994 Regulator Rectifier
Issue High Cost of Technology Long term financing not available from
commercial Banks any more Leasing option utilized to solve the problem Atlas Honda Ltd. Commitment of Five Years Financial charges of Equipment included in
pricing formula
HI-TECH CDI PROJECT 2002Capacitor Discharge Ignition
Cost of Technology and machinery extremely high
Machines leased again with great difficulty
Production still on and is in third year of production
Acquisition of land Project financing at very high interest rate of
20% – 22% initially. Running finance costs were initially high but are
now down to reasonable levels Non availability of good quality raw material Harassment from Sales Tax and Income Tax
officials due to high tax rate
Problems
For construction of factories, Industrial parks with one stop facility across the country
Technology cost will be even higher for the next projects OEM Should invest jointly with the vendor Prudential rules of debt equity should be changed for Hi-
Tech Project Training of staff at international level should be tax
deductible or partly Government sponsored Sales tax + Income tax should be streamlined for
no contact with the tax collectors
Solution and Way Forward
Solution and Way Forward(Continued……)
Tariffs of completely built up units and their basic prices should be monitored by the Tariffs Commission, CBR and EDB for quick reaction to dumping by other countries in Pakistan
Raw material of excellent quality should be allowed at Zero to Five Percent (0% - 5%) duty by commercial importers also
Pakistan Should switch over from a deletion based Engineering Industry to an Export based Engineering Industry
Solution and Way Forward Tax rates should be as follows for the Private Limited Companies to go Public on the stock exchange
Present Rates Proposed rates Public Ltd Co. 35% 15% Private Ltd Co. 43% 20% Partner Ship 25% 25% This structure should encourage excess liquidity with the
people to go into Industrial growth rather than residential and agricultural plots
Recommendations Training programmes for converting
technologists to entrepreneurs Venture Capital System should be established
by GoP. Technology Acquisition from International
Market should be facilitated by Multinationals based in Pakistan
Mid size Pakistani Engineering Companies should enter the International Business Chain
Thank You***