Mughal Steel Capitalizing on Past To meet Future Growth
Mar 29, 2015
Mughal SteelCapitalizing on Past
To meet Future Growth
Video
Timeline• Import of iron products and catering to local
needs• Re-distribution of local products as local
producers com online
1952: Mughal Traders: Journey Begins
1983: Mughal Sons (Pvt) Limited: Corporatization
• Disruption in availability of locally produced products necessitated independence
• Re-rolling mill with capacity of 30,000 tones established
1998: Mughal Steel
2000: Ventures into up/down stream value added products
2002-03: Capacity Expansion
2005: Self-sufficiency in Power Generation
2006-07: Backwards integration & Exports
2010: Mughal Iron & Steel Ltd.
2011 & 12: Coal Gasification Plant & Tandem Section Mill
2013 &
beyond
• Billets Production mill with capacity of 40,000 tons added
• Mughal Steel ventures into upstream value added steel products• Stainless Steel, Spinning Steel, Special Steel• AOD, LRF, CCM, added to plant
• Addition of another furnace in 2002 takes capacity to 70,000 tons
• Rolling Section Mill’s addition takes capacity to 100,000 tons
• 9 MW gas powered plant installed to overcome electricity crisis
• Smelting Furnace, Ferrous Allies plant of 15,000 tons in 2006
• In 2007 Medium Section Mill added of 150,000 tons. Total capacity reached 250,000 tons
• State-of-art Continuous Bar Mill established
• 50,000 Tons furnace added• Coal gasification unit introduced in Pakistan• First-ever tandem section mill with investment of PKR
1.2 Billion and capacity of PKR 250,000 tons added
• Planned listing of Mughal Steel & Iron• Further Expansion to add 80,000 tons• Growth market share
Mughal Steel
Customer Reach
Cost Competit-
iveness
Stakehold-ers Confidence
Operational Agility
• Broad Product Range• Dense Populated
Locations• Strong Brand
Awareness• Focus on Profitable
Segments & Markets/Exports
• Vertical Integration• Strategic Cost Reduction• Capital Optimization
• Flexible Supply Chain• Process Efficiency
• Pioneering Innovation
• Productivity & Quality
• Improved Collaboration
• Engaging with Internal talent
• Promote increased documentation in
industry
Prominent Clients
Awards & Recognitions
ISO Certification Environment Certificate
Export Certificate Brands of the Year 2008-11
Summarizing Past Progress• Sales & Distribution was the core business and
is the competitive advantage till date• Business strategy: Retention of 30% market
share for specific product segments while optimizing costs & capital use– Back integration to control inputs & supply chain– Brand creation to sustain & grow– Surviving & growing without government support
• Emerged as the low business risk corporation ready to embark on growth
Future of Iron IndustryMarket Demand & Supply Scenario• Local demand stems from:
• industry that is linked to economic activity & development
• Household that is primarily linked to agriculture & cash crops
• Local demand is expected to grow as Pakistan’s per capital consumption is well below other countries even the under- developed countries (50% of India)• Export demand emanate s from
development activity in Afghanistan & Central Asia
• Local supply has generally grown at a very slow place • Local supply caters only to industrial
demand and operates in specific product segments• Mughal Steels is unique as it has the
ability to cater diverse industrial product needs & is the only steel manufacturer that caters to households’ construction needs.
EU
Turkey
USA
Iran
Middle East
China
Asia
India
Pakistan
0 50 100 150 200 250 300 350 400 450 500
310
242
285
284
234
460
239
57
28
Per Capita Consumption
19961997
19981999
20002001
20022003
20042005
20062007
20082009
20102011
0
200
400
600
800
1000
1200
1400
1600
-10%
-5%
0%
5%
10%
15%
20%
%age Growth Production (Million tonnes)
Welcome to the world of Strength
Mughal Steel