Mughal Steel
Capitalizing on Past
To meet Future Growth
Video
Timeline
••••
•
•••
•
••
•
Smelting
Furnace,
Ferrous
plant
of
15,000
tons in 2006
Import
Disruption
Coal
gasification
ofSteel
iron
in
products
availability
unit
introduced
and
ofAllies
catering
locally
inproduced
Pakistan
to
local
needs
Billets
Mughal
Addition
50,000
Production
Tons
of
furnace
another
ventures
mill
added
furnace
into
with
upstream
capacity
in
2002
takes
of
value
40,000
capacity
added
tons
steel
added crisis
9InMW
Planned
gas
listing
powered
ofSection
Mughal
plantMill
installed
Steel
& Iron
toofovercome
electricity
2007
Medium
added
150,000
tons.
Total
Re-distribution
products
First-ever
necessitated
tandem
of local
section
independence
products
mill with
as local
investment
producers
of PKR
1.2
products
to
70,000
tons
Further
Expansion
to addtons
80,000 tons
capacity
reached
250,000
com
Re-rolling
Billion
and
mill
capacity
with
capacity
ofaddition
PKR 250,000
of
30,000
tons
tones
added
Rolling
• online
Stainless
Section
Steel,
Mill’s
Spinning
Steel,
takes
Special
capacity
Steel
to
Growth
market
share
State-of-art
Continuous
Bar
Mill
established
established
100,000
• AOD,
tons
LRF, CCM, added to plant
2013 &
beyond
2011 & 12: Coal Gasification Plant &
Tandem Section Mill
2010: Mughal Iron & Steel Ltd.
2006-07: Backwards integration & Exports
2005: Self-sufficiency in Power Generation
2002-03: Capacity Expansion
2000: Ventures into up/down stream value added products
1998: Mughal Steel
1983: Mughal Sons (Pvt) Limited: Corporatization
1952: Mughal Traders: Journey Begins
• Flexible Supply Chain
• Process Efficiency
• Pioneering Innovation
• Productivity & Quality
• Improved Collaboration
Operational
Agility
Customer
Reach
•
•
•
•
Cost
Competitiveness
• Vertical Integration
• Strategic Cost Reduction
• Capital Optimization
Mughal
Steel
• Engaging with Internal
talent
• Promote increased
documentation in
industry
Stakeholders
Confidence
Broad Product Range
Dense Populated Locations
Strong Brand Awareness
Focus on Profitable
Segments &
Markets/Exports
Prominent Clients
Awards & Recognitions
ISO Certification
Export Certificate
Environment 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 Industry
Market 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 underdeveloped 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.
Per Capita Consumption
Pakistan
28
India
57
Asia
239
China
460
Middle East
234
Iran
284
USA
285
Turkey
242
EU
310
0
1600
1400
100
%age Growth
200
300
400
Production (Million tonnes)
500
20%
15%
1200
1000
800
600
10%
5%
0%
400
200
0
-5%
-10%
Welcome to the world of
Strength
Mughal Steel