Research Analyst
July 19 - 25, 2010

ICI Pakistan Limited was subsidiary of ICI Plc United Kingdom but with worldwide takeover of ICI Plc by Akzo Nobel now this is 75.81 per cent owned by Akzo Nobel.

ICI was set up as a public limited company in Pakistan in 1952. ICI's presence in this part of the world, however, predates the formation of the public limited company and indeed, Pakistan itself. The Khewra Soda Ash Company, a predecessor of ICI Pakistan Limited, set up a soda ash manufacturing facility in Khewra in 1944 with a capacity of 18,000 tonnes per annum. This facility was located next to the salt range: rock salt, and limestone two key raw materials for manufacturing Soda ash were available here in abundance.


During the current year, the 65 ktpa Soda Ash plant expansion project at a revised cost of Rs1,850 million was successfully completed and commissioned as per plan without a lost time incident. Net sales income was up by two percent compared to last year. Gross profit was up by three percent on account of better volumes in polyester business and effective margin management. Other operating income of the company showed significant improvement on account of higher income from deposits and other investments. Despite higher production in 2009, the company's energy consumption and fresh water usage remained lower than 2008. This has resulted in a further reduction of CO2 emissions in 2009 by two percent over 2008.


Turnover 32,399 31,922
Net Sales Income 28,430 27,799
Gross Profit 5,676 5,496
Operating Result 3,028 3,052
Profit Before Tax 3,073 2,813
Profit After Tax 2,045 1,863
Earning Per Share (Rs) 14.73 13.42


Today ICI Pakistan's five businesses, Polyester, Soda Ash, Paints, Life Sciences, and Chemicals manufacture and sell a range of industrial and consumer products. These include polyester staple fibres, poy chips, light and dense soda ash, sodium bicarbonate, automotive and decorative paints, specialty chemicals, polyurethanes, and adhesives and arranges manufacture, and animal health products. It also markets seeds and in addition is engaged in trading in various specialised chemicals for use in industries in Pakistan.

In 1995, ICI Pakistan set up a $490 million PTA manufacturing facility at Port Qasim near Karachi, which was commissioned in 1998. In 2001, the business was demerged to form Pakistan PTA Limited, a subsidiary of ICI Plc UK. The company is one of the largest quoted companies on the Karachi, Lahore and Islamabad stock exchanges with a paid up share capital of Rs1.39 billion.


The general chemicals segment includes trading and polyurethanes and is involved in the import, manufacturing, sale, and distribution of industrial chemicals. The trading segment comprises an extremely diversified portfolio of fourteen major product groupings with over 250 products/variants including sixteen well-reputed trading partners such as national starch & chemicals, huntsman polyurethanes, ineos chlor, nalco, huntsman tioxide supplemented by imports of complementary product lines from companies in the USA, Europe, and the Far East. This segment markets a product range used for various applications by nearly every industry in Pakistan, prominent amongst which are power, cement, textiles, paints, pharmaceuticals, personal care, food & beverage, solvents, detergents, footwear and household appliances.

The specialty chemicals segment includes the manufacturing and marketing of textile auxiliaries, adhesives, paint lattices, emulsifiers, and the trading of specialised products to a wide range of industries. However, the chemicals have successfully established export business in Bahrain and Uzbekistan for its textile range.


At present, there are nearly 30 chemical companies in Pakistan. Most of them have shown remarkable progress in their sales in recent years such as Fauji Fertiliser, ICI Pakistan, Engro Chemical, Dawood Hercules, Clariant Pakistan, Sitara Chemical Colgate Palmolive, Berger Paints, BOC Pakistan, Sind Alkalis, Dyno Pakistan.

The rapid industrialisation resulting in the large increase in products such as textiles, glass, paper, ceramics, pharmaceuticals, paints and other chemical consuming products has enlarged the demand of all types of chemicals in the country. This industry produces a various range of products such as polyester fibre, sodium carbonate, PVC, soda ash, PTA, pharmaceutical, paints, fertiliser, insecticides, petro-chemical and other chemicals.

Chemical industry has gradually developed to its present stage and has played a vital part in the development of the country.


On the domestic front, there are signs of macroeconomic stability, however this hard gained recovery is threatened by the pressures building up on fiscal account, further increase in energy shortages, persistent inflation and unease on continued security incidents. Business environment is therefore expected to remain shadowy in 2010. However, ICI Pakistan remains committed to business growth and new investments.