ARIF HABIB GROUP
S.KAMAL HAYDER KAZMI,
Research Analyst, PAGE
Oct 22 - 28, 2012
The Arif Habib Group (AHG) is structured around Arif Habib Corporation Limited (AHCL), a holding company that primarily manages strategic investments of the company. The group ranks amongst the fastest growing multi-sector groups in Pakistan. This has been made possible by a proven record of a strong ability in identifying and developing successful business ventures and generating phenomenal returns despite subdued economic development. The group manages assets in excess of Rs. 37 billion.
FINANCIAL HIGHLIGHTS (ended June 30, 2012)
INDICATORS RUPEES IN MILLION Total revenue 4,417.37 Operating profit / (loss) 4,295.00 Profit / (loss) before tax 3,994.23 Profit / (loss) after tax 4,254.31
Fatima Fertilizer Company Limited (FFCL) was incorporated in December 2003. The project subsequently became collaboration between two major business groups namely AHG & Fatima group. The fertilizer complex is a fully integrated production facility with rated capacity of 1.5 million tons, is capable of producing two intermediate products. The complex has a 56mw captive power plant and has been allocated 110 mmcfd of gas from the dedicated Mari gas fields.
AHG started its equity brokerage services in 1970. This service is currently being provided by Arif Habib Limited (AHL), a subsidiary of AHCL. AHL provides equity brokerage and corporate finance services to numerous institutional, corporate, high net worth individuals and retail clients. As a step towards expansion of its horizon, AHL has recently started commodity brokerage services through its wholly owned subsidiary Arif Habib Commodities (Pvt) Limited.
Arif Habib Investments Limited (AHI) is an asset management, investment advisory and pension fund management company, managing open-end mutual funds, pension funds and discretionary and non-discretionary portfolios. During 2008, AHI was listed on KSE by way of offer for sale of shares by a few of the existing shareholders of the company to the general public. Presently, AHI manages the most diverse fund slate in the industry with over Rs.45 billion in sixteen mutual funds, two pension funds and various investments plans in its product portfolio to meet the investment needs of its growing clientele.
Aisha Steel Mills Limited (ASML) is a joint venture of AHG, Metal One and Universal Metal Corporation Japan. ASML was incorporated in 2005 to set up a state-of-the-art cold rolling mills in the down-stream Industrial estate of Pakistan steel, Bin Qasim, Karachi at a cost of US $105 million. Furthermore, ASML successfully completed the construction phase of the project, and commenced trial operations in June 2012.
Al Abbas Cement Industries Limited (AACIL) was incorporated in December 1981 and its control was acquired by a consortium of AHG and Al-Abbas group. Presently, it is a subsidiary of AHCL and has a dry process cement plant with a rated production capacity of 3,000 mt per day. The company has got laboratories which are fully equipped and are being managed by qualified and expert field specialists, with proper technology transfer to junior engineers and workmen.
AHG believes that renewable energy is the answer to the ever increasing energy needs of this country and around the world. Sachal Energy Development (Pvt) Limited (SEDL) is a special-purpose company that has been acquired to commission and operate a 50 mw wind farm at Jhimpir, Sind on a build, own & operate basis. SEDL is the wholly owned subsidiary of AHCL. The group expects to contribute to the national endeavour of achieving self sufficiency in power and to the world by reducing dependence on fossil fuels.
Javedan Corporation Limited (JCL) is the owner of land measuring over 1300 acres at Manghopir, Karachi. AHG has 48.4 per cent equity in the project and is developing a housing scheme, Naya Nazimabad, on this land. It is a joint venture with AKD and Ghani Osman, Hum group. It is expected that the project will accommodate the housing demand of the middle income families and is an endeavour to reduce the housing problem of the country.
PAKARAB FERTILIZERS LTD.
For the last 38 years, Pakarab Fertilizers Limited has been the only fertilizer company in Pakistan producing compound fertilizers, calcium ammonium nitrate (CAN) and nitro phosphate (NP). The plant also produces Urea. The company was privatized at a cost of Rs.14.125 billion. It was acquired by a consortium of AHG and Fatima group.
SWEETWATER DAIRIES PAKISTAN (PVT) LTD.
The project has been set up on 28 acres of land with a dairy shed designed by 5G International, USA and is at par with the most advanced dairies in the world. Milk production has already been started. The company is in midst of the turnaround phase and structural changes are expected to make it a profitable venture.
ARIF HABIB REIT MANAGEMENT LTD.
AHG has formally entered the real estate investment business by becoming the first to incorporate a company under the NBFC rules to provide REIT management services and float REIT schemes in Pakistan. Arif Habib REIT management limited has been formed with the primary objective of managing the real estate investments of the group and converting these assets into equity by launching either rental or developmental REIT schemes and offering the units to the general public. The regulations approved by the SECP require that each REIT scheme must have a minimum size of Rs. 2 billion and that the RMC must hold a minimum of 20 per cent in each REIT scheme.
Dolmen city is one of the largest and most prestigious mixed-use developments in Karachi. Currently, two office towers of 450,000 sq. ft., and a shopping mall of 935,000 sq. ft. with leasable area of over 500,000 sq. ft. have been completed. This is a joint venture between dolmen and AHG, which is being developed to serve commercial and corporate clients in an ultra-modern business environment.