ICI Pakistan Limited: Strong Volume Growth by Restructuring

By Haque, Mohammad Zahirul | Economic Review, April 1997 | Go to article overview

ICI Pakistan Limited: Strong Volume Growth by Restructuring


Haque, Mohammad Zahirul, Economic Review


ICI Pakistan Limited is incorporated in Pakistan and is listed on Karachi and Lahore Stock Exchanges. It produces Polyester, Soda Ash, Paints, Agrochemicals and seeds, Pharmaceuticals, Chemicals, with another launching programme of Pure Terephthalic Acid (PTA).

Changes in the Board of Directors

Mr. Naseem S. Mirza has relinquished the office of the Chairman/Director at the conclusion of the 45th Annual General Meeting which was held on April 17, 1997. Another gentleman who bade farewell to ICI, is Iain M. Macfarlane, Group Manager, Regional Business, Imperial Chemical Industries PLC who was on the Board of Directors of ICI Pakistan since September 1993. They have been given a hearty farewell by the Board. The Board also welcomed Mr. Desmond O'Shea who replaces Mr. Nasim S. Mirza as Chairman/Director of the organisation. Mr. Desmond O'Shea has hitherto been Regional Executive Asia, ICI PLC based in London.

The economic and political turmoils on the Governmental level placed this company also to a very unfavourable position. The rising of taxes and the falling of tariffs on the finished products and their imports restricted selling prices and thereby the margins for domestic goods, checking monetary expansion and lowering the fiscal deficit in order to meet the targets given by the IMF. Moreover, the rates of interest was increased exorbitantly. All these factors combined together created unmanageable turmoils generally for all businesses and industries.

Yet the company fought out the unhappy situation and was able to show strong volumetric growth by restructuring all through resulting into the controlling of costs and improving of productivity, which resulted into record profit in all fields except polyester fibre and pharmaceuticals, which owing to external pressure caused adverse swing of Rs.476 million in operating profit as compared to 1995. It was, however, made up by the profits earned in other sectors and the overall operating profit of 1996 was Rs.975.5 million which is very near to the last year's profit. Total turn-over exceeded Rs.8 billion or a 16 per cent improvement over last year. These results are undoubtedly very satisfactory.

Polyester

The plant worked in full bloom, but the production remained at last year's level except that the domestic demand was 18 per cent higher. The selling prices remained under pressure from the low prices quoted by foreign exporters whereas the low prices quoted by the exporters from Far East and Saudi Arabia.

The issue of dumping continue to threaten the local polyester staple fibre industry and has now assumed greater significance as import duties fall in line with IMF conditionalities. ICI has, therefore, objected strongly to the government against dumping, and advocated for effective anti-dumping legislation, Work on expansion project was completed in December 1996 and was commissioned early this year and it is now in operation giving Sheikhupura plant of ICI an expanded capacity of over 91,000 tonnes/annum.

Soda Ash

The industrial dispute at Khewra was settled in February 1996 after signing a two year wage agreement with the Union. After this settlement the production substantially increased. Business position in the glass sector, however, remained sluggish owing to the depleted demand, but overall demand of the product remained strong. Yet the low production in the previous year owing to strike was made up by import of 3000 tonnes in the first quarter of 1996 to maintain the demand level, and a 10 per cent increase in the price in December 1996 helped in recovering the input cost significantly per annum and enabled the company to increase the profit by 86 per cent over the last year. The growth of sales of Sodium Bicarbonate was also very significant in comparison with that in 1995. Calcium carbonate also made a good increase in production in line with the demand.

Paints

Political and economic uncertainty prevailing in the country throughout the year cast a very bad impact on this sector. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

ICI Pakistan Limited: Strong Volume Growth by Restructuring
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.