SIDDIQSONS TINPLATE LIMITED

GROUP PROFILE

Siddiqsons Group traces its roots back to 1959 through establishment of Siddiqsons Limited, a textile unit which was a starting point of Denim Dynasty in Pakistan. Since then the Group has expanded into Tinplate, Energy, Construction & Real Estate sectors.

Siddiqsons Tin Plate

Limited is the first and only

Tin Plate Industry in

Pakistan. Established in

1999. It operates a 120,000

tons per annum Electro Tin

Plating (ETP)

Siddiqsons Limited, was

established in 1959. The

company has a fully

integrated vertical setup

which includes Spinning

Division, Knit Denim

Division, Garment Division

and Denim Division

Siddiqsons Energy: the Power Sector

Development division of Siddiqsons Group with the mandate to establish Coal

and Renewable Energy IPPs. It is developing a 330 MW sub-critical Thar coal

power plant at Thar.

Triple Tree Associates was

incorporated by

Siddiqsons, which further

diversified its holdings into

Real Estate. At the

moment several real

estate and construction

projects are under its

belt.

The Group Chairman & main

Sponsor of SSG Mr. Tariq Rafi

is also the owner / director

of MCB Bank Limited with

cumulative holding of 4.4% in

the Bank.

Corporate Social Responsibility (CSR)

Siddiqsons Group is providing below listed CSR facilities to the Local

communities:

• Education

• Provision of Water Supply

• Health

• Games & Sports

• Job Opportunities

• Plantation Drives

Education

• Distribution of Scholarships to the meritorious students/Local & Employees.

• Free IT Training to Local & Employees at IT Training Center Hub & planning to open IT Training center at Winder.

• Distribution of Stationaries, Books, Uniforms & other accessories to the Local/ Employee’s children.

• Revamping & Restarting of the school in collaboration with District Authorities at Local area.

Water Supply

Health Facilities

Games and Sports

Job Opportunities

Plantation Drives

• Provision of water supply through Boring filtered water is provided to the Local Colony.

• Free medical & Screening camps for the local Communities.

• Promotes Games & Sports in Local Communities.

• Creating Employment by Local Recruitments which will be preferred for the available Job slots of the required

expertise.

•Siddiqsons planted around 1000 trees at various locations in Hub.

•Frequent plantation drives within the project surrounding. Siddiqsons planted around 1000 trees at various locations in

Hub and in Karachi and received

“BEST TREE PLANTATION AWARD” from NFEH

Corporate Social Responsibility (CSR)

COMPANY OVERVIEW

Siddiqsons Tin Plate Limited is the first and only Tin Plate producer in Pakistan.

The Company was established in 1996, in collaboration with SOLLAC of France and Mitsubishi Corporation

The factory is located at special industrial zone, Windhar, Baluchistan

The project has a capacity to produce 120,000 tons per annum of Tin Plate, which is primarily used for making cans and containers for packaging of cooking oil, fruits, foods, vegetables, sea foods, beverages, paints, lubricant oil and other edible products

Key customers of the Company include Dalda Foods, Pakistan Oil Mills, Punjab Oil Mills, LatifGhee Mills, IFFCO, Shujaabad Agro, Meezan Oil, Associated Industries, Rehan Can

CORPORATE INFORMATION

Board of Directors

- Mr. Tariq Rafi Chairman

- Mr. Munir Qureshi CEO

- Mr. Ibrahim Shamsi Non-Exe. director

- Ms. Alia Sajjad Non-Exe. director

- Mr. Ashraf Mehmood Wathra Ind. director

- Mr. Abdul Wahab Ind. director

- Mr. Naeem ul Hasnian Mirza Exec. director

Pattern of Shareholding

- Mr. Tariq Rafi 19.72%

- M/s. Siddiqsons Limited 15.28%

- M/s. Arcelor Mittal, France 9.29%

- Other directors, sponsors, CEO

& their Spouse and management 22.33%

- General public & others 33.38%

Entity Rating

The ratings reflect Siddiqsons Tin Plate’s

established foothold in the tin plate

industry as the first and sole local

manufacturer of tin plate in Pakistan.

Siddiqsons has a market share of ~31% in

the local market. The demand for the

Company’s products has shown growth

in the recent past due to increased

hygiene consciousness of the public at

large and higher use of processed food.

Entity Rating:Long-Term: A-Short-Term: A2Outlook Stable

COMPANY OVERVIEW

KEY PRODUCTS & MAJOR CLIENTS

South Africa

ITALY

UAESaudi Arabia

Afghanistan

EXPORT MARKETS

KEY HIGHLIGHTS

Significant improvement in operational activities, posting 77% increase in

revenue and 47% increase in CAPU;

Exports have increased by 147%;

Despite of difficult market situation due to high volatility in worldwide steel

prices and COVID-19, operational performance has significantly improved w.r.t

Revenue, profitability & Capacity Utilization;

Special Economic Zone status has been awarded for our upstream unit of

TMBP, providing 10 years tax holiday and exemption on duty & sales tax on

import of plant and machinery.

OPERATIONAL HIGHLIGHTS

▲% March 21 March 20 June 20

Local sales 58 3,169,401 1,999,671 2,905,281

Export Sales 147 1,309,376 531,125 651,167

EBITDA excl. Non-Recurring Items

% of sales

146 313,839

7.0%

127,634

5.0%

87,827

2.5%

Net Income / (Loss) after tax

% of sales

877 131,845

3.0%

(16,961)

(0.7%)

(23,144)

(0.6%

EPS 0.58 (0.08) (0.1)

Quantity SOLD 64 26436 16150 22489

CAPU

%

47 24285

27%

16484

18.3%

24061

20%

(Rs. in 000’s)

QUARTERLY OPERATIONAL ANALYSIS

1289

1902

1288

1182

1712

1089

45 61 87

QTR.1 QTR.2 QTR.3

Sales COGS PBT

(Rs. in millions)

BREAKUP OF TOTAL COST/EXPENSES

93%

2%

2%

1%

2%

Total Cost

COGS

Distribution Cost

Admin Expenses

Other operating

expenses

Finance cost

93%

3% 2%2%

Cost of Sales

Raw material

Salaries, wages and

benefits

Fuel and power

Other manufacturing

cost

TREND ANALYSIS

-80000

-60000

-40000

-20000

0

20000

40000

60000

80000

100000

120000

140000

2016 2017 2018 2019 2020 Mar 21

58888

128330

-67733

86891

-23144

131845

Profit After Tax (Rs. in Million)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2016 2017 2018 2019 2020 Mar 21

2119

25382646

34093556

4479

Sales Revenue (Rs. in Million)

TREND ANALYSIS

0

5000

10000

15000

20000

25000

2016 2017 2018 2019 2020 Mar 21

24471

1905118221

19478

24061 24285

Quantity Produced (In M.Ton.)

20000

21000

22000

23000

24000

25000

26000

27000

2016 2017 2018 2019 2020 Mar 21

25230

25727

24402

23784

22489

26436

Quantity Sold (In M.Ton.)

PROJECT HIGHLIGHTS

Capacity of TMBP Project

Total Production Capacity= 175,000 MT p.a.

• TMBP=120,000 MT p.a.

• CRC=55,000 MT p.a.

Total Cost PKR 8.5 billion (financed by 60% debt and 40% equity)

Expenditure Incurred

uptill June 2021

PKR 2,346,498,672 (two billion three hundred forty-six million four hundred

ninety-eight thousand six hundred seventy-two)

Key Benefits

HRC being the input material for TMBP is internationally available.

In-house availability of TMBP, resulting optimum CAPU of ETP plant Reduction in conversion cost of tin plating due to increased CAPU Zero import duty on HR Coils as compared to TMBP Consistency in production and quality, will also lead to enhance exports

PROJECT MILESTONES ACHIEVED

1. Main Plant Building – Completed

2. Foundations of Equipment – Completed

3. Office cum Residential Building – Completed

4. 17MW (132kV/11kV) Electric Power Grid Station &

Transmission Line – Under Construction

5. Over Head Cranes (04 Nos.) & Gantry Crane (01 No) –

are at Site

PROJECT STATUS

Main Plant Buildings

1. PPL Building Completed

2. CRM Building Completed

3. RCL & Finished Goods Building Completed

Civil Foundation of Equipment

1. Push Pull Pickling Line Completed

2. 6Hi Cold Reversing Mill Nearly complete

3. Electrolytic Cleaning Line Completed

4. Bell Type Annealing Furnace Completed

5. Temper Mill Nearly complete

6. Recoiling Line Completed

7.General Machine Workshop Completed

PROJECT STATUS

Over Head Cranes

1. PPL 02 Nos. Are at Site

2. RCL 02 Nos. Are at Site

3. Gantry Crane 01 No. Are at Site

DISPUTE STATUS

- Arbitration case filed by CISRI in Singapore on August

26th,2021.

- Schedule finalized by Singapore Arbitrator for final

hearing shall be conducted during January,2022.

PICTORIAL REVIEW OF PROJECT SITE

Tin Mill Black Plate Complex


Office cum Residential Building


PPL Pre-Engineered Building


PPL Exit Section Equipment Foundation PPL Process area Equipment Foundation


Choker Dechoker Equipment

Foundation BAF Equipment Foundation


RCL Equipment Foundation

FUTURE OUTLOOK

A review petition has been filed with National Tariff Commission for review of Antidumping duty on import of TMBP, and NTC has asked Engineering Development Board torevisit the capabilities of local producers, inviting STPL’s representative in the technicalteam;

Decrease in electricity cost through setting up of 1MW Solar Power Plant at Winder;

Further enhancement in export volume to the new developed export destinations andmarket expansion in the existing export markets;

Continue to retain loyal customer base;

The backward integration for production of TMBP is inevitable, hence it’s earliestcompletion is the main focus of the management;

Our case is strong and we expect to win the arbitration and will jump start the project.

The financial viability of the project has further improved due to zero custom duty on HRCand removal of turnover tax on income as announced in recent Federal Budget.

Q & Aemail: [email protected]

THANK YOU

SIDDIQSONS TINPLATE LIMITED

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