What has Pakistan Cables been up to?
Despite difficulties, the company has been slugging away and staying on track for their expansion plans
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hat has Pakistan Cables been up to? In the midst of one of the worst years for construction (2020) and the best years for construction (2021), the company has been quietly sluggin away at its expansion plan - that it had prepped for all the way back in 2018. In a notice sent to the Pakistan Stock Exchange on August 17, the company laid out its quarterly progress report on the utilization of its right share funds. To recall, in April 2018, the company had offered 25% right shares for the purpose of acquiring machinery for its manufacturing expansion project, by offering 7,115,594 shares to existing shareholders at a price of Rs160 per share (including a share premium of Rs150 per share). As per the notification,
CONSTRUCTION
the right shares were fully subscribed by the shareholders and the proceeds from the issue were credited in the company’s bank account at end of July 2018. Today, the full proceeds of around Rs1,138 million have been spent by the company on construction and civil works, as of June 30, 2021. The company had purchased a 42-acre plot of land in Nooriabad-SITE in 2018 for a new manufacturing base, with most of the work intended to be completed by end 2021. After the site is done, manufacturing operations will be split between the new Nooriabad factory and the current S.I.T.E factory. Not bad for a company that essentially has perfectly timed its expansion plans to coincide with the biggest boom. Pakistan Cables has been one of the strongest performing companies on the exchange, even during
its rough years. And the latest 2021 financial results only point to that. Here’s how it got here: the company is the brainchild of Amir Sultan Chinoy, an industrialist born in British India in 1921. He migrated to Pakistan and almost immediately had a massive impact on the industrialisation of the nascent country, incorporating International Industries (it initially dealt in electronic instruments). Chinoy initially named the company Sir Sultan Chinoy & Co. Ltd., after his father. In 1953, Chinoy sponsored the establishment of Pakistan Cables Ltd, as a joint venture with British Insulated Callender’s Cables (BICC). The company was the pioneering company in Pakistan’s cable industry, producing conductors, cables, and wires for the new country. In 1984, the company started extrusion of anodized aluminium profile sections
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