Table of Contents

INDUSTRY..............................................................................................2
PHARMA AND BIO TECH..........................................................................2
Pharmaceutical & Bio Tech Industry in Pakistan......................................................4
Concentration Ratio...............................................................................5
Concentration Levels............................................................................................... 5
Problems................................................................................................................. 6
Herfindahl - Hirschman Index..................................................................6
Results of the Survey (2009,2011,2012,2013)........................................10
Interpretations:....................................................................................10
Top Players of Pharma and Bio Tech industry.........................................10
GlaxoSmithKline Pakistan Limited.........................................................................10
Abbott Laboratories (Pakistan) Limited.................................................................11
Sanofi-Aventis Pakistan Limited............................................................................. 12
The Searle Company Limited................................................................................13
ENGINEERING INDUSTRY.......................................................................14
Introduction of Engineering Industry.....................................................................14
Pakistan Engineering Industry..............................................................14
Results of the Survey (2010-2013)........................................................15
Interpretation:.....................................................................................15
Top Player of Engineering Industry........................................................16
Millat Tractors Limited........................................................................................... 16
Hinopak Motors Limited......................................................................................... 17
Ghandhara Industries Limited............................................................................... 18
Bolan Castings Limited.......................................................................................... 18
Al-Ghazi Tractors Limited....................................................................................... 19
KSB Pumps Company Limited................................................................................21

INDUSTRY
Industry is the production of goods or services within an economy. The major source of revenue
of a group or company is the indicator of its relevant industry. When a large group has multiple
sources of revenue generation, it is considered to be working in different industries.
Manufacturing industry became a key sector of production and labour in European and North
American countries during the Industrial Revolution, upsetting previous mercantile and feudal
economies. This occurred through many successive rapid advances in technology, such as the
production of steel and coal.
Following the Industrial Revolution, possibly a third of the world's economic output is derived
that is from manufacturing industries. Many developed countries and many developing/semideveloped countries (People's Republic of China, India etc.) depend significantly on
manufacturing industry. Industries, the countries they reside in, and the economies of those
countries are interlinked in a complex web of interdependence.

PHARMA AND BIO TECH INDUSTRY

Pharmaceutical companies work their mojo to make medicines that cure some diseases, manage
others, and protect us from infection in the first place. Big Pharma includes a handful of major
companies that dominate the industry. While many of these firms also produce animal health
products, livestock feed supplements, vitamins, and a host of other goods, this profile will focus
solely on their drug products used to treat human illness.
Mid 1800
The modern pharmaceutical industry traces its roots to two sources. The first of these were local
apothecaries that expanded from their traditional role distributing botanical drugs such as
morphine and quinine to wholesale manufacture in the mid 1800s. Rational drug discovery from
plants started particularly with the isolation of morphine, analgesic and sleep-inducing agent
from opium, by the German apothecary assistant Friedrich Sertrner, who named the compound
after the Greek god of dreams, Morpheus. Multinational corporations including Merck,
Big Pharma is one of the world's most profitable industries. During the last 30 years, the industry
has spent billions of dollars on research and reaped billions in return. In 2006 alone, the
2

pharmaceutical industry introduced 31 major drugs and sold $643 billion in products worldwidea 7 percent increase over 2005 sales, according to the drug market research firm IMS Health.
U.S. sales beat the national average with growth of 8.3 percent (up from 5.4 percent growth in
2005).
Biotechnology, a newer area, has alternately been the sweetheart and the bane of investors in
recent years. Simply put, biotechnology, the applied knowledge of biology, seeks to duplicate or
change the function of a living cell so it will work in a more predictable and controllable way.
The biotechnology industry uses advances in genetics research to develop products for human
diseases and conditions. Several biotech companies also use genetic technology to other ends,
like the manipulation of crops.
Biotech opportunities largely mirror those in the pharmaceutical industry. The key difference is
that biotech firms are much more focused on research because they are still developing their
initial products. Biotech firms tend to expand their marketing and sales forces when-and if-a
viable product nears FDA approval. And it's become common for small companies to seek
alliances with larger companies that already have the requisite infrastructure in place for these
functions. This means that jobs for nonscientists are scarcer in biotech than in pharmaceuticals.
The Pharmaceutical & Biotech Industry continues to evolve on a seemingly daily basis. A recent
spate of mergers and acquisitions has allowed companies to diversify their assets and shift their
focuses to new endeavors, helping to blur the lines between the traditional pharmaceutical and
biotech sectors. In addition, the increased use of real estate investment trusts (REITs) and
contract manufacturing organizations (CMOs) are changing the way larger companies operate.
Industrial Info's coverage provides detailed information on 1,400 active projects totaling $67.65
billion in investment value and 3,900 operational and pre-commissioned plants worldwide,
providing accurate, continually verified intelligence about project milestones, equipment needs,
key contacts and much more. In addition, our Pharmaceutical & Biotech Database includes
information on hundreds of canceled or on-hold projects and inactive or closed facilities.
Along with plant and project information, contact details for more than 5,100 key decisionmakers for projects and 24,200 key plant contacts are consistently verified and updated,
providing you with direct access to the people you need to find.
3

Pharmaceutical & Bio Tech Industry in Pakistan

The pharmaceutical industry in Pakistan has grown during the last few decades and
manufacturing the world class high quality medicines & drugs. At the time of the independence
of Pakistan in 1947, there were few production units in the country. Currently Pakistan has more
than 800 large volume pharmaceutical formulation units running on world class high quality
equipments, including those operated by 25 multinationals present in the country. The Pakistan
Pharmaceutical Industry meets around 90% of the country's demand of finished dosage forms
and 4% of Active ingredients. Specialized finished dosage forms such as soft gelatin capsules,
parenteral fat emulsions and Metered-dose inhalers continue to be imported. There are only a few
bulk drug Active ingredient producers and Pakistan mainly depends on imports of bulk drugs for
its formulation needs resulting in frequent drug shortages. Political disturbances and allegations
of under-invoicing add to the uncertainty of imports and clashes with the customs and tax
authorities are common.
Pakistan is a developing pharmaceutical market, with a large population and economic progress
evident, but per capita drug spending was rather low at around US$9.30 in 2007. Private
spending accounts for 65% of total healthcare expenditure sourced through out-of pocket
payments, international aid and religious or charitable institutions. Pharmaceutical spending
accounts for less than 1% of the country's GDP, comparable to levels in some neighboring
countries but above that in some of the South Asian countries. The forecast period is likely to
witness the marginal strengthening of the generics sector, albeit more in terms of volumes than
values. The share of generics is also likely to increase further as major drugs come off-patent in
the near term, to the likely benefit of the generics-dominated local industry.
The Pakistan pharma industry is relatively young in the international markets with an export
turnover of over US$ 100 Million as of 2007. Pakistan Pharma Industry boasts of quality
producers and many units are approved by regulatory authorities all over the world. Like
domestic market the sales in international market have gone almost double during last five years.
The pharma industry is focusing to an Export Vision of USD 500 Million by 2013. In the
meantime, exports are also likely to be boosted by new regional and global opportunities.

Concentration Ratio
In economics, a concentration ratio is a measure of the total output produced in an industry by a
given number of firms in the industry. The most common concentration ratios are the CR4 and
the CR8, which means the market share of the four and the eight largest firms. Concentration
ratios are usually used to show the extent of market control of the largest firms in the industry
and to illustrate the degree to which an industry is oligopolistic.
The standard tools of competition economists and competition authorities to measure market
concentration are the Herfindahl index (HHI) and the concentration ratios (CR(n)).These two are
known as the traditional structural measures of market concentration (based on market shares).
The concentration of firms in an industry is of interest to economists, business strategists and
government agencies.
Two Common ratios
1
2

The Four-Firm Concentration Ratio measures the total market share of the four largest
firms in an industry.
The Eight-Firm Concentration Ratio measures the total market share of the eight largest
firms in an industry.

Usually, these two common ratios are comparable from industry to industry, while concentration
ratios for other numbers of firms can be also calculated.
Calculation
The concentration ratio is the percentage of market share held by the largest firms (m) in an
industry.

CRm= mi=1 si

Therefore it can be expressed as:

CRm = s1 + s2 + .... + sm where si is the market share and m defines the ith firm

Concentration Levels
Concentration ratios range from 0 to 100
low or medium to high to "total" concentration.

percent.

The

levels

reach

from no,

No concentration : 0% means perfect competition or at the very least monopolistic

competition. If for example CR4=0 %, the four largest firm in the industry would not
have any significant market share.
5

Low concentration : 0% to 50%. This category ranges from perfect competition to an

oligopoly.

Medium concentration : 50% to 80%. An industry in this range is likely an oligopoly.

High concentration : 80% to 100%. This category ranges from an oligopoly to monopoly.

Total concentration : 100% means an extremely concentrated oligopoly. If for example

CR1= 100%, there is a monopoly.

Problems
The definition of the concentration ratio does not use the market shares of all the firms in the
industry and does not provide the distribution of firm size. It also does not provide a lot of detail
about competitiveness of the industry. The concentration ratios just provide a sign of the
oligopolistic nature of an industry and indicate the degree of competition. The Herfindahl
index provides a more complete picture of industry concentration than does the concentration
ratio.

Herfindahl - Hirschman Index

The Herfindahl index (also known as HerfindahlHirschman Index, or HHI) is a measure of the
size of firms in relation to the industry and an indicator of the amount of competition among
them. Named after economists Orris C. Herfindahl and Albert O. Hirschman, it is
an economic concept widely applied in competition law, antitrust and also technology
management. It is defined as the sum of the squares of the market shares of the firms within the
industry (sometimes limited to the 50 largest firms), where the market shares are expressed as
fractions. The result is proportional to the average market share, weighted by market share. As
such, it can range from 0 to 1.0, moving from a huge number of very small firms to a
single monopolistic producer. Increases in the Herfindahl index generally indicate a decrease in
competition and an increase of market power, whereas decreases indicate the opposite.
Alternatively, if whole percentages are used, the index ranges from 0 to 10,000 "points". For
example, an index of .25 is the same as 2,500 points.
The major benefit of the Herfindahl index in relationship to such measures as the concentration
ratio is that it gives more weight to larger firms.
The measure is essentially equivalent to the Simpson diversity index used in ecology and to the
inverse participation ratio (IPR) in physics.
Example
6

For instance, we consider two cases in which the six largest firms produce 90% of the goods in a
market. In either case, we will assume that the remaining 10% of output is divided among 10
equally sized producers.

Case 1: All six of the largest firms produce 15% each.

Case 2: The largest firm produces 80% and the next five largest firms produce 2% each.

The six-firm concentration ratio would equal 90% for both case 1 and case 2. But the first case
would promote significant competition, where the second case approaches monopoly. The
Herfindahl index for these two situations makes the lack of competition in the second case
strikingly clear:
Case
1:
Herfindahl
index
=
(0.152+0.152+0.152+0.152+0.152+0.152)
(0.012+0.012+0.012+0.012+0.012+0.012+0.012+0.012+0.012+0.012)= 0.136 (13.6%)

Case 2: Herfindahl index = 0.802 + 5 * 0.022 + 10 * 0.012 = 0.643 (64.3%)

This behavior rests in the fact that the market shares are squared prior to being summed, giving
additional weight to firms with larger size.
The index involves taking the market share of the respective market competitors, squaring it, and
adding them together (e.g. in the market for X, company A has 30%, B, C, D, E and F have 10%
each and G through to Z have 1% each). If the resulting figure is above a certain threshold then
economists consider the market to have a high concentration (e.g. market X's concentration is
0.142 or 14.2%). This threshold is considered to be 0.25 in the U.S., while the EU prefers to
focus on the level of change, for instance that concern is raised if there is a 0.025 change when
the index already shows a concentration of 0.1. So to take the example, if in market X company
B (with 10% market share) suddenly bought out the shares of company C (with 10% also) then
this new market concentration would make the index jump to 0.162. Here it can be seen that it
would not be relevant for merger law in the U.S. (being under 0.18) or in the EU (because there
is not a change over 0.025).
Formula

where si is the market share of firm i in the market, and N is the number of firms. Thus, in a
market with two firms that each have 50 percent market share, the Herfindahl index equals
0.502+0.502 = 1/2.

The Herfindahl Index (H) ranges from 1/N to one, where N is the number of firms in the market.
Equivalently, if percents are used as whole numbers, as in 75 instead of 0.75, the index can range
up to 1002, or 10,000.

An H below 0.01 (or 100) indicates a highly competitive index.

An H below 0.15 (or 1,500) indicates an un-concentrated index.
An H between 0.15 to 0.25 (or 1,500 to 2,500) indicates moderate concentration.
An H above 0.25 (above 2,500) indicates high concentration.

A small index indicates a competitive industry with no dominant players. If all firms have an
equal share the reciprocal of the index shows the number of firms in the industry. When firms
have unequal shares, the reciprocal of the index indicates the "equivalent" number of firms in the
industry. Using case 2, we find that the market structure is equivalent to having 1.55521 firms of
the same size.
There is also a normalised Herfindahl index. Whereas the Herfindahl index ranges from 1/N to
one, the normalized Herfindahl index ranges from 0 to 1. It is computed as:

for N > 1 and

for N = 1
where again, N is the number of firms in the market, and H is the usual Herfindahl Index, as
above. Using the normed Herfindahl index, information about the total number of players (N) is
lost, as shown in the following example: Assume a market with two players and equally
distributed market share; H = 1/N = 1/2 = 0.5 and H* = 0. Now compare that to a situation with
three players and again, an equally distributed market share; H = 1/N = 1/3 = 0.333...,
whereas H* = 0 like the situation with two players. Apparently, the market with three players is
less concentrated albeit not obvious looking at just H^*. Thus, normalized Herfindahl index can
serve as a measure for equality of distribution but is less suitable for concentration
Problems
The usefulness of this statistic to detect and stop harmful monopolies however is directly
dependent on a proper definition of a particular market (which hinges primarily on the notion of
substitutability).
For example, if the statistic were to look at a hypothetical financial services industry as a whole,
and found that it contained 6 main firms with 15% market share apiece, then the industry would
look non-monopolistic. However, one of those firms handles 90% of the checking and savings
8

accounts and physical branches (and overcharges for them because of its monopoly), and the
others primarily do commercial banking and investments. In this scenario, people would be
suffering due to a market dominance by one firm; the market is not properly defined because
checking accounts are not substitutable with commercial and investment banking. The problems
of defining a market work the other way as well. To take another example, one cinema may have
90% of the movie market, but if movie theatres compete against video stores, pubs and
nightclubs then people are less likely to be suffering due to market dominance.
Another typical problem in defining the market is choosing a geographic scope. For example,
firms may have 20% market share each, but may occupy five areas of the country in which they
are monopoly providers and thus do not compete against each other. A service provider or
manufacturer in one city is not necessarily substitutable with a service provider or manufacturer
in another city, depending on the importance of being local for the businessfor example,
telemarketing services are rather global in scope, while shoe repair services are local.
The United States Federal anti-trust authorities such as the Department of Justice and the Federal
Trade Commission use the Herfindahl index as a screening tool to determine whether a proposed
merger is likely to raise antitrust concerns. Increases of over 0.01 generally provoke scrutiny,
although this varies from case to case. The Antitrust Division of the Department of
Justice considers Herfindahl indices between 0.15 and 0.25 to be "moderately concentrated" and
indices above 0.25 to be "highly concentrated".
As the market concentration increases, competition and efficiency decrease and the chances
of collusion and monopoly increase.

ABOT
FEROZ
GLAXO
HINOO

PHARMA AND BIO TECH

Abbott Laboratories (Pakistan) Limited
Ferozsons Laboratories Limited
GlaxoSmithKline Pakistan Limited
Highnoon Laboratories Limited

Sales Rs. Millions

17217.258
1953.192682
25230.878
3007.924648

N
IBLHL
OTSU
SAPL
SEARL
WYETH

IBL Healthcare Limited

Otsuka Pakistan Limited
Sanofi-Aventis Pakistan Limited
The Searle Company Limited
Wyeth Pakistan Limited

863.746
1293.711
8791.59
5149.798
3115.717

Year
2009
2011
2012
2013

C4
82.4025
82.9489
84.2606
84.6387

C8
100
98.8611
98.8263
98.7035

Herfindhal Index
2261.91222
2346.03498
2337.63910
2390.51923

Results of the Survey (2009,2011,2012,2013)

Interpretations:

In all the years the value of concentration ratio 4 is more than 80%.
Which shows that, Pharma and Bio Tech industry in this range in between 2009, 11, 12
and 2013 is likely an oligopoly to monopoly, CR4 is more towards Monopoly.
In between years 2011-2013 the value of concentration ratio 8 is more than 80% and less
than 100%. Which shows that, industry is likely an oligopoly to monopoly.
But in years 2009 the value of concentration ratio 8 is 100%. Which shows that, the
Pharma and Bio Tech industry industry is likely a monopoly or total concentration.
In all the years, the value of HerfindahlHirschman Index is between 0.15 to 0.25 (or
1,500 to 2,500) indicates moderate concentration index. These index points indicates a
competitive industry with no dominant players and all firms have an equal share. In
simple word the industry is more towards Perfect competition.

Top Players of Pharma and Bio Tech industry

GlaxoSmithKline Pakistan Limited
GlaxoSmithKline Pakistan Limited was created January 1st, 2001 through the merger of
SmithKline and French of Pakistan Limited, Beecham Pakistan (Private) Limited and Glaxo
Wellcome (Pakistan) Limited and stands today as the largest pharmaceutical company in
Pakistan.
GSK is a long established investor in Pakistan. Our legacy company Glaxo Laboratories Pakistan
Ltd. was the first pharmaceutical company to be listed on the Karachi Stock Exchange in 1951.
GSK Pakistan operates mainly in two industry segments: Pharmaceuticals (prescription drugs
and vaccines) and consumer healthcare (over-the-counter-medicines, oral care and nutritional
care). In Pakistan, the Company deals in Anti-infective, Respiratory, Vaccines, Dermatological,
10

Gastrointestinal,

Analgesics,

Oncology,

Urology,

Central

Nervous

System,

Allergy,

Cardiovascular and Vitamins therapy areas.

We are committed to our mission of providing patients quality products to help improve the
quality of their lives. Some of our leading pharmaceutical brands include Augmentin, Seretide,
Amoxil, Velosef, Zantac and Calpol and renowned consumer healthcare brands, which include
Panadol, Horlicks, Sensodyne and ENO. Prominent vaccines include Synflorix, Infanrix Hexa,
Rotarix, Engerix-B, Havrix and Priorix Tetra.
Today GSK Pakistan is highly successful business and a market leader by value and volume
share in the country. Major competitors are MNCs such as Abbott, Novartis, Pfizer, Sanofi and
local companies like Getz and Sami. GSK Pakistan has built a competent commercial capability
with a track record of successfully integrating the BMS, UCB, and Stiefel businesses, and
building a diverse and profitable business of over 150 brands. The sale of this company 25230
million.
GSK Pakistan presently employs about 2,300 persons across its Sales, Global Manufacturing
Services (GMS), Pharma division and Consumer Health Care functions. Our Global
Manufacturing Services (GMS) in Pakistan consists of three facilities; West Wharf, F-268 site
and Korangi.

Abbott Laboratories (Pakistan) Limited

We are a global, broad-based health care company devoted to discovering new medicines, new
technologies and new ways to manage health. Our products span the continuum of care, from
nutritional products and laboratory diagnostics through medical devices and pharmaceutical
therapies. Our comprehensive line of products encircles life itself addressing important health
needs from infancy to the golden years.
With over 70,000 employees worldwide and a global presence in more than 130 countries,
Abbott is committed to improving people's lives by providing cost effective health care products
and services that consistently meet the needs of our customers.
Abbott Pakistan is part of the global healthcare corporation of Abbott Laboratories, Chicago,
USA.
11

Abbott started operations in Pakistan as a marketing affiliate in 1948; the company has steadily
expanded to comprise a work force of over 1500 employees. Currently two manufacturing
facilities located at Landhi and Korangi in Karachi continue to use innovative technology to
produce top quality pharmaceutical products.
Abbott Pakistan has leadership in the field of Pain Management, Anesthesia, Medical Nutrition
and Anti-Infectives. Our wide range of products is managed and marketed through three
marketing arms.
On June 29, 2005 Abbott Pakistan Achieved Class 'A' accreditation against the Oliver Wight
ABCD Check list. This was an outstanding achievement, which puts Abbott Pakistan amongst
some of the best global companies in terms of operational excellence.
A continuous process of innovation, research and development at Abbott's worldwide facilities
enables Abbott Pakistan to offer effective solutions for various healthcare challenges, with
products and services that are well focused, within the customer's reach and contribute to
improved health care of the people of Pakistan.
Abbott believes that Corporate Social Responsibility is fundamental to earning and deepening
the trust of the people it serves, an integral part of its commitment to improve lives has
contributed to a number of humanitarian causes and supported various institutions in various
fields including health and education. The anuual sale is 17217 million.
The promise of our company is in the promise that our work holds for health and for life.

Sanofi-Aventis Pakistan Limited

Sanofi is a global diversified healthcare leader that discovers, develops and distributes
therapeutic solutions focused on patients needs.
Our strategy is based on three key principles: increasing innovation in R&D, seizing external
growth opportunities and adapting the companys model to future challenges and opportunities.
With approximately 110,000 employees in 100 countries, Sanofi and its partners act to protect
health, enhance life and respond to the potential healthcare needs of the 7 billion people around
the world.
12

The Searle Company Limited

Searle Pakistan Limited (SPL) was incorporated in Pakistan as a Private Limited Company on
October 5, 1965 as a subsidiary of G.D. Searle & Co., U.S.A. In 1966, Searle Pakistan (Private)
Limited acquired a small manufacturing facility in S.I.T.E. and production of Aldactone,
Lomotil, Diodoquin, Ovulen, Neomycin Sulphate, Probanthine and Hydryllin, etc. started there.
Over the years the operation expanded and during 1984 construction of a new factory started.
During mid 1986 manufacturing operations of high quality pharmaceutical products commenced
at this newly built factory at Karachi, measuring 5.24 acres.
On 29th April 1993, G.D. Searle & Company as part of its global policy, disinvested its shares in
Pakistan. On November 14, 1993, the company was converted into a Public Limited Company
As a further milestone, during 1996 Ministry of Health, Islamabad, also allowed the
manufacturing of Antibiotic products in a dedicated area constructed within SPL present
manufacturing facility where production of some excellent antibiotic drugs is being carried out.
During 1996 SPL also joined a limited group of Pharmaceutical Companies, which are allowed
to manufacture semi-basic active raw material for pharmaceutical preparations in their
manufacturing facilities.

13

ENGINEERING INDUSTRY
Introduction of Engineering Industry
The Engineering sector is the largest in the overall industrial sectors in India. It is a diverse
industry with a number of segments, and can be broadly categorised into two segments, namely,
heavy engineering and light engineering. The engineering sector is relatively less fragmented at
the top, as the competencies required are high, while it is highly fragmented at the lower end
(e.g. unbranded transformers for the retail segment) and is dominated by smaller players.
The engineering industry in India manufactures a wide range of products, with heavy
engineering goods accounting for bulk of the production. Most of the leading players are
engaged in the production of heavy engineering goods and mainly produces high-value products
using high-end technology. Requirement of high level of capital investment poses as a major
entry barrier. Consequently, the small and unorganized firms have a small market presence.
The light engineering goods segment, on the other hand, uses medium to low-end technology.
Entry barrier is low on account of the comparatively lower requirement of capital and
technology. This segment is characterized by the dominance of small and unorganized players
which manufacture low-value added products. However, there are few medium and large scale
firms which manufacture high-value added products. This segment is also characterized by small
capacities and high level of competition among the players.

Pakistan Engineering Industry

Welcome to Engineering Industry of Pakistan - The essential source guide to the Pakistan
engineering industry, on the Net.
Whatever the skills or services required, Engineering Industry Info sets out to provide key
information on the expertise provided by Pakistan based engineering companies and Ministries
of Industries and Production, Government of Pakistan.
A comprehensive range of engineering disciplines are represented within the directory, with
company information provided in a clear, simple and easy to use format.

14

To locate the type of product or engineering service you require, search the Vendors of the
engineering disciplines and find full details on all the companies listed.
ENGINEERING
ADOS
AKGL
AGTL
BCL
DWAE
GHNI
HINO
KSBP
MTL
PECO

Sales/Total

Ados Pakistan Limited

Al - Khair Gadoon Limited
Al-Ghazi Tractors Limited
Bolan Castings Limited
Dewan Automotive Engineering Limited
Ghandhara Industries Limited
Hinopak Motors Limited
KSB Pumps Company Limited
Millat Tractors Limited
Pakistan Engineering Company Limited

income

Rs.

Millions
1061.079414
1145.745994
9262.626
1745.974096
2812.958
7528.14
2577.686168
22698.651
385.771

Results of the Survey (2010-2013)

Year
2010
2011
2012
2013

C4
92.85216888
89.70379726
89.59067135
85.94788917

C8
100
99.0781549
99.4364365
99.2162094

Herfindhal Index
3924.75872
3081.80380
2677.62152
2797.72753

Interpretation:

In all the years the value of concentration ratio 4 is more than 80%.
Which shows that, Engineering Industry in this range in between 2010-2013 is likely an an
oligopoly to monopoly, CR4 is more towards Monopoly.
In between years 2011-2013 the value of concentration ratio 8 is more than 80% and less
than 100%. Which shows that, industry is likely an oligopoly to monopoly.
But in years 2009 the value of concentration ratio 8 is 100%. Which shows that, the
Pharma and Bio Tech industry industry is likely a monopoly or total concentration.
Or in other words, the cumulative value of CR8 is more towards Monopoly.
In all the years, the value of HerfindahlHirschman Index above 0.25 (above 2,500)
indicates high concentration index. These index points indicates a competitive industry

15

with no dominant players and all firms have an equal share. In simple word the industry
is more towards Perfect competition.

Top Player of Engineering Industry

Millat Tractors Limited
Millat Tractors Limited (MTL) was established in 1964 to introduce and market Massey
Ferguson (MF) Tractors in Pakistan. An assembly plant was set up in 1967 to assemble tractors
imported in semi-knocked down (SKD) condition.
The company was nationalized under Economic Reforms Order in 1972 and started assembling
and marketing tractors on behalf of Pakistan Tractor Corporation (PTC) which was formed by
the Government for import of tractors in SKD condition. In 1980 the Government decided on
indigenization of the tractors and entrusted this task to PTC (Pakistan Tractor Corporation).
PTC transferred this role of indigenization in 1981 to MTL. This was the turning point in the
Companys history and it went about the task methodically and rapidly. The Company undertook
this new role with enthusiasm and in the spirit of national development and proved its
engineering capabilities by surprising the deletion targets set by the Government. Just in one
years time, the company took a giant step towards self-reliance by setting up the first engine
assembly plant in Pakistan.
In 1992, the company was privatized. The employees joined hands and took over the
management by winning an open bid.
To maintain its leadership role in tractor manufacturing in the country, MTL continues to look
toward future, to identify and exploit new opportunities and to consolidate existing ones. The
Tractor Assembly Plant is part of this philosophy. This plant started its production in 1992. The
establishment of this modern plant not only increased production capacity to 16000 tractors per
year on a single shift basis, but also provided a quantum jump to the quality of the assembled
In 1992, the production of Millat Tractors was just 8,000 units per annum with variety of only 2
main products, now the annual production is reached from 8,000 units to 45,000 units with
16

variety of 8-different main models. Moreover, the company looks to the future with optimism
and plans to broaden its customer base. Consequently the opportunities are being explored in
multi-application of engines and tractors in areas other than farming sectors. Mass Production of
Generating Sets was started in 1994, while a 3-Ton Fork Lift Truck branded as Millat, based on
TCM technology was launched in the year 2002.
In addition, Millat Tractors Limited has been the regular recipient of the Corporate Excellence
Award of Management Association of Pakistan and the Top Companies Award of Karachi Stock
Exchange, since early eighties. MTLs Annual Report has been acknowledged as the Best Annual
Report by the Institute of Chartered Secretaries and Admin Association of Pakistan for several
years.

Hinopak Motors Limited

Hino Motors Japan and Toyota Tsusho Corporation in collaboration with Al-Futtaim Group of
UAE and PACO Pakistan formed Hinopak Motors Limited in 1986.
In 1998, Hino Motors Ltd., and Toyota Tsusho Corporation obtained majority shareholding in the
company after disinvestments by the other two founding sponsors. This decision to invest in
Hinopak at a time when the country's economy was passing through a depression and the sale of
commercial vehicles was at an all time low reflects the confidence our Principals have in our
company and their commitment to the Pakistani market. Hinopak is the trusted market leader
with over 50% share in the Pakistani Truck and Bus industry. Hinopak a vital contributor in
saving of foreign exchange is also providing jobs and plays a pivotal role for the development of
the local industry through its progressive manufacturing.
By continuing to move forward and staying alert to the ever-changing market & social needs,
Hinopak will continue to be a successful and respected corporate citizen of Pakistan, reflecting
their commitment and belief in the Hinopak corporate philosophy to "contribute to the
development of a more prosperous and comfortable society by providing the world with a new
set of values".
Hinopak Motors Limited assembles, manufactures and markets world renowned Hino diesel
trucks and buses in Pakistan. The Company has held the top position in the domestic market for
medium and heavy-duty vehicles for 17 consecutive years and is highly acclaimed for quality
and technological excellence.
Backed by Hino's expertise Hinopak has achieved standard of quality and excellence that rival
the best in the region. With over 60,000 vehicles on road, Hinopak has gained 50% market share
making it the largest manufacturer in medium and heavy-duty truck and bus industry in Pakistan.
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HinoPak's product range has been designed and built in Hino's traditions of automotive
excellence to be the leader in its category and the main emphasis has been given to passengers'
safety & comfort.

Ghandhara Industries Limited

The Ghandhara Industries Limited is a public limited company quoted on the Stock Exchanges
and registered under the Companies Act, 1913 (now companies Ordinance, 1984). Ghandhara
Industries Limited is an Economically Significant Company as defined in the fifth schedule to
the Companies Ordinance, 1984. It was established in Karachi by General Motors Overseas
Distribution Corporation U.S.A. in 1963 Lt. Gen. M. Habibullah Khan Khattak acquired these
facilities from General Motors and renamed it Ghandhara Industries Limited. The Government of
Pakistan nationalized Ghandhara Industries Limited in 1972 and renamed it National Motors
Limited. In 1992 M/s. Bibojee Services (Pvt) ltd. acquired it under Privatization Policy of the
Government, and adopted its original name Ghandhara Industries Limited w.e.f. 27-11-1999.
The major business activities of the company comprise of progressive manufacture, assembly
and marketing Isuzu truck and bus chassis and fabrication of Bus and Load bodies. To
accomplish its mission the company has a country wide dealers network for marketing its
products. In addition the company represents its principals in Pakistan for other built up
Products.
The company has provided impetus to the local manufacture of engineering goods. With the
introduction of new models that compliments the Isuzu products, additional opportunities are
being availed to provide work for the companys in house manufacturing facilities as well as for
the vendors producing Isuzu parts locally.

Bolan Castings Limited

Being a modern and well equipped foundry and holding a major market share of the tractor and
automotive castings. Bolan Castings Limited can rightly claim to be the leading foundry of its
kind in Pakistan.
The Company was incorporated on 15th Ju!y. 1982 as a public limited company by Pakistan
Automobile Corporation Limited (PACO) under the administrative control of Ministry of
Production. Government of Pakistan. The plant was commissioned in June 1986 with the
assistance of Foundry Management & Design Company (FMD), United Kingdom (U.K) and
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commercial production was started in July, 1986. The plant is located about 40 Kms from
Karachi on the main R.C.D. Highway, Hub Chowki, District Lasbella, Balochistan. The
Company was privatised and handed over to a group of management under a joint collaboration
of Millat Tractors Limited and the employees of Bolan Castings Limited on 13th June, 1993.

Al-Ghazi Tractors Limited

Incorporated in June 1983, privatized in December 1991, Al-Ghazi Tractors Limited, the
subsidiary company of Al-Futtaim group of Dubai, is a story of rollicking success. With
consistent corporate achievements, the company is recognized for corporate excellence and "Best
Corporate Performance".
With its head office in Karachi, the AGTL plant at Dera Ghazi Khan, some 700 kms away from
Karachi, manufactures New Holland (Fiat) tractors in technical collaboration with CNH - Case
New Holland, the Number One manufacturer of agricultural tractors in the world. The AGTL
plant, an icon of engineering dynamics operates on high efficiency. With Quality Control and
Quality Assurance, quality improvement systems exist at every level. One of our mission
statement reads: "Our most enduring competitive edge is the quality of tractors". Robust and
sturdy, the company's products of 55, 65, 75 and 85 HP, carry a local content of 92% - the
highest in the country.
Monitoring the efficiency and effectiveness of each production process is the key to our success.
Effort is made to make each process efficient to drive down the cost per tractor. Competent
material and plant utilization has resulted in the company's core strategy of being the lowest cost
producer of quality products. AGTL's produced tractors in all hp ranges are therefore the
cheapest quality tractors in the whole world.
Documentation of the entire manufacturing process and improved quality measurement being
our priority, Al-Ghazi was the first automobile company in Pakistan to earn the ISO-9000
certification. With yearly audits the company is now registered for ISO-9001:2000 upto
December 30, 2016.
Al-Ghazi Tractors Limited was also the first automobile company in Pakistan to introduce a high
profile ERP solution to put the IT process in full circle. Commissioned in January 2002, this
complete ERP thus inter-links all processes and supports company's wider strategic objectives.
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AGTL products being a household name with the farmer community, our product profile reflects
consumer needs. Price and convenience being the customer's first priority the company's
objectives include: focus on all target markets and focus on customers. As many dealers in every
nook and cranny of the country, and over 3000 mechanical workshops dot the country to work as
customer care centers.
AGTL name is synonymous with stability, brand strength, customer loyalty and profitability. The
Top Stock of the automobile industry of Pakistan with market capitalization of almost fifty times,
dividends tell our real story. To the shareholders we give returns which are almost un-matched in
Pakistan's corporate world.
At AGTL we believe that effective individuals make a difference; effective teams make a
business. Of all the things that we have built the most admired is our teamwork. AGTL's human
talent does not depreciate with time. AGTL workers are happy workers. AGTL values the stake
holders, customers, employees and the investors. The management works to ensure that all
supply chain associates, dealers, shareholders and employees share in the company's growth and
prosperity.
Al-Futtaim's flagship in Pakistan with over 94% foreign shareholding, Al-Ghazi Tractors Limited
is a text book example of good corporate governance, conforming to all of the Corporate
Governance Reforms promulgated by the government.
AGTL's long list of accolades received year after year include Top Companies Award of the
Karachi Stock Exchange, Corporate Excellence Award of the Management Association of
Pakistan, Best Presented Annual Report Awards of ICAP, Best Calendar Awards of NCCA,
Excellence Award on Human Resources and Industrial Relations and Excellence Award in
Productivity from the Employer's Federation of Pakistan.
AGTL's Vision Statement is categoric: "To make AGTL a symbol of success." This sets the
direction as well as the destination in sight and each of the employee lives to achieve the
company's Mission.

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KSB Pumps Company Limited

KSB Pakistan never slows down and thus stands for continuous innovation with tradition being
key. From the beginnings to the latest product: achievements and highlights of KSB Pakistan at a
glance.
The foundation of its new subsidiary KSB Pumps Company Limited in Pakistan marks KSBs
move into the establishment of a huge market for pumps and valves in Asia Region. KSB Pumps
Company Limited specialises in pumps, valves and systems for industrial, building services,
energy and water & waste water applications and round-the-clock customer service.
Since its inception in 1959, KSB Pumps Company Limited has attained a leadership status in the
market and become the leading supplier and manufacturer of pumps, valves and related systems
in the country. Five successful decades of KSB Pumps Company have been compiled in a book
50 Years of Setting Standards, which documents all the milestones the Company has achieved
since its inception.

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