The Polyester Staple Fiber category was fraught by problem some conditions as the prices of crude oil continued

to rise in the broader context of speculative trading being triggered by concerns over supply in the regional market. Global increase in Polyester demand due to lower crop yields or bad harvest conditions in Pakistan, India and the USA at a time of recession-hit demand recovery led to great rises in the prices of the product and consequently translated into better operating results for this segment of the firm. ICI had to operate the plant at full capacity in order to cater to the high demand of Polyester and the substantial increase in the sales and production volumes stand to reflect that. The future prospects of this sector stand contingent on two major factors: a) the degree of realisation of the expected global bumper crop of cotton and b) the state of affairs regarding the anti-dumping duty on Polyester Staple Fibre both can have detrimental effects on the performance of this sector and of ICI overall. On the back of consumption recovery in the emerging markets of China, India and Brazil the global soda ash market grew by around 4-5%. However, the conditions of the domestic market were quite to the contrary. The regular gas curtailment and interruptions this year caused major disruptions in industrial activity translating into a lower downstream off take for ICI's products in this segment. It was observed that an unexpected increase in the unbranded detergent sector was a source of mitigation for such a letdown of Soda Ash demand. The company benefited from the opportunity to expand into foreign markets and the growth in net sales was primarily contributed by an increase in exports. Optimization of resource use became a crucial concern for the company as additional costs of over half a million rupees had to be incurred on the procurement of alternative fuel to compensate for the gas outages. Low cost dumping of Soda Ash by foreign producers was an acute concern this year. Extended monsoon and flood season this year adversely affected the demand for paints in the portfolio of ICI's products; the difficulties of this segment were compounded by the construction sector slump accompanied by the fall in average disposable income that has eventually resulted in the lengthening of the household maintenance cycle to 5 years for a previously experienced 3 years. The progress in Industrial Paints segment was comparatively more encouraging as ICI achieved the OEM top-coats' status with several major automobile manufacturers. As far as the life sciences segment is concerned, the sub sectors falling under this category depicted great variation; where on one hand the sunflower seeds segment was badly hit due to the shifting preferences of farmers towards cotton, the pharmaceuticals, animal health and other vegetable seeds category took off with promising results. Lastly, comes the case of one of the biggest segments of ICI's product portfolio- chemicals. Given the flood struck demand it was surprising to find that the operating results of this section actually improved by a 3 percent rate over the previous year. Load shedding and gas availability pose future question marks on the operational feasibility of these segments given that the industrial clientele would be adversely affected by the unavailability of power supply. RECENT RESULTS (1Q11) Sales increased by 28% to Rs 11.742 billion, driven by higher volumes in polyester and chemicals along with better prices. PSF showed an 8% increase due to demand for blended fabric, and the operating results were higher by 102% for PSF. However, the trend is not expected to remain and margins are expected to erode due a variety of local and international factors. Soda ash business had lower sales of 12% due to lower export sales resulting from gas shortages. However profits from this segment were higher due to lower administrative and selling expenses. The industrial, as well as the decorative demand for paints were lower due to a variety of factors like sluggish economy, extended cold weather etc. Therefore, the results were lower by 77%, mostly because of lower sales. Life sciences business did quite well and posted an increase of 35% in the operating results. Net sales of ICI Pakistan were Rs 11.741 billion, gross profit was higher by 31% to Rs 10.6 billion. PAT was higher by 57.5% to Rs 624 million as compared to Rs 396 million in the same period in 2010. EPS was Rs 4.50 as compared to Rs 2.86 in the same period last year.

It was set up as a public limited company in Pakistan in 1952. paints for the decorative. polyurethanes. Today ICI Pakistan s five businesses . Having said that looking at the past 10 years performance of ICI Pakistan it is very much anticipated that the company will take big strides forwards in future as well. The revenues. . This facility was sited next to the salt range as rock salt and limestone.000 tonnes per annum. Soda ash and life sciences. POY chips. The company has had a very good financial performance in last ten years. polyester. soda ash. chemical. In such a sorry state of economy it is very hard to predict any future moves of the company and to anticipate the future outlook of the economy. chemicals and life sciences manufacture and sell a range of industrial and consumer products. CI Pakistan Limited is a 75. sodium bicarbonate.ICI Pakistan now part of AkzoNobel Group is a company engaged in five core businesses namely paints. net profits have all increased substantially. UK. 81% owned subsidiary of ICI Plc. refinish segments. Being a part of Dutch giant AkzoNobel will also help the company in continuing its good financial performance in coming years as well both as a group on global arena as well as in Pakistan. a predecessor of ICI Pakistan Limited. light and dense soda ash. The purchasing power of the common people is declining and at same time unemployment is rising. The economic activities in Pakistan have come to some what halt though a corporate giant like ICI Pakistan is an exception to that. Pakistan itself. predates the formation of the public limited company and indeed. The Khewra Soda Ash Company. for industrial use. It also markets seeds and is engaged in trading in various specialised chemicals for the industrial use in Pakistan. The general economic scenario of the whole world is currently very depressed but Pakistan is among those countries which have very much gone into economic isolation. On the other hand the financial charges in particular along with other expenses have reduced over the years. automotive. and adhesives and the company also arranges manufacture of pharmaceutical and animal health products. Company has had very good cash flows as well. set up a soda ash manufacturing facility in Khewra in 1944 with a capacity of 18. gross profits. specialty chemicals.polyester. ICI s presence in this part of the world. two key raw materials for manufacturing soda ash were available here in abundance. paints. however. These include polyester staple fibres. The un-appropriated profits and reserves have also risen out of proportions as company has been paying out lesser dividends over the years with intention to make use of these reserves in future investments. The idle cash in hand has increased as well that should be a worrying sign for the company and company should take initiatives to make full us of this idle surplus cash.

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