SUBMITTED BY:

MUSTAFA (38401)
SYED ARSALAN GUL (39800)
MUHAMMAD WASIF KHAN (36530)
ARSALAN ALI SIAL (47264)
MUHAMMAD HAROON RASHEED (30017)
SHEIKH ABDUL WAHAB (33328)
MUHAMMAD FAIZAN GABA (35403)
Introduction:

• Amreli Steels Limited is one of the largest manufacturers of steel reinforcement bars in Pakistan and was
incorporated in 1984 as a private limited company and converted into a public unquoted company in 2009.
• The Company enlisted on Pakistan Stock Exchange in December 2015 and is mainly engaged in manufacturing and
sale of steel rebars and billets. Amreli Steels are one of the largest manufacturers of Steel Reinforcement Bars in
Pakistan.
• is currently capable of producing 180,000 metric tons of re-bars per year.
• This investment will result in increase in capacity of the said plant from 180,000 to 275,000 metric tons per annum
• Amreli’s steel Melt Shop plant in Dhabeji, Sindh is the largest billet manufacturing in Pakistan boasting a capacity of
600,000 metric tons per year.
• Company will be increased to 605,000 tons per annum from the existing 180,000 tons per annum which
reflects that the management is on the track to achieve its long term vision of being the first million-ton
quality rebar manufacturer of the country.
 History:

• The Amreli family has been in the business of steel manufacturing for over 50 years. The founders of Amreli
Steels (ASL) came to Karachi in 1946 from a small town called Amreli in India,
• Established themselves in Karachi dealing with nails, screws, wires and other hardware items. They then
started manufacturing nails, rivets, screws and wires drawn from wire-rod.
• From 1973 onwards, the younger generation started entering the business after acquiring higher education
and experience from world class universities & steel companies in various fields of engineering and
management.
• In 1984, the sponsors converted Amreliwala Hardware Industries into a Private Limited Company. In 1989,
ASL became the first company to introduce the concept of deformed steel bars in Pakistan
• The ASL’s conviction in using the most modern re-rolling technology available in the world resulted in
the company installing a continuous mill train in 2007, which increased the production capacity of the
plant from 75,000 metric tons per annum to 180,000 metric tons per annum
Evolution:

• The history of Amreli Steels has been full of innovation and pioneering. The company was the first in
Pakistan to introduce an automatic rolling mill, the concept of deformed steel bars, thermo mechanical
treatment (TMT) technology.
• Amreli Steels Limited has exciting plans to fuel future growth of the company. Steel bar demand is strong
due to commencement of various infrastructure, housing and commercial projects across the country.
• As a result, the company has announced expansion of its finished goods and raw material manufacturing
capacity to retain market leadership in sales and cost. Amreli plans to increase sales through its expansion
plan and hopes to reach 75% capacity utilization of the new plant by FY19.
Mission:
• Amreli Steels Limited exists to carry forward its legacy in maintaining
its dominant position in trade and industry by being socially
compliant and contributing to the well-being of shareholders and
employees
Products.
Amreli - Maxima:
• Amreli Steels’ Maxima bars are perfect for all types of residential, commercial & mega infrastructure projects
and conform to ASTM A615 (American Standard for Testing and Materials) and are available in sizes ranging
from 10mm to 40mm. While we produce rebars in standard length of 12 meters, our plant is capable of
rolling specific lengths as per requirements. Following are some key attributes of Amreli Steels’ Maxima bars.

Amreli - Xtreme:
• Amreli Steels' Xtreme bars are the strongest rebar available in Pakistan. It is an ace of modern
construction and is commonly used in the extraction of hi-rise construction and mega structures. The
imposing skylines of mega cities like Dubai, Singapore, Kuala-Lumpur and Bangkok bear testimony to
the popularity of 500 MPa. Amreli Steels was the first brand to introduce G-500W in Pakistani market
which means all bars are cut in standard sizes of 12-16 meters.
Products. (continued…)
Amreli - Ultima:
• Amreli Steels’ Ultima bars are Ideal for residential & commercial projects especially in high seismic activity
zones. While we produce rebars in standard length of 10 meters, our plant is capable of rolling specific
lengths as per requirements. Following are some key attributes of Amreli Steels’ Ultima bars.

Amreli - Billet:
• Billet is an intermediary steel product from which reinforcement bars are rolled. Consistency of physical and
mechanical properties of rebars comes from the consistency of steel billets which is why Amreli Steels
produces its own billets. Amreli Steels has the largest billet manufacturing plant in Pakistan with a capacity
of producing 400,000 tons of billets. Theirs SMS Plant produces billets in sizes ranging from 100 x 100 mm sq
to 200 x 200mm sq that comply to BS 4449:2005+A3:2016, ASTM A615, and ASTM A706 international
standards.
Exposition of the Problem.
• Nowadays demographics of every country is changing very rapidly and due to which there is always a
gap exists in the market, known as Demand & Supply gap. As we have discussed above in the
introduction that Amreli Steels has a Target of 600,000 Ton steel production and they are trying their
best to achieve this goal, but currently Amreli steels is facing a problem in meeting their goal of
600,000-ton steel.
• Along with this issue there is another problem exists in Amreli Steel i.e. high employee turnover. The of
high employee turnover is low wages if the workers working in ASTL. Workers are complaining about
their low wages. According to them they are not paid as a steel manufacturing company should pay to
its workers.
 Profit / (loss) comparison.

2000

The graph showing the comparison of Profit/(loss) 1800 1,749

1,585
before and after tax of last five years. As per this 1600
1,445
1,394
graph we can observe that the profit of FY 2018-19 1400 1,279 1,272

is 33 million which is far below from FY 2017-18 1200 1,074

1,011
(1,585 million). This is because of high maintenance 1000

800
cost/expense over the plant.
600

400

200
33
0
2019 2018 2017 2016 2015
-200
-67

Profit / (loss) before tax Profit after tax

Stock Market Position.

The above chart extracted from Pakistan stock exchange data portal. The Linear graph is
showing the current and last five years share price history.
 Ratio Analysis.
• Financial ratios are the key indicators of financial performance of a company. As per above ratios Gross profit
percentage of FY 2018-19 is 8.48% which is lower than previous FY 2017-18 (17.80%). Net profit percentage
of FY 2018-19 is 0.11% which is lower than previous FY 2017-18 (10.23%). Return on equity is also showing a
lesser percentage i.e. 0.27%. Return on capital employed and EBITDA margin to sales also has a decreased
percentage in comparison of previous FY 2017-18. These ratios are indicating that company is facing some
serious issues and incurring a high maintenance cost nowadays.
Recommendation.
• Our recommendation is that Amreli Steel has to invest in its Re-Rolling plant located at S.I.T.E area.
• They need to replace the plant because there is a high downtime of this plant.
• ASTL needs to revise their worker’s salaries, they should give incentives and other benefits to their workers
as well.