Mughal SteelCapitalizing on Past

To meet Future Growth

Video

Timeline• Import of iron products and catering to local

needs• Re-distribution of local products as local

producers com online

1952: Mughal Traders: Journey Begins

1983: Mughal Sons (Pvt) Limited: Corporatization

• Disruption in availability of locally produced products necessitated independence

• Re-rolling mill with capacity of 30,000 tones established

1998: Mughal Steel

2000: Ventures into up/down stream value added products

2002-03: Capacity Expansion

2005: Self-sufficiency in Power Generation

2006-07: Backwards integration & Exports

2010: Mughal Iron & Steel Ltd.

2011 & 12: Coal Gasification Plant & Tandem Section Mill

2013 &

beyond

• Billets Production mill with capacity of 40,000 tons added

• Mughal Steel ventures into upstream value added steel products• Stainless Steel, Spinning Steel, Special Steel• AOD, LRF, CCM, added to plant

• Addition of another furnace in 2002 takes capacity to 70,000 tons

• Rolling Section Mill’s addition takes capacity to 100,000 tons

• 9 MW gas powered plant installed to overcome electricity crisis

• Smelting Furnace, Ferrous Allies plant of 15,000 tons in 2006

• In 2007 Medium Section Mill added of 150,000 tons. Total capacity reached 250,000 tons

• State-of-art Continuous Bar Mill established

• 50,000 Tons furnace added• Coal gasification unit introduced in Pakistan• First-ever tandem section mill with investment of PKR

1.2 Billion and capacity of PKR 250,000 tons added

• Planned listing of Mughal Steel & Iron• Further Expansion to add 80,000 tons• Growth market share

Mughal Steel

Customer Reach

Cost Competit-

iveness

Stakehold-ers Confidence

Operational Agility

• Broad Product Range• Dense Populated

Locations• Strong Brand

Awareness• Focus on Profitable

Segments & Markets/Exports

• Vertical Integration• Strategic Cost Reduction• Capital Optimization

• Flexible Supply Chain• Process Efficiency

• Pioneering Innovation

• Productivity & Quality

• Improved Collaboration

• Engaging with Internal talent

• Promote increased documentation in

industry

Prominent Clients

Awards & Recognitions

ISO Certification Environment Certificate

Export Certificate Brands of the Year 2008-11

Summarizing Past Progress• Sales & Distribution was the core business and

is the competitive advantage till date• Business strategy: Retention of 30% market

share for specific product segments while optimizing costs & capital use– Back integration to control inputs & supply chain– Brand creation to sustain & grow– Surviving & growing without government support

• Emerged as the low business risk corporation ready to embark on growth

Future of Iron IndustryMarket Demand & Supply Scenario• Local demand stems from:

• industry that is linked to economic activity & development

• Household that is primarily linked to agriculture & cash crops

• Local demand is expected to grow as Pakistan’s per capital consumption is well below other countries even the under- developed countries (50% of India)• Export demand emanate s from

development activity in Afghanistan & Central Asia

• Local supply has generally grown at a very slow place • Local supply caters only to industrial

demand and operates in specific product segments• Mughal Steels is unique as it has the

ability to cater diverse industrial product needs & is the only steel manufacturer that caters to households’ construction needs.

EU

Turkey

USA

Iran

Middle East

China

Asia

India

Pakistan

0 50 100 150 200 250 300 350 400 450 500

310

242

285

284

234

460

239

57

28

Per Capita Consumption

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

0

200

400

600

800

1000

1200

1400

1600

-10%

-5%

0%

5%

10%

15%

20%

%age Growth Production (Million tonnes)

Welcome to the world of Strength

Mughal Steel