Financial, Industry & Economic Analysis Ittehad Chemicals Limited

Abstract

Ittehad Chemicals Limited (ICL) was established in 1962 under the name of United Chemicals by a private entrepreneur. ICL was commissioned in the year 1964 with an installed capacity of 40 MT/day of Caustic Soda. The initial plant was set up by M/S Oronzio Denora of Italy. The factory is strategically located on the 19th/20th Kilometer of GT Road and spread over an area of 106 acres. It is approachable from the Lahore-Islamabad Motorway as well as from the main city of Lahore, being less than an hour drive. The place is known as Kala Shah Kaku, an industrial site which has seen the growth of industries over the past decades stretching up and beyond Gujranwala along the G.T Road. Apparently, Kala Shah Kaku and its neighboring vicinities have both gained tremendous importance and become a hub of commercial, economic and educational activities. As industrialization flourished over the years, a large number of small townships also mushroomed in and around the vicinity due to availability of livelihood to the local residents at their doorsteps. Under the Economic Reforms Order, United Chemicals was nationalized in 1971 along with other industries of the country and renamed as Ittehad Chemicals. It was initially managed by the Board of Industrial Management and thereafter the Federal Chemicals & Ceramics Corporation Ltd under the Ministry of Production, Govt. of Pakistan. During the state enterprise period its production capacity was raised by another 90 tons/day during the year 1984-85. The factory was ultimately denationalized in 1995 by the Privatization Commission Govt. of Pakistan. It was acquired by the Chemi Group of Industries, a Karachi based dynamic entrepreneurial group. The new management immediately undertook the task of refurbishing the factory, its infrastructure, and updating its production line to improve efficiency and capacity. Shortly after the takeover, the plant capacity was soon raised to over 200 tons/day. The environmental friendly “Ion Exchange Membrane Plant” was added to the production line in the year 2003 with a capacity of 163 tons/day. This was shortly enhanced to 240 tons/day with the addition of more IEM Electrolyzers. The new technology is not only environment- friendly but also power-conscious. However, due to its subtle and urbane nature, it requires an uninterrupted power supply for troublefree operations. Accordingly, the company established its own state-of-the-art Power Plant of 30 MW capacity in the year 2005. With a rich and illustrious history, ICL is the founding company in Pakistan for the Chlor-alkali industry. It has paved the way for other organizations competing in the local market. With a growing interest for ICL products in the international market, the organization has made the necessary arrangements (and will continue to do so in the future) to cater for the growing demand. Source: Company Website