Case Study Of ICI Pakistan

ICI Pakistan Limited is a 75. 81% owned subsidiary of ICI Plc, UK. It was set up as a public limited company in Pakistan in 1952. ICI s presence in this part of the world, however, predates the formation of the public limited company and indeed, Pakistan itself.

The Khewra Soda Ash Company, a predecessor of ICI Pakistan Limited, set up a soda ash manufacturing facility in Khewra in 1944 with a capacity of 18,000 tonnes per annum. This facility was sited next to the salt range as rock salt and limestone; two key raw materials for manufacturing soda ash were available here in abundance.

Today ICI Pakistan s five businesses - polyester, soda ash, paints, chemicals and life sciences - manufacture and sell a range of industrial and consumer products.

All three of the profitability ratios have reduced since 2010, which show that 2011 promises lesser profits than the previous year. Inventory turnover shows a slight decrease, which shows that demand for the product has comparatively decreased. Days sales inventory has increased, which shows that inventory will now change into sales much sooner than before. The fixed, current and total assets turnover have all risen as compared to the previous year 's, which shows that doing an effective job of generating sales with a relatively small amount of fixed assets, outsourcing work to avoid investing in fixed assets, and selling off excess asset capacity. A significant increase in trade receivables turnover indicates improvement in the process of cash collection on credit sales. Price earnings per share and Earnings per share are lower than 2010 which shows that investors are expecting lower earnings this year. Sales increased by 28% to Rs 11.742 billion, driven by increased volumes in polyester and chemicals, along with better prices. PSF showed an 8% increase because of demand for blended fabric, and the operating results were higher by 102% for PSF. However, the trend is not predicted and expected to remain, and margins are expected to erode because of 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 area 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 decreased by