Lucky Cement Limited is expanding its presence in different sectors including automobile and power as its management is going to set up a 50 MW wind farm.
In this regard, the management is exploring an option to develop the wind farm through joint-ventures with other groups of companies to acquire an existing power plant.
This new power plant will be in addition to the existing project of 50 MW which is situated at Jhampir in Sindh.
The stock filing stated:
Lucky Cement Limited in addition to the proposed equity investment in the Yunus Wind Power Limited is also in the process of evaluation to make equity investment of upto Rs. 720 million for the development of an additional 50 MW Wind Farm, jointly with other Group Companies through acquisition of an existing project company, subject to the approval of the board and shareholders of the company.
The investment will be made and retained by the company for a period of 25 years from the date of commencement of the project.
Besides, Lucky Cement Limited is also working on setting up a 660 MW super critical coal-based power project under its subsidiary, Lucky Electric Power Company Limited. The project will cost more than $850 million and is likely to start its commercial operations by June 2021.
Equity Investment Raised To Rs 14 billion
The board of directors of the company approved an increase in equity investment from Rs. 12 billion to Rs. 14 billion in its associate company, KIA Lucky Motors Pakistan Limited.
The project is to be set up and established in Pakistan, which shall undertake the manufacturing, assembling, marketing, distribution, import and export of all types of KIA motor vehicles. The company is in the process of hiring human resources in various departments that is likely to commence a phase of setting up assembly facility and then production at later stages.
Lucky Cement Limited witnessed a 7.2 percent decline in its profits during the first quarter of 2017-18. The profit decreased to Rs. 3.017 billion during July to September compared to Rs. 3.23 billion recorded in the corresponding period last year.
The cement production witnessed a growth of 5.9 percent year-on-year with total sales at 1.80 million ton as against of 1.70 million ton of sales recorded in the same period of last year.