At the time of independence, Pakistan has only four Cement factories with a total annual production capacity of not more than one million tons. Therefore, Pakistan Industrial Development Corporation (PIDC), planned for establishing a Cement Factory in the province of Sindh at Hyderabad. Consequently, Zeal Pak was established in 1956 with the collaboration and financial assistance of the said two countries in materializing the project the same was named as Zeal Pak Cement Factory Ltd. i.e. “Zeal” for Newzealand and “Pak” for Pakistan.
The company took a modest start with two wet process Kilns having a production capacity of 400 tons per day each. The venture was an immediate success technically and financially. In view of the increasing demand for cement and identical third unit was added in 1960 and a fourth unit in 1963 raising the capacity of the factory to 1600 tpd. Even after the extension the ever increasing demand for cement could not be satisfied and further extension was found necessary. Thus two units each of 1000 tpd capacity were installed which went into production in 1969 raising the total plant capacity to 3600 tpd. The new units, like the earlier four, were designed, supplied and erected by renowned cement plant manufacturer M/s. F.L. Smidth & Co., Denmark.
In 1973 the company’s management was handed over to State Cement Corporation of Pakistan (Pvt.) Ltd. A Corporation formed by the Government of Pakistan to run and manage all existing cement establishment of Pakistan.
In October 1992, in pursuance of national policy of privatization of public sector industries, Zeal Pak’s management was handed over to M/s. Sardar Mohammad Ashraf D. Baluch (Pvt.) Ltd. The new management is making every effort to bring efficiency in all spheres of Company’s activities on sound and scientific lines.
Contribution in National Economy
Zeal Pak has an annual production capacity of 1.080 million tons which represents 13% of total installed annual capacity of Cement production of entire country and 27% of southern region of Pakistan.
The Company production include Ordinary Portland Cement, Slag Cement and Sulphate Resisting Cement.
Being the biggest Cement production unit Zeal Pak contributes a very handsome amount towards taxes, duties and other levies of the Government. Beside this payment in the shape of Gas and Electricity charges is made to the Government owned organization like Sui Southern Gas Company Ltd., and WAPDA. On an average payment of Excise duty and Sale Tax alone amount to RS.650.00 million annually whereas cost of Gas and Electricity is around Rs.260.00 million per annum, The payment of Income Tax on yearly income is also the promptly made to the Income Tax Authorities.
The Company is equipped with personnel having high academic and professional qualifications. Some of them are stalwarts of Cement Industry. Presently more than 1000 persons are employed with this factory with full job satisfaction whereas the network of its marketing indirectly provides opportunity for thousands to earn their livelihood.
Zeal Pak has a track record of financial stability throughout having an annual turnover of about Rs.2.00 billion. After its privatization remarkable profitability has been seen and in future this will improve further. The company owned tangible fixed assets having gross value of Rs.609.926 million on June 30, 1993.
So far as share holder are concerned they have been receiving their dividend regularly since the incorporation of the company every year beside four bonus share issued by the company in the past. The credibility of its share is evident from the fact that it is quoted at Karachi and Lahore Stock Exchanges much above their face value.