THE history of Murree Brewery — a listed company — goes as far back as 1860, when it first set up breweries in Rawalpindi and Quetta. A year later, it was incorporated at the resort town of Murree.

It is interesting to note that in 1888, Park Lodge — a handsome residential property — was purchased by the company from Mrs H. Whymper. It was the principal residence and head office of Murree Brewery till 1959, when it was taken over by the Government of Pakistan to house the office of the President of Pakistan. It remains an office of the Head of State of Pakistan from 1960 till the present day.

“The company has completed 154 years of operation, making it one of the oldest public companies in the sub-continent,” Murree Brewery’s Chief Executive Officer Isphanyar Bhandara tells Dawn.

The company’s shares were traded on the Calcutta Stock Exchange as early as in 1902. Although it is moderately traded at the Karachi Stock Exchange, a 10-rupee share of the company is currently priced at Rs636. And it earns and shares the fortunes with investors. In 2013, it disbursed a cash dividend of Rs6 per share to shareholders, along with a bonus issue of 10 per cent.

Murree Brewery, at present, operates three divisions — namely the liquor division, Tops division and glass division — to carry out its principal activities. From its mainstay liquor, the company has diversified into the production and sale of soft drinks, Tops fruit juices, squash, sauces, vinegar and water, the last sold under the brand ‘Murree Sparkletts’. It added the Tops Food and Beverages division in 1969.

Its two manufacturing units are located in Rawalpindi and Hattar, Khyber Pakhtunkhwa, respectively. A Tetra Pak packaging facility was added in 2001. The plant is based on a recuperative melter and two Emhart I.S. container manufacturing machines. It has the latest quality control equipment for online inspection of containers.

Murree Brewery’s financial statements show that at March 31, 2013, its liquor division’s assets were valued at Rs5 billion, glass division’s at Rs504 million and Tops division’s at Rs747 million. The company sports a strong balance sheet. Its total assets by June 30, 2012 stood at Rs6.291 billion, and its share capital amounted to Rs210 million, in paid-up shares of Rs10 each.

Murree’s reserves — at Rs2.781 billion — were made up of Rs30 million in capital reserves, Rs20 million in contingency reserves, Rs327 million in general reserves and an un-appropriated profit of Rs2.194 billion. The company also carries on its balance sheet a sum of Rs2.731 billion marked as ‘surplus on revaluation of property, plant and equipment (net of tax)’.

In the nine months to December 31, 2013, the company’s gross sales stood at Rs3.877 billion, recording an increase of 22.48 per cent over the earlier year. In the full year to June 30, 2012, sales of the liquor division amounted to Rs1.7 billion, followed by Tops division’s at Rs1 billion, and glass division’s at Rs598 million.

Isphanyar Bhandara, the current CEO, who took over the reins after the demise of his well-known father Mr M.P Bhandara, asserts that going forward, efforts are being made to give the franchise to an Indian entrepreneur, so as to introduce the company’s products to the large consumer market of the neighbouring country.

He also reveals that the company has undertaken an expansion project in the glass division. “We have already imported equipment from Europe, China and India.” The management, he says, believes in continuous balancing, modernisation and replacement (BMR).

It was in the 1990s that a wave of modernisation swept through the company. New beer canning and modern bottle filling facility acquired from Germany were installed. Two units of alcohol rectification columns for producing extra neutral grade of potable alcohol from molasses were procured from France and Italy. Beer fermentation capacities were renewed during the period as well.

The CEO also takes pride in his company’s policy to take good care of its employees. “With 1,600 employees, the company pays a minimum pay of Rs27,000 to a permanent worker, along with medical cover,” Bhandara boasts, while claiming that this is way above the minimum wages paid by most other corporates.

Regarding problems that are impeding the company’s growth and progress, the CEO complains of unavailability of gas and electricity, which he contends jeopardises the management’s plans of production. He stresses that these are bigger evils than worries over the security situation.

Other problems highlighted by the company chief include the inflationary pressures that cannot be passed on in selling prices, and the instability of the rupee.

However, Isphanyar Bhandara affirms that “with improved efficiencies by investment in modern equipment, control of expenses, a dedicated management and workforce, we look to the future with cautious optimism”.