ICI Pakistan turns 70 this year. Yet, the company has spring in its feet and barely betrays signs of old age.

Regarded as one of the largest industrial conglomerates in the country, it operates in a range of activities, with soda ash, polyester staple fibre and life sciences being significant among them.

It claims to be the largest soda ash producer in the country, with a current annual capacity of 350,000 tonnes per annum. Polyester staple fibre (PSF) is a synthetic fibre that is spun into yarn, which is then woven into fabric for use in the production of textile products. In life sciences, ICI has three business segments: pharmaceuticals, seeds and animal health.

In 2012, the company spun off its paint business and vested it into another firm, Akzo Nobel Pakistan Ltd, a separately listed entity on the stock exchanges.

But that was in line with the worldwide acquisition of ICI by Akzo Nobel at a price of 8 billion pounds sterling at the height of the mergers and acquisitions bubble in the US.

ICI Pakistan saw a transition in its ownership of majority holding in 2012. Several big names were interested in its acquisition, but ICI went to the Yunus Brothers Group (YBS), which wrote a fat cheque of Rs14.4 billion for a 75.8 per cent stake in the company. The change of management has taken place.

Last Friday, Asif Jooma, the new CEO who took charge seven months ago, was traveling. A query had to be put up to Muhammad Abid Ganatra, the executive director and CFO at ICI: “Did the company detect any sign of clash of culture as personnel who were already accustomed to working in a multinational company would now work under a national group?”

Mr Ganatra said on the contrary, everyone realised that the new management with its vast resources had the potential to give the company a big boost in size and scale. He reminded that ICI has been looked upon as a corporate nursery where executives are trained.

And since ICI’s name is synonymous with paints, has the spin-off of the paint business removed some of the gloss from company’s image? Mr Ganatra said that while paint was a significant area that was directly consumer-related, as far as business is concerned, soda ash, PSF and life sciences are overwhelmingly big. He also conceded that the rapid loss of the rupee’s value has impacted the company, as PSF and life sciences are dependent on imported raw materials.

ICI boasts a strong balance sheet. Total assets of the company at the end of 2012 stood at Rs21 billion, with equity and revalued reserves at Rs10 billion. In 2012, the company earned a profit-after-tax (PAT) of Rs893 million on sales revenue of Rs35 billion. PSF contributed the biggest share of Rs18 billion to turnover, followed by soda ash (Rs9 billion) and life sciences (Rs6 billion).

For the full year 2012, shareholders were paid a cash dividend of Rs5.5 per share. For the last six months ended June 30, 2013, ICI Pakistan posted PAT of Rs688 million — representing a growth of 37 per cent over the corresponding period last year. This translated into earnings-per-share (eps) of Rs7.45, up from Rs5.44 in previous period last year.

However, looking ahead, the company can be far from upbeat. Energy supply shortages and dumping and under-invoicing of PSF and soda ash at uneconomical prices remain major concerns. The company was said to be aggressively pursuing the matter with the National Tariff Commission and other relevant authorities.

ICI Pakistan’s profitability in 2012 was also negatively impacted by the challenges faced by the polyester business due to the worsening global market dynamics. Global demand for soda ash also remained sluggish due to slower off-take by China. Yet, the biggest problem that dents the company’s profitability is the extended gas outages at both the polyester and soda ash plants. Alternative fuels cost the company an extra Rs407 million.

But the good news is that ICI Pakistan is completing its project worth over Rs2.3 billion for installing two coal-fired boilers at Khewra — the location of its soda ash plant. This would reduce the company’s dependence on expensive alternative fuel for soda ash.

Mr Ganatra, the CFO, said the final commissioning of the plant would take place this month, which would make the company’s products cost-competitive and also facilitate exports. ICI is said to be looking for similar solutions to address energy concerns at its PSF plant.

And finally, let’s consider the company’s performance at the stock exchanges. The ICI Pakistan share of par-value of Rs10 closed at Rs179 last Friday. With 92 million outstanding shares, the company is valued at around Rs17 billion.

However, analysts and equity dealers at brokerage houses do not follow the company; the reason being a lack of floating stock, a common phenomenon at most ‘multinational’ pharmaceutical companies. On Friday, only 1,200 ICI Pakistan shares changed hands at the KSE.

The company’s annual report for 2012 showed 10,896 members on roll. Yet, as many as 9,411 held just about 500 shares each, with three shareholders commanding 87 per cent of the stocks in frozen blocks.