1. CHAUDHRY STEEL RE-ROLLING MILLS LIMITED
CONSULTANT TO THE ISSUE
CHAUDHRY STEEL RE-ROLLING MILLS LIMITED

2. INSTALLED ANNUAL CAPACITY (MTs)
COMPANY PROFILE
COMPANY OVERVIEW
Chaudhry Steel Re-Rolling Mills Limited is an endeavor of well reputed Chaudhry Mohammad Shafique a seasoned second-generation steel manufacturer. CSRML was established and incorporated on February 1992 under provision of Companies Ordinance, 1984 as a Private Limited Company with its registered office at Badami Bagh, Lahore.
Since then the Company has grown to become one of Pakistan’s leading steel rebar manufacturers and commands high reputation for providing highest quality steel products known for strength, stability and durability. The Company is an integrated steel producer with Billet and Re-Rolling Mill Units along with 10 furnaces, melt shops, quality testing facilities, raw-material storage facility, finished product ware houses and has a network of sales depots across Lahore. The Company currently operates at combined annual production capacity of 348,480 MT per annum (Melting and Re-Rolling).
The plant is located at Badami Bagh, Lahore, which is the heart of Pakistan’s steel industry. The mid country location allows the Company to cater to both Central and Northern Pakistan and also facilitates export to Afghanistan. The establishment of unit dose Badami bagh has led to higher efficiency keeping in consideration future growth, the company has established a new plant site duster at Mehmood Booti, Ring Road Lahore. The company is further expanding its combined Melting and Re-Rolling production capacity to 618,480 MT per annum.
SNAPSHOT
INSTALLED ANNUAL CAPACITY (MTs)
Company
Chaudhry Steel Re-Rolling Mills Limited
Country of Operations
Pakistan
Industry
Construction and Steel
Establishment
February 1992
CEO and Chairman
Chaudhry Muhammad Shafique
Installed Capacity
Melting:164,160 MT
Re-Rolling:184,320 MT
Revenue-FY17
PKR 12,350 Million

3. 5 YEARS AT A GLANCE FINANCIAL SNAPSHOT CAGR: 8.89% 2017 2016 2015 2014
(Amounts in PKR millions)
2017
2016
2015
2014
2013
Revenue
12,350
11,494
11,423
9,626
8,784
Gross Profit
1,083
960
796
612
408
Profit after Taxation
512
404
331
214
191
Total Assets
3,339
3,345
2,878
2,493
2,154
Shareholders' Equity
3,000
2,441
2,038
1,707
1,493
CAGR: 8.89%

4. PRODUCT PORTFOLIO GIRDERS FLAT STEEL CHANNEL BAR SQUARE STEEL
Girder are large iron or steel beam used for building bridges and the framework of large buildings. The Company produces girder ranging from 75x125mm to 100x200 mm.
Flats steel is used for general purposes including automotive, heavy machinery, pipes and tubes, construction, packaging and appliances.
CHANNEL BAR
SQUARE STEEL
Channel bar is used in Railings, Fencing, Trailers, Bracing, Structural support. The Company produces channel bar from 16mm to 89 mm.
Square steel bar is a shape of steel bars that has industrial application. The Company produces steel bars in the range of 16mm to 89mm.
T-IRON BARS
TWISTED BARS
T-Iron bars are used as connectors in steel structures in addition to being used in the automobile industry. Company’s product portfolio includes T-Iron from 16mm to 89mm. .
The Company produces the finest twisted steel bars for grade 40 and grade 60 ranging from 10 mm to 40mm used in large infrastructure projects
ANGLE BARS
ROUNDED STEEL BARS
Angle Bars are used for strengthening cross sections or horizontal support to structures. The Company produces a range of Angle bars from 3x32x32mm to 9.5x100x100mm
Rounded steel bars are used in industrial maintenance, agricultural implement, transport equipment, fencing etc. CSRRL produces rounded steel bar between 16mm and 89mm
BILLETS
DEFORMED STEEL BARS
Billets are used as raw material for rolling, forging and other metal processing operation. CSRRL produces billets from 80x80mm to 150x150mm.
Deformed steel bars are used in residential, commercial & infrastructure application in the form of beam, columns and cages. CSRRL produces deformed steel bar between 12.5mm-44mm.

5. MAJOR CUSTOMERS & PROJECTS
SWOT ANALYSIS AND MAJOR CUSTOMERS & PROJECTS
SWOT ANALYSIS
MAJOR CUSTOMERS & PROJECTS
STRENGHTS
The Company has developed a wide range of clientele over the years spread across Pakistan owing to the quality of its products.
Continuous availability of raw material, i.e. high-quality scrap.
Fully automated plant (CCM), hence less labor involved.
Availability of low cost labor.
Product affordability.
Wide range of target market.
WEAKNESSES
Strict controls over labor efficiency need to be observed to reduce the waste production to a minimum level.
Expected loss at the initial stages of the operation as a result of sales return from the distributors.
Inexperienced technical staff as compared to the units currently in operation.
OPPORTUNITIES
As per demand 6 million MT p.a. and current local production is 2.9 MT p.a., so there is a huge gap still to fulfill the demand.
A large number of people that are not brand loyal can be targeted through marketing campaign.
About 40% of the Steel Market share comprises of un-branded steel products. This share can be gained through heavy marketing campaign.
Local demand.
ARFA
SOFTWARE TECHNOLOGY PARK
THREATS
Already established businesses in same industry.
Fluctuation in the price of international steel.
Quality of the steel is to be monitored very closely as people are more directed towards health and safety issues.
Strong competition and high promotional activity by the competitors

6. SECTOR OVERVIEW STEEL PRODUCTION AND CONSUMTPION-CRUDE STEEL
Pakistan’s steel consumption grew at a 6 year CAGR of 24.8% whereas production only grew by 17% over the same period leading to a shortfall which was met through imports. The demand and supply gap of steel products grew by 5.6x from 0.77 million tons in 2010 to 4.3 million tons in Although Pakistan is the 6th most populous nation in the world, it has one of the lowest per capita consumptions of steel with per capita crude steel consumption of only 37.5 Kgs as compared to regional average of Kgs and a world average of Kgs Pakistan stands at the most structurally under penetrated market for steel production. If Pakistan’s per capita consumption rises over the next 5 years to equal the regional average i.e Kgs, Pakistan will require an additional 55 million tons of steel with an average of 11 million tons of steel per annum.
The State Bank of Pakistan and the World Bank recently noted that housing shortage in Pakistan has reached 12 million housing units and according to a conservative estimate almost 0.4 million housing units are added to this shortfall every year.
STEEL PRODUCTION AND CONSUMTPION-CRUDE STEEL
PER CAPITA STEEL CONSUMTPION-FINISHED GOODS
LISTED PEERS IN THE SECTOR

7. PEER BENCHMARKING FINANCIAL SNAPSHOT CHAUDHRY STEEL MUGHAL AMRELI
(Amounts in PKR millions)
CHAUDHRY STEEL
MUGHAL
AMRELI
ITTEFAQ
Revenue
12,350
18,803
13,284
4,442
Gross Profit
1,083
1,942
2,468
358
Profit after Taxation
512
991
1,074
141
Total Assets
3,853
16,024
18,209
5,143
Shareholders' Equity
3,000
6,637
9,391
2,934
Installed Capacity - Re-Rolling (MTs)
184,320
446,2241
180,000
120,000
Production - Re-Rolling (MTs)
155,952
241,773
158,206
53,323
Installed Capacity - Melting (MTs)
164,160
340,6881
200,000
Production - Melting (MTs)
116,207
163,778
N/A

8. THANK YOU.