Arif Habib Corporation Limited (AHCL) is the flagship company of the Arif Habib Group. It was incorporated in 1994 with a paid-up capital of Rs. 40 million. In 2001, it obtained a stock market listing on all three local bourses by offering one million shares to the general public at a price of Rs. 80 per share. The Company has the honour of winning the prestigious “Top 25 Companies Award” of the Karachi Stock Exchange for many years since its listing, distributing not less than 25% in cash/bonus dividend every year. It also received “Merit Award” under the “Best Presented Accounts Award 2008” presented by the South Asian Federation of Accountants (SAFA) held in Dhaka and was included in the National “Best Corporate Report Award 2008” conducted by ICAP and ICMAP. The entity started as a securities brokerage house but is now the Holding company of the Arif Habib Group, its strength being its Strategic Investments in various sectors.
Arif Habib Limited (AHL) is one of the largest full-service Securities Brokerage and Corporate Finance companies listed at the Karachi Stock Exchange (KSE). Established in 2004, it inherited the securities brokerage and corporate finance businesses of its parent company, AHCL. The Company offers brokerage services in equity securities, money market and commodity markets. In December 2006, AHL’s shares were offered to the general public at the then single highest premium on a first time public offer by a private sector enterprise in the country’s history. AHL, following the trend set by its parent company, has also won the Top Companies Award in the first full financial year of its listing. The company voluntarily adopts the highest standards of practice to ensure fairness and transparency for stakeholders and conducts its business activities in line with the global best practices. AHL’s principal strengths include an unmatched capacity for efficient execution of securities transactions, valuations and public/private placement expertise.
Established in 2001, Arif Habib Investments Limited (AHIL) is a leading AM2-rated asset management company. With the recent merger of MCB-AMC and AHI, the company has effectively become a subsidiary of MCB Bank but in business terms, it is now a joint venture between the Mansha and Arif Habib groups. AHIL has a huge reservoir of professional human resource, which allows it to take a lead with innovation and deliver quality. It has the distinction of launching Pakistan’s first fixed income fund and first Islamic Fund and of being the first Pakistani Company making portfolio investments internationally. AHIL manages eighteen mutual funds including two pension funds and eight investment plans. The Assets under Management as at 30th June 2011 were approximately US$ 350 million (PKR 30 billion). The merger brings together the wide range of products offered by AHIL together with MCB AMC’s wider distribution network enabling the Company to offer a comprehensive range of products which will cater to the different savings and investment needs of both large and small investors.
Pak Arab Fertilizer Limited (PFL) is a multi-product fertilizer complex with a capacity of 850,000 metric tons per annum of fertilizer products and 816,000 metric tons per annum of intermediate products. PFL has the distinction of being Pakistan’s first Company to produce Certified Emission Reductions (CERs). It was acquired from the Privatization Commission in a joint venture with the Fatima Group, at a total cost of USD 250 million. Arif Habib Group owns 50% of this venture. Under the new management, Pak Arab Fertilizers Limited has undergone extensive modernization and new improved processes have been introduced to maximize the output while minimizing the negative impacts on the environment. For this a Clean Development Mechanism (CDM) plant was installed, which is the first project of this kind in Pakistan. Basic aim of this project is the abatement of N2O and NOX emissions from the stack gases of Nitric Acid plant. The reduction of green-house effect of these gases shows the new management's commitment towards a cleaner environment.
Arif Habib Group and Fatima Group, with an aim to further consolidate their position in the fertilizer industry, have incorporated Fatima Fertilizer Company Limited (FATIMA) with the objective of setting-up a fully integrated fertilizer complex capable of producing two intermediate products; Ammonia and Nitric Acid and three final products; NP, CAN and Urea. The project cost has been approximately USD 750 million equivalent to Rs. 65 billion. FATIMA is the first and the only green field project which has materialized under the 2001 Fertilizer Policy of the Government of Pakistan, aiming to encourage investors in this field, in view of growing demand of fertilizer in the Country. Arif Habib Group owns 24.37% shareholding in FATIMA through direct and indirect shareholding. The Project is a multi-product chemical fertilizer complex, capable of producing 500,000 tons per annum of Urea, 420,000 tons per annum of CAN and 360,000 tons per annum of NP. The Company has also entered into an agreement with N. Serve Environmental Services GmbH, a German entity, for the development and implementation of a Clean Development Mechanism (CDM) project at its Nitric Acid Plant under the United Nations Framework Convention on Climate Change and the Kyoto Protocol.
Aisha Steel Mills Limited (ASML) is a joint venture of Arif Habib Group, Universal Metal Corporation and Metal One-Japan to set up a state- of-the-art Cold Rolling facility with an initial capacity of 220,000 tons per annum with an estimated cost of Rs. 9 billion. The emphasis is on the value added products for the engineering, auto and home appliances sector in Pakistan and other regional markets such as Middle East. The plant is being set up on a 50 acres plot in the vicinity of Pakistan Steel Mills at Port Qasim. The project would create direct employment for over 500 people and would contribute towards the competitiveness of the local auto and engineering sectors.
The manufacturing plant is situated in Nooriabad, adjacent to Karachi. The strategic location of the plant favours the company on the back of close proximity to the port. It has total capacity to produce 900k tons per annum of cement. Arif Habib Group has recently increased its shareholding in the Company to 66% from initial investment of 10%. Post-acquisition, the new management has invested in the project to rationalize cost efficiencies following that the plant is expected to run at optimal capacity. The company is setting sights on targeting local sales to increase its share in the market. Also, the company has switched export volumes to the local market due to availability of superior margins in the domestic market. Further investments to increase the efficiency are in pipeline including installation of captive power plant of 25 MW based on natural gas and a waste heat recovery power plant with anticipated generation capacity of 8 MW.
Sweetwater Dairies Pakistan Private Limited (SWDPL) has been set up to focus on the growing dairy business in Pakistan (25% annual growth) and actively capture local market share in dairy products. Sweetwater International Inc. (a US-based entity) was initially involved to bring in the technical expertise and equipment. The project is now being headed by qualified individuals with expertise in their respective areas. SWDPL is joint venture of the Arif Habib Group, Gatron Group, Unicorn and HBL. SWDPL aims to become the leading dairy in Pakistan with unmatched quality of milk produced on a consistent and sustainable basis and diversify into various dairy product lines (Beef Fattening, butter and high quality milk cream etc.) SWDPL has set up a modern dairy at Renala-khurd, Punjab, having capacity of 1000 cows to produce milk at healthy yields. The project investment size is approximately USD 12 million (PKR 1 billion).
In May 2008, the company was granted trading broker license by the Securities and Exchange Commission of Sri Lanka. The company is 75% owned by the Group, established to undertake securities brokerage business on the Colombo Stock Exchange.
Located at prime sea-front land in Karachi, the project entails total covered area of 3.9 million square feet. A shopping mall with over 500,000 square feet leasable area is near completion. Two towers of 450,000 square feet are under construction. One of the towers will house a five star hotel. Current market value of the project is estimated at USD 500 million. The Group has 20% stake in the project. Out of the total committed investment of PKR 4.3 billion, PKR 1.5 billion has been invested. The Group’s stake is currently valued at PKR 5 billion.
Javedan Cement Limited (JCL) was acquired through privatization in 2005, with the Group holding 20.7% stake. In addition to the cement plant, total land area is 1,230 acres. It is envisioned as the largest private sector development initiative in Karachi. The land is located next to Sind Industrial & Trading Estate (SITE), one of the most prestigious industrial areas of Karachi. It is proposed to develop this land either as an industrial park or for low cost housing. The estimated value of land is USD 300 million, which, post-development, is expected to exceed USD 600 million.
Arif Habib Group has formally entered the Real Estate Investment business by becoming the first to incorporate a Company under the NBFC Rules to provide REIT Management Services and float REIT Schemes in Pakistan. Arif Habib REIT Management Limited has been formed with the primary objective of managing the Real Estate Investments of the Group and converting these assets into equity by launching either Rental or Developmental REIT Schemes and offering the units to the general public. The Regulations approved by the SECP require that each REIT scheme must have a minimum size of Rs. 2 billion and that the RMC must hold a minimum of 20% in each REIT Scheme. This would require the Group to make substantial investments in Real Estate for which the Group is firmly committed. In line with global practice, Arif Habib Group will further form companies to offer Property Management Services and other Real Estate services to augment its REIT Management business.
The Arif Habib Group ranks amongst the fastest growing financial services providers in Pakistan today. This has been made possible by a strong brand franchise built on decades of first-rate services to clients. Managing assets in excess of PRs. 37 billion (US$ 617 million), the Group holds interests in the securities brokerage, investment and financial advisory, investment management, commercial banking, commodities, private equity, cement and fertilizer industries.
The Group takes pride in its orientation towards client service. It believes that its key success factors include continuous investment in staff, systems and capacity building, and its insistence on universal best practices at all times.
The Group takes pride in its orientation towards client service. It believes that its key success factors include continuous investment in staff, systems and capacity building, and its insistence on universal best practices at all times.
