Gharibwal Cement (GWLC) remains committed to diversifying away from the national grid. Its captive capacity stood at 70MW during FY24. Moreover, the company plans to enhance its solar generation capacity by 8MW to 20MW. The project’s cost is estimated at PKR550m, and its expected completion date is March 2025.
According to BMA Research coverage of the briefing, the company’s reliance on the national grid increased to 32 per cent during the fiscal year, compared to 31 per cent in FY23. Moreover, around 54 per cent of the company’s electricity needs were fulfilled by WHR and coal-fired boilers. Its average power cost was PKR27/kWh during the fiscal year.
GWLC’s kilning fuel mix comprised 40 per cent Afghan coal, 31 per cent local coal and 29 per cent imported coal.
Clinker cooler order
The company has various modernisation projects in the pipeline. It is working on replacing its existing coolers with advanced coolers from FLSmidth. GWLC estimates the project’s completion date to be around December 2024. The cooler replacement will enhance GWLC’s production capacity to 7500tpd (from 6700tpd). Moreover, the plant’s energy consumption will become more efficient, reducing its kilning fuel requirement by an estimated 3-4 per cent.
Regarding the company’s expansion plan for its 10,000tpd line, GWLC conveyed that the shipments have arrived and the necessary civil works are underway. The company, however, is awaiting a more conducive environment before the plant’s Commercial Operations Date. It will expedite the capital expenditures once interest rates fall and cement demand picks up. The management estimates PKR16-17bn as the remaining capital expenditures for the expansion.
by Abdul Rab Siddiqi
