Shams ul Nisa

The DG Khan Cement Company Limited (DGKC) is taking a strategic step forward by broadening its export base and reducing reliance on domestic sales, reports WealthPk.

Due to sluggish local cement demand, the company is tapping into international markets to unlock new growth avenues, positioning itself for long-term resilience and global competitiveness. DGKC’s export growth supports Pakistan’s efforts to narrow the trade deficit and strengthen foreign currency reserves. During the 9MFY25, the company stood out with a 93% surge in clinker exports year-over-year, showcasing its aggressive pivot toward international markets. As a result, DGKC’s export growth drove a 12.4% rise in total sales, offsetting weak local demand and boosting margins.

DGKC is reinforcing its long-term growth trajectory through continued investment in operational upgrades and capacity expansion. A major milestone is the launch of commercial operations at its subsidiary, Nishat Packaging Limited’s new polypropylene plant, which is set to strengthen the group’s earnings in the near future.

The company’s leadership highlights the need for a stable policy framework to stimulate demand and enhance industry capacity utilization. DGKC stands ready to capitalize on any increase in public sector spending, especially in housing and infrastructure, which would drive domestic cement consumption.

The company’s export operations also stimulate employment, strengthen supply chains, and benefit sectors like logistics and shipping. Notably, DGKC’s HUB plant operated at over 100% capacity utilization, underscoring its ability to efficiently meet growing international demand.

DGKC posted strong results for 9MFY25, with gross profit rising to Rs13.17 billion and profit after tax more than doubling to Rs5.52 billion. This robust performance was supported by a sharp decline in finance costs, driven by lower interest rates, prudent fund management, and sizable loan repayments.

In the short term, DGKC is prioritizing export market expansion, product innovation, technology upgrades for cost efficiency, and strong environmental and social responsibility through global compliance and community support initiatives.

Despite challenges from weak public and private construction, DGKC’s export focus offers a resilient growth path. The company has urged policymakers to translate recent statements on low-cost housing into concrete actions to stimulate local demand.

Looking ahead, the company is paving the way for sustained growth while reinforcing its role in national development by expanding revenue sources, committing to long-term projects, and championing policy reforms. As international demand for cement and clinker strengthens, DGKC’s strong export presence and continued emphasis on innovation and efficiency position it as a key player in driving Pakistan’s industrial and economic evolution.

Credit: INP-WealthPk