Ghani Chemical eyes middle east with $10m Oman venture

October 28, 2025 (MLN): Ghani Chemical Industries Limited (GCIL) has strengthened its regional footprint with a strategic joint venture in Oman, marking a major step in its international expansion strategy.

The project, valued at $10m with GCIL holding a 40% equity stake, has completed regulatory approvals and land acquisition, moving firmly into the implementation phase, this was shared by company's management during Annual General meeting that held on October 28, 2025. 

This venture stresses the company’s commitment to geographic diversification and operational optimization through favorable international partnerships.

During the financial year, GCIL demonstrated exceptional performance, driven by significant revenue growth, operational expansion, and strategic modernization initiatives.

The company reported sales of Rs8.8 billion, up 33.3% from Rs6.6bn in the previous year, an impressive increase of Rs2.2bn.

This growth shows strong market demand, expanded production capacity, and enhanced operational efficiency across its facilities.

A major highlight of the year was the commissioning of a state-of-the-art production plant with a capacity of 275 tons.

The facility incorporates advanced technology that achieves a 30% reduction in electricity consumption per unit of gas produced, showing a substantial leap in energy efficiency.

The plant also enjoys a 10-year tax holiday, which is expected to bolster profitability and cash flows significantly.

GCIL’s Hattar plant currently operates at 60% utilization, with ongoing optimization initiatives aimed at improving capacity utilization.

This provides considerable room for volume expansion without requiring major capital investment.

Management anticipates strong improvement in Earnings Per Share (EPS) going forward, supported by higher production volumes, reduced per-unit costs, and tax incentives on new facilities.

These factors collectively enhance the company’s profitability outlook and position it for sustainable growth in the coming years.

As part of its long-term expansion plan, GCIL has also informed the relocation of its Lahore plant to Oman.

This move is expected to leverage Oman’s favorable business environment, strategic location, and operational synergies, solidifying GCIL’s position as a leading player in the regional industrial gases market.

The chemical industry has shown remarkable improvement over the review period. Management expects this positive trajectory to continue, supported by strong domestic and regional demand, growing industrial sector requirements, improved supply chain stability, and enhanced private sector investment across the sector.

The company's immediate priorities focus on maximizing the utilization of the Hattar facility to capture additional market share and improve operational efficiency.

Simultaneously, management is committed to completing the Oman plant setup and commencing commercial operations to establish a strong foothold in the Middle Eastern market.

Over the medium term, the company aims to optimize Oman operations and expand its market share throughout the Middle East region.

Management plans to fully capitalize on the 10-year tax holiday benefits available on the new facility, which will significantly enhance profitability.

The company is committed to enhancing EPS consistently through operational excellence and disciplined execution.

Additionally, management will continue to explore additional capacity expansion opportunities as market conditions and financial performance warrant further investment.

The company has established a strong cost leadership position through its 30% energy efficiency gain, which provides a significant competitive edge in the market by reducing per-unit production costs substantially.

This advantage is further amplified by the tax optimization strategy, where zero taxation for 10 years on the new facility will enhance profitability and allow the company to reinvest savings into growth initiatives.

Ghani Chemical Industries Limited has delivered outstanding performance with 33% revenue growth and strategic initiatives that position the company for sustained long-term success.

The commissioning of the new high-efficiency plant, coupled with the 10-year tax exemption and the Oman expansion, creates a strong foundation for enhanced profitability.

Management remains confident that the combination of operational excellence, technological advancement, and strategic geographic expansion will deliver superior value to shareholders.

The company is well-positioned to capitalize on favorable industry dynamics and achieve significantly improved earnings performance in the years ahead.

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