By Shams ul Nisa
Islamabad–Thal Limited is making notable progress in Pakistan’s power sector by focusing on localization and import substitution, reports WealthPK. These strategic initiatives aim to reduce dependency on imported components, boost operational efficiency, and strengthen the country’s energy security.
Engineering Division Leads Import Substitution Efforts
Therefore, the company’s engineering division, particularly its thermal and engine components and electric systems divisions, is driving localization by producing high-quality components for the power sector. This will reduce import dependency, support the local industry, and boost economic growth through job creation and supplier partnerships.
Strategic Collaborations for Power Distribution
Moreover, the company is focusing on strategic collaborations with key power distribution players to enhance the ability to deliver innovative, globally compliant solutions tailored to Pakistan’s energy needs.
Additionally, the company is minimizing exposure to exchange rate volatility and global supply chain disruptions by shifting to locally manufactured components in place of imports. This approach has helped reduce costs and maintain consistent supply for major local clients.
Investments in Thar Coal Projects Enhance Energy Security
Furthermore, the company is enhancing the country’s energy security through strategic investments in coal-based energy projects in Thar, in partnership with SECMC and ThalNova Power Thar. The company is utilizing local coal for electricity generation, reducing reliance on imported fuels.
Strong Financial Performance Amid Market Challenges
The company has reported strong financial results for the six months ending December 31, 2024, demonstrating resilience amid the challenging market conditions. The consolidated net revenue rose by 18% year-on-year and net profit by 90%.
Additionally, the company’s engineering segment posted sales of Rs62 billion during the review period, reflecting a robust 40% year-on-year increase. This impressive growth was fueled by the rising demand for automotive components and higher order volumes from the original equipment manufacturers (OEMs).
Sustainability and Renewable Energy Investments
Moreover, the company continues to prioritize sustainability throughout its operations, actively promoting environment-friendly practices. Its packaging division is advancing biodegradable packaging solutions, while strategic investments in renewable energy projects further reflect the company’s commitment to global environmental standards.
Meanwhile, the laminates division, operating under the Formite brand, is driving innovation by creating specialized products that cater to the changing market needs. These initiatives are supported by plans to grow its dealership network both locally and internationally, with a focus on expanding into the export markets in the Gulf Cooperation Council region and East Africa.
Future Outlook: Growth Aligned with National Goals
Looking forward, Thal Limited expects a stable customer demand as macroeconomic conditions improve. Factors such as lower interest rates, increased liquidity, and revival in consumer confidence are likely to fuel growth across its key segments, including engineering, packaging, building materials, and allied products. The company also plans to deepen its presence in the power sector by capitalizing on localization opportunities and reinforcing strategic alliances.
Thal Limited Setting New Standards in Power and Industry
Thal Limited is well-positioned to achieve sustainable long-term growth, with a strong alignment to the national goals like energy security and industrial advancement. The company continues to exemplify resilience and progress, setting new standards of excellence across various industries nationwide as it navigates evolving market conditions with a focus on environmental responsibility.
