Karachi, December 07, 2023: During a ceremony recently held at KE Head Office, the company inked a Memorandum of Understanding (MoU) with House of Habib to collaborate for sourcing locally manufactured components for its electricity infrastructure requirements while complementing the ‘Made in Pakistan’ ideology.
KE is committed to initiatives focused on localisation and has already begun streamlining reliable local alternatives for components such as protection covers for HT bushing, DO Cutout, fuse base, cable end caps and PPEs including safety gloves. Both organisations have joined hands to fortify and indigenise the power sector supply chains through emphasis on locally sourced components, which will serve as resourceful catalysts in energising the city.
In its quest for localisation, KE envisions home-led innovation in the power sector, curtailing lead times caused by raw material imports, while mitigating foreign exchange losses. The estimated gains for KE worth PKR 30 billion for the next 7 years await proactive participation. Both organisations, while championing the cause of indigenously sourced products, have agreed for the practical implementation of localisation, given House of Habib’s muscle for manufacturing and integrating essential components for industries. This was highlighted by showcasing relevant components essential for the functioning of power plants while emphasising upon their strategy of bringing these at par with global quality. House of Habib will therefore be supplying KE with the 300 sq mm pre-moulded HT cable joints, piercing connectors, cable ties and clamps which will further be followed by the addition of other components in the future.
“Embracing locally procured components stands as a cornerstone towards our commitment for obtaining operational excellence. Beyond efficiency gains, it can empower regional economies and foster sustainable supply chains. Pakistan’s power sector is undergoing a transformation, presenting tremendous opportunity to catalyse the growth of our nation’s industrial prowess. Our partnership with House of Habib – an industry stalwart – also demonstrates our seriousness towards this goal of enabling self-reliance and resilience in our energy infrastructure,” said Moonis Alvi CEO, KE.
“Partnering with KE is a step towards driving growth which will trickle down and strengthen our supply chains. We highly appreciate KE’s stance towards making energy accessible and affordable which will benefit the National Exchequer and minimize the impact on the import bill. Energy security is a pressing need of our country, and we are pleased to be working with a company that is agile, progressive, and committed to a vision for Karachi. We hope that our pioneering step encourages others to step in and seize the chance to shape the future by enhancing Pakistan’s industrial footprint. We therefore envision a sustained journey towards paving the way for a brighter future.” – Tayyab Tareen, Vice Chairman House of Habib.
Toughening economic conditions and fluctuations in KIBOR and rupee-dollar parity have impacted cost of doing business in Pakistan. State Bank estimates suggest that procurement costs have risen to 40% due to these factors, affecting lead times and delivery fulfilment. At the same time, the situation presents an opportunity to substitute the sector’s reliance on imported goods with local manufacturing.
With over 80% reliance on imported materials (including raw material) presently, KE is actively pursuing a shift towards increased local procurement. Emphasising the need for collaborative efforts within the power sector, the company is committed to achieving this transition post focus on investment since privatisation and enhancing the energy ecosystem as part of its Investment Plan worth PKR 484 billion, leading up to 2030.
House of Habib is a large, diversified group in Pakistan and is now extending its portfolio to develop products in areas which complement the needs pertaining to KE’s electrical infrastructure, given the recent surge in development across the value chain which is aimed at meeting the growing energy needs of customers across various categories.
ABOUT K-ELECTRIC:
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 square kilometers territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.
ABOUT HOUSE OF HABIB:
The House of Habib plays a pivotal role in shaping the economics of Pakistan through its portfolio of businesses in the Automobile, Auto Engineering, Building Products, Real Estate, Packaging and Energy sectors. The powerhouse entity adds value to over 15 million lives each day in key areas with investments that are positively impacting the nation.
