A BRIEF ABOUT HEAVY ELECTRICAL COMPLEX

1- CORPORATE STATUS

A Private Limited company under State Engineering Corporation of

Ministry of Production, Government of Pakistan.

2- SHARES
Not enlisted with the Stock Exchange. All the shares owned by GoP.
97 % shares were offered for disinvestment in previous privatization
process.

3- LOCATION

66 KM from Islamabad in Hattar Industrial zone of KPK on TaxilaHattar-Haripur Road.

Hattar Industrial Zone is an important industrial zone of KPK and has
a strategic location as well, just 7-8 KM from the upcoming PakChina Economic Corridor.

4- PRODUCTS

The present manufacturing range includes Power Transformers of

rating up to 40MVA & Voltage 132 KV. It has planned to enhance the
capability up to 500 KV power transmission of unit rating up to 200
MVA.
Following standard transformers are presently in the production line
of HEC.
a) 31.5/40MVA,132/66/11.5KV
b) 31.5/40MVA,132/12/11.5KV
c) 20/26MVA,132/11.5KV
d) 10/13MVA,132/11.5KV
e) 10/13MVA,66/11.5KV
f) 6.3MVA,132/34.5KV
g) 6.3MVA,66/11.5KV
Above program was designed on requirements of WAPDA & KELECTRIC and it was against an exclusive arrangement with WAPDA
that it will utilize all the HECs capacity for its routine requirements.
Unfortunately it was not honored in its true letter & spirit.

5- SERVICES

Repair and rehabilitation of the Power Transformers up to 500KV, the

highest voltage in the power system of WAPDA of power capacity
ranging from 71MVA to 200MVA.

6- CAPACITY

Overall annual capacity of the factory is 3000MVA. A mix capacity is

about 148 transformers per year; however for the higher capacity
transformers, as per present requirement, the capacity is 45-50
transformers per year.

7- FUTURE EXPANSION
A fair provision, both in spare land and existing buildings, is
available for the future expansion and diversification such as;-

a) Transformers of higher ratings up to 160 & 200 MVA- 500 KV.

b) Step-up transformers.
c) Refurbishment of traction motors of Pakistan Railway.
d) Manufacturing of bushing (presently all imported)
e) General fabrication
8- AREA

Total area of the factory is 33 Hectors out of which the total covered
area is 25,000 Sq.M.
Main production building is about 16,000 Sq.M and the auxiliary
buildings for Utilities like steam, compressed air, hot and cold water,
electricity and gas are provided laterally along the length of the
main production building.
All the factory buildings and offices covers an area of about 13
Hectors , thats about 40 % of the total land and about 60 % land is
available as open/clear area for the expansion and the colony.

9- MAJOR WORKSHOPS
a)
b)
c)
d)
e)
f)
g)
h)

Winding shop
Core shop
Insulation shop
Assembly shop
Machine shop
Fabrication shop
Testing shop
Sand blasting and painting facility

10- LIFTING CAPACITY

Electric Over Head Crane Presently a capacity of 100 Ton lifting is

available with a future expansion of another 100 Ton lifting capacity.

11- MACHINES MAKE

About 66 % machinery is of Chinese make, 11% German, 11 % Swiss

and 12 % local.

12- CLIENTAGE

a)WAPDA
b) K- ELECTRIC
c) IPPs
d) Local Industry

13- MARKET SCENARIO.

Pakistan is an energy hungry country and requires a lot of power
transformers in the years to come for the new installations, up
gradation and replacement.

14- AVERAGE ANNUAL SALE

Rs. 1.30 Billion approx. can be easily increased more than double
with aggressive marketing and adequate working capital.
Low sale by HEC is mostly due to lots of government constraints and
poor working capital.

15- FIXED ASSETS

In a fair market price the HEC Fixed Assets were evaluated as Rs.
1.132 Billions and the other assets as Rs. 387.4 Million.
After making adjustments the Net fair market price of the assets
was valued as Rs.1.475 Billion
According to HEC balance sheet of the period ending Dec.2014, the
companys total assets were Rs. 1.614 Billion.

16- LIABILITIES

Rs. 435 Million at the time of last privatization.

17- MANPOWER

Presently 24 Regular employees including 15-16 engineers and

about 150-160 daily wages employees.
For running of the factory on full capacity, it requires 35-40
engineers and about 200 workers.

18- FINANCIAL ADVISERS EVALUATION

M/S DELLOITE Pakistan, the Financial Adviser, originally set Rs.500

Million as the minimum sale price and valued the company in the
range of Rs. 1.248 Billion to Rs.1.475 Billion @ Rs.85.57 & Rs.101.08
per share.

19- COMPETITORS

Presently only one local company, PEL, is the competitor as SIEMENS

has stopped manufacturing power transformers and is offering
imported Chinese transformers.
Imported Chinese transformers, as per statement of MD, HEC, are
costlier than HEC pri

20- DEAL WITH M/S CARGIL HOLDINGS

Total

price of Rs. 905 Million as per following break-up;Rs. 250 Million in cash.
Rs. 435 Million as liabilities.
Rs. 30 Million to cover employees gratuity and provident fund
obligations.
Rs. 190 Million as pending tax refund benefits ?