PAKISTAN MACHINE TOOL FACTORY

COMPANY PROFILE

June 05, 2007

PAKISTAN MACHINE TOOL FACTORY (PVT) LTD.

COMPANY PROFILE
STATUS Private Limited Company Fully Owned by Government of Pakistan SET UP SHARE CAPITAL 1968 Rs 292 million fully subscribed by Government of Pakistan through SEC. TOTAL AREA Factory Colony 177 Acres 45 Acres As on 31-5-2007 (Nos.) MANPOWER 1- Regular/ Contract Officers 232

2- Regular/ Contract Workers 1105 3- Casual Workers 902 ---------------2239 ----------------

24-Aug-11

COMPANY PROFILE (Contd.)

FACILITIES
1- FACTORY. Integrated production facilities including variety of conventional and CNC Machine Tools Like Turning, Shaping, Milling, Grinding, Gear Cutting, Spark Erosion, Hobbing, Forging, Heat Treatment And Quality Assurance Equipment Etc. 2- OTHERS. Colony, Canteen, Dispensary, School QUALITY RECOGNITION. ISO-9001:2000 Certified PRODUCTS. Tractor parts, Automotive Transmission Parts, Machine Tools, Defence Hard Ware, Die-Cast Products, Etc. CUSTOMERS. Tractor Assemblers,Automobile/ Motorcycle Assemblers, Defence Org., Pak Railways, SSGC, PAEC, KRL, OGDC, etc. MAJOR STRENGTHS. Precision engineering facilities, diversification capabilities, skilled manpower

PAKISTAN MACHINE TOOL FACTORY (PVT) LTD.

IMPORTANT MILESTONES
1964 1968 1970 1975 1986 1991 1995 1997 The Project approved by NEC Inauguration & Trial Production Start of Regular Production Incorporated as Private Limited Company Implementation of BMR Programme for tractor parts Start of UNIDO TA Project Completion of UNIDO TA Project Establishment of Electronic Lab. ISO 9001:2000 Certification 2005 Implementation of BMR Programme for motorcycle parts

CAPABILITIES & FACILITIES

1. PRODUCT DESIGNING

* Conventional and Computer Aided Design (CAD)

2. MACHINING * Turning upto Dia 1000mm : Conventional, NC, and CNC Length 4000mm * Milling : Conventional and CNC Spline Milling, and Thread Milling * Drilling Max. Dia 50mm : Conventional and Deep Hole Drilling * Boring Max Dia 620mm : Jig Boring (Vertical and Horizontal) & CNC

* Shaping
* Gearing

upto 650 x 500

: Conventional & Planing : Plain and Splined Bores

* Broaching (Vertical)

Max Module = 10 : Shaping, Hobbing, Teeth Grinding Shaving, St. Bevel and Spiral Bevel Generation * Cold Rolling Max Dia = 120mm : Spline Rolling * Grinding Max Dia = 480mm : Centerless, Cylindrical, Internal and Surface
24-Aug-11

3. FORGING * Free Forging : * Die Forging : Upto 25 Kg weight & 350 mm Dia 4. DIE CASTING Upto weight 11 Kg (Alum) & 40 Kg (zinc)

Drop Hammers upto 3000 kg, Presses, Furnaces and Shot Blasting Machines Pressure Die Casting Machines upto locking force 700 M. Ton

5. HEAT TREATMENT Normalizing, Tempering, Gas Carborising, Nitriding, Induction Hardening, Flame Hardening 6. SURFACE TREATMENT Bright Chrome Plating, Cadmium Plating, Nickel Plating, Hard Chrome, Electro-Galvanising, Anodizing, Phosphating, Sand & Shot Blasting 7. MATERIAL TESTING Mechanical, Chemical, Metallographic
24-Aug-11

8. TOOL DESIGN Conventional and Computer Aided Design (CAD) * Dies : Pressure Die Casting Dies, Forging Dies and Sheet Metal Dies * Jigs & Fixtures * Cutting Tools * Measuring Gauges * Equipments 9. TOOL ROOM Die Sinking, Spark Erosion, Jig Boring, Sharpening, Template Grinding 10. QUALITY ASSURANCE Quality Checking Devices including Coordinate Measuring Machine, Gear Profile Testing Machine, Metrology Lab, etc. 11. TRAINING Training for Apprentices as, Machinist, Draughtsman, Welder, Fitter etc.
24-Aug-11

: : :

Turning Tools, Milling Cutters, Hobs, Reamers etc Snap Gauges Form Gauges and Plug Gauges Various Mechanical Devices

PRODUCT RANGE

TRANSMISSIONS FOR
MF 240/260 MF 375/385 Fiat 480 Fiat 640 U - 530 Bedford Truck Nissan Truck PMTF is engaged in manufacture of wide range of Gears/Shafts since 1970 and is a major/regular supplier of Massey Ferguson and Fiat Tractor components to local OEMs
24-Aug-11

TRANSMISSIONS
For Locomotives
HAU / HPU-20 EE 554 D 29 D 77 HBU 20 GE 752 ALU GE-761 ALCO GMU 30

High-Tech Pinions/Gears for Traction Motors/Axles of Locomotives

24-Aug-11

TRANSMISSION COMPONENTS OF MOTORCYCLES Crank Case & Covers

DIE CAST COMPONENTS

Gas Meter Parts (G4 & G 1.6) Honda Motorcycle Wheel Parts (CD 70 & CG 125) Suzuki Motorcycle Wheel Parts Wheel parts of Chinese branded Motorcycles Suzuki Engine Parts

MACHINE TOOLS
MILLING MACHINE MODEL LK6 MILLING MACHINE MODEL LK4

Table Size:1300x330 mm Universal,Horizontal & Vertical Main Motor : 5 HP

Table Size:1050x225 mm Universal,Horizontal & Vertical Main Motor : 3 HP 24-Aug-11 With Accessories

MACHINE TOOLS

PRECISION CENTRE LATHE MODEL C4C,C4D & C4F

Center to Center Distance C4C:750 mm C4D: 1000 mm C4F: 1500 mm Swing over bed:365 mm Main Motor : 4 HP with Accessories

24-Aug-11

MACHINE TOOLS
RADIAL DRILLING MACHINE MODEL LD1 TURRET MILLING MACHINE MODEL LK5

Working Surface:700 x 800 mm Drilling Capacity in Cast Iron: 32 mm Boring Capacity: 65 mm with Accessories

Table Size:1065 x 225 mm Main Motor: 1.5 KW with Accessories

24-Aug-11 24-Aug-11

MACHINE TOOLS
VERTICAL MILLING & BORING MACHINE LH 4 ENGRAVING MACHINE MODEL LP2

Table Size:1050x225 mm Main Motor : 3 HP With Accessories

Table Size:500x200 mm Motor : 0.3 HP Pantograph Ratio: 1: 1 to 1:50 24-Aug-11 24-Aug-11 With Accessories

MACHINE TOOLS
SPECIAL PURPOSE MACHINES FOR SURGICAL INSTRUMENTS
Slitting Machine Model LS1 S00 Milling Machine Model LK3 H13 Duplex Milling Machine Model LS1 M00

Table Size : 700 x 180 mm Main Motor : 2HP With Accessories

Table Size : 700 x 180 mm Main Motor : 2HP With Accessories

Table Size : 700 x 180 mm Main Motor : 2HP 24-Aug-11 With Accessories
24-Aug-11

MACHINE TOOLS
CNC TURNING CENTRE MODEL: LC6 N01

SLANT BED WITH SERVO MOTOR DISTANCE BETWEEN CENTERS 750 mm MACHINE DIMENSION 3000 x 1000 x 1800 mm

MACHINE TOOLS
DESKTOP CNC MILLING MACHINE MODEL: LN2 V00 FEAUTURES 2D / 3D Graphics CAM Software Use Educational / Industrial Purpose

CNC FEAUTURES
 CAM user friendly software with 3D graphical ISO format machine programming using G & M Codes.  Accurate Tool Path graphics continuously displayed line by line during program write, Test Run & Manufacturing Links with major CAD / CAM packages.

ELECTRICALLY OPERATED MECHANICAL DISPENSING PUMP MODEL: PF1-M05/M11 SINGLE/DOUBLE NOZZLE

SPECIAL PRODUCTS
Mortar Guns

Caliber 60 mm Length of Barrel 724 mm Max Range 2000 M Rate of Fire 8 Round/Minute Type of Firing Mech. Manual Total Weight 16Kg

81 mm 1450 mm 5000 M 15 Round/Minute Automatic 42 Kg

120 mm 1746 mm 9000 M 12 Round/Minute Manual / Automatic 402 Kg 24-Aug-11

SPECIAL PRODUCTS
ROCKET LAUNCHER (RPG 7)

Caliber of Rifle 40 mm Length. Of Grenade Launcher 950 mm Weight of Launcher 6.3 Kg Max aimed Range 500 M Rate of Fire 4-6 Round/Minutes Armour penetration 300 mm Shipping volume 0.21 M

Caliber of Recoilless Rifle Weight of Recoilless Rifle Rate of Fire Armour penetration

106 mm 429 Kg 4-6 Round/Minutes 500 mm

Length. Of Recoilless Rifle Max Range Direct Fire Max Range Indirect Fire Shipping volume

3332 mm 2012 M 7680 M 3M

24-Aug-11

HISTORICAL OPERATING RESULT

SALES
1,000 900 800 700
559 51 0 421 394 438 350 448 344 461 558 885 776 81 3 761 642 839 926 928 882

Mill Rs

600 500 400 300 200 100 -

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006
* Estd

YEARS

*2007

HISTORICAL OPERATING RESULT

PRODUCTION
900 800 700 600

Mill Rs

500 400 300 200 100 -

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006
* Estd

EARS
At Constant Value At Current Value

*2007

HISTORICAL OPERATING RESULT

PRE-TAX PROFIT & LOSS

80
61

65

60 40 Mill Rs 20 (20) 1989 1990 (40) (60)

(8) ( 13 ) 31 23 20

46

48 40 35 16 8 5 32

( 11) ( 18 ) (28)

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006
* Estd

(39)

YEARS

*2007

HISTORICAL OPERATING RESULT

RETAINED EARNING
250
204 2 16

200 150
97 12 4 10 3 75 44 11 (73) (84)

Mill Rs

100 50 (50) (100)

(42) (32) (42)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006
* Estd

YEARS

*2007

PRODUCT MIX

PMTF PRODUCTS - MIX

SPECIAL PRODUCTS 10% DIE CAST 16%

MACHINE TOOLS 3%

TRANSMISSION 30%

MACHINE TOOLS 5%

SPECIAL PRODUCTS 61%

DIE CAST 6%

TRANSMISSION 69%

1986-87 (Rs 461 Million) Assy Products : 64% Vendor Parts : 36%

2005-06 (Rs 928 Million) Assy Products : 15% Vendor Parts : 85%

EXPORTS

TO FRIENDLY COUNTRIES DURING PERIOD 1975-2007

S.N 1. 2. 3. 4. 5. 6. PRODUCT DISCRIPTION Recoilless Rifle 106 MM Mortar 120 MM Mortar 81 MM Mortar 60 MM Rocket Launcher RPG-7 Spares of above products Total USD QTY. IN Nos. 971 93 451 635 722 Lot SALES VALUE In USD 26,547,789 2,259,000 4,568,836 1,219,935 1,631,720 1,600,000 37,827,280

Offers submitted,under negotiation/consideration by various friendly countries : USD 2.44 Million

MAJOR CUSTOMERS

Major Customers
TRANSMISSIONS

1. Millat Tractors Ltd 2. Al-Ghazi Tractors Ltd. 3. Universal Tractors Ltd. 4. Pakistan Railways
DIE-CASTINGS

1. 2. 3. 4. 5. 6.

Sui Southern Gas Company Atlas Honda Limited Suzuki Motor Cycle Company Delta Innovation Ltd. Dewan Motorcycles Ltd. Suzuki Motor Company Ltd

Major Customers
SPECIAL PRODUCTS 1. 2. 3. 4. Armed Forces Civil Armed Forces Pakistan Ordnance Factories Friendly Countries

MACHINE TOOLS 1. 2. 3. 4. Government Agencies/Research Organizations Public Sector Companies (e.g. Pakistan Steel, SSGC, NRL, OGDC etc.) Vocational Training Institutes Private Organizations (Automotive, Pharmaceutical, Textile, Process Industries etc.)

MACHINERY & EQUIPMENTS

MACHINERY/EQUIPMENTS INSTALLED IN PMTF

GROUP-WISE MACHINES / EQUIPMENT QTY (Nos) 25 4 9 12 186 25 108 21 17 13 2 99 10 3 2 4 80

Broaching/Planing/Shaping/Rifling/Slotting - Broaching M/Cs - Planing M/Cs - Others Turning - Small Precision Lathes - Others Conventional Lathes - Turret Lathes - CNC Lathes - Copying Lathe - NC Lathes

Drilling and Boring - Boring machine - Deep Hole Drilling machine - Spark Erosion machine - Centering & Facing machines - Other Drilling machines

MACHINERY/EQUIPMENTS INSTALLED IN PMTF

4 Milling/Sawing - CNC Milling Machine - CNC Machining Center - Thread Milling Machine - Boring & Milling M/Cs - Sawing/Cut off Machine - Other Milling M/Cs 133 1 3 5 6 18 100

Grinding - Cylindrical/Universal Grinding M/Cs - Internal Grinding M/Cs - Surface Grinding M/Cs - Honing M/Cs - Other Grinding M/Cs Gear/Splines Cutting - Rack type Shaper - Circular Shaper - Straight Bevel Gear cutting machine - Spiral Bevel Gear cutting machine - Cold Rolling Machine - Gear Hobbing Machine - Gear Shaving Machine - Other Gearing Machines

156 31 11 16 4 94 84 4 12 6 3 1 26 8 24

MACHINERY/EQUIPMENTS INSTALLED IN PMTF

7 8

Die Casting Heat Treatment - Pit type furnaces - SQFs - Rotary furnace - Induction Hardening Forging - Board Drop Hammers - Pneumatic Hammers - Press (Trimming/Forging) - Furnaces for forging/Normalizing

12 15 4 5 2 4 21 2 5 6 8 240

10 Other Auxiliary/Miscellaneous Machines and Equipment

Total

971

MARKET SCENARIO

MARKET SCENAR O OF AUTOMOT VE SECTOR

PROJECTED DEMAND OF AUTOMOTIVE VEHICLES
TRACTORS
80,000
70,000

MOTORCYCLES

, ,

, ,

70,000 60,000

61,000 68,000

1,000,000

QTY in Nos

20,000 10,000 98-99 99-00 00-01

87,504 86, 59

 

01-02 02-03

03-04 04-05

05-06 06-07

07-08

08-09 09-10

TRUCKS, BUSES & LCVs

100,000 90,000 80,000 70,000
( '
74,430 88,570

PASSENGER CARS
350,000
300,000

300,000

60,000
%

62,540 52,560 44,170 37,117 10,908 15,300 9,662 9,409 10,189 18,216

QTY in Nos

ACTUAL

250,000 200,000 150,000

ACTUAL
155,515 174,000 100,240 124,710 38,682 32,461 39,573 61,814 40,088

50,000 40,000 30,000 20,000 10,000 98-99 99-00 00-01 01-02 02-03 03-04 04-05
!

Projected

100,000 50,000 -

05-06

06-07 07-08

08-09 09-10

98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10

YEARS

YEARS

YE

23,801

26,240

26,644

Projected

30,000

YI

40,000

34,559 31,635

37,770

39,659

48,802

50,000

  

63,500

ACTUAL

ACTUAL

805,000 715,200 912,000

, , , ,

632,395 322,816 484,223

Projected
108,850 120,627 165,105

250,000

 

& $ # "

201,000

Projected

PRODUCT DIVERSIFICATION

PRODUCT DIVERSIFICATION
 Since its inception, PMTF has kept on diversifying its products in line with market need. Presently it is engaged in manufacturing of a wide range of products relating to machine tools, automotive transmissions, and defence. Keeping in view current market trends / needs, PMTF can further diversify its products by utilizing existing production facilities and balancing / adding facilities wherever required. This will substantially increase its annual turnover and improve its operating results. PMTF has already developed CNC Lathe and CNC Milling Machines for training purpose. Considering continuous increase in demand of CNC machines of medium size from local manufacturing concerns, PMTF can start production of these machines under technical collaboration / Joint Venture with renowned foreign firms. The government has already exempted custom duty on import of components for CNC machines to encourage its local production.

PMTF has vast experience for manufacture of transmission and axle components and their assemblies for trucks and tractors. It can join hand with a foreign partner for production of complete tractor to fill the gap in present demand and supply. PMTF has been manufacturing wheel parts of motorcycles. It has also developed certain engine parts. During last few years a number of assemblers have entered into the local market and addressed the market segment needing low priced motorcycles. PMTF can focus on assembly of complete Sports Motorcycles for the market segment of youngsters. This motorcycle of good quality with reasonable price can attract this segment.

 PMTF has long history of producing weapons involving barrels. It can select some weapons of new generation in consultation with Pakistan Armed Forces and produce the same by adding facilities, wherever required.

PROSPECTS OF PRIVATIZATION

PROSPECTS OF PRIVATIZATION
 The following strengths of PMTF can be further exploited after privatization: Good reputation in the market. Long term goodwill with a number of regular customers. Manufacturing skill and know-how. Proximity with large number of Automotive Assemblers (like Pak Suzuki, Indus Motors.) National Highway, Port Bin Qasim. Integrated Production Facilities. Abundant Land for expansion.  Operational results can be further improved by taking actions as under: Up-gradation of production facilities for improving quality and productivity. Rationalizing / balancing the strength of employees to reduce wage bill and increase efficiency.

24-Aug-11