KSB Pumps Company Limited (“KSB Pumps” or “the Company”) was incorporated in Pakistan on July 18, 1959 under the Companies Act, 1913 (now superseded by the Companies Act, 2017). The Company is publicly listed on the Pakistan Stock Exchange Limited. Its manufacturing facility is located on Hazara Road in Hassanabdal, and it maintains four regional offices in Lahore, Rawalpindi, Karachi and Multan.

KSB Group traces its beginnings to Frankenthal, Germany, where it was founded in 1871 by Johannes Klein, Friedrich Schanzlin, and Jakob Becker. In 1887, it was incorporated as a public limited company under the name Klein, Schanzlin & Becker (now KSB SE & Co. KGaA). Over the years, KSB has expanded its operations significantly: it today operates numerous manufacturing sites around the world and maintains a sales, marketing, and service presence in well over 100 countries through its subsidiaries and facilities. In July 1959, KSB took its first step into Asia by setting up a subsidiary in Pakistan, and by 1964 it had established its first factory in Hassanabdal.

KSB Pumps is primarily engaged in the manufacturing and sale of industrial pumps, valves, castings, and related components, along with the provision of comprehensive aftermarket services. The Company has a nameplate production capacity of 6,000 pumps and operates an extensive nationwide network of franchises and dealers to ensure convenient access for its customers. Additionally, KSB Pumps operates a dedicated Service Department equipped with a modern, state-of-the-art facility to deliver efficient maintenance, repair, and support services to its customers.

KSB Germany previously owned around 58.89% of the Company’s shares. After a rights issue completed in September 2024, the sponsor’s holding rose to approximately 73%, with the remaining shares held by insurance companies, financial institutions, and the general public.

KSB Germany (KSB SE & Co. KGaA) is globally recognized with a proven record of stability built over more than 150 years of continuous operations. Headquartered in Frankenthal, Germany, the company has maintained steady growth through prudent management, disciplined financial policies, and a diversified international presence. Its enduring performance, despite changing economic cycles and market dynamics, reflects strong governance, a resilient business model, and a commitment to long-term value creation.

KSB Germany demonstrates strong business acumen through its global operations, technical expertise, and continuous innovation in pump and valve technology. The group operates multiple manufacturing facilities and maintains a presence in over 100 countries, positioning itself among the world’s leading manufacturers in its domain. KSB’s emphasis on research, efficiency, and customer-centric solutions continues to strengthen its global competitiveness and leadership in the industry.

KSB Germany’s financial strength stems from its diversified global operations and strong market position. The group benefits from a broad customer base across multiple industries, including water, energy, construction, and industrial manufacturing, which helps reduce dependence on any single market. KSB Germany’s prudent capital structure and strong liquidity position reinforce its financial flexibility and ability to withstand economic volatility.

The KSB Pumps Board of Directors (BoD) consists of eight members and is Chaired by Dr. Sven Baumgarten. In accordance with the Listed Company Code of Corporate Governance, the BoD includes four Independent Directors (ID), three Non-Executive Directors (NED) (including the Chairman), and one Executive Director (ED), who serves as the Chief Executive Ofcer of the Company.

KSB Pumps BoD brings together members from diverse educational and professional backgrounds, enriching the board with a wide range of expertise. NEDs include Dr. Sven Baumgarten, the Chairman with over two decades of experience and responsibility for KSB’s operations in the Middle East, Africa, and Russia; Mr. Dieter Antonius Pott, Global Executive Ofcer of Finance/Accounting at KSB Germany since 2017; and Mr. Hasan A. Bilgrami, CEO of BioMasdar (Pakistan) Limited and former founding President & CEO of BankIslami Pakistan. IDs feature Mr. Asif Malik, a seasoned mechanical engineer with over 30 years of experience; Ms. Ayesha Aziz, a financial expert with 28 years in Project Finance, Debt Markets, and Asset Management; Mr. Shahid Mahmood, a Mechanical and Marine Engineer with extensive experience in heavy industry and power plants; and Mr. Asim Raque, a Chartered Accountant with over 25 years of expertise in finance, strategy, taxation, and corporate affairs. The ED is Mr. Imran Ghani, the CEO of KSB Pumps, who brings over 31 years of extensive experience in key leadership roles across multicultural environments. There has been no change in the BoD since last review.

In CY25, four Board meetings were held with satisfactory attendance from all members. KSB Pumps has established two committees to support the Board: The Audit Committee and the Human Resource and Remuneration Committee, both chaired by ID’s. The Board’s strategic guidance enabled ongoing investments in technology and operational efciency, driving sustained growth and enhancing the Company’s service capabilities.

For the year ended December 31, 2024, PwC served as the external auditor for KSB Pumps and issued an unqualified opinion on the company’s financial statements. Currently, KPMG Taseer Hadi, Chartered Accountants, serves as the external auditor. In addition to outsourcing its internal audit function to Tariq Abdul Ghani Maqbool & Co., Chartered Accountants, the company maintains a dedicated in-house internal audit department. This dual approach strengthens governance by ensuring effective internal controls, rigorous monitoring, and compliance with regulatory and operational standards.

The Company operates under a well-defined organizational structure with clearly delineated management authorities. Its operations are organized into seven key divisions: (i) Operations, (ii) SupremeServ, (iii) Sales & Strategic Marketing, (iv) Finance & Control, (v) Admin & Corporate Affairs, (vi) Internal Audit, and (vii) Human Resources. Each division is led by qualified, experienced professionals. The Company’s management is fully aligned with KSB Germany, ensuring strategic coherence and consistency across all functions.

KSB Pumps is led by a highly experienced management team driving both strategic and operational excellence. Mr. Imran Ghani, Managing Director & CEO, brings over 32 years of engineering and business experience across Pakistan, the Middle East, and Africa, complemented by global leadership training. Mr. Imran Ahmed, Chief Financial Officer since 2022, combines expertise in finance, supply chain, IT, and digitization, with a proven track record in managing mergers, large-scale projects, and financial reporting across multiple sectors. Mr. Muhammad Imran Malik, Chief Commercial Officer, oversees Pumps & Valves, Supremeserv, Product Management, Exports, and Strategic Marketing, leveraging two decades of leadership experience. Mr. Fida Hussain, Chief Manufacturing Officer, brings over 31 years of operational and technical expertise, ensuring process optimization, manufacturing efficiency, and safe, high-quality production at KSB’s Hasanabdal facility.

At KSB Pumps, each department head reports directly to the CEO, who in turn is accountable to the Board of Directors. Regular management meetings ensure that strategic plans are effectively executed and monitored. The company reinforces the effectiveness of its leadership through its Integrated Management System (IMS), systematically overseeing operations to ensure compliance with national regulations and internal policies on quality, environmental standards, occupational health, and safety. This structured approach highlights the management team’s commitment to operational excellence and strong governance.

KSB Pumps leverages SAP as its ERP solution, supporting a comprehensive Management Information System (MIS) framework. Deployed by KSB Germany, SAP enables real-time reporting to the Parent Company, while KSB Pumps also prepares and shares monthly MIS reports to ensure consistent communication and alignment across the organization.

KSB Pakistan maintains a robust control environment through its IMS that upholds the highest operational standards. The company’s monthly IMS provides detailed performance reports, regularly reviewed by senior management to monitor progress and ensure alignment with strategic objectives. KSB Pumps’ commitment to quality is reinforced by its ISO certifications-ISO 9001 since 1994, followed by ISO 14001 and ISO 45001, awarded by TUV Germany, reflecting adherence to global best practices in quality, environmental management, and occupational health and safety.

Pakistan’s pump and valve industry comprises both organized and unorganized players, with demand largely stemming from government projects, particularly in water pumping and thermal power, while private sector participation and export focus are gradually increasing. The segment’s revenue stood at around PKR 4.88 billion in FY24, down ~15.3% from PKR 5.76 billion in FY23, mainly due to reduced export demand amid slower global growth, while local sales remained stable. Over FY20–FY24, the segment maintained an average gross margin of ~17.2%, with FY24 margins easing to ~19.8% (FY23: ~20.4%) owing to inflationary pressure on input costs, salaries, and energy. Operating margins contracted from ~5.1% to ~1.6%, and net margins declined to ~-7.0%, reflecting high finance costs and persistent cost escalation. Raw materials, primarily steel, iron, and copper, accounted for roughly 58% of total costs, underscoring the sector’s exposure to commodity price volatility.

KSB Pumps is the leading player in the pumps and valves industry, catering to the needs of both public and private clients with a market share of over 30%. It is the only corporate entity with a pump manufacturing facility, distinguishing it from competitors that are primarily small and medium-sized enterprises controlling the remaining market share. KSB Pumps has maintained its leadership position for decades, supported by its superior after-sales services.

KSB Pumps derives its revenue from three core segments: (i) Pumps & Valves, (ii) Services, and (iii) Project Sales. The Pumps & Valves segment continues to dominate the Company’s topline contribution. During 1HCY25, total sales increased to PKR 3,316 million compared to PKR 2,438 million in the same period last year, reflecting a growth of approximately 36% YoY. The improvement was primarily driven by stronger export performance, which rose to PKR 912 million in 1HCY25 from PKR 553 million in 1HCY24, an increase of about 65% YoY, while local sales also posted moderate growth. The Company’s revenue remains predominantly domestic, yet the recent increase in exports reflects meaningful progress in broadening its market reach. KSB Pumps continues to prioritize expanding its export base and improving operational efficiency to maintain growth momentum, despite ongoing cost pressures in the local market.

In 1HCY25, the Company’s gross margin improved to 22.6%, up from 19.8% in 1HCY24. The Company reported a net profit of PKR 154mln, a significant turnaround from a net loss of PKR 170mln in 1HCY24. This improvement was primarily driven by enhanced operational efficiency and lower finance costs.

KSB Pumps is strategically enhancing its sustainability by expanding exports and prioritizing private sector projects, thereby improving cash flow and reducing reliance on government-related receivables. The Company has adopted an indirect model for government projects by partnering with private contractors holding government contracts, which has accelerated receivables collection and strengthened liquidity. Additionally, KSB Pumps is broadening its after-sales service footprint under its SupremeServ brand, launching dedicated workshops in Karachi (June 2023) and Lahore (August 2023). These initiatives not only diversify revenue streams but also reinforce the Company’s long-term position as a provider of comprehensive and reliable service solutions.

In 1HCY25, KSB Pumps continued to manage its working capital efficiently through internal cash generation. The Company recorded a significant reduction in finance costs during the period, as it did not utilize short-term credit facilities to meet its working capital needs. This prudent financial management underscores KSB’s strong liquidity position and resilience. Reflecting this improvement, the Company’s net working capital days have steadily declined over the years, reaching 99 days in 1HCY25, compared to 105 days in CY24, 109 days in CY23, and 145 days in CY22, indicating continued enhancement in operational efficiency and cash conversion.

In 1HCY25, the Company’s debt servicing coverage ratio (DSCR) surged to 62.9x, compared to 1.8x in CY24, reflecting the absence of both long-term and short-term borrowings during the period. Free cash flows from operations (FCFO) in 1HCY25 were recorded at PKR 446mln, down from PKR 493mln in CY24. Finance costs declined sharply to PKR 8mln in 1HCY25, compared to PKR 295mln in CY24, driven by non-utilization of available credit facilities.

KSB Pumps continued to maintain a highly conservative capital structure in 1HCY25, following the financial adjustments made in the previous year. In CY24, the Company raised funds through a rights issuance, using the proceeds to fully repay its short-term borrowings, which brought the leverage ratio down to 0%. Equity strengthened to PKR 4,127mln, reflecting the impact of these capital restructuring measures. This strong capital base has enhanced the Company’s financial stability, reduced reliance on external financing, and positioned it to support ongoing operations and future growth initiatives.