ISLAMABAD: Jamal Din Wali (JDW) sugar mills owned by PTI’s disgruntled political leader Jahangir Tareen and his family has reported a record profit of 4.7 billion rupees for the crushing year 2020-21. The management of the JDW mills has shared this information with shareholders of the company and Pakistan Stock Exchange to fulfil its regulatory obligation.
In comparison with all other sugar mills operating in the country, JDW has reported the highest amount of profit for 2021 crushing season. For example, in 2021 Dewan Sugar mills, Haseeb Waqas Sugar mills, Sanghar and Faran Sugar mills were among those which have reported losses for 2021 crushing year.
However, profit before tax of the JDW mills amounted to 4.7 billion and it closed at 4.6 billion after payment of tax in 2021. This paltry tax payment indicates the company has got some tax benefits from the government.
Importantly, JDW mill has reported a substantial increase of Rs 77 in value of its share at the stock market during the crushing year 2020-21. JDW is one of the few leading sugar mills in Pakistan and it has a major market share in the country in addition to export of surplus commodity.
Every year the new crushing season starts from Sept and it ends in August next year. The crushing season is linked with harvest of sugarcane crop which starts from September every year.
However, many sugar mills delay crushing season every year till November due to different reason, including increase in sucrose rate, prices of sugar in domestic markets, etc.
How the profitability of the sugar industry has enlarged after the formation of PTI government, it can be imagined well from the example of increase in the retail price of sweetener. In August 2018, when PTI formed its government, the price of sugar at retail stage was Rs50/kg. However, just a few months later the retail price of sugar even crossed Rs100/kg.
Thus, every buyer in the country is paying 100 percent extra price of sugar at retail stage because of alarming increase in the value of the commodity.
Secrets behind record profitability of JDW Sugar Mills Ltd
JDW Group is the progressive industrial house of the country. Sugar manufacturing is the core business of the Group and is also renowned for support of innovative farming techniques which augment the core business. The Group takes immense pride in social responsibility activities (social mobilization, women enterprise development, support to technical and primary education, micro credit for the poor, infrastructure development, livestock development etc.) all aimed at ameliorating social and economic conditions of the poor people in rural areas.
JDW Sugar Mills Ltd.
The Sugar Division comprises of three sugar mills Units, JDW Unit-I , JDW Unit-II and JDW Unit-III in the districts of Rahim Yar Khan, Punjab and Ghotki, Sindh.
The Company has been successful in completing and commissioning its two high-pressure Co-Generation plants at Unit-II (Sadiqabad) and Unit-III (Ghoki). The first 26.6 MW plant at Unit-II achieved commercial operations on 12 June 2014 after clearing all testing, certification and trial run requirements. The second 26.8 MW project at Unit-III achieved commercial operations on 03 October 2014 after similarly completing all pre-commissioning formalities.
JDW is also managing Sugarcane Corporate Farms over the area of 24,000 Acres in the Provinces of Punjab & Sindh. By using knowledge, experience together with modern tools and machinery and distinctive agronomic strategies, JDW has been able to built highly efficient and eco-friendly farms with higher yields. Company’s unique farming techniques have also led to the capacity building of existing farmers thereby resulting in improved and reliable cane supply to JDW.
Deharki Sugar Mills (Pvt.) Ltd.
Deharki Sugar Mills (Pvt.) Limited(DSML) is the Subsidiary Company of JDW Sugar Mills Limited (Holding Company). DSML is located in District Ghotki, Sindh.
Faruki Pulp Mills Limited was incorporated as a public limited company under the Companies Ordinance, 1984 on October 20, 1991. The Company is engaged in the manufacturing of wood pulp from Eucalyptus for consumption in local and foreign paper industry. This project was started in early 1990 but due to various reasons could not be completed on time. This will be first of its kind project in Pakistan based on 100% supply of all raw materials locally. Due to its technical and professional viability, JDW Group has chosen this business for strategic investment with an objective of diversification. This is an agro based industry using local raw materials.