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Pakistan Ordinance Factories – Past, Present, Future

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Pakistan Ordinance Factories – Past, Present, Future 27/05/16 1 FORCE BEHIND THE FORCES PAKISTAN ORDNANCE FACTORIES PAST – PRESENT – FUTURE…. FORCE BEHIND THE FORCES 1947 PRINCIPLE DECISION TO HAVE PAKISTAN’S DEFENCE INDUSTRY Prime Minister of Pakistan presided a meeting on 16 Dec 1947 and decided to have Pakistan’s own defense industry 1951 FOUNDATION STONE LAID IN WAH CANTONMENT 2nd Prime Minister of Pakistan Khawaja Nazim-ud-Din laid the foundation stone of POF at Wah Cantonment on 28 Dec 1951 FORCE BEHIND THE FORCES EVOLUTION - POF • Founda(on Stone / Inaugura(on - 1951/1954 • Autonomous Board to run POF - 1958 • POF Board created Wah Industries Ltd - 1958 (WIL) - a commercial window of POF • POF Board Ordnance empowered Board - 1961 with Administrave and Financial Autonomy • Through WIL, POF started commercial ventures: established Wah Nobel Group - 1963 of Companies with foreign partners FORCE BEHIND THE FORCES POF Mandate Ordinance No. XVII 1961 Clause 6 To manage and administer the affairs of the factories and run them on sound commercial lines, so as to adequately meet during war and peace the needs of the defense of the country, and to ulize the surplus capacity of the factories to meet the needs of Civilian populaon. FORCE BEHIND THE FORCES ORGANOGRAM CHAIRMAN MEMBER MEMBER (Corporate) DICR FAOF MPC Ministerial Coord • ADMIN • Procurement • ARTY AMMO • R & D • CARBIDE • Services • EXPORTS • EXPLOSIVES • CIVIL WORKS • QUAL. ASSUR. • FILLING • M I S • SUBSIDIARIES • SAA & B.M • T A Fy • CLOTHING • SECURITY • WEAPONS • HOSPITAL • GADWAL • CMA POF • SANJWAL CHAIRMAN POF is also • HRM • HAVELIAN HEAD of all POF • Secy Board • MACHINE GUN Subsidiaries FORCE BEHIND THE FORCES Physical Infrastructure - Stascs POF Cantonment • 14 Defense Units Factories Total Area • 14 Subsidiaries • 26 sq km Plants & • 19267 Populaon Machines • 400,000 Work Force • 24000 Educaon • 131 Instuons Engineers Literacy & Scien6sts • 602 Rate • 98% 7 FORCE BEHIND THE FORCES Quality Certifications ISO 9001 – 2008 • Pertains to International quality standards for design, development & manufacture of small arms and ammunitions ISO – 14001 • International certificate for maintaining ideal environmental standards ISO -17025 • Pertains to the certification of Material Testing Labs, Ballistic Labs and Standards Labs OHSAS – 18001 • Pertains to occupational health & safety management systems ) FORCE BEHIND THE FORCES POF Defence Commercial Division Division FORCE BEHIND THE FORCES Defence Producon Units (14 x Factories) Weapons Propellants Machine Gun Explosives Small Arms Ammo Filling Medium Ar(llery Ammo Brass Mill Heavy Ar(llery Ammo Tungsten Alloy Tank & An( Tank Ammo Carbide Bombs & Grenades Clothing • 62 PRODUCTS (95% to Army) • Assured supplier of Arms/Ammo for last 60 Yrs 10 FORCE BEHIND THE FORCES Commercial Division Wah Industries Limited (WIL) Commercial Window of POF 100% Shares Owned by POF Board 14 x Subsidiaries (Incl 3 x Inhand) Majority Shares Owned by POF Board FORCE BEHIND THE FORCES Wah Industries Ltd (WIL) Wah Nobel (Pvt) Ltd Packaging Factory (2014) Shot Gun Ammo Factory Hi-Tech Plastics Factory Wah Brass (Pvt) Ltd (2013) Sanjwal Solar Power (Pvt) Ltd (2013) Clothing (Pvt) Limited (Inhand) FORCE BEHIND THE FORCES Wah Nobel (Pvt) Ltd (1964) Wah Nobel Chemicals Ltd Wah Nobel Acetates Ltd Wah Nobel Baluchistan Explosives (Pvt) Ltd Wah Nobel Gilgit Baltistan (Pvt) Ltd (2013) Nobel Energy Ltd (2014) Wah Gezhouba (Pvt) Ltd (Inhand) Gezhouba Wah Services Ltd (Inhand) Wah Nobel is a JV of WIL - SAAB of Sweden and Al-Mishal from Saudi Arabia ) FORCE BEHIND THE FORCES PERFORMANCE OF SUBSIDIARIES & TAXES PAID (Rupees in Million) 8000.00 7176.00 6789.02 7000.00 6623.41 6617.42 6061.37 6000.00 5000.00 4223.32 4000.00 3000.00 2000.00 1743.77 1485.00 1134.52 1195.57 922.58 1000.00 806.76 0.00 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Sales Dues/Taxes Paid FORCE BEHIND THE FORCES EXPORT FORCE BEHIND THE FORCES World is our Market EAST/SOUTH AMERICAS EUROPE AFRICA M. EAST ASIA Canada Belgium Nigeria Bahrain Thailand Colombia Denmark Kenya Iraq Indonesia Uruguay Germany South Africa Jordan Maldives USA Luxembourg Egypt KuWait Malaysia West Indies UK Morocco Lebanon Myanmar NeW Zealand Oman Nepal SWitzerland Qatar Philippine CZ Republic Saudi Arabia Bangladesh UAE South Korea Singapore Sri Lanka Vietnam FORCE BEHIND THE FORCES Human Resource Development Program POF Institute Inland and Defence of Outland Technologies Technology Training Courses (POFIT) FORCE BEHIND THE FORCES Development of SMEs • At the (me of establishment of POF the industry in Pakistan was not adequately equipped to manufacture precision parts needed for military hardware. • Producon facilies therefore had to be setup covering end-to-end producon i.e. from raw material to finished product. • In late six(es, a policy decision was taken by the board to outsource some operaons and for this purpose a Trade Development Department was established for the support of vendors. • Different produc(on units of POF were asked to outsource the manufacturing of parts for arms and ammunion. FORCE BEHIND THE FORCES Development of SMEs • For this purpose complete design and technical know-how was provided to the Private sector to develop the manufacturing facilies. • In POF we have achieved these goals and have been able to develop a few SMEs with excellent success rates. • SMEs like Daud Sons Armory Peshawar, Alsons Industries Karachi, Machinecrai Lahore, Service Industries Gujrat, PSM Karachi and many more have been our partners in Defense Producon. • POF established Wah Nobel Private Limited as an SME way back in 1964 which has grown over(me and has become a group of six companies. FORCE BEHIND THE FORCES Possible Areas of Cooperation • Forging, die-cas(ng, plas(c molding etc. • Machining of parts and their heat/ surface treatment. • Manufacturing electronic parts of ammo as well for machine maintenance. • Produc(on of all sorts of packaging, wooden, steel, plas(c, fiber glass etc. • Industrial chemicals • Insensive materials Our vision is that POF limits itself to assembling, filling and proofing of end products whereas SMEs can handle the produc(on of various parts and materials for the end product FORCE BEHIND THE FORCES Benefits of SMEs Development • Increased produc(vity. • Cost effecve output. • Low cost of ammo/equipment produced by SMEs. • Increased produc(on without addional investment of public sector. • Increased economic ac(vity in private sector resulng in industrial growth. • Creaon of jobs in local sector resulng in alleviaon of poverty etc. FORCE BEHIND THE FORCES POF PLAN FOR SUSTAINABILITY FUTURE…. FORCE BEHIND THE FORCES Vision A professional, progressive, technologically advancing and internaonally compe((ve organizaon which meets Demand of Security Forces and earns valuable revenue to make it self sustainable in the long term FORCE BEHIND THE FORCES VISION 2025 AIMS AT THE FOLLOWING GOALS Self-Sustainable Organization Technology Savvy Organization System Integrator R&D Hub Centre of Excellence for HRD FORCE BEHIND THE FORCES Strategy • Reorient strategic direc(on towards Self Sustainability & Financial Autonomy – Reduce financial burden of GoP • Exploit Commercial & Dual Use Potenals - Transform POF into a commercial org through Changed Working Model • Bring Pvt Sector Par(cipaon w/o compromising basic role • Bridge technology gap - replace old plants/machines from export earnings / commercial sales – not seeking GoP Grants • Increase capacity & product range to meet needs of defence, LEAs and capitalize on export potenal • Restructure POF to make it lean, cost effec(ve & efficient Organizaon 25 FORCE BEHIND THE FORCES RESTRUCTURED POF POF Defence Gp Commercial Gp Arms and Ammo Services & Material Production Support Group (Core Area) (Non-Core Area) Commercial Group Commercial Group Carbide Acid Plants Services Subsidiaries Brass Mill Clothing Tooling Wood Work Power Plant 26 27 Commercial Projects • 125 KW Solar Project (Wah Nobel Office) • 200 KW Solar Project (Wah Medical College) • 1.1 MW Solar Project (Wah Nobel Chemicals) • 5 MW Solar Power Project in Captive mode at POF Sanjwal • Due Diligence in hand for Coal Water Slurry Power Project. • Consortium with FWO for Hydro Power Projects. • JV: Wah Nobel & China Gezhouba will establish facility at POF for production of bulk commercial explosives and required for future mega infrastructure projects through mobile units and blasting services FORCE BEHIND THE FORCES 27/05/16 28 .
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