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Limited (“KSB Pumps” or “the Company”) was incorporated in Pakistan on July 18, 1959 under the Companies Act, 1913 (now superseded by the Companies Act, 2017).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 got listed on the Pakistan Stock Exchange Limited in 1971. 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%. Through subsequent share acquisitions in 2026, it has increased further to 80%. The remaining shares are 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. In FY25, the group’s sales revenue crossed €3 billion for the first time, rising 2.3% to €3,035mn (~PKR 998bln), while net profit increased to €166mn (~PKR 54.6bln). KSB Germany’s prudent capital structure and strong liquidity position, reflected in an equity base of ~€1.39bn (~PKR 457bln), reinforce its financial flexibility and strength.

The KSB Pumps Board of Directors (BoD) consists of seven members and is Chaired by Dr. Sven Baumgarten. The BoD includes three Independent Directors (ID), three Non-Executive Directors (NED) (including the Chairman), and one Executive Director (ED), who serves as the Managing Director & Chief Executive Officer 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 Officer 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; and Mr. Shahid Mahmood, a Mechanical and Marine Engineer with extensive experience in heavy industry and power plants. The ED is Mr. Fida Hussain, the CEO of KSB Pumps, a Mechanical Engineer with over 32 years of experience and previously the Chief Manufacturing Officer. He succeeded Mr. Imran Ghani as MD & CEO with effect from September 1, 2026.

In CY26, multiple 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 IDs. The Board’s strategic guidance enabled ongoing investments in technology and operational efficiency, driving sustained growth and enhancing the Company’s service capabilities.

For the year ended December 31, 2025, the external auditor for KSB Pumps, KPMG Taseer Hadi, Chartered Accountants, issued an unqualified opinion on the Company’s financial statements. 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 an experienced management team. Mr. Fida Hussain, Managing Director & CEO, has over 32 years of professional experience and has been a member of the Management Committee since 2022. Syed Muhammad Adeel Raza Zaidi, Chief Financial Officer, has over 15 years of international experience and is skilled in financial strategy, IFRS reporting, budgeting and forecasting, and ERP implementation. Syed Nadeem Naqvi, Director Sales & Marketing, leads commercial growth and market expansion. Mr. Muhammad Omer Siddique, Director Technical, has over 22 years of experience in technical product management and engineering. Mr. Ali Asif, Director Human Resources, has over 18 years of experience, and Mr. Faisal Aman Khan, Company Secretary & Director Legal, Corporate Affairs & Administration, has over two decades of experience in legal and governance matters.

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-led projects, particularly in water pumping and thermal power, while private sector participation and export focus are gradually increasing. The segment’s revenue rose ~9.0% YoY to ~PKR 6.3 billion in FY25 (FY24: ~PKR 5.8 billion), supported by growth of ~23.2% in local sales and ~28.7% in export sales. Over FY21–FY25, the segment maintained an average gross margin of ~18.5%, with FY25 margins improving to ~21.8% (FY24: ~20.5%) on a stronger product and export mix and operating leverage from higher volumes. Net margins improved to ~5.2% (FY24: ~1.0%) as finance costs dropped significantly. Raw materials, primarily iron, steel, and copper, accounted for ~65% of direct costs (FY24: ~58%), underscoring the sector’s exposure to commodity price volatility.

KSB Pumps is the leading player in Pakistan’s pumps and valves industry, serving both public and private clients. As per management, the company holds a market share of over 35%. The market is largely fragmented, with most players being small and medium-sized enterprises producing for domestic and household needs. KSB Pumps is an industrial, large-scale player and the only corporate entity with a pump manufacturing facility. The few players operating at an industrial level are typically limited to specific products or domains, whereas KSB Pumps cater to a wide range of products and applications. It 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, contributing ~73% of CY25 revenue (CY24: ~70%). During CY25, total sales increased to PKR 6,584 million compared to PKR 5,776 million in CY24, reflecting growth of ~14% YoY. The improvement was primarily driven by stronger export performance, which rose to PKR 1,898 million in CY25 from PKR 1,513 million in CY24, an increase of ~25% YoY, led by higher sales to Asia and South America, while local sales also posted growth of ~10% YoY to PKR 4,687 million. The Company’s revenue remains predominantly domestic (~71%) yet exports now account for ~29% of sales (CY24: ~26%), reflecting 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 CY25, the Company’s gross margin improved to 23.8% from 20.5% in CY24, with gross profit rising ~33% YoY to PKR 1,568mln. This was supported by higher volumes (pumps produced rose to 3,903 units from 3,415), growth in export sales, and disciplined execution. Ongoing cost-efficiency initiatives, including the completion of Solar Expansion Phase-II, energy-efficient measures, and the sand reclamation project in the foundry, also helped, and energy costs declined despite the higher volumes. Finance costs fell sharply to PKR 20mln (CY24: PKR 295mln), as the Company has remained free of borrowings since its 2024 rights issue. As a result, net profit rose to PKR 210mln (CY24: PKR 56mln), translating into a net margin of 3.2% (CY24: 1.0%).

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 CY25, KSB Pumps continued to fund its working capital requirements through internal cash generation and supplier credit, without drawing on its short-term credit facilities. This kept finance costs minimal and reflects the Company’s strong liquidity position and financial resilience. Net working capital days have improved steadily, declining to 94 days in CY25 from 105 days in CY24. This was driven by quicker receivable collections and the extended credit terms from suppliers, which more than offset the build-up in inventory, demonstrating the Company’s improved cash conversion discipline.

The Company’s coverage profile remained exceptionally strong in CY25, as it continued to operate without any long-term or short-term borrowings and therefore carried no debt servicing obligations. Free cash flows from operations (FCFO) rose ~35% YoY to PKR 666mln (CY24: PKR 493mln), underscoring robust internal cash generation. Finance costs declined sharply to PKR 20mln, comprising only bank charges (CY24: PKR 295mln), as the Company did not utilize its available credit lines. Accordingly, FCFO to finance cost coverage improved significantly to ~33x in CY25 (CY24: 1.8x).

KSB Pumps continued to maintain a highly conservative capital structure in CY25, with no funded borrowings. This follows the CY24 rights issue, whose proceeds were used to fully repay the Company’s short-term borrowings. The Company’s exposure is limited to non-funded facilities of PKR 2,406mln (CY24: PKR 1,676mln), comprising bank guarantees of PKR 1,836mln, issued against contract performance, and letters of credit of PKR 570mln. This equates to ~57% of equity (CY24: ~42%). Equity strengthened further to PKR 4,186mln (CY24: PKR 3,973mln), supported by internally generated profits, providing a strong cushion against these obligations. The Company has funded its operations and plant modernization investments internally, reducing reliance on external financing and positioning it to support future growth initiatives.