Making of a Hi-Tech Vendor

By: Mohsin SyedHybrid Technics (Pvt) Ltd.

Resume Education  

MS. Electronics Engineering California State University. Los Angeles, U.S.A. 1980.  

B.Sc. Electronics Engineering, University Of Engineering, Lahore 1976.

Commercial Pilot License Holder.

Engineering Experience Design Engineer Saudi Consult Saudi Arabia 1976-80  Member design team Jubail & Yambu Industrial Estates Project Manager Mc Graw Edison Co. Los Angles, California

U.S.A. 1981-84 Design and manufactured about five million units of Seven

different electronic products

Extra Corporate Activities Chairman Punjab Industrial Estates Development &

Management Company (PIE) Member Board Pakistan Aeronautical Complex Pakistan

Airforce Kamra President Board of Management, Lahore District of Technical

Education and Vocational Training Authority (TEVTA) Convener Deletion Program Committee Electrical & Electronic

Products. Engineering Development Board (EDB). President Aircraft Owner & Pilot Association Pakistan Chapter.

Resume

Foreign Collaborations

Sulzer Ruti 1998 Switzerland Mitsuba Corporation 1992 Japan Sucker + Muller + Hacoba 1993 Germany Shindengen Electric 1994 Japan Thies 1999

Germany IRO 2000 Sweden Barco Sedo 2000

Germany

Case History Hybrid Technics Electronic technology in Kot Lakhpat Industrial Estate.

Acquisition of land: 1984-1987 Change of line of business Two years No drainage – sewerage removal from factory area. No garbage removal & disposal. Broken roads. Changing sales tax laws. Harassment from sales, professional tax and customs

department. 2.2 kanal cost of plot Rs. 400,000 Initial investment Rs. 5.0 Million Present investment Rs. 50.0 Million Starting Staff 15 Present Strength 150

Start Up

Start up of Hybrid in 1985 Technical Achievements

Fisheries Motors Suzuki Car Electrical and Electronic Parts

Start up of Negotiations with Atlas Honda Ltd. , Honda Japan and Mitsuba from 1987 – 1992

Launch of Winker Flasher Project

Financing of Project by Local Bank

Guarantee by Atlas Honda Ltd. To local Bank To Hybrid Technics to purchase the parts for seven

Years minimum or One Million parts which they have met.

Actually 13Years of purchasing has been done and still continues.

Business Volume with AHL

0.559 8.68

50.01

110.606

0

50

100

150

sale

s (i

n

mill

ion

)

91-92 94-95 99-2000 2004-05

period

Business Growth with AHL

Total Business Growth

1.216 9.833

59.364

199.606

0

50

100

150

200

Sal

es (

Rs.

in

mill

ion

)

91-92 94-95 99-00 2004-05

Total Business Growth

Jobs Created By Hybrid Technics

0

50

100

150

200

No.s Of Employees

91-92 94-95 99-2000

2004-05

Period

Custom Duty Paid by Hybrid

0.10

2.71

5.24 5.85

0 1 2 3 4 5 6

Rs. in Mln

1991- 92

1994- 95

1999- 2000

2004- 05

Period

Taxes Paid by Hybrid

0.158 0.3730.993

5.222

0

1

2

3

4

5

6

Tax Deposit Rs. in

Million

1991-92

1994-95

1999-2000

2004-05

Period

Launch of Second Project 1994 Regulator Rectifier

Issue High Cost of Technology Long term financing not available from

commercial Banks any more Leasing option utilized to solve the problem Atlas Honda Ltd. Commitment of Five Years Financial charges of Equipment included in

pricing formula

HI-TECH CDI PROJECT 2002Capacitor Discharge Ignition

Cost of Technology and machinery extremely high

Machines leased again with great difficulty

Production still on and is in third year of production

Acquisition of land Project financing at very high interest rate of

20% – 22% initially. Running finance costs were initially high but are

now down to reasonable levels Non availability of good quality raw material Harassment from Sales Tax and Income Tax

officials due to high tax rate

Problems

For construction of factories, Industrial parks with one stop facility across the country

Technology cost will be even higher for the next projects OEM Should invest jointly with the vendor Prudential rules of debt equity should be changed for Hi-

Tech Project Training of staff at international level should be tax

deductible or partly Government sponsored Sales tax + Income tax should be streamlined for

no contact with the tax collectors

Solution and Way Forward

Solution and Way Forward(Continued……)

Tariffs of completely built up units and their basic prices should be monitored by the Tariffs Commission, CBR and EDB for quick reaction to dumping by other countries in Pakistan

Raw material of excellent quality should be allowed at Zero to Five Percent (0% - 5%) duty by commercial importers also

Pakistan Should switch over from a deletion based Engineering Industry to an Export based Engineering Industry

Solution and Way Forward Tax rates should be as follows for the Private Limited Companies to go Public on the stock exchange

Present Rates Proposed rates Public Ltd Co. 35% 15% Private Ltd Co. 43% 20% Partner Ship 25% 25% This structure should encourage excess liquidity with the

people to go into Industrial growth rather than residential and agricultural plots

 

Recommendations Training programmes for converting

technologists to entrepreneurs Venture Capital System should be established

by GoP. Technology Acquisition from International

Market should be facilitated by Multinationals based in Pakistan

Mid size Pakistani Engineering Companies should enter the International Business Chain

Thank You***