Fauji Foundation, the military-owned diversified industrial and financial conglomerate, is now eyeing a new frontier—the steel industry. Known for its presence in fertilizers, food, energy, banking, and more, Fauji is looking to acquire Agha Steel. But is this move a shrewd step into a growth market, or a plunge into troubled waters?
There are three key variables are key to answering that question. The first is Fauji’s own ability to manage ventures in its ever-expanding and diversifying empire. The second is whether Agha Steel is the best acquisition target in the space, or at least is it one through which Fauji can have a realistic expectation of making a reasonable return. And then the third is the economics of the steel industry itself, and whether or not it is a good industry for Fauji to expand into. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
