Descon registers new fully-owned subsidiary in Sharjah

KARACHI: In a letter dated 2 May 2023, company secretary of Descon Oxychem Limited Abdul Sohail informed the Pakistan Stock Exchange (PSX) regarding the registration of a new subsidiary. The letter announced that Descon Oxychem Limited, in compliance with clause 96 of the Securities Act 2015 and clause 5.6.1 (a) of the PSX Regulations, has registered its fully-owned subsidiary named ‘Descon Oxychem FZE’ in Hamriyah Free Zone, Sharjah, UAE. 

It was also shared that the subsidiary will primarily focus on marketing and selling of Descon Oxychem Limited’s products. This announcement followed a previous letter (reference number DOL/MI/2022-01) dated December 19, 2022, advising shareholders of Descon Oxychem Limited to take note of this new development.

What is Descon? 

It started 41 years ago, in a tiny 500 square feet office at Lahore’s iconic WAPDA house, with the goal to establish Pakistan’s leading engineering enterprise. Now it is one of Pakistan’s leading multinational conglomerates, with a diverse range of expertise in sectors, including oil & gas, cement, power, hydro power, dams/barrages/canals, fertiliser, renewable energy, sugar, industrial, chemical, and petrochemicals. 

They also specialise in EPC, construction, maintenance/industrial services, infrastructure, manufacturing, and automation and control projects, offering services for all kinds of engineering needs.

Even though the company started as an engineering company in Pakistan, its reach is not limited to Pakistan. Descon now has a global presence that spans across the GCC (including the Kingdom of Saudi Arabia, UAE, Kuwait, Qatar, Oman), Iraq, Pakistan, South Africa and Kenya and perhaps plans on expanding their footprint further. 

Descon’s recent expansion and diversification

Setting base for marketing and selling of Descon’s products in the UAE is not the only big wave the company has made recently. Along with expansion such as its newest subsidiary Descon Oxychem FZE, the company has also been diversifying its reach and tapping into new industries. 

In the past year, the Descon group has invested in water-treatment, fintechs, pharmaceuticals, banking, and agriculture. The prominent one of their notable investments is in the agriculture sector, which is typically overlooked by other major players in Pakistan. 

They did so in March 2022, by acquiring shareholdings in two agricultural enterprises – Vital Agri Nutrients and Vital Green – which have since been providing solutions to farmers facing various challenges. Vital Green has even partnered with microfinance bank FINCA to offer financing to farmers in their value chain. Additionally, Descon established “Descon Research Farms,” a 100-acre farming facility near Kasur, in November of 2022, to experiment with new farming techniques and test the interventions proposed by Vital Agri Nutrients.