Kohat Cement Enters Pakistan’s Real Estate Development Market with Rs750 Million Subsidiary
Karachi, Pakistan — Kohat Cement Company Limited (PSX: KOHC) has announced a strategic expansion into Pakistan’s fast-growing real estate sector by setting up a wholly-owned subsidiary dedicated to property development.
In an official notice to shareholders, published on the Pakistan Stock Exchange (PSX) on 11 July 2025, the company confirmed that the new entity will “undertake real estate development and all allied works” with an initial paid-up capital of Rs750 million.
Cement Giant Moves Into Real Estate
This marks a major diversification for Kohat Cement, one of the country’s leading cement producers. The company has not yet disclosed specific details of its upcoming real estate projects, but the move signals a strong commitment to building a long-term presence in Pakistan’s construction and property development market.
Following Lucky Cement’s Footsteps
Kohat Cement is now the second major cement manufacturer in Pakistan to establish a standalone platform for property development. Lucky Cement, through its ventures such as Lucky One Mall in Karachi and the under-construction Lucky Mall Lahore, has already proven the commercial viability of leveraging cement manufacturing into large-scale property projects.
Vertical Integration Strategy
Industry experts describe Kohat Cement’s entry into real estate as a classic case of downstream vertical integration. Cement is the single largest bulk input in construction projects, making up about 20% of total structural costs.
By developing its own real estate projects, Kohat Cement can:
- Internalize demand for its cement production
- Stabilize kiln utilization rates across economic cycles
- Hedge against market volatility in the standalone cement industry
What This Means for Investors and Pakistan’s Real Estate Sector
Kohat Cement’s diversification highlights a growing trend where industrial giants are tapping into Pakistan’s real estate and construction boom. With urbanization on the rise and demand for housing, malls, and mixed-use projects steadily increasing, the move could unlock new revenue streams for the company while reshaping competition in the sector.
For investors, this expansion represents not just a cement stock play, but also an indirect entry into Pakistan’s high-growth property market.
