Lahore: Kohat Cement Company Limited (PSX: KOHC) has announced its strategic decision to enter Pakistan’s real estate sector by incorporating a wholly owned subsidiary dedicated to property development. According to a stock filing published by the Pakistan Stock Exchange (PSX) on July 11, 2025, the Board of Directors approved the formation of the new entity with an initial paid-up capital of PKR 750 million. The subsidiary will be responsible for “real estate development and all allied works.” However, the company has not yet disclosed specific details about the nature or location of the developments it plans to undertake.
Read: Unregistered real estate transactions to face crackdown This move positions Kohat Cement as the second major cement manufacturer in Pakistan to formally diversify into the real estate sector. The first was Lucky Cement, which has successfully established a strong presence in the market through high-profile projects like Lucky One Mall in Karachi and Lucky Mall in Lahore. Industry analysts view Kohat’s entry as a calculated step toward downstream vertical integration. Cement accounts for approximately 20% of structural construction costs, and by integrating its core product into real estate development, Kohat Cement aims to stabilise kiln utilisation, secure consistent demand for its output, and hedge against cyclical slowdowns in cement sales. The company’s diversification aligns with a broader trend among industrial players in Pakistan who are seeking growth and resilience through sectoral integration.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
