HIGH STANDARD PIPE

COMPANY PROFILE

January, 2013
High Standard Pipe Company Profile

Table of Contents

Mission Statement ………………………………………...................... 2

Introduction ………………………………………………………………. 2

Product and Services……………………………………………………. 3

Market Analysis………………………………………………………….. 5

Business Development Strategy……………………………………… 7

Management and Operations………………………………………… 9

Competition………………………………………………………….…… 10

Certifications…………………………………………………… 17
Balance Sheet…………………………………………………………. 22

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MISSION STATEMENT
In efforts to rebuild Afghanistan, HSP provides an opportunity to the Afghanistan economic
and human resource development by offering an overall infrastructure concept to move
rapidly toward industrial development, self-sufficiency, self-reliability and economic
stabilization. This industrial innovation and revolution will help Afghanistan in implementing
and participating in a reconstruction and development phase of many projects in different
sectors such as Manufacturing and Industrialization.

INTRODUCTION

Afghanistan is a fast growing emerging market of strategic importance close to some of the
largest and fastest-growing markets in the world which offers a pro-business minded
environment with legislation favorable to private investments, therefore due to the suitable
environment for the investors the trend appears to be gradually growing in industrialization
and manufacturing organizations. Afghanistan is a major consumer and importer of various
construction materials in the region and the major part of this import is the material,
equipments and supplementary instruments for water supply system, sewerage collection
system and electrical network.

Disadvantages of Imports in the industrialization development of Afghanistan:

For years our country had been the only good market for our neighboring countries, Iran and
Pakistan, and some other international industries unfortunately our market is full of goods
from these countries which are of a bad or low quality including food, clothe, machineries,
industrial tools and equipment’s.

Pipes of all kind has been the need for our traditional and technical , private and governmental
projects and even households and all pipes are being imported from neighboring countries and
this have had the following negative impacts on our country:

1-Impact on our Economy:

 The money which is very essential to be used and revolved for the economic growth of
our country is escaping from our hands into the pocket of the manufacturers of
neighboring and international countries
 Prevents the development and growing of manufacturing and industrialization in the
country

2-Impact on our Human Resource Development

 constriction in effective utilization of human resources

 constriction in the development of the human resources skills, knowledge and
capacities
 constriction in industrial thinking
 Results in bringing more joblessness to the afghan society

Advantages of Manufacturing and Industrialization in our country:

The HSP Company holds a promise of strengthening and building upon existing infrastructure
and capacity that will help to move the country to industrialization, and also there is
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considerable room to increase the economic impact of the country through various
investments in manufacturing and production business.

As a result the industrialization process will:

 Gradually bring growth to the economic basis of the society

 Bring more job opportunities for the people our country
 Bring the idea of industrialization to the country
 Decrease the import of the low quality products from neighboring countries

In order to fulfill this promise High Standard Pipe (HSP) Company started with a initiative of
establishing its manufacturing services in the year 2008 for the production of various types of
pipes, fittings and services in the country, Which Include:

- HDPE, High Density Poly Ethylene Pipes and fittings

- PVC, Poly Vinyl Chloride Pipes and fittings
- PRR-C, Polypropylene Random Copolymer Pipes and fittings
- Joins butt welding (HDPE)
- Mould Coasted (PVC)

PRODUCT AND SERVICES

Afghanistan is in a very preliminary and beginning phase for providing a standard water
supply, sewerage and canalization systems, less than 10% of safe water is being distributed
through already established water supply systems at country level and at about 1% of the
major cities have a proper canalizations and sewerage systems in place and most of the pipes
needed for local works are being imported yet from Pakistan and Iran, here we believe that the
existence of a local manufacturer will be a strong opportunity for the economic development
of the country and will be a leading leap in the establishment of the industrialization in
Afghanistan.

The need of the local market is for the following kind of pipe products:

 High Density Polyethylene, HDPE pipes in different kinds and sizes

 Poly Venial Chloride, PVC pipes in different kinds and sizes
 Polypropylene Random Copolymer, PPR-C in different kinds and sizes
 Fittings

Product Description

1. HDPE Pipe & Fittings:

HPDE pipe PE 100 Grades from 16mm diameter up to 650mm with nominative
sustain pressure from 3.2bar up to 32 bar. all the denoted products is certified by

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TUV-NORD Germany as per ISO,DIN. PrEN , ANSI UL world known standards and
manufacturing under ISON 9001-2008 terms of conditions. For more information
please see our web specified product category www.highstandardpipes.com

2. PVC Pipe & Fittings:

PVC.UPVC PIPES NOR SCH & CLASSES from ¾” up to 24” with nominative
sustain pressure from 3.2bar up to 25 bar all the denoted products is certified by TUV-
NORD Germany as per ISO,BSS 3505 , ASTM –D , NEMA TC , PrEN ,ANSI UL
world known standards and manufacturing under ISON 9001-2008 terms of
conditions .
For more information please see our web specified product category
www.highstandardpipes.com

3. PPR-C Pipes & Fittings:

PPR-C pipe from 16mm diameter up to 75mm with nominative sustain pressure from
3.2bar up to 25 bar all the denoted products is certified by TUV-NORD Germany as
per ISO,DIN. PrEN , ANSI UL world known standards and manufacturing under
ISON 9001-2008 terms of conditions. For more information please see our web
specified product category www.highstandardpipes.com.

Services Description:

1. Material Testing and Quality Control Laboratory:

HSP owns a high-tech fully equipped with modern laboratory instruments and
equipments, which are utilized to test and QC the pipes and fitting manufactured by
HSP Factory and is also to perform the quality control test on third party manufacturer
products according to the well known international standard such as ASTM, ISO and
TUV.

2. Delivery and installation of the products:

HSP also provides onsite installation and delivery services. This part of our activity is
the technical part of our services plan, which allows us to implement project services
according to our customer demand.

Our broad line of product and services gives us an advantage over the competitors in
the market and helps us in attaining a leading position in the region.

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MARKET ANALYSIS
Afghanistan offers a pro-business minded environment in a fast growing emerging market of
strategic importance, receiving high-level political attention from the international
community. The country’s major asset is twofold and stems from its geo-strategic position
right in the middle of a region rich in natural resources and close to some of the largest and
fastest-growing markets in the world.
Industrialization, manufacturing and construction have been a main driving force behind
Afghanistan’s recovery and the manufacturing industries are expanding rapidly. The variety,
quality and quantity of production materials are increasing. This reflects the considerable
business opportunities in the manufacturing industries and production. The continued
reconstruction process, increasing income, and increasing population imply that
manufacturing productions and construction will remain strong over the next years. Demand
comes from different types of production activities:

- Major military-related projects

- Government reconstruction projects, such as water supply, power, electric systems, urban
planning, city development, irrigation systems, etc.
- Large scale private and business construction fuelled by business opportunities
- Small scale development of retail and residential construction

Basic services such as electric power, water and sewage infrastructure are still very limited in
Afghanistan. Most companies use basic materials needed for their projects which are mainly
imported from neighboring countries. The rise in demand gives an opportunity to HSP
Company to become a potential (HDPE, PVC, PPR-C and Fittings) manufacturer in the
country.

Major Donors
The International organization such as USAID, UNICEF, DACAAR, World Bank, Asian
Development Bank, KFW, PRT are the major contributors in promoting reconstruction and
infrastructure development in Afghanistan and are involved in immense project and
innovative engineering design which includes projects for Afghanistan ministry of Water and
Power, Ministry of Education, Ministry of Health in order to facilitate the national basic water
supply and sewerage canalization support projects.

The World Bank

The World Bank has also been involved in crediting the government of Afghanistan for
establishment and development long term water supply networking that shall restore and
expand the distribution network.

Asian Development Bank

The Asian Development Bank has also been involved in funding to the afghan government to
restore water supply, roads, power, and gas infrastructure in Afghanistan.

Provincial Reconstruction Team

The provincial reconstruction teams (PRT) are prime implementing partners and major donors
of infrastructure and development projects in Afghanistan

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U.S. Army Corps of Engineers (USACE)

The USACE is one of the major contributor in promoting reconstruction and infrastructure
development in Afghanistan which includes projects for Afghanistan ministry of defense in
order to provide essential facilities to the national security forces and establish a secure and
stable environment in the region. These projects are being equipped with newly-built state-of-
the-art housing facilities that include water supply system, sewerage system, power generation
systems, waste water treatment facilities, living facilities etc.

U.S. Agency for International Development (USAID)

The USAID is another agency that promotes reconstruction and infrastructure development in
Afghanistan. USAID Afghanistan supports U.S. businesses through programs that develop
Afghanistan’s business environment, reform efforts and mining sector, with project
opportunities in Roadwork, Water and sanitation, Power transmission and Construction

International Contractors
Our major customers will be the leading the International contractor, who takes the
responsibility for all aspects of construction and subcontracts with specialized contractor. We
will target both the prime contractor and subcontractors in order to get orders.

Local Market
There are potential buyers in the local market and a promising market available for HDPE,
PVC, PPR-C and fittings and other industrial equipments etc.

Note: a directory of major investors and companies in Afghanistan is available at

Afghanistan Investment Support Agency website: http://www.aisa.org.af

raw materials from international market and increase its production on national level to cover
a big percentage of the total demand of the market.

Poly Vinyl Chloride, PVC

 Imports from Pakistan: 20,000 metric ton/year

 Local Suppliers, who outsource the productions to Pakistan: 10,000 metric ton/year
 Imports from International market: 3,000 metric ton/year
 HSP Production: 3,000 metric ton/year

Based on the above facts, HSP covers 8.3% of the overall market demand for the PVC,
However due to the limitation of financial resources HSP could not afford sufficient amount
of raw materials and machineries from the international market and increase its production on
national level to cover a big percentage of the total demand of the market.

Polypropylene Random Copolymer, PPR-C

 Imports from Turkey, China, Pakistan, Iran and Local Manufacturers and Suppliers:
3,000 metric ton/year

HSP has recently installed its production lines for the production of PPR-C Pipes and hopes to
fulfill a sufficient amount of the demand of the market.

BUSINESS DEVELOPMENT STRATEGY

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Marketing Strategy

 Establishment of active sales agencies in all over the country

 Price equableness in all around the country
 Start and implement strong and active media communication strategies
 Conduct Seminars, Conferences, short term trainings and presentations on national
and international level to introduce the production and quality of our products and its
utilizing benefits to all technical organizations, of governmental and non-
governmental, customers, supplier and donors.

Service Strategy
 Complete market coverage all over the country by establishing production units, sales
and customer services centers
 Extend and develop post project implementation services of all kinds
 Implementation of internationally standard water supply projects within the country

Promotional Strategy
The (HSP) company will actively promote its brands to increase visibility in the market and
becomes a prominent manufacturing company, for this purposes we shall utilize the following
procedures.

- The HSP Company in support of the Afghanistan Investment Support Agency will
conduct conferences; seminars and information exhibition to disseminate there market
development strategies and innovative changes within its products and services for
prime donors, contractor’s, stakeholders, International customers and procurement
agencies. We will also be involved with the local Chambers of Commerce, City
Council and any other group that will allow for company exposure.

- The HSP company will prepare a group of marketing and sales agents, who will reach
to different customers, construction firms, government agencies, local and
international bodies to promote our products and services, for this purpose company
will prepare booklets, brochures, product catalogues, banners and flyer that will
contain companies history and background information, product details, contact
information and any other relevant information that will allow the company to
introduce its business.

- The HSP Company will utilize advertising agency services, such as advertisement and
will broadcast this information on local national television channels

Pricing Strategy
The HSP Company will adopt such pricing tactics that shall allow the company to expand its
operations in Afghanistan, for this purpose we may utilize the following procedure

- The HSP company have introduced suitable prices than the competitors prices in
order to get more orders known as market penetration pricing strategy

- The HSP company will introduce special offers on certain contracts such as free of
cost installations, training programs, and free of cost logistical support at lower scale

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projects, this will allow company to get potential projects at the beginning and expand
its operation in the local market

- HSP Company will design credit policies, which shall be another tactic to grow its
business

Production Strategy

 Increase 4 more PVC, Poly vinyl chloride production machinery in the factory
 Increase the production rate of HDPE from 4,000 metric tons/year to 10,000 metric
tons/year by acquire sufficient supply of raw material for HDPE
 Increase the production range of PVC from 3,000 metric tons/year to 15,000 metric
tons/year by acquiring additional machineries and sufficient supply of raw material
 Start the production of PRR-C, Polypropylene Random Copolymer, and acquire
sufficient supply of raw material
 Produce complete range of PVC Fittings, by acquiring additional mould injection
 Produce complete range of HDPE Fittings, by acquiring additional mould injection
 Produce complete range of PPRC Fittings, by acquiring additional mould injection
 Start the production of Cauraget for sewerage systems from 200mm sizes to 2 meters
sizes

MANAGEMENT AND OPERATION

Most of our managerial operations will be handled from High Standard Pipes factory and
main office in Kabul. We also have distribution centers and representative in different
locations of Afghanistan to operate the local operation.

The management plans on forming a team of trained engineers and technicians for providing
technical assistance to our client.

HSP has the following departments:

 Factory
 Administrative Department
 Finance department
 HR Department
 Logistics Department
 Marketing and Sales Department

Our management and administrative staff have professional knowledge to perform all HSP
activities in an effective and timely manner.

HSP has the following boards and committee:

 Executive board consist of executive managers
 Policy making board , consists of general director, executive managers and volunteers

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 Consultative and advisory board

 Objective based task force committee

The executive Board which consists of the head of the departments meets weekly and
discusses the any ongoing issues and makes decisions on the functionality of the departments
and factory as well.

Policy making board consists of the member of executive board, head of departments and
head of factory is responsible for following:

 To write down the organization policies and strategies

 To design any policy , strategy, and organizational goal’s change according to the
demand of the market
 To make long term decision and make long term strategies accordingly
 To design conflict resolution plan for the company extensively
 To design development plans for the company and factory
 Anticipate any industrial change or policy change in government and to suggest
solutions

The Main Suppliers

No. Customer’s Name Contact Person Contact No. QTY Supplied

01 Mumtaz Construction Abdul Basir 0093799361048 327.616 Km
Group Latify
02 RECOL (Kanadahar) Abdul Nasir 0093772266000 542 Km
Latify
03 AFCO M. Shafi 84.569Km
Khaliqy
04 DACCAR 173.22Km
05 RECOL Aybak Project Haji Abdul 79 km
Nasir
06 RECOL Charikar Project Haji Abdul 25 km
Nasir
07 RECOL Khawja Rawash Haji Abdul 30km
Project Nasir
08 RECOL Barik Abb Haji Abdul 20km
Project Nasir
09 UNICEF 6.00Km
10 MRRD (Ministry of Rural 1.350Km
& Rehabilitation
Development)
11 The Grand International 2.540Km
12 PPI (Prime Project 40.234Km

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International)
13 Emroz Construction Sayed Izazullah 0786005515 57.960Km
14 Imtiaz Group 7.928Km
15 Contrack International 119.21Km
16 OCC (Omran 0.2Km
Construction Company)
17 3D Dry Desert 7.928Km
Engineering
18 BBC (Bonyan Beton 0776192630 16.65Km
Construction
19 MEW (Ministry of 88.953Km
Electric and Water)
20 Piefer (Balkh Project) 5.00 Km
21 Aab Pashan Mr. Tahir 0700277461 115.89 Km
22 Gulistan Bostan Eng. Salim 24.87 Km
23 RCC Gardiz Project Eng Rasikh 77.3 Km
24 RCC Laghman Project Eng Rasikh 75 km
25 RCC Maimana Project Eng Rasikh 67.9 km
26 RCC Takhar Project Eng Rasikh 70 km
27 SWC Kabul Airport Eng Fahim 2 km
28 SWC Gardiz Eng Fahim 2.5 km

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HSP Factory:

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HSP Laboratory (Galaxy Standard Laboratory):

For more details please see our website : www.highstandardpipes.com

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Certificates:

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Certificate from Hydroseal Canada

Certificate of Compliance

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Balance Sheet for Last three years:

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