GROUP MEMBERS:

Anosha Zaeem Butt

Anum Soomro
Hiba Javed
Ayesha Malik
“Cement industry is one of the most prominent and
energetic organization having operations and
interactions in Pakistan”
Cement industry is a highly important segment of industrial sector that
plays a pivotal role in the socio-economic development
• In 1947, Pakistan has inherited 4 cement plants with a total capacity of 0.5
millions tons.
• In 1956 two more plants were installed by the Pakistan Industrial Development
Corporation in Hyderabad city and Daudkel.
• Some expansion took place in 1956-66 due to shortage of cement in the country.
cement was imports of cement in1976-77 and continued to do so till 1994-95.
• The industry was privatized in 1990 which led to setting up of new plants.
Pakistan cement industry is fulfilling local market and also is exporting cement to
neighborhood countries including Russia, Iraq, Sri Lanka, India, Afghanistan and
united Arab emirates.
• At present, Pakistan is also exporting cement to some African countries
• Over 20 cement plants are operational in Pakistan, having production level of
9.5 million tones approximately.
• Government sector has 5 cement plants while private sector has 24 plants which
reflects that private sector is heavily investing in cement industry.
• Pakistan has consumption of 135 kg per person annually while world average
is around 270kg
• Pakistan was ranked 5 in the world to export cement to the neighboring
countries.
• Cement industry is divided into two broad region; the northern region and the
southern region.
• Askari Cement Ltd • Lucky Cement (Karachi)
• Bestway Cement-I • Maple Leaf Cement
• Cherat Cement • Mustehkam Cement
• Dandot Cement Limited • Pakistan Cement
• Dewan Cement Limited • Pioneer Cement
• D.G. Khan Cement (KK) • Bestway Cement Chakwal-II
• D.G. Khan Cement-II • Askari Cement Ltd. (Nazimpur)
• Fauji Cement Company
• Flying Cement Limited Fecto Cement
• Gharibwal Cement Limited
• Kohat Cement Company Limited
• A.C. Rohri Cement Limited
• Al-Abbas Cement Limited
• Attock Cement
• Dadabhoy Cement Limited
• Javedan Cement Limited
• Pakistan Slag Cement Limited
• Thatta Cement Limited
• Zeal Pak Cement Limited
• Lucky Cement (pezu)
• Bestway Cement (Chakwal)
NAME OF FIRM MARKET SHARE %

Lucky Cement 16 %

DG Cement 13 %

Bestway Cement 12 %

Askari 12 %

Maple Leaf 07 %

Fauji Cement 06 %

others 34 %
June to July Production capacity Capacity utilization
MN. Tones %
2010-11 42.50 73.95 %
2011-12 44.77 72.63%
2012-13 44.77 74.67%
2013-14 44.64 76.79 %
2014-15 45.62 75.08
June to July Domestic Exports Domestic Surplus
consumptio plus Export capacity
n
MN. Tones MN. MN. Tones
Tones
2010-11 22.00 9.43 31.43 10.94
2011-12 23.95 8.57 32.51 12.13
2012-13 25.06 8.37 33.43 11.21
2013-14 26.15 8.14 34.28 10.36
2014-15 20.3 5.44 25.78 8.44
 Operational
Sr. No. Name Of Unit
Capacity
Cement
1 Askari Cement Limited - Wah 1,102,500
2 Al-Abbas Cement Limited - Nooriabad, Dadu 945,000
3 Askari Cement - Nizampur 1,575,000
4 Attock Cement Pakistan - Hub Chowki, Lasbela 1,795,500
5 Bestway Cement Limited - Hattar 1,228,500
6 Bestway Cement Limited - Chakwal 3,600,000
7 Bestway - Mustehkum Cement Limited - Hattar 1,086,750
8 Cherat Cement Company Limited-Nowshera 1,102,500
9 Dandot Cement Limited - Jehlum 504,000
10 Dewan Hattar Cement Limited - Hattar 1,134,000
11 Dewan Hattar Cement Limited - Dhabeji 1,764,000
12 D.G.Khan Cement Limited - D.G.Khan 2,110,500
13 D.G.Khan Cement Limited - Chakwal 2,110,500
14 Fauji Cement Company Limited - Fateh Jang 3,433,500
15 Fecto Cement Limited - Sangjani 819,000
16 Flying Cement Limited - Lilla 1,197,000
17 GharibWal Cement Limited - Jehlum 2,110,500
18 Kohat Cement Company Limited - Kohat 2,677,500
Lafarge Pakistan Cement Company Limited -
19 2,047,500
Chakwal
20 Lucky Cement Limited - Pezu 3,786,000
21 Lucky Cement Limited - Indus Highway, Karachi 3,600,000
22 Maple Leaf Cement Factory Limited - Daudkhel 3,370,500
23 Pioneer Cement Limited - Khushab 2,030,250
24 Thatta Cement Limited - Thatta 488,250
Total 45,618,750
 |------------------Cement-----------------| Export Breakup
India Other
Financial Afghanistan Total %age North South
Via Sea & Countries
Years Via Land Exports Incr/(Decr) Zone Zone
Land Via Sea
|-----Quantity in Metric
Tons-----|
2010-2011 4,726,996 590,104 3,910,675 9,427,943 -11.47% 6,688,655 2,739,284

2011-2012 4,715,109 605,453 3,247,268 8,567,830 -9.12% 6,266,327 2,301,503

2012-2013 4,404,633 482,214 3,487,255 8,374,103 -2.26% 6,105,815 2,268,288

2013-2014 3,655,201 677,305 3,804,021 8,136,528 -3.37% 5,418,214 2,718,314

2014-2015
2,068,668 501,005 2,872,045 5,441,717 -9.58% 3,305,646 2,136,071
(9 Month)
• No economies of scale
• Oligopolistic competition among firms
• Attractive mergers and acquisition
• Strong demand and supply forces
• Weak or no substitute for cement
• Venture capitalist firm
• Less entry barriers
• Industry in boom
• High growth chance
• Little product differentiation
• Lucky cement limited was founded in 1996 by Tabba Memons.
• The company initially started with factories in the Pezu district of the north west
frontier province (N.W.F.P). It now, also, owns a factory in Karachi.
• Lucky cement limited (LCL) is one of the largest producer and leading exporter of
quality cement in Pakistan
• The production capacity of 7.75 million tons per annum.
• The company is listed on Karachi, Lahore, Islamabad and London stock exchanges.
• Lucky cement is Pakistan's first company to export sizeable quantities of loose cement
being the only cement manufacturer to have its own loading and storage terminal at
Karachi port.
• Lucky cement limited has been sponsored by one of the largest business groups in
Pakistan, the Yunus brothers group based in Karachi.
• Lucky cement has a network of over 200 dealers which enables it to dominate the local
market
We envision being the leader of the cement industry in Pakistan, identifying
and capitalizing on new opportunities in the global market, contributing
towards industrial progress and sustainable future, while being responsible
corporate citizens.

Our mission is to be a premium cement manufacturer by building a

professional organization, having state-of-the-art technology, identifying new
prospects to reach globally and maintain service and quality standards to
cater to the international construction needs with an environment-friendly
approach.
• State cement corporation of Pakistan (S. C. C. P) was established in 1984.
• In 1977 demand is 3.7 m tons while the production is 3.1 m tons.
• Main purpose of establishment is to fulfill the demand of northern marketing
zone. Selected a place D. G. Khan.
• The location is ideal because it is near to market as well as prior to raw material.
• In 1992 SCCP was privatized and purchased by Nishat group of industries.
• Its name changed from SCCP to d. G. Khan cement factory.
• The new plant is the relief for Bhawalpur, Khanewal,muzafargurh, Bhawalnagar,
And Vehari.
• Its design capacity of 3300 ton clinker per day.
• DGKCC has three cement plants, two plants located at Dera Ghazi Khan and one
at Khairpur dist.. Chakwal
 To transform the Company into a modern and dynamic cement manufacturing
company with qualified professionals and fully equipped to play a meaningful role
on sustainable basis in the economy of Pakistan.

To provide quality products to customers and explore new markets to

promote/expand sales of the Company through good governance and foster a
sound and dynamic team, so as to achieve optimum prices of products of the
Company for sustainable and equitable growth and prosperity of the Company
Strengths:
• Financial leverage
• Brand name
• Economies of scale
• Size advantage
• High quality
• Strong supply chain
• Unique product
Weakness:
• Low advertising
• Less exposure
• Increasing expenses
• High transportation cost
Strengths:
• Own power generation
• Cost efficient projects
• Certified for ISO-9002, ISO 14001
• Strong management
• Worldwide distribution
• Brand name
• Customer loyalty
Weakness:
• Restricted supply
• Less capital finance
Opportunities:
• New technology
• Upcoming building projects
• Less freight charges
• New market
• Expansion
Threats:
• Alliances opposition
• Government rules and regulation
• Bad economy
• Qualitative factors
• Availability substitute
Opportunities:
• Online market
• New technology
• Expansion internationally
• Emerging markets
Threats:
• Bad economy
• High prices of coal, gas and electricity
• Government policies
• International competition
• Political risk
• Volatile currencies
 INTENSITY OF EXISTING RIVALRY
• Low storage costs • Working on expansion projects
• Fast industry growth • Well-built position
• Large industry size
• Few competitors
• Government policies and regulations

BARGAINING POWER OF SUPPLIERS

• Large number of substitute inputs
• Volume is critical to suppliers
• Low concentration of suppliers
• Inputs have little impact on costs
• Critical production inputs are similar
• Raw material for cement manufacturing is
available in abundance
• Option to use coal or gas as A fuel
 THREAT OF SUBSTITUTES

• Limited number of substitutes • No other substitute of cement.

• Substitute product is inferior
• High cost of switching to substitutes

BARGAINING POWER OF BUYERS

• Bargaining power of customers is very low in this industry because the price
results out of demand and they are helpless to exert pressure on the cement
manufacturers
 THREAT OF NEW ENTRANTS

• Strong brand loyalty and well-

• High preliminary expenses
established distribution networks.
Forces Lucky DG Khan
Cement Cement
Rivalry High Moderate
Suppliers High Low
Substitute Positive Positive
Buyers Low Low
Competitors Positive Positive