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2. International
Finance

3. Group Members
Komal Sarfraz
S2F14MCOM0005
Ambreen Nazeer
S2F14MCOM0012

4. Project
This project is about to make
investment in International market, So
we want to see which sector makes our
investment profitable. We will calculate
net present value of three cement
companies of dubai and decide whether
to invest or not. Cash flows are founded
from sales projection and exchange rate
is taken from net.

5. Selected Companies
• Jebel Ali Cement
• Black rock Cement UAE
• National Cement Company

6. Introduction of Jebel Ali
cement
We are leading manufacturer and supplier of cement, based in Dubai
Arab Emirates. Our products provide strength and durability to the
booming construction industry and help facilitate the rapid growth and
economy of the region. Jebel Ali cement represents high quality,
dependability and technical excellence.We are commited to providing
products and services of the highest international standards based on
global expertise, trust and professionalism .
At Jebel Ali cement, we consistently maintain our high standards in a
highly competitive market by engaging professionals who are the best
in their respective fields by improving processes, introducing new
products , fostering long term relationships with both our personnel as
well as our clients and always delivering on our promises.

7. Mission Statement
To deliver high quality to our customers at
competitive prices, while maintaining strong
relations with them through all times.
Vision Statement
At jebel ali cement, we are focused on
achieving a leading industry position through
our long term commitment to supply
consistently superior quality products and
services based on global expertise, trust,
professionalism and respect for our
environment.

8. Our Values
Values are how any company will value its
stakeholders , its staffs, its customers, its suppliers
and its environment
Each and every member of the company needs to
understands these values and apply them in the
daily operations.

9. Sales of Jebel Ali Cement
2010 4902396
2011 5788302
2012 11523050
2013 15967900
2014 17532277
2015 18642358

10. Annual Growth rate of Jebel Ali
2011 18.07%
2012 99.07%
2013 38.57%
2014 9.80%
2015 6.33%

11. Average Growth rate of Jebel
Ali
18.07%+99.7%+38.57%+9.80&+6.33%/ 5
=34.368%

12. Sales for next years of Jebel
Ali
2016 25055329.2
2017 33674362.4
2018 45258343.1
2019 60827213.1
2020 81751774.4

13. Cost of sales for Jebel Ali
2010 3292871
2011 3919540
2012 8454600
2013 10887427
2014 11448142
2015 11615261

14. Annual Growth rate of CGS
2011 19.03%
2012 115.7%
2013 28.78%
2014 4.90%
2015 1.46%

15. Average Growth rate of CGS
19.03%+115.7%+28.78%+4.90%+1.4
6%/ 5
=33.97%

16. Cost of sales for next years
2016 15560965.2
2017 20847025.1
2018 2792875.5
2019 37416149.1
2020 50126428.4

17. Cash flows of Jebel Ali
2016 9494364
2017 12827337.3
2018 17329583.6
2019 23411054
2020 31625346

18. Calculation of NPV
2015 2016 2017 2018 2019 2020
Initial
Investme
nt
1379815 - - - - -
Cash
flows
- 9494364 12827337.
3
17329583
.6
23411054 31625346
Exchange
rate
- 28.15 28.15 28.15 28.15 28.15
Translate
d amount
- 337277.6 455678.1 615615.8 831653.8 1123458.
1
Discount
Rate
- 14.76% 14.76% 14.76% 14.76% 14.76%
Discount
factor
- 114.76/10
0 =1.1476
(1.1476)2
=1.3169
(1.1476)3
=1.5114
(1.1476)4 (1.1476)5
Present
value
- 293898.2 346023.3 407314.9 479477.5 564409.9

19. Continued…
NPV= PV- Initial Investment
= 2091123.8 – 1379815
= 711308.8

20. Introduction of Black rock
Cement
Black Rock Cement FZC is a cement trading company based
in the United Arab Emirates. It specializes in supplying
cement, white cement and clinker to Sub-Saharan Africa.
The company's Black Rock brand cement is manufactured
under licence by a leading cement company in Pakistan.The
product is a high-end variant and attracts a premium in the
retail market.The cement conforms and exceeds the
European, British, ASTM and South African standards in it's
class.
The main products supplied by Black Rock are Ordinary
Portland Cement 42.5 N, White Portland Cement and clinker.
-

21. To be the preferred supply chain partner to cement
and construction companies in Africa.
Mission Statement
Vision Statement
Helping build Africa in our own small way.

22. Sales of Black Rock Cement
2010 2198443
2011 2220360
2012 2930152
2013 2361192
2014 2182327

23. Annual Growth Rate of Black
rock cement
2011 0.996%
2012 31.97%
2013 -19.42%
2014 -7.58%

24. Average Growth rate of Black
rock cement
0.996%+31.97%+(-19.42)%+(-
7.58)% / 4
= 1.4915%

25. Cost of Sales of Black rock
Cement
2010 2131027
2011 2278304
2012 2633210
2013 1875679
2014 1500312

26. Annual Growth Rate of CGS
2011 6.91%
2012 15.6%
2013 28.8%
2014 -20.01%

27. Average Growth Rate of CGS
6.91%+15.6%+28.8%+ (-20.01)%/4
= 7.825%

28. Calculation of NPV
2014 2015 2016 2017 2018 2019
I.investm
ent
2000000
0
- - - - -
Cashflow
s
- 597057.3 503385.8 400287.6 286993.3 162672.9
6
Exchange
rate
- 28.25 28.15 28.15 28.15 28.15
Translate
d amount
- 21209.9 17882.27 14219.81 10195.14 5778.791
Discount
rate
- 15.21% 15.21% 15.21% 15.21% 15.21%
Discount
facror
- 115.21/10
0 =1.1521
(1.1521)2
=1.3273
(1.521)3
=1.5292
(1.1521)4
=1.7618
(1.1521)5
=2.0298
Present
value
- 21118409
7.7
32213472.
67
22929878
.6
25578617.
7
4322846.
96

29. Continued…
NPV = PV- Initial Investment
= 156228973.6 – 20000000
= 136228973.6

30. The company was established in 1968 under
the guidance of the late ruler of Dubai
H.H.Sheikh Rashid. It was his vision to create
new avenues for industry using local resources
and local raw materials.Accordingly ,National
Cement was set up to produce the base
material to fuel the anticipated construction
boom in the UAE and the region.
NationalCement primarily servers the UAE
and GCC markets with an array of branded
cement products.
Overview of National Cement Co.

31. Mission Statement
To supply products that are leaders in Quality,
Cost and Customer Satisfaction through the
integration of people, technology and systems.
Vision Statement
To become the Leader Industrial Group in the
region by being the front runner in all sector we
operate in and position in the enterprise
competitively in the dynamic Global Business
Environment.

32. Sales of National Cement Co.
2010 2902684
2011 3304272
2012 4342634
2013 4588064
2014 4723814

33. Annual Growth Rate of Sales
2011 13.84%
2012 31.42%
2013 5.651%
2014 2.96%

34. Average Growth Rate of Sales
13.84%+31.42%+5.65%+2.96%/ 4
= 13.47%

35. Sales for next years
2015 5360111.7
2016 6082118.7
2017 6901380.1
2018 7830995.9
2019 8885831.0

36. Cost of Sales of National
Cement Co.
2010 2549953
2011 2698348
2012 3376972
2013 3533514
2014 3646595

37. Annual Growth Rate of CGS
2011 5.82%
2012 25.15%
2013 4.64%
2014 3.20%

38. Average Growth Rate
5.82%+25.15%+4.64%+3.20% / 4
= 9.7025%

39. Cost of Sales for next years
2015 4000405.8
2016 4388545.2
2017 4814343.8
2018 5281455.5
2019 5793888.7

40. Calculation of NPV
2010 2011 2012 2013 2014 2015
I. Invest
ment
108224.2 - - - - -
Cash
flows
- 1359705.
9
1693573.
5
2087036.
3
2549540.
4
3091942.
3
Exchange
rate
- 28.15 28.15 28.15 28.15 28.15
Translate
d amount
- 48302.16 60162.5 74139.8 90569.8 109838.1
Discount
rate
- 51.73% 51.73% 51.73% 51.73% 51.73%
Discount
factor
- 1.52 2.3104 3.51 5.34 8.11
Present
value
- 31777.7 26039.9 21122.5 16960.6 23543.5

41. Continued…
NPV = PV – Initial Investment
= 119444.2 – 108224.2
= 11220

42. Conclusion
Calculation of NPV is positive so
we can invest in Dubai and
introduce a new cement
industry and we can earn profit
in future.