The accomplishment of this project was possible only due to the cooperation,
coordination and united efforts of different individuals, several sources of material,
knowledge and time. First of all we want to thank our kind teacher who gave us an
opportunity to groom ourselves. We want to thank the official member who gave
us all the required information.
We are very grateful to the officials of Askari Cement for their guidance,
encouragement and Kind Cooperation.
The moving spirit behind this project was all of them, without their constant
encouragement and support this project would not have been a successful outcome.
However, the team work of the members is another key point of the completion of
This project was assigned to us by Mr. Faheem Haqqani. We start the work on the
project in group. This project has been done in spirit of team work in the group.
The tasks were assigned to each member and all have done their work very well up
to their maximum.
The basic theme with which our group went for this project was to apply the stuff
which we learned from the teacher in the class. We have selected Askari Cement to
work on so that we may apply our own knowledge which we got from the subject
Marketing and we may get proper utilization of the opportunity given to us by
teacher for getting exposure about the subject. We learned the practicle
implementations of the topics we studied in the lecture. As Askari Cement is an
significant twig of Cement Industry of Pakistan. There were very less data
available for the selected company on the Web. To get the information about this
company we directly consulted the high officials of the company. Going with this
theme, really gave us good exposure.
Our theme guided us to go mostly for Brain storming. However, along with this we
got a lot of material from the internet. We studied different links and researches
from Web. We went through the reports and project slides of the other companies
working in same business. Our group members also went to the market to know the
trends cement industry.
Askari Cement is product of AWT with two factories Askari Cement Ltd Wah and
Askari Cement Nizampur. Askari Cement Ltd,Wahis successor of Associated
Cement Company. It is the first cement plant in the area now constituting Pakistan.
The first plant was set up by famous Bombay based Indian company (Associated
Cement company) in 1921 with rated capacity of 120 tons per day. First major
expansion was made in 1936 when a kiln of the capacity of 250 tons per day was
added followed by enhancement by 300 tons per day in 1950. In 1970 another kiln
of 600 tons daily was erected. In 1972 the company was nationalized and put under
control of State Cement Corporation of Pakistan in 1974. In 1991 name of the plant
was changed to Wah Cement Company. In 1994 the whole old structure and
machinery was scrapped prior to start the latest state of the art - FLS Dry Process
Plant which was privatized by the Govt. of Pakistan and acquired by Army
Welfare trust (AWT) in 1996
ASKARI CEMENT LTD., WAH
After acquisition of the FLS Dry process Plant, AWT changed name of the brand
to Askari Cement. The plant installed in 1994 is the latest 3000 tons per day single
production line designed by FL Smidth of Denmark and M/s Holder Bank
Consultants of Switzerland-two renowned names of the Cement world. The
capacity of the plant has been enhanced by another 500 tons per day, by which the
capacity comes to 3500 tons per day w.e.fjan 2006. Askari Cement has the credit
of being the first in the cement industry to get ISO 9001, and now the first to get
the ISO-14001 Environment Friendly Standards Certification in Pakistan.
ASKARI CEMENT NIZAMPUR
The plant has been installed by Army Welfare Trust. Construction of the Plant was
started in 1993. Its first line of the capacity of 2000 tons per day was completed
and it started production in 1996. Erection/installation of second line also of the
capacity 2000 tons per day was started in 1997, commercial production started
with effect from 1st July 2003. The plant was designed by M/s Tianjin Cement
Design & Research institute, China and was supplied by M/s China Building
Material Industrial Corporation (CBMC) and local Machinery was manufactured
by Heavy Mechanical Complex (HMC) Taxila, Pakistan.Total Capacity of the
plant has been enhanced by another 1000 tons per day, by which the capacity
comes to 5000 tons per day w.e.f. February 2006.
ASKARI CEMENT MARKETING
It is a setup, established to manage the market of the Askari cement. The selling of
the product of both the industrial units of Askari Cement is done through this
All the orders are placed with this Askari Marketing to regulate the supply of the
cement. It decides whether order is to be delivered from the Nizampur or from
Wah factory. The option is also available with the clientele.
To transform Askari Cement Marketing into model Cement Marketing Unit as part
of worldwide construction activities. Strive hard for optimizing and expanding
business in terms of “Brand Image, Business Growth and Increased Revenues”.
Manage and operate Askari Cement Marketing in a manner that it achieves
continuous growth and profitability, without any risk for customers or employees,
with a view to achieving a status of “Best Marketing Unit” in the Cement Industry.
Marketing Strategy of Askari Cement
The main focus of Askari cement is not mainly on the general public for sales, but
they mainly focus the big projects (government and private sector) and exporting
their product to other countries.
Products of Askari Cement
Strenght of the Cement:Gains highest strength of 9000 PSI and more against 5950 PSI required by British
Standards. The fineness around 2900-3000 cm sq/gm against 2250 cm sq/gm under
British Standards also contributes to the strength
They claim: Customer satisfaction through prompt professional response is our
Customer of MicroTech Engineering Services:
Askari cement is the worthy customer of the MicroTech
Pakistan. This company tends to provide value solutions by
managing projects to ensure success, safety, craftsmanship
and value, while generating opportunities through long-term
The Askari Cement has made strategy to keep its cost in a way which is not
standing equivalent to their manufacturing price. Instead they charge little more
than their competitors. Currently, they are charging 445RS for 50 KG bag.
However, the average price of the same quantity bag is almost 435RS. So we can
regard it as a high price cement.
But, its price is comparatively high for the big projects. They keep the export
cement price at normal to dig up tenders.
Both the industrial units of Askari cement are situated in the north area. Talking
about their marketing strategy, they do not try to place their product in the southern
area of Pakistan. They place their product only in the Northern Sector.
The map of their target area is given as under.
Askari Cement is the largest exporting cement of pakistan. It export cement in bulk
to the other countries every year.
This cement is being exported in the following areas:
The main focus of Askari Cement is to capture the Government and Private
construction projects. They supply their product to following construction sites.
Major Customers of Askari Cement
Housing Schemes of GHQ
Power Bahria Town
Works PAF Kamra
Sat Para Dam
Authority American Embassy Kabul
Bagram Air Base
Al-Ghurair Giga Pak (Pvt) Ltd.
Provincial Assembly – KPK
Mangla Dam Raising
Moterway - M 1
Air Weapon Complex
National Defense College
New GHQ Islamabad
Availability - Area Wise:
Because of highest production capacity of two plants in the North Punjab and
NWFP, it has consistent availability throughout KPK and major parts of Punjab,
For the promotionof product in the general public, the Askari Cement does not
perform any special activity, because general domestic consumers are not their
main focus. However, they have an organization i.e., Askari Marketing, through
which their promotional campaigns are lead.
Conversely, they do certain business tricks to not lose the contract of cement
supply to the big government and private projects.
Strengths (helpful & internal)
There are 8 directors of this company. All are retired army officers. Some of
them are of Maj. General and Brigadier rank. So they got high contacts. And
it is easy for them to capture high tenders.
The product of Askari cement has gotten an image of high quality cement in
the mind of general public
They got loyalty of the customers, especially huge project heads. All the
project managers, if become their customers, they remain keen to use their
cement for their next projects also.
They are using the coal technology. They are customer of MicroTech, due to
which the technology being used in their plants is kept up to date.
Economies of scale
By producing large amount of output, this company is near to achieved the
economies of scale.
Askari cement have the size advantage because of large scale plant and huge
There is a strong supply chain which has been managed by the Askari
This business concern is not facing any problem related to finance as it got
sufficient resources to meet their financial needs.
Due to high influence in the APCA, they got reasonable power to simulate
the prices of cement.
Their directors are retired army officers. They are highly skilled and manage
the resources in effective way very efficiently.
Weakness (harmful & internal)
Though, this company providing good service to the Govt. and Private large
scale projects but it is very week regarding general public customers
Unlike other business concerns working in same business this
company do not have a proper channel based Research and
Askari cement lacks the facility of online selling of the product.
High staff turnover:
The total staff employed on the both plants is high, so they have a
problem of paying extra for the human resource.
Askari cement has a great opportunity to expand their business in
the international market. It has a two ISO certificates and good PSI
standards of qualities so it can easily sell their product to other
countries and increase foreign reserve.
Askari cement is only working in the existing market. It is a great
opportunity for them to set a new market in the country and target
the other small area in the different sites of the country for the
expansion of their business.
There is a great opportunity for the Askari group to launch their
new product in the market. There is a need of innovative work and
design a new strategies to capture the minds of people.
This company has an opportunity to explore as it has access to the new
emerging market i.e. Gilgat Baltistan, It is situated near to that area where
the industrial plant of Askari Cement installed.
In this fast world there is a need of latest technology for the
smooth and competitive working of the business. Askari group
have opportunity to import new machinery for increase their
This is also an opportunity for the Askari cement industry to
provide services with extra features. So customer will like their
services upon their product and become a loyal customer.
Without innovation no business can survive in this world. As
Askari cement is working under the Army welfare trust there is
great opportunity to them to use innovative mode of production as
they have skilled labour force and high level of educated employee
in their sector. So manager should provide a peaceful healthy
environment of innovation in their production efficiency.
Now a day, business is working on the online stations. It is the
great opportunity to them to use this mode.
Askari cement has major threat to their substitute product launch
by their competitors. They should make a certain strategy which
make different to their product from the competitor product
soAskari cement do not lose their market share from the target
Volatile revenue mean there is not stabilized income of the sale. As
Askari cement is only picking the big govt and private
construction project which are not longer provide stable earning.
After the completion of that project the Askari cement industry
could not supply their production and volatile revenue is also a
threat for the production of their product.
There is also a threat of a volatile cost. As the economy of Pakistan
is not stable so the cost of their products fluctuate ups and down
and will create a bad sign in future production.
Askari cement is working under the Army Welfare Trust so the
retired army officers have linked with the politician who are
managed this industry. Political leaders can use it for the benefit of
their own interest and the company can face a big lose due to this
It is another threat on part of Askari Cement. If Govt. implies certain
restrictions on export of cement, Askari Cement will have to face a huge
decrease in the sales volume.
Askari cement has an intense competition. There are lot of firms
providing a quality product of cement. so Askari cement should
make a certain strategy to tackle this tough situation for their
survival in future.
Askari cement has to face a perfect market in the supply of their
product. Due to perfect completion the profit margin remain low
and the company can get a reasonable profit little difficultly.
There is also a threat of an unstable currency value of rupee.
Pakistani rupee continuously losing their value. So there is
problem for the company to remain consistent in their export
Askari cement has a threat of bad economy. In Pakistan the
economy is unstable and we are bearing a high cost of production
CONCLUSION OF SWOT ANALYSES:
After observing all the factors of this company, we conclude that there
are certain weaknesses of the company are the hurdles in making Askari
cement, the market leader. To remove them, Askari Cement Marketing
setup is very important for bringing this company to the heights of
success. This setup should be given more strength. The top management
of Askari cement should now think to target the general public at large.
The selling through internet should also be started.
Analyzing the strengths and opportunities we can say that there is large
scope for this company to capture more market share. However, the
consistency in the policies and the management policies is required.