The document analyzes Pakistan's cement industry. It discusses the history and types of cement. The cement industry in Pakistan has 29 firms with a total production capacity of around 42 million tons annually. The industry faces challenges like increased energy costs, taxes, and decreased demand. However, the industry remains important for employment and economic development. The document calls for measures like tax reductions, alternative energy sources, and increased per capita cement consumption.

1. Analysis of Pakistan industries
Sir Afaq Ali khan
Amber Afshan
FA10-BB-0002
Sahrish Darjat
SP10-BB-0066

3. Contents
Cement
Cement Industry
Analysis of Cement Industry
Consumption
SWOT Analysis

4. Cement

5. Cement is a fine, soft, powdery-type substance
It is made from a mixture of elements such as limestone,
clay, sand and/or shale
Cement is usually gray. White cement can also be found
but it is usually more expensive than gray cement.
Cement mixed with water, sand and gravel, forms
concrete.
Cement mixed with water and sand, forms cement
plaster.
Cement mixed with water, lime and sand, forms mortar.
One kilo (2.2 lbs) contains over 300 billion grains,
www.buildeaza.com/newplans/eazylist/cement.html

6. History of cement

7. Cement-like products were used in Greek and Roman
structures over 2000 years ago
In 1756, British engineer, John Smeaton made the first
modern concrete (hydraulic cement) by adding
pebbles as a coarse aggregate and mixing powered
brick into the cement.
In 1824, English inventor, Joseph Aspdin invented
Portland Cement, which has remained the dominant
cement used in concrete production
Reinforced concrete was invented (1849) by Joseph
Monier, who received a patent in 1867.
http://inventors.about.com/library/inventors/blconcrete.htm

8. Classification of
cement

9. 1. Puzzolantic
cement
2. Nature
cement
3. Portland
cement
Report

10. It consists of a mixture of silicates of calcium and
aluminum
It shows the hydraulic properties when it is
in the form of powder and being mixed with
suitable proportion of lime.
The rate of hardening is much slower and
the comprehensive strength developed is about
half of Portland cement.
It is found mere resistant to the chemical action
than others.

11. This is nature occurring material.
It is obtained from cement rocks.
These cement rocks are 1aying limestone’s containing
silicates and aluminates of calcium.
The selling property of this cement is more than the
Portland cement but the comprehensive is half of it.

12. 1. Ordinary Portland cement
2. Rapid hardening Portland cement
3. Low head cement
4. White colored cement.
5. Water proof Portland cement.
6. Portland Slang Cement.
7. Portland puzzling cement.
8. Sulphate resisting cement

13. Types of cement

14. Ordinary cement
Rapid heat cement
Low heat cement
Portland blast furnace cement
High alumina cement
Expanding cement
Quick setting cement
Air & trading cement
Hydrophobic cement
White cement
http://uk.answers.yahoo.com/question/ind

15. Cement
Industry

16. Cement Industry
The Importance of Cement Industry
Barometer of economic activity
Vital for socio-economic development
Production Capacity
Production of approximately 41.235 million tons (June
2011 - APCMA)
Location of Cement Industry
Near/Within Mountainous Regions
Northern and Southern Region

17. Pakistan had inherited 4 cement plants with a total
capacity of 0.5 million tons in 1947.
Currently total 29 firms
Northern region ( 19 units )
80 percent share in total cement
Production capacity of approx 35 million tons. (APCMA)
Southern region ( 10 units )
20 percent share in the annual cement sales
production capacity of approx 6 million tons. (APCMA)

18. Province Units Capacity
(Million Tons)
Percentage %
North Zone 19 35,713,500 80 %
South Zone 10 6,970,500 20 %

19. Pakistan cement industry exports cement to the
neighboring countries like
Afghanistan ,
India etc.
The industry has achieved 8.535 million tons of
exports this fiscal year July 2010 to June 2011. (APCMA).
Per capita consumption is about 131 kg per person
annually, world average is of 270 kg.
Provides jobs to more than 150,000 persons directly or
indirectly. (DAWN news article March 14 2011 Opportunities missed)

20. Cement in Pakistan

21. 1. Ordinary Portland
cement.
4. White Cement.
2. Portland Blast
Furnace Slag
Cement.
3. Sulphate Resisting
Cement.

22. Ordinary Portland cement is available in darker shade as
well as in light shades in Polypropylene bags of dfferent
sizes with different brand names to suit the requirement
of users.
It is used in all general constructions especially in major
prestigious projects where cement is to meet stringent
quality requirements; it can be used in concrete mortars
and grouts etc. Ordinary Portland cement is
compatible/consumable with admixture/ retarders etc.

23. Sulphate resistant Cement’s best quality is to provide
effective and long lasting strength against sulphate
attacks and is very suitable for constructions near sea
shores as well as for canals linings. It provides very
effective protection against alkali attacks.

24. Slag cement, has been incorporated into concrete
projects for over a century to improve durability and
reduce life cycle costs. Among its measurable benefits
in concrete are better workability and finish ability,
higher compressive and flexural strengths, and
improved resistance to aggressive chemicals

25. White portland cement has essentially the same
properties as gray cement, except for color, which is a
very important quality control issue in the industry. It
is readily available throughout North America.

26. Material used in making
cement

27. The following raw material is required in the production
process which are frequently available in Pakistan.
Lime stone
Clay
Iron Ore
Gypsum
Furnace oil or Coal

28. Process

29. Shown by animation.

31. Cement
production

32. Sr.
No
Name of Unit Operational Capacity
Clinker Cement
1 Askari Cement Limited - Wah 1,050,000 1,102,500
2 Askari Cement - Nizampur 1,500,000 1,575,000
3 Bestway Cement Limited - Hattar 1,170,000 1,228,500
4 Bestway Cement Limited - Chakwal 3,428,571 3,600,000
5 Bestway-Mustehkum Cement Limited - Hattar 1,035,000 1,086,750
6 Cherat Cement Company Limited-Nowshera 1,000,000 1,050,000
7 Dandot Cement Limited - Jehlum 480,000 504,000
8 Dewan Hattar Cement Limited - Hattar 1,080,000 1,134,000
9 D.G.Khan Cement Limited - D.G.Khan 2,010,000 2,110,500
10 D.G.Khan Cement Limited - Chakwal 2,010,000 2,110,500
11 Fauji Cement Company Limited - Fateh Jang 1,110,000 1,165,500
12 Fecto Cement Limited - Sangjani 780,000 819,000

33. Sr.
No
Name of Unit Operational Capacity
Clinker Cement
13 Flying Cement Limited - Lilla 1,140,000 1,197,000
14 GharibWal Cement Limited - Jehlum 2,550,000 2,677,500
15 Kohat Cement Company Limited - Kohat 2,550,000 2,677,500
16 Lucky Cement Limited - Pezu 3,725,714 3,912,000
17
Maple Leaf Cement Factory Limited -
Daudkhel 3,510,000 3,685,500
18
Lafarge Pakistan Cement Company
Limited - Chakwal 1,950,000 2,047,500
19 Pioneer Cement Limited - Khushab 1,933,571 2,030,250
Sub Total (North) 34,012,857 35,713,500

34. Sr.
No
Name of Unit Operational Capacity
Clinker Cement
1 Al-Abbas Cement Limited - Nooriabad,
Dadu 450,000 472,500
2 Attock Cement Pakistan Limited - Hub
Chowki, Lasbela 1,710,000 1,795,500
3 Dewan Cement Limited - Dhabeji
750,000 787,500
4 Lucky Cement Limited, - Indus Highway,
Karachi 3,428,571 3,600,000
5 Thatta Cement Limited - Thatta 300,000 315,000
Sub Total (South) 6,638,571 6,970,500
Grand Total (North + South)
Clinker : 40,651,428 Cement : 42,684,000

35. Projected
2011-2012
Clinker
42,811,428
Cement
44,952,000

36. http://www.apcma.com
June to July Production
capacity
% increase
2000-2001 15.534 -5.16%
2001-2002 15.723 1.22%
2002-2003 16.321 3.81%
2003-2004 16.936 3.77%
2004-2005 17.909 5.75%
2005-2006 20.955 17.01%
2006-2007 30.251 44.36%
2007-2008 37.157 22.83%
2008-2009 41.760 12.39%
2009-2010 44.682 7.00%
2010-2011
(11 months)
41.435 -7.71%

37. Consumption

38.  Pakistan has a per capita consumption of 131 kg of
cement
Consumption continues to show a negative trend

39. Domestic
Market

40. 2009-2010
Months Total
July 1,755,679
August 1,998,842
September 1,753,362
October 1,919,098
November 1,711,413
December 1,883,609
January 2,274,218
February 1,777,564
March 2,309,936
April 1,992,127
May 2,083,796
June -
Total 21,459,644
2010-2011
Months Total Growth
July 1,749,849 -0.33%
August 1,489,244 -25.49%
September 1,378,524 -21.38%
October 1,974,387 2.88%
November 1,731,255 1.16%
December 1,785,453 -5.21%
January 1,907,353 -16.13%
February 1,778,343 0.04%
March 2,223,062 -3.76%
April 2,047,418 2.78%
May 1,879,251 -9.82%
June
Total 19,944,139 -7.06%
Growth -7.06%

41. Exports

43. Financial
Years
Cement Clinker
Total
Exports %
Incr / Dec
Export Breakup
Afganistan
via Land
India
Via Sea
and
Land
Other
Countries
Via Sea
Other
Countries
Via Sea
Noth
Zone
South
Zone
|----------------Quantity in metric Tons--------------|
Quantity in metric
Tons
2001-2002 106,620 - - - 106,620 100.00% 106,060 560
2002-2003 430,332 - - 41,500 471,822 342.53% 428,602 1,720
2003-2004 1,118,293 - - - 1,118,293 137.02% 1,088,218 30,075
2004-2005 1,407,900 - 157,270
-
1,565,170 39.96% 1,516,370 48,800
2005-2006 1,413,994 - 91,165
-
1,505,159 -3.83% 1,409,492 95,667
2006-2007 1,725,526 - 1,096,995 390,973 3,213,494 113.50% 1,929,938 1,283,556
2007-2008 2,777,826 786,672 3,045,995 1,106,127 7,716,620 140.13% 5,111,607 2,605,013
2008-2009 3,148,306 634,455 6,061,035 908,690 10,752,486 39.34% 6,989,136 3,763,351
2009-2010 4,013,671 722,967 5,637,163 283,436 10,657,235 -0.89% 6,960,854 3,696,382
2010-2011 4,725,605 589,506 3,910,169 185,896 9,411,175 -11.69% 6,687,347 2,723,828

44. Reasons of decline in Cement Sales
 Corrupted Tax system
1. High Tax.
2. Unsupervised clearance system.
 Increasing Energy costs.
1. Cost of production
2. Freight Charges
 Discouraged Export by Sea
1. Low export rates.
2. Competitive forces rising.

45. AVERAGE CEMENT PRICE
In 2005 Rs.335 5okg/bag
In 2006 Rs. 430 50kg/bag.
In 2007 Rs. 315 50kg/bag.
In 2008 Rs. 220 50kg/bag.
In 2009 Rs. 270 50 kg/bag
In 2010-11 Rs. 350 50 kg/bag

46. Swot analysis of cement
industry

47. Strength

48. • Generating employment
Cement industry is generating 150,000 person’s
employment directly or indirectly.
• Geographical location.
• Abundance of raw materials required.

49. Weakness

50. Increased Energy costs
Increased freight charges
High inland as well as charges for exporting
through truck, sea and railway.
Increased Taxes

51. Opportunities

52. Construction of mega dams.
Construction in neighboring countries.
 Geographical location.

53. Threats

54. Law and order situation in the country.
Decrease Profitability due to competition in
industry
High Level of Taxation
Government evasion on freight equalization
subsidy.

55. Budget 2011-2012

56. Fiscal 2011 was a year to forget for cement
manufacturers as sales and profits plummeted,
according to Invest Cap.
Expected budgetary measures
Outlook and recommendation

57. Conclusion

58. Growth of Cement Industry leads to
Further growth of 40 more industries
Increased construction activities
More employment
Growth of Cement Industry is hindered by
High Energy costs
Lack of proper management and supervision
Evasion of Government to fulfill it duties

59. Recommendations

60. Reduction in tax rates
Dealing with high energy costs
Identify alternate energy sources.
 Increase in per capita consumption
Since construction is a sector that can provide
lot of employment opportunities to both
skilled and un-skilled labor.
Supervised Industrial Activities.
Freight charges reduced by proposing a industrial
mechanism based on timing.

61.  http://www.oppapers.com/essays/Pakistan-Cement-Industry/304388
 http://www.cement.com.pk/cement-services/spares-for-cement-
plant/casting.html
 http://www.scribd.com/doc/46480216/final-ppt
 http://www.managementparadise.com/forums/managerial-
economics/48093-ppt-cement-industry.html
 http://pakistan360degrees.contentcreatorz.com/cement-industry-of-
pakistan/
 http://www.pakistantoday.com.pk/2011/07/apcma-highlights-cement-
industry-problems/
 http://tribune.com.pk/story/176501/budget-2011-12-whats-in-store-for-the-
cement-sector/
 http://www.scribd.com/doc/55574822/Cement-Industry-of-Pakistan-An-
Insight