carefully analyzed the sector of cement in Pakistan

1. CEMENT
SECTOR OF
PAKISTAN
Group Members
Ali Habib
Yumna Qaiser
Hafiz nadeem
A Project for Professor Mazhar Farid

2. Introduction & History:
 The industry was nationalized in 1972.
 Cement industry is one of the few industries that
existed in Pakistan before the partition of the sub-
continent.
 Pakistan has inexhaustible reserves of limestone and
clay, which can support the industry for another 50-60
years.
 Besides producing OPC, the Pakistani cement industry
also started producing SRC, Slag cement and white
cement.
 At the time of independence in 1947 there were four
cement factories with an installed capacity of 4 Lac
tons per annum.

3. Continue..
 The cement sector contributes Rs.15-20 billion per
annum to the National Exchequer.
 The industry in Pakistan is paying Rs.90 per bag as
excise duty as compared to Indian producers who
pay only Rs.17.50 per bag.
Now the price of bag is Rs.490.
 The present demand for cement in Pakistan is around
9.5 million tons per annum.
 Pakistan is a country rich in deposits of limestone,
shale and gypsum, which are the main ingredients for
the production of cement.

4. TYPES OF CEMENTS
The five types of cement manufactured in Pakistan are:
 Ordinary Portland Cement (OPC)
 Slag Cement.
 Sulphate Resistant Cement (SRC)
 Super Sulphate Resistant Cement (SSRC)
 White Cement.
The chemical composition of cement is as under:
CaO 70%
SiO2 23%
Al2O3 04%
FE2O4 03%

5. MANUFACTURING PROCESS
The manufacturing process can be of any of the 3 types:
 Wet Process; an obsolete method of manufacturing due to
poor kiln heating and large water requirements.
 Semi-Wet Process; not popular due to high levels of fuel
and energy consumption and suited for materials with
extreme elasticity. Quite obsolete.
 Dry Process; suitable for materials with low moisture
content. Low fuel usage as compared to the wet process,
less maintenance requirements, higher kiln efficiency due
to pre- heating facility and low kiln setup and maintenance
costs.

6. Revenue of Cement Sector
Pakistan cement sector continued
to deliver double profitability
growth as it grows by 13% to
Rs.46.6 Billion in the fiscal year
ended June 30,2016.

7. ALL PAKISTAN CEMENT
MANUFACTURER
ASSOCIATION
APCMA is the apex body of the cement
manufacturers of Pakistan. It is registered body
under section 3 of the Trade Organization
Ordinance 2007 wide license no 14, dated April
26, 2008 issued by Ministry of Commence. It
was incorporated on14th of September 1992
under section 32 of the Companies Ordinance
1984.

8. S.
No.
Name of Executive
Committee Member
Designation
in APCMA
Executive
Committee
Representing Unit
1 Mr. Sayeed Tariq Saigol Chairman Maple Leaf Cement Factory Limited
2 Mr. Fareed Noor Ali Fazal
Senior Vice
Chairman
D.G. Khan Cement Limited
3 Mr. Babar Bashir Nawaz Vice Chairman Attock Cement Pakistan Limited
4 Mr. Muhammad Ali Tabba Member Lucky Cement Limited
5 Mr. Omer Aizaz Sheikh Member Kohat Cement Company Limited
6 Mr. Azam Faruque Member Cherat Cement Company Limited
7 Mr. Muhammad Tausif Paracha Member Gharibwal Cement Limited
8
Lt. Gen. (Rtd.) Sardar Mahmood
Ali Khan
Member Fauji Cement Limited
9
Maj. Gen. (Rtd.) Ghulam
Mustafa Kausar
Member Askari Cement Limited
10 Syed Asif Shah Member Bestway Cement Limited
11 Syed Mazhar Iqbal Member Pioneer Cement Limited

9. APCMA IMPORTANCE
 APCMA plays a significant role in projecting
the cement industry to the Government and
coordinating various activities in respect of
formulation of Government policies for the
cement industry through its continuous
dialogues and interactions.
 Helps in preparation of important Government
documents concerning cement like Reports
for Five Year Plans, etc.
 Focuses infrastructural problems (Rail, Coal,
Power, etc) and suggests suitable measures
for their solution.

10. Representors of major Players
 Mr. Muhammad Ali Tuba is the member of
APMCA and he is representing the Lucky
cement company.
 Mr.Azam Farooq is the member of APMCA and
he is representing the Cherat cement company.
 General Sardar Mehmood Ali Khan is also the
member of APMCA and he is representing the
Fauji cement company.
 General Ghulam Mustafa kausar representing
Aksari cement company.

11. Total numbers of cement
industries in Pakistan
There are total 28 cement industries in
Pakistan.
The demand of the cement is now increasing at
a much slower pace then it was before, now the
supply of the cement in the market is being
controlled by the cartel of the cement makers
association (APCMA). Since its inception
APCMA is deciding upon the price of the
cement to be offered to the public.

12. At present the total installed capacity of
28 cement plants (23 private and 5
public sector) is 17.312 million tons. Of
these 8 are in Sind, 12 in Punjab, 5 in
NWFP, 2 in Baluchistan and 1 in
Islamabad. The industry has
experienced a steady growth rate of 8%,
with 9% in the North Zone and between
4.5% and 6% in the South Zone.

13. Askari Cement Limited - Wah
Askari Cement - Nizampur
Attock Cement Pakistan - Hub Chowki, Lasbela
Bestway Cement Limited - Hattar
Bestway - Farooqia Cement Limited - Hattar
Bestway Cement Limited - Chakwal
Bestway-PakCem Company Limited - Chakwal
Cherat Cement Company Limited-Nowshera
Dandot Cement Limited - Jehlum
Dewan Hattar Cement Limited - Hattar
Dewan Hattar Cement Limited - Dhabeji
D.G.Khan Cement Limited - D.G.Khan
D.G.Khan Cement Limited - Chakwal
Fauji Cement Company Limited - Fateh Jang
Fecto Cement Limited - Sangjani
Flying Cement Limited - Lilla
GharibWal Cement Limited - Jehlum
Kohat Cement Company Limited - Kohat
Lucky Cement Limited - Pezu
Lucky Cement Limited - Indus Highway, Karachi
Maple Leaf Cement Factory Limited - Daudkhel
Pioneer Cement Limited - Khushab
Power Cement Limited - Nooriabad, Dadu

14. MAJOR PLAYERS OF CEMENT
SECTOR IN PAKISTAN
 Lucky Cement Company Limited - Pezu(KPK)
 Fauji Cement Company Limited - Fateh Jang.
 Askari Cement Company – Nizampur.
 Cherat cement Company.

15. Lucky Cement Company
 This company currently has the capacity
of producing 25,000 tons per day of dry
process Cement. Lucky Cement Limited
(LCL) is one of the largest producers and
leading exporters of quality cement in
Pakistan, with a production capacity of 7.75
million tons per annum. The company is
listed on Pakistan and London Stock
Exchanges.

16. Board of Directors
 Mr. Muhammad Yunus Tabba Director
 Mr. Muhammad Ali Tabba Director
 Mr. Muhammad Sohail Tabba Director
 Mr. Jawed Yunus Tabba Director
 Mrs. Mariam Tabba Khan Director
 Mrs. Zulekha Tabba Maskatiya Director
 Mr. Muhammad Abid Ganatra Director

17. Contribution towards
Corporate social responsibility
 Lucky cement Company plans to construct a
primary school near its factory in
Pezu,Khyber-Pakhtunkhwa.
 Female Despensary at Pezu.
 Lucky Cement provided financial assistance
to Children Cancer Hospital for the smooth
running of their functions.
 Lucky welfare despensary at KPK,Pezu.

18. Fauji cement Company
 A longtime leader in the cement manufacturing industry, Fauji
Cement Company Limited, headquartered in Rawalpindi, operates
a cement plant at Jhang Bahtar, Tehsil Fateh Jang, District Attock
in the province of Punjab.
 Fauji Cement is ISO certified for its Quality & Environment
Management Systems and has won number of awards in its
category. The company was incorporated in Rawalpindi in 1992.
 Best quality production and are well maintained with annual total
production capacity of 3.43 million tons of cement.

19. Board of Directors
General Khalid Nawaz Khan, HI(M) Sitara-I-Esar
(Retd) CHAIRMAN / DIRECTOR.
 Maj Gen Muhammad Farooq Iqbal, HI(M) (Retd)
Director
 Brig Asmat Ullah Khan Niazi, SI(M) (Retd)
Director
 Mr. Parvez Inam.
Director
 Mr. Jawaid Iqbal.
Director

20. Contribution towards
Corporate social responsibility
 FCCL established a medical dispensary in
1998, where first aid to the local community is
provided free of cost.
 Relief goods worth Rs.2.2 million weighing
30 tons and Rs.11 million in cash were
donated to PM RELIEF FUND for our
distressed brothers and sisters of
earthquake October 2005.

21. Aksari Cement Company
 Aksari Cement Ltd is one of the leading
manufacturers of Cement in Pakistan. It
originated way back in 1921 and since then
has progressed very effectively and gained
the trust of millions of people around the
globe.
 Production capacity of 8,925 tons per day.

22. Board of Directors
Gen Khalid Nawaz Khan, HI (M) Sitara-i-Esar
(Retd) (Chairman).
 Mr. Qaiser Javed
 Dr. Nadeem Inayat
 Major General Muhammad Farooq Iqbal, HI (M)
(Retired)
 Major Gen Ghulam Mustafa Kausar, HI (M)
(Retired)

23. Contribution towards
Corporate social responsibility
 Aksari cement education trust (ACET) in
1994.
 This trust runs two high school for boys and
girls in which 1300 children are of their
employees as well as non-employees are also
studying

24. Cherat cement Company
 Cherat Cement Company Limited is a
Pakistan-based company, which is engaged
in manufacturing, marketing and sale of
Ordinary Portland Cement.
 Capacity to produce 13 lac tons cement per
annum
 Cherat Cement Company Ltd grew
revenues 7.83% from 6.57 billion to 7.08
billion

25. Board of Directors
Mr. Omar Faruque (Chairman)
 Mr. Akbarali Pesnani Director
 Mr. Shehryar Faruque Director
 Mr. Arif Faruque Director
 Mr. Asif Qadir Director
 Mr. Saquib H. Shirazi Director

26. Contribution towards
Corporate social responsibility
Cherat company invests in community and
welfare schemes through generous donations to
education system and free medical dispensary
for neighboring community.
 Charity
During the year the Company made a
donation of Rs.3.54 million. The main focus of
the company was on education and health.

27. TAX PARTICPATION OF
CEMENT SECTOR
 The cement sector contributes Rs.15-20 billion
per annum.
 The industry in Pakistan is paying Rs.90 per
bag as excise duty as compared to Indian
producers who pay only Rs.17.50 per bag
 The rapid escalation in excise duties has
transformed the sector to a loss making industry
from one that was earning around 35% profit
margin previously.

28. Apart from excise duty the
sector adds to the state
revenue in the form of:
Import duties on spares and parts
Excise duty on all raw materials
Provincial royalties on limestone,
gypsum etc.

29. CONTRIBUTION TOWARDS
EXPORTS
The industry in Pakistan is paying Rs.90 per bag
as excise duty as compared to Indian producers
who pay only Rs.17.50 per bag.
In the last six years, the export market has
shrunk.
whereas the industry exported about 10.98 million
tons (26% of its total production capacity) in
2008, the first five months of 2015-16 saw this
number drop to 2.56 million tons.

30. Reduction in exports was due
to two major factors:
 Prohibitively high sales tax and excise duties
(both federal and provincial) make the price of
Pakistani cement uncompetitive in the
international market and
 The drying up of traditionally thriving export
markets such as the UAE and South Africa
which have now built up their own cement
production capacities and no longer require
cement from Pakistan.

31. Market Segmentation
 The cement market in Pakistan is divided into
two zones: the North zone and the South zone.
The North zone includes Punjab, Azad Kashmir,
N.W.F.P. and the upper region of Baluchistan. The
remaining area of the Baluchistan and entire
Sindh constitute the Southern zone.
 The Northern zone has faced an under-supply
situation while the Southern zone has experienced
over-supply situation. The demand of the Northern
zone was used to be met by the production of the
Southern zone.

32. The number of plants is less
than double in the south zone
as compared to those in the
north but total production in the
latter region is nearly 3 times
that in the former area.

33. Recommendation
 There is no any research & development center in the
cement sector that could work for efficiency in
production, quality, marketability and conducting
feasibility for production of new products, optimizing
production cost and expansion of cement industry.
 The government should devise friendly policies in order
to promote and encourage the cement industry.
 Government should decrease tax rate on cement which
is comparatively higher than other cement producing
countries.

34. Continue..
 It is really very important for every industry to
adopt modern technology for improvement of its
production efficiency, so the cement industry
should adapt new and advanced technology in
order to produce best quality cement to meet the
local demand and export demands.
 The government should make railway completely
operational because it is the most reliable and
cheapest source of transportation for not only
cement industry but also for the entire industry.

35. Conclusion
 The role of cement industry in the economic
development had been very reasonable as it
contributed in the economy in terms of profit,
investment, returns to investors, taxes, assets, equities,
sales volumes and number of employees.
 However, the performance of cement industry did not
remain satisfactory on account of optimum utilization of
the total capacity of plant and the achievement of
desired level of indigenization.
 Cement industry plays a very important role in the
economic development of Pakistan.

36. REFERANCES
http://www.apcma.com/data_productioncapacity.html
http://www.ravimagazine.com/analysis-of-pakistani-cement-industry-a-report/
https://markets.ft.com/data/equities/tearsheet/profile?s=CHCC:KAR
www.ravimagzine.com
www.wikipedia.com/cementsectorpakistan
https://www.app.com.pk/overview-of-the-economy-2015-16/
http://www.fccl.com.pk/main/financial_statements/annualreport2015.pdf
http://www.lucky-cement.com/
www.aksaricement.com
https://www.dawn.com/news/1241255
www.fccl.com