1. A PROJECT ON
FAUJI CEMENT COMPANY LIMITED
TO:
SIR SALEEM JAHANGIR MIRZA
BY:
MUHAMMAD NAEEM 3778
MUHAMMAD USMAN 3763
HASAN ALI MALIK 3765
MUHAMMAD UMAIR KAYANI 3781
MUHAMMAD FARRUKH NOUMAN 3762
FACULTY OF MANAGEMENT SCIENCES
INTERNATIONAL ISLAMIC UNIVERSITY, ISLAMABAD.

2. INTRODUCTION
- THE ORGANIZATION:
A longtime leader in the cement manufacturing industry, Fauji Cement Company,
headquartered in Islamabad, operates a cement plant at Jhang Bahtar, Tehsil Fateh Jang,
District Attock in the province of Punjab. The Company has a strong and longstanding
tradition of service, reliability, and quality that reaches back more than 11 years.
A VIEW OF FAUJI CEMENT PLANT AT JHANG BAHTAR
The cement plant operating in the Fauji Cement is one of the most efficient and best
maintained in the Country and has an annual production capacity of 1.165
million tons of cement. The quality portland cement produced at this plant is the
best in the Country and is preferred in the construction of highways, bridges,
commercial and industrial complexes, residential homes, and a myriad of other
structures needing speedy strengthening bond, fundamental to Pakistan's
economic vitality and quality of life.

3. Fauji Cement Company Limited was sponsored by Fauji Foundation and
incorporated as a public limited company on 23 November 1992. It obtained the
Certificate of Commencement of Business on 22 May 1993. The Company has
been setup with primary objective of producing and selling Ordinary Portland
Cement (OPC). For the purpose of selection of sound process technology, state of
the art equipment, civil design and project monitoring, local and foreign
consultants were engaged.
The Company entered into a contract with World renowned cement plant
manufacturers M/s F.L. Smidth to carry out design, engineering, procurement,
manufacturing, delivery, erection, installation, testing and commissioning at site of
a new, state of the art, cement plant including all auxiliary and ancillary
equipment, complete in all respects for the purpose of manufacturing a minimum
of 3,000 tpd clinker and corresponding quantity of Ordinary Portland Cement as
per Pakistan/ British Standard Specifications.
The contract came into force on 1 January 1994. Physical work on the project
started in August 1994Commissioning activities started in May 1997 generally
remained smooth and trouble free, which enabled first batch of clinker production
on 26 September 1997 followed by cement production in November 1997.
Subsequently in 2005, the Plant capacity was increased to 3,700 tons of clinker per
day i.e. 3,885 tons of cement per day.
- BUSINESS PATTERN:
The Company has been set up with the primary objective of producing and selling
ordinary portland cement. The finest quality of cement is available for all types of
customers whether for dams, canals, industrial structures, highways, commercial
or residential needs using latest state of the art dry process cement manufacturing
process.
- COMPANY’S MISSION:
FCCL while maintaining its leading position in quality of cement and through
greater market outreach will build up and improve its value addition with a view to
ensuring optimum returns to the shareholders.
- COMPANY’S VISION:
To transform FCCL into a role model cement manufacturing Company fully aware
of generally accepted principles of corporate social responsibilities engaged in
nation building through most efficient utilization of resources and optimally
benefiting all stake holders while enjoying public respect and goodwill.

4. - COMPANY’S STRATEGIES:
We shall achieve our vision by maintaining high quality product, relentless pursuit
of customer satisfaction, empowering FCCL employees to lead cement industry
and achieve manufacturing excellence, producing superior returns to our
shareholders.
- COMPANY’S VALUES:
We listen to our customers and improve our product to
CUSTOMERS
meet their present and future needs.
Our success depends upon high performing people
working together in a safe and healthy work place where
PEOPLE
diversity, development and team work are valued and
recognized.
We expect superior performance and results. Our leaders
ACCOUNTABILITY set clear goals and expectations, are supportive and
provide and seek frequent feed back.
We support the communities where we do business, hold
SOCIAL ourselves to the highest standards of ethical conduct and
RESPONSIBILITY environment responsibility, and communicate openly with
public and FCCL employees.
- INVESTORS:
PATTERN OF SHAREHOLDING IS AS UNDER:
SHARES PERCENTAGE
FAUJI FOUNDATION INCLUDING 235,938,214 31.79
DIRECTORS
FFC 93,750,000 12.63
FFBL 18,750,000 2.52
FOTCO 18,750,000 2.52
GENERAL PUBLIC 374,800,472 50.51
TOTAL 741,988,686 100
- MANUFACTURING PROCESS:
Fauji Cement is manufactured from best quality raw materials using dry process.
Major portion of such raw ingredients consists of Limestone and Clay. The raw
materials are quarried, crushed and corrected. After which they are mixed in the
correct proportions to form the best raw mix. The raw mix is then ground in a raw
mill and subsequently burnt in a rotary kiln at a temperature around 1450 °C. The
raw materials under go a number of complex chemical reactions in the burning
phase and leave the kiln as cement clinker, consisting of agglomerate of clinker

5. minerals. Finally the clinker is ground to a fine powder called cement, in a Cement
Mill together with 4-6% gypsum. The gypsum serves to retard the setting time of
the cement, which would otherwise harden, immediately with the addition of
water.

7. COMPETITORS:
Following are some important competitors of Fauji Cement.
- Lucky Cement
- Bestway Cement
- D.G. khan Cement
STRUCTURE:
The company’s management structure consists of Board of Directors, Committees
and Company’s Management.
- BOARD OF DIRECTORS:
Lt. Gen Hamid Rab Nawaz, HI (M) (Retd) Chairman
Lt. Gen Javed Alam Khan, HI (M) (Retd) Chief executive/MD
Mr. Qaiser Javed Director
Mr. Riyaz H. Bokhari, IFU Director
Brig. Arif Rasul Qureshi, SI (M) (Retd) Director
Brig. Rahat Khan, SI (M) (Retd) Director
Dr. Nadeem Inayat Director
Brig. Liaqat Ali (Retd) Director
Brig. Munawar Ahmed Rana (Retd) Director
Brig. Shabbir Ahmed (Retd) Company Secretary
- HUMAN RESOURCE COMMITTEE
Dr. Nadeem Inayat President
Mr. Qaiser Javed Member
Brig Liaqat Ali (Retd) Member
Brig Shabbir Ahmed (Retd) Secretary
- AUDIT COMMITTEE
Mr. Qaiser Javed President
Mr. Riyaz H. Bokhari Member
Brig Rahat Khan (Retd) Member
Dr. Nadeem Inayat Member
Brig Shabbir Ahmed (Retd) Secretary
- TECHNICAL COMMITTEE
Brig Rahat Khan (Retd) President
Brig Arif Rasul Qureshi (Retd) Member
Brig Liaqat Ali (Retd) Member

8. Mir Khawar Saleem, Director (Project) Secretary
- COMPANY’S MANAGEMENT:

9. PRODUCTS AND SERVICES:
Fauji cement is currently producing only Ordinary Portland Cement (OPC), having
PS:232-2008 ® : 53 Grade.
- INGREDIENTS:
- Clinker 95%
- Gypsum 5%
In making its Products, Fauji cement meets the requirements of Following international
Standards:
- ASTM-C-150, Type I
- BS EN-197-1, Strength Class 42.5 N
SALES:
Following is the Sales of Fauji Cement for Last 10 years:
YEAR SALES (in Millions)
2009 5314.538
2008 3,545.902
2007 3,463.283
2006 4,286.138
2005 2,845.143
2004 2,296.231
2003 1510.738
2002 1586.606
2001 1575.604
2000 1696.581
1999 1340.411
In the Table You can see that Sales was increasing continuously from 1999 to 2006, then
their was decline in 2007 and 2008, but Fauji cement has Significantly increased it sales
and reached to Rs. 5314.538 Millions.

10. GRAPHICAL REPRESENTATION OF SALES
6000 1999
5000 2000
2001
4000 2002
2003
3000
2004
2000 2005
2006
1000 2007
2008
0
S ES
AL 2009
NET PROFIT:
Following is the Net Profit of Fauji cement for Last 10 years.
YEAR Net profit
(in Millions)
2009 1007.623
2008 413.598
2007 646.323
2006 1203.735
2005 510.490
2004 314.148
2003 (531.381)
2002 (110.480)
2001 (570.455)
2000 (282.974)
1999 (562.901)
In the Table , you can see that from 1999 to 2003, Fauji cement was in loss, In 2004,
company recovered and earned Rs. 314.138 Millions as Net Income, Up till 2006,

11. Company’s net Income was increasing with a significant Pace, and reached 1203.735
Million, but afterwards Net Income again start decreasing. In 2009, Fauji cement Earned
Rs. 1007.623 Millions as Net Income.
GRAPHICAL REPRESENTATION OF NET INCOME
1400 1999
2000
1200
2001
1000 2002
800 2003
600 2004
2005
400
2006
200 2007
0 2008
S ES
AL 2009
ANALYSIS OF CUSTOMERS AND DEMAND
FAUJI CEMENT CUSTOMER’S VALUE:
“We listen to our customers and improve our product to meet their present and
future needs.”
Fauji Cement Company supplies cement throughout Pakistan especially in the
provinces of Punjab, AJK and NWFP through extensive dealer’s network.
Due to its strength, Fauji cement is a first choice for all hydro electric power
projects and projects which specially requires strength and durability to overcome
structural problems.
Due to its strength, Fauji cement is used in many mega projects some of which are
as under:
- Motorway (M1-Project, Islamabad-Peshawar)

12. - Bahria Town / Safari Villas, Rawalpindi City
- Pak Gulf Construction Pvt Ltd (CENTAURUS)
- Karakorum Highway (KKH Project) Islamabad
- Dong Fang Electric Corp, Batagram, NWFP
- Yucel Turk Const (Pvt)Ltd, Mansehra City
- Sino Hydro Power Project, Duber Khwar, Bisham Swat City
- Siyahkalem Engineering,Construction Company, Muzaffarabad City
- Essem Hotel and Serena Hotel, Islamabad.
- Malakand (Dargai) Hydro Power Projects
- Army Housing Schemes
- Air Force Housing Schemes
- National Logistic Cell Projects
- Fauji Foundation Projects
- Agha Khan Development Network, Muzaffarabad City.
- Projects of Izhar Group of Industries.
- Mineral Development Project, Islamabad.
- A Q Khan Laboratory, Rawalpindi City
- National Highway Authority Projects
- Shifa International Hospital, Islamabad.
- Habib Rafique (Pvt) Ltd, Islamabad.
- CGGC- CMEC- NJ (Neelum Jhelum Hydro Electric Power Project),
Muzaffarabad City
- Mangla Dam Raising Development Project.
EXPORTS:
Due to its strength and better marketing, Fauji cement is also in demand in foreign
countries. Fauji Cement is one of the major exporters of cement to Afghanistan,
with an effective presence in all cities. Their dealer’s network effectively cover
the markets of Jalalbad, Kabul, Northern Afghanistan (Kunduz-Mazar Sharif and
surrounding areas) and other markets of Afghanistan.
They also export to Tajikistan and India.
FUTURE PLANS FOR LONG TERM GROWTH
REFUSE DERIVED FUEL (RDF):
In pursuance of its commitment to produce cement under stringent environment friendly
conditions, Fauji Cement Company Limited (FCCL) has taken the lead by installing first
ever Refuse Derived Fuel (RDF) Processing Plant at a cost of Rs. 320 Million.
NEW LINE OF PRODUCTION WITH CAPACITY OF 7200 TONS:
To meet the future challenges of Cement Industry and Country's future demand, FCCL
has planned to install a new line of production with an installed capacity of 7200 tons

13. clinker per day in parallel with the existing line.
In this regard services and supply contracts have been signed with world famous German
Cement Plant manufacturer i.e. Polysius (ThyssenKrupp) Germany, ABB Switzerland
(Electrical equipment & PLC), Haver & Boecker (Packing Plant) and Loesche GmbH
Germany (for vertical cement mills). The contracts have been made effective from 1st
October 2007.
Contract with M/s Descon Engineering Limited for civil design, civil works of whole
plant, local parts fabrication, erection and commissioning was signed effective from 1st
Dec. 2007, 85% civil works has been completed, mechanical erection 10% has been
completed & Elect. Erection work has just started, 98% of imported equipment has
arrived at FCCL Site. The project is moving as per schedule commissioning of plant will
be started "Insha Allah" by May 2010.
98% of imported equipment has arrived at FCCL site. Mechanical erection has also been
geared up recently. The project is moving as per schedule. Commissioning of plant will
be completed "Insha Allah" by May, 2010.
CAPTIVE POWER PLANT:
6 MW power plants have been commissioned in the month of July 2007 and are
operating successfully.
NEW CAPTIVE POWER PLANT:
1. A new captive power plant is under progress. In this regard Supply and
Services contracts for 16.3 MW dual fired (Gas + Oil) power plant was signed
with M/s Wartsilla Finland.
Engine and other accessories have arrived at FCCL plant and erection of power
plant is in process.
Civil work was awarded to Descon Engineering Ltd and local fabrication and
erection of mechanical equipment to M/s Wright Engineering Co (PVT) Ltd.
Electrical erection work has been awarded to M/s Power Engineering Co.
16.3MW duel fuel Power Plant has been erected & commissioning of Power Plant
is in Progress.
Duel Fuel engine model 18V50DF is supplied by Wartsilla Finland & can be
operated on HFO & Natural Gas / LFO.
Power Plant will be commissioned “Insha Allah” by end December 2009.

14. 2. 3x2MW Gas Engine already functioning at Fauji Site since July 2007.
RECOMMENDATION
COMPARISON WITH COMPETITORS:
Following is the comparison of Fauji cement with its competitors i.e. Bestway Cement,
Lucky Cement and D.G Khan Cement.
SALES
YEAR FAUJI BESTWAY D.G KHAN LUCKY
CEMENT CEMENT CEMENT CEMENT
2009 5314.538 14814 18038209 26330
2008 3545.902 7487 12445996 16958
2007 3463.283 5649 6419625 12522
2006 4286.138 4544 7955665 7985
2005 2845.143 3536 5279560 3980
NET INCOME
YEAR FAUJI BESTWAY D.G KHAN LUCKY
CEMENT CEMENT CEMENT CEMENT
2009 1007.623 974 525581 4597
2008 413.598 169 (53230) 2678
2007 646.323 52 1622471 2547
2006 1203.735 1226 2418455 1936
2005 510.490 931 1682078 827