Lucky cement Industry Pakistan last 3 years analysis report,SWOT analysis and Competitors Analysis.

2. Group Members
Azib Ahmad
Ali Arslan
M. Faizan
M. Jameel
Amina Shafi

3. All Pakistan Cement Manufacturers Association
(APCMA) is a governing body for cement
industry.
APCMA plays a significant role in protecting the
cement industry to the government respect of
formulation of government policies for the
cement industry.
Cement industry of Pakistan

4. Introduction
• Lucky cement was founded in 1993 by Mr. Abdul
Razzaq Tabba.
• Lucky cement has been sponsored by one of the
largest business group in Pakistan the Younus
brothers (YB) group.
• Fulfills Customer Social Responsibility (CSR) by
offering scholarships to students
• Donations for social welfare programs

5. Competitive
Analysis
Of Lucky Cement

6. Business Profile
▶Location
Karachi Plant. 58
Kilometers on Main
Super Highway, Gadap
Town, Karachi
Product
• Ordinary protland cement
• Sulphate Resistant
• Cement Clinker
• Block cement
Board of director
Yunus Tabba
Ali Tabba
Irfan HUsain
Financial Facts
Net profits
Q1 2018 3017 M
Gross profit
Q1 2018 4113 M

8. Top competitors of Lucky
cement

9. BRANDS OF LUCKY CEMENT

10. VISION
Ensure sustainable leadership
position on Pakistan & increase
global footprint in the cement
sector. Identity and capitalize on
diversification opportunities to
maximize shareholder value
while remaining socially
responsive in all spheres of
operations.

11. MISSION
We strive to be a growth oriented company by identifying
opportunities, making the right investments, producing
high quality cement and using innovative technology to
achieve cost competitiveness and customer satisfaction.
We endeavor to harness the best human resources and
providing them a level playing field in achieving long term
goals. We aim to deliver sustained growth and enduring
value to our stakeholders. We recognize our obligations
towards environment and corporate social responsibility
and seek to mitigate and adverse effects on our
environment .

12. IFE
Internal Factor Evaluation

13. STRENGTHS
● Financially strong
● High product quality
● Infrastructure near
ports
● Highest export share
● High pay scale
● Large dealer network
● Employee
● development
WEAKNESSES
● Increasing general and admin
expense
● Capital intensive industry
● Increased production cost
● Highly Localized and regionalized
markets
● Low gratuity and PF funds
● High transportation cost
● Low advertising and

14. Strengths Weight Rating Weighted Score
Revenues increased 0.17 4 0.68
High product quality 0.12 4 0.48
High pay scale 0.10 3 0.3
Highest export share 0.20 3 0.6
Inventory turnover up 3.58 to 4.00 0.05 3 0.15
Employee development 0.08 4 0.32
WEAKNESSES
Low advertising 0.06 2 0.12
Increase in cost of production 0.05 1 0.05
High transportation cost 0.10 1 0.10
Highly regionalized and localized market 0.07 1 0.07
Total 1.00 2.87
INTERNAL FACTOR EVALUATION MATRIX (IFE)

15. EFE
External Factor Evaluation

16. OPPORTUNITIES
• Increasing demand for
cement in gulf region
• Infrastructure
development
• Population increase
causing increase in real estate
• Increase production to
reduce cost and achieve
economies of scale
• Undiscovered markets of
northern regions of
Pakistan
THREATS
• Governmental regulations
• Fluctuation in currency
rates
• Price competition
• Alliance opposition
• Fluctuation in demand
• Political instability
• Increase production cost

17. Opportunities Weight Rating Weighted Score
Increasing demand for cement in gulf region 0.17 4 0.68
Infrastructure development 0.10 3 0.3
Population increase causing increase in real
estate
0.05 3 0.15
Undiscovered markets of northern regions of
Pakistan
0.08 4 0.32
Threats
Governmental regulations 0.06 2 0.12
Fluctuation in currency rates 0.05 1 0.05
Price competition 0.10 1 0.10
Alliance opposition 0.07 1 0.07
Fluctuation in demand 0.20 3 0.6
Political instability 0.12 4 0.48
Total 1.00 2.87
EXTERNAL FACTOR EVALUATION MATRIX (EFE)

18. Lucky
Cement
DG Khan
Cement
Pioneer
Cement
CRITICAL SUCCESS
FACTORS
WEIGHT RATING SCORE RATING SCORE RATING SCORE
Advertising 0.10 3 0.30 4 0.40 2 0.20
Product quality 0.20 4 0.80 3 0.60 3 0.60
Price competitiveness 0.15 4 0.60 4 0.60 4 0.60
Management 0.15 4 0.60 3 0.45 4 0.60
Financial position 0.15 4 0.60 2 0.30 2 0.30
Customer loyalty 0.10 3 0.30 2 0.20 3 0.30
Global expansion 0.10 2 0.20 1 0.10 1 0.10
Market share 0.05 3 0.15 2 0.10 2 0.10
TOTAL 1.00 3.5 2.75 2.80
COMPETITIVE PROFILE MATRIX (CPM)

19. TOWS
Threats, Opportunities,
Weaknesses, Strengths

20. Strengths
1. Financially strong.
2. High product quality.
3. High export share.
Weaknesses
1. Low advertising &
exposure.
2. Low gratitude & PF
funds.
3. Increasing general &
admin. Expenses.
Opportunities
1. Upcoming national
projects.
2. Demand in Gulf region.
3. Expansion in cement
industry.
Threats
1. Govt. regulations.
2. Price competition.
3. Opposition alliance.
“SO” Strategies “WO” Strategies
❖ Setup new factories in
Northern regions of Pakistan.
( S1, O1)
❖ Increased exports to Gulf
regions.
(S1, S2, O2)
❖ Build up exposure and
better brand management
through right promotional
mix.
(W1, O1, O2)
“ST” Strategies “WT” Strategies
❖ Overcoming competitors
pressure through more
quality.
(S2, T2)
❖ Resolve alliance opposition
through top management
involvement.
(S1, T3)
❖ Reduce general & admin.
Expenses to cope with
narrow competition.
(W3, T2)
❖ Consider employees Perks
to avoid hassles of labor
unions.
(W2, T3)

21. Porter Five Forces
THREAT OF NEW ENTRANT
(LOW)
• Start-up Cost High.
• Raw Material Limited.
BARGAINING POWER OF
SUPPLIERS (LOW)
• High competition among
suppliers.
RIVALRY AMONG
COMPETING FIRM (HIGH)
• Large number of
competing firms.
• Fast industry growth rate.
• Large industry size.
Bargaining power of
Customers (LOW)
• Customers are large in
number.
• Product requirement
frequency is low but
volume is high.
THREAT OF SUBSTITUTE
PRODUCTS (LOW)
• Limited number of
substitutes.
• Substantial products
differentiation (Bond).
• High cost of switching to
substitutes.

22. Financial
Analysis

23. 2017
Total Assets
Advances
Investments
Shareholders' Equity
Pre-Tax Profit
After-Tax Profit
Earnings Per Share(Rs.)
Revenues
97,337,365
619,161
13,313,520
79,784,981
18,778bn
13,692bn
42.34
61,601,934
2016
Total Assets
Advances
Investments
Shareholders' Equity
Pre-Tax Profit
After-Tax Profit
Earnings Per Share(Rs.)
Revenues
85,909,316
447,049
12,422,020
69,322,838
18,400,222
12,944,185
40.03
55,923,115
Financial Highlights
Rupees in Million Lucky

24. Financials
Years 2015 2014 2013
• Total Assets
• Deposits
• Advances
• Investments
• Shareholders' Equity
• Pre-Tax Profit
• After-Tax Profit
• Earnings Per Share(Rs.)
• Revenues
73,085,865
69,246
253,350
10,925
59,259
15,911,794
12,431,598
38.44
53,919,310
59,869,631
67,971
161,625
8,158
49,792
14,456,365
11,344,403
35.08
51,412,926
50,196,175
57,125
253,266
5,619
41,035
11,745,868
9,748,762
30.15
43,738,002

25. Total Assets

26. Investments

27. Shareholders' Equity

28. Pre-Tax Profit

29. After-Tax Profit

30. Earnings Per Share(Rs.)

31. Revenues

32. ❖ INCREASE PAY SCALE OF ITS EMPLOYESS :-
In comparison with its competing organizations still the
turnover rate is very high. The reason being low
gratuities and benefits after retirement due to which
most of the employees quit. To retain its valuable
Human Resource, Lucky Cement should pay attention
towards this area.
RECOMMENDATIONS

33. ❖MARKET PENETRATION :-
Because of number of construction projects have been initiated by
the Government and the rising trend of house financing through
banks and investment in real estate and property.
❖MARKET DEVELOPMENT :-
The demand for cement has drastically increased in Gulf region. In
order to cater to the increasing demand and to develop new markets,
Lucky Cement should increase its exports towards Gulf region and also
in other countries, hence developing a market in a new geographical
segment.
RECOMMENDATIONS

34. IMPLEMENT CONTINGENCY PLANNING :-
• Lucky cement need to implement
contingency planning to cope with the future
constraints
• Cost leadership through best value strategy

35. • Lucky cement like any other responsible organization is redefining
its business operations in a fundamental way.
• It is working to promote sustainable development and integrating its
endeavors of profitable growth with the initiative of environment all
protection & uplifting the quality of life of the present & the future
generation.
• The company is moving towards its growth mode and can
aggressively employ the strategies of market development, market
penetration, product development, backward and forward
integration as per need of demand of the org.
CONCLUSION

36. THANK YOU
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