Cement Industry Analysis
CEMENT INDUSTRY OF PAKISTAN
Table of Contents
EXECUTIVE SUMMARY 1
INTRODUCTION TO THE INDUSTRY 2
HISTORY OF THE CEMENT INDUSTRY 2
TYPES OF CEMENT PRODUCED WORLDWIDE 6
TYPES OF CEMENT PRODUCED IN PAKISTAN 7
PLAYERS 9
CEMENT PRODUCTION IN INDUSTRY 13
MARKET SHARE OF THE FIRMS IN CEMENT INDUSTRY 14
GEOGRAPHICAL LOCATION OF CEMENT INDUSTRY 15
CARTELIZATION 16
CONTRIBUTION MADE BY CEMENT 18
EXPORTS 19
All PAKISTAN CEMENT MANUFACTURERS ASSOCIATION (APCMA) 21
INCENTIVES 23
RAW MATERIALS 25
PRICING AND COSTING 25
PRICE LIST OF PRODUCTS IN CEMENT INDUSTRY PAKISTAN 25
DETERMINANTS OF FIXED AND VARIABLE COSTS 27
KEY ISSUES AND THEIR SOLUTIONS 29
KEY ISSUES IN THE ECONOMY 29
AVAILABILITY OF FINANCE 30
TRADE ISSUES 30
KEY HUMAN RESOURCE ISSUES IN CEMENT INDUSTRY 31
PORTER’S SIX FORCES MODEL 32
SWOT MATRIX 38
OPPORTUNITIES 38
THREATS 38
CONCLUSION 39
BIBLIOGRAPHY 40
EXECUTIVE SUMMARY This report discusses the progress and operations of the cement industry of Pakistan. If we go through the history of the industry since 1947 the cement sector has made rapid strides in both public and private sectors , increasing from just 4 units in 1947 to 29 today. The industry comprises of 29 firms (19 units in the north and 10 units in the south), with the production capacity of 44.09 million tons. The north with production capacity of 35.18 million tons (80 percent) while the south with production capacity of 8.89 million tons (20 percent), compete for the domestic market of over 19 million tons. There are four foreign companies, three armed forces companies and 16 private companies listed in the stock exchanges. Pakistan produces 4 main types of cements namely Ordinary Portland cement, Portland Blast Furnace Slag cement, Sulphate Resisting Cement and White Cement. Cement industries in Pakistan are currently operating at their maximum capacity due to the boom in commercial and industrial construction within Pakistan. In early 2000s, most
Table of Contents
EXECUTIVE SUMMARY 1
INTRODUCTION TO THE INDUSTRY 2
HISTORY OF THE CEMENT INDUSTRY 2
TYPES OF CEMENT PRODUCED WORLDWIDE 6
TYPES OF CEMENT PRODUCED IN PAKISTAN 7
PLAYERS 9
CEMENT PRODUCTION IN INDUSTRY 13
MARKET SHARE OF THE FIRMS IN CEMENT INDUSTRY 14
GEOGRAPHICAL LOCATION OF CEMENT INDUSTRY 15
CARTELIZATION 16
CONTRIBUTION MADE BY CEMENT 18
EXPORTS 19
All PAKISTAN CEMENT MANUFACTURERS ASSOCIATION (APCMA) 21
INCENTIVES 23
RAW MATERIALS 25
PRICING AND COSTING 25
PRICE LIST OF PRODUCTS IN CEMENT INDUSTRY PAKISTAN 25
DETERMINANTS OF FIXED AND VARIABLE COSTS 27
KEY ISSUES AND THEIR SOLUTIONS 29
KEY ISSUES IN THE ECONOMY 29
AVAILABILITY OF FINANCE 30
TRADE ISSUES 30
KEY HUMAN RESOURCE ISSUES IN CEMENT INDUSTRY 31
PORTER’S SIX FORCES MODEL 32
SWOT MATRIX 38
OPPORTUNITIES 38
THREATS 38
CONCLUSION 39
BIBLIOGRAPHY 40
EXECUTIVE SUMMARY This report discusses the progress and operations of the cement industry of Pakistan. If we go through the history of the industry since 1947 the cement sector has made rapid strides in both public and private sectors , increasing from just 4 units in 1947 to 29 today. The industry comprises of 29 firms (19 units in the north and 10 units in the south), with the production capacity of 44.09 million tons. The north with production capacity of 35.18 million tons (80 percent) while the south with production capacity of 8.89 million tons (20 percent), compete for the domestic market of over 19 million tons. There are four foreign companies, three armed forces companies and 16 private companies listed in the stock exchanges. Pakistan produces 4 main types of cements namely Ordinary Portland cement, Portland Blast Furnace Slag cement, Sulphate Resisting Cement and White Cement. Cement industries in Pakistan are currently operating at their maximum capacity due to the boom in commercial and industrial construction within Pakistan. In early 2000s, most
Bibliography: (Cement Pakistan Company - Pakistan Cement Industry 2009) http://www.cement.com.pk/cement/pakistan-cement-industry.html (Economy of Pakistan 2009) http://en.wikipedia.org/wiki/Economy_of_pakistan (Cement Industry - Economic Pakistan 2009) http://economicpakistan.wordpress.com/2009/02/01/cement-industry/ (pakistan cement sector review 2007) http://www.igisecurities.com.pk/pdf/Pakistan-Cement-Sector-Review-May-2007.pdf (Government of Pkistan finance 2008) http://www.finance.gov.pk/