Market and Industry Analysis

Topics: Capacity utilization, Market share, Capitalism Pages: 3 (1174 words) Published: December 30, 2012
Market and Industry Analysis

Figure 1 - Market/Industry Cement Dispatches
In 2008-09 a total of 30.78 million ton material was attained and sent forward, generating an increase of 2.12% as compared to last year (Bestway Annual Report, 2008-09). Dispatches made locally contracted by 14% to a level of 19 million ton (as per DGKC Annual Report, 2008-09), owing to inconvenient economic, political, law and order atmosphere reigning in the country (Bestway Annual Report, 2008-09). High cost of contracting and higher cost of inputs were cut in developmental consumption by the government and truncated spending by the private sector meant a decrease in the requisition of cement (via Bestway Annual Report, 2008-09). The decay in territorial dispatches may also be on account, increasing selling prices in the domestic market (as per DGKC Annual Report, 2008-09). On the contrary, exports totaled 11.38 million ton, defining an increment of 47.52%; although there was a global economic stagnation but the cement industry in Pakistan was unaffected and prospered instead (via Bestway Annual Report, 2008-09). Deteriorating cement prices on the export front (as per DGKC Annual Report, 2008-09), is a possibility behind the increase in overseas demand. The industry’s capacity performance was 75%; lower than 81% capacity performance compared to last year (APCMA, n.d.). Agitated condition of the economic law and order in the country could be accounted for the main reason for this decrease (Bestway Annual Report, 2008-09). However, it could be noted that the total manufacturing capacity also increased by 12.39% during the year (APCMA, n.d.). In terms of augmentation in dispatches, the organization surpassed the industry trend in 2008-09 demonstrating an increase of 26% since last year, to a level of 3.39 million ton (via Bestway Annual Report, 2008-09). It dispatched 2.32 million ton out of this in the local market, sharing 12.2% of the total dispatches as juxtaposed to 9.2% for the...
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