THE MOST GRACIOUS, THE MOST MERCIFUL
Dedication is a devotion to whom we love, who
are our benefactors, who pray for us and who made
us capable of doing all these under this head, there
are two personalities, which are our PARENTS, our
TEACHERS. So we have devoted our report to our
beloved parents and beloved teachers.
TABLE OF CONTENTS
S. # Description Page No
1. Executive Summary4
2. Introduction to Cement Sector5
3. Cement Manufacturing process11
4. Introduction to MapleLeaf Cement Sector13
5. Financial Highlights (Maple Leaf)15
6. Interpretation (Maple Leaf)22
7. Introduction to D.G Cement24
8. Financial Highlights (D.G cement)27
9. Interpretation (D.G Cement)34
10. Ratings of MapleLeaf and D.G cement36
For the preparation of report on “ANALYSIS OF CEMENT SECTOR IN PAKISTAN” first we discuss our topic from our respected teacher Miss Fariha Bashir. She told us the procedure of making a report. She gave us an ample of information how to calculate different ratios for the purpose of analysis. In this regard we collected material about our topic. We collected the annual reports of Maple leaf and D.G cement; the two cement sectors on whom we have worked. We also collected some data from the Internet. The report was then composed and submitted on the due date.
INTRODUCTION TO CEMENT SECTOR
Cement is a fine, soft, powdery-type substance. It is made from a mixture of elements that are found in natural materials such as limestone, clay, sand and/or shale.
Cement industry is indeed a highly important industrial sector that plays a vital role in socio economic development. Though the cement industry in Pakistan has witnessed its lows and highs in recent past, it has recovered during a couple of years and is buoyant once again.
A market is a group of buyers and sellers exchanging goods that are substitutable for one another. Markets are defined by demand conditions; they embody the zone of customer choice for the goods. Now, market for cement exist in Pakistan in two dimensions:
1. Product type
2. Geographical area
Since cement is a specialized product requiring sophisticated infrastructure and production locations. So, most of the cement industries are located within mountainous region that are rich in clay, iron and mineral capacity.
The other factor geographical location also doesn’t affect a lot considering flexibility of demand. Example can be taken from the fact that if DG cement in DG Khan raises its price and MAPLE LEAF in DaudKhel will raise its price to match DG cements. This is due to the cartels of cement manufacturers in Pakistan. Thus the customers has no choice at all to switch between two brands of cement.
The market share of cement industry is such that since a large number of manufacturers are in market and targeting the entire market through the formation of cartels. So the dominancy of market share can be attributed to two factors:
1. Brand name
2. Product Quality
Since pricing is similar so production capacity can provide a vague idea with regard to market share of all players.
Cement industries in Pakistan are operating at a maximum capacity due to a boom in industrial and commercial construction within Pakistan. Consumer faces a rough...