An Overview of Pakistani Cement Industry

Presentation by:

M. Asadullah Manager Export Marketing

Lucky Cement Limited

Pakistan

Agenda

Salient Features of Pakistani Cement Industry

Production Capacity and Capacity Utilization in Pakistan

Domestic Consumption, Exports & Surplus Capacity

Company-wise Production Capacities in Pakistan

World’s Leading Cement & Clinker Exporters

Leading Export Markets of Pakistan in 2012

Lucky Cement Ltd (LCL) as the Largest Cement

Manufacturer and Exporter of Pakistan

Salient Features of Pakistani Cement Industry

Installed Production Capacity is 44.77 million tons

24 Integrated Factories in North Zone & South Zone

33.4 million tons cement produced in FY 2012-13:

Local Consumption 25.0 million tons

Exports 8.4 million tons

Main Export Markets are:

Afghanistan (by road)

Sri Lanka & Sub-Saharan Africa (by sea)

In 2012-13, Capacity Utilization was 75 %

Per Capita Consumption 125 kg

As per All Pakistan Cement Manufacturers Association (APCMA):

Production Capacity and Capacity Utilization in Pakistan

Quantities in million tons

Statistics as per APCMA website

www.apcma.com

July to

June

Production

Capacity

Capacity

Utilization

2002-03 16.32 70.16%

2003-04 17.28 79.08%

2004-05 17.91 91.32%

2005-06 20.96 88.54%

2006-07 30.62 79.23%

2007-08 37.80 80.14%

2008-09 42.41 73.83%

2009-10 45.47 75.25%

2010-11 42.50 73.95%

2011-12 44.77 72.63%

2012-13 44.77 74.67%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

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10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

Domestic Consumption, Exports & Surplus Capacity

Quantities in million tons

Source: www.apcma.com

Fiscal YearProduction

Capacity

Domestic

ConsumptionExports

Domestic

Plus Exports

Surplus

Capacity

2006-07 30.62 21.03 3.23 24.26 6.36

2007-08 37.80 22.58 7.72 30.29 7.51

2008-09 42.41 20.33 10.98 31.31 11.10

2009-10 45.47 23.57 10.65 34.22 11.25

2010-11 42.50 22.00 9.43 31.43 11.07

2011-12 44.77 23.95 8.57 32.52 12.25

2012-13 44.77 25.06 8.37 33.43 11.34

0

5

10

15

20

25

30

35

40

45

50

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

Production Capacity

Local Despatches

Exports

Total Despatches

Surplus Capacity

Company-wise Production Capacities

Sr. No. Name Of UnitCement Capacity

(Metric Tons)

1 Lucky Cement (Pezu & Karachi) 7,512,000

2 Bestway Cement (Hattar & Chakwal) 5,915,250

3 D.G. Khan Cement (D.G. Khan & Chakwal) 4,221,000

4 Fauji Cement (Fateh Jang) 3,433,500

5 Maple Leaf Cement (Daudkhel) 3,370,500

6 Askari Cement (Wah & Nizampur) 2,677,500

7 Kohat Cement (Kohat) 2,677,500

8 GharibWal Cement (Jehlum) 2,110,500

9 Lafarge Pakistan (Chakwal) 2,047,500

10 Pioneer Cement (Khushab) 2,030,250

11 Dewan Cement (Hattar & Dhabeji) 1,921,500

12 Attock Cement (Lasbela) 1,795,500

13 Flying Cement (Lilla) 1,197,000

14 Cherat Cement (Nowshera) 1,102,500

15 Al-Abbas Cement (Dadu) 945,000

16 Fecto Cement (Sangjani) 819,000

17 Dandot Cement (Jehlum) 504,000

18 Thatta Cement (Thatta) 488,250

Total 44,768,250

www.apcma.com

World’s Leading Cement & Clinker Exporters in 2012

Source:

The Global Cement Report, Tenth Edition

by ICR

S. No. Country Million Tons

1 Iran 13.80

2 Turkey 13.30

3 China 11.50

4 Thailand 11.47

5 Japan 11.40

6 South Korea 10.05

7 UAE 9.00

8 Pakistan 8.37

9 Germany 8.25

10 Vietnam 7.70

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Leading Export Markets of Pakistan in 2012

S. No.Markets Tons (000)

World 9,011

1 Afghanistan 5,158

2 South Africa 813

3 Sri Lanka 777

4 India 562

5 Iraq 498

6 Tanzania 395

7 Djibouti 207

8 Madagascar 203

9 Mozambique 146

10 Comoros 143

Others 110

Statistics as per ITC

www.trademap.org

HS Code 2523 (Cements) -

100

200

300

400

500

600

700

800

900

Lucky Cement Ltd (LCL) as Market Leader Pakistan

Part of Yunus Brothers Group (A leading business group of Pakistan)

Annual Production capacity 7.5 mtpa i.e. 25,000 M. Tons/day

Two Strategically Located Factories in North & South Zone

ISO Certifications 9001 & 14001

Export Licenses from NSBs:

KEBS, TBS, SABS, SLSI, BIS

Cement exported to 37 countries. We have diversified Export Markets

Middle East, Africa and South Asia

Highly Cost-Efficient Production

Captive Power Generation, WHR Project, TDF and RDF

Logistics & Supply Chain Management

Own Transportation Fleet

24,000 M. Tons Storage Capacity at Port

Pneumatic Pumping System at Karachi Port

Expansion Plans in Emerging Markets and Diversification

Integrated Cement Factory being set-up at DR Congo

Grinding Mill at Iraq about to start production

Acquired 75% shares of ICI Pakistan

Captive Power Generation & WHR Project

100% Captive Power

Generation

Each factory has its own

power plant

22 generators with installed

capacity of 175 MW

Our Waste Heat Recovery Project

qualifies under the Clean

Development Mechanism

Multi-Purpose Transportation Fleet &

Storage / Loading Capacity at Port

Doing bulk & bagged (containerized

cement and also chartered vessel)

Fleet comprising of trailers & bulkers

Own Bulkers for bulk cement

transportation

Pneumatic Loading Plant at Port.

4 Silos at Port having 6,000 each storage capacity

10,000 Tons of loose cement can be loaded in a day

Muhammad Asadullah

Manager Export Marketing

Lucky Cement Limited

6-A, Mohammad Ali Society

A. Aziz Hashim Tabba Street

Karachi - 75350, Pakistan

Tel: +92 21 111 786 555 Ext: 336

Cell: +92 321 2490859

Email: asadullah@lucky-cement.com

Website: www.lucky-cement.com

Thanks