cement industry final.docx - Industry Analysis Cement Industry Maple Leaf Cement Industry Institution of business Management University of Engineering

cement industry final.docx - Industry Analysis Cement...

This preview shows page 1 - 7 out of 45 pages.

Industry Analysis Cement Industry Maple Leaf Cement Industry Institution of business & Management University of Engineering & Technology 1
Image of page 1

Subscribe to view the full document.

Group Members Hifza Imtiaz Farkhanda Naz Ahmad Uzair Sajid Ali Hanan Abid 2
Image of page 2
Table of Content Overview-------------------------------------------------------------------------------------------------------5 Introduction----------------------------------------------------------------------------------------------------6 Pakistan cement industry outlook-------------------------------------------------------------------------17 Forecast-------------------------------------------------------------------------------------------------------18 Construction material value chain mapping-------------------------------------------------------------18 Mining--------------------------------------------------------------------------------------------------------21 Processing/Manufacturing---------------------------------------------------------------------------------21 Marketing----------------------------------------------------------------------------------------------------22 Logistics and Transportation------------------------------------------------------------------------------24 Distribution--------------------------------------------------------------------------------------------------25 PESTLE Analysis of cement industry-------------------------------------------------------------------27 Political------------------------------------------------------------------------------------------------------27 Economic----------------------------------------------------------------------------------------------------28 Effects of exchange rates----------------------------------------------------------------------------------29 Demographic effects---------------------------------------------------------------------------------------29 Interest rate--------------------------------------------------------------------------------------------------30 Creation of employment-----------------------------------------------------------------------------------30 Economic Growth------------------------------------------------------------------------------------------30 Social---------------------------------------------------------------------------------------------------------31 Technological-----------------------------------------------------------------------------------------------31 Technological effect----------------------------------------------------------------------------------------32 3
Image of page 3

Subscribe to view the full document.

Legal-----------------------------------------------------------------------------------------------------------33 Environmental Effect----------------------------------------------------------------------------------------33 Environment--------------------------------------------------------------------------------------------------34 Health Effect-------------------------------------------------------------------------------------------------- 34 Perter Five Forces Model-----------------------------------------------------------------------------------36 Internal Rival between existing players-------------------------------------------------------------------36 Bargaining power of suppliers-----------------------------------------------------------------------------39 Bargaining power of suppliers-----------------------------------------------------------------------------40 Threat of new entrants--------------------------------------------------------------------------------------41 Threat of Substitutes----------------------------------------------------------------------------------------42 4
Image of page 4
Executive Summary Maple Leaf Cement (PSX: MLCF) was established in 1956 by the West Pakistan Industrial Development Corporation (WPIDC) with an initial production capacity of 300,000 tons annually. Another company called White Cement Industries Limited (WCIL) was formed with a clinker capacity of 15,000 tons per annum. The two later merged and transferred to the newly established State Cement Corporation of Pakistan (SCCP). The SCCP established Pak Cement Company Limited (PCCL) with a capacity of 180,000 tons per annum. Together the three were merged to establish Maple Leaf Cement during the cement industry privatization. Currently, the company operates through two production lines for the production of grey cement and white cement. Maple has over 90 percent of the market share in white cement and about 7 percent in grey cement as per its annual capacity of 3.36 million tons of clinker. 3,360,000 tons (based on 330 days). The company is preparing to launch another brown field line with grey clinker production of about 7300 tons per day (2.4 million tons annually). The plant is located in Daud Khel, Punjab near the salt range and extraction sites of important minerals like limestone, clay and sand used in the production process. Aside from supplying primarily to the northern zone markets of the country, Maple Leaf exports to India, Afghanistan, Middle East and other African countries. Maple Leaf is a subsidiary of Kohinoor Textile Mills Limited (KTML), part of the larger Kohinoor Maple Leaf Group (KMLG) which has businesses in textile, power and investment sectors. 5
Image of page 5

Subscribe to view the full document.

Overview: At the time of independence in 1947, only one or two units were producing grey cement in the country. During the decade of 1948-58, the number of cement units increased to six. During the Ayub era the economy started to grow and the construction activities underwent a boom. To meet the growing demand of cement new units were set up. During the decade of 1958-68, the number of cement units increased from 6 to 9. During the following period of Zulfiqar Ali Bhutto all the industrial units, including cement industry, were nationalized, therefore, no new unit was set up during 1971-77. During the period of General Zia-ul-Haq, 1977-88, denationalization of
Image of page 6
Image of page 7
  • Spring '13
  • salman

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes