Cement Industry of PakistanDERA GHAZI KHAN CEMENT COMPANYA PROJECT OF NISHAT GROUP OF COMPANIES

2

Presented by: GOAL SEEKERS• M. Nadeem Akram Roll # 3003

• M. Faisal Kareem Roll # 3047

• Mubashar Amin Roll # 3030

MBA (2012-2016)University of Education, Lahore. (Okara Campus)

History of Cement Industry in Pakistan• In 1947, Pakistan had inherited 4 cement plants

with a total capacity of 0.5 million tons.

• Some expansion took place in 1956-66 but the country had to resort to imports of cement in 1976-77 and continued to do so till 1994-95.

• The industry was privatized in 1990 which led to setting up of new plants.

• The industry comprises of 29 firms (19 units in the north and 10 units in the south), with the installed production capacity of 44.09 million tons.

4

History of Cement Industry in Pakistan• There are four foreign companies, three armed forces

companies and 16 private companies listed in the stock exchanges.

• The industry is divided into two broad regions, the northern region and the southern region.

• The northern region has around 80 percent share in total cement dispatches while the units based in the southern region contributes 20 percent to the annual cement sales.

• Cement industry is a highly important segment of industrial sector that plays a pivotal role in the socio-economic development.

5

DG Cement: An IntroductionNISHAT GROUP

• Nishat being largest and most diversified Industrial house in South East Asia, with assets over PRs.300 billion, ranks amongst the top five business houses of Pakistan.

• Nishat has strong presence in the most important business sectors of the region as Textile, Cement, Financial and Insurance, Power Gen (Both IPP and Captive) and Paper products.

6

D.G. Khan Cement Company Limited (The 2nd largest in Pakistan)

Establishment

• DG Khan Cement Company Limited (DGKCC) was established under the management control of State Cement Corporation of Pakistan Limited (SCCP) in 1978 as private limited company.

• DGKCC started its commercial production in April 1986 with 2000 tons per day (TPD) clinker based on dry process technology.

• Nishat acquired DGKCC in 1992 under the privatization initiative of the government. After privatization the company was listed on Stock Exchanges in September 1992.

7

D.G. Khan Cement Company Limited (Continued)• Mission Statement

• To provide quality products to customers and explore new markets to promote/expand sales of the Company through good governance and foster a sound and dynamic team, so as to achieve optimum prices of products of the Company for sustainable and equitable growth and prosperity of the Company.

• Vision Statement

• To transform the Company into modern and dynamic cement manufacturing company with qualified professionals and fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan.

8

D.G. Khan Cement Company Limited (Continued)• Future Outlook

• Despite the poor economic conditions, DGKL expects from the new Govt. to initiate plans for new housing schemes as well as friendly policies for the manufacturing and business sector so the companies can work the their full potentials and can take part in the country’s development and progress

• On going Projects

• Investment in RDF, a modern technology that uses the municipal waste and other means to low cost fuel to produce energy.

9

D.G. Khan Cement Company Limited (Continued)• Achievements

• Environment Protection

• The company has devoted considerable amount of investment funds on environmental-friendly projects and has adopted a comprehensive approach toward environmental protection which is based on the principals of sustainable development. The environmental friendly projects completed at our plants include Waste Heat Recovery Plant a Clean Development Mechanism (CDM) Project , Alternative Fuel Project and Social Responsibility Initiative.

10

D.G. Khan Cement Company Limited (Continued)• Products

1. Ordinary Portland Cement

• Its qualities are Exceptional Strength and Ideal Setting time

2. Sulphate Resistant Cement

• Low C3A Content

• Low Alkali Content

11

D.G. Khan Cement Company Limited (Continued)• Achievements

• Environment Protection

• The company has devoted considerable amount of investment funds on environmental-friendly projects and has adopted a comprehensive approach toward environmental protection which is based on the principals of sustainable development. The environmental friendly projects completed at our plants include Waste Heat Recovery Plant a Clean Development Mechanism (CDM) Project , Alternative Fuel Project and Social Responsibility Initiative.

12

D.G. Khan Cement Company Limited (Continued)• Stock Prices (Last 6 Years)

Year SYMBOL Open Rate High Rate Low Rate Closing Rate Turnover

2008 DGKC 67.81 67.14 67.14 67.14 108200

2009 DGKC 31.12 31.4 29.57 29.65 5867300

2010 DGKC 23.81 24.15 23.52 23.62 712161

2011 DGKC 22.97 23.25 22.85 22.99 1080417

2012 DGKC 40.11 40.35 39.26 39.38 2459270

2013 DGKC 82.97 83.99 82.15 83.69 4858500

13

Year Issued, Subscribed and paid up capital

Par Value of Shares No. of Shares Dividend Cash Flow (Ct)

Price of Security at the beginning (Pt-

1)

Price of Security at the end of

time period (Pt)Return (Kt) Return Rate

in %age

2008 - 67.14

2009 3042494000 10 304249400 533000 0.0018 67.14 29.65 -0.56 -55.66

2010 3650993000 10 365099300 25000 0.0001 29.65 23.62 -0.20 -20.33

2011 4381191000 10 438119100 1000 0.0000 23.62 22.99 -0.03 -2.67

2012 4381191000 10 438119100 0 0.0000 22.99 39.38 0.71 71.29

2013 4381191000 10 438119100 657179000 1.5000 39.38 83.69 2.63 262.52

D.G. Khan Cement Company Limited (Continued)• Return Calculation

14