SUGAR INDUSTRY

Group MembersHafeez ur RehmanQamar NazirShafiq AhmadMuhammad Waqas

Hafeez ur RehmanBE-10-01

Mission & Objective

Our Mission is to gain and maintain leadership in the sugar industry. Our aim is to produce the best quality products with lowest possible cost to benefit our customers.

Quality objectives are designed with a view to enhance customer satisfaction and operational efficiencies.

IntroductionPakistan is amongst the most low cost

sugar producing countries of the world and because of this factor international investors are very much interested in Pakistan sugar and sugar related products industry.

The Sugar industry in Pakistan is the 2nd largest agro based industry after Textiles.

The 15th biggest global producer of sugar but also the 8th largest consuming country in world,

In Pakistan about 99% of the sugar

is extracted from sugarcane. Pakistan is the 4th largest

producer of sugarcane and 12th largest producer of refined sugar in the world Its share in value added of agriculture and GDP are 3.4 percent and 0.7 percent, respectively

Sugarcane is grown on around a

million hectares and provides the raw material for sugar mills

There are 82 functional sugar mills in the country out of which 45 are in Punjab, 32 in Sindh and 5 in KPK.

The total sugar production

capacity is 6.8 million tons in a season and about six hundred thousand (600,000) tons per day.

Pakistan also uses sugar to produce alcohol for medicinal purposes, ethanolfor fuel, chip board manufacturing, etc.

Target Country

Saudi-ArabiaSaudi Arabia is the largest

economy in the Middle East and the richest Arab country.

The economy of Saudi Arabia is entirely based on oil.

Saudi Arabia has a very fast growing economy

Qamar NazirBE-10-36

SWOT-AnalysisPakistan

STRENGTH:- Most of population live in rural

areas that’s why labor is cheap.- Cultivatable land is available for

the production.- Large domestic market is

available.

WEAKNESSWe do not have proper recycling

system which results in high water consumption.

We do not tune-up boilers periodically that causes emission of gases.

Low yield farmers are using old technology for production.

Sucrose recovery rate is less than international standard

OPPOURTUNITIES

We can increase per yield production by using new technologies and fertilizers.

-We can shift towards beet production as it is more cheaper.

• Large area of cultivable land available We can earn foreign exchange by

exporting surplus sugar. Rather than exporting raw material

we can add value to it.

Threats

The production of sugar cane decreases the productivity of land.

As sugar cane crop requires a lot of water, increase in production may create shortage of water for other crops.

Recent floodsSmuggling

SWOT-AnalysisSaudi Arabia

Strengths The recent oil price boom has

boosted growth in the non-oil sector and infrastructure is now much improved.

A large and growing local population means solid domestic demand for goods, services and infrastructure in spite of the global macroeconomic crisis.

Weaknesses

Dependence on oil means growth; exports and government revenue remain highly vulnerable to shifts in world oil prices.

The private sector is dependent on expatriate labor, reflecting a shortage of marketable skills among nationals and a high unemployment rate among Saudi citizens.

OpportunitiesA competitive business

environment will make Saudi Arabia appealing to investors once risk appetite returns to global markets.

Slower growth and lower liquidity will bring inflation down domestically, cushioning the impact of the consumer slowdown.

ThreatsAny attacks on oil facilities could

lead to a disruption of output, which would be extremely detrimental to the overall economy given the reliance on this sector.

Perceptions of high security risk deter some investors as well as adding to the costs of insurance.

Shafiq AhmadBE-10-13

PESTEL analysis Saudi Arabia

The political landscape discusses the evolution of the

political scenario in Saudi Arabia in different periods.

The economic, social, foreign and defense policies are considered in the political landscape section. It

also discusses the performance of the country as per

World Bank Governance Indicators.

The economic landscape describes the evolution of the economy of Saudi Arabia in different periods. It also examines the country’s performance in terms of GDP growth, composition by sector (agriculture, industry and services), fiscal situation, international investment position, monetary situation, credit disbursement, banking sector and employment. The economic landscape also explains the financial system in the country, especially with regard to financial authorities/regulators.

The social landscape covers the

demographics, education and healthcare scenario in Saudi Arabia. The social welfare policies of the government along with the country’s performance in terms of healthcare, income distribution and education are also provided.

The technological landscape discusses the structure and policies in terms of Intellectual property, research & development, technology agreements/pacts; and policies related to the promotion of technology in Saudi Arabia.

The legal landscape examines the structure of the

judicial system, legislation affecting businesses, tax regulations, labor laws, trade regulations and corporate governance in Saudi Arabia.

The environmental landscape in Saudi Arabia discusses the environmental regulations and policies of the country. The performance of the country in terms of in terms of environmental indicators and impact of environmental policies is also examined.

Muhammad WaqasBE-10-21

Strategies to increase the export

Tariff imposition

Focus in the production area

Focus in the competitors countries

Producing less cost product

Country & Firm specific advantageOur Firm is offering a sugar of higher

quality for targeted market. Firm have low cost and resource advantage.

Saudi Arabia has a very fast growing economy

Investors in Saudi Arabia enjoy increasingly well-developed business clusters and value chains

Pakistan is also eying to finalize a bilateral trade agreement with Saudi Arabia on trade and investment.

Competitive Advantage matrix

Porter's Five Forces Model

Barriers of entry (Medium)Bargaining power of supplier

(high)Threats of substitutes (low)Inter firm Rivalry (high)Bargaining power of buyer (low)

Conclusion

Sugar industry has a potential to achieve heights in Pakistan if major steps are taken into consideration in this regard.

• Sugar industry being the second largest agro based industry faces a lot of problems and if steps

for its betterment are not taken this industry cancollapse which will result in importing sugar fromforeign countries and would eventually result in anincrease in the trade deficit.

• Other than sugar we can diversify and produceEthanol which has been proved to be very helpfulin developing economies and ease our import bill.