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Group Name: Sparkers: Cement Sector Analysis

The cement sector in Pakistan has experienced significant growth and changes since 1947: 1) In 1947 there were 4 cement factories with a total capacity of 0.5 million tons, which grew to 14 plants and 2.5 million tons by 1972. 2) The industry was nationalized in 1972 with the formation of the State Cement Corporation of Pakistan (SCCP). 3) Production capacity has increased substantially over the past two decades, reaching 16 million tons in 2000 and 44 million tons in 2010.

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Azhar Ali
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17 views

Group Name: Sparkers: Cement Sector Analysis

The cement sector in Pakistan has experienced significant growth and changes since 1947: 1) In 1947 there were 4 cement factories with a total capacity of 0.5 million tons, which grew to 14 plants and 2.5 million tons by 1972. 2) The industry was nationalized in 1972 with the formation of the State Cement Corporation of Pakistan (SCCP). 3) Production capacity has increased substantially over the past two decades, reaching 16 million tons in 2000 and 44 million tons in 2010.

Uploaded by

Azhar Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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GROUP NAME: SPARKERS

CEMENT SECTOR ANALYSIS

History
1947

4 cement factories-capacity of 0.5 Mln tons


14 cement plants-2.5 Mln tons The industry was nationalized The state cement corporation of pakistan(SCCP) was established Cement industry was deregulated GDP growth rate of 6.5%, high import of cement Process of privatization occurred in 1991

1972

1985-86

Increased production capacity from 16 million tons in 2000 to 44 million tons in 2010
2000-2010

Production cqpacity as on march 2014 is 44.64 million tons


2014

Introduction

CARTEL
A cartel is a collection of businesses or countries that act together as a single producer and agree to influence prices for certain goods and services by controlling production and marketing. Harmful for small manufacturer if the cartel is break.

Expansion plans of Cement sector


DGKC is planning to add capacity of 2.52.6 million tons in the southern region Cherat cement company is looking to expand its current production capacity for which it will hold negotiations with various cement plants suppliers. The expansion announcement is because of the cement industry will continue to grow in the current fiscal year because of government plans to increase infrastructure developments in the country

Expansion affect on cartel


"No one can stop you if you want to increase your capacity because it is the right of the company," Tabba told Our Sources. According to directors of Lucky and D.G khan cement: There is no such effect on cartel due to expansion plan of some cement manufacturer.

Before expansion

After expansion

Mergers and acquisition

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