University of Management &Technology

School of Business and Economics

Course:
Financial Risk Management
PROJECT
Qualitative & Quantitative Analysis of Company
Submitted To:
Tahseen Mohsan
Group Members:

Waleed Bin Aamir S2019270006

M. Saad Zafar S2019270004

Fatima Rashad Durrani S2019270002

M. Danish Sajjad S2019270001

 Project
Choose any one company of your choice, develop the qualitative and quantitative analysis of the
company. The analysis should include following information:

The company which we choose for our project is Lucky Cement

Qualitative Analysis

a) Industrial review

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 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 industrial units boosted
the investments. Housing and construction industries picked up and the demand for cement
increased. Thus, the number of cement units increased from 9to 23 and finally 24.The cement
industry in Pakistan has become a long way since independence when country had less than half
a million tones per annum production capacity. By now it has exceeded 10 million tones per
annum as a result of establishment of new manufacturing facilities and expansion by existing
units. Privatization and effective price decontrol in1991-92 heralded a new era in which the
industry has reached a level where surplus production after meeting local demand is expected in
1997.

The cement industry is needed a highly important segment of industrial sector that plays a
pivotal role in the socio-economic development. Through the cement industry in Pakistan has
witnessed its lows and high in recent past, it has recovered during the last couple of years and is
buoyant once again. There are total number of units are 23, from which 4 units are in the public
sector while the remaining 19 units are owned by the private sector. Two of the four units in the
public sector had to close down their operations due to stiff competition and heavy cost of
production. The cement plants are located in every province of Pakistan

b) Industrial GDP

The cement industry contributes billions to Pakistan’s economy. In 2016, it contributed

approximately Rs. 20 billion to the national exchequer alone, over Rs. 40 billion is added to
country’s GDP annually. Pakistan offers great opportunity to capture regional markets due to
its geo- strategic location on the confluence of South, West and Central Asia.
 The Karachi Stock Exchange lists 21 companies in the cement sector with the net worth of
these companies around Rs. 25 billion. Some of the companies operate multiple plants in
various cities. Pakistan State Bank has released cement industry annual report for the
FY2018-19, in which the bank reviewed the performance of all sectors, including the
country's cement industry. Real GDP growth decelerated to 3.3 per cent in FY19, compared
to 5.5 per cent last year.

Pro
j
ects
Director
Operations
Director
Operations
Director
Marketing
(North)
GM Government
Relations and
Admin’
GM Marketing
(South)
GM Finance
GM Human
Resources
GM Production
GM Power Plant
(Karachi)
GM Power Plant
(Pezu)
GM Legal and
Corporate
Affairs
GM Supply Chain
Head of Internal
Audit and
Compliance
GM Information
Technology and
Systems
Chief
Market share:

Lucky cement market share is expected to jump to 20 percent from the existing 17 percent. The
cement maker was recently stripped of its status as the largest manufacturer after the acquisition
of Lafarge Pakistan Cement by Bestway Cement Limited.

Cement industry witnessed a 5.4 percent surge in its sales to 40.9 million tons during the last
fiscal year of 2016/17. Local cement sales rose 10.4 percent to 36.4 million tons, but exports fell
22.8 percent to 4.5 million tons.