SWOT ANALYSIS

Lucky Cement Limited has been growing with the prime objective
of maximizing value for all the stakeholders. The company
uses it strengths to capitalize on opportunities, overcome its
weaknesses and avert threats. Keeping this in perspective,
our pursuits consist of diverse strategies having external and
internal origins. The goal of the Board of Directors is to minimize
all risks and to take advantage of potential opportunities in
order to systematically and sustainably improve the value of the
company for all stakeholders.
offers effective market penetration. Further, the Company
maintains an effective outreach to optimal retention areas
to neutralize the impact of increased distribution cost.
OPPORTUNITIES
• Pakistan has a very low per Capita consumption of cement
as compared to its neighboring countries and therefore
significant growth opportunities are available for the
company.

STRENGTHS • The positive demographic trends like growing population,

increasing urbanization and rising income levels are the
• Lucky Cement is the largest cement producer of Pakistan
key demand drivers.
with current production capacity of 12.15 MTPA and an
announced expansion of 3.15 MTPA. • The China–Pakistan Economic Corridor initiative remains
a great opportunity for long-term growth of the industry.
• The company has most efficient production facilities, which
gives strength to the overall performance and profitability • Furthermore, with the anticipated Government and
of the Company. Private Sector’s spending on infrastructure development;
construction of highways, dams, special economic zones,
• The strategic plant locations across the country, give the
energy projects and low-cost housing schemes, the local
company access to nationwide market and mitigates
demand of cement is likely to increase in medium to long-
exposure to any localized risks.
term.
• The company has an extensive dealership network of
• With the focus of government on the revival and
more than 160 dealers and distributors.
improvement of Cement Industry in the form of several tax
• Lucky Cement owns a huge fleet of Bulkers & Trailers, relief, the company expects improved profit margins in the
which gives us added advantage in terms of logistics and future.
efficient deliveries to all types of customers spread across
the length and breadth of the Country. The Company’s
smart logistic setup and management enables it to
effectively cater to both the international as well as the
domestic markets. THREATS
• The only Cement Company in Pakistan, which has silos at • Rising input costs on account of increase in gas, coal and
the Port, thus, is able to export loose cement. other fuel prices coupled with devaluation of PKR versus
other foreign currencies will continue to put pressure on
• The Company has diversified its businesses and has
the margins in the short-to-medium term.
made strategic investments in Chemicals, Automobiles
and Power. • In the event of reduced Government’s spending on
infrastructure projects, the Company may face oversupply
• The company has also successfully demonstrated that it is
situation due to surplus production capacity.
an environmentally responsible organization by launching
ecofriendly projects such as Waste Heat Recovery and • The pandemic has significantly affected the macro
alternate fuels. The carbon emissions by Lucky Cement economic conditions globally which put immense pressure
Limited are well below the country’s regulatory limits. on the local and export sales. While the pandemic has
receded significantly in the country, any resurgence of
it within the country or globally will further hamper the
cement demand. The impact on export-oriented industries
will be intense as they may face cancellation and slow-
WEAKNESSES down of exports orders.
• Due to the location of Lucky Cement’s plant in the district
Lucky Marwat, high distribution cost has to be suffered
to distribute the Company’s products to certain remote
areas. The Company endeavors to mitigate the impact of
this limitation by an efficient warehousing network which

2021 ANNUAL
REPORT
25 YEARS OF EXCELLENCE
COMMITTED TO NATIONAL DEVELOPMENT 73