SWOT Analysis

Lucky Cement Limited has been growing with the prime objective of maximizing value for all the stakeholders. The company
uses its 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.

STRENGTHS
• Lucky Cement is the largest cement producer of Pakistan
with current production capacity of 12.15 MTPA and an
announced expansion of 3.15 MTPA.
• The company has most efficient production facilities, which
gives strength to the overall performance and profitability
of the Company.
• The strategic plant locations in North and South regions
of the country, give the company access to nationwide
market and mitigates exposure to any localized risks.
• The company has an extensive dealership network of
more than 160 dealers and distributors.
• Lucky Cement owns a huge fleet of Bulkers & Trailers,
which gives us added advantage in terms of logistics and
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.
• The only Cement Company in Pakistan, which has silos at
the Port, thus, is able to export loose cement.
• The Company has international footprint, with 3 JV plants
in Iraq and Democratic Republic of Congo.
• The Company has diversified its businesses and has
made strategic investments in Chemicals, Automobiles
and Power.
areas. The Company endeavours to mitigate the impact
of this limitation by an efficient warehousing network which
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 neighbouring countries and therefore
significant growth opportunities are available for the
company.
• The positive demographic trends like growing population,
increasing urbanization and rising income levels are the
key demand drivers.
• The China–Pakistan Economic Corridor initiative remains
a great opportunity for long-term growth of the industry.
• Furthermore, with the anticipated Government and
Private Sector’s spending on infrastructure development;
construction of highways, dams, special economic zones,
energy projects and low-cost housing schemes, the local
demand of cement is likely to increase in medium to long-
term.

• The company has also successfully demonstrated that it is

an environmentally responsible organization by launching
eco-friendly projects such as Waste Heat Recovery,
alternate fuels and renewable energy projects. The carbon
emissions by Lucky Cement Limited are well below the
country’s regulatory limits.
THREATS
• Rising input costs on account of increase in gas, coal and
other fuel prices coupled with devaluation of PKR versus
other foreign currencies will continue to put pressure on
the margins in the short-to-medium term.
• At current prices, the spiraling coal and other fuel prices
WEAKNESSES coupled with increased freight costs will make exports
• Due to the location of Lucky Cement’s plant in the district unviable.
Lakki Marwat, high distribution cost has to be suffered
to distribute the Company’s products to certain remote

Embarking on
Sustainable Future 75