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.

in the North region. The Company endeavors 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.

Strengths
Lucky Cement is the largest cement producer of Pakistan with a
current production capacity of 15.30 MTPA, after the addition of
3.15 MTPA Line – 2 at the Pezu Plant in 2Q FY23.
The company has most efficient production facilities, bolstering
its overall performance and profitability. OPPORTUNITIES
The strategic plant locations in North and South regions of the Pakistan has a very low per Capita consumption of cement as
country, give the company access to nationwide market and compared to its neighboring countries and therefore significant
mitigates exposure to any localized risks. growth opportunities are available for the company.
The company has an extensive dealership network of more than The positive demographic trends like growing population,
160 dealers and distributors. increasing urbanization and rising income levels are the key
demand drivers.
Lucky Cement Limited owns a huge fleet of Bulkers & Trailers,
which gives us added advantage in terms of logistics and Furthermore, with the anticipated Government and Private
efficient deliveries to all types of customers spread across the Sector’s spending on infrastructure development; construction
length and breadth of the Country. of highways, dams, special economic zones, energy projects
and low-cost housing schemes, the local demand of cement is
The only Cement Company in Pakistan, which has silos at the
likely to increase in medium to long-term.
Port, thus, is able to export loose cement.
The Company has international footprint, with 3 plants in Iraq
and Democratic Republic of Congo.
The Company has diversified its businesses and has made
strategic investments in Chemicals, Automobiles, mobile
manufacturing and Power.
The Company has also successfully demonstrated that it is
an environmentally responsible organization by launching
ecofriendly renewable energy projects, as is evident by the THREATS
COD of a 34MW solar project at the Pezu plant and the planned The cement demand faces potential threats arising from factors
COD of a 25MW solar project at the Karachi plant in 1Q FY24. such as political instability, challenging economic conditions
The carbon emissions by Lucky Cement Limited are well below and escalating inflation, which collectively impact the industry’s
the country’s regulatory limits. stability and growth trajectory.

Rising costs on account of record high inflation coupled with

the devaluation of the PKR versus other foreign currencies will
continue to put pressure on the margins in the short-to-medium
term.

Higher fuel prices coupled with increased freight costs will

Weaknesses
The location of Company’s North plant in Pezu, district Lakki
Marwat faces high distribution cost due to the relatively large
capacity of this plant and the distance from bigger markets
make exports unviable.
In the event of reduced Government’s spending on infrastructure
projects, the Company may face oversupply situation due to
surplus production capacity.

UNLEASHING POTENTIAL, FOSTERING GROWTH 77