Factors Affecting the

External Environment

PESTLE Analysis

P Political
Factors
Political instability and turmoil impact the
organization negatively.
Abrupt changes in Government’s macro-
economic policies also adversely impact the
Company’s business.
Organizational Response
The management of Lucky Cement Limited (LCL) closely observes ongoing political
developments and government’s regulatory policies that may affect the Company.
Timely adjustments are made in the organizational processes and policies in response
to actual or anticipated changes in Government policies. Issues relating to the Cement
Industry are dealt through forums such as PBC, ICAP and APCMA.

E Economic
Factors Organizational Response
Being the largest producer of Cement in Pakistan with enhanced production capacity
in the North and South, Lucky Cement exports Cement and Clinker to various regions
across the world.

The Company constantly strives to bring efficiencies in its manufacturing process and
In times of reduced Government’s spending
energy mix, which helps mitigate the adverse effects of increase in production cost. Cost
and lower economic growth, construction
reduction initiatives to control production and non-production related fixed costs are
activities slow-down.
regularly implemented.

With its nation-wide presence, international footprint and interests in diversified

businesses, the Company is well placed to deal with economic shocks in a particular
region / segment.
In times of depreciating local currency, the management identifies alternative sources for
its input material, including the procurement of coal from local sources and substituting
Devaluation of currency, increasing interest
fossil fuel with renewable sources of energy.
rates and higher inflation leads to greater
input costs and reduced margins.
The management continues to search for and identify new markets for its products, both
locally and internationally.

S
Social
Factors Organizational Response
As a socially responsible corporate entity, Lucky Cement strives hard to develop the
communities it serves. It has launched dedicated scholarship programs for the deserving
Focus on Corporate Social Responsibility,
youth of District Lakki Marwat, where its Pezu plant is located.
Donations, development of communities and
Scholarships.
The Company remains committed to making efforts for environment conservation,
education, women empowerment and health initiatives.
Lucky Cement donates generously to various social and charitable causes including
health, education and social sectors.
Investment in health sector.
It also provides funding to various hospitals and welfare organizations including Aziz
Tabba Foundation, Tabba Heart and Tabba Kidney Institutes.

74 ANNUAL
REPORT 2023
T Technological
Description
Risk of technological obsolescence.
Technological innovation by competitors
L
Legal
Description
Compliance with the applicable legal and
regulatory requirements
E Environmental
Description
Environmental Footprint, Recycling, Climatic
Conditions Global warming, Natural disasters
etc.
UNLEASHING POTENTIAL, FOSTERING GROWTH
Organizational Response
To continue its legacy of being the unparalleled leader of the cement industry, LCL has
always given priority to the latest technological developments and in this regard, has
remained at the forefront in upgrading its manufacturing facilities. After installation of
Line H at Karachi plant and Line -1 in Pezu plant, the company has recently added new
cement line of 3.15 MTPA at its Pezu Plant.
LCL has also installed state-of-the art Vertical Cement Mills at its Pezu and Karachi
Plants thus increasing production efficiency.
LCL has a dedicated team of professionals which ensures that all its processes comply
with the applicable regulatory requirements. The Company has taken various initiatives
for digitalization and automation of its processes. This strategic approach not only
underscores its commitment to staying at the forefront of technology but also positions it
as a pioneer in harnessing technological advancements.
Organizational Response
The Company has a dedicated team of professionals which ensures that all its
processes comply with the applicable regulatory requirements.
Lucky Cement is the first Shariah Compliant Company of Pakistan complying with all the
applicable regulations of the Shariah Governance Regulations, 2018.
The Company benchmarks itself with the best in corporate Pakistan by participating
in various award programs, for e.g. PSX Top 25 awards, MAP Corporate Excellence
Awards, CFA Annual Excellence Awards and Best Corporate Report Awards.
Organizational Response
The Company takes various steps to protect the environment including compliance with
applicable environment standards.
We manage our environmental performance through efficient use of natural resources,
and identifying and implementing green alternatives. The Company has made significant
investments in renewable energy projects and Waste Heat Recovery systems. A 34MW
solar plant has been established in Pezu, and a separate 25MW solar plant project
is in the installation phase in Karachi, which is expected to come online by 1Q FY24.
These initiatives showcase the company’s dedication to reducing its carbon footprint,
embracing clean energy sources, and contributing to a greener future. By investing in
renewable energy infrastructure, the company not only demonstrates environmental
stewardship but also paves the way for a more sustainable and resilient energy portfolio.
Water conservation remains at the core of our operational practices.
The company has installed bag filters and monitors dust, particulate matter and other
emissions to ensure that they remain below the respective limits specified in the NEQS.
75