Factors Affecting the

External Environment
PESTLE ANALYSIS

P Political
Description
Political instability and turmoil impacts the
organization negatively.
Abrupt changes in Government’s macro-
economic policies also adversely impact the
Company’s business.
Devaluation of currency, increasing interest
rates and higher inflation leads to greater
input costs and reduced margins.
Organizational Response
The management of Lucky Cement Limited (LCL) closely monitors the 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.
In times of depreciating local currency, management identifies alternative sources for its
input material, including procurement of coal in local currency and substituting fossil fuel
with renewables.
Management continues to identify new markets for its products, both locally and
internationally.

E Economic
Description 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.

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

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.

S Social
Description

Focus on Corporate Social Responsibility,

Donations, development of communities and
Scholarships.
Investment in health sector.
Organizational Response
As a socially responsible corporate entity, Lucky Cement strives hard to develop the
communities in which it operates. It has launched dedicated scholarship programs for
the deserving youth of District Lakki Marwat.
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.
It also provides funding to various hospitals and welfare organizations including Aziz
Tabba Foundation, Tabba Heart and Tabba Kidney Institutes.

72 ANNUAL
REPORT 2022
T Technological
To continue its legacy of being unparalleled leaders of the cement industry, Lucky
Cement has always given priority to latest technological developments and in this regard
remained at the forefront to upgrade its manufacturing facilities. In addition to installing
new Lines at its Karachi and Pezu Plants in recent years, Lucky Cement is already in the
Risk of technological obsolescence.
process of installing a new line in its Pezu Plant.

Lucky Cement has 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. Even under the circumstances created by
Technological innovation by competitors
the Covid-19 outbreak, our systems and software remained available to our employees
making work from home possible.

L Legal
Description 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
Compliance with the applicable legal and
applicable regulations of the Shariah Governance Regulations, 2018.
regulatory requirements
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
and Best Corporate Report Awards.

E Environmental
Description 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,

Environmental Footprint, Recycling, Climatic and identifying and implementing green alternatives. The Company has made significant
Conditions Global warming, Natural disasters investments in Waste Heat Recovery systems and is in the process of installing
etc. renewable energy projects.

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.

Embarking on
Sustainable Future 73