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o Introduction o Marketing plan o Cost Analysis o Income Statement o Balance Sheet o Break-Even Analysis o Conclusion
• Industry outlook and trend analysis. • History of Cement Industry
The cement demand grew 19 percent and 13 percent during FY05 and FY06 respectively
• Current Scenario of Cement Industry
Growth of 31 percent to 17.53 million tones as against 13.5 million tones sold last year Contributing Rs 30 billion to the national economy in the form of taxes
• Future Out look
Rising trend is expected to be short-lived due to higher interest rates and inflationary The targets for exports for 2000 and 2001 are set to be 9.99 million
35% 30% 25% 20% 15% 10% 5% 0% Facto Cement Askari cement Fauji Cement Attock Cement Others Series1
Marketing Plan :
Economic Analysis of Costs
•Total Cost (TC): Represents the lowest total dollar
expense needed to produce each level of output q. TC rises as q rises.
•Fixed Cost (FC): Represents the total dollar expense
that is paid out even when no output is produced. Fixed Cost is unaffected by any variation in the quantity of output.
•Variable Cost (VC): Represents expenses that vary
with the level of output – such as raw materials, wages, fuel etc and all costs that are not fixed.
TC = FC + VC
Fixed cost 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 0 5 10 15
Variable cost 60000 50000 40000 30000 20000 10000 0 1 4 7 10 13 16 19 Variable cost
Total cost 70000 60000 50000 40000 30000 20000 10000 0 1 4 7 10 13 16 19 Total cost
70000 60000 50000 40000 30000 20000 10000 0 1 4 7 10 13 16 19 Fixed cost Variable cost Total cost
• Measures the flow into and out of the firm at the end of the accounting year. • Net income (or profit) = total revenue – total expenses • On the next page we have attached the assumed income statement which will reflect the sales, revenues and profits or losses
Balance sheet: • Balance sheet measures the stocks of assets and liabilities at the end of the accounting year • Net worth = assets – liabilities
As we have gone through a product launch, we discussed the cost plans, industry outlook, future outlook, and then added the balance sheet and income statement. Scope of cement industry in Pakistan is quite broad which means economically somebody can initiate it which we discussed