D G Khan Cement Company Ltd

Introduction DG Khan Cement Industry:

DG Khan Cement Company Limited (DGKC) is a producer and seller of ordinary Portland and
Sulphate-resistant cement. The company is a unit of Nishat group which is a leading and
diversified business group with a strong presence in the three most important sectors of Pakistan:
textiles, cement and financial services. The group also has considerable stake in insurance, power
generation, paper products and aviation sectors. DGKCC is listed on the stock exchanges of
Karachi, Lahore and Islamabad. About D.G. Khan Cement Company Limited (DGKCC), a unit
of Nishat group, is the largest cement-manufacturing unit in Pakistan with a production capacity
more than 5,500 tons clinker per day. It has a countrywide distribution network and its products
are preferred on projects of national repute both locally and internationally due to the un parallel
and consistent quality. It is listed on all the Stock Exchanges of Pakistan. D.G. Khan Cement
Company has the largest cement manufacturing capacity in the country. Listed in 1992, D.G.
Khan Cement was established by the State Cement Corporation of Pakistan(SSCP) at Dera Ghazi
Khan in 1986. It was privatized to the Nishat group in 1994-95 at Rs35.90 per share. Nishat
Group Nishat Group is one of the leading and most diversified business groups in South East
Asia. With assets over PRs.300 billion 0r $3.5 billion, it ranks amongst the top five business
houses of Pakistan. The group has strong presence in three most important business sectors of the
region namely Textiles, Cement and Financial Services. In addition, the Group has also interest
in Insurance, Power Generation, Paper products and Aviation. It also has the distinction of being
one of the largest players in each sector. The Group is considered at par with multinationals
operating locally in terms of its quality of products & services and management skills. Mian
Mohammad Mansha: The chairman of Nishat Group continues the spirit of Entrepreneurship and
has led the Group successfully to make it the premier business group of the region. The group
has become a multidimensional corporation and has played an important role in the industrial
development of the country. In recognition of his un parallel contribution, the Government of
Pakistan has also conferred him with “Sitara-e-Imtiaz”, one of the most prestigious civil awards
of the country Acquisition of DGKCC by Nishat Group Nishat Group acquired DGKCC in 1992
under the privatization initiative of the government. Starting from the privatization, the focus of
the management has been on increasing capacity as well as utilization level of the plant. The
company undertook the optimization by raising the capacity

Objective:
DGKCC was established under the management control of State Cement Corporation of Pakistan
Limited (SCCP) in 1978. The plant is located at 40 KM North West of Dera Ghazi Khan Town.
DGKCC started its commercial production in April 1986 with a capacity of 2,000 tons per day
Clinker based on dry process technology. Plant & Machinery was supplied by UBE Industries of
Japan. D.G. Khan Cement Company Limited (DGKCC), a unit of Nishat group, is the largest
cement-manufacturing company in Pakistan with a production capacity of 7,000 tons per day
cement.
The company produces Ordinary Portland Cement and Sulphate Resistant Cement. DGKCC is
listed on all the three bourses of the country and is considered one of the most active blue chip
companies of the stock exchanges. Synopsis from shareholding pattern of the company shows
that as on June 30, 2004 about 16% shares are held by financial institutions alone with another
12% by joint stock companies.
In addition, 7% of the shares are with foreign investors, which is a reflection of investor's
confidence on company's performance.
D. G. Khan Cement Company Limited is a Pakistan-based cement manufacturing company. The
Company is engaged in the production and sale of clinker, ordinary Portland and sulfate resistant
cement. The Company's segments include Cement, Paper and Dairy. The Cement segment is
engaged in the production and sale of clinker, Ordinary Portland and Sulfate Resistant cement.
The Paper segment manufactures and supplies paper products and packing material. The Dairy
segment is engaged in the production and sale of raw milk. The Company has a production
capacity of 14,000 tons per day (4.2 million tons/annum). It has three cement plants, located at
Dera Ghazi Khan and at Khairpur, District Chakwal. Its plants are based on dry process
technology. Its products are marketed locally and internationally under a range of brands, such as
Ordinary Portland Cement (DG Brand-Grade 43), Ordinary Portland Cement (DG Brand-Grade
53) and Ordinary Portland Cement (Elephant Cement).
The country has 25 cement plants with an annual capacity of approximately 18.55 million tons.
The Cement industry in Pakistan is bit cyclical in nature. After the privatization process in 1992
aggressive expansions/BMR coupled with upcoming of new entrants in the market, the industry
was flushed with oversupply in the country.
Poor economic performance and political instability put the cement industry into historic crisis.
However, recent rebound in economic conditions and political stability gave breath to cement
industry of Pakistan.
Apart from business concerns, the company is also aware of its socio economic responsibilities.
The factory is located in remote and less developed area. To impart education to the children of
socially deprived locality, the company is operating two subsidized schools within the factory
area. For health services the company is operating a free dispensary for local community. They
focused on best practices.

Vision Statement:

To transform the Company into a modern and dynamic cement manufacturing company with
qualified professionals and fully equipped to play a meaningful role on sustainable basis in the
economy of Pakistan.

Mission Statement:

To provide quality products to customers and explore new markets to promote/ expand sales of
the Company through good governance and foster a sound and dynamic team, so as to achieve
optimum prices of products of the Company for sustainable and equitable growth and prosperity
of the Company.