Analysis of Financial statements MBA-4(B)

REPORT ON LUCKY CEMENT

LIMITED

Submitted To : Mr Fazal ur rehman

Submitted By : M Farrukh Arif

Program : MBA(Finance), Section B

Enroll # : 01-222092-007

BAHRIA UNIVERSITY, ISLAMABAD CAMPUS

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Analysis of Financial statements MBA-4(B)

INTRODUCTION OF AN ORGANZATION:
Lucky Cement Limited is the largest cement producer in Pakistan. Its shares are traded
on the Karachi Stock Exchange. Lucky Cement Limited has been sponsored by one of
the largest business groups in Pakistan, the Yunus Brothers Group (YB Group), based in
Karachi and has grown remarkably over the last 50 years. The YB Group is engaged in
diversified manufacturing activities including textiles, spinning, weaving, processing,
finishing, stitching and power generation.
History:
Lucky Cement Limited was founded in 1996 by Mr. Abdul Razzak
Tabba. Mr. Abdul Razzak Tabba was the Chairman of YB Group.
Mr. Tabba was awarded SITARA-I-IMTIAZ on 23rd March, 2005
for Public Service and the highest exports. Under the leadership of
Mr. Abdul Razzak Tabba, the Group has received more than 20
Exports Trophies from the Government of Pakistan for the highest
overall exports from the Country as well as the highest exports in
Textile SectorThe company initially started with factories in the
Pezu district of the North West Frontier Province (N.W.F.P). It
now, also, owns a factory in Karachi.

The Group consists of a number of industrial

establishments other then Lucky Cement
Limited, they include:

1. Lucky Textile Mills

2. Fazal Textile Mills Limited
3. Gadoon Textile Mills Limited
4. Lucky Energy (Private) Limited
5. Yunus Textile Mills

Lucky Textile Mills - established in 1983

Fully computerized weaving and stitching unit

Consists of 3 weaving plants comprising of 800 looms, 250 stitching machines, 3.4
million meter/month Grey fabric capacity, 83 million meters/ annum processing and
15 million meters/ annum made ups capacity
Power generation capacity 6.20 MW
Expertise in ready-made curtains and accessories for foreign markets

Fazal Textile Mills Limited - established in 1987

One of the top spinning mill in the country with 59,508 installed spindles
Produces 100% Grey Cotton Ring Spun Yarn and wide range of Blended and Heather
Yarns? ISO – 9001:2000 certified

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Gadoon Textile Mills Limited - established in 1988

First of the only two mills in the world producing Compact Core Spun yarn
194,392 installed spindles. Produces high quality Compact yarn, Murata Jet Spinning
yarn, Core Spun yarn and 100% Grey Cotton Ring Spun yarn
Also has a power plant of 34 MW
OKO – Tex Standard 100 certified

- COMPETITORS :
Here is a list of competitors:

• Best way cement

• Fauji cement
• DG Khan cement

PRODUCT LINE:
Lucky Cement aims at producing cement to suit every user. The following types of
cement are available:

1. Ordinary Portland Cement

2. Sulphate Resistant Cement
3. Slag Cement

ORDINARY PORTLAND CEMENT (OPC)

Ordinary Portland cement is available in darker shade as well as in light shades in Lucky
Star with different brand names to suit the requirement of users.

It is used in all general constructions especially in major prestigious projects where

cement is to meet stringent quality requirements; it can be used in concrete mortars and
grouts etc. Ordinary Portland cement is compatible/consumable with admixture/ retarders
etc.

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Analysis of Financial statements MBA-4(B)

SULPHATE RESISTANT CEMENT (SRC) Sulphate resistant Cement’s best quality

is to provide effective and long lasting strength against sulphate attacks and is very
suitable for constructions near sea shores as well as for canals linings. It provides very
effective protection against alkali attacks.

SLAG CEMENT Slag cement is also available for specific user requirements. Slag
cement, has been incorporated into concrete projects for over a century to improve
durability and reduce life cycle costs. Among its measurable benefits in concrete are
better workability and finish ability, higher compressive and flexural strengths, and
improved resistance to aggressive chemicals.
BRANDS AVAILABLE AT LUCKY CEMENT

Lucky CEMENT (REGULAR) Lucky STAR

Lucky SULPHATE RESISTANT CEMENT

Lucky GOLD
(SRC)

CORPORATE SOCIAL RESPONSIBILITY:

Being very conscious of social responsibility of corporate sector, Mr. A. Razzak Tabba
had established “Aziz Tabba Foundation” for the welfare of the community at large,
which is engaged in a number of social welfare activities for the benefit of poor and
needy people. The major social welfare centers sponsored by the Aziz Tabba foundation
are “Aziz Tabba Dialysis Centre” and “Tabba Heart Institute”. The Aziz Tabba Kidney
Centre in Karachi having 20 modern Toray dialyses machines serving more than 200
patients every day and installed capacity for at least 240 patients.

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Analysis of Financial statements MBA-4(B)

Community Investment and Welfare Schemes

During the year under review, the Company generously donated Rs.100 million to
Karachi Education Initiative (KEI),a non-profit organization, with a goal to establish a
world-class, international graduate level business institution in Karachi city with the
name of Karachi School of Business and Leadership (KSBL
Environmental Protection Measures
Cement production is one of the most energy intensive
industrial processes; the Company through the
commissioning of Waste Heat Recovery Projects is
converting the waste heat into a primary source of fuel for
power generation, thus,resulting in reduction of green house
gases emission.
As a part of environment protection measures, the Company
has planted thousand of trees at both production facilities to
make a green belt across the plant sites.

VISION

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 We envision being the leader of the cement industry by identifying and capitalizing on
new market opportunities, meeting expectations of the stakeholders, contributing
towards industrial progress and sustainable future, while being responsible corporate
Analysis of Financial statements MBA-4(B)
citizens.

MISSION

Our mission is to expand our business network by forming strategic alliances in the
global market. We endeavor to equip our business with the latest technology to
produce quality cement while conserving energy and reducing CO2 emission to
reinforce eco-friendly business practices; thus meeting international standards.

To be the leading exporter of cement from Pakistan for the regional countries as well
as to explore other potential export markets. Our future strategy is to explore
investment possibilities outside Pakistan in the cement industry to become a leading
global producer.

Exploring and Establishing Export Markets

We have a firm commitment in exploring new markets for sustainable business

growth. Lucky Cement has been successful in establishing its brand in several export
markets including Middle East, India, Sri Lanka and East and South African
countries. We are also planning to setup some offshore facilities to further strengthen
our export business on regular basis

REWRITING OF ARTICLE ON LUCKY CEMENT PUBLISHED ON 19/03/11:

Lucky cement Limited is currently one of the largest manufacturer of cement in Pakistan.
Recently in 2010,company implemented waste heat project in Karachi plant to minimize
cost of production. The project uses wasted heat from the production system to run turbine
engines. So in FY10,company’s
production of cement increased by
13.05%.
Cement sector in 1H11(1st July to
30TH Dec):
The Cement industry overall
faced negative growth of 11.2% in
1H11
Page in
:6 both local and exports sales
comparatively with same last period.
Exports to India suffered a decline of
1.779 million tons as compared to