DG Khan cement company A project of Nishat group of companies

1. Cement Industry of
Pakistan
DERA GHAZI KHAN CEMENT COMPANY
A PR O J EC T O F
N ISH AT G R O U P O F C O M PAN IES

2. Presented by: GOAL SEEKERS
• M. Nadeem Akram
Roll # 3003
• M. Faisal Kareem
Roll # 3047
• Mubashar Amin
Roll # 3030
MBA (2012-2016)
University of Education, Lahore. (Okara Campus)
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3. History of Cement Industry in Pakistan
• In 1947, Pakistan had inherited 4 cement plants with a
total capacity of 0.5 million tons.
• Some expansion took place in 1956-66 but the country
had to resort to imports of cement in 1976-77 and
continued to do so till 1994-95.
• The industry was privatized in 1990 which led to setting
up of new plants.
• The industry comprises of 29 firms (19 units in the north
and 10 units in the south), with the installed production
capacity of 44.09 million tons.

4. History of Cement Industry in Pakistan
• There are four foreign companies, three armed forces
companies and 16 private companies listed in the stock
exchanges.
• The industry is divided into two broad regions, the
northern region and the southern region.
• The northern region has around 80 percent share in total
cement dispatches while the units based in the southern
region contributes 20 percent to the annual cement
sales.
• Cement industry is a highly important segment of
industrial sector that plays a pivotal role in the socioeconomic development.
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5. DG Cement: An Introduction
NISHAT GROUP
• Nishat being largest and most diversified Industrial house
in South East Asia, with assets over PRs.300 billion,
ranks amongst the top five business houses of Pakistan.
• Nishat has strong presence in the most important
business sectors of the region as Textile, Cement,
Financial and Insurance, Power Gen (Both IPP and
Captive) and Paper products.
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6. D.G. Khan Cement Company Limited
(The 2nd largest in Pakistan)
Establishment
• DG Khan Cement Company Limited (DGKCC) was
established under the management control of State
Cement Corporation of Pakistan Limited (SCCP) in 1978
as private limited company.
• DGKCC started its commercial production in April 1986
with 2000 tons per day (TPD) clinker based on dry
process technology.
• Nishat acquired DGKCC in 1992 under the privatization
initiative of the government. After privatization the
company was listed on Stock Exchanges in September
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7. D.G. Khan Cement Company Limited
(Continued)
• 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.
• Vision Statement
• To transform the Company into 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.
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8. D.G. Khan Cement Company Limited
(Continued)
• Future Outlook
• Despite the poor economic conditions, DGKL expects
from the new Govt. to initiate plans for new housing
schemes as well as friendly policies for the
manufacturing and business sector so the companies
can work the their full potentials and can take part in the
country’s development and progress
• On going Projects
• Investment in RDF, a modern technology that uses the
municipal waste and other means to low cost fuel to produce
energy.
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9. D.G. Khan Cement Company Limited
(Continued)
• Achievements
• Environment Protection
• The company has devoted considerable amount of
investment funds on environmental-friendly projects and has
adopted a comprehensive approach toward environmental
protection which is based on the principals of sustainable
development. The environmental friendly projects completed
at our plants include Waste Heat Recovery Plant a Clean
Development Mechanism (CDM) Project , Alternative Fuel
Project and Social Responsibility Initiative.
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10. D.G. Khan Cement Company Limited
(Continued)
• Products
1. Ordinary Portland Cement
• Its qualities are Exceptional Strength and Ideal Setting time
2. Sulphate Resistant Cement
• Low C3A Content
• Low Alkali Content
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11. D.G. Khan Cement Company Limited
(Continued)
• Achievements
• Environment Protection
• The company has devoted considerable amount of
investment funds on environmental-friendly projects and has
adopted a comprehensive approach toward environmental
protection which is based on the principals of sustainable
development. The environmental friendly projects completed
at our plants include Waste Heat Recovery Plant a Clean
Development Mechanism (CDM) Project , Alternative Fuel
Project and Social Responsibility Initiative.
11

12. D.G. Khan Cement Company Limited
(Continued)
• Stock Prices (Last 6 Years)
Year
SYMBOL
Open Rate
High Rate
Low Rate
Closing Rate
Turnover
2008
DGKC
67.81
67.14
67.14
67.14
108200
2009
DGKC
31.12
31.4
29.57
29.65
5867300
2010
DGKC
23.81
24.15
23.52
23.62
712161
2011
DGKC
22.97
23.25
22.85
22.99
1080417
2012
DGKC
40.11
40.35
39.26
39.38
2459270
2013
DGKC
82.97
83.99
82.15
83.69
4858500
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13. D.G. Khan Cement Company Limited
(Continued)
• Return Calculation
Year
Par Value of
Shares
No. of Shares
Dividend
Cash Flow (Ct)
2008
Price of Security at
the beginning (Pt1)
Price of Security
at the end of
time period (Pt)
-
Issued, Subscribed and
paid up capital
67.14
Return (Kt)
Return Rate
in %age
2009
3042494000
10
304249400
533000
0.0018
67.14
29.65
-0.56
-55.66
2010
3650993000
10
365099300
25000
0.0001
29.65
23.62
-0.20
-20.33
2011
4381191000
10
438119100
1000
0.0000
23.62
22.99
-0.03
-2.67
2012
4381191000
10
438119100
0
0.0000
22.99
39.38
0.71
71.29
2013
4381191000
10
438119100
657179000
1.5000
39.38
83.69
2.63
262.52
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