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The Pakistan Credit Rating Agency Limited

CEMENT – AN OVERVIEW

FEBRUARY 2014

CEMENT
The Pakistan Credit Rating Agency Limited

CEMENT – AN OVERVIEW SECTOR STUDY

STUDY CONTENTS
Summary Sector Study: Global Cement Industry Pakistan Industry Business Risk Financial Risk Outlook

PAGE
1 2 2 4 6 7

February 2014

www.pacra.com

SECTOR STUDY
The Pakistan Credit Rating Agency Limited

CEMENT – AN OVERVIEW (FEBRUARY 2014) SECTOR DYNAMICS Business Risk Outlook Medium Stable to Positive

OVERVIEW
Pakistan’s cement industry has an oligopolistic structure – top five players (out of a total of 18) controls above 55% share. Geographically production facilities are concentrated in north (83%) of the country, while south has around 17%. During the last decade, the Pakistani cement industry has expanded its production capacity significantly; while gradually making inroads into the exports markets. The cement production capacity of Pakistan stood 44.8mln tons in FY13. Demand dynamics, playing key role in cement manufacturing, kept capacity utilization at ~75%, a behavior observed in past few years. Currently, Pakistan is ranked among the world's top 10 cement exporting countries.
Pakistan Cement - Production and Capacity Utilization
50 45 40 35
Mln Tons

HIGHLIGHTS
FY13 Total Companies No. of listed Companies Share of listed Companies (based on capacity) Cement Production Capacity Utilization Market Capitalization Revenue* Net Income* Cement Sector Loans Share in Banking Loans Cement NPLs Share in Total NPLs Cement Infection Ratio
* Listed companies only

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

18 17

30 25 20 15 10 5

94% 33mln Tons 74.6% PKR 248bln PKR 193bln PKR 38bln PKR 54bln 1.3% PKR 16bln 2.6% 29.6%

-

Cement Capacity (Mln Tons) Export (Mln Tons)

Total Production (Mln Tons) Capacity Utilization (%)

PERFORMANCE

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