DEWAN CEMENT

COMPANY PROFILE:

Dewan Cement Ltd. (DCL) is an ISO 9001:2008 certified company, and a name of trust in
the production of high quality cement. DCL has a capacity of more than 2,880,000 tons per
annum from two separate manufacturing units, comprising of Pakland Cement Ltd., and
Saadi Cement Ltd.

Pakland Cement Ltd. was established in 1981 at Deh Dhando in District Malir, Karachi, 44
kilometres off the National Highway, encompassing an area of 150 acres. Within one year,
an integrated plant with an initial capacity of 300,000 TPA was up and running and it was
fully operational by 1985, producing superior Ordinary Portland Cement. In 1987, Sulphate
Resisting Pakland, a pioneer product in the private sector, was introduced. Supported by the
latest technology and intensive machinery, the market size of the product rose in a short span
of time, resulting in a clinker production capacity of up to 750,000 TPA. Subsequently,
Pakland Blast Furnace Slag Cement was included in the company’s fold.

BOARD OF DIRECTORS:
Executive Directors:
Syed M. Anwar (Chief executive officer)
Mr. Haroon Iqbal

Non-Executive Directors:
Mr. Ishtiaq Ahmed (Chairman board of director)
Mr. Waseem ul haq Ansari
Mr. Muhammad Naeem udin Malik

Independent Director:
Mr. Aziz ul Haq

Chief Financial officer:

Mr. Imran Ahmed Javed

Company Secretary:
Mr. Muhammad Hanif
Legal Advisor:
M. Azhar Faridi (Advocate)

Registration office:
Finance & Trade Center Karachi, 7th Floor

Islamabad office: 58, Margalla road, Sector F-7/2

SALES TAX REGISTRATION NUMBER: 02-04-2523-002-46

NATIONAL TAX NUMBER: 0701669-7

VISION STATEMENT OF DEWAN CEMENT:

“The vision of dewan cement is to become leading market player in the cement sector.”

QUALITY POLICY OF DEWAN CEMENT LTD:

Dewan cement LTD is the manufacturer and exporter of Ordinary Portland cement (OPC),
Oil well cement and Sulphate Resistant Cement (SRC).
The Quality policy of dewan cement is to produce Good quality cement.
To accomplish this, the top management commits to:
▪ Manufacture and market such cement that consistently meets of surpasses local and
international standards
▪ Continually improve product quality and cost effectiveness by using the latest
manufacturing techniques
▪ Provide required training to our staff for continual improvements
▪ Monitor suppliers performance for purchasing of good quality material
▪ Ensure health and safety of our workers
▪ Comply with requirements and continually improve the effectiveness of ISO
9001:2015 system
▪ Comply with any and all legal and other requirements

Everyone is responsible for the quality within the company and for maintaining high
standards.
 Company’s Performance:

The highlights of the financial result are tabulated below:

2018 2017
(Restated)
(Rupees in ‘000’)
Sales
-Local-net 13,085,243 11,991,381
- export 388,240 864,898
13,473,483 12,856,279
Gross Profit 2,117,050 2,534,049
Net profit before tax 1,247,656 1,569,588
Net profir after tax 902,272 1,305,559
Basic earnings per share Rs. 1.87 Rs. 2.71
Diluted earnings per share Rs. 1.87 Rs. 2.17

Dispatches: Qty in tons Qty in tons % increase/

(decrease)
(2018) (2017)
Local dispatches-Cement 2,133,031 1,859,825 14.69
Local dispatches-GGBS 19,724 47,827 (58.76)
Export Dispatches 81,225 177,642 (54.28)

Despite increase in local sales volume by 14.69% their sales revenue witnessed an increase
of 4.8%, mainly due to continuous increase in excise duty from Rs. 1000per ton to Rs. 1250
per ton, then rupees 1500 per ton resulting negatively on margin. Their export sales
registered a decline. Overall the company’s revenue increased by 4.8% compared from last
year (2017). The net profit for the year showing a decline of 30.90% as compared to last year
mainly due to increase in excise duty and coal prices.
Future Outlook:

Capacity utilization of the industry has reached 92.82%. Plants have added new capacities and
more expansion are underway. It will reach 72MPTA by 2021. Excess supply situation may
affects the profit.
CPEC, mega infrastructure projects, public and private housing schemes will continue to boost
cement demand. Hence double digit growth will continue in the local market.
Increasing inflation, interest rate and increase in coal prices may put pressure on the profit
margin.
Export demand is expected to increase due to USD PKR parity.

Competitive Advantage:

DCL possesses rich history and experience along with strong brand presence through Dewan and
Pakland. DCL plants are strategically located in the southern and northern regions of Pakistan,
making it only one of the three companies in Pakistan with a footprint in both regions.

Manufacturing Process: Following is the flowchart for cement manufacturing process;

Value Chain Activities:

Yes/N
Value Chain Activity o How Does DCL Create Value for the Customer?
Primary
Inbound logistics Value is generated by bringing in the raw inputs to be
Yes transformed into the product
Operations
Yes Add value by converting inputs into finished products
Outbound logistics Value is created by efficiently delivering the finished goods
Yes to the markets
Marketing sales No
Service No
Support
Procurement Creating value by ensuring the quality inputs and materials
Yes are procured

Technology development Using new technologies in manufacturing plants to produce

Yes better quality cement through more efficient processing
Human resource management No
General administration No
 Relationships among Value Chain Activities:

Technolo Human
Outboun gy resource General
Inbound d Marketin Procure developm manageme administra
logistics Operations logistics g sales Service ment ent nt tion
Hiring and Effectively
training of manage the
Raw inputs are Inputs are
personnel to inbound
Inbound moved to purchased
efficiently logistics to
logistics manufacturing from the
perform the ensure timely
plants market
inbound availability of
logistics work raw inputs

Utilizing
Provides Hire, train Coordinating
Uses raw technology
finished and develop with
inputs to create and
Operation provided
product to
maintain
competent operation to
s the employees to ensure
by inbound efficient
outbound ensure quality smooth
logistics manufacturi
logistics production processing
ng processes

Coordinatin
g with
marketing
Providing
Provides and sales
Using admin
finished dept to
Outbound product to the ensure
technology support such
logistics for timely as vehicles,
outbound timely
delivery fuel and
logistics dispatch and
management
delivery to
the
customers

Coordinati
ng with
Using
marketing
Working with Informing technology Facilitate the
and sales
operations to the to reach out marketing
dept to
determine the customer to the and sales dept
Marketing right strategies
ensure
about after customers to effectively
sales timely
for pricing, sales and to create carry out the
dispatch
delivery and support awareness marketing
and
promotions options about the plans
delivery to
products
the
customers
 Training the
Developing
Informing customer
innovative
the customer support
systems to
Service about after
provide
personnel to
sales support ensure high
customer
options quality
support
services
Ensuring that
Procure the
latest procurement
Inputs are equipment is being done
Procurem purchased and tools to without any
ent from the keep up with issues and to
market the new provide
technology support
trends whenever
required
Using
Using Procure
technology Utilizing
latest latest
Technolog to reach out latest
technologie equipment
to the technology
y s to enable
customers
and tools to
and systems
developme in time keep up with
and to create to effectively
nt availability the new
awareness manage the
of raw technology
about the operations
material trends
products

Hiring and Providing

training of support to the
Human personnel HRM
to function to
resource efficiently ensure hiring
manageme perform the and training
nt inbound of competent
logistics people for the
work right job

Effectively Providing
Providing Facilitate the Utilizing
manage the support to the
admin marketing latest
inbound Coordinating HRM
General support and sales technology
logistics to with operation function to
such as dept to and systems
administra ensure to ensure
vehicles, effectively to
ensure hiring
tion timely smooth and training
fuel and carry out the effectively
availability processing of competent
manageme marketing manage the
of raw people for the
nt plans operations
inputs right job
RESOURCE BASED VIEW (RBV) OF DCL:

Is it Is it Are there few Is it difficult to

Resource/Activity valuable? rare? substitutes? make?
Inbound logistics Y N N N
Operations Y N N N
Outbound logistics N N N N
Marketing sales N N N N
Service Y N N N
Procurement Y N N N
Technology development Y N N N
Human resource
management N N N N
General administration N N N N