Investor Presentaiton
Cement
•
•
Industry Snapshot | Local
Cement is a significantly important sector of the country, and is also vital for its economic
development. The country's infrastructural developments and construction activities
alongside multiple allied sectors (steel, wood, tiles etc.) are directly influenced by the
performance of the cement sector.
Overall size of the sector was recorded at PKR~345,054mln during FY20 (FY19:
PKR 413,879mln) down ~17% YoY, due to reduced retention prices in the north region
amid increased supply and reduced exports.
The Cement Sector is composed of 19 companies of which 16 companies and 24 plants are
operational. The Sector is divided into two regions; North and South, with North covering
areas of Punjab, KPK and AJK and South including areas of Sindh and Baluchistan.
The cement sector is organized and oligopoly in nature, with most of the players listed on
the PSX. Market capitalization of the sector is recorded around PKR~690bln.
Overview
Offtake Local mln tons
Export mln tons
PACRA
FY19
FY20
Gross Revenue (PKR mln)
Contribution to GDP
413,879
345,054
1.18%
0.85%
Sector Players
17
17
Structure
Regulated & Listed
Production Capacity mln tons
66
66
40
40
7
8
Total Offtake mln tons
North Region (Avg Price/Bag)
47
48
580
526
•
Overall economic growth and government's spending on development projects are the
main drivers of the sector's growth.
South Region (Avg Price/Bag)
Regulator
621
673
Securities and Exchange
•
Pakistan's per capita cement consumption is around 182 kg whereas world average per
capita consumption is recorded around 500 kg, more than double the consumption in
Pakistan, reflecting an immense potential for growth in cement demand.
Associations
Commission of Pakistan (SECP)
All Pakistan Cement
Manufacturers Association
(APCMA)
Source: Pakistan Economic Survey, APCMA, PBS
4View entire presentation