TC Jan-Feb 2016 PDF

TRADE CHRONICLE
Lucky Cement wins
Corporate Excellence
Award
Pakistan's leading cement
manufacturer Lucky Cement
Limited has won the 31st
Corporate Excellence Award in the
cement category, bestowed by the
Management Association of
Pakistan (MAP).
The award was received by Amin
Ganny, Chief Operating Officer,
Lucky Cement Limited. "This
award is an expression of our
commitment to best management
and governance practices. Winning
it second year in a row not only
gives us pride but also strengthens
our resolve to continue responsible
growth," said the Chief Operating
Officer.
The award has a prudent criteria
divided in five phases. In the first
phase only those public-listed
companies are shortlisted that have
disbursed 45% aggregate dividend
in last three years.
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Cement Industry
Cement sector remains
buoyant in domestic
market
During the first half of current fiscal,
cement sector continued to remain
buoyant in domestic markets while
exports remained under severe
pressure thereby affecting the total
growth in cement despatches.
Despatches during the six months
ended on 31st December, 2015
increased by 6.38 percent to 18.21
million tons compared with despatches
of 17.12 million tons during the
corresponding period of 2014.
"It is to be noted that this growth is mainly
led by domestic consumption which
increased by a healthy 16.34 percent
to 15.2 million tons during July to
December 2015 compared to 13.06
million tons during July to December
2014" said a spokesman of All Pakistan
Cement Manufacturers Association.
He added that during the same period,
country's exports declined by a massive
25.68 percent to 3.01 million tons
compared to 4.06 million tons during July
to December, 2014.
Further analysis of despatches
revealed that the factories located in
north witnessed 15.32 percent
increase in domestic consumption by
selling 12.63 million tons in domestic
markets from July to December 2015
against 10.96 million tons during same
period of last year. The South based
factories witnessed even more
growth in domestic dispatches by
supplying 2.56 million tons of cement
to local markets from July to
December 2015 against 2.10 million
tons during same period of last year
showing growth of 21.63 percent. In
exports, the North based mills
registered decline of 25.09 percent as
exports were restricted to 1.9 million
tons in first six months of current
fiscal compared to 2.54 million tons
during same period last fiscal. The
South based factories also suffered
decline of 26.67% in exports as the
quantities dropped to 1.11 million tons
duly July to December of current
fiscal compared to 1.52 million Tons
during same period of last fiscal. The
industry despatched 3.44 million tons
of cement in December 2015
compared with 3.11 million tons
despatched in December 2014
showing growth of 10.53%. The local
despatches were 2.98 million tons
during December 2015 against 2.5
million tons during December 2014
depicting increase of 19.28%. The
exports despatches showed decline
by 25.39% as against 610,000 tons
exports during December 2014, the
industry exported 455,000 tons during
December 2015.
He added that the Association has
time and again drawn government's
attention towards illegal imports of
under invoiced cement from Iran.
The industry has urged that a proper
vigilance and accountability system
needs to be put in place to stop
cement smuggling into the country.
Government should also impose 20%
Regulatory Duty for import of cement
in addition to custom duty in order to
protect local industry. The spokesman
further mentioned that the
government should also give due
attention to reduce energy costs
including removal of GIDC imposed
on gas, reduction of custom duty on
coal to 0% and additional incentive
of 5% on export of cement by sea in
order to reduce the overall cost of
operations to make the Pakistani
cement industry competitive globally.
Trade Chronicle - January - February 2016 - Page # 36