1 OPAL STONE CEMENT

REPORT
OPAL STONE CEMENT COMPANY

INTRODUCTION OF BUSINESS FINACNCE

SUBMITTED TO SIR MUHAMMAD TARIQ

DATE: 7/5/2014

DAY: SATURDAY/WEDNESDAY (11:50 TO 2:30)

GROUP MEMBERS:
ALI AHMED

MAJID ALI AWAN

AHSAN NAWAZ


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1. I ndustry overview:
1.1. Overview.
Cement is one of the most important Industrial sector and source of trade of Pakistan
there are many private limited companies throughout Pakistan having huge volume of
trading providing big business in shape of small and big dealer of cement product locally
and internationally.
Cement Industry is playing vital role in socio economic development to promote the
export and decrease the unemployment of country by providing opportunities to skilled
and unskilled manpower, more than 1.5million Pakistani working with industry and more
over is a part of its trade. Pakistan is ranked 5
th
in the worlds cement export. Industry has
a production capacity of 2o million tons out of which Pakistan exported approx.
11million tons of cement which earned notable foreign exchange for the country by more
than 20 limited companies working in cement sector having factories in specific areas
where raw material is easily available so most of the cement industries are located at
those regions where clay, iron and minerals, calcium carbonate or lime are the basic
materials for cement. After removing the over burden a multi stage crushing process
involved the modern technology and energetic manpower to reduce the rock and load in
to truck which is itself laborious job need skilled manpower and modern machinery for
crushing process modern cement factories are located closed to source of lime stone as
about 1.50 tons of lime stone is needed to produce one ton of cement.
1.2. Scope of I ndustry in Pakistan:
Cement industry is indeed a highly important segment of industrial sector that plays a
pivotal role in the socio-economic development. Since cement is a specialized product,
requiring sophisticated infrastructure and production location. Mostly of the cement
industries in Pakistan are located near/within mountainous regions that are rich in clay,
iron and mineral capacity. Cement industries in Pakistan are currently operating at their
maximum capacity due to the boom in commercial and industrial construction within
Pakistan.
The cement sector is contributing above Rs 30 billion to the national exchequer in the
form of taxes.
Cement industry is also serving the nation by providing job opportunities and presently
more than 150,000 persons are employed directly or indirectly by the industry.
The industry had exported 7.716 million tons cement during the year 2007-08 and had
earned $450 million, while is expected to export 11.00 million tons of cement during
2008-09 and earn approximately $700 million.

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1.3. Future Prospects of Cement Industry:
As of now, the future prospects of the Pakistan cement industry are good. A manifold
increase in cement exports to African nations and the Middle East should occur.
Additionally, there is massive reconstruction taking place in both Iraq and Afghanistan,
which should rely extensively on cement imports from Pakistan.
It is possible that the cement industry in Pakistan may undergo extensive growth in 2014,
as a result of projected regional and local demand. In the last ten years, cement demand
has risen to 33.2 million t, an increase of 235%. Production, however, has increased to
44.8 million t, leaving a surplus of 11.6 million t.
While extensive damage has been caused by the recent flooding, there is a definite need
for planned and directed investment in infrastructure, transport and construction within
Pakistan, especially if the nation is to achieve its ambition of a gross GDP growth of 6%
within the coming five years. It is essential for the future development of industry in
Pakistan that trade corridors, highways and dams be provided.

2. I ntroduction of A Company:

2.1.Define Name of Company:

OPAL STONE CEMENT
Opal is a stone of inspiration which enhances imagination and creativity. It can bring inspiration
to projects and to life and Spirit.
Opal stone is fine stones are extremely rare, and seldom large. This variety is called the
Harlequin opal. Golden opal is a term applied to that variety in which only one color, an
orange-yellow, is present. The largest opal known is in the Imperial Cabinet of Vienna.
The precious opal (as opposed to regular opals) contains the beauty, the reflected energy
that is called fire opal.

2.2.Products and Services:

OPC:
We offer Ordinary Portland Cement (OPC) that is used in all general constructions,
especially in major and prestigious projects where cement is needed to meet stringent
quality requirements. It can also be used in concrete mortars and grouts, etc. Ordinary
Portland cement is compatible/consumable with admixture/ retarders, etc.

OPC has easy workability and lower heat of hydration. We maintain our technical

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standard of quality parameter at high level and with high strength at all ages. Our OPC
cement satisfies EN 196 / 197 1, SABS, BIS, SLSI & PSS 232 ~ 1983 (R).

SRC:
By maintaining C3A level within the specified limit of 3.5%, our Sulphate Resistant
Cement is more resistant to Sulphate attacks and is suitable for use in foundations near
seashore and canal linings.

SRC has lower heat of hydration and its strength satisfies B.S 4027 / 1980 & PS 612 /
1989.

Clinker:
We also offer clinker to the customers with their own grinding units. Clinker can be
easily handled by ordinary mineral handling equipment and can be stored for several
months without compromising on the quality. Clinker is the primary product in the
cement manufacturing process where limestone, clay and sand are grinded and heated,
before the gypsum is added to produce the final product of cement.

Block Cement:
By the nature of product, Block Cement is similar to the SRC, with a significantly darker
color and some low setting time to meet the requirements of the market and for the
production of blocks. Block Cement also maintains C3A level within the specified limit
of 3.5%.

The Company shall achieve its mission through a continuous process of having sourced and
implemented the best leading edge technology, industry best practice, and human resource and
by conducting its business professionally and efficiently with responsibility to all its stakeholders
and community.

2.3.Mode of Finance:

Financing by several modes some of listed below
CEO, BODs
Bank loans (MCB, HBL,)
Financing institutes (adamjee)
General Public
Gohar group
Shah group
Dewan group
Ramzan construction and machinery




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2.4.Expected Target Market:

A Cement company may obtain its segmentation strategy as follows:

Understanding needs and preferences of consumers -- Having housing,
infrastructure, and commercial construction, as demand drivers, the company
analyze the needs and preferences of consumers in these sectors.

Grouping customers based on their needs and preferences -- Customers with
similar needs and preferences can be included in one segment.

Targeting the segment that the company can best meet the needs and preferences
of - The Company should target the customers, of which it can meet the needs and
preferences. i.e. customer needs higher- strength or low price

Branding the commodity -- Though being a commodity product, branding is
important for a cement company. The company needs to position its brand among
Architects and Builders rather than household individuals.

Provide required product to meet targeted customers' needs and preferences --
Delivering up to the expectations of the targeted segment.