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Pakistan Cement Factory

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									Marketing Management                          Orascom Pakistan Cement Company




                   LETTER OF TRANSMITTAL



To,
Sir Sohail,
Gift University,
Gujranwala.


Respected Sir,


Enclosed is the report, which was required in the letter of authorization. This
report is prepared according by keeping all the requirements of project in mind.
The project is basically to represent the Marketing Plan of a Multi-National
company through the collection of data and information.


We choose ORASCUM Pak Cement Company, which is multinational company.
We did survey of it and gathered collection from them. Instead of it we gather
further   information   from   secondary   data.   Secondary   resource   means
documented data. After making hypothesis we verify this hypothesis from the
secondary data and represent the Marketing Plan of ORASCUM.




Sincerely,
The students,
GIFT University.




GIFT Business School                                                          1
Marketing Management                            Orascom Pakistan Cement Company




                     Acknowledgement


We are extremely grateful to Almighty ALLAH, who blessed us and have mercy
and kindness in our way to complete this project because nothing can be done
without his blessings.


We are also grateful to Sir Sohail, who gave us a project through which we come
to know Marketing Management in real terms. He also contributed with his
precious time for us to complete this report.


At the end, we want to thank all of our group members who coordinated with us
in many ways. Without their support it seems to be quite a difficult task to get
results for the completion of this report.




GIFT Business School                                                          2
Marketing Management                         Orascom Pakistan Cement Company




                                    PREFACE

The data and information we required was about 4Ps (Product, Price, Place and
Promotion), SWOT analysis, SBU‟s, Market research, Internal Analysis, External
Analysis and Market Expansion Grid. The problems faced during the research
and data collection of the local market. In short the Marketing Plan of Pakistan
Cement Company. For this we did survey of the company collect data and used it
in the preparation of the report.


Although we cannot collect the whole information that was required to complete
this report. For this we searched from net and take help from our seniors. During
all this process we faced some problems. But those problems were solved by the
will of Allah and our Holy Prophet (PBUH) and we were able to complete this
report.




GIFT Business School                                                           3
Marketing Management                         Orascom Pakistan Cement Company


                             Executive Summary

Orascom Construction Industries (OCI) traces its roots back to 1950 when Eng.
Onsi Sawiris first founded a construction company with a few friends in Upper
Egypt. By the early 1990s, Eng. Sawiris had established Orascom as a leading
private sector contractor by working in partnership with international companies
pursing projects in Egypt.

In the mid 1990s, Eng. Sawiris transferred management control to his son, Mr.
Nassef Sawiris, who embarked upon an ambitious diversification strategy
through investments in complementary businesses such as cement and building
materials. Orascom Construction Industries (OCI) is a leading cement producer
and construction contractor active in emerging markets. As a cement producer,
they own and operate cement plants in Egypt, Algeria, Turkey, Pakistan, northern
Iraq and Spain, which have a combined annual production capacity of 21 million
tonnes.

As a contractor, OCI provides engineering procurement and construction
services on large, complex and demanding industrial, commercial, water sewage,
transportation, telecommunications, maritime, tourism and railway projects for
private and public customers principally in Europe, Middle East, Africa and
Central Asia. The Sawiris Family, which includes Onsi Sawiris, Nassef Sawiris
and Samih Sawiris, exercises control over the company. Sawiris Family has
60%.In Concessions & industrial Regional governments have tapped private
developers to undertake large-scale energy, power, water, transportation and
industrial development projects.


The OCI Cement Group intends to expand their cement production capacity
through Greenfield plant development and selective acquisitions in key emerging
markets with large populations and growing economies. OCI intends to comply
with international best practices for corporate governance, corporate citizenship
and sustainable development.


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Marketing Management                          Orascom Pakistan Cement Company



In Code of business ethics they have
      Conflicts of Interest
      Corporate Opportunities
      Confidential Information
      Fair Dealing
      Protection and Proper Use of Company Assets
      Accurate Record Keeping and Reporting
      Compliance with Laws, Rules and Regulations
      Government Contracting
      Reporting of Illegal or Unethical Behavior
      Amendments and Waivers


Its Social Responsibility is that Orascom Construction Industries is a publicly
listed corporation owned by thousands of shareholders. OCI has adopted
corporate governance guidelines, which comply with all applicable laws and
stock exchange regulations. Their media centre has the latest OCI news releases
as well as additional information and images relevant to journalists and media
professionals. Their pressroom staff aims to provide corporate information to all
their stakeholders in an open, accurate and timely manner.


Orascom Construction Industries produces cement and provides construction
services for customers in the developing world. The OCI Cement Group is the
largest cement producer in the Middle East and a leading regional cement
exporter. The OCI Cement Group is the largest cement producer in the Middle
East and a leading regional cement exporter. The OCI Cement Group is the
largest cement producer in the Middle East and a leading regional cement
exporter. The OCI Construction Group provides engineering, procurement and
construction services on large, complex and demanding projects for public and
private customers primarily in the Middle East, North Africa and Central Asia.




GIFT Business School                                                             5
Marketing Management                           Orascom Pakistan Cement Company



Orascom Construction Industries is one of the largest employers in the region
with more than 40,000 employees located in 14 different countries. Their
greatest asset is their people and their business success is a direct result of their
passion, expertise and dedication. It‟s Performance & Projections Is that they
initiated coverage of Orascom Construction Industries-OCI in 2005 as a regional
cement and construction conglomerate, with a large capacity for cement
production in emerging markets and a dominant position among competing
contractors in the Middle East. Progress in the process of acquiring cement
producers and construction of Greenfield plants.


They remain positive on OCI‟s outlook and its ability to release unannounced
value at a sustainable pace. The addition of cement capacity in undersupplied,
high-margin, low-consumption (per capita) markets. Exogenous factors have also
played in OCI‟s favor; cement and construction demand have benefited from
regional construction booms, due to high crude prices and heavy government
spending on development efforts, primarily infrastructure.


Its Competitive advantages is Cost advantages that exist in Egypt. Government
subsidies on energy products apply to almost all energy sources, and particularly
natural gas. Natural gas is a core component of ammonia production, allowing
domestic producers in Egypt to supply regional destinations at a discount to
global pricing levels.


They value OCI based on the results of two methods


      A Discounted Cash Flow valuation and
      A value generated by the multiples of peer companies.




GIFT Business School                                                               6
Marketing Management                          Orascom Pakistan Cement Company



They arrive at a target value of EGP 257/share, yielding an upside potential of
17% from the current market price of EGP 220/share. They update their
coverage with a Buy recommendation. In November 2004, the OCI Cement
Group finalized negotiations for the acquisition of a controlling stake in Pakistan
Cement Company (PCC), formerly named Chakwal Cement Company, in
Pakistan. In July 2005, OCI received regulatory approval to raise its stake in
Pakistan Cement Company to 60.6%. The first foreign investment in the Pakistan
cement industry is Orascom Construction Industries (OCI) acquisition of Chakwal
Cement Company in March 2005. Subsequently, the Company name was
changed to Pakistan Cement Company (PCC).


The renamed Pakistan Cement Company currently owns the property and
equipment for a cement plant capable of producing 2.5 million tons annually.
PCC is one of the largest cement producers in Pakistan. OCI is a leading cement
producer and construction contractor active in emerging markets. As a cement
producer, OCI owns and operates cement plants in Egypt, Algeria, Pakistan,
Northern Iraq and Turkey, which have a combined annual production capacity
approaching 21 million tons. PCC‟s Board of Directors and Management are
committed to strong corporate governance and sound business practices. The
company has applied the principles contained in the Code. The Board has
formed an Audit Committee.


They believe that their cement business is well positioned to outperform its peers
and create exceptional value for shareholders. Their investor relations‟ team
aims to provide corporate information to all their stakeholders in an open,
accurate and timely manner. Cement will not deteriorate significantly if it is
protected from exposure to moisture (humid air, rain condensation, etc.). If
cement is allowed to absorb moisture, its setting time is increased and loss of
strength will occur.




GIFT Business School                                                             7
Marketing Management                           Orascom Pakistan Cement Company


There are two kinds of cement manufactured in Pakistan Cement Company,
which are:


      Ordinary Portland Cement
      Sulphate Resistance Cement


Their Vision statement is, “Strive to exceed the expectations of our stakeholders
through sustainable growth and high quality performance” and Mission Statement
is, “We are committed to providing outstanding value to our customers, a safe
and stimulating work environment for our employees and superior returns for our
shareholders.”


Strengths and weaknesses are controllable factors that are related to the
company, whereas opportunities and threats are uncontrollable factors such as
economic, social etc. that give information about the industry.In SWOT we have


      Strength
      Weakness
      Opportunities
      Threats


The Orascom Pakistan Cement Company has the biggest strength that it belong
to the Orascom group of companies. In Pakistan the population is increasing
rapidly. In this regard we conduct situation analysis which is mainly revolves
around two points which are:


   1. Internal analysis
   2. External analysis


It forecasts for all headline macroeconomic indicators, including real GDP
growth, inflation, fiscal balance, trade balance, current account and external debt.


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Marketing Management                          Orascom Pakistan Cement Company



Orascom Pakistan Cement Company has two main types of products which are
same the difference was in its packing size and the market in which it sold. So
there are two SBUs one to deal and produce within Pakistan one deal and
produce for outside Pakistan.


BCG Matrix is consisting of four positions which are:


   1. Question mark
   2. Star
   3. Cash Cows
   4. Dog



In market expansion grid Pakistan Cement Company Lies in market penetration
and market development. In market they are offering existing product in existing
markets and also offering that existing product into new markets.


Pakistan Cement Company Limited is the country's fifth largest cement
manufacturer with a manufacturing capacity of 2.11m tons of cement per annum,
which is 5.9% of the total cement manufacturing capacity of the country. Its plant
commenced commercial operations in December 2006 with an annual cement
production capacity of 2.5m tons. PCC manufactures cement under the brand
name of PAKCEM.


The company's kiln started operation in July. Orascom Construction Industries is
the parent company of the Pakistan Cement Holding and Camden Cement
Holding. Recently, Lafarge S.A., a world leader in cement, aggregates, concrete
and gypsum, operating in over 70 countries, acquired entire cement operations of
the Orascom Construction Industries Cement Group. Moreover, through the
acquisition, Lafarge got access in Pakistan's emerging cement market via 69%
stake in Pakistan Cement.


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Marketing Management                         Orascom Pakistan Cement Company



Pakistan Cement has no history of sales as such. Furthermore, the debt paying
ability has improved slightly as the company started its cement production. The
future outlook of the company seems positive. A lot of opportunities exist for
Pakistan Cement. Higher PSDP bodes well for the cement demand, particularly
due to the infrastructure development component that requires higher quantities
of cement. Then in marketing mix we define Product, price, place and promotion.
Then we target the marketing strategies then push vs. pull strategy




GIFT Business School                                                        10
Marketing Management          Orascom Pakistan Cement Company




            History & Introduction
                         Of
                       ORASCOM




GIFT Business School                                     11
Marketing Management                          Orascom Pakistan Cement Company


                                   History
Orascom Construction Industries (OCI) traces its roots back to 1950 when Eng.
Onsi Sawiris first founded a construction company with a few friends in Upper
Egypt. By digging waterways and paving roads, he built his businesses into one
of Egypt's largest general contractors. In 1961, the business was nationalized
and later became known as the El Nasr Civil Works Company. Not content to be
an employee in his own company, Eng. Sawiris left for Libya where he continued
his construction career.


In 1976, he returned to Egypt and founded Orascom as a general contracting
and trading company with five employees. By the early 1990s, Eng. Sawiris had
established Orascom as a leading private sector contractor by working in
partnership with international companies pursing projects in Egypt.


Eng. Sawiris commented "Orascom grew because we were able to provide our
clients with turnkey solutions on challenging projects." Having built a successful
track record on projects ranging from water treatment plants and railways to five
star hotels and office skyscrapers, Eng. Sawiris positioned OCI to undertake
even more complex and demanding projects in Egypt and the region.
In the mid 1990s, Eng. Sawiris transferred management control to his son, Mr.
Nassef Sawiris, who embarked upon an ambitious diversification strategy
through investments in complementary businesses such as cement and building
materials. Having grown the family business into a large corporation, Mr. Sawiris
oversaw an initial public offering of shares in the company on the Cairo stock
exchange in 1999.


In the years that followed, Mr. Sawiris invested heavily to expand capacity at
Egyptian Cement Company and then took the strategic decision to expand
operations abroad, which led to the establishment of Algerian Cement Company
and the partnership with the management of the Besix Group.



GIFT Business School                                                           12
Marketing Management                          Orascom Pakistan Cement Company




                               Introduction

Orascom Construction Industries (OCI) is a leading cement producer and
construction contractor active in emerging markets. Based in Cairo, they employ
more than 40,000 people in over 20 countries. Working together with their
employees, business partners and customers, they are helping to build the future
in developing countries around the world. As a cement producer, they own and
operate cement plants in Egypt, Algeria, Turkey, Pakistan, northern Iraq and
Spain, which have a combined annual production capacity of 21 million tonnes.

Their new investments in northern Iraq, Turkey, Nigeria, Algeria, the United Arab
Emirates, Saudi Arabia, Syria and DPRK will increase their annual production
capacity to 42 million tonnes. Their Cement Group exports primarily from Egypt
to customers in more than 30 countries including the USA, Europe, Africa and
the Middle East. They produce and distribute aggregates and ready-mix concrete
in Spain, Egypt and Algeria. They also manufacture cement bags in Egypt and
Algeria. As a contractor, OCI provides engineering procurement and construction
services on large, complex and demanding industrial, commercial, water sewage,
transportation, telecommunications, maritime, tourism and railway projects for
private and public customers principally in Europe, Middle East, Africa and
Central Asia. Their Construction Group is active in over 100 projects in more than
20 countries.

Through partnerships with industry leaders, they also manufacture fabricated
steel products as well as architectural curtain walling and window systems. As
part of their long-term strategy to create a sustainable flow of construction
opportunities, they also have investments in natural gas industries, including
fertilizers and in infrastructure concessions including a port operator and an
industrial park developer. Today, OCI is the largest cement producer in the
Middle East and one of the top 200 construction contractors in the world.



GIFT Business School                                                            13
Marketing Management          Orascom Pakistan Cement Company




              Ownership Structure

        Concessions & industrial
                         Of
                       ORASCOM




GIFT Business School                                     14
Marketing Management                            Orascom Pakistan Cement Company


Ownership Structure

The Sawiris Family, who collectively own or control 60% of the outstanding
ordinary shares of the company, founded Orascom Construction Industries. The
Sawiris Family, which includes Onsi Sawiris, Nassef Sawiris and Samih Sawiris,
exercises control over the company.
      Sawiris Family 60%
      Free Float 40%




Concessions & industrial

OCI participates as an equity investor in long-term infrastructure concessions.
Drawing on their experience in power, water, and industrial construction, they are
uniquely qualified to capitalize on the growth of private infrastructure projects in
Egypt and the Middle East region.


They are currently participating as an equity investor in a port operator, an
industrial park developer, and a natural gas distributor. Regional governments
have tapped private developers to undertake large-scale energy, power, water,
transportation and industrial development projects.


OCI intends to aggressively pursue selected opportunities in partnership with
international companies and financial institutions that have the technical know-
how and management experience to minimize their project risks and ensure the
reliable, cost-efficient delivery of services to the community.




GIFT Business School                                                             15
Marketing Management          Orascom Pakistan Cement Company




             Board & management

                         Of

                       ORASCOM




GIFT Business School                                     16
Marketing Management                         Orascom Pakistan Cement Company


                        Board & management
The business of the Company is conducted by its employees, managers and
executive officers, under the direction of the chief executive officer and the
oversight of the Board of Directors, to enhance the long-term value of the
Company for its shareholders. The Board of Directors is elected by shareholders
to oversee and counsel management. The Board of Directors is chaired by Eng.
Onsi Sawiris and consists of nine members, three of which are considered to be
independent. Their Board of Directors are:

      Mr. Onsi Sawiris
      Nassef Sawiris
      Osama Bishai
      Alaa Sabaa
      Mohammed Youssef
      Maged Abadir
      Karim Camel-Toueg
      Mohamed Farouk Abdel Moneim
      Tarek Hatem.

Management team

      Nassef Sawiris                   Chief Executive Officer
      Salman Butt               Chief Financial Officer
      Nicolas Estay             Executive Vice President
      Adel Bishai               Corporate Governance Director
      Dalia Khorshid            Corporate Treasurer
      Fady Kiama                Corporate Controller
      Hussein Marei             General Counsel
      Kevin Struve              Strategic Planning Director
      Hassan Badrawi            Investor Relations Director




GIFT Business School                                                        17
Marketing Management          Orascom Pakistan Cement Company




                       Strategy
                         Of
                       ORASCOM




GIFT Business School                                     18
Marketing Management                          Orascom Pakistan Cement Company




                                  Strategy

The Orascom Construction Industries (OCI) management team aims to create
exceptional value for shareholders by producing cement and providing
construction services to customers in emerging markets. By establishing
strategic partnerships, recruiting and retaining high caliber employees, utilizing
the latest production technologies, and maintaining a commitment to quality and
safety, the management team intends to deliver sustainable growth and above
returns.


The OCI Cement Group intends to expand their cement production capacity
through Greenfield plant development and selective acquisitions in key emerging
markets with large populations and growing economies. The OCI Construction
Group intends to selectively target large, complex and demanding projects on
which we have a competitive advantage either through a specific technical
competency, a strong geographical presence or a successful track record with
clients.


OCI intends to comply with international best practices for corporate governance,
corporate citizenship and sustainable development. OCI, its subsidiaries and
affiliates demand that all their employees conduct themselves in accordance with
the highest standard of professional conduct and ethics.




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Marketing Management           Orascom Pakistan Cement Company




                         Code
                          Of
                 Business Conduct
                       And Ethics




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Marketing Management                          Orascom Pakistan Cement Company




          Code of Business Conduct and Ethics

This Code of Business Conduct and Ethics (the “Code”) contains the policies that
relate to the legal and ethical standards of conduct that the directors, executive
officers and employees of Orascom Construction Industries S.A.E. (the
“Company”) are expected to comply with while carrying out their duties and
responsibilities on behalf of the Company. This Code is intended to focus the
Board of Directors (the “Board”) and management on areas of ethical risk,
provide guidance to personnel to help them recognize and deal with ethical
issues, provide mechanisms to report unethical conduct, and help to foster a
culture of honesty and accountability. No code or policy can anticipate every
situation that may arise. The Company expects each director, executive officer
and employee to act with honesty and integrity, to exercise independent
professional judgment and to deter wrong doing in the conduct of all duties and
responsibilities on behalf of the Company.


                            Conflicts of Interest


Directors, executive officers and employees should avoid conflicts of interest
between themselves and the Company. A “conflict of interest” can occur when
the private interest of a director, executive officer or employee interferes in any
way or even appears to interfere with the interests of the Company as a whole. A
conflict situation can arise when a director, executive officer or employee takes
actions or has interests that may make it difficult to perform his or her company
work objectively and effectively. Conflicts of interest also arise when a director,
executive officer or employee, or a member of his or her immediate family,
receives improper personal benefits as a result of his or her position in the
Company.




GIFT Business School                                                            21
Marketing Management                           Orascom Pakistan Cement Company



Any situation that involves, or may reasonably be expected to involve, a conflict
of interest with the Company should be disclosed promptly to appropriate
personnel or to the Chairperson of the Audit Committee of the Board.


                          Corporate Opportunities


Directors, executive officers and employees are prohibited from


(a) Taking for themselves personally opportunities that are discovered through
the use of corporate property, information or position,


(b) Using corporate property, information or position for personal gain, and


(c) Competing with the Company.


                          Confidential Information


Directors, executive officers and employees should maintain the confidentiality of
information entrusted to them by the Company or its customers, except when
disclosure is authorized or legally mandated. “Confidential information” includes
all non-public information that might be of use to competitors, or harmful to the
Company or its customers, if disclosed.


                                  Fair Dealing


Directors, executive officers and employees should endeavor to deal fairly with
the Company‟s customers, suppliers, competitors and employees. None should
take advantage of anyone through manipulation, concealment, abuse of
privileged information, misrepresentation of material facts, or any other unfair-
dealing practice.


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Marketing Management                           Orascom Pakistan Cement Company


           Protection and Proper Use of Company Assets


Directors, executive officers and employees should protect the Company‟s
assets and ensure their efficient use. Theft, carelessness and waste have a
direct impact on the Company‟s profitability. All Company assets should be used
for legitimate business purposes.


               Accurate Record Keeping and Reporting


Directors, executive officers and employees should accurately reflect the
transactions of the Company in its books, records, accounts and reports and
should maintain an adequate system of internal controls and disclosure controls
to promote compliance with the laws, rules and regulations applicable to the
Company. Falsification of any Company record is prohibited. All reports,
documents or communications authorized or legally mandated for disclosure to
the public should be full, fair, accurate, timely and understandable.


            Compliance with Laws, Rules and Regulations


Directors, executive officers and employees should comply with the laws, rules
and regulations applicable to the Company.


                          Government Contracting


The laws, rules and regulations applicable to contracting with government entities
are complex and may impose different and special requirements on the
Company. Failure to comply with these requirements may be a criminal offence.
Directors, executive officers and employees should comply with these
requirements and questions regarding compliance should be referred to
appropriate personnel or outside counsel as necessary.



GIFT Business School                                                           23
Marketing Management                          Orascom Pakistan Cement Company



               Reporting of Illegal or Unethical Behavior


Directors, executive officers and employees should promote ethical behavior and
should encourage employees to talk to supervisors, managers or other
appropriate personnel when in doubt about the best course of action in a
particular situation. Directors, executive officers and employees should report
violations of laws, rules, regulations or this Code to appropriate personnel or to
the Chairperson of the Audit Committee of the Board. Violations will be
investigated and action will be taken by the appropriate personnel or the Board
as necessary. The Company will not allow retaliation for reports made in good
faith.


                        Amendments and Waivers


Any amendments to or waiver of this Code shall be made only by the Board upon
the recommendation of the Nominating and Corporate Governance Committee.
If an amendment to or waiver of this Code is made or granted, appropriate
disclosure will be made as required by applicable laws and stock exchange
regulations.




GIFT Business School                                                           24
Marketing Management          Orascom Pakistan Cement Company




              Social responsibility
                         Of
                       ORASCOM




GIFT Business School                                     25
Marketing Management                          Orascom Pakistan Cement Company




                        Social Responsibility

Orascom Construction Industries is a publicly listed corporation owned by
thousands of shareholders. They employ thousands of people and provide goods
and services to thousands of customers in many countries. What they do and
how they do it can have an impact on the lives of every one of their shareholders,
employees, customers, business partners and those in the communities where
they operate.


They recognize that they have a social responsibility to their stakeholders and
are committed to acting in accordance with international best practices for
corporate governance, corporate citizenship and sustainable development. OCI,
its subsidiaries and affiliates demand that all their employees conduct
themselves in accordance with the highest standard of professional conduct and
ethics.


OCI has adopted corporate governance guidelines, which comply with all
applicable laws and stock exchange regulations. They have adopted strict
employee health, safety and environmental policies, have formed a charitable
foundation to provide educational opportunities for young people and have joined
the UN Global Compact to promote human rights, labor standards, environmental
protection and anti-corruption efforts. Working together with their employees,
their international partners and their customers, they are helping to build a
brighter future in developing countries around the world.




GIFT Business School                                                           26
Marketing Management            Orascom Pakistan Cement Company




                       Media centre
                           Of
                       ORASCOM




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Marketing Management                          Orascom Pakistan Cement Company




                              Media centre




Their media centre has the latest OCI news releases as well as additional
information and images relevant to journalists and media professionals. Their
pressroom staff aims to provide corporate information to all their stakeholders in
an open, accurate and timely manner.




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Marketing Management           Orascom Pakistan Cement Company




                       Operations
                          Of
                       Orascom




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Marketing Management                          Orascom Pakistan Cement Company




                                Operations

Orascom Construction Industries produces cement and provides construction
services for customers in the developing world. The OCI Cement Group is the
largest cement producer in the Middle East and a leading regional cement
exporter. Although cement is a simple product, it is absolutely essential and
affects the lives of nearly everyone. Their cement is used to build homes,
buildings and public infrastructure in more than 30 countries.


The OCI Construction Group has built an exceptional track record on large and
complex projects ranging from water treatment plants and power stations to five
star hotels and office skyscrapers in countries throughout the Middle East, North
Africa and Central Asia. With the successful completion of each new project, we
are helping to build a better quality of life and a better future for people in the
region.




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Marketing Management             Orascom Pakistan Cement Company




                       Cement group
                            Of
                        ORASCOM




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Marketing Management                           Orascom Pakistan Cement Company




                              Cement group

The OCI Cement Group is the largest cement producer in the Middle East and a
leading regional cement exporter. Their principal operating cement subsidiaries
are Egyptian Cement Company, which has an installed annual production
capacity of 10 million tonnes, and Algerian Cement Company, which has an
installed annual production capacity of 5 million tonnes.


In July 2006, they successfully completed an upgrade in Egypt, a rehabilitation
project in northern Iraq and commissioned a new plant in Pakistan raising our
Group capacity to 21 million tonnes.


They are currently constructing cement plants in the UAE, Algeria, northern Iraq,
and Nigeria and have recently acquired cement operations in Turkey and Spain
which are being further expanded, all of which will increase their annual
production capacity to 39 million tonnes by 2009.


They export cement primarily from Egypt to customers in more than 30 countries
including the USA. They also produce and distribute ready mix concrete,
aggregates and cement bags in Egypt and Algeria.




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Marketing Management          Orascom Pakistan Cement Company




               Construction group
                         Of
                       ORASCOM




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Marketing Management                              Orascom Pakistan Cement Company




                          Construction group

The   OCI    Construction    Group    provides     engineering,     procurement   and
construction services on large, complex and demanding projects for public and
private customers primarily in the Middle East, North Africa and Central Asia.


OCI   has    undertaken     numerous     landmark     industrial,   commercial    and
infrastructure projects including the world's largest swing bridge over the Suez
Canal and the three tallest buildings in Egypt.


Their principal operating construction businesses are the Besix Group, based in
Belgium with extensive experience on large building, infrastructure and marine
projects, and Contrack International, and based in the USA with extensive
experience on institutional and infrastructure projects.


Through partnerships with industry leaders, we also manufacture fabricated steel
products as well as architectural curtain walling and window systems. They also
have investments in infrastructure concessions including a port operator,
industrial park developer and regional natural gas distributor.




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Marketing Management       Orascom Pakistan Cement Company




                  People & careers




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Marketing Management                           Orascom Pakistan Cement Company




                            People & careers


Orascom Construction Industries is one of the largest employers in the region
with more than 40,000 employees located in 14 different countries. Their
greatest asset is their people and their business success is a direct result of their
passion, expertise and dedication.




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Marketing Management   Orascom Pakistan Cement Company




GIFT Business School                              37
Marketing Management                              Orascom Pakistan Cement Company




They initiated coverage of Orascom Construction Industries-OCI in 2005 as a
regional cement and construction conglomerate, with a large capacity for cement
production in emerging markets and a dominant position among competing
contractors in the Middle East. OCI‟s growth at the time was accelerated by the
acquisition of Besix and the expansion of its order book into GCC-based projects,
while on the cement front, key acquisitions and the establishment of well-
positioned Greenfield operations prompted a positive long-term outlook on its
value-creating ability. They now update their target value for OCI on the basis of
strong developments during the year, including;


         The expansion of cement capacity to include facilities in the UAE, a
          grinding station in Spain and a distribution terminal in Sudan


         Progress in the process of acquiring cement producers and construction of
          Greenfield plants. Continued order book expansion, particularly in the
          GCC, and Indications that it is interested in adding fertilizer manufacturing
          as an independent business line. We remain positive on OCI‟s outlook and
          its ability to release unannounced value at a sustainable pace.


OCI‟s performance drivers over the past three years have been


   (i)       The addition of cement capacity in undersupplied, high-margin, low-
             consumption (per capita) markets.


   (ii)      Expanding export avenues, primarily from its Egyptian operations.




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Marketing Management                                  Orascom Pakistan Cement Company


       (iii)     Establishing a foothold in the GCC construction industry through its
                 acquisition of Besix.


       (iv)      Substantial experience in the construction of industrial facilities thereby
                 gaining a leading position among competitors.


Exogenous factors have also played in OCI‟s favor; cement and construction
demand have benefited from regional construction booms, due to high crude
prices and heavy government spending on development efforts, primarily
infrastructure. The closure of cement facilities in Europe and the advantage of lax
emissions regulations in OCI have chosen markets have allowed it to pursue the
challenging target of remaining a low cost manufacturer with global reach. OCI‟s
current strategy has shown a shift towards


(i)            The integration of elements in its value chain under its umbrella, namely
               the trend towards acquiring grinding and distribution facilities for cement
               products, alongside its existing bagging, ready mix, and gypsum
               producing subsidiaries,


(ii)           The expansion into somewhat related industries, such as fertilizers
               manufacturing and ready mix concrete production, via its experience and
               exposure as a contractor.


With many of its growth targets set in previous years still taking effect, they
project an acceleration of growth going forward, due to the introduction of new
value drivers, and hence an upward revision of our fair value target. Over the
past three years, OCI‟s consolidated revenues, EBITDA, and net profits have
grown at CAGRs 77%, 60% and 81% respectively. They forecast a rise to 37%,
40% and 57% in growth going forward during our forecast period.




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Marketing Management          Orascom Pakistan Cement Company




          Competitive advantages
                         Of
                       ORASCOM




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Marketing Management                            Orascom Pakistan Cement Company




                       Competitive advantages

OCI‟s latest venture will benefit from a number of key market conditions, namely:


      Cost advantages exist in Egypt. Besides labor cost competitiveness and
       raw material abundance, energy costs are low relative to regional
       alternatives. Government subsidies on energy products apply to almost all
       energy sources, and particularly natural gas. Natural gas is a core
       component of ammonia production, allowing domestic producers in Egypt
       to supply regional destinations at a discount to global pricing levels.


      Reduced exposure to raw material price volatilities. EBIC will enjoy a 25-
       year gas supply agreement with EGPC, limiting its sensitivity to
       movements in global energy prices.


      Secure revenues. All of EBIC‟s output will be bought up by US-based
       fertilizer products merchandiser and distributor Transammonia Company,
       through a long-term take-or-pay agreement.


      Tax exemptions, due to the plant‟s location in Al Sokhna industrial park,
       an industrial free zone.


They value OCI‟s venture into ammonia production on the basis of the value
implied by peer multiples. However, they adopt a broad-based approach which
encompassed a range of gas derivatives industries, thereby widening their
definition of „peer‟ companies, as well as provisions for further plant capacities in
the production of ammonia, urea, and other derivatives. They value the move in
terms of a new business line, rather than a single plant.




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Marketing Management          Orascom Pakistan Cement Company




                Valuation Methods
                         Of
                       ORASCOM




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Marketing Management                          Orascom Pakistan Cement Company


                                 Valuation
They value OCI based on the results of two methods


      A Discounted Cash Flow valuation and
      A value generated by the multiples of peer companies.


They arrive at a target value of EGP 257/share, yielding an upside potential of
17% from the current market price of EGP 220/share. They update their
coverage with a Buy recommendation.


                          Discounted Cash Flow:


Their DCF valuation returns a fair value of 195/share, and was based on a 5-year
consolidated free cash flow forecast. The valuation does not include the value
contribution of OCI‟s investments in fertilizer industries. The valuation assumes a
constant debt/equity level throughout the forecast period, permitting to discount
free cash flows to the firm at the weighted average cost of capital (WACC). It is
noteworthy that OCI‟s (debt/ value) parameter has held constant over the past
three years, averaging 61%, thus lending support for our assumption. Their
WACC of 10.55% is composed of the following:


      A cost of equity of 13.08% based on a risk-free rate of 10.00%, derived
       from the yield to maturity of a 10 year EGP-denominated Egyptian
       Government bond maturing in 2014, an equity risk premium of 5% which
       they apply across the board on all MENA equity markets, and a levered
       beta of 0.62.
      A cost of debt of 8.95% based on the weighted average interest rate on all
       of OCI‟s overdrafts, loan facilities, and outstanding bonds as of FY 04, as
       well as any announced borrowings/bond issues to date.




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                           Adjusted Present Value


Their APV valuation of OCI returns a fair value of 211/share. Free cash flows to
equity are discounted at the cost of equity of 13.45%, and an un-levered asset
beta of 0.69. DCF and APV valuations should in theory return identical fair
values. However, we find that the treatment of taxes on a consolidated level
influences the effect of taxes on cash flows, particularly with regards to
withholding taxes in host countries. Their computed effective tax rate is 4.1%,
generating EGP 176.75m in future tax shields.


                            Multiple based values


They chose to apply a multiple-based valuation of OCI by compiling the price-to-
earnings multiples of peer companies operating along OCI‟s core business lines;
cement manufacturing and general construction activities. They adopt FY 05 as
well as forward multiples in the assessment of the future profitability of peer
comparables.


Cement operations are valued on the basis of deriving an average P/E multiple.
Peers are drawn from two pools; global peers who in their view reflect the scope
and reach of OCI‟s operations, including the distribution of cement products to
international markets, along with regional peers within the MENA region, in order
to capture the value generated by manufacturers serving the region‟s
construction boom and those which enjoy the advantages of domestic cost
efficiencies and regulatory advantages. Peers range from global entities such as
Lafarge Cement and Cemex, to domestic producers such as Torah and Asec
Cement. Cement operations deliver an implied value of EGP 31.1 bn to OCI‟s
total multiple based value, or roughly 69% of the total.




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The valuation of OCI‟s construction activities requires some finesse. Few
regional peers exist, and even fewer are listed on regional capital markets.
Global peers, which predominantly operate in China and South East Asia, were
used in our selection. They adopt the multiples of global peers based on the
congruence seen in the size of their order books, target markets, and resources.


They however find that the regions construction boom warrants the inclusion of a
growth factor that accounts for the superior earnings growth expected for
MENA-based contractors, particularly those exposed to the GCC‟s construction
spurt of late. They introduce a „growth differential‟; the difference in future
earnings growth expected for OCI over and above the quoted medium-term
consensus growth of the global sector. They arrive at a sustainable differential of
12% going forward, and introduce an adjustment to OCI‟s implied forward P/E
multiple. OCI‟s construction group delivers a value contribution of EGP 13.73 bn
or 31% of the total, in-line with the trend in bottom-line contributions of OCI‟s two
main business lines.




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Marketing Management            Orascom Pakistan Cement Company




                       Introduction
                           Of
      Pakistan Cement Company




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Marketing Management                         Orascom Pakistan Cement Company


                               Introduction

In November 2004, the OCI Cement Group finalized negotiations for the
acquisition of a controlling stake in Pakistan Cement Company (PCC), formerly
named Chakwal Cement Company, in Pakistan. Formal completion of the
acquisition was completed in March 2005. In July 2005, OCI received regulatory
approval to raise its stake in Pakistan Cement Company to 60.6%. Following a
recent rights issue, OCI ownership in the PCC increased to 69%.


The first foreign investment in the Pakistan cement industry is Orascom
Construction Industries (OCI) acquisition of Chakwal Cement Company in March
2005. Subsequently, the Company name was changed to Pakistan Cement
Company (PCC).


Chakwal Cement Company was originally formed in 1993 but was unable to raise
the additional financing necessary to complete the construction of its production
plant. The renamed Pakistan Cement Company currently owns the property and
equipment for a cement plant capable of producing 2.5 million tons annually.


The production equipment for a single dry process cement plant was supplied by
F.L.Smidth in 1995. The cement plant is located along the Lahore-Islamabad
highway in the Punjab Province of northern Pakistan, some 80 kilometers south
of Islamabad. Construction work was successfully completed in 15 months and
the plant was successfully commissioned in July 2006. PCC is one of the largest
cement producers in Pakistan. The state of the art plant commenced Commercial
Operations in December 2006 with an annual cement production capacity of
2.5m tons, thus becoming the largest production line in Pakistan.


The plant is located at Kalar Kahar, District Chakwal in the province of Punjab,
an area rich in lime stone reserves. The quality of limestone in this area is
considered to be the best in the region.


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In addition to Ordinary Portland Cement (OPC) the plant can also produce
Sulphate Resistant Cement (SRC) with the packaging options of 50 kg bags, 1.5
tons, 2 tons jumbo bags and bulk carriers. The advanced plant laboratory is the
most sophisticated in the industry and ensures consistent high quality of cement.

PCC is proud of its product PAKCEM that is the leader on all quality scales.
PAKCEM is the first cement in Pakistan to comply with European Standards (EN
197) and also far exceeding requirements of Pakistani Standard (PS 232).

PCC‟s aim of being at the forefront in creating foundations for a prosperous
tomorrow is backed by the Company‟s philosophy of providing outstanding value
to its customers, a safe and stimulating work environment for its employees,
superior returns for its shareholders and special focus on social responsibility
and environmental protection.




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Marketing Management           Orascom Pakistan Cement Company




                       CORPORATE
         ORASCOM Construction
                        Industries




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Marketing Management                          Orascom Pakistan Cement Company




                           Corporate OCI


Pakistan Cement Company (PCC) is a subsidiary of Orascom Construction
Industries (OCI), which is a commercial empire worth over $12 billion having its
corporate headquarters in Egypt. OCI is a leading cement producer and
construction contractor active in emerging markets. It is based in Cairo, Egypt,
and employs more than 40,000 people in 20 countries.


As a cement producer, OCI owns and operates cement plants in Egypt, Algeria,
Pakistan, Northern Iraq and Turkey, which have a combined annual production
capacity approaching 21 million tons. Further investments in the UAE, Algeria,
northern Iraq, Turkey, Nigeria, Spain, Saudi Arabia and Syria will increase group
annual production capacity to approx 39 million tons in 2009.


As a contractor, OCI provides engineering, procurement and construction
services on industrial, commercial and infrastructure projects for public and
private customers primarily in the Middle East, North Africa and Central Asia.
OCI has provided services to construct numerous landmark projects including
cement, fertilizer, power and desalination plants and international airports,
seaports and LNG terminals. Currently, OCI is constructing the tallest building of
the world in Dubai.




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Marketing Management        Orascom Pakistan Cement Company




         Corporate Governance &
               Investors Relations
                       Of
                       PCC




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Marketing Management                          Orascom Pakistan Cement Company


                     Corporate Governance

PCC‟s Board of Directors and Management are committed to strong corporate
governance and sound business practices. The statement of compliance with the
Code of Corporate Governance as contained in the listing regulations of Stock
Exchange in Pakistan is reproduced below. The company has applied the
principles contained in the Code in the following manner




   1. The company encourages the representation of independent non-
      executive directors on its Board of Directors. At present the Board
      includes three executive directors, seven non-executive directors and one
      independent non-executive director representing institutional equity
      interest.
   2. The directors have confirmed that none of them is serving as a director in
      ten or more listed companies in Pakistan, including this company.
   3. All the resident directors of the company are registered as taxpayers and
      none of them has defaulted in payment of any loan to a banking company,
      a DFI or a NBFI or, being a member of stock exchange, has been
      declared as a defaulter by that stock exchange.
   4. The casual vacancies occurred in the Board as a result of resignation by
      various directors was filled up by the directors within 30 days thereof.
   5. The company has prepared a 'Statement of Ethics and Business
      Practices‟, which has been signed by all the directors and employees of
      the company.
   6. The Board has developed a vision statement, overall corporate strategy
      and significant policies of the company. A complete record of particulars of
      significant policies along with the dates on which these were approved or
      amended has been maintained.




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   7. All the powers of the Board have been duly exercised and decisions on
      material transactions have been taken by the Board. The board approved
      the remuneration payable to working director and other directors.
   8. The meetings of the Board were presided over by a director elected by the
      board for the purpose and the board met for the approval of all quarterly,
      half yearly and annual accounts. Written notices of the Board meetings,
      along with agenda were circulated at least seven days before the
      meetings. The minutes of the meetings were appropriately recorded and
      circulated.
   9. All the Directors on the Board are fully conversant with their duties and
      responsibilities as a Director. The Directors for any orientation course in
      this respect felt no need.
   10. During the year, the Board approved appointment of Chief Financial
      Officer and his remuneration and terms and conditions of employment. No
      other new appointment was made during the year.
   11. The directors' report for the year ended December 31, 2006 has been
      prepared in compliance with the requirements of the Code and fully
      describes the salient matters required to be disclosed.
   12. The financial statements of the company were fully endorsed by CEO and
      CFO before approval of the Board.
   13. The directors, CEO and executives do not hold any interest in the shares
      of the company other than that disclosed in the pattern of shareholding.
   14. The company has complied with all the corporate and financial reporting
      requirements of the Code.
   15. The Board has formed an Audit Committee. It comprises three members;
      of whom two, are non-executive directors.




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   16. The meetings of the Audit Committee were held prior to approval of
      interim and final results of the Company. The terms of references of the
      committee have been formed and advised to the committee for
      compliance.
   17. The Board is in the process of setting up an effective internal audit
      function.
   18. The statutory auditors of the company have confirmed that they have been
      given satisfactory rating under the quality control review program of the
      Institute of Chartered Accountants of Pakistan, that they or any of the
      partners of the firm, their spouses and minor children do not hold shares
      of the Company and that the firm and all its partners are in compliance
      with International Federation of Accountants (IFAC) guidelines on code of
      ethics as adopted by Institute of Chartered Accountants of Pakistan.
   19. The Statutory auditors or the persons associated with them have not been
      appointed to provide other services except in accordance with the listing
      regulations and the auditors have confirmed that they have observed IFAC
      guidelines in this regard.
   20. We confirm that all other material principles contained in the Code have
      been complied with.




Investor Relations


They believe that their cement business is well positioned to outperform its peers
and create exceptional value for shareholders. Their investor relations‟ team
aims to provide corporate information to all their stakeholders in an open,
accurate and timely manner.




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Marketing Management         Orascom Pakistan Cement Company




                 Board of Directors
                        Of
                       PCC




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Marketing Management                        Orascom Pakistan Cement Company




                          Board of Directors



      Mr. Nassef Onsi Naguib Sawiris (Chief Executive/Chairman)
      Mr. Ahmad Said Heshmat Hassan (Managing Director)
      Mr. Salman Khalid Butt
      Mr. Ahmed Shebl Tolba Daabes
      Mr. Sherif Youssef Mohamed Tantawy
      Mr. Hesham Moustafa Abdel Samie
      Mr. Amr Ali Reda
      Mr. Bilal Hamid Javaid
      Khawaja Mohammad Naveed
      Mr. Mohammad Aman Farooq
      Mr. Shahid Anwar (Nominee NIT)




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Marketing Management    Orascom Pakistan Cement Company




             Storage Environment




GIFT Business School                               57
Marketing Management                            Orascom Pakistan Cement Company




                        Storage Environment




Cement will not deteriorate significantly if it is protected from exposure to
moisture (humid air, rain condensation, etc.). If cement is allowed to absorb
moisture, its setting time is increased and loss of strength will occur.




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Marketing Management             Orascom Pakistan Cement Company




                   Kinds of Cement


                    Ordinary Portland Cement

                   Sulphate Resistant Cement




GIFT Business School                                        59
Marketing Management                            Orascom Pakistan Cement Company


                           Kinds of Cement
There are two kinds of cement manufactured in Pakistan Cement Company,
which are:


      Ordinary Portland Cement
      Sulphate Resistance Cement


                       Ordinary Portland Cement




Ordinary Portland Cement is produced by pulverizing clinker consisting
essentially of hydraulic calcium silicate and containing one or more forms of
calcium sulphate as an inter ground addition.


                          Assured Compliance With



European Standard                  OPC EN 197-1 CEM I 42.5 R



Pakistani Standard                 PS 232/1983(R)




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               Typical Analysis and Physical Properties


The listed tests below are typical and for information only. Analytical details of the
product should be sought in writing from the Pakistan Cement Company.


                                Chemical Analysis



                                                 Standard               Requirement
                             Typical Results
                                                 EN 197-1 BS 12-1996


Loss on Ignition %           2.0                 5.0% Max

Insoluble residue %          0.5                 1.5% Max

Sulphate as SO3 %            2.5                 3.5% Max

Chloride %                   0.05                0.1% Max

Alkali Equivalent %          0.57                0.60% Max



                               Physical Properties



Fineness


Sieve Residue Over 45µm%                         9-11


Fineness by Blaine cm2/g                         3200-3300




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                                   Setting Behavior



                                                        Standard     Requirement
                                 Typical Results
                                                        EN 197-1 BS 12-1996


Standard Consistency %           27.5


Initial     Setting       Time
                                 150                    60Min.
(minutes)


Final Setting Time (hours) 4:30                         10h



    Compressive Strength Performance Mortar EN 196-1 Testing Method




                                                        Standard     Requirement
                                  Typical Results
                                                        EN 197-1 BS 12-1996


Early     strength    –   2days
                                  22.5                  20.0Min. for 42.5 R
(N/mm2)

Standard Strength – 28days                              42.5Min. and 62.5 Max for
                                  50.0
(N/mm2)                                                 42.5 R



                                        Application


The product has been designed to give enhance concrete properties in the fresh
“wet” state with adequate high early strength levels upon setting and hardening.




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                       Sulphate Resistant Cement




Sulphate Resistant Cement is a dark colored Portland cement manufactured
from clinker of low C3A content and undergoes grinding with a reduced
proportion of Gypsum than Ordinary Portland Cement.


Assured Compliance With




European Standard               OPC EN 197-1 CEM I 42.5 N




British Standard                SRC 42.5 N BS 4027-1996




Pakistani Standard              SRC PS 612(R)




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Marketing Management                          Orascom Pakistan Cement Company


               Typical Analysis and Physical Properties


The tests results below are typical and for information only. Analytical details of
the product should be sought in writing from the Pakistan Cement Company.


                                 Chemical Analysis


                                              Standard               Requirement
                           Typical Results
                                              BS 4027-1996

                                              3.0%                            Max
Loss on Ignition %         1.2
                                              4.0% Max

Insoluble residue %        0.5                1.5% Max

Sulphate as SO3 %          1.80               2.5% Max

Chloride %                 0.02               0.1% Max

Tricalcium
                           2.80               3.5% Max
Aluminate.C3A%

Alkali Equivalent %        0.50               0.60

**Mg0%                     1.3                4.0%


                              Physical Properties



Fineness                                                PS 612 (R)


Sieve Residue Over 45µm%              9-11              -


Fineness by Blaine Cm2/g              3100-3200         2800




GIFT Business School                                                            64
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                              Setting Behavior




                                                     Standard Requirement
                              Typical Results
                                                     BS 4027 - 1996




Standard Consistency %        27.0



Initial     Setting    Time
                              150                    45Min
(minutes)


Final       Setting    Time
                              275                    600 Max
(minutes)



    Compressive Strength Performance Mortar EN 196-1 Testing Method



                                                     Standard Requirement
                              Typical Results        EN                197-1
                                                     BS 4027-1996


Early Strength – 2 days
                              19.0                   10.0 Min For 42.5 N
(Mpa)


Late Strength – 28days                               42.5Min and 62.5 Max
                              47.0
(Mpa)                                                for 42.5 N




GIFT Business School                                                       65
Marketing Management                       Orascom Pakistan Cement Company



                       Mortar BS 4550 Testing Method



                              Typical Results     PS 612 (R)



Early Strength – 3 days
                              31.5                15
(Mpa)



Late Strength – 28 days
                              55.0                34
(Mpa)




Application


Use in concrete exposed to severe Sulphate action where soil or ground water
have high Sulphate content.


                  Mortar expansion under sulphate attack




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Marketing Management       Orascom Pakistan Cement Company




                  Vision Statement
                        And
                 Mission Statement




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Marketing Management                       Orascom Pakistan Cement Company




                         Vision Statement


“Strive to exceed the expectations of our stakeholders through sustainable
growth and high quality performance”




                        Mission Statement


“We are committed to providing outstanding value to our customers, a safe and
stimulating work environment for our employees and superior returns for our
shareholders.”




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Marketing Management   Orascom Pakistan Cement Company




            SITUATION ANALYSIS




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Marketing Management                          Orascom Pakistan Cement Company




                         SITUATION ANALYSIS




In order to identify and satisfy customer‟s needs, every company has to take into
consideration its internal and external situation. In that way, by scanning the
company‟s environment and by collecting all the necessary information, a SWOT
analysis can be developed. SWOT analysis is a critical for a company as on one
hand, it enables it to identify its weaknesses and threats and therefore to reduce
them, and on the other hand, to take advantage of its strengths and
opportunities. Strengths and weaknesses are controllable factors that are related
to the company, whereas opportunities and threats are uncontrollable factors
such as economic, social etc. that give information about the industry.




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Marketing Management             Orascom Pakistan Cement Company




                       SWOT Analysis
                            Of
                           PCC




GIFT Business School                                        71
Marketing Management                          Orascom Pakistan Cement Company


                            SWOT Analysis

The Orascom Pakistan Cement Company has the biggest strength that it belong
to the Orascom group of companies. The weakness for the company is that it
was unaware of the management style in Pakistan. The opportunity for the
company is OCI which is a construction company of Orascom group. The threat
for the company is the production capacity of its competitors LUCKY and D.G
cement companies.

                                  Strengths
Orascom Pakistan Cement Company is top rated in its market due to these
strengths.


      Orascom
   One of the biggest strength for the company is that it belongs to Orascom
   which was already an established brand. In Pakistan Mobilink Pakistan‟s
   favorite cellular company also belongs to Orascom.


      Huge Capital
   As the company was new in this business and market it may face problem of
   capital but Orascom Pakistan Cement Company doesn‟t face such a problem
   as they have huge capital and investors due to Orascom.


      Production Capacity
   Strength of the company is its production capacity which is very large. It has
   the latest equipments and machineries used in the production of cement.


      Unique Formula
   Strength of the company in production department is its unique formula of
   cement which was never introduced before in Pakistan. Due to this formula
   their cement is more reliable and long lasting.



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                                  Weaknesses


The company when established it weaknesses but with the passage of time and
from its competitors it learned a lot.


      Unaware from the management style in Pakistan


   As the company was owned by the foreign people they were unaware of the
   management style in Pakistan. They faced many problems in the start with
   management, employees etc.


                                 Opportunities
The company has many opportunities from its beginning.


      OCI
   As it belongs to Orascom and Orascom also have a huge construction
   company OCI which is working on the contract of tallest building in Dubai and
   also had many more contracts allover the world. So a big portion of Orascom
   Pakistan Cement Company was consumed in OCI.


      Few Competitors
   In Pakistan‟s cement market there wasn‟t a huge number of competitors for
   Orascom Pakistan Cement Company. This creates a huge opportunity to
   enter and established in the market.


      Rapid Increase in Population
   In Pakistan the population is increasing rapidly so this provides a great
   opportunity for the company. Because as the population increase rapidly the
   need of construction of houses, markets, buildings etc also increase rapidly
   and in all these construction cement is used.


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Marketing Management                         Orascom Pakistan Cement Company



      Foreigner Company
   As the company belongs to Orascom which is Egyptian Company it also gives
   it a great opportunity in Pakistani market. Because Pakistani people think that
   foreigner companies produce quality and standard goods and services so
   they like to purchase their cement.


                                   Threats


Orascom Pakistan Cement Company has a threat from its competitors.


      Lucky Cement
   The production capacity of Lucky cement is the threat for the company. As
   Lucky Cement is the largest cement manufacturer in Pakistan‟s cement
   market.


      D.G Cement
   Another competitor of Orascom Pakistan Cement Company is D.G Cement
   Company which is also holds a great market share in Pakistan. Its production
   capacity also could be threat for Orascom Pakistan Cement Company in
   future.




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Marketing Management   Orascom Pakistan Cement Company




        Porter FIVE Forces Model




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Marketing Management                         Orascom Pakistan Cement Company




                   Porter FIVE Forces Model




      1. COMPETITIVE RIVALRY


      The competitive rivalry among Cement providers has become intense. But
      now the position of Pakistan Cement Company is at Star position and its
      competitors Lucky Cement and D.G are behind them but to maintain its
      position they have to struggle continuously.




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      2. BARGAINIG POWER OF CUSTOMERS


      Buying power of consumers is high. This is the result of the increasing
      number of independent firms and the pressure of consumer groups and
      the regulator.




      3. BARGAINIG POWER OF SUPPLIERS


      Pakistan Cement Company competed for market share those with
      significant presence, such as local and international markets.




      4. THREAT OF SUBSTITUTE PRODUCTS


      Pakistan Cement Company has threat all the Manufactures of Cements
      but mostly from Lucky Cement and D.G because they are its strong
      competitors.




      5. THREAT OF NEW ENTRANTS


      Pakistani Government has opened up the market to competition. Instead
      of old competitors PCC has also threat of new competitors. WTO is
      another threat for us because it will come free trading internationally.




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Marketing Management   Orascom Pakistan Cement Company




           Market Expansion Grid




GIFT Business School                              78
Marketing Management                        Orascom Pakistan Cement Company




                       Market Expansion Grid




                       Market Expansion Grid


                       Existing                    New
                       products                  products


    Existing            1. Market              3. Product
    markets             penetration            development



     New               2. Market
    markets            development          4. Diversification

                                                                127




Pakistan Construction Company lies both in Market Penetration and Market
Development. Because it is offering Existing products in Existing markets and
also Existing products in the new markets




GIFT Business School                                                      79
Marketing Management          Orascom Pakistan Cement Company




                        SBU’s
                         Of
                       Company




GIFT Business School                                     80
Marketing Management                         Orascom Pakistan Cement Company




                         SBU’s of Company

Orascom Pakistan Cement Company has two main types of products which are
same the difference was in its packing size and the market in which it sold. So
there are two SBUs one to deal and produce within Pakistan one deal and
produce for outside Pakistan.




                                 For Export


SBU for export produce cement bags of 200 kg to 500 kg which is used in foreign
countries. This SBU also had a huge sale and it also supply to OCI which was
the main reason for its huge profits and demand.


                                 In Pakistan


SBU for Pakistan produce only cement bags of 50 kg as it was the standard size
in Pakistan and the competitors also produced the same. It also had a huge
demand and generating satisfactory profits for Orascom Pakistan Cement
Company.




GIFT Business School                                                        81
Marketing Management           Orascom Pakistan Cement Company




                       BCG Matrix
                          Of
                          PCC




GIFT Business School                                      82
Marketing Management                             Orascom Pakistan Cement Company


                                  BCG Matrix
BCG Matrix is consisting of four positions which are:


   1. Question mark
   2. Star
   3. Cash Cows
   4. Dog


These four positions help us to understand the place of our product in the
market.




                             Question mark


In this stage there is high growth rate but relatively low shares. It‟s the first step
to build into stars or phase out. At this stage cash is required to hold market
share in the market. In start when Pakistan Cement Company was launched it lie
in the question mark when it was introduced in the Pakistan‟s Cement market.



GIFT Business School                                                                     83
Marketing Management                           Orascom Pakistan Cement Company


                                  Star


In this stage company has high growth rate and high shares. Company has profit
potential and need heavy investment to grow further in the market. Due to
brilliant strategies, skilled management, expert employees and other facilities the
product of the company now lies in Star. When a product is in star then it is
generating satisfactory profits gaining good market share. Now PCC is lying in
star position and growing day by day.


                                   Cash Cows


At this stage company has low growth rate and high shares. It establishes
successful SBU‟s and produce cash. But the products of PCC are still in Star.


                                  Dogs


In dogs there is low growth rate and low shares and have low profit potential. As
mentioned above products of PCC lies in Star.




               Pakistan Cement Company

                           Efficient                       Inefficient

Effective               THRIVING!                       SURVIVING



                       DIE SLOWLY
Ineffective                                            DIE QUICKLY




GIFT Business School                                                             84
Marketing Management              Orascom Pakistan Cement Company




                   Market Research
                        Internal Analysis
                        External Analysis




GIFT Business School                                         85
Marketing Management                          Orascom Pakistan Cement Company


                             Market research

The company is going to launch its product to almost every district of Pakistan. In
Pakistan the population is increasing rapidly. So there is a great opportunity for
Orascom Pakistan Cement Company to increase their supply and get favorable
response. So the idea to launch its products all over in Pakistan is right. In this
regard we conduct situation analysis which is mainly revolves around two points
which are:


   1. Internal analysis
   2. External analysis


                          INTERNAL ANALYSIS

      Profitability
   The company is going to supply its products in almost every district of
   Pakistan. The idea is profitable because it increase company‟s supply and it
   has a capacity to mess with this huge supply. As the supply increase the
   company market share and profits also increase.


      Increase in Profits
   As the company is producing an out class product and planning to start its
   supply in almost every district and having already a good repute due to
   Orascom. They can generate good profits due to these strengths.


      Lack of Awareness
   Being a newly established company they don‟t have much awareness about
   Pakistani market and management styles they may face problem. This
   problem could be solved if they recruit Pakistani people.




GIFT Business School                                                            86
Marketing Management                         Orascom Pakistan Cement Company


      Durability
   The durability of the product of Orascom Pakistan Cement Company is too
   high as compare to the other products in the market. This durability is due to
   the unique combination of chemicals which are made by the expert chemists.


      Product Life Cycle
   The product life cycle is developed from their sale charts which show that
   their market share is growing and they are generating good profits.




                         EXTERNAL ANALYSIS


                             Micro environment


                       Orascom Pakistan Cement Company


Orascom Pakistan Cement Company is a new company which is going to enter
in the Pakistani Cement market. The company is already engaged in the
manufacturing of its unique product. The Company penetrates the market in the
main districts of Pakistan. Orascom Pakistan Cement Company already enters
market with a unique product which was not introduced in Pakistan before.


                                   Suppliers


The company utilizes local suppliers to supply their products and also to supply
them the raw material. The company also gives 5 % more discounts and
incentives to their suppliers as compare to the other companies in the market.




GIFT Business School                                                             87
Marketing Management                         Orascom Pakistan Cement Company


                                  Competitors


Orascom Pakistan Cement Company has two major competitors Lucky Cement
and D.G Cement.


      Lucky Cement


   Lucky Cement is a well established company and also market leader. The
   production capacity of Lucky cement is also very high. They also have huge
   capital as they are old in the market. As they are well established they have a
   huge numbers of suppliers in Pakistan. They also have loyal customers.
   Being a Pakistani company they are familiar with the market, trends in
   Pakistani market and also with the management style.


      D.G Cement


   D.G Cement is also competitor of Orascom Pakistan Cement Company. D.G
   Cement is also hold a great market share as generating good profits. Their
   production capacity is also very high. They have a satisfactory number of
   suppliers and loyal customers. Due to these factors their market position is
   enough strong. They are well established due to many factors like they are
   old in the market; know the market trends and management style in Pakistan.




GIFT Business School                                                           88
Marketing Management                                Orascom Pakistan Cement Company




                                Macro Environment


It forecasts for all headline macroeconomic indicators, including real GDP
growth, inflation, fiscal balance, trade balance, current account and external debt.


                                    Economic Factors


Economic factors affect the consumer‟s purchasing power. Pakistan is facing
inflation in market. Economic growth has been sported by strong labor market.




       14
       12
       10
       8                                                          CPI (General)
       6                                                          Food Group

       4                                                          Non-Food Group

       2
       0
            Jul-April 2004-05   Jul-April 2006-07




CPI (Consumer price index) averaged at 9.3% in fiscal year 2004-05 and the last
fiscal year ended with an inflation rate of 8.7% in June 2005


Non-Food Group in which our product lands inflation averaged 7.1% in 2004-05
jumped sharply over the proceeding year 3.6%. In the current fiscal year 2006-07
started with non-food inflation at 8.5% in July 2005.


Source: Economic Survey of Pakistan 2006 -07




GIFT Business School                                                               89
Marketing Management                           Orascom Pakistan Cement Company


                               Political Factors


Pakistan Government is a stable from the last five years that promotes investor
to come in Pakistan. Pakistan Government is also trying to make good
relationship with foreign countries. Americans are at number one in investing in
Pakistani markets followed Japan. China is also looking forward to make hold in
16 billion population country. Political stability has opened the gates for investor
from all over the world to come in Pakistan. Consistency in foreign policies by
government since President Musharaf is in charge favors investors to earn at
great margins.
                              Social cultural factors


      Population


   The total population of Pakistan is approximately 16 billion. The population is
   increasing rapidly which increase the number of construction projects in
   Pakistan which is a positive sign for Orascom Pakistan Cement Company.


      Change in life Style


   The life style of Pakistani people is changing rapidly. People are more
   conscious about their house designs. The business of property is also
   grooming in Pakistan that also a good sign for Orascom Pakistan Cement
   Company.


    Technological Factors


   As the world is progressing rapidly the numbers of inventions in the
   technology are also increasing rapidly.




GIFT Business School                                                             90
Marketing Management          Orascom Pakistan Cement Company




                       Analysis
                         Of
             Financial Statements




GIFT Business School                                     91
Marketing Management                            Orascom Pakistan Cement Company




               Analysis of Financial Statements

Pakistan Cement Company Limited is the country's fifth largest cement
manufacturer with a manufacturing capacity of 2.11m tons of cement per annum,
which is 5.9% of the total cement manufacturing capacity of the country. Its plant
commenced commercial operations in December 2006 with an annual cement
production capacity of 2.5m tons. The plant is located at Kalar Kahar, District
Chakwal in Punjab, which is rich in lime stone reserves. The quality of limestone
in this area is considered to be the best in the region. In addition to Ordinary
Portland Cement (OPC) the plant can also produce Sulphate Resistant Cement
(SRC). PCC manufactures cement under the brand name of PAKCEM.


PAKCEM is the first cement in Pakistan to comply with European Standards (EN
197) and also far exceeding the requirements of Pakistani Standard (PS 232).
The company has also one of those seven companies who obtained certification
from Board of Indian Standards (BIS) for cement export to India.


Being the stage of infancy, PCC has to undergo huge losses in the initial years
under discussion. PCC has not been able to perform well so far. However, during
16 months of operation, the company got the status of being the country's
second largest cement exporter, exporting 276.9k tons of cement in 5mths'08
witnessing some progress in the overall performance. It is expected that the
company will soon move towards the stability.


In Fiscal Year 2006, the company achieved many technical milestones. The
company's kiln started operation in July. In cooperation with FLSmidth, PCC
upgraded its capacity to 2.4mntpa. Moreover, it has also finalized the contract for
its coal mill project that is expected to be operational soon.




GIFT Business School                                                            92
Marketing Management                           Orascom Pakistan Cement Company



Currently there are 18 cement producers in Pakistan with 28 plants. PCC has a
very marginal market share of 4%. Constant innovation, expansion and
investment can lift up the share for PCC in future.


The company is listed on all the three stock exchanges. Major shareholders of
the company include Pakistan Cement Holding Limited and Camden Holding
PTE Limited currently own 44% and 25% shares respectively. Orascom
Construction Industries is the parent company of the Pakistan Cement Holding
and Camden Cement Holding.


Recently, Lafarge S.A., a world leader in cement, aggregates, concrete and
gypsum, operating in over 70 countries, acquired entire cement operations of the
Orascom Construction Industries Cement Group. The group includes all
aggregates, ready-mix concrete and cement bags manufacturing operations.


It owns and operates cement plants in Egypt, Algeria, Iraq, Pakistan, UAE,
Turkey and Spain, which have a combined annual gross production capacity
approaching 35m tons. New investments in Nigeria, Saudi Arabia, Syria, DPRK
and South Africa will increase the annual gross production capacity to 45m tons
by 2010.


Under the terms of agreement, OCI will receive a total payment of euro 8.8b (US
$12.9b) and Lafarge will assume euro 1.4b (US $2.0b) of Orascom's debt. The
transaction is subject to the approval of the shareholders and is expected to
complete by the end of March 2008. Moreover, through the acquisition, Lafarge
got access in Pakistan's emerging cement market via 69% stake in Pakistan
Cement.




GIFT Business School                                                         93
Marketing Management                           Orascom Pakistan Cement Company



                             RECENT RESULTS


During the first half of Fiscal Year 2007, cement industry dispatched 12.8m tons
of cement, which was 33% higher than the 9.6m tons for the same period last
year. Domestic demands registered a growth of 21% while exports sharply rose
by 172% as compared to the same period last year. On the other hand, capacity
utilization level declined as the industry capacity has increased from 26mntpa in
June 06 to 32mntpa in June 2007. As a result, industry utilization levels have
dropped to 82% with a market price level touching as low as Rs 4000/ton during
June 07.


The company declared Rs 788m loss after tax (LPS: Re 0.69) in 9mths'07
compared to loss after tax of Rs 70m (LPS: Re 0.06) in the corresponding period
last year, depicting a significant decline due to low retention prices and high
financial charges. As company started its commercial production on August 28
2006, last comparable period i.e. 9mths'06 showed only one month of operations.
However, during the period under review, sales volume figures are very
encouraging and local sales volume stood at 1.29m tons while cement exports
increased significantly to 0.28m tons in 9mths'07.


Since the start of operations, Pakistan Cement Company Limited is actively
finalizing the ancillary facilities development and infrastructure projects to
facilitate smooth operations. Work on the coal conversion project is at its final
stages, which after operation will bring substantial savings in production cost as
compared to the furnace oil. The company has shown a very weak liquidity trend
due to its infancy and only 1-1/2 years of operation. There is an acute dearth of
liquid assets such as cash, bank balances and other current assets which
reflected in the company's less than 0.5 current ratio.




GIFT Business School                                                           94
Marketing Management                             Orascom Pakistan Cement Company



Fiscal Year 2006 has witnessed a sharp downturn in the current ratio, mainly on
account of very high trade payables and short term borrowing. Once the
company starts its operations in a sustainable manner, only then it will be able to
come out of this impasse. Presently, the company is facing worse liquidity
position as it is well below the industry average trend. Q3'07 CR is slightly above
1 showing that the company has started to take serious steps towards improving
its liquidity position.


Pakistan Cement has no history of sales as such. Fiscal Year 2006 started
showing some results with some sales and that too was of nominal amount. In
real sense, PCC has not demonstrated asset management ability as such as it
started its commercial production only 1-1/2 years ago. Sales/Equity ratio has
risen by a negligible amount in Fiscal Year 2006 but remained well below the
industry average. It has shown a sharp increase in Q3'07 mainly on the account
of numerator effect of higher sales. TATO and ITO have also shown
improvement in the 3rd quarter of Fiscal Year 2007. The company has now
started the commercial production and likely to show some positive results in the
coming years. The company can use better marketing strategies to develop its
reputation in the market. In this regard, its brand PAKCEM can prove to be a
competitive edge if it capitalizes on it prudently.


On March'05 there was a reversal of 767 million being waiver of interest on
Sojitz loan as per revised agreement between Pak Cement and Pakistan Cement
Holding Limited which reflected positive impact on the earnings of the company
which otherwise would have been negative. Major financing for PCC comes
through long-term debt and that has subsequently risen due to development and
infrastructure projects. Furthermore, the debt paying ability has improved slightly
as the company started its cement production. Sales spurred, although at a lower
rate of growth.




GIFT Business School                                                            95
Marketing Management                           Orascom Pakistan Cement Company



A slight deviation from this trend can be witnesses in the Q3'07 but this cannot be
sufficient to say that the company has decided to lower its reliance on debt
financing unless we have the year end figures. As a nascent company, it has
witnessed negative growth in the initial years, as zero sales and zero inventories
signify zero production for the company.


In FY06, when the PCC started its production and with its commencement, the
company showed negative profit margins that are way too lower than the industry
trends. ROA and ROE are positive in FY05 as a result of waiver of interest and
penal charges. After that ROA and ROE have posted a negative growth.


Pakistan Cement was under construction phase during the year FY'06 and
started its commercial production in Dec'06, therefore no dividends were
declared during the year. As for the previous years, the company doesn't have a
performance history because of being in the inception stage. EPS of the
company is very low and worse than the industry. It has been negative in FY06
owing to huge losses due to low sales. The positive EPS (Rs 1.09) in FY05 can
be attributed to the waiver of interest and penal charges on long term financing
expensed during FY04 otherwise the EPS would have been negative by Rs 0.27.


Similarly price-earning ratio has also been negative till FY '07 signifying the poor
performance and lack of investors' confidence in company's shares. In Q3 '07
however, one can see an overall better picture as both EPS and p/e ratios have
been positive showing that perhaps the company has improved its performance
and is trying to win the investors confidence. At the current price of Rs 12.45 per
share (as on 19th Dec, 2007), PCCL seems undervalued, trading at a low P/BV
multiple of 1.20 (based on book value of Rs 10.36 as on Sep'07).




GIFT Business School                                                             96
Marketing Management                           Orascom Pakistan Cement Company




                             FUTURE OUTLOOK:


The future outlook of the company seems positive. In 3Q'07, PCCL has
successfully commissioned its local coal firing system that has fulfilled the partial
requirements of fuel substitution while the work on imported coal firing is in final
stage after which company can substitute 100% of its fuel requirement with coal,
resulting in cost saving.


A lot of opportunities exist for Pakistan Cement. Having a sizeable production
base will be a favorable point in times of lower retention prices and while taking
advantage of the higher export prices. Through its location in Punjab, PCC can
tap the Indian and Afghanistan markets. Its linkage with Lafarge may lead to its
better perception in the international market and hence a competitive advantage.


In future, PCCL is likely to get benefit in cement exports to Indian and other
regional markets because of the presence of well-reputed brand name of Lafarge
in these markets.


The impact of Budget 2007-08 will be positive for the cement sector. GOP has
allocated Rs 520 billion in PSDP, which is 32% higher than the preceding year.
Out of the total PSDP allocation 52% of PSDP allocated for Infrastructure
Development Program against 30% allocation last year.


Thus, the cement demand will further "cement its place". Higher PSDP bodes
well for the cement demand, particularly due to the infrastructure development
component that requires higher quantities of cement. GOP has ambitious plans
regarding the public sector development that includes highways, building of
houses and canals besides building of new dams like Bhasha Dam for which Rs
500 million has been allocated.




GIFT Business School                                                              97
Marketing Management                           Orascom Pakistan Cement Company



This all will result in better-utilized capacity by the Cement industry along with an
expected increase in demand from 11.3mntpa to 13.7mntpa. On the other hand
Central Excise Duty (CED) has not been reduced as was expected. The Cement
manufacturers have therefore, indicated their intentions to pass on much of the
costs to the end users.


Furthermore, the exemption of duty on bitumen suggests that the GOP no longer
interested in cemented roads, which might lead to a nominal decrease in
demand. All in all, the industry is going to fare reasonably well in the near future
in consequent of the growing avenues, which will boost the demand for cement.




GIFT Business School                                                              98
Marketing Management        Orascom Pakistan Cement Company




     TACTICS (MARKETING MIX)
                       OF
                       PCC




GIFT Business School                                   99
Marketing Management                        Orascom Pakistan Cement Company


                               PRODUCT

    Branding
   The company already had a well established and well known brand
   Orascom.


    Labeling
   The brand will be labeled as under:




    Variety


   As PCC is a cement company so in this field there wasn‟t much variety. But
   PCC has variety in the cement bags. It produce 50 kg bag to sale in Pakistan
   and also produce a bag of 200 to 500 kg to export to OCI and other
   companies and countries.


    Quality


   The quality of product produced by PCC is fibulas. Their product is more
   durable then the others in the market. Their product has a unique formula
   which was created by a superb combination by the expert chemists.

    Guarantee
   Due to its unique combination of chemicals the cement manufactured by the
   Orascom Pakistan Cement Company is guaranteed to be more durable then
   the others in the market.



GIFT Business School                                                       100
Marketing Management                              Orascom Pakistan Cement Company


                                       PRICE

The price of PPC Cement is same as the price of other market leaders 230 R.S.
The price is fluctuating as the inflation in Pakistan is very high. PCC targets first
the large districts of Pakistan because in large districts construction rate is
increasing rapidly. Price also varies from district to district.


                              Pricing Strategies


    District Vise


   PCC use the strategy to price its product according to districts. For example
   the price in Lahore is different from the price in Sawabi.


    Season Vise


   PPC also use the strategy to change its product‟s price according to season.
   In winter and rainy season the price is low as compare to the price in summer
   or spring.


                                 PROMOTION

                             PROMOTIONAL MIX

    Advertising

   PCC advertise its product mostly through print media. They give ads on the
   newspaper after 2 to 3 months. For that they purchase a whole page for their
   ads which is enough expensive rounds about 50,000 R.S.



GIFT Business School                                                             101
Marketing Management                           Orascom Pakistan Cement Company


    Public relations

   Involves developing positive relationships with the organization, media and
   public. The art of good public relations is not only to obtain favorable publicity
   within the media, but it also involves being able to handle successfully
   negative attention. It also emphasizes on the relation with its suppliers.


    Sales Promotion

   PCC develop the strategy to attract the local suppliers. It‟s their strategy to
   give 5 % more incentive and discounts to the suppliers as compare to other
   companies in Pakistani cement market. This strategy really works and PCC is
   now 5th largest manufacturer of cement in Pakistan. PCC also contract
   Government contractors by giving them 3 % discount more than the other
   companies in the market. This also promotes their sales.


    Direct Mail

   It is the sending of publicity material to a named person within an
   organization. There has been a massive growth in direct mail campaigns over
   the last 5 years. PCC send its sample to the main construction companies in
   Pakistan and also to the Government contractors and Government
   construction departments. By personalizing advertising, response rates
   increase thus increasing the chance of improving sales.


                                    PLACE
PLACE is a common and major factor of any business. It is essential need to
choose the right location regarding the nature of business. PCC first start its
supply in the main districts and then with the passage of time supply to almost
every district of Pakistan. Now PCC is supplying its product to more than 80
districts in Pakistan.



GIFT Business School                                                             102
Marketing Management                              Orascom Pakistan Cement Company




                               PLACE STRATEGY

Refers to how an organization will distribute the product or service they are
offering to the end user. The organization must distribute the product to the user
at the right place at the right time. Efficient and effective distribution is important if
the organization is to meet its overall marketing objectives.


There are two ways for PCC to sale its products. One is that they directly sale its
product to the customers for that they have to open their outlets in every district.
The other is that they have contract with the local suppliers to sale their product
and get their commission. According to their product the second option suits
them and PCC choose it.




GIFT Business School                                                                  103
Marketing Management   Orascom Pakistan Cement Company




      MARKETING STRATEGIES




GIFT Business School                             104
Marketing Management                           Orascom Pakistan Cement Company




                    TARGET MARKETING STRATEGY


Pakistan is a country of 16 billion population and having four provinces. Punjab,
Sindh, Balochistan and N.W.F.P. In these four provinces there are more than
hundred districts. PCC main target on Punjab as it had highest number of district
and income level, construction level and population level increase rapidly in
Punjab. As the consumption and income level in Punjab is high PCC keep its
price high in Punjab‟s districts as compare to others.


              MARKETING SEGMENTATION STRATEGY


PCC marketing strategy based on the difference between the districts in
Pakistan. Because every district have its own construction level and income
level. PCC cement is for every district and every one can afford it. So PCC
segment its market according to districts in Pakistan. PCC analyzed the
consumption level of cement in four provinces. According to the analysis they
came to know that the consumption level of cement in Punjab and Sindh is
comparatively high. They further analyze the consumption level according to
districts. According to their analysis they segment their target markets. In Punjab
they target Lahore, Faisalabad, Rawalpindi and Gujranwala etc. In Sindh they
mainly target Gawader, Hyderabad and Karachi etc.


                  MARKETING POSINING STRATEGY


PCC position its product in customer‟s mind as quality and durable product. They
are also exporting their product to many companies. None of the competitor is
exporting its product at the level PCC is doing. Pakistani people are already
impressed from export quality products this create a very good repute of PCC in
the customers mind.



GIFT Business School                                                           105
Marketing Management                       Orascom Pakistan Cement Company



                         COMPETITIVE STRATEGY


Competitor‟s strategies are most important to keep in mind while setting
strategies. PCC main competitors are Lucky and D.G cement. PCC is offering
export quality product at local price.


          Assessing competitor’s strengths & weaknesses


When we assess our competitor‟s strengths and weaknesses we find out some
strengths and weaknesses of our competitors.


Strengths


      Good brand name
      High market shares
      High production capacity




Weaknesses




      Common formula of cement
      No incentives to suppliers
      Local quality product




GIFT Business School                                                  106
Marketing Management                           Orascom Pakistan Cement Company




                       PUSH Vs PULL STRATEGY


                         USING PUSH STRATEGY


PCC will use PUSH strategy by having contracts with the local suppliers in
Pakistani market. The customers will come to know about our brand through
advertising and sale promotion.


             MARKETING COMMUNICATION STRATEGY


By integrating all messages in all media, we will communicate the brand name
and the main points of product differentiation, especially. The agency will
coordinate public relation effort to build the PCC’s brand and support the
differentiation message. To attract market attention and encourage purchasing,
PCC is offering 5% discount on sale of PCC’s products. To attract, retain and
motivate customer we will penetrate with push and niche strategy.




                  MARKETING RESEARCH STRATEGY


Using research, PCC is identifying the specific feature and benefits that its target
marketing segments value. Feed back from market tests, surveys and focus
groups will help to develop the PCC market share. PCC is also measuring and
analyzing customer attitudes toward competing brand and products. Brand
awareness research will help to determine the effectiveness and efficiency of
their product in the market.




GIFT Business School                                                            107

								
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