INTRODUCTION: Lucky Cement Limited sponsored by (YB) Yunus Brothers Group is the late comer into the cement industry of Pakistan. The Company started its operation in 1996 with production capacity of 1.2 mtpa at its mother plant in Pezu NWFP which was subsequently upgraded to 1.5 mtpa in 1999.
Lucky Cement Limited emerged as the largest manufacturer of cement in Pakistan in 2004-05 when the Company undergone a massive expansion plan of 5 mtpa in one go both at Pezu plant with 2.5 mtpa and a new green field project of 2.5 mtpa in Karachi.
The project of Karachi was setup with a vision of cement export to the regional countries through sea route. Immediately after getting a good response in export markets the Company decided to add another line of 1.25 mtpa at Karachi which has also started trial operation a couple of days back. The total capacity of Company has reached to 7.75 mtpa which is almost double than the second largest player.
Lucky Cement has given a new dimension to the industry for export of cement from the country despite of several bottle necks. The management decided to setup its own export related infrastructure on self finance basis and purchased 75 bulkers and a ship loader through which the Company started loose cement export first time in the history of Pakistan in February 2007. The encouraged performance of loose cement exports further motivated the management to invest for storage facility at port as buffer stock together with the fastest loading machinery for quick turn around to avoid waiting and loading time of sea going vessels.
STORAGE AND LOADING TERMINAL:
The total storage capacity of this terminal is 24,000 tons of loose cement which is divided into 4 Nos. steel fabricated silos with individual storage capacity of 6,000 tons each.
The loose cement is first loaded / pumped into the storage silo(s) as buffer stock at port through compressors from the Bulkers (Specialised Cement transport trucks) bringing loose cement from the cement manufacturing plant of the company located at main Super Highway Gadap Town, Karachi approx 90 Kms from the Karachi Port.
On arrival of ships, the loose cement is pumped directly into sea going vessels from storage facility through complete automatic machinery operated through PLC from the Central Control Room.
The loose cement is fluidised (mixed with air) through the aerated floor of the silos to behave like liquid and then it is pumped into the hatches of sea going vessels under complete piping system connected with a ship loader through pneumatic air generated from the heavy compressors.
The loading capacity of this terminal is 10,000 to 12,000 tons per day of loose cement depending upon the size and construction of vessel(s).
OUR VISION:
To be the market leader in domestic and exports from the Country by supplying high quality cement at the most competitive rates with customers' satisfaction and discharge our social responsibilities for the benefit of under privileged.
OUR MISSION:
To be the largest and fastest growing cement producer using state-of-the-art technology at the most competitive cost by utilising our experience for maximising profits for our shareholders.
OUR STRATEGY:
Lucky Cement has been focusing on a four tier business strategy; briefly narrated as under:
Establishing and Strengthening Export Markets:
Export is our vision and we believe to always explore new export markets for long term sustainability of our export business. The Company has been successful to establish its brand in more than 22 countries of the world because of its high quality product.
Economy of Scale:
The economy of scale enables us to maintain our overhead cost and provide us an edge over our other competitors due to lower fixed cost per ton.
Cost Reduction with Efficient Operation:
We constantly monitor our operational process for increasing efficiency and reducing cost. The hybrid technology adopted for new expansions reduce our capital expenditures significantly without compromising on efficiency and quality. Conversion of power generators from oil to gas and the project of power generation through heat recovery will drastically reduce our cost of production. Resort to export refinance will also reduce our financing cost. The Company is prepared to adapt the cyclical nature of cement industry through scalability of production process with competitive cost structure.
Strong Infrastructure:
We believe that efficient and strong infrastructure is a must not only for efficient handling and loading of cement but also for significant reduction of cost due to atomised port operation without human intervention.
EXPORT PERFORMANCE:
Lucky Cement has made a significant contribution for the export of cement and earning of precious foreign exchange for the country which was needed badly. The Company enjoys 35% share in the overall export of cement from the country.
The export performance of the Company for last three years is as under:
Lucky Cement produces very high quality cement which is recognised as the best quality and high grade cement in the international market. The brand of Lucky Cement has been exported to over 22 countries of the world.
A PIE CHART SHOWING REGION WISE DISTRIBUTION IS AS UNDER:
PROFESSIONAL AND EXPERIENCED MANAGEMENT:
The management of Lucky Cement comprises of very experienced, highly dedicated and committed professionals, most of them have been working with the Company since inception.
CONTRIBUTION TO THE NATIONAL ECONOMY:
Lucky Cement has been playing significant role for the uplift of our economy by contributing billions of rupees into the national exchequer in the shape of sales tax, excise duty and income tax. The Company has been earning precious foreign exchange for the country through export proceeds. The Company also brought foreign investment of US $110 million in the year 2008 against the issuance of GDRs in the international market.
YB GROUP:
-- Yunus Brothers Group ("YB") was founded in 1962 as a commercial exporter of cotton yarn to far-east countries under the dynamic leadership of late Mr Abdul Razzak Tabba.
-- Currently, YB is the largest export house of Pakistan and enjoys excellent reputation in the international markets
-- YB is a leading textile house and is engaged in diverse aspects of textile manufacturing consisting of spinning, weaving, processing, finishing and stitching
-- Besides playing a leading role in textile, YB has diversified its activities and owns today the largest cement manufacturing plant in the country with current production capacity of 6.5 million tons per annum, the capacity of Lucky Cement will be increased to 7.75 million tons per annum after its recent expansion plan.
-- YB is also engaged in international trading of various commodities
-- YB has recently entered into real estate development. The 1st project is under construction (Sofitel Tower Shopping Mall in Karachi).
-- YB has also established Ready Mix Concrete plant ie first of its kind in Pakistan.
-- YB actively participates in social development through a number of foundations and charitable trusts by using financial resources of group companies. Some of the most prominent foundations and trusts sponsored by YB are:
-- Fellowship Fund for Pakistan - a charitable trust formed to provide opportunities to the country's highest quality thinkers
-- Aziz Tabba Foundation - responsible for community welfare projects
- -Aziz Tabba Dialysis Centre - provides free of cost treatment to the underprivileged
Tabba Heart Institute - operates a 120 bed state-of-the-art cardiac treatment facility, the most modern hospital in Pakistan in terms of infrastructure and equipment.
-- In acknowledgement of the group's social services, the Government of Pakistan in 2005 awarded the late chairman of YB, Mr Abdul Razzak Tabba, the highest civilian award of 'Sitara-i-Imtiaz'