Fauji Cement is one of the leading manufacturers of cement in Pakistan carrying 8 percent of cement production in the sector. The company was incorporated in1992 and started production operations in 1997 with a capacity of 3,150 tons per day. The plant is located in Jhang Bahtar, Punjab. The company increased capacity in 2005, adding 735 tons per day to existing capacity to bring it up to 3,885 tons per day. FCCL introduced another production line in 2011 with a capacity of 7,560 tons per day. Annual production today stands at 3.43 million tons in cement and 3.27 million tons in cement making, it the fourth largest cement producer in Pakistan.

Delivering to the Northern region; its local markets are focused in Punjab, KP and adjoining areas. Major export markets have been in Afghanistan and South Africa with Sri Lanka and India from the region. Some of the projects FCCL have contributed to include Mangla Dam Raising Development Project, Neelum Jhelum Hydroelectric Power Project, Muzaffarabad, the Islamabad-Peshawar motorway, various Bahria Town projects, Pak Gulf Construction, Karakoram Highway Islamabad.

The company is listed on the stock exchange. Expansion-led growth: operational and financial performance FCCL has been expanding in tandem with the growing local demand. It enhanced capacity from 1.16 million tons to 3.42 million tons in 2011, which doubled net sales in 2012 and has had an upward surge in terms of revenues and profits. The company has further expansion plans keeping in view the projected growth in demand given the upcoming CPEC.

Production

Clinker Production increased by 120 percent in the past six years, going from 1.06 million tons of production in FY10 to 2.34 million tons in FY15. Cement production grew by 126 percent standing at 2.65 million tons in FY15. Production went up by 82 percent between FY11 and FY12 owing to the increased capacity.

Dispatches

Dispatches grew by 149 percent in the past six years. Local dispatches grew by 37 percent post-expansion between FY12 and FY15; standing at 2.2 million tons in the last fiscal, up from 1.6 million tons in FY12. Local dispatches in FY10 stood at 755 thousand tons and between FY11 and FY 12 grew by 157 percent.

Exports have been consistently falling since 2012; a total decrease of 25 percent between FY12 and FY15. Its share in total dispatches has gone from 24 percent in FY12 to 15 percent in FY15. The last fiscal saw a decrease of 8 percent with exports standing at 384 thousand tons in FY15, down from 416 thousand tons.