DG Cement March 2011
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![Page 1: DG Cement March 2011](https://reader035.fdocuments.us/reader035/viewer/2022081717/54f5bf454a7959e9378b4e00/html5/thumbnails/1.jpg)
D.G. Khan Cement Co. Ltd.
CORPORATE BRIEFGINGLAHORE STOCK EXCHANGE
March 24th 2011
D.G Khan Cement Company- Dera Ghazi Khan Plant
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NISHAT Truly Diversified Conglomerate
•MCB Bank Limited(The 3rd largest Bank in Pakistan)
•Adamjee Insurance Company Limited(The largest insurance business)
• Security General Insurance Co. Limited
Financial Services
• Nishat Mills Limited(The largest composite Unit in Pakistan)
• Nishat (Chunian) Limited(The largest composite Unit in Pakistan)
Textile
• D.G. Khan Cement Company Limited(The 2nd largest in Pakistan)
• Nishat Paper Products Company Limited
Cement & Cement Sacks
• Nishat Power Limited (200MW)
• Nishat Chunian Power Limited (200MW)
• Lal Pir Power Limited (362MW)
• Pak Gen Power Limited (365MW)
Power Generation
• Nishat Hotels & Properties Limited• Nishat Developers (Pvt.) Ltd.• Pakistan Aviators & Aviation (Pvt.) Ltd.
Others
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BRIEF HISTORY
• Established in 1978 as private limited company by State cement corporation of Pakistan
• Cement production started in 1986 with an installed capacity of 2,000TPD
• Nishat acquired in May 1992 under the privatization initiative of the Govt.
• Company listed on Stock Exchange September 15, 1992
• Optimization of production capacity in 1993 by 200TPD, new capacity 2,200TPD
• Set up a captive power unit in the name of D.G. Khan Electric Company in 1995-(23.84WM)
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BRIEF HISTORY
• Capacity Expansion by 3,300 tons initiated in 1994. Cement production Started in June1998. Total Clinker production capacity 5,500TPD.
• Coal Firing project, Furnace oil was being replaced with Coal FY 2001.
• Capacity optimization of 500TPD and 700TPD in Unit-1 & Unit-2 respectivelyFY 2005-06.
• New Gas fired Power plant Installed in FY 2006. (25.50MW)
• Total Captive generation Capacity 49.34 MW.
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BRIEF HISTORY
• Greenfield Cement plant at Village Khairpur Dist. Chakwal (KHP Plant). Single LargestCement plant in the country with 6700TPD Clinker production.
• KHP Cement Plant Started production in June 1997. Total Investments US$ 260 million.
• Project is equipped with Duel fuel Power Generation plant of 33MW.
• Installed World’s largest vertical cement grinding mill at D.G. Khan Site. Totalinvestment of US$ 25 million (March 2009)
• The project substantially save on account of power consumption in cement grinding.Annual savings of about Rs. 200 million @ Current WPDA Tariff
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BRIEF HISTORY
• Initiated first ever Power generation project using Waste Heat of cement plant at DGK Site. Project Started operations in June 2010.
• Total Project cost is US$ 26 million. Capacity 10.4MW.
• Alternative Fuel project. Trial & first phase of RDF ( Refused Derived Fuel) has already completed at KHP plant. Total Cost US$ 5.0 million. (February 2011)
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1992 1994 1998 2005 2007
2,0
00
2,2
00
5,5
00
6,7
00
13,4
00
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000M.Tons
Years
• Capacity in 1992 = 2000 TPD(At the time of acquisition)
• Current Capacity = 13400TPD
• Capacity Enhancement = 570%(In only 19 years)
Capacity Additions (TPD)
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• Capacity in 1992 = 0 MW(At the time of acquisition)
• Current Capacity = 92.34MW
Power Generation Capacity (MW)
23.8
4
49.3
4
82.3
4
92.3
4
-
10
20
30
40
50
60
70
80
90
100
1996 2005 2007 2010
MW
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OPEARATING PERFORMANCE & MARKET SHARE
YEARS` INDUSTYRY(M. Tons)
D.G. K.C(M. Tons)
Market Share
Capacity Actual Capacity Actual Capacity Actual
1992 8,890,950 7,711,864 630,000 608,363 7.09% 7.89%
1995 10,173,450 8,380,065 693,000 698,063 6.81% 8.33%
1999 16,410,450 9,620,882 1,732,500 1,115,288 10.56% 11.59%
2005 17,908,550 16,353,300 1,732,500 1,826,519 9.67% 11.17%
2008 37,156,750 30,293,431 4,221,000 4,401,636 11.36% 14.53%
2009 41,760,499 31,285,807 4,221,000 4,027,633 10.11% 12.87%
2010 44,823,500 34,207,973 4,221,000 4,983,889 9.42% 14.57%
• Established Brand and Customer loyalty with the Brand
• Strong and effective Marketing and Sales Network across Pakistan
DGKC Market sharein local market was17% in FY 2010 against14% in FY 2009
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2005 2006 2007 2008 2009 2010
17
,908,5
50
20,9
54,9
12
30,6
22,3
25
37,1
56,7
50
41,7
60,4
99
44,8
23,5
00
91.3%87.9%
79.1%81.0%
74.9% 76.3%
102.8% 101.8%
110.2%
102.6%
93.6%
118.2%
0%
20%
40%
60%
80%
100%
120%
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Cap
acit
y U
tilizati
on
M.Tons
Years
Industry DGK
DGKC capacity utilization iswell above the industry’saverage capacity utilization.
Capacity Utilization-Industry vs. DGKC
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1,39
2,06
5
1,31
6,63
2
1,53
6,76
5
2,04
8,11
4
2,37
5,48
6
3,64
4,55
9
3,18
5,80
1
4,10
3,86
1
41,4
86
171,
345
290,
205
166,
241
153,
477
757,
077
1,20
0,89
8
883,
703
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2003 2004 2005 2006 2007 2008 2009 2010
M.TONS
YEARS
DGKC- Local vs. Exports Sales
DGKC Market sharein local market was17% in FY 2010 against14% in FY 2009
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FINANCIAL HIGHLIGHTS
1992 1995 1999 2005 2008 2009 2010
Revenues 740 1,498 2,259 5,279 12,445 18,038 16,275
Profit/(loss) After tax 82 386 (580) 1,682 (53) 525 233
Total Assets 1,211 4,010 8,800 18,016 51,992 47,723 47,046
Total Equity 670 3,110 3,218 9,318 30,080 20,918 26,519
Rs. In Millions
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2010 2009 %
Clinker Production 4,684,379 3,946,101 19 %
Cement Production 4,908,593 3,877,296 27 %
SALES : 4,977,944 4,029,002 24 %
Local Sales 4,101,801 2,828,103 45 %
Exports 876,143 1,200,898 (27) %
Production & Sales FY 2010
• Kiln run factor (Days):
FY 2010 FY 2009
• DGK-Unit-1 334.11 322.00
• DGK-Unit-2 334.14 276.00 ( Set record in FY 2008 for 342.99 Days)
• Khairpur Plant 346.51 282.50 ( Set new record in Pakistan in FY 2010 for
346.51 Days Kiln operations)
• Avg. Sales in FY 2010 grew by 15% in the country whereas DGK sales in the local market grew by
45%.
• Total Industry Sales increased by 9% whereas DGKC sales augmented by 24%.
M. Tons
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Operating Results FY 2010
2010 2009 %
Net Sales 16,275,354 18,038,209 (10) %
Gross Profit 2,705,690 5,679,734 (53) %
Operating Profit 2,261,163 3,383,258 (33) %
Finance Cost 1,902,760 2,606,358 (27) %
Other Income 911,672 770,137 18 %
Profit Before Tax 358,493 776,900 (54) %
Profit After Tax 233,022 525,581 (56) %
• Sales revenue decline due to price war in the local market despite volumetric growth during FY 2010.
• Avg. Sale price plunged by 27% during FY 2010 vs. FY 2009
Rs. In Millions
• DGK invested Rs. 2.812billion in shares of listedcompanies.• Market of value ofshares as on March 22,2011 Rs. 16.012 billion.
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Future Projects
• Objectives :• Reduce dependency on imported fossil fuels • Reduce cost of Production / Power generation• Maintain Market Share
PROJECTS• Alternative Fuel Projects (Refused Derived Fuel- RDF)
• RDF Project-Extension at KHP Cement Plant• RDF Project- DG Khan Site Phase –I
• Power Generation• Waste Heat Recovery-Khairpur Cement Plant (8.5 MW)
• Expansion Plans• Greenfield Cement plant- Hub Cement project• Off shore Cement plant/ Cement grinding mill
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ONGOING PROJECTS
Power Generation-Waste Heat Recovery-
KHP PLANT
• The projects will reduce Co2 annually by 60,000 tons.
• Project entitles to annual carbon credits of Rs. 100 million Approx.
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ONGOING PROJECTS
Alternative Fuel
Project (RDF)
Investments
US$ 15M Reduce Dependency on fossil fuels
Payback period 6
years.
• The project will reduce Co2 annually by 200, 000 tons.
• Projects entitle to annual carbon credits of Rs. 330 million Approx.
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Nishat Paper Products Co. Ltd.
• Subsidiary of D.G. Khan Cement Co. Ltd.
• Vertical Integration for supply of Packing Materials
• 2nd Largest Sack Converting plant in the Country
• Annual Capacity of 150 millions Bags (75M x 2)
• Most Modern State of the Art Production Lines from Windmoller & HolscherGermany
• Total Investment of US$ 20 million
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Nishat Paper Products Co. Ltd.
• Major Customers :• D.G. Khan Cement Co. Ltd.• Maple Leaf Cement • Lafarage Pakistan
FY 2010 Financial Highlights
• Annual Sales Rs. 1,713 million.
•Profit After tax of Rs. 133 million
• Bestway Cement • Atock Cement• Dewan Cement
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Corporate Social Responsibility
• Community Welfare Services: • Heath Care:•A free medical Center and Hospital to local residents of the area.• Free Ambulance facility for the local residents.• Daily treatment of 180-200 patients of nearby area.
• Education & Training:• Running 2 schools at DG Khan site for employees and local residents. (About 500 Students)
• Bloomfield School (English Medium)• Dera Model School (Urdu Medium)• Spend Rs. 11.292 million in FY 2010
• Training and apprenticeship facilities to engineering students
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Corporate Social Responsibility
• Community Welfare Services: (Contin…..)
• Drinking Water: DGKC providing water for drinking to local residents• Infrastructure: DGKC continuously work for social uplifts in the area, likeimprovements in road networks.
• Environment :• DGKC plant’s run under strict Environmental Management Control System.• Installed most modern equipments for collection of dust & waste gases.• Comply with both International and Pakistani Environmental Standards.• Planted more than 30 thousand plants in Khairpur Cement plant.
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Corporate Social Responsibility
• Occupation Safety and Health : • DGK is a conscious employer and placed stiff occupational standards i.e. :• to prevent injuries and damage to employees, contractors, visitors and company’s assets.• to make work place more safe
• Contribution to Flood Victims:• DGK provided food to 300 people twice a day daily in the DG Khan area.• Provided Shelters
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Q & A
THANK YOU