Cement In Pakistan Case Study

SPECIFICATION

British normal requirement # 12 are followed in Pakistan. For a good quality cement early setting time should not be less than 45 minutes and the final setting time should not be more than 10 hours, all obtainable cement plants in Pakistan convene these quality criteria.

IMPACT OF PROCESS ON COST

The process used has a main impact on the cost structure of the company. Using old and out-dated forms of equipment not only effect the overall superiority of the final manufactured goods but result in higher preservation costs, more substitute of parts etc. and the outcome is less aggressive prices in both the household and overseas markets. We can see that Indian cement is sold at less important prices since they have been able

The North zone includes Punjab, Azad Kashmir, N.W.F.P. and the upper district of Baluchistan. The outstanding area of the Baluchistan and entire Sindh comprise the Southern zone. in history the Northern zone has face an under-supply circumstances while the Southern zone has knowledgeable over-supply situation. The demand of the Northern zone was used to be met by the production of the Southern zone. After the association of new plants mainly D.G. Cement (with a capacity of over 1 million tonnes per annum) the Northern region has also become almost self enough in the cement the region–wise sharing of cement plants is prearranged below The cement industry is very unequally spread in the country with a huge difference in capacity and manufacture as can be seen in the following tables. The number of plants is less than double in the south zone as compare to those in the north but total manufacture in the latter district is nearly 3 times that in the previous area. Even then all units charge the same price when in authenticity their knowledge, arrangement, product range and efficiency differs. This imply a mishandling of cartel power exert by the

Until 1992, the government’s active control over the cement sector through State Cement company had dept private speculation in the sector to a minimum. This sale of state-owned units to private sector in 1992 led to price deregulation. The increasing limits attracted fresh private savings, which resulted in an exorbitant increase in ability from 8.2 million tonnes in 1992 to 17 million tonnes in 1998. The huge addition in the capacity of the cement industry is heavily in charge for the current strife in the cement sector of Pakistan. This increase in capacity increased the opposition between the producers, but with the rising cost of production they couldn’t keep themselves ready for action. The rising overheads could no longer be afford in a tight industry and finally an industry with outmoded capacity and heavy losses found its way into the already troubled Pakistani