SWOT ANALYSIS

STRENGHT:

Second largest cement manufacturer in Pakistan with a 4.0 million tonnes per annum
capacity, with a further 2.0 million tonnes expected to come online by January 2008.
Product diversification and increased focus on value-addition and superior customer
relations.
Green company.
Lays great importance on the training, development and education of its
personnel
and attaches highest priority to the health and safety of its personnel.
Actively pursues protection and up gradation of the environment by ensuring that its
plants continue to comply with established environmental quality standards at all times.
BWCL retained market share of 6% in the North zone making it one of the largest cement
producers in the country.
Strategic location making it easier and cheaper to export to India and Afghanistan.
Company is one of the largest exporters of Afghanistan and achieved an impressive 9.5%
share of cement exports in country.
The capacity utilization stood at 98%, the highest in industry exceeding industry average
of 91%.
Cement produced in Chakwal-I plant is of the highest quality with compression strength
of 28 days at 8000 PSI far exceeding the industry average of 5000 PSI.
Highest quality standards with state-of-the-art X-ray Fluorescent Analyser and
Diffractometer technology equipment being used.
Plant at Chakwal-I has led to indirect and direct creation of job employment in the most
economically dispossessed part of Pakistan. It provides direct employment to 2,000
people and indirect employment to 3,000 people.
Has the operational flexibility to utilize all three major fuels namely Furnace Oil, Natural
Gas and Coal.
Bestway Foundation, the charitable trust was established in the year 1997 and is also
certified from the Pakistan Centre for Philanthropy.
BIS certification.
Awarded by Rawalpindi Chamber of Commerce and Industry.

WEAKNESSES:

After coal conversion as energy source, high Sulphur and Ash content in local coal
resulted in less energy efficiency.
Variation in quality of coal irregular availability.
Expansion with Chinese plant
Conversion to coal made at high costs.

OPPORTUNITES:

Rising export market.

Capture Middle East, India and other regional export markets.
Robust domestic demand due to enhanced construction schemes announced by the
government.
Concrete road construction.

THREATS:

Expected supply glut and price war after few years.

Further Increase in interest rates.
Increase in coal and gas prices.

The company has been capitalizing on its strengths. Main strengths of BWCL include,
commitment to quality, increased focus on value-addition and superior customer relation,
retention of reasonable market share, strategic location opening opportunities of exports both to
Afghanistan and India. BWCL is also aware of its weaknesses; low borrowing capacity, energy
inefficiencies and is working towards overcoming them in future. Also the company can
minimize the threats (expected supply glut, increasing finance costs, energy crisis) it faces by
proper planning and strategically devising a plan to meet the rising interest rates and coal prices.
Growth in GDP a major indicator of the trend of growth of cement demand is expected to
increase further meaning further growth in demand which, may help pull up prices.