Table of contents:
1. Introduction
10
3.2 Recommendation 11
3.3Conclusion
...
11
ABSTACT:
This report is a brief introduction of Hetauda Cement Industry and its relation to
financial statement production, market share, and quality and production capacity.
We have included a short description of cement marketing in Nepal. Mainly this
report is about cement marketing and in the case of Hetauda Cement Industry. We
composed different resources for finding the information which are listed end of the
report and finally make it by group discussion as exchanging idea and skill of group
member.
1. Introduction
Nepalese economic sector. Actually the Although, this report can not
us$ 692,829
2012/13
US$ 95,251
2013/14
US$
6.42 M.
Line graph
Series 1
7,000,000
6,420,000
6,000,000
5,000,000
US $
4,000,000
3,000,000
2,000,000
692,829
1,000,000
0
Dec-11
95,251
2012/13
2013/14
The line graph shows the accumulated loss of Hetauda cement. In the fiscal year
2011 the accumulated loss is 692829 US dollar. It seems loss has decreased from
the fiscal year 2011 to 2012/13. This loss has sharply decreased in the fiscal year
2012/13, however the loss continues for the next fiscal year 2013/14. The dramatic
fall down continues. Although, it seems the market of Hetauda cement is going to
loss in every year. The fact that between the 2011 and 2014 there is the continuous
loss. Though it seems a bit
progress between first two fiscal years, there is vast difference of loss between the
fiscal year 2012/13 and 2013/14. With reference to this graph Hetauda cement has
a huge amount of loss.
In addition, the profit and sales volume of last ten years are presented as follows;-
Year
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
Profit/ (loss)
(7.84)
(13.82)
96.6
139.97
105.66
154.3
180.97
(4.8)
5.6
Sales
398.6
416.05
655.4
658.72
655.96
706.3
989.69
770.73
840.5
Bar diagram
655.4
600
398.6
658.72
655.96
770.73
706.3
840.5
416.05
400
96.6
200
139.97
105.66
154.66
180.97
5.6
36923
-7.84
37288
-13.82
37712
38108
38504
38899
39295
39692
-4.8
40087
-200
profit (loss)
Series 2
The bar diagram shows that the annual profit and sales volume during the ten
years of period. From 2001 to 2010, in this ten years of period remarkably the least
figure of sales was in 2001. But, it slightly increase in 2002. However, it began to
rise substantially in the year of 2003. Whereas, the figure of sales volume remained
almost constant from 2003 to 2005. In the year 2006 both the sales and the profit
are slightly increase which shows the positive sign to overcome the loss. Although,
the sales in this year 2007 has dramatically raised to the highest level, the profit is
almost the same as last year. As per the graph in the year 2008 the profit is below
average despite satisfactory sales. Furthermore, in the year 2009 the profit is again
below average though the sales is not bad.In Nepalese market Hetauda cement has
played vital role to fulfill consumers need related to construction by producing
qualitative product at reasonable price. So, it is able to cover out of 12% from the
whole market of Nepal. It can be shown by following table.
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In addition, here is the composition of raw materials to produce cement and which
is normally use by Hetauda Cement Industry.
Annual Quantity of Raw Materials and Fuels of Hetauda
Cement Industry Ltd.
Materials
Linestone
396000
Clay
20000
Coal
50000
Gypsum
12000I
Iron Ores
4000
Jute bags
3.1 Finding:
In this report, It can be determined that the Hetauda Cement Industry L.T.D has
been bearing normally regular loss. Due to the high payment for workers for
instance it pays $251 per month but same other private companies pay only $150
per month. So, here we can found the huge difference between public and private
companies. As well as political interference, regular political and managerial
instability. Even though, It never utilizes as potential capacity. Normally it has been
running around 45 percent of its capacity. Moreover, this company seems able to
cover only 12 percent of Nepalese market share. Though, It is too lower portion
than other companies because it has huge amount of investment and as well
production capacity too. In fact, the Hetauda cement. There, seems overstaffing
and intra conflict between trade unions, and between trade union and management
as well as company facing so many obstacles for example- technical problem,
strike, charity for several parties etc. so, small problem can stop its production
function normally one month or more. Although, it has own goodwill among
consumers due to reasonable price and high qualitative products so it can easily
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3.2 Recommendation :
This company is a reputed company among public sector.
To maintain its goodwill and to run in regular profit the company needs to be
concern about some improvements with very beneficial and fruitful solution. They
should improve the following subject matter:
It should reduce operating expenditure that it can cut employee by paying
special economic package.
Its per month salary of the employee as higher than other companies so it
should reduce allowances and other fringe benefits.
It should utilize its full capacity.
Political parties should be honest and stop their unusual activities.
The company should expand its market share.
The entire management team should be more capable and should be more
conscious about the weaknesses of the company issues.
The companys management team should get to work freely until their
working period according to companys rules and regulations.
3.3 conclusion :
To conclude, Hetauda Cement Industry is a big company which is running
as public sector but it seems some sort of improvement in few aspects because one
of the most obvious reason is that it is facing a regular loss. Whatever, this
company is trying to overcome through that dropping problem. Although, since few
time ago it is true that the Hetauda cement Industry improving its situation in a
proper way. But, in the past HCIL was affecting by the huge loss that is why this
industry is not being able to properly overcome by this unexpected losing. Anyway,
Hetauda Cement Factory is trying to come up with new or more effective methods
to going through it is underlying structure of failure as well as they also attempting
to uplift their dropping sales marketing into fruitful consequences. This company
have to make sure their strong stability to become a profitable company. However,
the entire management team should be able to tackle with all sort of setback which
appear in the term of condition.
Moreover, since one year the country Nepal has been suffering
from massive natural disaster such as- landslide, earthquake and so on. Though,
Nepal is badly affected by means of these disaster. So, thousands of houses were
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collapsed as well as ancient historical assets were destroyed. Thus, these all
aspects need to be reestablishment so on Nepal is a developing country for that
various infrastructure should be built rapidly. For, this purpose the first obvious raw
material Is cement which is one of the most reliable and important constructive
substance. Thats why, it seems that cement market industry has bright future in
Nepal and it will be used in a wide range. So, hetauda Cement may grab this ample
opportunity particularly in this situations.
References:-
http://cementmarketinnepal.blogspot.dk/p/introduction-tonepalese-cement market.htmlhttp://www.sajilo.com/hetaudacement/
Bhattrai, JK. ( 2015 ), Presentation and Analysis Of Data Of HCIL.
Shodhganga. Inflibnet.ac.in.
Appendix 1
1. Production of Clinker & Cement since commencement of commercial production are given
below:
Fiscal Year
Clinker (MT)
Cement (MT)
Capacity Utilization
1985/86 (7 month)
57,953.739
60,723.718
40%
1986/87
116,036.051
117,316.860
45%
1987/88
126,983.099
137,011.560
53%
1988/89
129,458.880
137,594.390
53%
1989/90
108,569.553
104,065.710
40%
1990/91
105,910.705
118,394.130
46%
1991/92
152,406.430
155,503.910
60%
1992/93
87,861.000
97,431.000
38%
1993/94
115,474.728
118,039.720
46%
1994/95
106,580.625
106,192.174
41%
1995/96
120,029.111
124,985.300
48%
1996/97
118,400.079
125,899.315
48%
1997/98
118,660.777
136,988.055
53%
13
1998/99
120,351.534
128,734.730
50%
1999/00
118,492.168
118,666.185
45%
2000/01
81,145.442
86,901.640
33%
52,670.875
47943.000
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