1.

0 INTRODUCTION

1.1 Company History

Mass logistics was formed and started its operation in April 2007 with only 2 trucks which
cost 70 lacs these were their main assets on which their business was dependent but
unfortunately during the second month of their business one of their truck got stolen which
hampered their business activities. In order to keep their business they had to rent trucks and
loaders from outside. As the rental of trucks analyzed that mass logistics have business but
they don’t have any vehicle to fulfill their business need they started dictating their terms by
charging high rent for the trucks. So Mr. Samim decided to take loan of 18 corers for three
years from the bank in order to purchase 30 trucks out of which he has paid off 80% of his loan
in two years.
Mass logistics’ office is located at Shahra-E-Faisal. He is also operating a workshop in which
they repair and maintain their trucks and loaders in order to keep them efficient and up to date.
For this purpose they have hired a specialized mechanical engineer.
They mainly transport cement and acquire 80% work of cement logistics. Mass logistics has a
team of about 50 employees.
Mass logistics strives to create a business value without harming the environment. They refrain
from loading their trucks above the limit because it harms the road as well as the trucks.

1.2 Company Profile

Mass logistics are the major cement logistic organization due to good contacts with the cement
manufacturers. At present they are proud to have the following prestigious clients for whom
they have undertaken the transportation of cement, coal and clinker.
Their prestigious clients are
• Attock Cement Pakistan Limited

• Lucky Cement Limited

• Thatta Cement Limited

• Al Abbas Cement Limited

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 • Al Abbas Sugar Mills Limited

• Seatrade Group

• Sirius Logistics Pakistan

2.0 Vision/Mission Analysis

2.1 Proposed Vision

“To be the leading service provider in the world of logistics driven by absolute excellence and
consistency”

2.2 Proposed Mission

To be the symbol of excellence by providing efficient and reliable services while meeting the
challenges of global(C) logistic (B) trade. To build profitable relationship (E) in the long run

Components
A Customers Yes
B Products Or Services Yes
C Markets Yes
D Technology Yes
E Concern for survival, growth & Profitability Yes
F Philosophy No
G Self-Concept Yes
H Concern For Public Image Yes
I Concern for Employees Yes
by adding value (F) for the existing and new customers and clients (A), through providing top
quality freight services enriched with optimum use of technology (D). Conducting environment
friendly business in the way we use resources, optimize operations and handle waste (H), as
well as promoting the health and safety of our employees (I).

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 3.0 Mass Logistics Analysis through Matrices

3.1 CPM

The vision
Mass logistics corporation Bilal Associates
Critical Success Weighted Weighte Rating Weighted
Factors Weights Ratings Score Ratings d Score s Score

Service efficiency .2 3 .6 4 .8 4 .8
Price
Competitiveness .18 3 .54 2 .36 3 .54
Management .10 1 .10 3 .30 2 .2
Financial Position .10 2 .20 2 .20 4 .4
Customer Loyalty .12 3 0.36 3 .36 4 .48
Global Expansion .10 1 .10 3 .30 3 .30
Market Share .2 2 .4 3 .6 3 .6
Total 1.00 2.3 2.92 3.32

 Opportunities

• Gap between commodity movement and shortage of transport.

• Allocation of U.S $900 million to upgrade transport infrastructure.
• High scope as less competitors operating nationally.
• Development of regional and domestic trade routes.
• High demand for imported cement in India.
• Karachi Port and Bin Qasim Port, handle 95% of all international trade.
• Sri lanka and African market absorb around a quarter of cement export from
Pakistan.
• During 2010-2014 road transport will be utilized 85% for all freight movement.

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 Threats

• Risk of theft road logistics business.

• Price fluctuation of fuel.
• Underdeveloped infrastructure like roads, communication and ports.
• Pakistan score low on global competiveness indicators.
• Due to Economic crises freight transportation is held back.
• Weak demand in local markets.
• Lower cement prices in international markets.
• The two giant cement manufacturers have expressed their intentions to install
production capacity in Sri lanka and Africa, where cement industry.
• Natural disaster.
• Political instability.

 Strengths

• Good contacts with cement manufacturer.

• Operating their own work shop.
• Rapid growth due to efficient and reliable service.
• Contract with shell petroleum.
• Employee morale is excellent.
• Cash in hand is increased by 2.17%.
• Cash in bank is decreased by 1.62%.
• Paid off 80% loan in 2 years.

 Weakness

• In 2010 net income decreased by 10.17%.

• They do not have official website.
• Limited utilization of technology.
• No network of domestic and international partners to build global program.
• Lack of competitive intelligence.
• Fixed asset turnover ratio was decreased to 1.46% in 2010.

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 3.2 External Factor Evaluation (EFE)

Weight Ratings Weighted

Key External Factors s 0.0-1.0 1- 4 Score

Opportunities
Gap between commodity movement and shortage of transport. .12 2 0.24
Allocation of U.S $900 million to upgrade transport infrastructure. .10 2 0.2
High scope as less competitors operating nationally. .08 2 0.16
Development of regional and domestic trade routes. .06 2 0.12
High demand for imported cement in India. .05 1 0.05
Karachi Port and Bin Qasim Port, handle 95% of all international trade. .08 1 0.08
Increasing demand of cement in Sri lank and African markets. .06 3 0.18
During 2010-2014 road transport will be utilized 85% for all freight
movement. .06 3 0.18

Threats
Risk of theft in road logistics business. .10 4 0.4

Fuel price instability. .05 3 0.15

Underdeveloped infrastructure like roads, communication and ports. .05 2 0.10
Pakistan score low on global competiveness indicators. .03 2 0.06

Due to Economic crises freight transportation is held back. .04 3 0.12

Lower cement prices in international markets. .05 2 0.10
Political instability. .06 1 0.06
Natural disaster. .01 3 0.03
Total 1.00 2.23

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 3.3 Internal Factor Evaluation (IFE)

Weights Ratings Weighted

Key Internal Factors 0.0-1.0 1- 4 Score

Strengths
Good contacts with cement manufactures
0.07 4 0.28
Operating their own workshop
0.06 3 0.18
Strives to create business value without harming environment
0.06 3 0.18
Rapid growth due to efficient and reliable service
0.1 4 0.4
Contract with shell petroleum
0.06 3 0.18
Employee morale is excellent
0.07 3 0.21

Cash in hand is increased by 2.17% in 2010 0.07 3 0.21

Paid off 80% loan in 2 years
0.07 3 0.21
Weaknesses
In 2010 net income decreased by 10.17%
0.07 1 0.07
Do not implement any effective promotion strategy 0.03 2 0.06
They do not have any official website and
0.03 2 0.06
Limited utilization of technology
0.08 2 0.16
No network of domestic and international partners to build global
program
0.09 2 0.18
Lack of competitive intelligence
0.08 2 0.16
Fixed asset turnover ratio was decreased to 1.46% in 2010
0.06 1 0.06
Total 1 2.6

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 3.4 SWOT MATRIX
Strengths Weaknesses
1. Good contacts
with cement
manufacturer. 1. In 2010 net income
decreased by 10.17%.

2. Operating their 2. Do not implement any

own workshop. effective promotional
strategy.
3. Strives to
create business value
without harming
environment. 3. They do not have any official
website.
4. Rapid growth
due to efficient and 4. Limited utilization of
reliable service. technology.
5. No network of domestic and
5. Contract with international partners to
shell petroleum. build global program.

6. Employee 6. Lack of competitive

morale is excellent. intelligence.

7. Fixed asset turnover ratio

7. Cash in hand is was decreased to 1.46% in
increased by 2.17% in 2010.
2010.
8. Paid off 80%
loan in 2 years.

Opportunities
1. Gap between commodity
movement and shortage of
transport.
2. Allocation of U.S $900 million to
upgrade transport infrastructure.
SO WO
Apply effective promotional
campaigns :
1. Launching official website and
doing ecommerce.
2.Develop awareness by using
different mediums of
communication: ads on TV
Expand their business and radio, utilizing billboards
nationally and globally (S4, and magazine, distribute
O3,O8) brochures. (W4,W3,W2,O3)
Horizontal integration should Build a subsidiary in Srilanka
be formed with vision which will help in capturing
corporation for cement export international market and also in

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 to capture international
markets (India Srilanka and
African markets) through
utilizing sea ports. developing global presence
(S1,S4/O5,O6,O8) (W5,O8,O5)
3. High scope as less competitors
operating nationally.
4. Development of regional and
domestic trade routes.
5. High demand for imported cement
in India.
6. Karachi Port and Bin Qasim Port,
handle 95% of all international
trade.
7. During 2010-2014 road
transportation will be utilized 85% for all
freight movement.
8. Increasing demand of cement in
Sri lanka and African market.
Threats ST WT
Perform CSR activity by
displaying public service
messages for the safeguard
and proper use of
infrastructure and allocating
funds for development of
1. Risk of theft in road logistics infrastructure and Should install tracking systems in
business. communication ( S3,T3) the Trucks and loaders (T1,W4)
Investing some portion of profit
in the financial markets to cover
Do future contract with shell the financial losses and also to
2. Fuel price instability. petroleum (S5,T2) diversify risk (W1,W7,T2,T8,T5)
3. Underdeveloped infrastructure like
roads, communication and ports.
4. Pakistan score low on global
competiveness indicators.
5. Due to economic crises freight
transportation is held back.
6. Lower cement prices in
international markets.
7. Political instability.

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8. Natural disaster.

3.5 SPACE

Financial Strength Rating Industrial Strength Rating

Liquidity ratio 5 Profit Potential 5
Profitability ratio 3 Growth Potential 3
Activity ratio 3 Financial Stability 3
Ease of Entrance in the
Leverage ratio 2 Market 4
Net working capital 3
Total 16 15
Average 3.2 3.75

Competitive Advantage Rating Environmental Stability Rating

Brand Image -4 Technological Changes -2
Innovation -4 Rate of Inflation -4
Customer Loyalty -2 Competitive Pressure -3
Technological know how -4 Barriers to Entry -2
Competition capacity
utilization -5
Total -19 -11
Average -3.8 -2.75

 X- Axis:

CA+ IS = - 0.05

 Y- Axis:

ES + FS = +0.45

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3.5.1 SPACE MATRIX

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3.6 IE Position of Mass Logistics

Division Sales Sales % Profit Profit % IFE score EFE

score
Mass logistic 343604133 100% 21928105 100% 2.6 2.23
(cement
movers)

3.6.1 The Internal-External Matrix

Mass logistics

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3.7 Grand Strategy Matrix

Rapid Market Growth

Quadrant II Quadrant 1
1I

MASS LOGISTICS

Weak Strong
Competitive Competitive
Position

Quadrant III Quadrant IV

Slow Market Growth

3.7.1 Evaluation

Mass logistics falls in the second quadrant of grand strategy matrix as its revenue decreased
comparatively from 2009 to 2010. Its competitive position is also weak because it is a new company
and cannot compete in large scale but market growth is rapid because of their good contacts with the
customers.

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4.0 Overall Matrices Evaluation

Strategies SWOT Space IE Grand

Horizontal Integration

Backward Integration
Forward Integration
Market Penetration

Market Development
Product Development
Related Diversification
Unrelated Diversification
Retrenchment
Liquidation
Divestiture

4.1 Evaluation

After analyzing and evaluating all the matrices we can propose that the strategies which will be
suitable for the firm are as follows:
 Market Penetration:
Apply effective promotional campaigns:
1. Launching official website and doing ecommerce.
2. Develop awareness by using different mediums of communication: ads on TV and radio,
utilizing billboards and magazine, distribute brochures.
3. Perform CSR activity by displaying public service messages for the safeguard and
proper use of infrastructure.
 Horizontal Integration:
Horizontal integration should be formed with Vision Corporation for cement export to capture
international markets (India Srilanka and African markets) through utilizing sea ports this can
also be helpful in market development.
5.0 QSPM

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 1.Market 2.Horizontal
Penetration Integration
Key Factors Weight AS TAS AS TAS
External
Opportunities
Gap between commodity movement and
0.12 1 0.12 3 0.36
shortage of transport
Allocation of U.S $900 million to upgrade
0.10 - -
transport infrastructure
High scope as less competitors operating
0.08 3 0.24 4 0.32
nationally
Development of regional and domestic trade
0.06 - -
routes
High demand for imported cement in India 0.05 2 0.10 4 0.20
Karachi Port and Bin Qasim Port, handle
0.08 - -
95% of all international trade
Increasing demand of cement in Sri lank and
0.06 2 0.12 4 0.24
African market
During 2010-2014 road transport will be
0.06 - -
85% of all fright movement
Threats
0.10 - -
Risk of theft in road logistics business
0.05 - -
Price instability of fuel
Underdeveloped infrastructure like roads,
0.05 - -
communication and ports
Pakistan score low on global competiveness 0.03 2 0.06 3 0.09
indicators
Due to Economic crises freight 0.04 3 0.12 1 0.04
transportation is held back
Lower cement prices in international
0.05 - -
markets
Political instability 0.06 - -

0.01 - -
Natural disaster
1

Internal
Strengths
Good contacts with cement manufacturer
0.07 3 0.21 4 0.28

Operating their own workshop 0.06 - -

Strives to create business value without
harming environment 0.06 4 0.24 1 0.06

Rapid growth due to efficient and reliable 14 | P a g e

service 0.1 4 0.4 3 0.3

Contract with shell petroleum 0.06 - -

Recommendation

After analyzing position of Mass logistics, with the help of certain strategies it can grow and
compete in national and international industry along with keeping its financial position strong and
proper management, as logistics needs energetic and proper management from time to employee.
Some strategies which are recommended to Mass logistics according to the matrices includes
(Market penetration) and (Horizontal integration). In these strategy they should Launch official
website and set out for ecommerce because this medium is the most powerful medium today in
every business.
Develop awareness by using different mediums of communication: ads on TV and radio, utilizing
billboards and magazine, distribute brochures.
Perform CSR activity by displaying public service messages for the safeguard and proper use of
infrastructure.

Build partnership with Vision Corporation for cement export to capture international markets (India
Srilanka and African markets) through utilizing sea ports this can also be helpful in market
development. As these areas are potential growth area since need of exported cement exist there
and already large amount of cement is exported there. As we can see in QSPM matrix more weight-
age is at horizontal integration, hence the most recommended strategy for Mass logistics is
Horizontal integration with Vision Corporation.

Conclusion

Logistics is a flourishing industry with a vast scope in Pakistan. Mass logistics is a new entrant in
this industry and so far has done very well, but like all other companies have some problems and
are striving to grow. After analyzing its swot and putting its position on strategic matrices it is
revealed that Mass logistics is financially a good company they have faced a little problem in

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financial sector during 2010 as revealed in its financial statement. There management is weak but
currently they have many opportunities to avail.

Appendix

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(CASE STUDY)
Mass Logistics
D1-1/7A, Anarkali Palace, Block 6, P.E.C.H.S., Karachi, Sindh, Pakistan
Phone: +92-21-4550228
Fax: +92-21-4550229
Email: masslogisticspk@gmail.com

Company History
Mass logistics was formed and started its operation in April 2007 with only 2 trucks which cost 70
lacs these were their main assets on which their business was dependent but unfortunately during
the second month of their business one of their truck got stolen which hampered their business
activities. In order to keep their business they had to rent trucks and loaders from outside. As the
rental of trucks analyzed that mass logistics have business but they don’t have any vehicle to fulfill
their business need they started dictating their terms by charging high rent for the trucks. So Mr.
Samim decided to take loan of 18 corers for three years from the bank in order to purchase 30
trucks out of which he has paid off 80% of his loan in two years.
Mass logistics’ office is located at Shahra-E-Faisal. He is also operating a workshop in which they
repair and maintain their trucks and loaders in order to keep them efficient and up to date. For this
purpose they have hired a specialized mechanical engineer.
They mainly transport cement and acquire 80% work of cement logistics. Mass logistics has a team
of about 50 employees. They are team oriented company and work on flexible hours. They discuss
and develop strategies in a team oriented fashion.
Mass logistics strives to create a business value without harming the environment. They refrain
from loading their trucks above the limit because it harms the road as well as the trucks.

Company Profile

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Mass logistics are the major cement logistic organization due to good contacts with the cement
manufacturers. Mass logistics main asset is their professional team and they are very proud of that!
Their customers respect them for their response times , meticulous logistics planning fine tuned
according to the clients specific requirements detailed cost/expenses planning, including all
services associated with cargo delivery and a wide array of readily available solution combined
with competitive pricing. At present they are proud to have the following prestigious clients for
whom they have undertaken the transportation of cement, coal and clinker.
Their prestigious clients are
• Attock Cement Pakistan Limited

• Lucky Cement Limited

• Thatta Cement Limited

• Al Abbas Cement Limited

• Al Abbas Sugar Mills Limited

• Seatrade Group

• Sirius Logistics Pakistan

They are planning to expand their business to all the major commercial cities, dry/ sea ports. This
tremendously rapid growth is attributable to and manifestation of efficient and reliable service
facilities at ultra competitive rates, customer satisfaction, highly skilled and motivated work force
and complete automation.
Exhibit-1 Organizational Chart of Mass Logistics

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Industry Analysis
Running a business in today's globalized world does not often offer easy times, as Pakistan
normally scores quite low on global competitiveness indicators. One such industry in Pakistan, that
seems to be bucking this trend however, is the Logistics industry, which faced quite a challenging
period during FY10.
Though, relatively stable commodity prices eased production costs during FY10, weak demand in
local markets and lower cement prices in international markets kept the industry's bottom line under
pressure.
Persistent logistical problems at the Eastern Wagha border has restricted manufacturers' ability to
export the product to India, which still has enough appetite for imported cement. If the problem
would be solved there would be large market to cater.
The success of the logistics industry depends on the promptness with which the products can be
delivered to a particular destination or to a client. Time and location are two factors which can
either make or ruin the logistics industry. The logistics industry is governed by technology,
integration, globalization and legislation.

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Formerly, logistic facilities were situated in remote areas like water port, beside rail tracks and
those places in towns or cities which were not treated up on by many. However, these sites shifted
to rural areas and other localities. The logistics industry has experienced several changes over the
years. These changes can be attributed to the growth in the retail industry and the manufacturing
segments.
Located at the crossroads of South Asia, Pakistan has gained worldwide recognition as a regional
gateway to international trade markets. The country has been facilitating the transportation of all
types of goods across its territory.
The revenue generation from the transportation sector of Pakistan is estimated at US$ 15 billion
annually, contributing 10% to the country's GDP. The Foreign Direct Investment in this segment
has been US$ 162 million in the past five years.
Rapid economic development over the last five years has dictated that the existing transportation
and logistics services be brought in line with the country's growing needs. Under the Public Sector
Development Program (PSDP), the Government has allocated US$ 950 Million to upgrade the
transportation infrastructure for the development of both domestic and regional trade routes.

Road Transportation
Road transportation is the most important means for the movement of goods within Pakistan and
onwards to its neighboring countries. Everything, from food supplies to industrial plants and
equipment, is transported via roads. It is noteworthy to mention that trucks and light commercial
vehicles constitute 96% of the total domestic freight traffic.
The National Highway and Motorway Network (NHMN) is an extensively interconnected system
of intercity roads that runs through the length and breadth of the country. NHMN carries 90% of
the total road freight traffic and spans an impressive 10,850 km, constituting 4.2% of the total roads
in the country.
Seaports
Seaports are the primary trade conduits for Pakistan. The country's two major ports, namely
Karachi Port and Bin Qasim Port, handle 95% of all international trade, including imports, exports
and transit cargo. Private Sector dedicated terminals have been constructed for handling containers,
cement, chemicals, oil etc.

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In addition, Gwadar Port has been developed under the financial and technical support of China.
With a well-equipped and fully-functioning port at Gwadar, Pakistan will further promote trade and
transport with Gulf States, China, Europe, Africa and Central Asian Countries.
Railways
The railway system is second only to the road network in terms of freight and cargo traffic.
Pakistan Railways is the only enterprise that provides rail service in Pakistan, catering to the large-
scale movement of people and freight.
During the past seven years, freight traffic via Pakistan Railway's infrastructure has registered an
average annual growth rate of 5.8% per annum, reaching 4.5 billion-ton-KM in 2007-2008. At the
same time, the railway passenger traffic has exhibited an average increase of 5.2% per annum,
reaching 18.3 billion-passenger-KM in 2007-2008.
Airports
There are 42 civil airports in Pakistan. The Quaid-e-Azam International Airport in Karachi is the
major hub for air cargo, but significant levels of both domestic and international freight are also
handled at airports situated in Islamabad and Lahore.

In August, it was reported that Pakistan National Shipping Corporation (PNSC) had decided to
enhance its shipping fleet and replace several of its old vessels. The company was preparing to buy
two doublehull aframax tankers at an estimated cost of US$60mn. The company also planned to
purchase another three tankers, two containerships and bulk carriers, and four or five general cargo
vessels. PNSC was also considering establishing a joint venture with South Korean, Japanese and
Chinese shipyards to construct vessels on a shared-equity basis. We see the expansion of the
country's tanker fleet as a necessary move in meeting Pakistan's increasing demand for crude oil
imports. Because of its poorly equipped liquid bulk fleet,we caution that Pakistan is likely to
become more reliant on foreign shipping lines to service its import needs over the next few years,
making the continued expansion of its domestic fleet a priority for the government.

We now estimate GDP growth of 2.0% in 2009, quite sharply down on the 4.1% rate achieved in
2008. A weak recovery will begin in 2010 with GDP gaining 2.5%. However, growth will be
subdued over the next five years, as Pakistan contends with the global slowdown and continuing
internal political uncertainty. For the extended 2010-2014 forecast period we are now expecting

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average annual growth of 3.3%, down on the 5.5% achieved across the preceding five years,
meaning that the effect on our freight traffic forecasts, if comparing the two periods, is negative.
Broadly speaking, we maintain earlier changes to our mode-specific forecasts. Perhaps the most
important, was to once more put back the expected surge in pipeline throughput to later in the
forecast period because of expected delays, as discussions on the Iran-Pakistan-India (IPI) project
continue. We believe that the growth of freight carried by road slowed in the tail end of 2005 due to
the disruption caused by the earthquake, but recovered strongly as part of the relief and
reconstruction effort. Rail freight turnover will lag behind GDP because of the poor state of the
railway network and the absence of much-needed investment in modernisation. Taking all these
factors into account, our forecasts for freight carried across all modes, and measured in mntkm,
stands at an annual average of 4.3% in the 2010-2014 period.

According to our latest estimates, the transport and communications sector grew by 2.0% in 2009,
on a par with overall GDP. For the 2010-2014 forecast period we expect the transport and
communications sector to just outpace the wider economy. It will achieve average annual growth of
3.5%, versus 3.3% for overall GDP. The total value of the transport and communications sector will
rise to US$31.6bn in nominal terms by 2014, representing 13.2% of Pakistan’s GDP. The transport
and communications sector employed 2.93mn people, or 6.4% of the labour force, in 2009. We see
both those figures rising, to 3.37mn people or 6.7% by 2014.

Our forecast assumes that the country’s ports – susceptible to bottlenecks and infrastructural delays
– are able to cope with increased demand. There have been reports of congestion, particularly at
Karachi, but development projects such as the new container terminal should alleviate this problem.
In addition, congestion does not appear to be a major issue at Port Qasim. The greater benefits of
the Gwadar project will only become fully apparent beyond the current forecast period. On the land
transport side, we expect that the market share attributed to the railways is likely to diminish, as
there is no evidence of major investment in Pakistan Railway (such as network extensions). If it is
to regain a share of around 4% of the overall transport sector, the rail network will need to be
rehabilitated and maintained at a higher level than at present. In fact, on current trends our forecast
suggests rail’s share will fall to just under 2% of total freight turnover. Despite a general
government pledge to look at privatisation of the rail sector, we do not foresee significant progress

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along this route in the early part of the forecast period. Road transport will remain the largest
sector, accounting for nearly 85% of all freight movements by the end of the forecast period.

We expect road haulage to be one of the fastest-growing transport modes, with an annual average
expansion of 4.3% in the forecast period. Pipeline throughput, as a result of current pipeline
projects, will expand by 4.0% on average each year. Airfreight will be affected by the global
downturn in aviation, with growth of 4.8% per annum. Slower international trade will also hit
shipping in 2009, but the sector will still achieve average annual growth of 5.2% over the next five
years. Rail freight will be the laggard with growth of 2.7% per annum.

Exhibit -2 Investment from Government

Total Network (KM) 260,000

ROAD
Government Investments, 2004-2009 (US$) 2.55 Billion approx.
Total Network (KM) 11,650
RAILWAYS
Government Investments, 2004-2009 (US$) 882 Million approx.
Total Freight Handled (Tons) 57 Million
SEAPORTS
Government Investments, 2004-2009 (US$) 391 Million approx.
AIRPORTS Total Freight Handled (Metric Tons) 400,000 approx.

Industry sources reveal that some of the cement manufactures exported at a loss just to cover fixed
expenditures, while many small manufacturers suspended their operations for a few months.
This may impact a lot on cement logistics industry.

Competition
The Vision Corporation

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The Vision Corporation is among the largest cement and Clinker Trading companies in Pakistan.
They provides containerized and break bulk shipping service for Cement and related products trade
to Cement industry of North, East and South Africa, Sri
Lanka, Pakistan, India, Maldives, Seychelles, Iraq, UAE, Oman, Qatar, Bahrain, Yemen,
Kuwait, Djibouti, Ethiopia, Kenya, Tanzania, Madagascar, Mozambique and Comoros
Islands since 2006. In addition to above, The Vision Corporation has been
supplying Ordinary Portland cement and Sulphate Resistant Cement to several big construction
groups in Middle East, East Africa and India. Company has won the fame of being a reliable source
of materials with excellent services by their valued customers. They have earned total revenue of
1.4 billion in the year end of 2009 and 1.26 billion in 2010. They had started this business with 20
employees now they are operating with 235 employees all the officers and layman included.

Exhibit - 3 The Vision Corporation

Year 2008 2009
Revenues 1.4(b) 1.66(b)
Profit 90.2 (m) 76.5(m)

Bilal Associates
It is an ISO 9001-9002 certified 3rd party project logistics, moving distribution, ware housing and
international freight forwarding company serving trade since many years by all modes of
transportation i.e. sea, road, rail, air and multimodal transport system. Through a network of
domestic and international partners located in Pakistan, Afghanistan and other CI states, they
can design and build a truly global program that involves trucking, rail, air-freight and sea
shipping solutions to exactly meet their customers’ needs.
During 2008 they earned net revenue of 1,818,606,183 and 3,546,576,839 during 2009. Their fixed
asset is increased by 34.2 % in 2008 and decreased by 9.95 % in 2009.

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Exhibit - 4 Bilal Associates

Year 2008 2009

Revenues 1.8(b) 1.354(b)
Profit 11.1024 (m) 63.0838(m)

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Finance
Mass logistics are earning good revenue and all revenues are coming from transporting cements
from renowned cement manufacturers. There total fixed assets worth is about 234,455,439 millions
in 2010 and 238,369,747 millions in 2009. In 2010 they have paid off almost 46 % of loans.
Exhibit - 5 Mass logistics Profit And Loss Statement from 2008 to 2010

Rupees as on Rupees as on
30th June-09 30th June-10
TANSPORTATION INCOME

THATA CEMENT 12,366,950 6,088,431.00

JAVEDAN CEMENT 2,786,100 118,510,903
AL ABBAS CEMENT 117,706,000 2,435,229
ATTOCK CEMENT PAKISTAN 143,626,350 140,436,231
Services rendered to Attock 392,000 ____
LUCKY CEMENT LTD 102,098,220 57,998,449
OTHERS 12,285,753

GROSS PROFIT 391,261,373 343,604,133

REVENUE EXPENSE
SALARY EXPENSE 21,790,422 20.427,080
RENT(OFFICE) 180,000 _____
RENT(W/HOUSE & WORKSHOP) 276,000 1,135,000

UTILITIESS
KESC 136,000 153,606
SSGC 4,330 21,720
PTCL 213,463 257,574
MOBILE BILLS 216,690 108,853
KWSB 1,165 777

TRANSPOPRTATION EXPENSE 233,526,245 206,788,618

OPERATIONAL EXPENSE 23,690,845 16,576,626
FUEL & MAINTAINENCE 1,214,200 1,555,534
VEHICLE TAX 1,883,925 612,214
STAIONARY EXPENSE 138,029 1,989,146
OTHERS 610,565 499,700
ADVERTISMENT EXPENSE 163,000 _____
VEHICLE TRACKING EXPENSE _____ 2,520,000
INSURANCE EXPENSE 2,904,024 3,256,743
INTEREST EXPENSE(BULKERS) 28,614,540 17,439,312
INTEREST EXPENSE(CAR) 129,376 76,000
DEPRECIATION EXPENSE 10,227,675 11,604,357
INCOME TAX 7,840,947 6,650,168

EXCESS OF INCOME OVER EXPENDITURE 57,499,932 51,928,105

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Future
The industry all over the world is growing including the logistics in Pakistan. The country at
present is one of the prime destinations for this service all over the world and is expected to grow
with leaps and bounds in the years ahead. Geographically, no doubt Pakistan is situated on the trade
cross-roads of East-West, North-South, even Northeastern-Southwestern and Northwestern-
Southeastern trade routes. 3
Scope of logistic industry is vast in Pakistan as there are less competitors operating nationally.
Considering the current scenario, Mass Logistics’ future objective is to expand its operation
nationally.
The need and urgency of the improvement in the logistic industry is greatly felt and pushed by the
government. At present there are certain obstacles like poorly developed infrastructure, complex
regulatory compliance, and limited utilization of technology on the way upwards. Under-developed
infrastructure like roads, communication, and ports is a huge blocking obstacle in the path of
success but the government is going deep into the matter to resolve these hampering issues and
heighten the reach of the industry.

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Bibliography

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www.economywatch.com
www.vision.com
www.seaandskylogistics.com
newsgroups.derkeiler.com

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