Note of Meeting with Chief Executive Officer (CEO):
Meeting Held on: Thursday, 22nd October 2009, 3:15 PM
The interview session with the chief executive of the company turned to be very effective. He helped me to understand the business performance of the company over the period of time. He also helped me to understand the business methodology of cement industry. With the help of him I was able to understand the business process of the company which was very helpful in performing the business analysis of the company. The chief executive also told me the difficulties that the cement industry of Pakistan was facing.
Introduction: Student: Sir I have been in the process of information gathering for the preparation of research and analysis project on the business and financial performance of your company, I am really grateful for your time.
CEO: We promote such research and analysis activities amongst students, and I am happy to help you.
Student: I shall be thankful if you tell me about give me an overview of your company.
CEO: Attock Cement Pakistan Limited (ACPL) is a public limited company. It is listed on the Karachi Stock Exchange since June 2002. Main business of the company is manufacturing and sales of cement.Our company is a part of the Pharaon group, which operate in Pakistan mainly with the name “Attock”. ACPL is not only a key player in the cement industry; it also controls a substantive portion of the market share.
Student: I shall be thankful if you tell me about your group.
CEO: ACPL is part of the Pharaon Group, which in addition to investment in cement industry has diversified stakes in Pakistan, mainly in the oil and gas sector.
Student: When the project was conceived?
CEO: ACPL’s project was conceived in 1981. The project is a Pak-Saudi venture and has involved an initial capital outlay of around Rs.1.5 billion with a foreign exchange component of around US$ 45 million.
Student: Where the plant is located? How does it location help in improved business performance?
CEO: ACPL’s manufacturing plant is located in Tehsil Hub, District Lasbela, Balauchistan, at a distance of about 45 kilometers north west of Karachi. The location of our plant is ideal for supply to southern portion of Pakistan. There is easy access to two major provinces, so that it can cater to development activities being carried out in these areas. Specifically the development of Gwadar port in Balauchistan is considered to be a major opportunity.
Student: I shall be thankful if you tell me about quality standards.
CEO: ACPL Our brand is on of the most important names in the cement industry. The quality of our cement is the major reason of increase in brand loyalty for our cement. Our company has attained ISO 9001:2000 and ISO 14000 certifications from Lloyds Register Quality Assurance (LRQA) in 2002 and 2006.
Student: What opportunities do you see in future?
CEO: As I mentioned above, the location of our plant makes it viable for the company to cater to local opportunities such as Gwadar port and construction of dams in lower Indus region. At present the demand of cement is increasing in Middle East the cement industry of Middle East is unable to meet this increasing demand. This opportunity when realized to the fullest extent is going to be very profitable for the company. Cement demand is also increasing in Pakistan.
Student: What is your opinion about the political situation of Pakistan?
CEO: Present situation regarding the political stability is volatile in Pakistan which is having a negative impact on the business. However despite the worsening political situations the performance of the company has improved considerably. The reason for this is that our exports shot up during the year.
Student: Yes I understand that the export side has helped the cement industry to flourish, but what challenges do you believe the industry has to face?
CEO: I must say that despite growing exports we need to improve and strengthen our local base as well. The cement industry has yet several barriers to overcome to be able to flourish. The cement industry derives its revenues from development activities throughout the country , and these activities are always hampered due to political instability in the country. The high inflationary pressure causes reduction in buying power of consumers, resulting in further pressure on the industry. Our production process of cement and the cost structure is such that the international increase in Oil, Gas and coal prices has lead to increased cost of production, sqeezing margins further.
Student: Can you tell me about the details of the company’s Plant?
CEO: ACPL’s cement plant was designed by Uzinexportimport (UEI) of Romania, all equipments, and ancillaries and steel structures were supplied by UEI and limestone crusher and packing plant was manufactured by O&K and Havor and Boecker of Germany. The result of having such a technologically advanced plant is the improved quality of our product, thus an improved brand image.