Fauji Cement Company Limited (FCCL) is a public limited company incorporated in Pakistan on November 23, 1992, and commenced its business with effect from May 22, 1993. The Company is listed on the Pakistan Stock Exchange since October 9, 1996. FCCL operates as a subsidiary of Fauji Foundation, which holds a 61.65% shareholding as of 2025. The principal business of the Company is the manufacturing and sale of various types of cement and tile bond.

The Company commenced operations in 1997 with the commissioning of its first production line (Line I) at Jhang Bahtar (JB), featuring a European cement manufacturing facility with an initial clinker capacity of 3,000 tons per day (TPD), subsequently enhanced to 3,700 TPD through Balancing, Modernization, and Replacement (BMR). In 2012, a second European-origin production line (Line II) was commissioned at the JB site, adding clinker capacity of 7,200 TPD, which was further increased to 7,600 TPD in 2018, raising the total JB capacity to 11,300 TPD. Following the successful merger with Askari Cement Limited in July 2021, the Company added clinker capacities of 5,670 TPD at Nizampur and 3,675 TPD at Wah. In addition, the completion of a brownfield expansion at Nizampur and a greenfield project at D.G. Khan, each with a capacity of 6,500 TPD, has positioned the Company as the third-largest cement manufacturer in Pakistan, with a total installed capacity of approximately 10.5 million tons per annum (MTPA).

Fauji Cement Company Limited is firmly focused on its core operations of manufacturing and supplying a diversified portfolio of high-quality cement products. The Company’s brands are widely preferred in the domestic market and have secured approvals for use in major national infrastructure projects, including hydropower developments, reflecting their reliability and performance. FCCL serves its domestic market through a well-established nationwide dealer network, which accounts for the majority of local dispatches, while supplies to mega infrastructure projects are made directly. Exports primarily target Afghanistan, leveraging the strategic location of the Company’s plants, and during the year constituted approximately 10% of total dispatches, positioning FCCL as a leading exporter to that market. The Company produces a broad range of products, including Ordinary Portland Cement (OPC), Low Alkali Cement (42.5N and 52.5N), Sulphate Resistant Cement (SRC), Pamir Cement (CEM-II/Green Cement), and Tile Bond. FCCL operates manufacturing facilities across four key locations: Jhang Bahtar, District Attock (two lines); Nizampur, District Nowshera (three lines); Wah, District Rawalpindi (one line); and Zinda Peer, District D.G. Khan (one line). Through its diversified product mix, extensive distribution network, and multi-site operations, the Company remains one of Pakistan’s leading producers of premium cement.

Based on the shareholding pattern, FCCL is majority-owned by its sponsor, Fauji Foundation, which directly holds 61.65% of the Company’s equity. In addition, associated and related companies hold approximately 5.16%, taking total group ownership to 66.81%. Financial institutions, including banks, DFIs, insurance companies, modarabas, and mutual funds, collectively hold about 20.21% of the shares. The remaining 12.93% is held by the general public and other investors, reflecting a diversified minority shareholding base.

FCCL’s ownership structure reflects a high degree of stability and long-term commitment, anchored by its sponsor. This strong sponsor backing has provided FCCL with consistent strategic direction, financial discipline, and governance oversight over the years. The presence of a reputable institutional sponsor enhances stakeholder confidence and supports prudent decision-making aligned with long-term value creation. In addition, the Company’s diversified shareholding base, comprising financial institutions and public investors, reinforces transparency and market discipline. FCCL’s arm’s-length relationship with associated companies further strengthens governance practices and operational independence. Overall, this stable and well-balanced ownership structure has been a key enabler of FCCL’s sustained growth, resilience, and strategic continuity.

Fauji Foundation (also known as FF) is one of the largest business conglomerates in Pakistan, operating with the motto "Earns to Serve" to support the welfare of ex-servicemen and their dependents. Established in 1954 as a charitable trust, Fauji Foundation demonstrates exceptional business acumen through strategic investments across diverse sectors, including agriculture, infrastructure, energy, food, and financial services.

In line with this strategy, Fauji Cement Company Limited, in collaboration with Kot Addu Power Company Limited, has announced the acquisition of a strategic stake in Attock Cement Pakistan Limited, aimed at consolidating its presence in the cement sector. The acquisition is expected to strengthen Fauji Cement’s market position by expanding its operational footprint and complementing its existing production and distribution capabilities.

Fauji Foundation, one of Pakistan's largest and most diversified business conglomerates, exemplifies exceptional financial resilience. With a broad portfolio it secures strong revenue streams and fosters sustainable growth. The Foundation's strategic investment approach and long-term vision play a vital role in ensuring FCCL's stability.

Overall control of the Company vests in a nine-member Board, chaired by Lt. Gen. Anwar Ali Hyder (Retd.), and includes the Chief Executive Officer / Managing Director, Mr. Qamar Haris Manzoor. The Board comprises 5 Non-Executive Directors, one Executive Director (CEO/MD), and three Independent Directors, including one female independent director. This composition ensures a balanced mix of executive leadership, independence, and professional expertise, in line with corporate governance best practices

The Board of Directors (BoD) of Fauji Cement Company Limited (FCCL) comprises highly accomplished professionals with deep expertise spanning finance, corporate governance, public administration, energy, and industrial operations. This diverse and well-balanced composition enables effective strategic oversight, robust risk management, and adherence to best-in-class governance practices, which have been instrumental in supporting the Company’s sustained growth and operational resilience. The Board is chaired by Lt Gen Anwar Ali Hyder (Retd.), HI(M), who also serves as Managing Director & CEO of Fauji Foundation since April 2024. He brings extensive experience in strategic planning, organizational leadership, and public-sector administration, having previously served as Principal Staff Officer to the Chief of Army Staff in the role of Adjutant General of Pakistan. He has also contributed to national economic initiatives as a member of the Apex Committee of the Special Investment Facilitation Council (SIFC). In recognition of his distinguished service and leadership, he has been awarded the Chief of Army Staff Commendation Card and the Hilal-e-Imtiaz (Military).

Overall, the FCCL Board includes seasoned non-executive and independent directors with strong backgrounds in fiscal and macroeconomic policy, mergers and acquisitions, corporate governance, and technical and operational leadership. Board members actively contribute through key committees, including Audit, Human Resource & Remuneration, Investment, and ESG Committees, ensuring informed decision-making and effective oversight. This depth of experience and diversity of perspectives significantly strengthens FCCL’s governance framework and supports the Company’s long-term strategic objectives.

During FY25, the Board of Directors held five meetings, demonstrating consistent oversight and strategic engagement. The Audit Committee convened five meetings, reflecting its enhanced role in financial reporting, internal controls, and compliance oversight. The HR&R Committee, Investment Committee and ESG Committee each met twice during the year. Attendance across all Board and committee meetings remained satisfactory, indicating a strong commitment by directors to effective governance and accountability.

As a publicly listed company, FCCL’s Board is dedicated to upholding the highest standards of transparency, accountability, and ethical conduct. To foster effective communication with stakeholders, the Company ensures the timely preparation of financial statements with all necessary disclosures, in compliance with Pakistan Stock Exchange (PSX) rules and Securities & Exchange Commission of Pakistan (SECP) regulations.

M/s A.F. Ferguson & Co., Chartered Accountants, serve as the Company’s external auditors. For FY25, the auditors have expressed an unqualified opinion on the financial statements, reflecting the Company’s adherence to sound financial reporting practices and regulatory compliance.

The Company operates under a functional vertical structure, with specialized departments managing distinct business activities. Employees within each department report to their respective managers or functional heads, who, in turn, report directly to the Chief Executive Officer. The Board of Directors provides oversight and sets the Company's strategic direction. The organizational structure is divided into different functions. Key functions are; 1) Supply Chain, 2) Marketing & Sales 3) HR & Admin. 4) ESG 5) Operations 6) and Finance. The internal audit department reports to the Audit Committee in line with the Code of Corporate Governance.

Qamar Haris Manzoor, Managing Director and Chief Executive Officer, holds a Master’s degree in Chemical Engineering from the United States and brings over 40 years of experience in plant operations and project management. He began his career at ICI Pakistan, holding senior roles across Soda Ash, Polyester, and PTA plants, and later served in leadership positions at Exxon Chemical Pakistan. He has led and advised major energy, power, and industrial projects, including gas-fired and wind power plants, steel manufacturing, and cogeneration facilities, overseeing financial close, EPC execution, and regulatory coordination. Mr. Manzoor assumed leadership of Fauji Cement Company Limited and Askari Cement Limited in June 2020, successfully leading their merger and two capacity expansions of 2.0 million tons per annum each, positioning FCCL as Pakistan’s third-largest cement producer under the Fauji Foundation portfolio. His leadership is complemented by Chief Financial Officer Omer Ashraf, an FCA with over 27 years of experience, who has played a pivotal role in capacity expansion and clean energy initiatives, including Waste Heat Recovery and Solar Power projects. Together, they are supported by a strong team of seasoned professionals, ensuring operational excellence, financial discipline, and strategic alignment.

FCCL ensures efficient operations through a clear segregation of duties, well-defined reporting lines, and a structured hierarchical framework that facilitates informed decision-making. Management meetings are conducted frequently to ensure the seamless flow of processes and address any operational bottlenecks. Key discussions and decisions are documented in meeting minutes to maintain transparency and accountability.

FCCL has implemented SAP S/4HANA, the latest ERP system, to enhance controls and improve business efficiency through accurate and timely reporting. This advanced technology infrastructure, supported by well-designed and effectively implemented policies and procedures, enables management to generate a variety of regular and customized reports at different intervals (daily, weekly, monthly, and yearly). These reports cover key areas such as sales, purchases, inventory, general ledger, payroll, costing, budgeting, preventive maintenance, and other critical financial metrics.

FCCL accords high priority to robust risk governance and the effectiveness of internal controls. The Company has implemented a comprehensive policy framework designed to ensure the systematic identification, assessment, and mitigation of risks through regular risk assessments, internal control reviews, and continuous monitoring. In support of this framework, FCCL maintains an independent in-house Internal Audit function. The Head of Internal Audit reports directly to the Audit Committee, thereby ensuring objectivity and strong oversight. This function plays a key role in evaluating the adequacy and effectiveness of financial controls, monitoring compliance with established procedures, and assessing risks associated with ongoing operations and new initiatives. Through a strong control environment and continuous enhancement of its risk management practices, FCCL safeguards its assets, promotes operational efficiency, and upholds high standards of transparency and accountability.

Pakistan’s cement industry is showing a measured recovery after a prolonged slowdown, supported by macroeconomic stabilization under the IMF program. Easing inflation, a largely stable Rupee, and a relatively supportive interest rate environment have improved business sentiment, although fiscal pressures continue to restrict public development spending. Industry demand has strengthened, with total cement dispatches recording double-digit growth, led by a 13% increase in domestic sales in 1HFY26 driven by revived private construction activity and improving project execution. Export volumes have although contracted by 4% to 4.63 mln MT. On a cumulative basis, for 1HFY26 industry offtake has risen by approximately 10% year-on-year. Policy initiatives such as the Mera Ghar Mera Ashiana housing scheme and selective tax incentives are supporting residential demand and urban property markets and the effects of increased demand after flood have also start to be realized. However, sector-wide capacity utilization remains low at around 61%, reflecting structural overcapacity. South based producers benefit from lower logistics costs and better export access, while northern players face cost disadvantages. Looking ahead, FY26 cement volumes are projected at 51–52 million tons, indicating a gradual but steady recovery trajectory.

Fauji Cement Company Limited is the third-largest cement producer in Pakistan by installed manufacturing capacity. During FY25, the Company achieved an average capacity utilization of approximately 51%, capturing an estimated 11.62% market share. In 1QFY26, FCCL recorded dispatches of 1.5 million tons, out of total industry dispatches of 12.5 million tons, reflecting a strong market presence.

The Company serves two main customer segments:

Dealers: Supported by an extensive nationwide network that accounts for most local dispatches. 

Projects: Where cement is supplied directly to construction and infrastructure developments across Pakistan.

With operations at four strategically located sites, the Company ensures efficient market coverage and optimized logistics.

In the export market, Afghanistan remains the primary destination, with exports contributing around 10% of total dispatches, positioning FCCL as the leading exporter to Afghanistan.

During FY25, FCCL achieved cement dispatches of  5.37 mln MT (FY24: 5.08mln MT), comprising 4.81mln MT in domestic sales (FY24: 4.56mln MT) and 0.56mln MT in exports (FY24: 0.52mln MT), primarily to Afghanistan. This resulted in net revenues of PKR 88,956mln (FY24: PKR 80,026mln), reflecting an 11% growth. Local sales revenue increased by 11% driven by higher pricing and increased dispatches, while export revenue grew by 14%, supported by higher dispatches and PKR devaluation. In 1QFY26, net revenues reached PKR 23,418 mln (1QFY25: PKR 22,956mln), driven by improved dispatches to 1.50 mln MT as compared to same period of previous year (1QFY25: 1.32 mln MT).

The Company improved its profitability through effective cost control, better retention prices, and disciplined cost pass-through. Supported by vertical integration, increased use of local coal and alternative fuels, higher reliance on self generated power, and fixed cost optimization, the gross profit margin increased to 35% in FY25 (FY24: 32%, FY23: 30%), and stood at 31.5% for 1QFY26. The net profit margin also improved to 15% in FY25 (FY24: 10.3%, FY23: 10.9%), and stood at 14% for 1QFY26, driven by higher gross margins, improved investment income, lower leverage, easing policy rates, and a normalization of tax impact compared to FY24, which was adversely affected by a one-off increase in the effective tax rate due to changes in export taxation.

FCCL has strengthened its position as the third-largest cement producer in the local market with the completion of its Greenfield expansion project in D.G. Khan, bolstering its presence in the South region. The Company remains focused on cost optimization and sustainability, enhancing its renewable energy portfolio. In FY25, FCCL increased its waste heat recovery capacity to 48.5 MW and expanded its solar capacity by 15 MW to 67.5 MW through installations at its DG Khan, Nizampur plants and FCCL JB. The Company also prioritizes reducing its carbon footprint by substituting coal with alternative fuels such as biomass and tire-derived fuel, cutting 322,631 metric tons of Scope 1 and 2 emissions in FY25. Additionally, FCCL achieved 0% groundwater extraction for industrial use in FY25 by implementing rainwater harvesting and wastewater recycling initiatives. These efforts underscore FCCL's commitment to decarbonization, energy efficiency, and sustainable development.

During 1QFY26, FCCL’s working capital requirements, measured by the net cash cycle, increased to 52 days (1QFY25: 41 days). For FY25, net working capital days also stood at 50 days, compared to 42 days in FY24. The increase was primarily driven by higher inventory days, reflecting elevated stock levels, along with shorter payable days. The Company continues to manage its working capital efficiently through strong internal cash generation, supplemented by short-term borrowings, which amounted to PKR 2,155 million as of September 2025.

During 1QFY26 and FY25, FCCL's Free Cash Flow from Operations (FCFO) stood at PKR 6,240 million and PKR 26,383 million, respectively (1QFY25: PKR 7,247 million, FY24: PKR 22,467 million), driven by improved profitability. As a result, the Interest Coverage Ratio (FCFO/Finance Cost) improved to 5.6x in 1QFY26 from 4.7x in FY25, highlighting the Company’s enhanced ability to comfortably meet its finance costs due to stronger liquidity generation from operations.     

The Company’s leverage has declined following the timely repayment of long-term project loans and reduced reliance on short-term borrowings. However, total borrowings increased in accordance with an unsecured loan received from Fauji Foundation, the parent company, under a project financing arrangement for the Nizampur expansion of the former Askari Cement Limited. The loan carries a mark-up of 10% per annum effective July 1, 2024 and is payable on demand, with an option for conversion into ordinary shares on mutually agreed terms. As of September 2025, leverage remained moderate at 32.7%, with short-term borrowings comprising approximately 6.45% of total debt.