The conversion of the cement industry from oil/gas to coal-fired system has proved cost effective in the real sense of the term. The cement manufacturing units, which were running in huge losses have successfully changed their financial complexion from losses into profits. However, the conversion of fuel system was not alone the major contributor for bringing a turnaround in the cement sector, some other forces also contributed significantly. The tremendous recovery achieved by the cement industry reflects in the fact that out of the total 22 cement units listed with the stock exchange, 18 have announced their financial results for the 2002 with an aggregate net earnings of Rs948 million.