18096694 internship report
TRANSCRIPT
Internship Report
On
Submitted to: Ms. Shamana Munawar
Submitted by:Shehr Yar Anees SP07-MBA-095
Department of Management Sciences
COMSATS Institute of Information Technology
M.A. Jinnah Campus, Lahore.
COMSATS Institute of Information Technology, Lahore. - 1 -
In The Name
of ALLAH The Most Gracious,The Most Merciful
COMSATS Institute of Information Technology, Lahore. - 2 -
Dedication
I dedicate this report to my Parents.Without their Patience, understanding, support,
and most of all their love and prayers, the completion of this work would not have been
possible.
COMSATS Institute of Information Technology, Lahore. - 3 -
ACKNOWLEDGEMENTS
‘In the name of Allah, the most Gracious, the most merciful’
Internship remained a great experience for me as it added a lot to my knowledge.
However completion of Internship Report was not an easy task. It requires
continuous hard work and zeal. I think that there are many people who contributed a
lot to this report and completion of this report would have not been possible with out
the support of all these people, my respected teachers, my friends and my well
wishers. I would like to mention that Mr. Abdul Jabbar Athar, who was Material
Manager at ICI has been very kind and supportive through out my stay at there.
I would like to pay my gratitude to all my respected teachers for their guidance and
assistance in the completion of this report.
My gratitude will always remain due to the COMSATS Institute of Information
Technology and especially ICI Pakistan Ltd., Soda Ash Business for increasing my
knowledge and experience by providing me such an opportunity. Both these
prestigious institutions will have a lasting impact on my life.
May Allah Bestow His Blessings on All of Us
Shehr Yar Anees
COMSATS Institute of Information Technology, Lahore. - 4 -
TABLE OF CONTENETS
Executive Summary …………………………….......................... 7
Vision & Mission Statements …………………………………. 8
Introduction ……………………………………………………… 9
Business Portfolio ………………………………………… 9
Company from foundation till now …………………………… 10
ICI Pakistan Businesses …………………………………. 12
Products ……………………………………………………… 14
The AkzoNobel Chapter ………………………………….. 19
Soda Ash Business …………………………………………. 21
Values ……………………………………………………….. 23
Organizational Chart …………………………………………. 26
Business Strategy of ICI ………………………………………….. 27
Marketing ………………………………………………………………. 28
Marketing Environment …………………………………… 28
Target Market ………………………………………………… 28
Products ……………………………………………………….. 29
Distribution ………………………………………………… 31
Production & Operations ………………………………………….. 33
Production System ………………………………………….. 33
Solvay Process for Soda Ash Manufacturing ………………. 34
Raw Materials …………………………………………………. 35
Manufacturing Process …………………………………………. 36
SSHE Programme …………………………………………... 39
Finance ………………………………………………………………. 41
COMSATS Institute of Information Technology, Lahore. - 5 -
Major Highlights of 2007 ……………………………………. 41
Balance Sheet ………………………………………………….. 43
Profit & Loss Account ……………………………………………. 44
Ratio Analysis ………………………………………………….. 45
Activity Ratios …………..………………………………. 45
Profitability Ratios …..………………………………… 46
Market Ratios ………….………………………………. 48
Human Resource Management ……………………………………. 49
Recruitment procedure ……………………………………. 50
Performance Evaluation ……………………………………. 51
Problem Encounters ………………………………………….. 51
Compensations and Benefit ……………………………….. 52
Employees Creational Programmes ……………………… 54
SWOT Analysis ……………………………………………………. 56
My Working at ICI …………………………………………………. 59
Conclusions ………………………………………………………… 61
Recommendations ……………………….………………………… 62
Bibliography ………………………………..………………………. 64
EXECUTIVE SUMMARY
COMSATS Institute of Information Technology, Lahore. - 6 -
ICI was established in 1926, while it started it Pakistan chapter by establishing Soda
Ash Plant at Khewra, Distt. Jhelum in 1944. It is one of the oldest and fully
automated companies of Pakistan. ICI has currently five business in Pakistan in
which Soda Ash Business is the oldest and important one.
ICI was incorporated in 1953 and listed on Karachi Stock Exchange in 1957 as
Khewra Soda Ash Company and this name was changed to ICI Pakistan Limited in
1987. Now ICI is operating as a subsidry of AkzoNobel which is the chemical
industry leader around the globe.
Main purpose the internship was to extract practical knowledge by working in a
dynamic organization in order to apply the knowledge acquired during MBA
programme. Report include in depth analysis of the organization and carry financial,
technical, managerial and strategic aspects which have been evaluated to analyze
the current position of the organization.
I have evaluated the company by techniques like financial ratio like Profitability,
Activity and Debt ratios. These ratios are showing constructive signs for the future
prospects of the company. Management is capably utilizing the assets of the
company in order to generate sales. Overall financial position is adequate. Further
supportive material regarding the financial situation of the company is also included
in the report.
I am sure that this report will provide you a complete and clear image of
organization.
COMSATS Institute of Information Technology, Lahore. - 7 -
VISION STATEMENT
ICI’s vision is to be the industry leader in creating
value for customers and share holders. ICI will succeed
by operating at the highest levels of excellence,
acquiring unrivalled knowledge of key markets and
using technology creatively. The result will be products
which deliver greater benefits for the company’s
customers, higher returns for shareholders and
increased rewards for employees.
MISSION STATEMENT
We will remain market leaders in Soda Ash and
derivatives business in Pakistan by strengthening our
customer base while being the lowest cost producer in
the region and the most reliable supplier of quality
products.
Chapter 1
INTRODUCTION
COMSATS Institute of Information Technology, Lahore. - 8 -
ICI has consistently developed new and innovative areas of business since its
formation in December 1926, by the merger of four of the largest chemical
companies in the UK. ICI today is a collection of world-class businesses, many of
them leaders in their sectors. They are strongly led, technologically sophisticated
with healthy and sustainable long-term growth prospects.
ICI Pakistan Limited was set up as a public limited company in Pakistan in 1952.
ICI’s presence in this part of the world, however, predates the formation of the public
limited company and indeed, Pakistan itself. The Khewra Soda Ash Company, a
predecessor of ICI Pakistan Limited, set up a soda ash manufacturing facility in
Khewra in 1944 with a capacity of 18,000 tonnes per annum. This facility was sited
next to the salt range as rock salt and limestone; two key raw materials for
manufacturing soda ash were available here in abundance.
Today ICI Pakistan’s five businesses, Polyester, Soda Ash, Paints, Chemicals and
Life Sciences, manufacture and sell a range of industrial and consumer products.
These include, Polyester Staple Fibres, POY Chips, Light and Dense Soda Ash,
Sodium Bicarbonate, Paints for the Decorative, Automotive, Refinish segments, for
Industrial use and Projects, Specialty Chemicals, Polyurethanes, and Adhesives and
arranges manufacture on a toll basis of Pharmaceutical and Animal Health products.
It also markets Seeds and in addition is engaged in trading in various specialized
chemicals for use in industries in Pakistan.
In 1995 ICI Pakistan Limited set up a USD 490 million PTA manufacturing facility at
Port Qasim, near Karachi, which was commissioned in 1998. In 2000, the business
was de-merged to form Pakistan PTA Limited, which was at the time a subsidiary of
ICI Plc UK.
The turnover of ICI Pakistan Limited in 2007 was Rs 25.97 billion and the profit
before tax crossed Rs. 2.77 Billion. It is one of the largest quoted companies on the
COMSATS Institute of Information Technology, Lahore. - 9 -
Karachi, Lahore and Islamabad Stock Exchanges with a paid up share capital of Rs
1.39 billion. The company has around 1300 permanent employees
Company from Foundation till Now
Year Achievements1944 It establishes its first manufacturing site for the production of
Soda Ash at Khewra.1953 The Khewra Soda Ash Company is Incorporated as a Public
Limited Company.1957 The Khewra Soda Ash Company is listed on Karachi Stock
Exchange (G) Limited.1965 ICI Plc acquires 50% shares of Fuller Paints1966 The name of Khewra Soda Ash Company changes to ICI
Pakistan Manufacturers Limited. 1966 ICI Pakistan Manufacturers Limited increases capacity of Soda
Ash Plant to 45,000 tons.1968 ICI Pakistan Manufacturers Limited commissions its Speciality
Chemicals Plant at Karachi.1970 ICI Pakistan Manufacturers Limited sets up its Pharmaceutical
Processing Unit in Dhaka (formerly East Pakistan) 1973 Fuller Paints changes its name to Paintex Limited. 1979 ICI Pakistan Manufacturers Limited increases capacity of Soda
Ash Plant to 65,000 tons.1980 ICI Pakistan Manufacturers Limited is listed on Lahore Stock
Exchange (G) Limited.1982 ICI Pakistan Manufacturers Limited sets up Polyester plant at
Sheikhupura with a capacity of 12,000 tons. 1982 ICI Pakistan Manufacturers Limited Commissions new Dense
Ash Plant at Khewra.1985 Imperial Chemicals Industries (Pakistan) (Private) Limited and
Paintex Limited merge into ICI Pakistan Manufacturers Limited.1987 The company name changes to ICI Pakistan Ltd.1987 ICI Pakistan increases capacity of Polyester Plant to 19,000
tons.1991 ICI Pakistan PowerGen Limited is incorporated as a Public
Limited Company.1991 ICI Pakistan launches its Seeds Business.1991 ICI Pakistan Foundation is registered as a charitable trust.1991 ICI Pakistan increases capacity of Soda Ash Plant to 100,000
tons.1992 ICI Pakistan Paints Business introduces Dulux Range of natural
white colours with added fragrance.1993 ICI Pakistan commissions a plant for manufacturing of
COMSATS Institute of Information Technology, Lahore. - 10 -
specialized automotive paints.1993 ICI Pakistan adds Polyol blending facility to its Speciality
Chemical Plant.1994 ICI Pakistan increases capacity of Soda Ash plant by 50,000
tonnes to 185,000 tonnes.1994 ICI Pakistan marks the 50th anniversary of Soda Ash production
at Khewra.1995 ICI Pakistan’s operating profit crosses the one billion rupee
mark for the first time.1995 ICI Pakistan commissions Sodium Bicarbonate plant.1995 ICI Pakistan launches SHE (Safety, Health & Environment)
Challenge 2000.1996 ICI Pakistan increases Polyester fibre capacity to 60,000 tonnes
and polymerization capacity to 91,000.1997 ICI Pakistan Limited is listed on Islamabad Stock Exchange (G)
Limited. 1998 ICI Pakistan commissions its PTA plant.1999 ICI Pakistan is awarded second position for “Best Corporate
Accounts” in the non-financial sector for its 1998 Annual Report by the South Asian Federation of Accountants.
2000 ICI Pakistan PTA Business demerges into a separate entity, Pakistan PTA Limited.
2001 ICI Pakistan launches ERP (SAP) implementation. 2002 ICI Pakistan increases capacity of Polyester Plant by 44kpta
completed through Fayzan Manufacturing Modaraba.2004 Zestril of ICI Pakistan’s Pharmaceutical Division become the top
selling ace-inhibitor in Pakistan.2006 As a part of an asset modernization and improvement plan the
Polyester Business commissions a sixth processing line.2006 ICI Pakistan launches seven core values – set of belief and
principles, which the employees live and work by.2006 ICI Pakistan crosses the Rs. 2 billion mark in operating result
for the first time.2006 ICI Pakistan’s Pharmaceutical Division enters the anti-infective
segment with its first branded generic “Icef”.2006 ICI Pakistan achieves compliance with Section 404 of the
Sarbanes Oxley Act.2006 ICI Pakistan’s Paints business launches is first super premium
range – 5 in 1 technology brand Dulux Pentalite Classic.2007 ICI Pakistan completes 50kpta expansion of its Soda Ash Plant.2007 ICI Pakistan announces 65kpta expansion of its Soda Ash
Plant.2007 ICI Pakistan is awarded the Third Best Corporate Report award
for the year 2006 by the Institute of Chartered Accountants of Pakistan an the Institute of Cost and Management Accounts of Pakistan.
COMSATS Institute of Information Technology, Lahore. - 11 -
2007 ICI Pakistan completes 50 years of continuous listing on Karachi Stock Exchange (G) Limited.
2007 ICI Pakistan constructs and hands over a Girl’s Primary School at Bararkot Near Garhi Habibullah to Earthquake Reconstruction and Rehabilitation Authority.
2008 Akzo Nobel becomes the ultimate holding company of ICI Pakistan Limited.
ICI Pakistan Businesses
Soda Ash Business:
Soda Ash Business produces and caters to approximately 70% of the Country’s
requirement for this commodity. Soda Ash has a wide variety of applications in
construction, hygiene, packaging and the paper industry and, therefore, it is an
important intermediate product to the end manufacturing industry. Situated in
Khewra the plant began commercial production in 1944.
Polyester Business:
The Polyester Business manufactures and markets polyester staple fibre (PSF), a
synthetic cotton, mainly used in the textile industry for producing blended (with
cotton) polyester rich yarn, fabrics and clothing. ICI Pakistan started
Paints Business:
The Paints Business operates in the Decorative, Industrial and the Refinish
segments. Wide range quality products and services, innovation and a legacy of
strong brands such as Dulux have been the foundations of this enterprise. Based in
Lahore, the Paints plant was acquired by ICI Plc in 1965.
Life Sciences Business:
COMSATS Institute of Information Technology, Lahore. - 12 -
The Life Sciences Business comprises three divisions: Pharmaceuticals, Animal
Health and Seeds. The Pharmaceuticals Division markets a portfolio of leading
prescription drugs sourced from renowned principals and has launched a range of
branded generics. The Animal Health Division markets superior quality veterinary
medicines for livestock and poultry from world-renowned companies as well as some
of its own brands. The Seeds Division is one of the leading providers of hybrid seeds
in the Country and a market leader in both the hybrid sunflower and fodder
segments.
Chemicals Business:
The Chemicals business comprises a unique and diversified portfolio encompassing
General Chemicals, Specialty Chemicals, and National Starch products. The
General Chemicals Business imports, blends, distributes and sells over 250
products/ variants from sixteen well-reputed international trading partners serving
every key industry in Pakistan. The Specialty Chemicals Business manufactures and
markets textile auxiliaries, adhesives, paint lattices, crop protection emulsifiers and a
range of process chemicals. Based in Karachi the plant has been operational since
1968.
Source: Annual Report - 2007
PRODUCTS
Polyester Fibres:
COMSATS Institute of Information Technology, Lahore. - 13 -
• SD- Semi Dull PSF
• SCD - Single Component Dyeing
• SDOB - Semi Dull Optical Bright
• EHT - Extra High Tenacity
• Super Bright
• Low Pill
• 1.0 Denier Microfibre
Soda Ash:
• Light Soda Ash (Na2CO3)
• Dense Soda Ash (Na2CO3)
• Sodium Bicarbonate (NaHCO3)
Paints:
• Decorative
• Refinish & Industrial
• Automotive
Chemicals:
• Fuel Oil
• Petrochemicals
• Motor Oil Additives
• Paint Additives
• Water Treatment Additives
• Adhesives
• Chlorinated Solids
• Ceramic Additives
COMSATS Institute of Information Technology, Lahore. - 14 -
• Acrylic Plastics
• Hydregenation Additives
• Explosives
• PVC Stabilizers
• Iron Coatings
• Filteration Aids
• Textile Auxiliaries
• Heat Treatment Salts
• Color Additives
• PVC Foaming Agents
Life Sciences:
Life Sciences-Pharmaceuticals Division
CARDIOVASCULAR
• Tenormin
• Tenoret 50
• Zestril
• Zestoretic
• Inderal
• Etizem
ONCOLOGY
• Nolvadex
• Zoladex
• Arimidex
• Cosadex
COMSATS Institute of Information Technology, Lahore. - 15 -
NSAIDS
• Proxen
• Synflex
ANAESTHETIC
• Diprivan (EDTA)
ANTIBIOTIC
• Meronem
CNS
• Zomig
• Seroquel
ANTHELMINTIC
• Ketress
GASTRO-INTESTINAL
• Etipro
RESPIRATORY
• Accolate
ANTI-INFECTIVES
• Icef
COMSATS Institute of Information Technology, Lahore. - 16 -
Life Sciences-Animal Health Division
ANTHELMINTICS
• Nilverm
• Nilzan
• Nilzan Bolus
• Zanil
• Systamex
• Oxfenda XC
• Endectin
INTRAMAMMARY
• Spectrazol
ANTIPROTOZOALS
• Butalex
• Imizol
ANTIBIOTIC
• Amoxivet
VACCINE
• Decivac FMD
INJECTABLE
• Somatech
COMSATS Institute of Information Technology, Lahore. - 17 -
Life Sciences-Seeds Division
CANOLA
• Hyola 401
CORN SEED (For Spring Season)
• Garst 8464
• Garst 8288
CORN SEED (For Autumn Season)
• Hycorn 11 Plus
• Hycorn 984
SUNFLOWER
• Hysun 33
• Hysun 38
• Hysun 39
FODDER
• Sweet Jumbo
• Rambo
COMSATS Institute of Information Technology, Lahore. - 18 -
The Akzo Nobel Chapter
“ICI Pakistan now operates as an independent business unit within
Akzo Nobel and as a part of its specialty chemicals portfolio”
It was announced on 13th August 2007 that Akzo Nobel and ICI Plc. had reached an
agreement on the terms of a recommended cash offer by Akzo Nobel for ownership
of ICI Plc. In October 2007, an agenda and accompanying Shareholder’s Circular
were published stating that, subject to the approval of the shareholders of Akzo
Nobel and ICI Plc, completion of the ICI deal was to take place on 2nd January, 2008.
During the month of November, Extraordinary General Meeting of the shareholders
of both Akzo Nobel and ICI Plc were held, during which Akzo Nobel and ICI Plc
shareholders voted 79% and 92.5% respectively in favor of the acquisition. On 2nd
January, 2008 the acquisition of ICI Plc by Akzo Nobel was officially completed and
the two companies became one.
COMSATS Institute of Information Technology, Lahore. - 19 -
Here is Bruce, as our logo is affectionately known. Bruce has been with us for more than 20 years and we have transformed him into an energetic and purposeful character that is more representative of the new Akzo Nobel.
The logo reminds us that our success has been built on forward-looking individual and collaborative achievement. The logo is the embodiment of Tomorrow’s Answers Today.
You will notice that AkzoNobel is now one word. It’s one word because we are one company. This might seem like a small change but it represents a great deal. It says that we are combining our strengths and talents to deliver Tomorrow’s Answers Today.
On 2nd January 2008, the acquisition of ICI by Akzo Nobel was officially completed
and the two companies became one creating a leading industrial company in coating
and chemicals. All businesses of ICI Pakistan have become a part of Akzo Nobel’s
continuing coating and chemicals portfolio. With a sold standing in the market, ICI
Pakistan are excited to be a part of this new company and are well posed to capture
the dynamic avenues it offer for future growth in coatings and chemicals and are set
to become bigger, better and more focused ever before.
Akzo Nobel has the distinction of being Fortune 500 company and listed on the
Euronext Amsterdam Stock Exchange. Complementing its long history dating back
to 1777 is the endless application of Akzo Nobel’s products across many
downstream industries. Akzo Nobel is the Chemicals industry leader on the Dow
Jones Sustainability Indexes as well as being included on the FTSE4 Good Index.
The new company has a presence in over 80 countries in the world, and is the
largest single industrial Company in decorative coatings. It stands on a solid platform
of combined global presence, technologies, products, brands and expertise that will
benefit their customers and drive the new Company to even greater success.
COMSATS Institute of Information Technology, Lahore. - 20 -
Key Facts• 14.4 billion in 2007
revenues*• Around 60,000 employees*• No. 1 global position in
Performance Coatings, and largest Decorative Paints Company
• One of the world’s leading Speciality Chemicals Producers
Chemicals Industry Leader Dow Jones Sustainability indexes
FORTUNE 500
Soda Ash Business
ICI Pakistan’s Soda Ash Business caters to approximately 70% of the Country’s total
requirement for this commodity. The Business mainly uses indigenous raw materials
and locally made equipment, thereby accruing savings to the Nation’s foreign
exchange reserves through import substitution. The major raw materials used are
Salt, supplied by the Pakistan Mineral Development Corporation from the Khewra
mines, PUNJMIN (Punjab Mineral Development Corporation) and other private
suppliers, and Limestone from ICI Pakistan’s own quarries in Tobar and Dandot as
well as some private suppliers.
In addition Coke, an essential raw material, is being imported from China because of
its non availability from local supplier Pakistan Steel Mills. The water for the plant
comes from Watli, a natural spring as well as the river Jhelum. The plant generates
7.0 MW of its own electric power and uses around 1.0 MW of WAPDA power, which
is backed up by diesel generators.
As the production capabilities have changed, so have the various markets and
applications for Soda Ash. Today Soda Ash consistently ranks as one of the top 10
inorganic chemicals produced in the world and is an essential raw material to a
variety of industries. In the Pakistani market it is largely consumed as a raw material.
Soda Ash is used as a builder or filler in formulation of soaps, detergents, and other
cleaning compounds.
COMSATS Institute of Information Technology, Lahore. - 21 -
"We will remain market leaders in Soda Ash and derivatives business in
Pakistan by strengthening our customer base while being the lowest cost
producer in the region and the most reliable supplier of quality products."
The principal use of Soda Ash in the glass industry is to bring down the melting
temperature of silica sand (the main raw material). Soda Ash, with its low melting
point and reactivity, acts as a flux for other ingredients, primarily Silica and other
oxides, allowing them to be melted at reasonable temperatures. In the paper
industry Soda Ash is used in the preparation of the sodium sulphite buffer liquid used
in the pulp manufacturing process. Soda Ash even finds application in the water
treatment segment by adjusting the pH of water when it is in acidic condition.
ICI Pakistan’s Soda Ash business is committed to remain the preferred supplier for
its customers and strives to maintain its competitive advantage through the
relentless pursuit of manufacturing excellence and by delivering quality products
through a world-class plant.
The Soda Ash market in Pakistan is continuing to grow and ICI’s experience in the
Soda Ash Business in these 62 years is an asset to the Company in the face of
changing markets and emergent competition. The Company uses this competitive
advantage along with continued improvement in efficiencies, control over fixed costs,
improved productivity and above all a sustained market share and strong customer
loyalty to continue to be the market leader in the Soda Ash industry in Pakistan. ICI
Pakistan’s Soda Ash plant expansion and modernisation at Khewra has placed the
Business in a position of strength to face these challenges.
The Company continues its endeavour to make a meaningful contribution to the
people of Khewra in the health, education and environment sectors. This symbolises
ICI’s commitment to growth and success and demonstrates its continued focus
towards improving the quality of service to its customers and the community.
COMSATS Institute of Information Technology, Lahore. - 22 -
COMSATS Institute of Information Technology, Lahore. - 23 -
SSH&E
BusinessExcellenc
e
CustomerObsession
Trans-parency
Ethics
Innovation
Valuing People
ICI Pakistan Limited, Soda Ash Business
We Live Our Values
VALUES
Employees of ICI Pakistan work and live by the following values based on the belief
and principles. These are:
The foundation of our organization
Not open to compromise
Timeless
All equal in importance
1: SSH&E - “Nothing We Do is Worth Getting Hurt for”
2: Valuing People – “Our Competitive Edge”
3: Innovation – “Creativity for Improvement”
4: Business Excellence – “Better, Faster and Best Value”
5: Customer Obsession – “They Pay Our Bills”
6: Transparency – “Beyond Reproach”
7: Ethics – “Un-compromising Integrity”
Our Behaviour (ICI Pakistan Ltd)
COMSATS Institute of Information Technology, Lahore. - 24 -
ICI believes that based on our values, our behaviour is consistent and corresponds
to the following:
Acting Responsibly
Responsibility
Agility
Boldness
Candor
Development Orientation
Intellectual Honesty
Meeting Commitments
No Shortcuts
Respect for the Individual
Safety Consciousness
Team-orientation
Tolerance
Management Structure
Before we discuss the management structure of the Soda Ash Business, it is
important that we first observe the board structure of the whole company.
Board of Directors:
ICI Board consist of ten members, headed by the Chairman of the board. Currently
is comprise of six non-executive directors and four executive directors. Mr. M. J.
Jaffer (non-executive directors) is the current chairman of the board and Mr. Waqar
A. Malik is the chief executive of the company.
COMSATS Institute of Information Technology, Lahore. - 25 -
Main responsibilities of the board is to guide the company and form policies
consistent with objectives of the company i.e. being the industry leader in creating
value for the customers and shareholders.
Executive Management Team:
The management of ICI is done through an executive team headed by the Chief
Executive of the company. Team includes head of the management team from each
business (generally Vice President or General Manager) and also includes Chief
Financial Officer and G.M. Human Resources. So the team of eight members is
formed which manage the overall business of the ICI Pakistan Ltd.
The Executive Management Team is responsible for delivering the Group’s two
major strategic thrusts of driving performance and reshaping the portfolio. The
members of the team have an in-depth experience of managing complex
international businesses and functions within ICI and other leading companies.
COMSATS Institute of Information Technology, Lahore. - 26 -
ORGANIZATIONAL CHARTSODA ASH BUSINESS
VICEPRESIDENT
OperationsManager
ProductionManager
MedicalSuperin-
tend
H.RManager
MaterialsManager
MarketingManager
FinanceManager
TechnicalManager
TechnicalEngineering
BUSINESS STRATEGY OF ICI SODA ASH
COMSATS Institute of Information Technology, Lahore. - 27 -
FinanceDept.
Accounts & Store
I.T.Dept.
Right PeopleRight PlaceRight Time
Right Motivation
Employee Communicat
ion
Succession
Planning
Job ProfilingQualification
SkillsExperience
Competencies
Recruitment Appointmen
tCarrier
DevelopmentPotential Appraisal
Employee
Information
TrainingLearning And
Educati
Performance
Managemen
Reward and
Recog-nition
Specialist HelpChange
ManagementDispute
ResolutionDiversity
Management
People Performing to Full potential
Output Aligned to Business Objectives
Organization and workforces Requirement
Business Strategy
Chapter 2
MARKETING
Marketing Environment
Competition:
Soda Ash is produced on the base of mass scale production in order to
achieve low cost because in this sector, low cost matters a lot. That’s why it is not
such a segment in which many producer enter because if this happen, every one will
have either surplus production if he operates on mass production or have high cost
in he operates as per demand of the market. That’s why in this sector, mainly there
are two industries which are production Soda Ash. First one is the ICI Pakistan Ltd,
Soda Ash Business, Khewra and second one is the Olympia Chemicals Limited.
So ICI the only competitor ICI has to face is the Olympia Chemicals Ltd who
has setup is plant in Warcha Distt. Khoshab. ICI has a clear domination in this
COMSATS Institute of Information Technology, Lahore. - 28 -
segment over his competitors due to many reasons. First is that ICI has established
its plant in 1944 while Olympia is new in this segment. Further their capacity is only
140 tons/day which is very less than the ICI. That’s why market share also reflects
this distinction and ICI holds 70% of the market, while Olympia has only 30% of the
market share.
Target Market
(a) Consumer or Industrial: Soda Ash is mainly an industrial product, that’s why
target market for the Soda Ash is the industries and especially the Distributors
and the Dealers. Mostly market is in the hands of ICI and there is no close
substitute of the products, that’s why consumers are targeted for the product.
Further industries which do not require it in huge amounts also prefer to buy it
from the dealers. That’s why main target market is the dealers and industries
which require it in huge amounts and consumers are not influenced through
mass media.
Another thing is that two products out of three are industrial nature, and only
Sodium Bicarbonate is used by home consumers as Baking Soda. That’s why
industry has more importance than the house holds.
(b) Buying Characteristics: Soda Ash is purchased in bulk amount by the
industries and dealers. Purchase orders are not of small quantities (e.g. 5, 6
bags) but are in tons. Transportation also matters because plant is situated in
Khewra. So purchase orders are usually in tons.
(c) Market Potential: Due to high growth in the industrial sectors in Pakistan,
there is huge market potential. Soda Ash is raw material for different
industries, e.g. Paper, Textile, Detergents, FMCG Products, etc. That’s plant
operates at its full capacity and when one expansion project completes,
second starts.
COMSATS Institute of Information Technology, Lahore. - 29 -
Product
ICI Pakistan produces the following products at the
Soda Ash Plant in Khewra:
Light Soda Ash (Na2CO3)
o Light Soda Ash is used as a raw material in Detergents, Papers,
Silicate, Chemicals and Textile Industries.
Dense Soda Ash (Na2CO3)
o It is used a raw material in Glass Industry
Sodium Bicarbonate (NaHCO3)
o Used as a baking soda
o Poultry, Cattle Feed, Leather Tanning and Textiles.
Classification:
Soda Ash is generally classified as an Industrial Product. It includes two products
mentioned above. Two out of three and generally used in industrial. Only one has a
limited use as a Baking Soda in house holds.
Packing and Labelling:
As far the packing and labelling is concerned, all three
types of Soda Ash are packed in Poly Propylene Bag.
COMSATS Institute of Information Technology, Lahore. - 30 -
Bags are purchased from foreign countries in bulk
quantities usually in more than .2 million while they are printed by the plant itself
during the packing. Each bag is contains information regarding its category, its
weight, ICI logo and “Made in Pakistan” logo.
However there is difference in the Packing weight of the all three types. ICI recently
has issued new packing. Weight of their packing is as follow:
Type Weight Size of BagLight Soda Ash 50 Kg 24 x 43 inchDense Soda Ash 50 Kg 20 x 35 inchBy Corp (Metha Soda) 25 Kg 19 x 26 inch
Distribution
ICI has more than 70% share in the Soda Ash business in Pakistan. This is because
of its vast market coverage through the powerful distribution network of its
distributions. Mainly Soda Ash is mainly distributed through the network of
distributors through Pakistan. Different regions are assigned to different distributors.
They purchase Soda Ash from ICI and distributed it to different consumers and
industries in their areas which contact them for sale.
Along with the distribution network, big industries also purchase directly from the ICI
as they need it is bulk amounts. These include glass and chemicals industries. They
directly contact sale department of the ICI Soda Ash business and purchase it from
there at market price or if they is a discount agreement then at discounted price
rather than the distributors.
This is al for the local sale. However ICI is also involved in international sale. Further
ICI is also distributor of the some Soda Ash manufacturers in Pakistan in order to
fulfil the demand of soda ash in Pakistan and abroad. Sale agreement is the duty of
COMSATS Institute of Information Technology, Lahore. - 31 -
marketing department. Then purchase department arrange the delivery of the soda
ash from Khewra to the destination with help of the Karachi Head Office. Channel is
selected with the mutual understanding with the customer depending upon the need
of the customer i.e. Urgent or normal. On this base it is decided whether it would be
sent through Air Mail, or through Voyage. Further the clearing agents and shipping
companies are selected and consignments are fully insured.
Pricing
Prices are fixed at cost plus margin. For distributors, a margin is fixed on the market
price. They get it at discounted price and sale it on the market price to the
consumers. However ICI also has discount agreements with its value able
customers. For that company offers them a discount percentage for some period
(i.e. 6 month, 1 year) etc. and this discount is carried on with mutual understanding.
Promotion
ICI has a proper marking department with a fully experienced team. A proper budget
is allotted for the sale activities. However sale is not done through advertisement in
news papers, television, radio etc because of the nature of the products. That’s why
selling are mostly based on relationship with the dealers.
However company spends a lot on building the image of the company. For that a lot
of activities are done in fulfil the corporate social responsibilities. Through this the
brand name is introduced with the people and image of the company is
strengthened.
Meeting of the dealers is arranged frequently. Further best performing dealers are
also awarded cash prized and trips to different local and foreign countries. This
boosts up their moral and they deliver their best in order to achieve high targets.
COMSATS Institute of Information Technology, Lahore. - 32 -
Customer Satisfaction Programme:
Customer satisfaction teams are formed to tackle quality related issues prompted by
customer’s complaints. Each team comprise of operators, technicians, contract staff
and mangers and are allocated different aspect of quality control in order to focus on
all problem areas. The teams met on a monthly basis and implement original
solutions to improve quality. This focused approach pay off in the form of reduced
number of complaints and result in end user satisfaction.
Chapter 3
PRODUCTION AND OPERATIONS
Products:
Soda Ash Plant manufacturers three type of core products:
Light Soda Ash (Na2CO3)
Dense Soda Ash (Na2CO3)
Sodium Bicarbonate (NaHCO3)
Production System:
ICI’s Soda Ash production plant is situation in Khewra Distt. Jhelum. In this system,
main raw materials are Salt, Lime Stone, Coke and Ammonia Anhydrous. Due to
location of the plant in Khewra most raw materials are readily available. Further ICI
has his own quarry for limestone production.
COMSATS Institute of Information Technology, Lahore. - 33 -
In Soda Ash production, these raw materials are converted into Soda Ash through
different processes. Currently plant is operating at a capacity of 235,000 tons per
year and an expansion project of 50,000 tons is recently completed.
Further ICI Pakistan Ltd has further started expansion of its Soda Ash plant by an
additional 65,000 tons. This further investment in Soda Ash is fully in line with ICI
Pakistan’s continued commitment towards the development of import substitution
industries to cater to the local demand.
The total nameplate capacity of the plant after completion of the current expansion
will be around 350,000 tons in 2009. ICI conveyed the information to investors
presumably under the listing regulations of the stock exchangers.
COMSATS Institute of Information Technology, Lahore. - 34 -
Solvay Process for Soda Ash Manufacturing
COMSATS Institute of Information Technology, Lahore. - 35 -
Raw Materials:
Salt (NaCl): Salt is the main raw material for the Soda Ash production. So salt is
purchased main from the PMDC (Pakistan Mineral Development Corporation) in
Khewra and some portion is also purchased from the private mines in Khewra
and nearby areas. Further ICI also has an agreement to collect the rain water
that is accumulated in the pools of the Salt Mine of Khewra. This saves a lot of
time and working for the plant.
Lime Stone: Lime stone is partially collected from the own Quarries at Tobar &
Dandot. ICI has acquired the quarries in order to get the high quality lime stone
timely and rest is purchased from the local contractors and miners. 30-35 days
buffer stock is always maintained at the work.
Coke: Coke is purchased from Pakistan Steel Near Karachi on Advance payment
through Karachi Head Office. Steel is purchased and handed over to contractors
for processing as this coke is 80mm in size. They process it and required size
coke (30-35mm) is sent to the plant. 35-40 days stock is always maintained at
the plant.
Ammonia Anhydrous: It is purchased from the fertilizer plant having surplus
stock. It is generally purchased from M/s Dawood Hercules & Pak China
Fertilizers, Haripur.
Other Chemicals: Further some other chemicals are also involved which are
Sodium Sulphide
Ammonium Sulphate
Hydro Caloric Acid
Nalco Water
These chemicals are first purchased from the local market. Some of them are not
available in Pakistan. So these are purchased from foreign countries.
COMSATS Institute of Information Technology, Lahore. - 36 -
Manufacturing of soda ash through Solvey process
Main Raw material:
1. Lime Stone (CaCO3)
2. Coke (C)
3. Rock Salt (i.e.) Sodium Chloride (NaCl .H2O) as brine
4. Ammonia (NH3)
Solvey Process consists of the following steps:
1. Preparation of Ammonical Brine
Brine is pumped into tower and a steam of ammonia gas is passed through it.
The brine becomes saturated with ammonia. At the same time calcium (Ca) and
magnesium (Ma).
Are precipitated as carbonates and allowed to settle down.
2. Carbonation
The sodium chloride salt (NaCl) and ammonia mixture is passed into carbonating
tower (solvey tower) it is consists of a large number of superposed cylindrical
compartments. The bottom of each compartment has a large circular hold
covered with a preferated sieve the object of which is to break up the carbon
dioxide (CO2) into small bubbles to obtain maximum absorption of the gas.
The carbon dioxide (CO2) is pumped in at the bottom of the tower and the
ammonical brine is admitted from the top. In such a way as to fill the tower
COMSATS Institute of Information Technology, Lahore. - 37 -
almost completely. The absorption of carbon dioxide (CO2) by the ammonical
solution forming ammonium carbonate and then ammonium carbonate liberates
considerable heat which is removing by cold water coils in the lower section only.
During the reaction the temperature is kept at 30-40*C but near completion the
temperature is reduced to about 15*C, to ensure maximum separation of sodium
carbonate. Carbon dioxide is obtained by ignition of the sodium bicarbonate and
by heating calcium carbonate in special kiln.
3: Filtration
The solid sodium bicarbonate is filtered off, washed with a little water dried and
heated in ovens to get Na2CO3.
2NaHCO3 Na2CO3 + H2O + CO2
Carbon dioxide produced is used again.
4: Recovery of ammonia
As ammonia is much more costly than sodium carbonate, so great care can be
taken to recover as much of ammonia as possible. The liquid, from the filters
contains nearly all the ammonia as ammonium chloride and ammonium
carbonate.
The free ammonium is distilled off in steam. Lime obtained from lime kiln is
added to ammonia recovery tower steam is blown in so as to generate ammonia
for next use.
COMSATS Institute of Information Technology, Lahore. - 38 -
Heat
Ca (OH)2 + 2NH4Cl CaCl2 + 2NH3 + 2H2O
(NH4).2CO3 + Ca (OH) 2 CaCO3 + 2NH3 + 2H2O
The information about the process is given from the text book of chemistry-11.
The original process used in the manufacturing of soda ash based upon 10 steps
which are confidential but these are also based upon these lines.
Use of Computer / Technology in the Production Environment:
There is a lot of computer technology involved in the production. There is a
control room form where production activities are observed and controlled.
Further system is greatly influenced by the computer and robot technology and
some process are based on Mechatronics technology which is automated robot
system controlled by the centre control room.
Quality Assurance System:
Quality assurance is an important part of the productions. Quality Insurance
Team make is sure that processes are as per quality standards. Production is
also observed and a fixed portion of each batch is tested in order to assure
quality. ICI have high quality standards and never compromise on quality.
Warehousing and Storage:
Ware house is also located at the site area. When Soda is manufactured, it is
packed and labelled. Then these bags are brought in the ware house where they
are recorded and stored and then sent to the different destinations in the country
and outside the country.
COMSATS Institute of Information Technology, Lahore. - 39 -
SSH&E Programme (Safety, Security, Health & Environment)
Goal of ICI is to be the industry leader in the production and sale of products,
which benefit society. They provide a safe and healthy work place for both staff
and contractors, and act responsibly towards the communities and environment
in which they operate.
This is achieved by the continuous improvement of their first class SSHE
performance through corporate leadership, the dedication of their staff and the
application of the highest professional standards in their work.
SSHE Logo:
Good, safety, health and environmental performance
are essential to the long-term success of ICI.
Recognizing this and to build on the progress already
made, the SHE symbol has been developed to
encourage a unity of purpose across the Group.
There are three key elements to the symbol:
Unity of Purpose: Represented by the sculpture’s form of a circle to
signify the common SHE goals of the businesses and the ICI Group
worldwide.
People: Depicted by the face, representing ICI staff, all intent on
improving all aspects of safety, health and environment, and supporting
strong ethical values.
Care: The hand represents care for oneself, for others and the
environment. It shows personal responsibility.
SSHE Policy:
COMSATS Institute of Information Technology, Lahore. - 40 -
ICI will ensure that:
(a) Its activities are conducted safely;
(b) The health of its employees, its customers and the public will be protected;
(c) Environmental performance will meet contemporary requirements;
(d) Its operations are run in a manner acceptable to the local communities;
(e) Employees, capital, information and other assets will be protected from
deliberate harm, damage or loss.
SSHE OBJECTIVES:
Safety
Health
Energy
Greenhouse Gases
Ozone Generators
Water use
Aquatic Oxygen Demand
Hazardous Waste
Non-hazardous Waste
Bio diversity
Land Assessment
Reduce Hazardous Substances to Air
Acid Gases
Systems
Distribution Incidents
Suppliers
COMSATS Institute of Information Technology, Lahore. - 41 -
Chapter 4
FINANCE
Major Highlights of 2007
Net Sales income and gross profit were up by 18% each.
Operating result was up by 20%
Profit before and after tax at Rs. 2,768.5 million and Rs. 1,784.8 million
were up by 31% and 23% respectively.
Earning per share increased by 23%
Investment of over Rs 2 billion on major projects expansion of Soda Ash
plant by additional 65kpta, investment in ICI Pakistan Power Gen Limited
(wholly owned subsidiary of ICI Pakistan Limited) to finance a Waste Heat
Recovery & Power Plant generally known as Co-Gen.
The company declared a total dividend (interim and final) of 60% i.e. Rs. 6
per share for the year ended 2007 compared to Rs. 5.5 per share for
2006.
Rs. (million)
25,973
21,948
21,054
21,303
COMSATS Institute of Information Technology, Lahore. - 42 -
Turnover
2003
2004
2005
2006
2007
21,156
Rs. (million)
2,971
2,479
1,842
1,347
1,088
Turnover by Business
40%
19%
22%
10%
9%
Polyster
Soda Ash
Paints
Life Sciences
Chemicals
COMSATS Institute of Information Technology, Lahore. - 43 -
Operating Profit
2003
2004
2005
2006
2007
Turnover by Business
7%
13%
29%29%
22%
Polyster
Soda Ash
Paints
Life Sciences
Chemicals
Balance Sheet
For the year ended 31st December, 2007
Amount in Rs. ‘000
ASSETS 2007 2006Non-Current Assets: 8,506,736 8,343,260Property Plant and Equipment 39,737 71,774
8,546,473 8,415,034Deferred Tax Assets – Net 354,456 1,029,589Long-term investments 582,500 212,500Long-term Loans 204,867 175,687Long-term Deposits and
prepayments
59,888 72,919
1,201,711 1,490,6959,748,184 9,905,729
Current Assets:Stores and Spares 605,480 705,639Stock-in-Trade 2,311,336 2,347,790Trade Debts 1,049,464 730,676Loans and advances 137,680 174,039Trade deposits and short-term
prepayments
343,570 287,159
Other receivables 658,489 549,933Taxation recoverable 337,032 437,468
COMSATS Institute of Information Technology, Lahore. - 44 -
Cash and Bank Balance 3,615,056 1,791,1519,058,107 7,023,855
TOTAL ASSETS: 18,806,291 16,929,584
Profit & Loss Account
For the year ended 31st December, 2007
Amount in Rs. ‘000
2007 2006
Turnover 25,973,009 21,947,688
Sales Tax, Commission, and
discounts
(2,943,274) (2,373,570)
Net Sales & Commission Income 23,029,735 19,574,118
Cost of Sales (18,223,615) (15,492,648)
Gross Profit 4,806,120 4,081,470
Selling and distribution expenses (1,074,549) (876,075)
Administration and general expense (760,201) (726,377)
2,971,370 2,479,018
Financial Charges (146,421) (319,301)
Other Operating Charges (222,345) (171,127)
(368,766) (490,428)
Other Operating Income 165,919 129,207
Profit Before Taxation 2,768,523 2,117,797
Taxation (983,723) (662,169)
Profit After Tax 1,784,800 1,455,628
(Rupees) (Rupees)
COMSATS Institute of Information Technology, Lahore. - 45 -
Earning Per share (Basic &
diluted)
12.86 10.49
RATIO ANALYSIS
Ratio refers the one number in terms of another. The purpose of ratio analysis
depends upon the event for which the analysis is made. Management likes
to know about the operational efficiency and think of such ratios as return
on investment, turnover of fixed assets, and net profit to sales etc.
Creditors like to know the ability of the company to meet its current
obligations and therefore, think of current and liquid ratios, turnover of
receivables, and coverage of interest by the level of earnings. So ratio
analysis is important from all perspective.
ACTIVITY RATIOS
1) Total Asset Turnover:
Formula = Sales (Revenue) / Total Assets
0
0.5
1
1.5
2
2.5
3
2003 2004 2005 2006 2007
Total asset turnover indicates the efficiency with which firm uses it assets
to generate sales (revenue). The higher the firm’s total assets turnover the
more efficiently its assets have been used. This measure is probably of
greatest interest to management, because it indicates whether the firm’s
COMSATS Institute of Information Technology, Lahore. - 46 -
Year Ratio
2003 2.95
2004 2.04
2005 1.84
2006 1.71
2007 1.85
operations have been financially efficient.In five years Total Asset Turnover
has a negative trend butafter in 2007, it showed a positive increase.
PROFITABILITY RATIOS:
1) Gross Profit To Sale:
Formula = (Gross Profit / Net Sales) x 100
0
5
10
15
20
25
2003 2004 2005 2006 2007
Comparing the gross profit ratio with the industry shows whether company is
performing good or bad when compared with the competitors. It determines of
efficiency of the performance of the company and in last five years, it is on the
positive end.
2) Net Profit To Sale:
Formula = (Net Profit after tax / Sales) x 100
COMSATS Institute of Information Technology, Lahore. - 47 -
Year Ratio
2003 14.70%
2004 15.62%
2005 18.14%
2006 20.86%
2007 20.87%
0
5
10
15
20
2003 2004 2005 2006 2007
Net profit margin measures the percentage of sales revenue remaining after all
cost and expenses, including interest and taxes have been deducted. Net profit
margin shows a very minor positive increase in last year although gross profit to
sale ratio is increasing. So company should take care of its expanses and should
increase it.
3) Return on Equity:
Formula = (Net Profit after tax / Share holder’s equity) x 100
0
50
100
150
200
250
2003 2004 2005 2006 2007
It measures the shareholder’s return earned on their investment in the firm. This
ratio indicates how profitable a company is by comparing its net income to its
average shareholder’s equity. For last five years ROE showing mixed downward
trend but it’s increased in 2007 and it is positive sign for company.
COMSATS Institute of Information Technology, Lahore. - 48 -
Year Ratio
2003 4.22%
2004 16.13%
2005 12.19%
2006 7.43%
2007 7.74%
Year Ratio
2003 55.20%
2004 205.06%
2005 162.33%
2006 104.87%
2007 128.58%
MARKET RATIOS:
1) Market Price per Share:
0
50
100
150
200
2003 2004 2005 2006 2007
Share prices in a publicly traded company are determined by market supply and
demand, and thus depend upon the expectations of buyers and sellers.
Increasing share price of ICI is reflecting the companys’s future and recent
performan, including potential growth.
2) Earning Per Share (EPS):
Formula = Earning available for common shareholders/No. of outstanding
shares
COMSATS Institute of Information Technology, Lahore. - 49 -
Year Price per share
2003 85
2004 89.65
2005 140.50
2006 115.50
2007 196.65
0
5
10
15
20
25
2003 2004 2005 2006 2007
Earnings per share is generally considered important variable in determining a
share's price. It serves as an indicator of a company’s profitability. Up to 2006, it
was decreasing but in 2007 it showed a positive trend.
Chapter 5
HUMAN RESOURCE MANAGEMENT
Human Resource Management is an important factor in supporting the
achievement of company business, meeting results and the attraction of those
with the potential to contribute to business performance i.e. to be seen as a
Preferred Employer.
A compensation and benefits strategy supporting drive for a more efficient,
flatter structure, with increased employee involvement and improved
communication was developed at ICI. Efforts continue for ensuring that the total
compensation remained competitive in the Pakistan labour market and
represented value for money for the company.
Compensation and benefits practices are regularly compared with other
employers to develop the company’s compensation and benefits. Any salary
review is then based on market practices, company and employee performance,
relative job size and skill scarcity.
COMSATS Institute of Information Technology, Lahore. - 50 -
Year Earning per share
2003 5.52
2004 20.51
2005 16.23
2006 10.49
2007 12.86
HR Department at ICI is one of the strongest HR departments in Pakistan.
Some local companies think that HR is not such a productive department, but the
loss of money and resources but ICI is well aware of the benefits of the HR
Departments. That’s why it has a fully establish setup. No of employees of the
Soda Ash Business are as follow:
Managerial Staff : 96
Non-managerial Staff : 320
Recruitment Procedure
For Managerial Staff:
To hire the managerial staff, following procedure is followed:
COMSATS Institute of Information Technology, Lahore. - 51 -
Advertise
Applications
Short Listing
Interview
Final Interview with VP
Medical Check-up
First of all, post is advertised in the news papers and the official website of
the company and applications are invited. After dead line, all applications are
processed by HR department and candidates are short listed with the
consultation of the Head of the concerned people. Then these short listed
candidates are interviewed.
Then comes the final interview with the Vice President of the company
and final candidates if selected. After this candidate has to prove his Medical
fitness and passing the medical, he/she is selected.
Non-managerial Staff:
For non-managerial staff, process depends upon the importance of the post. If
the post is important one, then previous procedure is followed. However if the
post is not of such important e.g. un-skilled labour, etc. then they are hired
through referrals etc.
Performance Evaluation
For the purpose of performance evaluation, employees are allocated objectives
in the start of the year. These objectives are clearly explained to the employees.
Now performance of the employees is judged by comparing their performance
with the objectives and task assigned to them. These objectives are decided in
light of the discussion with the employees and are realistic.
Many benefits like salary increments, bonuses etc. are linked with this
performance evaluation. If all tasks assigned are completed and objects are
meeting, there is a huge increment in the salary of the employee and bonuses
COMSATS Institute of Information Technology, Lahore. - 52 -
are also announced for the shinning one. However these benefits can be cut
down, if employee’s performance remains below the standards.
However the reasons behind this failure are also studies. It is checked whether
these objectives were un-realistic or there were other reasons behind this. If
employees need any training, he is fully provided a chance to improve his skills
by training.
Problems encounters
When an employee faces any problem regarding HR department or in case of
grievance, he can directly contact Human Resource Department and can bring
his view in from of the staff. HR staff is required to solve his problem as early as
possible. However if employees is not satisfied with the HR department at
Khewra, further he can contact HR Combined Services in Head Office. Even now
if he is not satisfy, he can directly contact ICI Plc Ltd, London through “Speak Up
Programme”. Through this programme, employees are allowed to contact the
parent company in United Kingdom for his problem.
Compensation & Benefits
Provident Fund: Provident fund is provided to both management staff and non-
management staff at the time of retirement or leaving the company. However
employee has to serve a fix time period in the company in order to claim for the
provident fund in case of leaving the company.
Gratuity: Employees are also awarded gratuity at the time of retirement or
leaving the company. However no gratuity is awarded in case of the dismissal
from the company.
COMSATS Institute of Information Technology, Lahore. - 53 -
Pension: Pension is awarded in case of the management staff. Further they can
also claim for the benefits under the provision of the Employees Old Age Benefits
Institute and as per laws. However in came of non-management staff, no pension
is awarded. Such employees can only claim for the Employees Old Age Benefits.
Non-Work Related Facilities and Benefits:
Wheat system: They are providing wheat to their employee’s @Rs.10 per
40 KG to self and to the employee’s children till the age of 18 years of son
and till marriage of daughter.
Staff Colony: There is a staff colony for the employees of the company
these houses are furnished according to the grade as follows.
o Air Conditioner
o Telephone
o Geezers
o Heaters
o Refrigerator
o Water, Gas and Electricity
o White wash etc. etc.
House Allowance: House allowance to those employees who are not
living in the staff colony.
Pick and Drop Service: Pick and drop service to those employees who are not
living in the colony and are away from the site.
COMSATS Institute of Information Technology, Lahore. - 54 -
Car and Motor cycle Loan: They also provide motor cycle loans to those
employees who are willing to buy that and is deducted from there pays as
installment @ Rs.1000 per month.
Winington Hospital: A full time working fully equipped 20 beds Hospital
with 1 doctor and 1 lady doctor supported by other visiting doctors and
other well trained medical staff for employees.
Medical Allowance: Medical allowance to those who are referred by the
doctor outside.
Self (Employee and His wife) @ 100%
Dependent (Children and Parents) @ 80%
Winington School: A very well established school up to class 10th.
Fair Price Shop: A Fair Price Shop for employees who deliver things at
cost (No profit no loss).
Ladies Welfare Centre: Ladies welfare centre for training of ladies like
tailoring cooking etc.
Alkali Supports Club: Alkali supports club for refreshment of workers
(non-management staff).
Winington Club: Winington club for refreshment of management staff.
Guest House: A well furnished guest house.
Employees Creational Programmes
COMSATS Institute of Information Technology, Lahore. - 55 -
Employees at ICI are considered the main ingredient for the success. So in order
to over come some barriers, keep employees motivated and reducing the stress
of work on the employees, ICI Soda Ash Business arranges different events
frequently. These are:
Musical Nights: There are musical shows are conducted on different
occasions like 14 August etc. all the employees and their families are
invited on that function.
Drama Shows: Drama shows are also a part of grand show.
Annual Dinner: Annual dinner is a wonderful program which is arranged
by HR. in this program all the management and non management staff get
together and have a sweet dinner.
Bassant Mala (kite festival): Bassant Mala also a very interesting event.
Eid Millan Party: Eid millan party after Eid-ulfitter is a very sweet event.
Annual Games: Annual games are conducted of every type like cricket,
hockey, football, athletics, etc. every department has its own team and
every department has to participate in this event.
Murree Trip: Annual Murree trip is a wonderful event employees go their
have a “mango party” and a lunch by company.
Grievance Management: As the concept of team work is prevailing in ICI
Soda Ash so all the grievances are solved at the lover level and that is the
culture of ICI that if some goes to his boss for a matter that can be solved
by his college that is considered bad. So all the grievances are
management at the team level unless any serious matter.
COMSATS Institute of Information Technology, Lahore. - 56 -
Insurance Policy: All the employees are insured from all aspects. That
means if in case of natural death or in case of murder he is insured and if
case his is bodily become disabled in the factory due to any reason his
every body part like finger eyes hands legs etc. these are also insured.
Chapter 6
SWOT ANALYSIS
SWOT Analysis is a simple framework for generating strategic alternatives from a
situation analysis. It is applicable to either corporate level or the business unit
level and frequently appears in marketing plans. SWOT stands for Strengths,
Weaknesses, Opportunities and Threads. The SWOT framework was described
in the late 1960’s by Edmund P. Learned, C. Roland Christiansen, Kenneth
Andrews, and William D. Guth in Business Policy, Text and Cases (Homewood
IL: Irwin, 1969).
As far the SWOT analysis of ICI is concerned, situation show the following facts:
Strengths:
COMSATS Institute of Information Technology, Lahore. - 57 -
Strong Brand Name
Good reputation among customers
Cost advantage from proprietary know-how
Exclusive access to high grade natural resources
Favourable access to distribution networks
Resources, Assets and People
Innovation Aspects
Experience, Knowledge & Data
Quality process and procedures
ICI enjoys a good reputation not only in Pakistan but across the globe. Further
recently it is acquired by Akzo Nobel which is also chemical industry leader in the
world. So it strengthen the image of Soda Ash business. Further resources are
readily available in Khewra which is situation among the Salts, Lime Stone and
Coke mines. Innovation and quality control also have been a success for the ICI.
Business has a team of experience people and has a powerful distribution
network across Pakistan.
Weaknesses:
Timescale, Deadlines and pressure
Reliability of Data, plan predictability
Location of the business
Along with the strengths, Soda Ash business also has some weaknesses. First
one is the pressure and deadlines for the plant. Plant is operating at its full
capacity and company cannot afford the breakdown or shutdown of the plant
because demand is always on the higher end. Plant is in remote area, that’s why
in case of any emergency, when expertise and not available in Khewra, it takes
time to repair any damage to the production. Further production at remote area,
also increased transportation cost to the different areas of the country.
COMSATS Institute of Information Technology, Lahore. - 58 -
Opportunities:
Market Development
An unfilled customer need
Arrival of new technologies
Loosening of regulations
Removal of international trade barriers
Information and Research
Partnership, Agencies and Distribution
Volume, Production and Economies
There are a lot of opportunities for the Soda Ash Business. Due to high growth of
industry in Pakistan, demand of the Soda Ash is increasing day by day as it is an
important raw material for different industries like glass, textile, paper etc. Further
economy of scale is also an important opportunity. There is only one competitor
for the ICI in Soda Ash and ICI has hold on more than 70% of the market. New
technologies are also helping in order to reduce cost of production.
Threats:
Emergence of substitute products
Political Effects
Shift in consumer tastes away from the firm’s products
Loss of key staff
Environmental Effects
Competitors Intentions
New regulations
Soda Ash business is also facing some threats in process of conducting
business. Soda Ash is mainly used as raw material in different industries. Due to
COMSATS Institute of Information Technology, Lahore. - 59 -
growth of production and new technologies, it is possible to substitute some
products from others. So business faces this threat that in future their products
can be replace by some other low cost products. Due to situation if far area,
many employees leave the job when they got an opportunity in some other sector
in main city or move to some other business of ICI in Lahore, Karachi etc.
Further competitors can also expand their capacity or adopt some better
technique in order to produce more quality goods. That’s also another threat for
the business. Environment effects are also important one. Awareness regards
CFC’s is also increasing day by day. Although business has adopted a strategy in
order to reduce CFC’s but it has to make it fast.
Further political situation effect the business a lot, especially the multi national
one. Falling price of rupee against dollar, inflation, increase in raw material,
shortage in electricity are also threats for the industries.
Chapter 7
MY WORKING AT ICI
Working at ICI remained a very successful experience for me and it was great
experience for me that I worked with such a dynamic firm. Mainly I worked in the
Purchase (Material) Department at ICI Soda Ash Business, Khewra, however I
also visited other departments of the company and also interviewed different
people. I think I remained successful in order to grasp the procedures and extract
the valuable knowledge.
I want to appreciate the efforts and their corporation of ICI employees for their
advice and their assistance in helping me to avail this opportunity. I learned a lot
from these people. They were much experienced and have a great command in
there own work & on policy of ICI. Mainly I worked in the following tasks:
COMSATS Institute of Information Technology, Lahore. - 60 -
Supplier Code Opening: This process involved the registration of different new
suppliers who want to work with ICI. So I learned who they are registered and
who they are assigned codes.
Classification of the Materials: Classified of different materials, categorization,
and codes are assignation.
Stocks Information: Information regarding the stock levels, consumption, re-
order quantity and safety stock.
Item Status Reports: To check the status of different materials, they inventory
level, and creation of the indent in case of reaching to re-order level.
Indent Generation: Procedure of indent generation, authorized persons, and the
circumstances under the indent is generated.
Approval of the Indent: How indent if floated to different department and the
approval of the indent.
Request for Quotations: Process for the generation of RFQ (Request for
Quotation) for materials to be purchased.
Statement of Comparison: Comparison of different quotations received and
making comparison of the rates stated by the different suppliers.
Purchase Orders Generations: Generation of the purchased order after
selecting final supplier.
Gate Receiving Notes: Handled Gate Receiving Notes generated for different
materials supplied by the suppliers.
COMSATS Institute of Information Technology, Lahore. - 61 -
GRN Clearings Procedure: Procedure from Gate Receiving Note to the clearing
of the invoices and sending to Accounts Department for the payment.
Reminder Letters: Correspondent with the different suppliers and generating
reminder letters to the suppliers who do not meet the deadlines.
Warehousing: Studied the ware house structure of the ICI, Soda Ash Business,
its capacity and material handling procedure.
Foreign Purchases: Helped in correspondent with different foreign suppliers
and assisted in Coke Purchase from Poland.
Mr. Zahid Muhammad Sheikh, Purchase Officer was my supervisor during my
internship. Further I also interviewed different people e.g. S. M. Aamir (Assistant
HR Manager), Mr. Adnan Sheikh (Assistant Purchase and Quarry Manager), Mr.
Asghar Malik (Planning Officer) also helped in order to get valuable knowledge.
CONCLUSIONS
ICI Pakistan Ltd. is an excellent organization. It operates as a independent
business unit with AkzoNobel as a part of its specialty chemical portfolio. The
seed planted in 1926 is now a tree which provides extremely qualitative products
to billions of people all around the world. It is also providing jobs to millions of
people in different countries. The fact can be judged by ICI and AkzoNobel is the
number one chemical manufacturing and processing company of the world and
this fact is recognized by Fortune 500.
Management of ICI Pakistan is mostly local. Top management involves CEO and
senior mangers (Chief Financial Officer, Production and marketing) while every
COMSATS Institute of Information Technology, Lahore. - 62 -
business is headed by Vise President of the Company. They all are experienced
people. It is a relatively very old Multinational on the Pakistani established in
1944 It has established a strong footing for itself in the chemical industry.
Apparently, there are no loop holes in the working of the organization, but still
some areas require more attention.
Management has designed rules and regulations which are supposed to be
followed by everyone. Policies have been formulated for major and minor issues
both. Relationship with the employees is maintained at every level. Employees
work with commitment and dedication to achieve the best for the organization.
Job satisfaction soars at a high level.
Due to its innovation technologies, committed employees and best use of the
resources, it has gained a prominent position in the market and is far ahead of its
competitors.
RECOMMENDATIONS
Following recommendations are based on my observation during my
internship at ICI and some have been given during formal and informal interview
with the people.
Although ICI is offering a lot of incentives to its employees in case
of salary and benefits. However there is a clear different in facilities
of permanent and contract employees. For example in department I
worked, Purchase Clerks were on contract basis and there was
more burden of work on them while they were getting only the basis
salary. Facilities like medical allowance, Pension, Gratuity,
COMSATS Institute of Information Technology, Lahore. - 63 -
Provident Fund is not for the contract employees. This creates a lot
of dissatisfaction among the employees.
Pay increment of people should be according to the work and
duties they perform. In some cases it does not happen and pay is
not increased according to seniority and work base. For example,
during my stay at ICI pay was increased and clerk handling the
most work was awarded 20% increment while other was awarded
40% increment although his work was less and duties were easy
one as compared to first one.
Purchase department is very important department of any company
and production depends a lot on purchased of timely raw material,
plant equipment and other supplies. So purchase department was
already facing a high burden, further quarry department was also
added in it and quarry staff was also working in the same premises
producing a lot of difficulties. So Soda Ash Business should
separate the quarry department and it would be most suitable if it is
shifted at the site where quarry is located so that burden on
purchase department decrease and quarry staff also not has to
travel daily between site and purchase department.
Purchase Department was handling a lot of suppliers at a time.
They have to enter into correspondence with a lot of suppliers while
supplier’s evaluation was in delay for a couple of years. Many
suppliers were giving no response and because they were not
evaluated, that’s why there were contacted every thing when their
related material was required resulting in loss of time and money.
So supplier’s evaluation should not be delayed and should be
COMSATS Institute of Information Technology, Lahore. - 64 -
carried out at least once in a year.
Consumer Services Department but couldn’t get what and where it
is. Well the name suggests that it should be most visible and active
department, I wonder if it is there? If it is there it should be
organized at a larger scale and efforts should be made to interact
more frequently and at a personal level with the consumers.
Last of all I must THANK ICI and CIIT once again for providing me the golden
opportunity of spending 6 weeks in such a wonderful place where most people
can only dream of. It was an experience of life time. I got the chance of sitting
among the ideal sort of people, professionals whose names are engraved as
pioneers and geniuses of the field. I learned about meeting and dealing with
people. I must say that the integration of this internship program will definitely a
significant improvement in my future professional life.
I end my report here by again thanking Allah Almighty who gave the ability to
complete this tedious task and all other people who have helped me in this task.
BIBLIOGRAPHY
1. Web:
www.ici.com.pk
www.wikipedia.com
www.investopedia.com
COMSATS Institute of Information Technology, Lahore. - 65 -
2. Annual Report, ICI Pakistan Ltd.
3. Employees Interview
Mr. Abdul Jabbar Athar (Material Manager, ICI Soda Ash Business)
Mr. Adnan (Assistant Purchase & Quarry Manager)
Mr. S. M. Aamir (Asst. HR Manager)
Mr. Waqar Khawaja (Assistant Accounts Manager)
Mr. Asghar Malik (Planning Officer)
Mr. Zahid Muhammad Sheikh (Purchase Officer0
Mr. Asad Aslam (House Officer, Hospital)
4. Company Magazines
Images, Spring 2008 Edition
Images, Fall 2007 Edition
COMSATS Institute of Information Technology, Lahore. - 66 -